Exhibit 10.1


 


 


 



 





 



 


 


 


 


CREDIT AND SECURITY AGREEMENT


 


 


among


 


 


ZAGG INC


as Borrower


 


 


THE LENDERS NAMED HEREIN


as Lenders


 


 


and


 


 


KEYBANK NATIONAL ASSOCIATION


as Administrative Agent, Swing Line Lender
and Issuing Lender


 


 


KEYBANC CAPITAL MARKETS INC.


as Joint Lead Arranger and Sole Book
Runner


 


ZB, N.A. D/B/A ZIONS FIRST NATIONAL BANK


as Joint Lead Arranger


 


 


_____________________


 


dated as of


March 3, 2016


_____________________


 


 


 


 


 





 



 





 









 


 


 


 


 


 


 


 






    


     

    

 




TABLE OF CONTENTS


  


	 	Page
	ARTICLE
    I.  DEFINITIONS	1
	Section
    1.1.  Definitions	1
	Section
    1.2.  Accounting Terms	35
	Section
    1.3.  Terms Generally	35
	 	 
	ARTICLE
    II.  AMOUNT AND TERMS OF CREDIT	35
	Section
    2.1.  Amount and Nature of Credit	35
	Section
    2.2.  Revolving Credit Commitment	36
	Section
    2.3.  Term Loan Commitment	41
	Section
    2.4.  Interest	42
	Section
    2.5.  Evidence of Indebtedness	43
	Section
    2.6.  Notice of Loans and Credit Events; Funding of Loans	44
	Section
    2.7.  Payment on Loans and Other Obligations	45
	Section
    2.8.  Prepayment	47
	Section
    2.9.  Commitment and Other Fees; Reduction of Revolving Credit Commitment	48
	Section
    2.10.  Computation of Interest and Fees	49
	Section
    2.11.  Mandatory Payments	49
	Section
    2.12.  Swap Obligations Make-Well Provision	52
	Section
    2.13.  Establishment of Reserves	52
	Section
    2.14.  Record of Advances; Application of Collections	53
	Section
    2.15.  Protective Advances	55
	Section
    2.16.  Addition of Borrowing Base Company	55
	 	 
	ARTICLE
    III.  ADDITIONAL PROVISIONS RELATING TO EURODOLLAR LOANS; INCREASED CAPITAL; TAXES	55
	Section
    3.1.  Requirements of Law	55
	Section
    3.2.  Taxes	57
	Section
    3.3.  Funding Losses	58
	Section
    3.4.  Eurodollar Rate Lending Unlawful; Inability to Determine Rate	58
	Section
    3.5.  Discretion of Lenders as to Manner of Funding	59
	 	 
	ARTICLE
    IV.  CONDITIONS PRECEDENT	59
	Section
    4.1.  Conditions to Each Credit Event	59
	Section
    4.2.  Conditions to the First Credit Event	60
	Section
    4.3.  Post-Closing Conditions	64
	 	 
	ARTICLE
    V.  COVENANTS	65
	Section
    5.1.  Insurance	65
	Section
    5.2.  Money Obligations	65
	Section
    5.3.  Financial Statements, Collateral Reporting and Information	65
	Section
    5.4.  Financial Records	68
	Section
    5.5.  Franchises; Change in Business	68
	Section
    5.6.  ERISA Pension and Benefit Plan Compliance	69
	Section
    5.7.  Financial Covenants	69



 






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TABLE OF CONTENTS


 


	 	Page
	Section
    5.8.  Borrowing	69
	Section
    5.9.  Liens	70
	Section
    5.10.  Regulations T, U and X	71
	Section
    5.11.  Investments, Loans and Guaranties	72
	Section
    5.12.  Merger and Sale of Assets	73
	Section
    5.13.  Acquisitions	73
	Section
    5.14.  Notice	75
	Section
    5.15.  Restricted Payments	75
	Section
    5.16.  Environmental Compliance	76
	Section
    5.17.  Affiliate Transactions	76
	Section
    5.18.  Use of Proceeds	77
	Section
    5.19.  Corporate Names and Locations of Collateral	77
	Section
    5.20.  Subsidiary Guaranties, Security Documents and Pledge of Stock or Other Ownership Interest	77
	Section
    5.21.  Collateral	78
	Section
    5.22.  Returns of Inventory	80
	Section
    5.23.  Acquisition, Sale and Maintenance of Inventory	80
	Section
    5.24.  Property Acquired Subsequent to the Closing Date and Right to Take Additional Collateral	81
	Section
    5.25.  Restrictive Agreements	81
	Section
    5.26.  Other Covenants and  Provisions	81
	Section
    5.27.  Guaranty Under Material Indebtedness Agreement	82
	Section
    5.28.  Amendment of Organizational Documents	82
	Section
    5.29.  Compliance with Laws	82
	Section
    5.30.  Fiscal Year of the Borrower	82
	Section
    5.31.  Banking Relationship	82
	Section
    5.32.  Further Assurances	82
	 	 
	ARTICLE
    VI.  REPRESENTATIONS AND WARRANTIES	83
	Section
    6.1.  Corporate Existence; Subsidiaries; Foreign Qualification	83
	Section
    6.2.  Corporate Authority	83
	Section
    6.3.  Compliance with Laws and Contracts	83
	Section
    6.4.  Litigation and Administrative Proceedings	84
	Section
    6.5.  Title to Assets	84
	Section
    6.6.  Liens and Security Interests	84
	Section
    6.7.  Tax Returns	85
	Section
    6.8.  Environmental Laws	85
	Section
    6.9.  Locations	85
	Section
    6.10.  Continued Business	85
	Section
    6.11.  Employee Benefits Plans	86
	Section
    6.12.  Consents or Approvals	86
	Section
    6.13.  Solvency	86
	Section
    6.14.  Financial Statements	87
	Section
    6.15.  Regulations	87
	Section
    6.16.  Material Agreements	87



 






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TABLE OF CONTENTS


 


	 	Page
	Section
    6.17.  Intellectual Property	87
	Section
    6.18.  Insurance	87
	Section
    6.19.  Deposit Accounts and Securities Accounts	88
	Section
    6.20.  Accurate and Complete Statements	88
	Section
    6.21.  Investment Company; Other Restrictions	88
	Section
    6.22.  Acquisition Agreement Representations	88
	Section
    6.23.  Defaults	88
	 	 
	ARTICLE
    VII. SECURITY	88
	Section
    7.1.  Security Interest in Collateral	88
	Section
    7.2.  Cash Management System	88
	Section
    7.3.  Collections and Receipt of Proceeds by Administrative Agent	90
	Section
    7.4.  Administrative Agent’s Authority Under Pledged Notes	92
	Section
    7.5.  Commercial Tort Claims	92
	Section
    7.6.  Use of Inventory and Equipment	92
	 	 
	ARTICLE
    VIII.  EVENTS OF DEFAULT	93
	Section
    8.1.  Payments	93
	Section
    8.2.  Special Covenants	93
	Section
    8.3.  Other Covenants	93
	Section
    8.4.  Representations and Warranties	93
	Section
    8.5.  Cross Default	93
	Section
    8.6.  ERISA Default	93
	Section
    8.7.  Change in Control	93
	Section
    8.8.  Judgments	94
	Section
    8.9.  Material Adverse Change	94
	Section
    8.10.  Security	94
	Section
    8.11.  Validity of Loan Documents	94
	Section
    8.12.  Solvency	95
	 	 
	ARTICLE
    IX.  REMEDIES UPON DEFAULT	95
	Section
    9.1.  Optional Defaults	95
	Section
    9.2.  Automatic Defaults	96
	Section
    9.3.  Letters of Credit	96
	Section
    9.4.  Offsets	96
	Section
    9.5.  Equalization Provisions	96
	Section
    9.6.  Administrative Agent’s Rights to Occupy and Use the Collateral	98
	Section
    9.7.  Other Remedies	98
	Section
    9.8.  Application of Proceeds	99
	 	 
	ARTICLE
    X.  THE ADMINISTRATIVE AGENT	100
	Section
    10.1.  Appointment and Authorization	100
	Section
    10.2.  Note Holders	101
	Section
    10.3.  Consultation With Counsel	101
	Section
    10.4.  Documents	101
	Section
    10.5.  Administrative Agent and Affiliates	101



 






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TABLE OF CONTENTS


 


	 	Page
	Section
    10.6.  Knowledge or Notice of Default	102
	Section
    10.7.  Action by Administrative Agent	102
	Section
    10.8.  Release of Collateral or Guarantor of Payment	102
	Section
    10.9.  Delegation of Duties	103
	Section
    10.10.  Indemnification of Administrative Agent	103
	Section
    10.11.  Successor Administrative Agent	103
	Section
    10.12.  Issuing Lender	104
	Section
    10.13.  Swing Line Lender	104
	Section
    10.14.  Administrative Agent May File Proofs of Claim	104
	Section
    10.15.  No Reliance on Administrative Agent’s Customer Identification Program	105
	Section
    10.16.  Other Agents	105
	 	 
	ARTICLE
    XI.  MISCELLANEOUS	105
	Section
    11.1.  Lenders’ Independent Investigation	105
	Section
    11.2.  No Waiver; Cumulative Remedies	106
	Section
    11.3.  Amendments, Waivers and Consents	106
	Section
    11.4.  Notices	107
	Section
    11.5.  Approved Electronic Communication System	108
	Section
    11.6.  Costs, Expenses and Documentary Taxes	109
	Section
    11.7.  Indemnification	109
	Section
    11.8.  Obligations Several; No Fiduciary Obligations	109
	Section
    11.9.  Execution in Counterparts	110
	Section
    11.10.  Binding Effect; Borrower’s Assignment	110
	Section
    11.11.  Lender Assignments	110
	Section
    11.12.  Sale of Participations	112
	Section
    11.13.  Replacement of Affected Lenders	113
	Section
    11.14.  Patriot Act Notice	113
	Section
    11.15.  Severability of Provisions; Captions; Attachments	113
	Section
    11.16.  Investment Purpose	114
	Section
    11.17.  Entire Agreement	114
	Section
    11.18.  Limitations on Liability of the Issuing Lenders	114
	Section
    11.19.  General Limitation of Liability	114
	Section
    11.20.  No Duty	115
	Section
    11.21.  Legal Representation of Parties	115
	Section
    11.22.  Acknowledgement and Consent to Bail-In of EEA Financial Institutions	115
	Section
    11.23.  Governing Law; Submission to Jurisdiction	116
	Jury
    Trial Waiver	Signature Page 1




 






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TABLE OF CONTENTS


 


	 	 	Page
	Exhibit
    A	Form
    of Revolving Credit Note	E-1
	Exhibit
    B	Form
    of Swing Line Note	E-3
	Exhibit
    C	Form
    of Term Note	E-5
	Exhibit
    D	Form
    of Borrowing Base Certificate	E-7
	Exhibit
    E	Form
    of Notice of Loan	E-8
	Exhibit
    F	Form
    of Compliance Certificate	E-9
	Exhibit
    G	Form
    of Assignment and Acceptance Agreement	E-10
	 	 	 
	Schedule
    1	Commitments
    of Lenders	S-1
	Schedule
    2	Guarantors
    of Payment	S-2
	Schedule
    3	Borrowing
    Base Companies	S-3
	Schedule
    4	Pledged
    Securities	S-4
	Schedule
    5.8	Indebtedness	 
	Schedule
    5.9	Liens	 
	Schedule
    5.11	Permitted
    Foreign Subsidiary Loans, Guaranties and Investments	 
	Schedule
    6.1	Corporate
    Existence; Subsidiaries; Foreign Qualification	 
	Schedule
    6.4	Litigation
    and Administrative Proceedings	 
	Schedule
    6.5	Real
    Estate Owned by the Companies	 
	Schedule
    6.9	Locations	 
	Schedule
    6.11	Employee
    Benefits Plans	 
	Schedule
    6.16	Material
    Agreements	 
	Schedule
    6.17	Intellectual
    Property	 
	Schedule
    6.18	Insurance	 
	Schedule
    6.19	Deposit
    Accounts and Securities Accounts	 
	Schedule
    7.4	Pledged
    Notes	 
	Schedule
    7.5	Commercial
    Tort Claims	 




 






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This CREDIT AND SECURITY
AGREEMENT (as the same may from time to time be amended, restated or otherwise modified, this “Agreement”) is made
effective as of the 3rd day of March, 2016 among:


 


(a)ZAGG INC, a Nevada
corporation (the “Borrower”);


 


(b)the lenders listed
on Schedule 1 hereto and each other Eligible Transferee, as hereinafter defined, that from time to time becomes a party
hereto pursuant to Section 11.11 hereof (collectively, the “Lenders” and, individually, each a “Lender”);
and


 


(c)KEYBANK NATIONAL
ASSOCIATION, a national banking association, as the administrative agent for the Lenders under this Agreement (the “Administrative
Agent”), the Swing Line Lender and the Issuing Lender. 


 


WITNESSETH:


 


WHEREAS, the Borrower,
the Administrative Agent and the Lenders desire to contract for the establishment of credits in the aggregate principal amounts
hereinafter set forth, to be made available to the Borrower upon the terms and subject to the conditions hereinafter set forth;


 


NOW, THEREFORE, it is
mutually agreed as follows:


  


ARTICLE I. DEFINITIONS


 


Section 1.1. Definitions.
As used in this Agreement, the following terms shall have the meanings set forth below:


 


“Account”
means an account, as that term is defined in the U.C.C.


 


“Account Debtor”
means an account debtor, as that term is defined in the U.C.C., or any other Person obligated to pay all or any part of an Account
in any manner and includes (without limitation) any Guarantor thereof.


 


“Acquisition”
means any transaction or series of related transactions for the purpose of or resulting, directly or indirectly, in (a) the acquisition
of all or substantially all of the assets of any Person (other than a Company), or any business or division of any Person (other
than a Company), (b) the acquisition of in excess of fifty percent (50%) of the outstanding capital stock (or other equity interest)
of any Person (other than a Company), or (c) the acquisition of another Person (other than a Company) by a merger, amalgamation
or consolidation or any other combination with such Person.


 


“Administrative
Agent” means that term as defined in the first paragraph of this Agreement.


 






    


     

    

 


“Administrative
Agent Fee Letter” means the Administrative Agent Fee Letter between the Borrower and the Administrative Agent, dated as
of the Closing Date, as the same may from time to time be amended, restated or otherwise modified.


 


“Advance Record”
means that term as defined in Section 2.14(a) hereof.


 


“Advantage”
means any payment (whether made voluntarily or involuntarily, by offset of any deposit or other indebtedness or otherwise) received
by any Lender (a) prior to an Equalization Event, in respect of the Applicable Debt, if such payment results in that Lender having
less than its pro rata share (based upon its Applicable Commitment Percentage) of the Applicable Debt then outstanding, and (b)
on and after an Equalization Event, in respect of the Obligations, if such payment results in that Lender having less than its
pro rata share (based upon its Equalization Percentage) of the Obligations then outstanding.


 


“Affected Lender”
means a Defaulting Lender, an Insolvent Lender or a Downgraded Lender.


 


“Affiliate”
means any Person, directly or indirectly, controlling, controlled by or under common control with a Company and “control”
(including the correlative meanings, the terms “controlling”, “controlled by” and “under common
control with”) means the power, directly or indirectly, to direct or cause the direction of the management and policies
of a Company, whether through the ownership of voting securities, by contract or otherwise.


 


“Agreement”
means that term as defined in the first paragraph of this agreement.


 


“Annualized Consolidated
EBITDA” means (a) for the fiscal quarter of the Borrower ending on June 30, 2016, Consolidated EBITDA for the most recently
completed fiscal quarter of the Borrower multiplied by four, (b) for the fiscal quarter of the Borrower ending on September 30,
2016, Consolidated EBITDA for the most recently completed two fiscal quarters of the Borrower multiplied by two, and (c) for the
fiscal quarter of the Borrower ending on December 31, 2016, Consolidated EBITDA for the most recently completed three fiscal quarters
of the Borrower multiplied by one and one-third.


 


“Anti-Corruption
Laws” means all laws, rules, and regulations of any jurisdiction applicable to the Companies from time to time concerning
or relating to bribery or corruption.


 


“Applicable Commitment
Percentage” means, for each Lender:


 


(a)with respect to
the Revolving Credit Commitment, the percentage, if any, set forth opposite such Lender’s name under the column headed “Revolving
Credit Commitment Percentage”, as set forth on Schedule 1 hereto, subject to assignments of interests pursuant to
Section 11.11 hereof; and


 


(b)with respect to
the Term Loan Commitment (or the Term Loan if the Term Loan Commitment is no longer in effect), the percentage, if any, set forth
opposite such Lender’s name under the column headed “Term Loan Commitment Percentage”, as set forth on Schedule
1 hereto, subject to assignments of interests pursuant to Section 11.11 hereof.


 






    	 	2	 



     

    

 


“Applicable Debt”
means:


 


(a)with respect to
the Revolving Credit Commitment, collectively, (i) all Indebtedness incurred by the Borrower to the Revolving Lenders pursuant
to this Agreement and the other Loan Documents, and includes, without limitation, the principal of and interest on all Revolving
Loans and all Swing Loans and all obligations with respect to Letters of Credit, (ii) each extension, renewal or refinancing of
the foregoing, in whole or in part, (iii) the commitment, prepayment and other fees and amounts payable hereunder in connection
with the Revolving Credit Commitment, and (iv) all Related Expenses incurred in connection with the foregoing; and


 


(b)with respect to
the Term Loan Commitment, collectively, (i) all Indebtedness incurred by the Borrower to the Term Lenders pursuant to this Agreement
and the other Loan Documents, and includes, without limitation, the principal of and interest on the Term Loan, (ii) each extension,
renewal or refinancing of the foregoing in whole or in part, (iii) all prepayment and other fees and amounts payable hereunder
in connection with the Term Loan Commitment, and (iv) all Related Expenses incurred in connection with the foregoing.


 


“Applicable Margin”
means:


 


(a)(i) one hundred
fifty (150.00) basis points with respect to Revolving Loans that are Eurodollar Loans, and (ii) fifty (50.00) basis points with
respect to Revolving Loans that are Base Rate Loans; and


 


(b)(i) two hundred
(200.00) basis points with respect to portions of the Term Loan that are Eurodollar Loans, and (ii) one hundred (100.00) basis
points with respect to portions of the Term Loan that are Base Rate Loans; and


 


“Appraised Inventory
NOLV” means the appraised net orderly liquidation value of the Eligible Inventory, as set forth in the most recent inventory
appraisal report completed on behalf of, and reasonably acceptable to, the Administrative Agent.


 


“Approved Electronic
Communication System” means the StuckyNet System or any other equivalent electronic service, whether owned, operated or
hosted by the Administrative Agent, any affiliate of the Administrative Agent or any other Person.


 


“Asset Sale”
means that term as defined in Section 2.11(c)(ii) hereof.


 


“Assignment Agreement”
means an Assignment and Acceptance Agreement in the form of the attached Exhibit G.


 






    	 	3	 



     

    

 


“Authorized Officer”
means a Financial Officer or other individual authorized by a Financial Officer in writing (with a copy to the Administrative
Agent) to handle certain administrative matters in connection with this Agreement.


 


“Bail-In Action”
means the exercise of any Write-Down and Conversion Powers by the applicable EEA Resolution Authority in respect of any liability
of an EEA Financial Institution.


 


“Bail-In Legislation”
means, with respect to any EEA Member Country implementing Article 55 of Directive 2014/59/EU of the European Parliament and of
the Council of the European Union, the implementing law for such EEA Member Country from time to time which is described in the
EU Bail-In Legislation Schedule.


 


“Bank Product Agreements”
means those certain cash management services and other agreements entered into from time to time between a Company and the Administrative
Agent or a Lender (or an affiliate of a Lender) in connection with any of the Bank Products.


 


“Bank Product Obligations”
means all obligations, liabilities, contingent reimbursement obligations, fees and expenses owing by a Company to the Administrative
Agent or any Lender (or an affiliate of a Lender) pursuant to or evidenced by the Bank Product Agreements.


 


“Bank Products”
means a service or facility extended to a Company by the Administrative Agent or any Lender (or an affiliate of a Lender) for
(a) credit cards and credit card processing services, (b) debit cards, purchase cards and stored value cards, (c) ACH transactions,
and (d) cash management, including controlled disbursement, accounts or services.


 


“Bankruptcy Code”
means Title 11 of the United States Code entitled “Bankruptcy”, as now or hereafter in effect, or any successor thereto,
as hereafter amended.


 


“Base Rate”
means, for any day, a rate per annum equal to the highest of (a) the Prime Rate, (b) one-half of one percent (.50%) in excess
of the Federal Funds Effective Rate, and (c) one percent (1%) in excess of the London interbank offered rate for loans in Eurodollars
for a period of one month (or, if such day is not a Business Day, such rate as calculated on the most recent Business Day). Any
change in the Base Rate shall be effective immediately from and after such change in the Base Rate. Notwithstanding the foregoing,
if at any time the Base Rate as determined above is less than zero, it shall be deemed to be zero for purposes of this Agreement.


 


“Base Rate Loan”
means a Revolving Loan described in Section 2.2(a) hereof or a portion of the Term Loan described in Section 2.3 hereof,
that shall be denominated in Dollars and on which the Borrower shall pay interest at the Derived Base Rate.


 


“Borrower”
means that term as defined in the first paragraph of this Agreement.


 






    	 	4	 



     

    

 


“Borrowing Base”
means an amount equal to the total of the following:


 


(a)up to eighty-five
percent (85%) of the aggregate amount due and owing on Eligible Accounts Receivable of the Borrowing Base Companies; plus


 


(b)up to eighty-five
percent (85%) of the Appraised Inventory NOLV; minus


 


(c)Reserves, if
any;


 


provided that (A) the aggregate amount of
Eligible In-Transit Inventory included in the calculation of subpart (b) above shall not exceed the Eligible In-Transit Inventory
Maximum Amount, (B) at no time shall the amount calculated pursuant to subpart (b) above exceed the amount calculated pursuant
to subpart (a) above, and (C) anything herein to the contrary notwithstanding, the Administrative Agent shall at all times have
the right to modify or reduce such percentages or dollar amount caps or other components of the Borrowing Base from time to time
in its reasonable credit judgment.


 


“Borrowing Base
Certificate” means a Borrowing Base Certificate, in the form of the attached Exhibit D.


 


“Borrowing Base
Company” means each Company listed on Schedule 3 hereto, and each additional Company that shall become a Borrowing
Base Company pursuant to Section 2.16 hereof.


 


“Business Day”
means a day that is not a Saturday, a Sunday or another day of the year on which national banks are authorized or required to
close in Cleveland, Ohio, and, in addition, if the applicable Business Day relates to a Eurodollar Loan, is a day of the year
on which dealings in Dollar deposits are carried on in the London interbank Eurodollar market.


 


“Capital Distribution”
means a payment made, liability incurred or other consideration given by a Company to any Person that is not a Company, (a) for
the purchase, acquisition, redemption, repurchase, payment or retirement of any capital stock or other equity interest of such
Company, or (b) as a dividend, return of capital or other distribution (other than any stock dividend, stock split or other equity
distribution payable only in capital stock or other equity of such Company) in respect of such Company’s capital stock or
other equity interest.


 


“Capitalized Lease
Obligations” means obligations of the Companies for the payment of rent for any real or personal property under leases or
agreements to lease that, in accordance with GAAP, have been or should be capitalized on the books of the lessee and, for purposes
hereof, the amount of any such obligation shall be the capitalized amount thereof determined in accordance with GAAP.


 


“Cash Collateral
Account” means a commercial Deposit Account designated “cash collateral account” and maintained by the Borrower
with the Administrative Agent, without liability by the Administrative Agent or the Lenders to pay interest thereon, from which
account the Administrative Agent, on behalf of the Lenders, shall have the exclusive right to withdraw funds until all of the
Secured Obligations are paid in full.


 






    	 	5	 



     

    

 


“Cash Proceeds”
means, with respect to (i) any Asset Sale, the aggregate cash payments (including any cash received by way of deferred payment
pursuant to a note receivable issued in connection with such Asset Sale, other than the portion of such deferred payment constituting
interest, but only as and when so received) received by any Company from such Asset Sale, (ii) any Material Recovery Event, the
aggregate cash payments, including all insurance proceeds and proceeds of any award for condemnation or taking, received in connection
with such Material Recovery Event, (iii) any Equity Offering, the aggregate cash proceeds received by Borrower in connection with
such Equity Offering and (iv) the incurrence of any Indebtedness by any Company, the aggregate cash proceeds received by such
Company in connection with the incurrence of such Indebtedness.


 


“Cash Security”
means all cash, instruments, Deposit Accounts, Securities Accounts and cash equivalents, in each case whether matured or unmatured,
whether collected or in the process of collection, upon which a Credit Party presently has or may hereafter have any claim or
interest, wherever located, including but not limited to any of the foregoing that are presently or may hereafter be existing
or maintained with, issued by, drawn upon, or in the possession of the Administrative Agent or any Lender.


 


“CFC” means
a Controlled Foreign Corporation, as such term is defined in Section 957 of the Code.


 


“Change in Control”
means:


 


(a)the acquisition
of, or, if earlier, the shareholder or director approval of the acquisition of, ownership or voting control, directly or indirectly,
beneficially (within the meaning of Rules 13d-3 and 13d-5 of the Exchange Act) or of record, on or after the Closing Date, by
any Person or group (within the meaning of Sections 13d and 14d of the Exchange Act), of shares representing more than twenty-five
percent (25%) of the aggregate ordinary Voting Power represented by the issued and outstanding equity interests of the Borrower;


 


(b)if, at any time
during any period of twenty-four (24) consecutive months, a majority of the members of the board of directors of the Borrower
cease to be composed of individuals (i) who were members of that board of directors on the first day of such period, (ii) whose
election or nomination to that board of directors was approved by individuals referred to in subpart (i) hereof that constituted,
at the time of such election or nomination, at least a majority of that board of directors, or (iii) whose election or nomination
to that board of directors was approved by individuals referred to in subparts (i) and (ii) hereof that constituted, at the time
of such election or nomination, at least a majority of that board of directors;


 


(c)if the Borrower
shall cease to, directly or indirectly, own and control one hundred percent (100%) of each class of the outstanding equity interests
of each of its Subsidiaries (other than as a result of a liquidation or dissolution of a Subsidiary permitted by Section 5.12
hereof); or


 






    	 	6	 



     

    

 


(d)the occurrence
of a change in control, or other term of similar import used therein, as defined in any Material Indebtedness Agreement.


 


“Closing Date”
means the effective date of this Agreement as set forth in the first paragraph of this Agreement.


 


“Closing Fee Letter”
means the Closing Fee Letter between the Borrower and the Administrative Agent, dated as of the Closing Date.


 


“Code” means
the Internal Revenue Code of 1986, as amended, together with the rules and regulations promulgated thereunder.


 


“Collateral”
means (a) all of the Borrower’s existing and future (i) personal property, (ii) Accounts, Investment Property, instruments,
contract rights, chattel paper, documents, supporting obligations, letter-of-credit rights, Pledged Securities, Pledged Notes
(if any), Commercial Tort Claims, General Intangibles, Inventory and Equipment, (iii) funds now or hereafter on deposit in the
Cash Collateral Account, and (iv) Cash Security; and (b) Proceeds and products of any of the foregoing.


 


“Collateral Access
Agreement” means an agreement, in form and substance reasonably satisfactory to the Administrative Agent, pursuant to which
a mortgagee or lessor of real property on which Collateral is stored or otherwise located, or a warehouseman, consignor, processor
or other bailee of Inventory or other property owned by any Credit Party, acknowledges the Liens of the Administrative Agent and
waives (or, if approved by the Administrative Agent, subordinates) any Liens held by such Person on such property, and, if applicable,
permits the Administrative Agent access to and use of such property to access, assemble, complete and sell any Collateral stored
or otherwise located thereon.


 


“Collection”
means any payment made to one or more Borrowing Base Companies from an Account Debtor or customer of one or more Borrowing Base
Companies including, but not limited to, cash, checks, drafts and any other form of payment.


 


“Commercial Tort
Claim” means a commercial tort claim, as that term is defined in the U.C.C. (Schedule 7.5 hereto lists all Commercial
Tort Claims of the Credit Parties in existence as of the Closing Date.)


 


“Commitment”
means the obligation hereunder of the Lenders, (a) during the Commitment Period, to make Revolving Loans and to participate in
the issuance of Letters of Credit and Swing Loans pursuant to the Revolving Credit Commitment, and (b) to make the Term Loan pursuant
to the Term Loan Commitment.


 


“Commitment Period”
means the period from the Closing Date to March 2, 2021, or such earlier date on which the Commitment shall have been terminated
pursuant to Article IX hereof.


 


“Commodity Exchange
Act” means the Commodity Exchange Act (7 U.S.C. § 1 et seq.), as amended from time to time, together with the rules
and regulations promulgated thereunder.


 






    	 	7	 



     

    

 


“Companies”
means the Borrower and all Subsidiaries.


 


“Company”
means the Borrower or a Subsidiary.


 


“Compliance Certificate”
means a Compliance Certificate in the form of the attached Exhibit F.


 


“Consideration”
means, in connection with an Acquisition, the aggregate consideration paid or to be paid, including borrowed funds, cash, deferred
payments, the issuance of securities or notes, the assumption or incurring of liabilities (direct or contingent), the payment
of consulting fees or fees for a covenant not to compete and any other consideration paid or to be paid for such Acquisition.


 


“Consolidated”
means the resultant consolidation of the financial statements of the Borrower and its Subsidiaries in accordance with GAAP, including
principles of consolidation consistent with those applied in preparation of the consolidated financial statements referred to
in Section 6.14 hereof.


 


“Consolidated Capital
Expenditures” means, for any period, the amount of capital expenditures of the Borrower, as determined on a Consolidated
basis.


 


“Consolidated Depreciation
and Amortization Charges” means, for any period, the aggregate of all depreciation and amortization charges for fixed assets,
leasehold improvements and general intangibles (specifically including goodwill) of the Borrower for such period, as determined
on a Consolidated basis.


 


“Consolidated EBITDA”
means, for any period, as determined on a Consolidated basis, (a) Consolidated Net Earnings for such period plus, without duplication,
the aggregate amounts deducted in determining such Consolidated Net Earnings in respect of (i) Consolidated Interest Expense,
(ii) Consolidated Income Tax Expense, (iii) Consolidated Depreciation and Amortization Charges, (iv) non-cash expenses incurred
in connection with stock-based compensation, (v) non-cash impairments in respect of intangible assets, (vi) reasonable non-recurring
non-cash losses not incurred in the ordinary course of business and (vii) one-time transaction-related expenses incurred in connection
with the Mophie Acquisition in an aggregate amount not to exceed Three Million Dollars ($3,000,000); minus (b) to the extent included
in Consolidated Net Earnings for such period, non-recurring gains not incurred in the ordinary course of business.


 


“Consolidated Fixed
Charges” means, for any period, as determined on a Consolidated basis, the aggregate, without duplication, of (a) Consolidated
Interest Expense, and (b) principal payments on Consolidated Funded Indebtedness (other than optional prepayments of the Revolving
Loans), including, for clarification, (i) payments on Capitalized Lease Obligations, and (ii) payments on Indebtedness of the
type permitted pursuant to Section 5.8(g) and (h) hereof.


 






    	 	8	 



     

    

 


“Consolidated Funded
Indebtedness” means, at any date, all Indebtedness (including, but not limited to, short-term, long-term and Subordinated
Indebtedness, if any) of the Borrower, as determined on a Consolidated basis.


 


“Consolidated Income
Tax Expense” means, for any period, all provisions for taxes based on the gross or net income of the Borrower (including,
without limitation, any additions to such taxes, and any penalties and interest with respect thereto), as determined on a Consolidated
basis.


 


“Consolidated Interest
Expense” means, for any period, the interest expense (including, without limitation, the “imputed interest”
portion of Capitalized Lease Obligations, synthetic leases and asset securitizations, if any, and excluding deferred financing
costs) of the Borrower for such period, as determined on a Consolidated basis.


 


“Consolidated Net
Earnings” means, for any period, the net income (loss) of the Borrower for such period, as determined on a Consolidated
basis.


 


“Consolidated Net
Worth” means, at any date, the stockholders’ equity of the Borrower, determined as of such date on a Consolidated
basis.


 


“Consolidated Unfunded
Capital Expenditures” means, for any period, Consolidated Capital Expenditures that are not directly financed by the Companies
with long-term Indebtedness (other than Revolving Loans) or Capitalized Lease Obligations, as determined on a Consolidated basis.


 


“Control Agreement”
means a Deposit Account Control Agreement or Securities Account Control Agreement.


 


“Controlled Disbursement
Account” means a commercial Deposit Account designated “controlled disbursement account” and maintained by one
or more Credit Parties with the Administrative Agent, without liability by the Administrative Agent to pay interest thereon.


 


“Controlled Group”
means a Company and each Person required to be aggregated with a Company under Code Section 414(b), (c), (m) or (o).


 


“Credit Event”
means the making by the Lenders of a Loan, the conversion by the Lenders of a Base Rate Loan to a Eurodollar Loan, the continuation
by the Lenders of a Eurodollar Loan after the end of the applicable Interest Period, the making by the Swing Line Lender of a
Swing Loan, or the issuance (or amendment or renewal) by the Issuing Lender of a Letter of Credit.


 


“Credit Exposure”
means, at any time, with respect to a Specific Commitment, the sum of (a) the aggregate principal amount of all Loans outstanding
under such Specific Commitment, and (b) the Letter of Credit Exposure, if any, applicable to such Specific Commitment.


 


“Credit Party”
means the Borrower, and any Subsidiary or other Affiliate that is a Guarantor of Payment.


 






    	 	9	 



     

    

 


“Customs Broker” means a Person
designated to perform inbound customs clearance for the Borrower.


 


“Customs Broker Agency Agreement”
means a customs broker agency agreement, in form and substance reasonably satisfactory to the Administrative Agent, entered into
among the Administrative Agent, the Borrower and a Customs Broker.


 


“Default”
means an event or condition that constitutes, or with the lapse of any applicable grace period or the giving of notice or both
would constitute, an Event of Default, and that has not been waived by the Required Lenders (or, if required hereunder, all of
the Lenders) in writing.


 


“Default Rate”
means (a) with respect to any Loan or other Obligation for which a rate is specified, a rate per annum equal to two percent (2%)
in excess of the rate otherwise applicable thereto, and (b) with respect to any other amount, if no rate is specified or available,
a rate per annum equal to two percent (2%) in excess of the Derived Base Rate for Revolving Loans from time to time in effect.


 


“Defaulting Lender”
means a Lender, as reasonably determined by the Administrative Agent, that (a) has failed (which failure has not been cured) to
fund any Loan or any participation interest in Letters of Credit or Swing Loans required to be made hereunder in accordance with
the terms hereof (unless such Lender shall have notified the Administrative Agent and the Borrower in writing of its good faith
determination that a condition under Section 4.1 hereof to its obligation to fund any Loan shall not have been satisfied); (b)
has notified the Borrower or the Administrative Agent in writing that it does not intend to comply with any of its funding obligations
under this Agreement or has made a public statement to the effect that it does not intend to comply with its funding obligations
under this Agreement or generally under other agreements in which it commits to extend credit; (c) has failed, within three Business
Days after receipt of a written request from the Administrative Agent or the Borrower to confirm that it will comply with the
terms of this Agreement relating to its obligation to fund prospective Loans or participations in Letters of Credit or Swing Loans,
and such request states that the requesting party has reason to believe that the Lender receiving such request may fail to comply
with such obligation, and states such reason; or (d) has failed to pay to the Administrative Agent or any other Lender when due
an amount owed by such Lender to the Administrative Agent or any other Lender pursuant to the terms of this Agreement, unless
such amount is subject to a good faith dispute or such failure has been cured. Any Defaulting Lender shall cease to be a Defaulting
Lender when the Administrative Agent determines, in its reasonable discretion, that such Defaulting Lender is no longer a Defaulting
Lender based upon the characteristics set forth in this definition.


 


“Deposit Account”
means a deposit account, as that term is defined in the U.C.C.


 


“Deposit Account
Control Agreement” means each Deposit Account Control Agreement among a Credit Party, the Administrative Agent and a depository
institution, dated on or after the Closing Date, to be in form and substance satisfactory to the Administrative Agent, as the
same may from time to time be amended, restated or otherwise modified.


 






    	 	10	 



     

    

 


“Derived Base Rate”
means a rate per annum equal to the sum of the Applicable Margin (from time to time in effect) for Base Rate Loans plus the Base
Rate.


 


“Derived Eurodollar
Rate” means a rate per annum equal to the sum of the Applicable Margin (from time to time in effect) for Eurodollar Loans
plus the Eurodollar Rate.


 


“Dodd-Frank Act”
means the Dodd–Frank Wall Street Reform and Consumer Protection Act (Pub.L. 111-203, H.R. 4173) signed into law on July
21, 2010, as amended from time to time.


 


“Dollar” or
the $ sign means lawful currency of the United States.


 


“Domestic Subsidiary”
means a Subsidiary that is not a Foreign Subsidiary.


 


“Dormant Subsidiary”
means a Company that (a) is not a Credit Party or the direct or indirect equity holder of a Credit Party, (b) has aggregate assets
of less than Fifty Thousand Dollars ($50,000), and (c) has no direct or indirect Subsidiaries with aggregate assets, for such
Company and all such Subsidiaries, of more than Fifty Thousand Dollars ($50,000).


 


“Downgraded Lender”
means a Lender that has a non-credit enhanced senior unsecured debt rating below investment grade from either Moody’s or
Standard & Poor’s, or any other nationally recognized statistical rating organization recognized as such by the SEC,
and that has been designated by the Administrative Agent, in its reasonable discretion, as a Downgraded Lender. Any Downgraded
Lender shall cease to be a Downgraded Lender when the Administrative Agent determines, in its reasonable discretion, that such
Downgraded Lender is no longer a Downgraded Lender based upon the characteristics set forth in this definition.


 


“ECF Threshold”
means, at the time of determination, an amount equal to twelve and one-half percent (12.5%) of the Revolving Credit Commitment.


 


“ECF Shortfall Amount”
means that term as defined in Section 2.11(c) hereof.


 


“EEA Financial Institution”
means (a) any credit institution or investment firm established in any EEA Member Country which is subject to the supervision
of an EEA Resolution Authority, (b) any entity established in an EEA Member Country which is a parent of an institution described
in subpart (a) of this definition, or (c) any financial institution established in an EEA Member Country which is a subsidiary
of an institution described in subparts (a) or (b) of this definition and is subject to consolidated supervision with its parent.


 


“EEA Member Country”
means any of the member states of the European Union, Iceland, Liechtenstein, and Norway.


 






    	 	11	 



     

    

 


“EEA Resolution
Authority” means any public administrative authority or any person entrusted with public administrative authority of any
EEA Member Country (including any delegee) having responsibility for the resolution of any EEA Financial Institution.


 


“Eligible Account
Receivable” means an Account that is an account receivable (i.e., each specific invoice) of a Borrowing Base Company that,
at all times until it is collected in full, continuously meets the following requirements:


 


(a)is not subject
to any claim for credit, allowance, accrued returns or adjustment by the Account Debtor or any defense, dispute, set-off, retention
payment, chargeback or counterclaim;


 


(b)arose in the ordinary
course of business of such Borrowing Base Company from the performance (fully completed) of services or bona fide sale of goods
that have been shipped to the Account Debtor, and both of the following are true: (i) not more than ninety (90) (or, with respect
to an Extended Term Account Debtor, one hundred twenty (120)) days have elapsed since the invoice date, and (ii) not more than
sixty (60) days have elapsed since the date payment was due;


 


(c)is not owing from
an Account Debtor with respect to which such Borrowing Base Company has received any notice or has any knowledge of such Account
Debtor’s insolvency, bankruptcy or financial impairment, or that such Account Debtor has suspended normal business operations,
dissolved, liquidated or terminated its existence;


 


(d)is not subject
to an assignment, pledge, claim, mortgage, lien or security interest of any type except that granted to or in favor of the Administrative
Agent, for the benefit of the Lenders;


 


(e)does not relate
to any goods repossessed, lost, damaged, rejected or returned, or acceptance of which has been revoked or refused;


 


(f)is not evidenced
by a promissory note or any other instrument or by chattel paper;


 


(g)has not been determined
by the Administrative Agent to be unsatisfactory in any respect, in the exercise of its reasonable credit judgment;


 


(h)is not a Government
Account Receivable, unless otherwise agreed to by the Administrative Agent;


 


(i)is not owing from
another Company, an Affiliate, an equity holder of more than five percent of or an employee of any Company;


 


(j)is not a Foreign
Account Receivable;


 






    	 	12	 



     

    

 


(k)is not owing from
an Account Debtor that has failed to pay more than fifty percent (50%) of its currently outstanding accounts receivable within
either or both of the following (i) ninety (90) (or, with respect to an Extended Term Account Debtor, one hundred twenty (120))
days of the invoice date, or (ii) sixty (60) days of the date payment was due;


 


(l)with respect to
an Account Debtor that, together with its affiliates, owes one or more Borrowing Base Companies more than twenty-five percent
(25%) (or, with respect to Superior Communications Inc., thirty-five percent (35%)) of all accounts receivable of one or more
Borrowing Base Companies, is not the portion of the accounts receivable that represents the amount in excess of twenty-five percent
(25%) (or, with respect to Superior Communications Inc., thirty-five percent (35%)) of such accounts receivable;


 


(m)is an Account in
which the Administrative Agent, for the benefit of the Lenders, has a valid and enforceable first priority security interest;


 


(n)has not arisen
in connection with sales of goods that were shipped or delivered to an Account Debtor on consignment, a sale or return basis,
a guaranteed sale basis, a bill and hold basis, or on the basis of any similar understanding;


 


(o)is not subject
to any provision prohibiting assignment of the right to payment or requiring notice of or consent to such assignment;


 


(p)is not owing from
an Account Debtor located in a state that requires such Borrowing Base Company, in order to sue such Account Debtor in such state’s
courts or otherwise enforce its remedies against such Account Debtor through judicial process, to either (i) qualify to do business
in such state or (ii) file a report with the taxation division of such state for the then current year, unless, in each case,
such Borrowing Base Company has fulfilled such requirements to the extent applicable for the then current year or fulfilled such
other requirements that permit such Borrowing Base Company to bring suit or otherwise enforce its remedies against such Account
Debtor through judicial process;


 


(q)is not an Account
with respect to which any of the representations, warranties, covenants and agreements contained in this Agreement or any of the
Loan Documents are not or have ceased to be complete and correct, or have been breached;


 


(r)is not an Account
that represents a progress billing or an Account that has had the time for payment extended by such Borrowing Base Company without
the consent of the Administrative Agent;


 


(s)is not owing by
any state or any department, agency, or instrumentality thereof unless such Borrowing Base Company has complied with any applicable
statutory or regulatory requirements thereof in respect of the security interest of the Administrative Agent, for the benefit
of the Lenders, as granted hereunder;


 






    	 	13	 



     

    

 


(t)is not owing from
an Account Debtor that is also a supplier to, or creditor of, any Company to the extent of the amount owing to such supplier or
creditor; and


 


(u)does not represent
a manufacturer’s or supplier’s credits, discounts, incentive plans or similar arrangements entitling such Borrowing
Base Company to discounts on future purchases therefrom.


 


“Eligible In-Transit
Inventory” means any Inventory that is in-transit to a Borrowing Base Company:


 


(a) for which title
has passed to such Borrowing Base Company;


 


(b)has been paid for
by such Borrower;


 


(c) that is insured
for the full value of such Inventory;


 


(d)for which the Administrative
Agent, for the benefit of the Lenders, has a first priority perfected security interest;


 


(e)that is covered
by a “through” bill of lading;


 


(f)that is shipped
by a common carrier that is not affiliated with the vendor;


 


(g)that is either:
(i) located within the United States; or (ii) is “on-the-water” and in transit to the United States, and for which:


 


(A)with
respect to Inventory covered by a negotiable bill of lading, a bill of lading for such inventory (1) is issued to the order of
such Borrowing Base Company, and (2) (y) is in the Administrative Agent’s possession (or in the possession of a Customs
Broker acting as agent for the Administrative Agent, pursuant to the terms of a Customs Broker Agency Agreement), or (z) has been
duly negotiated to the Administrative Agent; and


 


(B)with
respect to Inventory covered by a non-negotiable bill of lading, (1) a bill of lading for such Inventory has not been issued in
the name of any Person other than such Borrowing Base Company or the Administrative Agent, and (2) no bailee of such Inventory
has received notification of any Lien of any other Person with respect to such Inventory (except for any Lien in favor of the
Administrative Agent);


 


(h)that is in-transit
for no longer than thirty (30) days; and


 


(i)that meets all
of the requirements for Eligible Inventory other than subparts (a), (b) and (c) of the Eligible Inventory definition.


 






    	 	14	 



     

    

 


“Eligible In-Transit
Inventory Maximum Amount” means Ten Million Dollars ($10,000,000).


 


“Eligible Inventory”
means all Inventory of a Borrowing Base Company in which the Administrative Agent, for the benefit of the Lenders, has a valid
and enforceable first priority security interest, except Inventory that:


 


(a)is in-transit or
located outside of the United States (other than Eligible In-Transit Inventory);


 


(b)is in the possession
of a bailee, consignee or other third party, unless (i) reserves, satisfactory to the Administrative Agent, have been established
with respect thereto; or (ii) (A) with respect to a consignee, processor or bailee, an acknowledged Collateral Access Agreement
has been received by the Administrative Agent, (B) such third party is listed on Schedule 6.9 hereto, as amended from time
to time, or the Administrative Agent has received prior written notice of such third party location, (C) if required by the Administrative
Agent, proper notice has been given to all secured parties of such third party that have filed U.C.C. Financing Statements claiming
a security interest in such third party’s inventory, and (D) if required by the Administrative Agent, such Borrowing Base
Company has filed appropriate U.C.C. Financing Statements to protect its interest therein, in form and substance satisfactory
to the Administrative Agent;


 


(c)is located on facilities
leased by such Borrowing Base Company, unless an acknowledged Collateral Access Agreement has been received by the Administrative
Agent, or reserves, satisfactory to the Administrative Agent, have been established with respect thereto;


 


(d)is work-in-process;


 


(e)is damaged, defective
or obsolete or otherwise not merchantable;


 


(f)consists of (i)
goods not held for sale, such as labels, maintenance items, supplies and packaging, or held for return to vendors, or (ii) Inventory
used in connection with research and development or marketing and promotional purposes;


 


(g)contains or bears
any intellectual property rights licensed to such Borrowing Base Company by any Person other than a Credit Party unless the Administrative
Agent is satisfied that the Administrative Agent may sell or otherwise dispose of such Inventory without (i) infringing the rights
of such licensor, (ii) violating any contract with such licensor, or (iii) incurring any liability with respect to payment of
royalties other than royalties incurred pursuant to sale of such Inventory under the current licensing agreement;


 


(h)has had reclamation
or similar rights asserted by the seller with respect thereto;


 






    	 	15	 



     

    

 


(i)is held for return
to vendors, or constitutes returns not yet processed, held for inspection or not otherwise considered saleable;


 


(j)is subject to a
Lien in favor of any Person other than the Administrative Agent;


 


(k)is not produced
in compliance with the Fair Labor Standards Act and is or is subject to the “hot goods” provisions contained in 29
USC 215(a)(i), or otherwise fails to comply in all material respects with all standards imposed by any applicable Governmental
Authority having authority over the disposition, manufacture or use of such Inventory; or


 


(l)is determined by
the Administrative Agent to be unsatisfactory in any material respect, in the exercise of its reasonable credit judgment.


 


“Eligible Transferee”
means (a) any Lender (other than an Affected Lender) or any affiliate of a Lender (other than an Affected Lender), and (b) a commercial
bank, financial institution or other “accredited investor” (as defined in SEC Regulation D) that is not the Borrower,
a Subsidiary or an Affiliate.


 


“Environmental Laws”
means all provisions of law (including the common law), statutes, ordinances, codes, rules, guidelines, policies, procedures,
orders-in-council, regulations, permits, licenses, judgments, writs, injunctions, decrees, orders, authorizations, certificates,
approvals, registrations, awards and standards promulgated by a Governmental Authority or by any court, agency, instrumentality,
regulatory authority or commission of any of the foregoing concerning environmental health or safety and protection of natural
resources, or regulation of the discharge of substances into, the environment.


 


“Environmental Permits”
means all permits, licenses, authorizations, certificates, approvals or registrations required by any Governmental Authority under
any Environmental Laws.


 


“Equalization Event”
means the earlier of (a) the occurrence of an Event of Default under Section 8.12 hereof, or (b) the acceleration of the maturity
of the Obligations after the occurrence of an Event of Default.


 


“Equalization Maximum
Amount” means that term as defined in Section 9.5(b)(i) hereof.


 


“Equalization Percentage”
means that term as defined in Section 9.5(b)(ii) hereof.


 


“Equipment”
means equipment, as that term is defined in the U.C.C.


 


“Equity Offering”
means that term as defined in Section 2.11(c)(v) hereof.


 






    	 	16	 



     

    

 


“ERISA” means
the Employee Retirement Income Security Act of 1974, as amended from time to time, and the regulations promulgated pursuant thereto.


 


“ERISA Event”
means (a) the existence of a condition or event with respect to an ERISA Plan that presents a risk of the imposition of an excise
tax or any other liability on a Company or of the imposition of a Lien on the assets of a Company; (b) the engagement by a Company
in a non-exempt “prohibited transaction” (as defined under ERISA Section 406 or Code Section 4975) or a breach of
a fiduciary duty under ERISA that could result in liability to a Company; (c) the application by a Controlled Group member for
a waiver from the minimum funding requirements of Code Section 412 or ERISA Section 302 or a Controlled Group member is required
to provide security under Code Section 401(a)(29); (d) the occurrence of a Reportable Event with respect to any Pension Plan as
to which notice is required to be provided to the PBGC; (e) the withdrawal by a Controlled Group member from a Multiemployer Plan
in a “complete withdrawal” or a “partial withdrawal” (as such terms are defined in ERISA Sections 4203
and 4205, respectively); (f) the involvement of, or occurrence or existence of any event or condition that makes likely the involvement
of, a Multiemployer Plan in any reorganization under ERISA Section 4241; (g) the failure of an ERISA Plan (and any related trust)
that is intended to be qualified under Code Sections 401 and 501 to be so qualified or the failure of any “cash or deferred
arrangement” under any such ERISA Plan to meet the requirements of Code Section 401(k); (h) the taking by the PBGC of any
steps to terminate a Pension Plan or appoint a trustee to administer a Pension Plan, or the taking by a Controlled Group member
of any steps to terminate a Pension Plan; (i) the failure by a Controlled Group member or an ERISA Plan to satisfy any requirements
of law applicable to an ERISA Plan; (j) the commencement, existence or threatening of a claim, action, suit, audit or investigation
with respect to an ERISA Plan, other than a routine claim for benefits; or (k) any incurrence by or any expectation of the incurrence
by a Controlled Group member of any liability for post-retirement benefits under any Welfare Plan, other than as required by ERISA
Section 601, et. seq. or Code Section 4980B.


 


“ERISA Plan”
means an “employee benefit plan” (within the meaning of ERISA Section 3(3)) that a Controlled Group member at any
time sponsors, maintains, contributes to, has liability with respect to or has an obligation to contribute to such plan.


 


“EU Bail-In Legislation
Schedule” means the EU Bail-In Legislation Schedule published by the Loan Market Association (or any successor person),
as in effect from time to time


 


“Eurocurrency Liabilities”
shall have the meaning assigned to that term in Regulation D of the Board of Governors of the Federal Reserve System, as in effect
from time to time.


 


“Eurodollar”
means a Dollar denominated deposit in a bank or branch outside of the United States.


 


“Eurodollar Loan”
means a Revolving Loan described in Section 2.2(a) hereof, or a portion of the Term Loan described in Section 2.3 hereof, in each
case, that shall be denominated in Dollars and on which the Borrower shall pay interest at the Derived Eurodollar Rate.


 






    	 	17	 



     

    

 


“Eurodollar Rate”
means, with respect to a Eurodollar Loan, for any Interest Period, a rate per annum equal to the quotient obtained (rounded upwards,
if necessary, to the nearest 1/16th of 1%) by dividing (a) the rate of interest, determined by the Administrative Agent
in accordance with its usual procedures (which determination shall be conclusive absent manifest error) as of approximately 11:00
A.M. (London time) two Business Days prior to the beginning of such Interest Period pertaining to such Eurodollar Loan, as listed
as the London interbank offered rate, as published by Thomson Reuters or Bloomberg (or, if for any reason such rate is unavailable
from Thomson Reuters or Bloomberg, from any other similar company or service that provides rate quotations comparable to those
currently provided by Thomson Reuters or Bloomberg) for Dollar deposits in immediately available funds with a maturity comparable
to such Interest Period, provided that, in the event that such rate quotation is not available for any reason, then the Eurodollar
Rate shall be the average (rounded upward to the nearest 1/16th of 1%) of the per annum rates at which deposits in immediately
available funds in Dollars for the relevant Interest Period and in the amount of the Eurodollar Loan to be disbursed or to remain
outstanding during such Interest Period, as the case may be, are offered to the Administrative Agent (or an affiliate of the Administrative
Agent, in the Administrative Agent’s discretion) by prime banks in any Eurodollar market reasonably selected by the Administrative
Agent, determined as of 11:00 A.M. (London time) (or as soon thereafter as practicable), two Business Days prior to the beginning
of the relevant Interest Period pertaining to such Eurodollar Loan; by (b) 1.00 minus the Reserve Percentage. Notwithstanding
the foregoing, if at any time the Eurodollar Rate, as determined above, is less than zero, it shall be deemed to be zero for purposes
of this Agreement.


 


“Event of Default”
means an event or condition that shall constitute an event of default as defined in Article VIII hereof.


 


“Excess Cash Flow”
means, for any period, as determined on a Consolidated basis, an amount equal to (a) Consolidated EBITDA, minus (b) the sum of
(i) the aggregate amount of the scheduled principal payments made with respect to Consolidated Funded Indebtedness for such period,
(ii) Consolidated Interest Expenses paid in cash, (iii) Consolidated Income Tax Expense paid in cash, (iv) Capital Distributions,
(v) Consolidated Unfunded Capital Expenditures, and (vi) Mophie Contingent Payments paid in cash during such period, to the extent
such payments were not already deducted in the calculation of Consolidated Net Earnings for such period.


 


“Exchange Act”
means the Securities Exchange Act of 1934, as amended.


 


“Excluded Assets”
means, collectively, (i) the assets obtained by foreclosure or execution under a judgment of $6.131 million entered in May 2015
on a promissory note from a former ZAGG director and (ii) the net proceeds payable to Mophie equity holders in connection with
the sale of excess Mophie real property and described in Section 2.11(c) of the Mophie Purchase Agreement.


 






    	 	18	 



     

    

 


“Excluded Swap Obligations”
means, with respect to any Credit Party, any Swap Obligation if, and to the extent that, all or a portion of the guarantee of
such Credit Party of, or the grant by such Credit Party of a security interest to secure, such Swap Obligation (or any guarantee
thereof) is or becomes illegal under the Commodity Exchange Act or any rule, regulation or order of the Commodity Futures Trading
Commission (or the application or official interpretation of any thereof) by virtue of such Credit Party’s failure to constitute
an “eligible contract participant” as defined in the Commodity Exchange Act (determined after giving effect to any
“keepwell, support or other agreement” for the benefit of such Credit Party and any and all guarantees of such Credit
Party’s Swap Obligations by other Credit Parties), at the time such guarantee or grant of security interest of such Credit
Party becomes, or would become, effective with respect to such Swap Obligation. If a Swap Obligation arises under a master agreement
governing more than one swap, such exclusion shall apply only to the portion of such Swap Obligation that is attributable to swaps
for which such guarantee or security interest is, or becomes, illegal.


 


“Excluded Taxes”
means, in the case of the Administrative Agent and each Lender, taxes imposed on or measured by its overall net income or branch
profits, and franchise taxes imposed on it (in lieu of net income taxes), by the jurisdiction (or any political subdivision thereof)
under the laws of which the Administrative Agent or such Lender, as the case may be, is organized or in which its principal office
is located, or, in the case of any Lender, in which its applicable lending office is located.


 


“Extended Term Account
Debtor” means Best Buy Co., Inc., Apple Inc. or Superior Communications Inc.


 


“Federal Funds Effective
Rate” means, for any day, the rate per annum (rounded upward to the nearest one one-hundredth of one percent (1/100 of 1%))
announced by the Federal Reserve Bank of New York (or any successor) on such day as being the weighted average of the rates on
overnight federal funds transactions arranged by federal funds brokers on the previous trading day, as computed and announced
by such Federal Reserve Bank (or any successor) in substantially the same manner as such Federal Reserve Bank computes and announces
the weighted average it refers to as the “Federal Funds Effective Rate” as of the Closing Date.


 


“Financial Officer”
means any of the following officers: chief executive officer, president, chief financial officer, vice president of finance or
treasurer. Unless otherwise qualified, all references to a Financial Officer in this Agreement shall refer to a Financial Officer
of the Borrower.


 


“Fixed Charge Coverage
Ratio” means, as determined for the most recently completed four fiscal quarters of the Borrower, on a Consolidated basis,
the ratio of (a) the total of (i) Consolidated EBITDA, minus (ii) Consolidated Income Tax Expense paid in cash, minus (iii) Capital
Distributions, minus (iv) Consolidated Unfunded Capital Expenditures; to (b) Consolidated Fixed Charges; provided that, for purposes
of calculating the Fixed Charge Coverage Ratio pursuant to Section 5.7(b) hereof, such calculation shall be measured (i) for the
most recently completed fiscal quarter for the fiscal quarter of the Borrower ending June 30, 2016, (ii) for the most recently
completed two fiscal quarters for the fiscal quarter of the Borrower ending September 30, 2016, and (iii) for the most recently
completed three fiscal quarters for the fiscal quarter of the Borrower ending December 31, 2016.


 






    	 	19	 



     

    

 


“Foreign Account
Receivable” means an Account that is an account receivable that arises out of contracts with or orders from an Account Debtor
that is not a resident of the United States or Canada (other than Quebec), or an Account payable in a currency other than Dollars.


 


“Foreign Subsidiary”
means a Subsidiary that is organized under the laws of any jurisdiction other than the United States, a State thereof or the District
of Columbia.


 


“GAAP” means
generally accepted accounting principles in the United States as then in effect, which shall include the official interpretations
thereof by the Financial Accounting Standards Board, applied on a basis consistent with the past accounting practices and procedures
of the Borrower.


 


“General Intangibles”
means (a) general intangibles, as that term is defined in the U.C.C.; and (b) choses in action, causes of action, intellectual
property, customer lists, corporate or other business records, inventions, designs, patents, patent applications, service marks,
registrations, trade names, trademarks, copyrights, licenses, goodwill, computer software, rights to indemnification and tax refunds.


 


“Government Account
Receivable” means an Account that is an account receivable that arises out of contracts with or orders from the United States
or any of its departments, agencies or instrumentalities.


 


“Governmental Authority”
means any nation or government, any state, province or territory or other political subdivision thereof, any governmental agency,
department, authority, instrumentality, regulatory body, court, central bank or other governmental entity exercising executive,
legislative, judicial, taxing, regulatory or administrative powers or functions of or pertaining to government, any securities
exchange and any self-regulatory organization exercising such functions.


 


“Guarantor”
means a Person that shall have pledged its credit or property in any manner for the payment or other performance of the indebtedness,
contract or other obligation of another and includes (without limitation) any guarantor (whether of payment or of collection),
surety, co-maker, endorser or Person that shall have agreed conditionally or otherwise to make any purchase, loan or investment
in order thereby to enable another to prevent or correct a default of any kind.


 


“Guarantor of Payment”
means each of the Companies designated a “Guarantor of Payment” on Schedule 2 hereto, each of which is executing
and delivering a Guaranty of Payment on the Closing Date, and any other Person that shall execute and deliver a Guaranty of Payment
(or Guaranty of Payment Joinder) to the Administrative Agent subsequent to the Closing Date.


 


“Guaranty of Payment”
means each Guaranty of Payment executed and delivered on or after the Closing Date in connection with this Agreement by a Guarantor
of Payment, as the same may from time to time be amended, restated or otherwise modified.


 






    	 	20	 



     

    

 


“Guaranty of Payment
Joinder” means each Guaranty of Payment Joinder, executed and delivered by a Guarantor of Payment for the purpose of adding
such Guarantor of Payment as a party to a previously executed Guaranty of Payment.


 


“Hedge Agreement”
means any (a) hedge agreement, interest rate swap, cap, collar or floor agreement, or other interest rate management device entered
into by a Company with any Person in connection with any Indebtedness of such Company, or (b) currency swap agreement, forward
currency purchase agreement or similar arrangement or agreement designed to protect against fluctuations in currency exchange
rates entered into by a Company.


 


“Indebtedness”
means, for any Company, without duplication, (a) all obligations to repay borrowed money, direct or indirect, incurred, assumed,
or guaranteed, (b) all obligations in respect of the deferred purchase price of property or services (including earn-outs but
excluding trade accounts payable in the ordinary course of business), (c) all obligations under conditional sales or other title
retention agreements, (d) all obligations (contingent or otherwise) under any letter of credit or banker’s acceptance, (e)
all net obligations under any currency swap agreement, interest rate swap, cap, collar or floor agreement or other interest rate
management device or any Hedge Agreement, (f) all synthetic leases, (g) all Capitalized Lease Obligations, (h) all obligations
of such Company with respect to asset securitization financing programs, (i) all obligations to advance funds to, or to purchase
assets, property or services from, any other Person in order to maintain the financial condition of such Person, (j) all indebtedness
of the types referred to in subparts (a) through (i) above of any partnership or joint venture (other than a joint venture that
is itself a corporation or limited liability company) in which such Company is a general partner or joint venturer, unless such
indebtedness is expressly made non-recourse to such Company, (k) any other transaction (including forward sale or purchase agreements)
having the commercial effect of a borrowing of money entered into by such Company to finance its operations or capital requirements,
and (l) any guaranty of any obligation described in subparts (a) through (k) above.


 


“Insolvent Lender”
means a Lender, as reasonably determined by the Administrative Agent, that (a) has become or is not Solvent or is the subsidiary
of a Person that has become or is not Solvent, (b) has become the subject of a proceeding under the Bankruptcy Code or under any
other applicable bankruptcy, insolvency or similar law now or hereafter in effect, or has had a receiver, conservator, trustee
or custodian appointed for it, or has taken any action in furtherance of, or indicating its consent to, approval of or acquiescence
in any such proceeding or appointment, or is a subsidiary of a Person that has become the subject of a proceeding under the Bankruptcy
Code or under any other applicable bankruptcy, insolvency or similar law now or hereafter in effect, or has had a receiver, conservator,
trustee or custodian appointed for it, or has taken any action in furtherance of, or indicating its consent to, approval of or
acquiescence in any such proceeding or appointment, or (c) has become the subject of a Bail-In Action; provided that a Lender
shall not be an Insolvent Lender solely by virtue of the ownership or acquisition or control of an equity interest in such Lender
or a parent company thereof by a Governmental Authority or an instrumentality thereof so long as such ownership interest does
not result in or provide such Lender with immunity from the jurisdiction of courts within the United States or from the enforcement
of judgments or writs of attachment on its assets or permit such Lender (or such Governmental Authority) to reject, repudiate,
disavow or disaffirm any contracts or agreements made with such Lender. Any Insolvent Lender shall cease to be an Insolvent Lender
when the Administrative Agent determines, in its reasonable discretion, that such Insolvent Lender is no longer an Insolvent Lender
based upon the characteristics set forth in this definition.


 






    	 	21	 



     

    

 


“Intellectual Property
Security Agreement” means each Intellectual Property Security Agreement, executed and delivered on or after the Closing
Date by the Borrower or a Guarantor of Payment, as the same may from time to time be amended, restated or otherwise modified.


 


“Interest Adjustment
Date” means the last day of each Interest Period.


 


“Interest Period”
means, with respect to a Eurodollar Loan, the period commencing on the date such Eurodollar Loan is made and ending on the last
day of such period, as selected by the Borrower pursuant to the provisions hereof, and, thereafter (unless such Eurodollar Loan
is converted to a Base Rate Loan), each subsequent period commencing on the last day of the immediately preceding Interest Period
and ending on the last day of such period, as selected by the Borrower pursuant to the provisions hereof. The duration of each
Interest Period for a Eurodollar Loan shall be one month, two months, three months or six months, in each case as the Borrower
may select upon notice, as set forth in Section 2.6 hereof; provided that if the Borrower shall fail to so select the duration
of any Interest Period at least three Business Days prior to the Interest Adjustment Date applicable to such Eurodollar Loan,
the Borrower shall be deemed to have converted such Eurodollar Loan to a Base Rate Loan at the end of the then current Interest
Period. Notwithstanding the foregoing, no Interest Period shall extend beyond the last day of the Commitment Period.


 


“Inventory”
means inventory, as that term is defined in the U.C.C.


 


“Investment Property”
means investment property, as that term is defined in the U.C.C., unless the Uniform Commercial Code as in effect in another jurisdiction
would govern the perfection and priority of a security interest in investment property, and, in such case, “investment property”
shall be defined in accordance with the law of that jurisdiction as in effect from time to time.


 


“Issuing Lender”
means, as to any Letter of Credit transaction hereunder, the Administrative Agent as issuer of the Letter of Credit, or, in the
event that the Administrative Agent either shall be unable to issue or the Administrative Agent shall agree that another Revolving
Lender may issue, a Letter of Credit, such other Revolving Lender as shall be acceptable to the Administrative Agent and shall
agree to issue the Letter of Credit in its own name, but in each instance on behalf of the Revolving Lenders.


 


“KeyBank”
means KeyBank National Association, and its successors and assigns.


 


“Lender” means
that term as defined in the first paragraph of this Agreement and, as the context requires, shall include the Issuing Lender and
the Swing Line Lender.


 






    	 	22	 



     

    

 


“Lender Credit Exposure”
means, for any Lender, at any time, the aggregate of such Lender’s respective pro rata shares of the Revolving Credit Exposure
and the Term Loan Exposure.


 


“Letter of Credit”
means a commercial documentary letter of credit or standby letter of credit that shall be issued by the Issuing Lender for the
account of the Borrower or a Guarantor of Payment, including amendments thereto, if any, and shall have an expiration date no
later than the earlier of (a) three hundred sixty-four (364) days after its date of issuance (provided that such Letter of Credit
may provide for the renewal thereof for additional one year periods), or (b) thirty (30) days prior to the last day of the Commitment
Period.


 


“Letter of Credit
Commitment” means the commitment of the Issuing Lender, on behalf of the Revolving Lenders, to issue Letters of Credit in
an aggregate face amount of up to Seven Million Five Hundred Thousand Dollars ($7,500,000).


 


“Letter of Credit
Exposure” means, at any time, the sum of (a) the aggregate undrawn amount of all issued and outstanding Letters of Credit,
and (b) the aggregate of the draws made on Letters of Credit that have not been reimbursed by the Borrower or converted to a Revolving
Loan pursuant to Section 2.2(b)(v) hereof.


 


“Letter of Credit
Fee” means, with respect to any Letter of Credit, for any day, an amount equal to (a) the undrawn amount of such Letter
of Credit, multiplied by (b) the Applicable Margin for Revolving Loans that are Eurodollar Loans in effect on such day divided
by three hundred sixty (360).


 


“Leverage Ratio”
means, as determined on a Consolidated basis, the ratio of (a) Consolidated Funded Indebtedness (as of the end of the most recently
completed fiscal quarter of the Borrower); to (b) Consolidated EBITDA (for the most recently completed four fiscal quarters of
the Borrower); provided that, for purposes of calculating the Leverage Ratio for the fiscal quarters of the Borrower ending June
30, 2016, September 30, 2016, and December 31, 2016, such ratio shall equal (i) Consolidated Funded Indebtedness (as of the end
of most recently completed fiscal quarter of the Borrower); to (ii) Annualized Consolidated EBITDA.


 


“Lien” means
any mortgage, deed of trust, security interest, lien (statutory or other), charge, assignment, hypothecation, encumbrance on,
pledge or deposit of, or conditional sale, lease (other than Operating Leases), sale with a right of redemption or other title
retention agreement and any capitalized lease with respect to any property (real or personal) or asset.


 


“Loan” means
a Revolving Loan, a Swing Loan or the Term Loan.


 


“Loan Documents”
means, collectively, this Agreement, each Note, each Guaranty of Payment, each Guaranty of Payment Joinder, all documentation
relating to each Letter of Credit, each Security Document, the Administrative Agent Fee Letter and the Closing Fee Letter, as
any of the foregoing may from time to time be amended, restated or otherwise modified or replaced, and any other document delivered
pursuant thereto.


 






    	 	23	 



     

    

 


“Lockbox”
means the post office box rented by and in the name of the Borrower in accordance with Section 7.2(a) hereof.


 


“Mandatory Prepayment”
means that term as defined in Section 2.11(c) hereof.


 


“Master Agreement”
means that Master Agreement entered into between the Borrower and the Administrative Agent in connection with the cash management
services undertaken by the Administrative Agent on behalf of the Companies.


 


“Material Adverse
Effect” means a material adverse effect on (a) the business, assets, liabilities (actual or contingent), operations, condition
(financial or otherwise) or prospects of any Company, (b) the business, assets, liabilities (actual or contingent), operations,
condition (financial or otherwise) or prospects of the Companies taken as a whole, (c) the rights and remedies of the Administrative
Agent or the Lenders under any Loan Document, (d) the ability of any Credit Party to perform its obligations under any Loan Document
to which it is a party, or (e) the legality, validity, binding effect or enforceability against any Credit Party of any Loan Document
to which it is a party.


 


“Material Indebtedness
Agreement” means any debt instrument, lease (capital, operating or otherwise), guaranty, contract, commitment, agreement
or other arrangement evidencing or entered into in connection with any Indebtedness of any Company or the Companies equal to or
in excess of the amount of One Million Dollars ($1,000,000).


 


“Material Recovery
Determination Notice” means that term as defined in Section 2.11(c)(iii) hereof.


 


“Material Recovery
Event” means (a) any casualty loss in respect of assets of a Company covered by casualty insurance, and (b) any compulsory
transfer or taking under threat of compulsory transfer of any asset of a Company by any Governmental Authority; provided that,
in the case of either subpart (a) or (b) hereof, the Net Cash Proceeds received by the Companies from such loss, transfer or taking
exceeds Two Hundred Fifty Thousand Dollars ($250,000).


 


“Maximum Amount”
means, for each Lender, the amount set forth opposite such Lender’s name under the column headed “Maximum Amount”
as set forth on Schedule 1 hereto, subject to (a) decreases pursuant to Section 2.9(e) hereof, (b) decreases of the Term
Loan by virtue of principal payments made, and (c) assignments of interests pursuant to Section 11.11 hereof; provided that the
Maximum Amount for the Swing Line Lender shall exclude the Swing Line Commitment (other than its pro rata share), and the Maximum
Amount of the Issuing Lender shall exclude the Letter of Credit Commitment (other than its pro rata share thereof).


 


“Maximum Rate”
means that term as defined in Section 2.4(e) hereof.


 


“Maximum Revolving
Amount” means Eighty-Five Million Dollars ($85,000,000), as such amount may be reduced pursuant to Section 2.9(e) hereof.


 


“Moody’s”
means Moody’s Investors Service, Inc., and any successor to such company.


 






    	 	24	 



     

    

 


“Mophie” means
mophie inc., a California corporation.


 


“Mophie Acquisition”
means the Acquisition by the Borrower (through a wholly-owned subsidiary) of all of the capital stock of Mophie pursuant to the
Mophie Acquisition Documents.


 


“Mophie Acquisition
Documents” means the Mophie Purchase Agreement and each other document executed and delivered in connection therewith.


 


“Mophie Contingent
Payments” means those payments required to be made by the Companies to Mophie equity holders pursuant to Section 2.11(a),
(b) or (d) of the Mophie Purchase Agreement.


 


“Mophie Earn-Out
Payments” means those payments required to be made by the Companies to Mophie equity holders pursuant to Section 2.10 of
the Mophie Purchase Agreement.


 


“Mophie Purchase
Agreement” means that certain Agreement and Plan of Merger, dated as of February 2, 2016, by and among the Borrower, ZM
Acquisition, Inc., a Delaware corporation, Mophie and the shareholders of Mophie.


 


“Multiemployer Plan”
means a Pension Plan that is subject to the requirements of Subtitle E of Title IV of ERISA.


 


“Net Cash Proceeds”
means (a) for any Asset Sale, the Cash Proceeds net of attorneys’ fees, accountants’ fees, investment banking fees,
amounts required to be reserved for indemnification, adjustment of purchase price or similar obligations pursuant to the agreements
governing such Asset Sale, amounts required to be applied to the repayment of Indebtedness secured by a Lien expressly permitted
by this Agreement on any asset that is the subject of such Asset Sale (other than any Lien pursuant to a Loan Document) and other
customary fees and expenses actually incurred in connection therewith and net of taxes paid or reasonably estimated to be payable
as a result thereof (after taking into account any available tax credits or deductions and any tax sharing arrangements); (b)
for any Material Recovery Event, the Cash Proceeds resulting therefrom net of (i) reasonable and customary expenses incurred in
connection with such Material Recovery Event, and local taxes paid or reasonably estimated to be payable as a consequence of such
Material Recovery Event and the payment of principal, premium and interest of Indebtedness (other than the Obligations) secured
by the asset that is the subject of the Material Recovery Event and required to be, and that is, repaid under the terms thereof
as a result of such Material Recovery Event, and (ii) incremental federal, state and local income taxes paid or payable as a result
thereof and (c) for any Equity Offering by the Borrower or any incurrence of Indebtedness by any Company, the Cash Proceeds received
from such Equity Offering or incurrence of Indebtedness, net of attorneys’ fees, investment banking fees, accountants’
fees, underwriting discounts and commissions and other customary fees and expenses actually incurred in connection therewith.


 


“Non-Consenting
Lender” means that term as defined in Section 11.3(c) hereof.


 






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“Non-U.S. Lender”
means that term as defined in Section 3.2(c) hereof.


 


“Note” means
a Revolving Credit Note, the Swing Line Note or a Term Note, or any other promissory note delivered pursuant to this Agreement.


 


“Notice of Loan”
means a Notice of Loan in the form of the attached Exhibit E.


 


“Obligations”
means, collectively, (a) all Indebtedness and other obligations now owing or hereafter incurred by the Borrower to the Administrative
Agent, the Swing Line Lender, the Issuing Lender, or any Lender pursuant to this Agreement and the other Loan Documents, and includes
the principal of and interest on all Loans, and all obligations of the Borrower or any other Credit Party pursuant to Letters
of Credit; (b) each extension, renewal, consolidation or refinancing of any of the foregoing, in whole or in part; (c) the commitment
and other fees, and any prepayment fees, payable pursuant to this Agreement or any other Loan Document; (d) all fees and charges
in connection with Letters of Credit; (e) every other liability, now or hereafter owing to the Administrative Agent or any Lender
by any Company pursuant to this Agreement or any other Loan Document; and (f) all Related Expenses.


 


“Operating Account”
means a commercial Deposit Account designated “operating account” and maintained by the Borrower with the Administrative
Agent, without liability by the Administrative Agent to pay interest thereon, from which account the Borrower shall have the right
to withdraw funds until the Administrative Agent, on behalf of the Lenders, terminates such right after the occurrence of a Default
or an Event of Default.


 


“Operating Leases”
means all real or personal property leases under which any Company is bound or obligated as a lessee or sublessee and which, under
GAAP, are not required to be capitalized on a balance sheet of such Company; provided that Operating Leases shall not include
any such lease under which any Company is also bound as the lessor or sublessor.


 


“Organizational
Documents” means, with respect to any Person (other than an individual), such Person’s Articles (Certificate) of Incorporation,
operating agreement or equivalent formation documents, and Regulations (Bylaws), or equivalent governing documents, and any amendments
to any of the foregoing.


 


“Other Taxes”
means any and all present or future stamp or documentary taxes or any other excise, ad valorem or property taxes, goods and services
taxes, harmonized sales taxes and other sales taxes, use taxes, value added taxes, transfer taxes, charges or similar taxes or
levies arising from any payment made hereunder or under any other Loan Document, or from the execution, delivery or enforcement
of, or otherwise with respect to, this Agreement or any other Loan Document.


 


“Overall Commitment
Percentage” means, for any Lender, the percentage determined by dividing (a) the sum, based upon such Lender’s Applicable
Commitment Percentages, of (i) the principal outstanding on the Term Loan, (ii) the aggregate principal amount of Revolving Loans
outstanding, (iii) the Swing Line Exposure, and (iv) the Letter of Credit Exposure; by (b) the sum of (i) the aggregate principal
amount of all Loans outstanding, plus (ii) the Letter of Credit Exposure.


 






    	 	26	 



     

    

 


“Participant”
means that term as defined in Section 11.12 hereof.


 


“Patriot Act”
means the Uniting and Strengthening America by Providing Appropriate Tools Required to Intercept and Obstruct Terrorism Act of
2001, USA Patriot Act, Title III of Pub. L. 107-56, signed into law October 26, 2001, as amended from time to time.


 


“Patriot Capital
Payments” means capital contributions made by Borrower to Patriot Corporation, but only when the aggregate amount of such
capital contributions are used by Patriot Corporation to pay royalty, cost-sharing and other obligations due to the Borrower under
the terms of that certain Technology Platform Contribution License Agreement between Borrower and Patriot Corporation dated December
31, 2012, as amended.


 


“Patriot Corporation”
means Patriot Corporation, an unlimited liability company organized and existing under the laws of Ireland.


 


“PBGC” means
the Pension Benefit Guaranty Corporation, and its successor.


 


“Pension Plan”
means an ERISA Plan that is a “pension plan” (within the meaning of ERISA Section 3(2)).


 


“Permitted Foreign
Subsidiary Loans, Guaranties and Investments” means:


 


(a)the investments
by the Borrower or a Domestic Subsidiary in a Foreign Subsidiary, in such amounts existing as of the Closing Date and set forth
on Schedule 5.11 hereto;


 


(b)the loans by the
Borrower or a Domestic Subsidiary to a Foreign Subsidiary, in such amounts existing as of the Closing Date and set forth on Schedule
5.11 hereto (and any extension, renewal or refinancing thereof but, only to the extent that the principal amount thereof does
not increase after the Closing Date); and


 


(c)any investment
by a Foreign Subsidiary in, or loan from a Foreign Subsidiary to, or guaranty from a Foreign Subsidiary of Indebtedness of, a
Company.


 


“Person” means
any individual, sole proprietorship, partnership, joint venture, unincorporated organization, corporation, limited liability company,
unlimited liability company, institution, trust, estate, Governmental Authority or any other entity.


 


“Pledge Agreement”
means each of the Pledge Agreements, relating to the Pledged Securities, executed and delivered by the Borrower or a Guarantor
of Payment, as applicable, in favor of the Administrative Agent, for the benefit of the Lenders, dated on or after the Closing
Date, as any of the foregoing may from time to time be amended, restated or otherwise modified.


 






    	 	27	 



     

    

 


“Pledged Notes”
means the promissory notes payable to a Credit Party, as described on Schedule 7.4 hereto, and any additional or future
promissory notes that may hereafter from time to time be payable to the Borrower.


 


“Pledged Securities”
means all of the shares of capital stock or other equity interest of a direct Subsidiary of a Credit Party, whether now owned
or hereafter acquired or created, and all proceeds thereof; provided that Pledged Securities shall exclude shares of voting capital
stock or other voting equity interests in any Foreign Subsidiary that is a CFC in excess of sixty-five percent (65%) of the total
outstanding shares of voting capital stock or other voting equity interest of such Foreign Subsidiary, whether held directly or
indirectly through a disregarded entity. (Schedule 4 hereto lists, as of the Closing Date, all of the Pledged Securities.)


 


“Prime Rate”
means the interest rate established from time to time by the Administrative Agent as the Administrative Agent’s prime rate,
whether or not such rate shall be publicly announced; the Prime Rate may not be the lowest interest rate charged by the Administrative
Agent for commercial or other extensions of credit. Each change in the Prime Rate shall be effective immediately from and after
such change.


 


“Proceeds”
means (a) proceeds, as that term is defined in the U.C.C., and any other proceeds, and (b) whatever is received upon the sale,
exchange, collection or other disposition of Collateral or proceeds, whether cash or non-cash. Cash proceeds include, without
limitation, moneys, checks and Deposit Accounts. Proceeds include, without limitation, any Account arising when the right to payment
is earned under a contract right, any insurance payable by reason of loss or damage to the Collateral, and any return or unearned
premium upon any cancellation of insurance. Except as expressly authorized in this Agreement, the right of the Administrative
Agent and the Lenders to Proceeds specifically set forth herein, or indicated in any financing statement, shall never constitute
an express or implied authorization on the part of the Administrative Agent or any Lender to a Company’s sale, exchange,
collection or other disposition of any or all of the collateral securing the Secured Obligations.


 


“Protective Advance”
means a protective advance made by the Administrative Agent in accordance with Section 2.15 hereof for the following:


 


(a)to pay and discharge
past due taxes, assessments and governmental charges, at any time levied on or with respect to any of the Collateral to the extent
that the applicable Company has failed to pay and discharge the same in accordance with the requirements of this Agreement or
any of the other Loan Documents;


 


(b)to pay and discharge
any claims of other creditors that are secured by any Lien on any Collateral, other than a Lien permitted by Section 5.9 hereof;


 


(c)to pay for the
maintenance, repair, restoration and preservation of any Collateral to the extent the Company that owns such Collateral fails
to comply with its obligations in regard thereto under this Agreement and the other Loan Documents, or the Administrative Agent
reasonably believes payment of the same is necessary or appropriate to avoid a material loss or material diminution in value of
such Collateral;


 






    	 	28	 



     

    

 


(d)to obtain and pay
the premiums on insurance for any Collateral to the extent the Companies fail to maintain such insurance in accordance with the
requirements of this Agreement and the other Loan Documents; or


 


(e)to otherwise maintain,
protect or preserve the Collateral or the rights of the Lenders under the Loan Documents and is made to enhance the likelihood
of, or to maximize the amount of, repayment of the Secured Obligations.


 


“Register”
means that term as described in Section 11.11(i) hereof.


 


“Regularly Scheduled
Payment Date” means the first day of each calendar month.


 


“Related Expenses”
means any and all costs, liabilities and expenses (including, without limitation, losses, damages, penalties, claims, actions,
reasonable attorneys’ fees, legal expenses, judgments, suits and disbursements) (a) incurred by the Administrative Agent,
or imposed upon or asserted against the Administrative Agent or any Lender, in any attempt by the Administrative Agent and the
Lenders to (i) obtain, preserve, perfect or enforce any Loan Document or any security interest evidenced by any Loan Document;
(ii) obtain payment, performance or observance of any and all of the Secured Obligations; or (iii) maintain, insure, audit, collect,
preserve, repossess or dispose of any of the collateral securing the Secured Obligations or any part thereof, including, without
limitation, costs and expenses for appraisals, assessments and audits of any Company or any such collateral; or (b) incidental
or related to subpart (a) above, including, without limitation, interest thereupon from the date incurred, imposed or asserted
until paid at the Default Rate.


 


“Related Writing”
means each Loan Document, each Borrowing Base Certificate and any other assignment, mortgage, security agreement, guaranty agreement,
subordination agreement, financial statement, audit report or other writing furnished by any Credit Party, or any of its officers,
to the Administrative Agent or the Lenders pursuant to or otherwise in connection with this Agreement.


 


“Reportable Event”
means a reportable event as that term is defined in Title IV of ERISA, except actions of general applicability by the Secretary
of Labor under Section 110 of such Act.


 


“Required Lenders”
means the holders, based upon each Lender’s Applicable Commitment Percentages, of at least sixty-six and two-thirds percent
(66 2/3%) of an amount (the “Total Amount”) equal to the sum of:


 


(a) (i)
during the Commitment Period, the Maximum Revolving Amount, or (ii) after the Commitment Period, the Revolving Credit
Exposure; and


 


(b)the principal outstanding
on the Term Loan;


 






    	 	29	 



     

    

 


provided that (A) the portion of the Total
Amount held or deemed to be held by any Defaulting Lender or Insolvent Lender shall be excluded for purposes of making a determination
of Required Lenders, and (B) if there shall be two or more Lenders (that are not Defaulting Lenders or Insolvent Lenders), Required
Lenders shall constitute at least two Lenders.


 


“Requirement of
Law” means, as to any Person, any law, treaty, rule or regulation or determination or policy statement or interpretation
of an arbitrator or a court or other Governmental Authority, in each case applicable to or binding upon such Person or any of
its property.


 


“Reserve”
or “Reserves” means any amount that the Administrative Agent reserves, without duplication, pursuant to Section 2.13
hereof, against the Borrowing Base.


 


“Reserve Percentage”
means, for any day, that percentage (expressed as a decimal) that is in effect on such day, as prescribed by the Board of Governors
of the Federal Reserve System (or any successor) for determining the maximum reserve requirement (including, without limitation,
all basic, supplemental, marginal and other reserves and taking into account any transitional adjustments or other scheduled changes
in reserve requirements) for a member bank of the Federal Reserve System in Cleveland, Ohio, in respect of Eurocurrency Liabilities.
The Eurodollar Rate shall be adjusted automatically on and as of the effective date of any change in the Reserve Percentage.


 


“Restricted Payment”
means, with respect to any Company, (a) any Capital Distribution, (b) any amount paid by such Company in repayment, redemption,
retirement or repurchase, directly or indirectly, of any Subordinated Indebtedness, (c) any earn-out payment or payment in respect
of purchase price adjustments in connection with an Acquisition permitted hereunder, or (d) any amount paid by such Company in
respect of any management, consulting or other similar arrangement with any equity holder (other than a Company) of a Company
or an Affiliate.


 


“Revolving Credit
Availability” means, at any time, the amount equal to the Revolving Credit Commitment minus the Revolving Credit Exposure.


 


“Revolving Credit
Commitment” means the obligation hereunder, during the Commitment Period, of (a) the Revolving Lenders (and each Revolving
Lender) to make Revolving Loans, (b) the Issuing Lender to issue and each Revolving Lender to participate in, Letters of Credit
pursuant to the Letter of Credit Commitment, and (c) the Swing Line Lender to make, and each Revolving Lender to participate in,
Swing Loans pursuant to the Swing Line Commitment; up to an aggregate principal amount outstanding at any time equal to the lesser
of (i) the Borrowing Base, or (ii) the Maximum Revolving Amount.


 


“Revolving Credit
Exposure” means, at any time, the sum of (a) the aggregate principal amount of all Revolving Loans outstanding, (b) the
Swing Line Exposure, and (c) the Letter of Credit Exposure.


 


“Revolving Credit
Note” means a Revolving Credit Note, in the form of the attached Exhibit A, executed and delivered pursuant to Section
2.5(a) hereof.


 






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“Revolving Lender”
means a Lender with a percentage of the Revolving Credit Commitment as set forth on Schedule 1 hereto, or that acquires
a percentage of the Revolving Credit Commitment pursuant to Section 11.11 hereof.


 


“Revolving Loan”
means a loan made to the Borrower by the Revolving Lenders in accordance with Section 2.2(a) hereof.


 


“Sanctions”
means economic or financial sanctions or trade embargoes imposed, administered or enforced from time to time by (a) the U.S. government,
including those administered by the U.S. Department of the Treasury’s Office of Foreign Assets Control or the U.S. Department
of State or (b) the United Nations Security Council, the European Union or Her Majesty’s Treasury of the United Kingdom,
or other relevant sanctions authorities.


 


“SEC” means
the United States Securities and Exchange Commission, or any governmental body or agency succeeding to any of its principal functions.


 


“Secured Obligations”
means, collectively, (a) the Obligations, (b) all obligations and liabilities of the Companies owing to a Lender (or an entity
that is an affiliate of a then existing Lender) under Hedge Agreements, and (c) the Bank Product Obligations owing to a Lender
(or an entity that is an affiliate of a then existing Lender) under Bank Product Agreements; provided that Secured Obligations
of a Credit Party shall not include Excluded Swap Obligations owing from such Credit Party.


 


“Securities Account”
means a securities account, as that term is defined in the U.C.C.


 


“Securities Account
Control Agreement” means each Securities Account Control Agreement among a Credit Party, the Administrative Agent and a
Securities Intermediary, dated on or after the Closing Date, to be in form and substance satisfactory to the Administrative Agent,
as the same may from time to time be amended, restated or otherwise modified.


 


“Securities Intermediary”
means a clearing corporation or a Person, including, without limitation, a bank or broker, that in the ordinary course of its
business maintains Securities Accounts for others and is acting in that capacity.


 


“Security Account”
means a commercial Deposit Account maintained with the Administrative Agent, without liability by the Administrative Agent to
pay interest thereon, as described in Section 7.2(e) hereof.


 


“Security Agreement”
means each Security Agreement, executed and delivered by one or more Guarantors of Payment in favor of the Administrative Agent,
for the benefit of the Lenders, dated as of the Closing Date, and any other Security Agreement executed on or after the Closing
Date, as the same may from time to time be amended, restated or otherwise modified.


 






    	 	31	 



     

    

 


“Security Agreement
Joinder” means each Security Agreement Joinder, executed and delivered by a Guarantor of Payment for the purpose of adding
such Guarantor of Payment as a party to a previously executed Security Agreement.


 


“Security Document”
means each Security Agreement, each Security Agreement Joinder, each Pledge Agreement, each Intellectual Property Security Agreement,
each Collateral Access Agreement, each Control Agreement, each U.C.C. Financing Statement or similar filing as to a jurisdiction
located outside of the United States filed in connection herewith or perfecting any interest created in any of the foregoing documents,
and any other document pursuant to which any Lien is granted by a Company or any other Person to the Administrative Agent, for
the benefit of the Lenders, as security for the Secured Obligations, or any part thereof, and each other agreement executed or
provided to the Administrative Agent in connection with any of the foregoing, as any of the foregoing may from time to time be
amended, restated or otherwise modified or replaced.


 


“Settlement Date”
means that term as defined in Section 2.2(c)(ii) hereof.


 


“Solvent”
means, with respect to any Person, that (a) the fair value of such Person’s assets is in excess of the total amount of such
Person’s debts, as determined in accordance with the Bankruptcy Code, (b) the present fair saleable value of such Person’s
assets is in excess of the amount that will be required to pay such Person’s debts as such debts become absolute and matured,
(c) such Person is able to realize upon its assets and pay its debts and other liabilities (including disputed, contingent and
unliquidated liabilities) as such liabilities mature in the ordinary course of business, (d) such Person does not intend to, and
does not believe that it will, incur debts or liabilities beyond its ability to pay as such debts and liabilities mature, and
(e) such Person is not engaged in business or a transaction, and is not about to engage in business or a transaction, for which
its property would constitute an unreasonably small amount of capital. As used in this definition, the term “debts”
includes any legal liability, whether matured or unmatured, liquidated or unliquidated, absolute, fixed or contingent, as determined
in accordance with the Bankruptcy Code.


 


“Specific Commitment”
means the Revolving Credit Commitment or the Term Loan Commitment.


 


“Standard &
Poor’s” means Standard & Poor’s Financial Services LLC, a subsidiary of The McGraw-Hill Companies, Inc.,
and any successor to such company.


 


“StuckyNet System”
means the StuckyNet-Link internet-based communication system utilized by the Administrative Agent.


 


“Subordinated Indebtedness”
means Indebtedness that shall have been subordinated (by written terms or written agreement being, in either case, in form and
substance satisfactory to the Administrative Agent) in favor of the prior payment in full of the Obligations.


 






    	 	32	 



     

    

 


“Subsidiary”
means (a) a corporation more than fifty percent (50%) of the Voting Power of which is owned, directly or indirectly, by the Borrower
or by one or more other subsidiaries of the Borrower or by the Borrower and one or more subsidiaries of the Borrower, (b) a partnership,
limited liability company or unlimited liability company of which the Borrower, one or more other subsidiaries of the Borrower
or the Borrower and one or more subsidiaries of the Borrower, directly or indirectly, is a general partner or managing member,
as the case may be, or otherwise has an ownership interest greater than fifty percent (50%) of all of the ownership interests
in such partnership, limited liability company or unlimited liability company, or (c) any other Person (other than a corporation,
partnership, limited liability company or unlimited liability company) in which the Borrower, one or more other subsidiaries of
the Borrower or the Borrower and one or more subsidiaries of the Borrower, directly or indirectly, has at least a majority interest
in the Voting Power or the power to elect or direct the election of a majority of directors or other governing body of such Person.


 


“Swap Obligations”
means, with respect to any Company, any obligation to pay or perform under any agreement, contract or transaction that constitutes
a “swap” within the meaning of section 1a(47) of the Commodity Exchange Act.


 


“Swing Line Commitment”
means the commitment of the Swing Line Lender to make Swing Loans to the Borrower, on a discretionary basis, up to the aggregate
amount at any time outstanding of Eight Million Five Hundred Thousand Dollars ($8,500,000).


 


“Swing Line Exposure”
means, at any time, the aggregate principal amount of all Swing Loans outstanding.


 


“Swing Line Lender”
means KeyBank, as holder of the Swing Line Commitment.


 


“Swing Line Note”
means the Swing Line Note, in the form of the attached Exhibit B executed and delivered pursuant to Section 2.5(b)
hereof.


 


“Swing Loan”
means a loan that shall be denominated in Dollars made to the Borrower by the Swing Line Lender under the Swing Line Commitment,
in accordance with Section 2.2(c) hereof.


 


“Swing Loan Maturity
Date” means, with respect to any Swing Loan, the earlier of (a) the first Wednesday (or the next Business Day if such Wednesday
is not a Business Day) after the date such Swing Loan is made, (b) demand by the Swing Line Lender, or (c) the last day of the
Commitment Period.


 


“Target EBITDA”
means, for any period, in accordance with GAAP, net earnings for such period, plus the aggregate amounts deducted in determining
such net earnings in respect of (a) income taxes, (b) interest expense, and (c) depreciation and amortization charges.


 


“Taxes” means
any and all present or future taxes of any kind, including, but not limited to, levies, imposts, duties, surtaxes, charges, fees,
deductions or withholdings now or hereafter imposed, levied, collected, withheld or assessed by any Governmental Authority (together
with any interest, penalties, fines, additions to taxes or similar liabilities with respect thereto) other than Excluded Taxes.


 






    	 	33	 



     

    

 


“Term Lender”
means a Lender with a percentage of the Term Loan Commitment as set forth on Schedule 1 hereto, or that acquires a percentage
of the Term Loan Commitment pursuant to Section 11.11 hereof.


 


“Term Loan”
means the loan made to the Borrower by the Term Lenders in the original principal amount of Twenty-Five Million Dollars ($25,000,000),
in accordance with Section 2.3 hereof.


 


“Term Loan Commitment”
means the obligation hereunder of each Term Lender to participate in the making of the Term Loan, up to the amount set forth opposite
such Term Lender’s name under the column headed “Term Loan Commitment Amount” as set forth on Schedule 1
hereto.


 


“Term Loan Exposure”
means, at any time, the outstanding principal amount of the Term Loan.


 


“Term Note”
means a Term Note, in the form of the attached Exhibit C executed and delivered pursuant to Section 2.5(c) hereof.


 


“Total Commitment
Amount” means the principal amount of One Hundred Ten Million Dollars ($110,000,000), as such amount is decreased by principal
payments on the Term Loan, and as such amount may be decreased pursuant to Section 2.9(e) hereof.


 


“U.C.C.” means
the Uniform Commercial Code, as in effect from time to time in the State of New York.


 


“U.C.C. Financing
Statement” means a financing statement filed or to be filed in accordance with the Uniform Commercial Code, as in effect
from time to time, in the relevant state or states.


 


“United States”
means the United States of America.


 


“Voting Power”
means, with respect to any Person, the exclusive ability to control, through the ownership of shares of capital stock, partnership
interests, membership interests or otherwise, the election of members of the board of directors or other similar governing body
of such Person. The holding of a designated percentage of Voting Power of a Person means the ownership of shares of capital stock,
partnership interests, membership interests or other interests of such Person sufficient to control exclusively the election of
that percentage of the members of the board of directors or similar governing body of such Person.


 


“Welfare Plan”
means an ERISA Plan that is a “welfare plan” within the meaning of ERISA Section 3(l).


 


“Write-Down and
Conversion Powers” means, with respect to any EEA Resolution Authority, the write-down and conversion powers of such EEA
Resolution Authority from time to time under the Bail-In Legislation for the applicable EEA Member Country, which write-down and
conversion powers are described in the EU Bail-In Legislation Schedule.


 






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Section 1.2. Accounting
Terms.


 


(a)Any accounting
term not specifically defined in this Article I shall have the meaning ascribed thereto by GAAP.


 


(b)If any change in
the rules, regulations, pronouncements, opinions or other requirements of the Financial Accounting Standards Board (or any successor
thereto or agency with similar function) with respect to GAAP, or if the Borrower adopts the International Financial Reporting
Standards, and such change or adoption results in a change in the calculation of any component (or components in the aggregate)
of the financial covenants set forth in Section 5.7 hereof or the related financial definitions, at the option of the Administrative
Agent, the Required Lenders or the Borrower, the parties hereto will enter into good faith negotiations to amend such financial
covenants and financial definitions in such manner as the parties shall agree, each acting reasonably, in order to reflect fairly
such change or adoption so that the criteria for evaluating the financial condition of the Borrower shall be the same in commercial
effect after, as well as before, such change or adoption is made (in which case the method and calculating such financial covenants
and definitions hereunder shall be determined in the manner so agreed); provided that, until so amended, such calculations shall
continue to be computed in accordance with GAAP as in effect prior to such change or adoption.


 


Section 1.3. Terms
Generally. The foregoing definitions shall be applicable to the singular and plural forms of the foregoing defined terms.
Unless otherwise defined in this Article I, terms that are defined in the U.C.C. are used herein as so defined. 


 


ARTICLE II. AMOUNT AND TERMS OF CREDIT


 


Section 2.1. Amount
and Nature of Credit.


 


(a)Subject to the
terms and conditions of this Agreement, the Lenders, during the Commitment Period and to the extent hereinafter provided, shall
make Loans to the Borrower, participate in Swing Loans made by the Swing Line Lender to the Borrower, and issue or participate
in Letters of Credit at the request of the Borrower, in such aggregate amount as the Borrower shall request pursuant to the Commitment;
provided that in no event shall the aggregate principal amount of all Loans and Letters of Credit outstanding under this Agreement
be in excess of the Total Commitment Amount.


 


(b)Each Lender, for
itself and not one for any other, agrees to make Loans, participate in Swing Loans, and issue or participate in Letters of Credit,
during the Commitment Period, on such basis that, immediately after the completion of any borrowing by the Borrower or the issuance
of a Letter of Credit:


 


(i)the aggregate
outstanding principal amount of Loans made by such Lender (other than Swing Loans made by the Swing Line Lender), when combined
with such Lender’s pro rata share, if any, of the Letter of Credit Exposure and the Swing Line Exposure, shall not be in
excess of the Maximum Amount for such Lender; and


 






    	 	35	 



     

    

 


(ii)with
respect to each Specific Commitment, the aggregate outstanding principal amount of Loans (other than Swing Loans) made by such
Lender with respect to such Specific Commitment shall represent that percentage of the aggregate principal amount then outstanding
on all Loans (other than Swing Loans) within such Specific Commitment that shall be such Lender’s Applicable Commitment
Percentage.


 


Within each Specific Commitment, each borrowing
(other than Swing Loans which shall be risk participated on a pro rata basis) from the Lenders shall be made pro rata according
to the respective Applicable Commitment Percentages of the Lenders.


 


(c)The Loans may be
made as Revolving Loans as described in Section 2.2(a) hereof, as the Term Loan as described in Section 2.3 hereof, and as Swing
Loans as described in Section 2.2(c) hereof, and Letters of Credit may be issued in accordance with Section 2.2(b) hereof.


 


Section 2.2. Revolving
Credit Commitment.


 


(a)Revolving Loans.
Subject to the terms and conditions of this Agreement, during the Commitment Period, the Revolving Lenders shall make a Revolving
Loan or Revolving Loans to the Borrower in such amount or amounts as the Borrower, through an Authorized Officer, may from time
to time request, but not exceeding in aggregate principal amount at any time outstanding hereunder the Revolving Credit Commitment,
when such Revolving Loans are combined with the Letter of Credit Exposure and the Swing Line Exposure. The Borrower shall have
the option, subject to the terms and conditions set forth herein, to borrow Revolving Loans, maturing on the last day of the Commitment
Period, by means of any combination of Base Rate Loans or Eurodollar Loans. Subject to the provisions of this Agreement, the Borrower
shall be entitled under this Section 2.2(a) to borrow Revolving Loans, repay the same in whole or in part and re-borrow Revolving
Loans hereunder at any time and from time to time during the Commitment Period. The aggregate outstanding amount of all Revolving
Loans shall be payable in full on the last day of the Commitment Period.


 


(b)Letters of Credit.


 


(i)Generally.
Subject to the terms and conditions of this Agreement, during the Commitment Period, the Issuing Lender shall, in its own name,
on behalf of the Revolving Lenders, issue such Letters of Credit for the account of the Borrower or a Guarantor of Payment, as
the Borrower may from time to time request. The Borrower shall not request any Letter of Credit (and the Issuing Lender shall
not be obligated to issue any Letter of Credit) if, after giving effect thereto, (A) the Letter of Credit Exposure would exceed
the Letter of Credit Commitment, or (B) the Revolving Credit Exposure would exceed the Revolving Credit Commitment. The issuance
of each Letter of Credit shall confer upon each Revolving Lender the benefits and liabilities of a participation consisting of
an undivided pro rata interest in the Letter of Credit to the extent of such Revolving Lender’s Applicable Commitment Percentage.


 






    	 	36	 



     

    

 


(ii)Request
for Letter of Credit. Each request for a Letter of Credit shall be delivered to the Administrative Agent (and to the Issuing
Lender, if the Issuing Lender is a Lender other than the Administrative Agent) by an Authorized Officer not later than 11:00 A.M.
(Eastern time) three Business Days prior to the date of the proposed issuance of the Letter of Credit (or such shorter period
as may be acceptable to the Issuing Lender). Each such request shall be in a form acceptable to the Administrative Agent (and
the Issuing Lender, if the Issuing Lender is a Lender other than the Administrative Agent) and shall specify the face amount thereof,
whether such Letter of Credit is a commercial documentary or a standby Letter of Credit, the account party, the beneficiary, the
requested date of issuance, amendment, renewal or extension, the expiry date thereof, and the nature of the transaction or obligation
to be supported thereby. Concurrently with each such request, the Borrower, and any Guarantor of Payment for whose account the
Letter of Credit is to be issued, shall execute and deliver to the Issuing Lender an appropriate application and agreement, being
in the standard form of the Issuing Lender for such letters of credit, as amended to conform to the provisions of this Agreement
if required by the Administrative Agent. The Administrative Agent shall give the Issuing Lender and each Revolving Lender notice
of each such request for a Letter of Credit.


 


(iii)Commercial
Documentary Letters of Credit Fees. With respect to each Letter of Credit that shall be a commercial documentary letter of
credit and the drafts thereunder, whether issued for the account of the Borrower or a Guarantor of Payment, the Borrower agrees
to (A) pay to the Administrative Agent, for the pro rata benefit of the Revolving Lenders, a non-refundable commission based upon
the face amount of such Letter of Credit, which shall be paid quarterly in arrears, on the first day of each January, April, July
and October of each calendar year, in an amount equal to the aggregate sum of the Letter of Credit Fee for such Letter of Credit
for each day of such quarter; (B) pay to the Administrative Agent, for the sole benefit of the Issuing Lender, an additional Letter
of Credit fee, which shall be paid on each date that such Letter of Credit is issued, amended or renewed, at the rate of one-eighth
percent (1/8%) of the face amount of such Letter of Credit; and (C) pay to the Administrative Agent, for the sole benefit of the
Issuing Lender, such other issuance, amendment, renewal, negotiation, draw, acceptance, telex, courier, postage and similar transactional
fees as are customarily charged by the Issuing Lender in respect of the issuance and administration of similar letters of credit
under its fee schedule as in effect from time to time.


 






    	 	37	 



     

    

 


(iv)Standby
Letters of Credit Fees. With respect to each Letter of Credit that shall be a standby letter of credit and the drafts thereunder,
if any, whether issued for the account of the Borrower or a Guarantor of Payment, the Borrower agrees to (A) pay to the Administrative
Agent, for the pro rata benefit of the Revolving Lenders, a non-refundable commission based upon the face amount of such Letter
of Credit, which shall be paid quarterly in arrears, on the first day of each January, April, July and October of each calendar
year, in an amount equal to the aggregate sum of the Letter of Credit Fee for such Letter of Credit for each day of such quarter;
(B) pay to the Administrative Agent, for the sole benefit of the Issuing Lender, an additional Letter of Credit fee, which shall
be paid on each date that such Letter of Credit is issued, amended or renewed at the rate of one-eighth percent (1/8%) of the
face amount of such Letter of Credit; and (C) pay to the Administrative Agent, for the sole benefit of the Issuing Lender, such
other issuance, amendment, renewal, negotiation, draw, acceptance, telex, courier, postage and similar transactional fees as are
customarily charged by the Issuing Lender in respect of the issuance and administration of similar letters of credit under its
fee schedule as in effect from time to time.




 


(v)Refunding
of Letters of Credit with Revolving Loans. Whenever a Letter of Credit shall be drawn, the Borrower shall immediately reimburse
the Issuing Lender for the amount drawn. In the event that the amount drawn shall not have been reimbursed by the Borrowers on
the date of the drawing of such Letter of Credit, at the sole option of the Administrative Agent (and the Issuing Lender, if the
Issuing Lender is a Lender other than the Administrative Agent), the Borrower shall be deemed to have requested a Revolving Loan,
subject to the provisions of Sections 2.2(a) and 2.6 hereof (other than the requirement set forth in Section 2.6(d) hereof), in
the amount drawn. Such Revolving Loan shall be evidenced by the Revolving Credit Notes (or, if a Lender has not requested a Revolving
Credit Note, by the records of the Administrative Agent and such Lender). Each Revolving Lender agrees to make a Revolving Loan
on the date of such notice, subject to no conditions precedent whatsoever. Each Revolving Lender acknowledges and agrees that
its obligation to make a Revolving Loan pursuant to Section 2.2(a) hereof when required by this Section 2.2(b)(v) shall be absolute
and unconditional and shall not be affected by any circumstance whatsoever, including, without limitation, the occurrence and
continuance of a Default or Event of Default, and that its payment to the Administrative Agent, for the account of the Issuing
Lender, of the proceeds of such Revolving Loan shall be made without any offset, abatement, recoupment, counterclaim, withholding
or reduction whatsoever and whether or not the Revolving Credit Commitment shall have been reduced or terminated. The Borrower
irrevocably authorizes and instructs the Administrative Agent to apply the proceeds of any borrowing pursuant to this Section
2.2(b)(v) to reimburse, in full (other than the Issuing Lender’s pro rata share of such borrowing), the Issuing Lender for
the amount drawn on such Letter of Credit. Each such Revolving Loan shall be deemed to be a Base Rate Loan unless otherwise requested
by and available to the Borrower hereunder. Each Revolving Lender is hereby authorized to record on its records relating to its
Revolving Credit Note (or, if such Lender has not requested a Revolving Credit Note, its records relating to Revolving Loans)
such Revolving Lender’s pro rata share of the amounts paid and not reimbursed on the Letters of Credit.


 






    	 	38	 



     

    

 


(vi)Participation
in Letters of Credit. If, for any reason, the Administrative Agent (and the Issuing Lender if the Issuing Lender is a Lender
other than the Administrative Agent) shall be unable to or, in the opinion of the Administrative Agent, it shall be impracticable
to, convert any amount drawn under a Letter of Credit to a Revolving Loan pursuant to the preceding subsection, the Administrative
Agent (and the Issuing Lender if the Issuing Lender is a Lender other than the Administrative Agent) shall have the right to request
that each Revolving Lender fund a participation in the amount due with respect to such Letter of Credit, and the Administrative
Agent shall promptly notify each Revolving Lender thereof (by facsimile or email (in each case confirmed by telephone) or telephone
(confirmed in writing)). Upon such notice, but without further action, the Issuing Lender hereby agrees to grant to each Revolving
Lender, and each Revolving Lender hereby agrees to acquire from the Issuing Lender, an undivided participation interest in the
amount due with respect to such Letter of Credit in an amount equal to such Revolving Lender’s Applicable Commitment Percentage
of the principal amount due with respect to such Letter of Credit. In consideration and in furtherance of the foregoing, each
Revolving Lender hereby absolutely and unconditionally agrees, upon receipt of notice as provided above, to pay to the Administrative
Agent, for the account of the Issuing Lender, such Revolving Lender’s ratable share of the amount due with respect to such
Letter of Credit (determined in accordance with such Revolving Lender’s Applicable Commitment Percentage). Each Revolving
Lender acknowledges and agrees that its obligation to acquire participations in the amount due under any Letter of Credit that
is drawn but not reimbursed by the Borrower pursuant to this Section 2.2(b)(vi) shall be absolute and unconditional and shall
not be affected by any circumstance whatsoever, including, without limitation, the occurrence and continuance of a Default or
Event of Default, and that each such payment shall be made without any offset, abatement, recoupment, counterclaim, withholding
or reduction whatsoever and whether or not the Revolving Credit Commitment shall have been reduced or terminated. Each Revolving
Lender shall comply with its obligation under this Section 2.2(b)(vi) by wire transfer of immediately available funds, in the
same manner as provided in Section 2.6 hereof with respect to Revolving Loans. Each Revolving Lender is hereby authorized to record
on its records such Revolving Lender’s pro rata share of the amounts paid and not reimbursed on the Letters of Credit.


 


(vii)Requests
for Letters of Credit When One or More Revolving Lenders are Affected Lenders. No Letter of Credit shall be requested or issued
hereunder if any Revolving Lender is at such time an Affected Lender hereunder, unless the Administrative Agent (and the Issuing
Lender) has entered into satisfactory (to the Administrative Agent) arrangements with the Borrower or such Affected Lender to
eliminate or mitigate the reimbursement risk with respect to such Affected Lender (including, without limitation, the posting
of cash collateral).


 


(viii)Letters
of Credit Issued and Outstanding When One or More Revolving Lenders are Affected Lenders. With respect to any Letters of Credit
that have been issued and are outstanding at the time any Revolving Lender is an Affected Lender, the Administrative Agent (and
the Issuing Lender) shall have the right to require that the Borrower or such Affected Lender cash collateralize, in form and
substance satisfactory to the Administrative Agent (and the Issuing Lender), such Letters of Credit so as to eliminate or mitigate
the reimbursement risk with respect to such Affected Lender.


 






    	 	39	 



     

    

 


(c)Swing Loans.


 


(i)Generally.
Subject to the terms and conditions of this Agreement, during the Commitment Period, the Swing Line Lender shall make a Swing
Loan or Swing Loans to the Borrower in such amount or amounts as the Borrower, through an Authorized Officer, may from time to
time request and to which the Swing Line Lender may agree; provided that the Borrower shall not request any Swing Loan if, after
giving effect thereto, (A) the Revolving Credit Exposure would exceed the Revolving Credit Commitment, or (B) the Swing Line Exposure
would exceed the Swing Line Commitment. Each Swing Loan shall be due and payable on the Swing Loan Maturity Date applicable thereto.
Each Swing Loan shall be made in Dollars.


 


(ii)Refunding
of Swing Loans. As often as the Administrative Agent, in its sole discretion, deems appropriate, but in no event later than
11:00 A.M. (Eastern time) on each Wednesday (or the next Business Day if such Wednesday is not a Business Day) (each a “Settlement
Date”), the Swing Line Lender shall require (and the Revolving Lenders and the Borrower agree that the Swing Line Lender
shall have the right to so require) that the then outstanding Swing Loans be refinanced as a Revolving Loan. Such Revolving Loan
shall be a Base Rate Loan unless otherwise requested by and available to the Borrower hereunder. Upon receipt of such notice by
the Borrower and the Revolving Lenders, the Borrower shall be deemed, on such day, to have requested a Revolving Loan in the principal
amount of the Swing Loan in accordance with Sections 2.2(a) and 2.6 hereof (other than the requirement set forth in Section 2.6(d)
hereof). Each Lender agrees to make a Revolving Loan on the date of such notice, subject to no conditions precedent whatsoever.
Such Revolving Loan shall be evidenced by the Revolving Credit Notes (or, if a Revolving Lender has not requested a Revolving
Credit Note, by the records of the Administrative Agent and such Revolving Lender). Each Lender acknowledges and agrees that such
Lender’s obligation to make a Revolving Loan pursuant to Section 2.2(a) hereof when required by this Section 2.2(c)(ii)
is absolute and unconditional and shall not be affected by any circumstance whatsoever, including, without limitation, the occurrence
and continuance of a Default or Event of Default, and that its payment to the Administrative Agent, for the account of the Swing
Line Lender, of the proceeds of such Revolving Loan shall be made without any offset, abatement, recoupment, counterclaim, withholding
or reduction whatsoever and whether or not the Revolving Credit Commitment shall have been reduced or terminated. The Borrower
irrevocably authorizes and instructs the Administrative Agent to apply the proceeds of any borrowing pursuant to this Section
2.2(c)(ii) to repay in full such Swing Loan. Each Revolving Lender is hereby authorized to record on its records relating to its
Revolving Credit Note (or, if such Revolving Lender has not requested a Revolving Credit Note, its records relating to Revolving
Loans) such Revolving Lender’s pro rata share of the amounts paid to refund such Swing Loan.


 






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(iii)Participation
in Swing Loans. If, for any reason, the Swing Line Lender is unable to or, in the opinion of the Administrative Agent, it
is impracticable to, convert any Swing Loan to a Revolving Loan pursuant to the preceding Section 2.2(c)(ii), then on any day
that a Swing Loan is outstanding (whether before or after the maturity thereof), the Administrative Agent shall have the right
to request that each Revolving Lender fund a participation in such Swing Loan, and the Administrative Agent shall promptly notify
each Revolving Lender thereof (by facsimile or email (in each case confirmed by telephone) or telephone (confirmed in writing)).
Upon such notice, but without further action, the Swing Line Lender hereby agrees to grant to each Revolving Lender, and each
Revolving Lender hereby agrees to acquire from the Swing Line Lender, an undivided participation interest in the right to share
in the payment of such Swing Loan in an amount equal to such Revolving Lender’s Applicable Commitment Percentage of the
principal amount of such Swing Loan. In consideration and in furtherance of the foregoing, each Revolving Lender hereby absolutely
and unconditionally agrees, upon receipt of notice as provided above, to pay to the Administrative Agent, for the benefit of the
Swing Line Lender, such Revolving Lender’s ratable share of such Swing Loan (determined in accordance with such Revolving
Lender’s Applicable Commitment Percentage). Each Revolving Lender acknowledges and agrees that its obligation to acquire
participations in Swing Loans pursuant to this Section 2.2(c)(iii) is absolute and unconditional and shall not be affected by
any circumstance whatsoever, including, without limitation, the occurrence and continuance of a Default or an Event of Default,
and that each such payment shall be made without any offset, abatement, recoupment, counterclaim, withholding or reduction whatsoever
and whether or not the Revolving Credit Commitment shall have been reduced or terminated. Each Revolving Lender shall comply with
its obligation under this Section 2.2(c)(iii) by wire transfer of immediately available funds, in the same manner as provided
in Section 2.6 hereof with respect to Revolving Loans to be made by such Revolving Lender.


 


(iv)Requests
for Swing Loan When One or More Revolving Lenders are Affected Lenders. No Swing Loan shall be requested or issued hereunder
if any Revolving Lender is at such time an Affected Lender hereunder, unless the Administrative Agent has entered into satisfactory
(to the Administrative Agent and the Swing Line Lender) arrangements with the Borrower or such Affected Lender to eliminate or
mitigate the reimbursement risk with respect to such Affected Lender (including, without limitation, the posting of cash collateral).


 


(v)Swing
Loans Outstanding When One or More Revolving Lenders are Affected Lenders. With respect to any Swing Loans that are outstanding
at the time any Revolving Lender is an Affected Lender, the Administrative Agent shall have the right to require that the Borrower
or such Affected Lender cash collateralize, in form and substance satisfactory to the Administrative Agent, such Swing Loans so
as to eliminate or mitigate the reimbursement risk with respect to such Affected Lender.




 


Section 2.3. Term Loan
Commitment. Subject to the terms and conditions of this Agreement, the Term Lenders shall make the Term Loan to the Borrower
on the Closing Date, in the amount of the Term Loan Commitment. The Term Loan shall be payable in consecutive monthly installments
of Five Hundred Twenty Thousand Eight Hundred Thirty-Three and 34/100 Dollars ($520,833.34) for each month, commencing April 1,
2016, and continuing on each Regularly Scheduled Payment Date thereafter, with the balance thereof payable in full on March 2,
2020. The Borrower shall notify the Administrative Agent, in accordance with the notice provisions of Section 2.6 hereof, whether
the Term Loan will be a Base Rate Loan or one or more Eurodollar Loans. The Term Loan may be a mixture of a Base Rate Loan and
one or more Eurodollar Loans. Once the Term Loan is made, any portion of the Term Loan repaid may not be re-borrowed. The Term
Loan Commitment shall terminate on the date that the Term Loan is made.


 






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Section 2.4. Interest.


 


(a)Revolving
Loans.


 


(i)Base
Rate Loan. The Borrower shall pay interest on the unpaid principal amount of a Revolving Loan that is a Base Rate Loan outstanding
from time to time from the date thereof until paid at the Derived Base Rate for Revolving Loans from time to time in effect. Interest
on such Base Rate Loan shall be payable, commencing April 1, 2016, and continuing on each Regularly Scheduled Payment Date thereafter
and at the maturity thereof.


 


(ii)Eurodollar
Loans. The Borrower shall pay interest on the unpaid principal amount of each Revolving Loan that is a Eurodollar Loan outstanding
from time to time, with the interest rate to be fixed in advance on the first day of the Interest Period applicable thereto through
the last day of the Interest Period applicable thereto (but subject to changes in the Applicable Margin for Eurodollar Loans),
at the Derived Eurodollar Rate for Revolving Loans. Interest on such Eurodollar Loan shall be payable on each Interest Adjustment
Date with respect to an Interest Period (provided that, if an Interest Period shall exceed three months, the interest must also
be paid every three months, commencing three months from the beginning of such Interest Period).


 


(b)Swing Loans.
The Borrower shall pay interest to the Administrative Agent, for the sole benefit of the Swing Line Lender (and any Revolving
Lender that shall have funded a participation in such Swing Loan), on the unpaid principal amount of each Swing Loan outstanding
from time to time from the date thereof until paid at the Derived Base Rate for Revolving Loans from time to time in effect. Interest
on Swing Loans shall be payable on each Regularly Scheduled Payment Date. Each Swing Loan shall bear interest for a minimum of
one day.


 


(c)Term Loan.


 


(i)Base
Rate Loan. With respect to any portion of the Term Loan that is a Base Rate Loan, the Borrower shall pay interest on the unpaid
principal amount thereof outstanding from time to time from the date thereof until paid, commencing April 1, 2016, and continuing
on each Regularly Scheduled Payment Date thereafter and at the maturity thereof, at the Derived Base Rate for the Term Loan from
time to time in effect.


 






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(ii)Eurodollar
Loans. With respect to any portion of the Term Loan that is a Eurodollar Loan, the Borrower shall pay interest on the unpaid
principal amount of such Eurodollar Loan outstanding from time to time, with the interest rate to be fixed in advance on the first
day of the Interest Period applicable thereto through the last day of the Interest Period applicable thereto (but subject to changes
in the Applicable Margin for Eurodollar Loans), at the Derived Eurodollar Rate for the Term Loan. Interest on such Eurodollar
Loan shall be payable on each Interest Adjustment Date with respect to an Interest Period (provided that, if an Interest Period
shall exceed three months, the interest must also be paid every three months, commencing three months from the beginning of such
Interest Period).


 


(d)Default
Rate. Anything herein to the contrary notwithstanding, if an Event of Default shall occur, upon the election of the Administrative
Agent or the Required Lenders (i) the principal of each Loan and the unpaid interest thereon shall bear interest, until paid,
at the Default Rate, (ii) the fee for the aggregate undrawn amount of all issued and outstanding Letters of Credit shall be increased
by two percent (2%) in excess of the rate otherwise applicable thereto, and (iii) in the case of any other amount not paid when
due from the Borrower hereunder or under any other Loan Document, such amount shall bear interest at the Default Rate; provided
that, during an Event of Default under Section 8.1 or 8.12 hereof, the applicable Default Rate shall apply without any election
or action on the part of the Administrative Agent or any Lender.


 


(e)Limitation
on Interest. In no event shall the rate of interest hereunder exceed the maximum rate allowable by law. Notwithstanding anything
to the contrary contained in any Loan Document, the interest paid or agreed to be paid under the Loan Documents shall not exceed
the maximum rate of non-usurious interest permitted by applicable law (the “Maximum Rate”). If the Administrative
Agent or any Lender shall receive interest in an amount that exceeds the Maximum Rate, the excess interest shall be applied to
the principal of the Loans or, if it exceeds such unpaid principal, refunded to the Borrower. In determining whether the interest
contracted for, charged, or received by the Administrative Agent or a Lender exceeds the Maximum Rate, such Person may, to the
extent permitted by applicable law, (i) characterize any payment that is not principal as an expense, fee, or premium rather than
interest, (ii) exclude voluntary prepayments and the effects thereof, and (iii) amortize, prorate, allocate, and spread in equal
or unequal parts the total amount of interest throughout the contemplated term of the Obligations.


 


Section 2.5. Evidence
of Indebtedness.


 


(a)Revolving
Loans. Upon the request of a Revolving Lender, to evidence the obligation of the Borrower to repay the portion of the Revolving
Loans made by such Revolving Lender and to pay interest thereon, the Borrower shall execute a Revolving Credit Note, payable to
the order of such Revolving Lender in the principal amount equal to its Applicable Commitment Percentage of the Revolving Credit
Commitment, or, if less, the aggregate unpaid principal amount of Revolving Loans made by such Revolving Lender; provided that
the failure of a Revolving Lender to request a Revolving Credit Note shall in no way detract from the Borrower’s obligations
to such Revolving Lender hereunder.


 


(b)Swing Loans.
Upon the request of the Swing Line Lender, to evidence the obligation of the Borrower to repay the Swing Loans and to pay interest
thereon, the Borrower shall execute a Swing Line Note, payable to the order of the Swing Line Lender in the principal amount of
the Swing Line Commitment, or, if less, the aggregate unpaid principal amount of Swing Loans made by the Swing Line Lender; provided
that the failure of the Swing Line Lender to request a Swing Line Note shall in no way detract from the Borrower’s obligations
to the Swing Line Lender hereunder.


 






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(c)Term Loan.
Upon the request of a Term Lender, to evidence the obligation of the Borrower to repay the portion of the Term Loan made by such
Term Lender and to pay interest thereon, the Borrower shall execute a Term Note, payable to the order of such Term Lender in the
principal amount of its Applicable Commitment Percentage of the Term Loan Commitment; provided that the failure of such Term Lender
to request a Term Note shall in no way detract from the Borrower’s obligations to such Term Lender hereunder.


 


Section 2.6. Notice
of Loans and Credit Events; Funding of Loans.


 


(a)Notice of
Loans and Credit Events. The Borrower, through an Authorized Officer, shall provide to the Administrative Agent a Notice of
Loan prior to (i) 11:00 A.M. (Eastern time) on the proposed date of borrowing of, or conversion of a Loan to, a Base Rate Loan,
(ii) 11:00 A.M. (Eastern time) three Business Days prior to the proposed date of borrowing of, continuation of, or conversion
of a Loan to, a Eurodollar Loan, and (iii) 2:00 P.M. (Eastern time) on the proposed date of borrowing of a Swing Loan (or such
later time as agreed to from time to time by the Swing Line Lender); provided that, if a request for a Revolving Loan that is
a Base Rate Loan shall not be on a Settlement Date, such request shall be deemed to be a request for a Swing Loan (unless the
Administrative Agent shall elect to have the Revolving Lenders fund such request with a Revolving Loan that meets the requirements
of this Section 2.6) so long as the Swing Line Exposure does not exceed the Swing Line Commitment. An Authorized Officer of the
Borrower may verbally request a Loan, so long as a Notice of Loan is received by the end of the same Business Day, and, if the
Administrative Agent or any Lender provides funds or initiates funding based upon such verbal request, the Borrower shall bear
the risk with respect to any information regarding such funding that is later determined to have been incorrect. The Borrower
shall comply with the notice provisions set forth in Section 2.2(b) hereof with respect to Letters of Credit.


 


(b)Funding
of Loans. The Administrative Agent shall notify the appropriate Lenders of the date, amount and Interest Period (if applicable)
promptly upon the receipt of a Notice of Loan (other than for a Swing Loan, or a Revolving Loan to be funded as a Swing Loan),
and, in any event, by 1:00 P.M. (Eastern time) on the date such Notice of Loan is received. On the date that the Credit Event
set forth in such Notice of Loan is to occur, each such Revolving Lender shall provide to the Administrative Agent, not later
than 3:00 P.M. (Eastern time), the amount in Dollars, in federal or other immediately available funds, required of it. If the
Administrative Agent shall elect to advance the proceeds of such Loan prior to receiving funds from such Revolving Lender, the
Administrative Agent shall have the right, upon prior notice to the Borrower, to debit any account of the Borrower or otherwise
receive such amount from the Borrower, promptly after demand, in the event that such Revolving Lender shall fail to reimburse
the Administrative Agent in accordance with this subsection (b). The Administrative Agent shall also have the right to receive
interest from such Revolving Lender at the Federal Funds Effective Rate in the event that such Revolving Lender shall fail to
provide its portion of the Loan on the date requested and the Administrative Agent shall elect to provide such funds.


 






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(c)Conversion
and Continuation of Loans.


 


(i)At
the request of the Borrower to the Administrative Agent, subject to the notice and other provisions of this Agreement, the appropriate
Lenders shall convert a Base Rate Loan to one or more Eurodollar Loans at any time and shall convert a Eurodollar Loan to a Base
Rate Loan on any Interest Adjustment Date applicable thereto. Swing Loans may be converted by the Swing Line Lender to Revolving
Loans in accordance with Section 2.2(c)(ii) hereof.


 


(ii)At
the request of the Borrower to the Administrative Agent, subject to the notice and other provisions of this Agreement, the appropriate
Lenders shall continue one or more Eurodollar Loans as of the end of the applicable Interest Period as a new Eurodollar Loan with
a new Interest Period.


 


(d)Minimum
Amount for Eurodollar Loans. Each request for a Eurodollar Loan shall be in an amount of not less than One Million Dollars
($1,000,000), increased by increments of Five Hundred Thousand Dollars ($500,000).


 


(e)Interest
Periods. The Borrower shall not request that Eurodollar Loans be outstanding for more than six different Interest Periods
at the same time.


 


(f)Advancing
of Non Pro-Rata Revolving Loans. Notwithstanding anything in this Agreement to the contrary, if the Borrower requests a Revolving
Loan pursuant to Section 2.6(a) hereof (and all conditions precedent set forth in Section 4.1 hereof are met) at a time when one
or more Revolving Lenders are Affected Lenders, the Administrative Agent shall have the option, in its sole discretion, to require
the non-Affected Lenders to honor such request by making a non pro-rata Revolving Loan to the Borrower in an amount equal to (i)
the amount requested by the Borrower, minus (ii) the portions of such Revolving Loan that should have been made by such Affected
Lenders. For purposes of such Revolving Loans, the Revolving Lenders that are making such Revolving Loan shall do so in an amount
equal to their Applicable Commitment Percentages of the amount requested by the Borrower. For the avoidance of doubt, in no event
shall the aggregate outstanding principal amount of Loans made by a Lender (other than Swing Loans made by the Swing Line Lender),
when combined with such Lender’s pro rata share, if any, of the Letter of Credit Exposure and the Swing Line Exposure, be
in excess of the Maximum Amount for such Lender.


 


Section 2.7. Payment
on Loans and Other Obligations.


 


(a)Payments
Generally. Each payment made hereunder by a Credit Party shall be made without any offset, abatement, recoupment, counterclaim,
withholding or reduction whatsoever.


 






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(b)Payments
from Borrower. All payments (including prepayments) to the Administrative Agent of the principal of or interest on each Loan
or other payment, including but not limited to principal, interest, fees or any other amount owed by the Borrower under this Agreement,
shall be made in Dollars. All payments described in this subsection (b) shall be remitted to the Administrative Agent, at the
address of the Administrative Agent for notices referred to in Section 11.4 hereof for the account of the appropriate Lenders
(or the Issuing Lender or the Swing Line Lender, as appropriate) not later than 11:00 A.M. (Eastern time) on the due date thereof
in immediately available funds. Any such payments received by the Administrative Agent (or the Issuing Lender or the Swing Line
Lender) after 11:00 A.M. (Eastern time) shall be deemed to have been made and received on the next Business Day.


 


(c)Payments
to Lenders. On each Settlement Date (and more frequently if deemed appropriate by the Administrative Agent), the Administrative
Agent shall distribute to each Lender its ratable share, if any, of the amount of principal payments received by the Administrative
Agent for the account of such Lender. With respect to interest, commitment fees and other payments received by the Administrative
Agent from the Borrower, the Administrative Agent shall promptly distribute to each Lender its ratable share, if any, of the amount
of interest, commitment fee or other payment received by the Administrative Agent for the account of such Lender. Payments received
by the Administrative Agent shall be delivered to the Lenders in immediately available funds. Each Lender shall record any principal,
interest or other payment, the principal amounts of Base Rate Loans, Eurodollar Loans Swing Loans and Letters of Credit, all prepayments
and the applicable dates, including Interest Periods, with respect to the Loans made, and payments received by such Lender, by
such method as such Lender may generally employ; provided that failure to make any such entry shall in no way detract from the
obligations of the Borrower under this Agreement or any Note. The aggregate unpaid amount of Loans, types of Loans, Interest Periods
and similar information with respect to the Loans and Letters of Credit set forth on the records of the Administrative Agent shall
be rebuttably presumptive evidence with respect to such information, including the amounts of principal, interest and fees owing
to each Lender.


 


(d)Timing of
Payments. Whenever any payment to be made hereunder, including, without limitation, any payment to be made on any Loan, shall
be stated to be due on a day that is not a Business Day, such payment shall be made on the next Business Day and such extension
of time shall in each case be included in the computation of the interest payable on such Loan; provided that, with respect to
a Eurodollar Loan, if the next Business Day shall fall in the succeeding calendar month, such payment shall be made on the preceding
Business Day and the relevant Interest Period shall be adjusted accordingly.


 


(e) Affected
Lender. To the extent that the Administrative Agent receives any payments or other amounts for the account of a Revolving
Lender that is an Affected Lender, at the discretion of the Administrative Agent, such Affected Lender shall be deemed to have
requested that the Administrative Agent use such payment or other amount (or any portion thereof, at the discretion of the Administrative
Agent) first, to cash collateralize its unfunded risk participation in Swing Loans and the Letters of Credit pursuant to Sections
2.2(b)(vi), 2.2(c)(iii) and 2.6(b) hereof, and, with respect to any Defaulting Lender, second, to fulfill its obligations to make
Loans.


 






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(f)Payment
of Non Pro-Rata Revolving Loans. Notwithstanding anything in this Agreement to the contrary, at the sole discretion of the
Administrative Agent, in order to pay Revolving Loans made to the Borrower that were not advanced pro rata by the Revolving Lenders,
any payment of any Loan may first be applied to such Revolving Loans that were not advanced pro rata.


 


Section 2.8. Prepayment.


 


(a)Right to
Prepay.


 


(i)The
Borrower shall have the right at any time or from time to time to prepay, on a pro rata basis for all of the appropriate Lenders
(except with respect to Swing Loans, which shall be paid to the Swing Line Lender and any Lender that has funded a participation
in such Swing Loan), all or any part of the principal amount of the Loans then outstanding representing the obligations under
any Specific Commitment with the proceeds of such prepayment to be distributed on a pro rata basis to the holders of the Specific
Commitment being prepaid. Such payment shall include interest accrued on the amount so prepaid to the date of such prepayment
and any amount payable under Article III hereof with respect to the amount being prepaid. Prepayments of Base Rate Loans shall
be without any premium or penalty. Each prepayment of the Term Loan shall be applied to the principal installments thereof in
the inverse order of their respective maturities.


 


(ii)The
Borrower shall have the right, at any time or from time to time, to prepay, for the benefit of the Swing Line Lender (and any
Revolving Lender that has funded a participation in such Swing Loan), all or any part of the principal amount of the Swing Loans
then outstanding, as designated by the Borrower, plus interest accrued on the amount so prepaid to the date of such prepayment.


 


(iii)Notwithstanding
anything in this Section 2.8 or otherwise to the contrary, at the discretion of the Administrative Agent, in order to prepay Revolving
Loans made to the Borrower that were not advanced pro rata by all of the Revolving Lenders, any prepayment of a Revolving Loan
shall first be applied to Revolving Loans made by the Revolving Lenders during any period in which a Defaulting Lender or Insolvent
Lender shall exist.


 


(b)Notice of
Prepayment. The Borrower shall give the Administrative Agent irrevocable written notice of prepayment of (i) a Base Rate Loan
or Swing Loan by no later than 11:00 A.M. (Eastern time) on the Business Day on which such prepayment is to be made, and (ii)
a Eurodollar Loan by no later than 1:00 P.M. (Eastern time) three Business Days before the Business Day on which such prepayment
is to be made; provided that this notice requirement shall not be applicable with respect to the daily application of funds in
the Cash Collateral Accounts to prepay the Revolving Loans. Swing Loans may be prepaid without advance notice if prepaid through
a “sweep” cash management arrangement with the Administrative Agent.


 






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(c)Minimum
Amount for Eurodollar Loans. Each prepayment of a Eurodollar Loan shall be in the principal amount of not less than the lesser
of One Million Dollars ($1,000,000), or the principal amount of such Loan, or, with respect to a Swing Loan, the principal balance
of such Swing Loan, except in the case of a mandatory payment pursuant to Section 2.11(c) or Article III hereof.


 


Section 2.9. Commitment
and Other Fees; Reduction of Revolving Credit Commitment.


 


(a)Commitment
Fee. The Borrower shall pay to the Administrative Agent, for the ratable account of the Revolving Lenders, as a consideration
for the Revolving Credit Commitment, a commitment fee from the Closing Date to and including the last day of the Commitment Period,
payable monthly, at a rate per annum equal to (i) twenty (20.00) basis points, multiplied by (ii) (A) the average daily Maximum
Revolving Amount in effect during such month, minus (B) the average daily Revolving Credit Exposure (exclusive of the Swing Line
Exposure) during such month. The commitment fee shall be payable in arrears, on April 1, 2016 and continuing on each Regularly
Scheduled Payment Date thereafter, and on the last day of the Commitment Period.


 


(b)Administrative
Agent Fee. The Borrower shall pay to the Administrative Agent, for its sole benefit, the fees set forth in the Administrative
Agent Fee Letter.


 


(c)Collateral
Audit and Appraisal Fees. The Borrower shall promptly reimburse the Administrative Agent, for its sole benefit, for all costs
and expenses relating to (i) collateral field audits, (ii) Inventory appraisals, and (iii) any other collateral assessment expenses
that may be conducted from time to time by or on behalf of the Administrative Agent, the scope and frequency of which shall be
in the reasonable discretion of the Administrative Agent; provided that, other than during the continuance of an Event of Default,
the Borrower need not reimburse the Administrative Agent for more than (A) two such audits and collateral assessments during a
calendar year, or, (B) if the Revolving Credit Availability for the most recently completed fiscal quarter of the Borrower is
equal to or less than an amount equal to twenty five percent (25%) multiplied by the Maximum Revolving Amount, three such audits
and collateral assessments during a calendar year. Notwithstanding the foregoing, and in addition thereto, the Borrower shall
also promptly reimburse the Administrative agent, for its sole benefit, for all costs and expenses related to (1) a desktop inventory
appraisal to be conducted every six months during the Commitment Period (or at such more frequent intervals as may be determined
by the Administrative Agent during the continuance of an Event of Default), and (2) full Inventory and brand / intellectual property
appraisals at such intervals as the Administrative Agent may determine, but in no event more often that once per every consecutive
twelve (12) month period (or at such more frequent intervals as may be determined by the Administrative Agent during the continuance
of an Event of Default).


 


(d)Authorization
to Debit Account. The Borrower hereby agrees that the Administrative Agent has the right to debit from any Deposit Account
of the Borrower or any other Credit Party, amounts owing to the Administrative Agent and the Lenders by the Borrower under this
Agreement and the Loan Documents for payment of fees, expenses and other amounts incurred or owing in connection therewith.


 






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(e)Optional
Reduction of Revolving Credit Commitment. The Borrower may at any time and from time to time permanently reduce in whole or
ratably in part the Maximum Revolving Amount to an amount not less than the then existing Revolving Credit Exposure, by giving
the Administrative Agent not fewer than five Business Days’ written notice of such reduction, provided that any such partial
reduction shall be in an aggregate amount, for all of the Lenders, of not less than Five Million Dollars ($5,000,000), increased
in increments of One Million Dollars ($1,000,000). The Administrative Agent shall promptly notify each Revolving Lender of the
date of each such reduction and such Revolving Lender’s proportionate share thereof. After each such partial reduction,
the commitment fees payable hereunder shall be calculated upon the Maximum Revolving Amount as so reduced. If the Borrower reduces
in whole the Revolving Credit Commitment, on the effective date of such reduction (the Borrower having prepaid in full the unpaid
principal balance, if any, of the Revolving Loans, together with all interest (if any) and commitment and other fees accrued and
unpaid with respect thereto, and provided that no Letter of Credit Exposure or Swing Line Exposure shall exist), all of the Revolving
Credit Notes shall be delivered to the Administrative Agent marked “Canceled” and the Administrative Agent shall redeliver
such Revolving Credit Notes to the Borrower. Any partial reduction in the Maximum Revolving Amount shall be effective during the
remainder of the Commitment Period. Upon each decrease of the Maximum Revolving Amount, the Total Commitment Amount shall be decreased
by the same amount.


 


Section 2.10. Computation
of Interest and Fees. Interest on Loans, Letter of Credit fees, Related Expenses, and commitment and other fees and charges
hereunder shall be computed on the basis of a year having three hundred sixty (360) days and calculated for the actual number
of days elapsed.


 


Section 2.11. Mandatory
Payments.


 


(a)Revolving
Credit Exposure. If, at any time, the Revolving Credit Exposure shall exceed the Revolving Credit Commitment, the Borrower
shall, no later than the same Business Day, pay an aggregate principal amount of the Revolving Loans sufficient to bring the Revolving
Credit Exposure within the Revolving Credit Commitment.


 


(b)Swing Line
Exposure. If, at any time, the Swing Line Exposure shall exceed the Swing Line Commitment, the Borrower shall, as promptly
as practicable, but in no event later than the same Business Day, pay an aggregate principal amount of the Swing Loans sufficient
to bring the Swing Line Exposure within the Swing Line Commitment.


 


(c)Mandatory
Prepayments. The Borrower shall, until the Term Loan is paid in full, make Mandatory Prepayments (each a “Mandatory
Prepayment”) in accordance with the following provisions:


 


(i)Excess
Cash Flow. The Borrower shall:


 


(A) with respect
to the fiscal year of the Borrower ending December 31, 2016, by no later than June 30, 2017, make a prepayment on the Term Loan
in an amount not less than twenty-five percent (25%) of the total of (1) the Excess Cash Flow for the 2016 fiscal year, if any,
minus (2) the aggregate amount of Mophie Earn-Out Payments paid in cash prior to June 30, 2017; and


 






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(B)commencing
with the fiscal year of the Borrower ending December 31, 2017, within fifteen (15) days after the date the Borrower has delivered
(or should have delivered) its annual audit report pursuant to Section 5.3(c) hereof, make a prepayment on the Term Loan in an
amount not less than twenty-five percent (25%) of the Excess Cash Flow for the most recently completed fiscal year, if any.


 


Notwithstanding the foregoing, if,
after giving pro forma effect to any required Excess Cash Flow payment, such payment would result in the Revolving Credit Availability
being less than the ECF Threshold, then the Borrower may elect, upon three days’ prior written notice to the Administrative
Agent, to pay the portion of the required Excess Cash Flow payment such that, after making such payment, the Revolving Credit
Availability is equal to the ECF Threshold; provided that, after the making of such payment, any remaining balance of such required
Excess Cash Flow payment (the “ECF Shortfall Amount”) shall be paid by the Borrower by no later than December 31 of
such year (it being understood that the payment of the ECF Shortfall Amount may not be further deferred or delayed).


 


(ii)Certain
Proceeds of Asset Sales. Upon the sale or other disposition of any assets (except for any Excluded Asset) by a Company (permitted
pursuant to Section 5.12 hereof) to any Person other than in the ordinary course of business (each, an “Asset Sale”),
and, to the extent the Cash Proceeds of such Asset Sale are in excess of Two Hundred Thousand Dollars ($200,000) during any fiscal
year of the Borrower and are not to be reinvested in fixed assets or other similar assets within one hundred eighty (180) days
of such Asset Sale, the Borrower shall make a Mandatory Prepayment, not later than the third Business Day following the date of
receipt of Cash Proceeds from such Asset Sale in excess of Two Hundred Thousand Dollars ($200,000), an amount equal to one hundred
percent (100%) of the Net Cash Proceeds of such Asset Sale.


 


(iii)Certain
Proceeds of a Material Recovery Event. Within ten days after the occurrence of a Material Recovery Event, the Borrower shall
furnish to the Administrative Agent written notice thereof. Within thirty (30) days after such Material Recovery Event, the Borrower
shall notify the Administrative Agent of the Borrower’s determination as to whether or not to replace, rebuild or restore
the affected property (a “Material Recovery Determination Notice”). If the Borrower decides not to replace, rebuild
or restore such property, or if the Borrower has not delivered the Material Recovery Determination Notice within thirty (30) days
after such Material Recovery Event, then, not later than the third Business Day following the date of receipt of any Cash Proceeds
in respect thereof (excluding proceeds of business interruption insurance) the Borrower shall make a Mandatory Prepayment equal
to 100% of the Net Cash Proceeds then received from such Material Recovery Event. If the Borrower decides to replace, rebuild
or restore such property, then any such replacement, rebuilding or restoration must be (A) commenced within six months of the
date of the Material Recovery Event, and (B) substantially completed within twelve (12) months of such commencement date or such
longer period of time necessary to complete the work with reasonable diligence and approved in writing by the Administrative Agent,
in its reasonable discretion, with such Net Cash Proceeds available to the appropriate Companies for replacement, rebuilding or
restoration of such property. Any amounts not so applied to the costs of replacement or restoration shall be applied as a Mandatory
Prepayment.


 






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(iv)Certain
Proceeds of Indebtedness. If, at any time, any of the Companies shall issue or incur Indebtedness other than Indebtedness
permitted pursuant to Section 5.8 hereof (which other Indebtedness shall not be incurred without the prior written consent of
the Administrative Agent and the Required Lenders), the Borrower shall make a Mandatory Prepayment in an amount equal to one hundred
percent (100%) of the Net Cash Proceeds of such Indebtedness not later than the second Business Day following the receipt of such
Cash Proceeds.


 


(v)Certain
Proceeds of Equity Offerings. Within thirty (30) days after any equity offering (other than the offering or exercise of stock
options or other equity awards pursuant to management incentive plans or to finance an Acquisition permitted under Section 5.13
hereof) by the Borrower (each, an “Equity Offering”), the Borrower shall make a Mandatory Prepayment in an amount
equal to fifty percent (50%) of the Net Cash Proceeds of such Equity Offering not later than the second Business Day following
the receipt of such Cash Proceeds.


 


(d)Application
of Mandatory Prepayments.


 


(i)Involving
a Company Prior to an Event of Default. So long as no Event of Default shall have occurred, each Mandatory Prepayment required
to be made pursuant to subsection (c) hereof shall be applied (A) first, to the Term Loan, until paid in full (provided that any
Term Loan Lender may decline to accept its pro rata share of such Mandatory Prepayment, in which case such Term Loan Lender’s
share of such Mandatory Prepayment shall be applied as set forth in subpart (B) hereof), and (B) second, to any outstanding Revolving
Loans.


 


(ii)Involving
a Company After an Event of Default. If a Mandatory Prepayment is required to be made pursuant to subsection (c) hereof at
the time that an Event of Default shall have occurred, then such Mandatory Prepayment shall be paid by the Borrower to the Administrative
Agent to be applied to the following, on a pro rata basis among: (A) the Maximum Revolving Amount (with payments to be made in
the following order: Revolving Loans, Swing Loans, and to be held by the Administrative Agent in a special account as security
for any Letter of Credit Exposure pursuant to subsection (iii) hereof), and (B) the unpaid principal balance of the Term Loan


 






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(iii)Involving
Letters of Credit. Any amounts to be distributed for application to a Revolving Lender’s liabilities with respect to
any Letter of Credit Exposure as a result of a Mandatory Prepayment shall be held by the Administrative Agent in an interest bearing
trust account (the “Special Trust Account”) as collateral security for such liabilities until a drawing on any Letter
of Credit, at which time such amounts, together with interest accrued thereon, shall be released by the Administrative Agent and
applied to such liabilities. If any such Letter of Credit shall expire without having been drawn upon in full, the amounts held
in the Special Trust Account with respect to the undrawn portion of such Letter of Credit, together with interest accrued thereon,
shall be applied by the Administrative Agent in accordance with the provisions of subsections (i) and (ii) above.


 


(e)Mandatory
Payments Generally. Unless otherwise designated by the Borrower, each Mandatory Prepayment made with respect to a Specific
Commitment pursuant to subsection (a) or (c) hereof shall be applied in the following order: (i) first, to the outstanding Base
Rate Loans, and (ii) second, to the outstanding Eurodollar Loans, provided that, in each case, if the outstanding principal amount
of any Eurodollar Loan shall be reduced to an amount less than the minimum amount set forth in Section 2.6(d) hereof as a result
of such prepayment, then such Eurodollar Loan shall be converted into a Base Rate Loan on the date of such prepayment. Any prepayment
of a Eurodollar Loan or Swing Loan pursuant to this Section 2.11 shall be subject to the prepayment provisions set forth in Article
III hereof. Each Mandatory Prepayment made with respect to the Term Loan shall be applied to the payments of principal in the
inverse order of their respective maturities.


 


Section 2.12. Swap
Obligations Make-Well Provision. The Borrower, to the extent that it is an “eligible contract participant” as
defined in the Commodity Exchange Act, hereby absolutely, unconditionally and irrevocably undertakes to provide such funds or
other support as may be needed from time to time by each other Credit Party in order for such Credit Party to honor its obligations
under the Loan Documents in respect of the Swap Obligations. The obligations of the Borrower under this Section 2.12 shall remain
in full force and effect until all Secured Obligations are paid in full. The Borrower intends that this Section 2.12 constitute,
and this Section 2.12 shall be deemed to constitute, a “keepwell, support, or other agreement” for the benefit of
each other Credit Party for all purposes of Section 1a(18)(A)(v)(II) of the Commodity Exchange Act.


 


Section 2.13. Establishment
of Reserves. The Administrative Agent, on behalf of the Lenders, shall have the right, from time to time, in the good faith
exercise of its reasonable credit judgment (consistent with the asset-based nature of this credit), to establish Reserves in such
amounts and with respect to such matters as the Administrative Agent deems necessary or appropriate, and to increase or decrease
such Reserves. In exercising such reasonable credit judgment, the Administrative Agent may take into account factors that (a)
will or could reasonably be expected to adversely affect the value of any collateral securing the Secured Obligations, the enforceability
or priority of the Liens of the Administrative Agent or the amount that the Administrative Agent, for the benefit of the Lenders,
would be likely to receive in the liquidation of such collateral, or (b) may demonstrate that any collateral report or financial
information concerning the Credit Parties is incomplete, inaccurate or misleading in any material respect. In exercising such
reasonable credit judgment, Reserves may be established against anticipated obligations, contingencies or conditions affecting
the Companies, including, without limitation, (i) tax liabilities and other obligations owing to Governmental Authorities, (ii)
asserted litigation liabilities, (iii) anticipated remediation for compliance with Environmental Laws, (iv) obligations owing
to any lessor of real property, any warehouseman, any processor or any mortgagor on third party mortgaged sites, (v) obligations
or liabilities of the Companies under Hedge Agreements, (vi) Bank Product Obligations, (vii) customs and broker fees (including
freight and duty fees), (viii) warranty liabilities, and (ix) accounts payable with balances over sixty (60) days past due. Reserves
may also be established with respect to the dilution of accounts receivable, as a result of inventory appraisals and other results
of field examinations.


 






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Section 2.14. Record
of Advances; Application of Collections.


 


(a)Maintenance
of Record of Advances. The Administrative Agent, on behalf of the Lenders, shall maintain records in respect of the Credit
Parties that shall reflect (i) the aggregate outstanding principal amount of Revolving Loans and accrued interest, (ii) the unreimbursed
Letter of Credit drawings, (iii) the aggregate outstanding principal amount of Swing Loans and accrued interest, and (iv) all
other Obligations that shall have become payable hereunder (the “Advance Record”). Each entry by the Administrative
Agent in the Advance Record shall be, to the extent permitted by applicable law and absent manifest error, prima facie evidence
of the data entered. Such entries by the Administrative Agent shall not be a condition to the Borrower’s obligation to repay
the Obligations.


 


(b)Charges,
Credits and Reports. The Borrower hereby authorizes the Administrative Agent, on behalf of the Lenders, to charge the Advance
Record with all Revolving Loans, Swing Loans and all other Obligations under this Agreement or any other Loan Document. The Advance
Record will be credited in accordance with the provisions of this Agreement with all payments received by the Administrative Agent
directly from the Borrower or any other Credit Party or otherwise for the account of the Borrower or any other Credit Party pursuant
to this Agreement. The Administrative Agent shall send the Borrower monthly statements in accordance with the Administrative Agent’s
standard procedures. Any and all such periodic or other statements or reconciliations of the Advance Record shall be final, binding
and conclusive upon the Borrower and the other Credit Parties in all respects, absent manifest error, unless the Administrative
Agent receives specific written objection thereto from the Borrower within thirty (30) Business Days after such statements or
reconciliation shall have been sent to the Borrower.


 


(c)Application
of Specific Payments. Except for the crediting to the Advance Record of Collections deposited to the Cash Collateral Account
as provided below, the Borrower shall make all other payments to be made by the Borrower under this Agreement with respect to
the Obligations not later than 2:00 P.M. (Eastern time) on the day when due, without setoff, counterclaim, defense or deduction
of any kind. Payments received after 2:00 P.M. (Eastern time) shall be deemed to have been received on the next Business Day.
Prior to the occurrence of an Event of Default, the Borrower may specify to the Administrative Agent the Obligations to which
such payment is to be applied. If the Borrower does not specify an application for such payment or if an Event of Default has
occurred, the Administrative Agent shall apply such payment in its discretion.


 






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(d)Crediting
of Collections. For the purpose of calculating interest on the Obligations and determining the aggregate amount of Loans outstanding,
the amount of the Revolving Credit Exposure and the availability for additional Revolving Loans and Letters of Credit, all Collections
deposited into the Cash Collateral Account shall be credited to the account of the Borrower or the other Credit Parties, as appropriate
(as reflected in the Advance Record) on the next Business Day after the Business Day on which the Administrative Agent has received
notice of the deposit of the proceeds of such Collections into the Cash Collateral Account (including automated clearinghouse
and federal wire transfers); provided that, immediately available funds shall be applied on the same Business Day. Such Collections
shall be credited as follows: (i) first, to any costs and expenses due under this Agreement, (ii) second, to any fees due and
payable under this Agreement, (iii) third, to Swing Loans, (iv) fourth, to Base Rate Loans, and (v) fifth, to Eurodollar Loans.
If such Collections made on a date other than a Settlement Date are in excess of the aggregate amount of Swing Loans outstanding,
then such Collections may, in the discretion of the Administrative Agent depending on the amount of such payment, be credited
towards the Swing Line Lender’s pro rata share of Revolving Loans outstanding until such payments can be reallocated among
the Revolving Lenders on the next Settlement Date. From time to time, upon advance written notice to the Borrower, the Administrative
Agent may adopt such additional or modified regulations and procedures as the Administrative Agent may deem reasonable and appropriate
with respect to the operation of the Cash Collateral Account and not substantially inconsistent with the terms of this Agreement.


 


(e)Application
of Deposits in Cash Collateral Account. Deposits of Collections to the Cash Collateral Account shall be credited to the Advance
Record of the Borrower on a daily basis in accordance with subsection (d) above, and thereby reduce the Swing Line Exposure or
the Revolving Credit Exposure (other than in respect of the undrawn amount of any Letter of Credit outstanding) as the Administrative
Agent may choose, in its sole discretion; provided that, prior to the occurrence of an Event of Default, the Administrative Agent
will use reasonable efforts to avoid applications of payments that would cause prepayment of a Eurodollar Loan prior to the expiration
of the applicable Interest Period. Upon payment in full of the Secured Obligations and the termination of the Commitment, deposits
of Collections to the Cash Collateral Account shall be credited by the Administrative Agent as directed by the Borrower.


 






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Section 2.15. Protective
Advances. The Administrative Agent may, in its reasonable discretion, make Protective Advances without the consent of the
Lenders, so long as after giving effect to such Protective Advances, the aggregate amount of outstanding Protective Advances shall
not exceed ten percent (10%) of the Total Commitment Amount. A Protective Advance is for the account of the Borrower and shall
constitute Obligations. Any such Protective Advances incurred after the occurrence and during the continuance of an Event of Default
shall be deemed to have been made in connection with the exercise of remedies by the Administrative Agent and shall have the priority
set forth in Section 9.8 hereof as expenses of the Administrative Agent incurred in connection with the exercise of remedies under
this Agreement or the other Loan Documents. To the extent the Administrative Agent makes Protective Advances, the Borrower hereby
agrees to promptly reimburse the Administrative Agent, on demand, for all such Protective Advances. The advance of any such Protective
Advances on any one occasion shall not obligate the Administrative Agent to advance any Protective Advances on any other occasion
and nothing in this Section 2.15 shall be construed as excusing any Company from the performance of any covenant or other agreement
of such Company with respect to any of the foregoing matters as set forth in this Agreement or in any of the other Loan Documents.
The Revolving Lenders shall reimburse the Administrative Agent for any Protective Advances to the extent that the Administrative
Agent does not receive reimbursement pursuant to any other provision of this Agreement, and, at the sole option of the Administrative
Agent, the Administrative Agent may reimburse itself for Protective Advances through the making of a Swing Loan or by requesting
that the Revolving Lenders fund a Revolving Loan, subject to no conditions precedent whatsoever (but, for clarification, subject
to the first sentence hereof) other than notice to the Revolving Lenders in accordance with Section 2.6(a) hereof. The Required
Lenders may at any time revoke the Administrative Agent’s authorization to make Protective Advances by delivering written
notice of such revocation to the Administrative Agent.


 


Section 2.16. Addition
of Borrowing Base Company. At the request of the Borrower and at the sole discretion of the Administrative Agent, a Domestic
Subsidiary may become a Borrowing Base Company hereunder, provided that, in addition to the Administrative Agent’s consent,
(a) such Domestic Subsidiary shall have complied with all requirements of Section 5.20 hereof, (b) the assets of such Domestic
Subsidiary shall have been appraised and otherwise evaluated for borrowing base eligibility purposes in a manner and by appraisers
satisfactory to the Administrative Agent, the results of which shall be satisfactory to the Administrative Agent, and (c) such
Domestic Subsidiary shall have provided to the Administrative Agent such corporate governance and authorization documents and
an opinion of counsel and any other documents and items as may be deemed necessary or advisable by the Administrative Agent, all
of the foregoing to be in form and substance satisfactory to the Administrative Agent. 


 


ARTICLE
III. ADDITIONAL PROVISIONS RELATING TO


EURODOLLAR LOANS; INCREASED CAPITAL; TAXES


 


Section 3.1. Requirements of Law.


 


(a)If, after the
Closing Date, (i) the adoption of or any change in any Requirement of Law or in the interpretation or application thereof by a
Governmental Authority, or (ii) the compliance by any Lender with any request or directive (whether or not having the force
of law) from any central bank or other Governmental Authority:


 


(A)shall
subject any Lender to any tax of any kind whatsoever with respect to this Agreement, any Letter of Credit or any Eurodollar Loan
made by it, or change the basis of taxation of payments to such Lender in respect thereof (except for Taxes and Excluded Taxes
which are governed by Section 3.2 hereof);


 


(B)shall
impose, modify or hold applicable any reserve, special deposit, insurance charge, compulsory loan or similar requirement against
assets held by, deposits or other liabilities in or for the account of, advances, loans or other extensions of credit by, or any
other acquisition of funds by, any office of such Lender that is not otherwise included in the determination of the Eurodollar
Rate; or


 






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(C)shall
impose on such Lender any other condition;


 


and the result of any of the foregoing is
to increase the cost to such Lender of making, converting into, continuing or maintaining Eurodollar Loans or issuing or participating
in Letters of Credit, or to reduce any amount receivable hereunder in respect thereof, then, in any such case, the Borrower shall
pay to such Lender, promptly after receipt of a written request therefor, any additional amounts necessary to compensate such
Lender for such increased cost or reduced amount receivable. If any Lender becomes entitled to claim any additional amounts pursuant
to this subsection (a), such Lender shall promptly notify the Borrower (with a copy to the Administrative Agent) of the event
with reasonable detail by reason of which it has become so entitled.


 


(b)If any Lender
shall have determined that, after the Closing Date, the adoption of or any change in any Requirement of Law regarding capital
adequacy or liquidity, or liquidity requirements, or in the interpretation or application thereof by a Governmental Authority
or compliance by such Lender or any corporation controlling such Lender with any request or directive regarding capital adequacy
or liquidity (whether or not having the force of law) from any Governmental Authority shall have the effect of reducing the rate
of return on such Lender’s or such corporation’s capital as a consequence of its obligations hereunder, or under or
in respect of any Letter of Credit, to a level below that which such Lender or such corporation could have achieved but for such
adoption, change or compliance (taking into consideration the policies of such Lender or such corporation with respect to capital
adequacy and liquidity), then from time to time, upon submission by such Lender to the Borrower (with a copy to the Administrative
Agent) of a written request therefor (which shall include the method for calculating such amount and reasonable detail with respect
to such calculation), the Borrower shall promptly pay or cause to be paid to such Lender such additional amount or amounts as
will compensate such Lender or such corporation for such reduction.


 


(c)For purposes
of this Section 3.1 and Section 3.4(a) hereof, the Dodd-Frank Act, any requests, rules, guidelines or directives concerning capital
adequacy promulgated by the Bank for International Settlements, or the Basel Committee on Banking Regulations and Supervisory
Practices (or any successor or similar authority) under Basel III, and any rules, regulations, orders, requests, guidelines and
directives adopted, promulgated or implemented in connection with any of the foregoing, regardless of the date adopted, issued,
promulgated or implemented, are deemed to have been introduced and adopted after the Closing Date.


 


(d)A certificate
as to any additional amounts payable pursuant to this Section 3.1 submitted by any Lender to the Borrower (with a copy to the
Administrative Agent) shall be conclusive absent manifest error. In determining any such additional amounts, such Lender may use
any method of averaging and attribution that it (in its sole discretion) shall deem applicable. The obligations of the Borrower
pursuant to this Section 3.1 shall survive the termination of this Agreement and the payment of the Loans and all other amounts
payable hereunder.


 






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Section 3.2. Taxes.


 


(a)All payments
made by any Credit Party under any Loan Document shall be made free and clear of, and without deduction or withholding for or
on account of, any Taxes or Other Taxes. If any Taxes or Other Taxes are required to be deducted or withheld from any amounts
payable to the Administrative Agent or any Lender hereunder, the amounts so payable to the Administrative Agent or such Lender
shall be increased to the extent necessary to yield to the Administrative Agent or such Lender (after deducting, withholding and
payment of all Taxes and Other Taxes) interest or any such other amounts payable hereunder at the rates or in the amounts specified
in the Loan Documents.


 


(b)Whenever any
Taxes or Other Taxes are required to be withheld and paid by a Credit Party, such Credit Party shall timely withhold and pay such
taxes to the relevant Governmental Authorities. As promptly as possible thereafter, the Borrower shall send to the Administrative
Agent for its own account or for the account of the relevant Lender, as the case may be, a certified copy of an original official
receipt received by such Credit Party showing payment thereof or other evidence of payment reasonably acceptable to the Administrative
Agent or such Lender. If such Credit Party shall fail to pay any Taxes or Other Taxes when due to the appropriate Governmental
Authority or fails to remit to the Administrative Agent the required receipts or other required documentary evidence, such Credit
Party and the Borrower shall indemnify the Administrative Agent and the appropriate Lenders on demand for any incremental Taxes
or Other Taxes paid or payable by the Administrative Agent or such Lender as a result of any such failure.


 


(c)Each Lender
that is not (i) a citizen or resident of the United States, (ii) a corporation, partnership or other entity created or organized
in or under the laws of the United States (or any jurisdiction thereof), or (iii) an estate or trust that is subject to federal
income taxation regardless of the source of its income (any such Person, a “Non-U.S. Lender”) shall deliver to the
Borrower and the Administrative Agent two copies of either U.S. Internal Revenue Service Form W-8BEN-E, Form W-8IMY or Form W-8ECI,
or, in the case of a Non-U.S. Lender claiming exemption from U.S. federal withholding tax under Section 871(h) or 881(c) of the
Code with respect to payments of “portfolio interest”, a statement with respect to such interest and two copies of
a Form W-8BEN-E, or any subsequent versions thereof or successors thereto, properly completed and duly executed by such Non-U.S.
Lender claiming complete exemption from, or a reduced rate of, U.S. federal withholding tax on all payments by Credit Parties
under this Agreement and the other Loan Documents. Such forms shall be delivered by each Non-U.S. Lender on or before the date
it becomes a party to this Agreement or such other Loan Document. In addition, each Non-U.S. Lender shall deliver such forms or
appropriate replacements promptly upon the obsolescence or invalidity of any form previously delivered by such Non-U.S. Lender.
Each Non-U.S. Lender shall promptly notify the Borrower at any time it determines that such Lender is no longer in a position
to provide any previously delivered certificate to the Borrower (or any other form of certification adopted by the U.S. taxing
authorities for such purpose). Notwithstanding any other provision of this subsection (c), a Non-U.S. Lender shall not be required
to deliver any form pursuant to this subsection (c) that such Non-U.S. Lender is not legally able to deliver.


 


(d)The agreements
in this Section 3.2 shall survive the termination of the Loan Documents and the payment of the Loans and all other amounts payable
hereunder.


 






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Section 3.3. Funding
Losses. The Borrower agrees to indemnify each Lender, promptly after receipt of a written request therefor, and to hold each
Lender harmless from, any loss or expense that such Lender may sustain or incur as a consequence of (a) failure by the Borrower
to make a borrowing of, conversion into or continuation of Eurodollar Loans after the Borrower has given a notice (including a
written or verbal notice that is subsequently revoked) requesting the same in accordance with the provisions of this Agreement,
(b) failure by the Borrower to make any prepayment of or conversion from Eurodollar Loans after the Borrower has given a notice
(including a written or verbal notice that is subsequently revoked) thereof in accordance with the provisions of this Agreement,
(c) the making of a prepayment of a Eurodollar Loan on a day that is not the last day of an Interest Period applicable thereto,
(d) any conversion of a Eurodollar Loan to a Base Rate Loan on a day that is not the last day of an Interest Period applicable
thereto, or (e) any compulsory assignment of such Lender’s interests, rights and obligations under this Agreement pursuant
to Section 11.3(c) or 11.13 hereof. Such indemnification shall be in an amount equal to the excess, if any, of (i) the amount
of interest that would have accrued on the amounts so prepaid, or not so borrowed, converted or continued, for the period from
the date of such prepayment or of such failure to borrow, convert or continue to the last day of such Interest Period (or, in
the case of a failure to borrow, convert or continue, the Interest Period that would have commenced on the date of such failure)
in each case at the applicable rate of interest for such Loans provided for herein over (ii) the amount of interest (as reasonably
determined by such Lender) that would have accrued to such Lender on such amount by placing such amount on deposit for a comparable
period with leading banks in the appropriate London interbank market, along with any administration fee charged by such Lender.
A certificate as to any amounts payable pursuant to this Section 3.3 submitted to the Borrower (with a copy to the Administrative
Agent) by any Lender, together with a reasonably detailed calculation and description of such amounts, shall be conclusive absent
manifest error. The obligations of the Borrower pursuant to this Section 3.3 shall survive the termination of this Agreement and
the payment of the Loans and all other amounts payable hereunder.


 


Section 3.4. Eurodollar
Rate Lending Unlawful; Inability to Determine Rate.


 


(a)If any Lender
shall determine (which determination shall, upon notice thereof to the Borrower and the Administrative Agent, be conclusive and
binding on the Borrower) that, after the Closing Date, (i) the introduction of or any change in or in the interpretation of any
law makes it unlawful, or (ii) any Governmental Authority asserts that it is unlawful, for such Lender to make or continue any
Loan as, or to convert (if permitted pursuant to this Agreement) any Loan into, a Eurodollar Loan, the obligations of such Lender
to make, continue or convert into any such Eurodollar Loan shall, upon such determination, be suspended until such Lender shall
notify the Administrative Agent that the circumstances causing such suspension no longer exist, and all outstanding Eurodollar
Loans payable to such Lender shall automatically convert (if conversion is permitted under this Agreement) into a Base Rate Loan,
or be repaid (if no conversion is permitted) at the end of the then current Interest Periods with respect thereto or sooner, if
required by law or such assertion.


 






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(b)If the Administrative
Agent or the Required Lenders determine that for any reason adequate and reasonable means do not exist for determining the Eurodollar
Rate for any requested Interest Period with respect to a proposed Eurodollar Loan, or that the Eurodollar Rate for any requested
Interest Period with respect to a proposed Eurodollar Loan does not adequately and fairly reflect the cost to the Lenders of funding
such Loan, the Administrative Agent will promptly so notify the Borrower and each Lender. Thereafter, the obligation of the Lenders
to make or maintain such Eurodollar Loan shall be suspended until the Administrative Agent (upon the instruction of the Required
Lenders) revokes such notice. Upon receipt of such notice, the Borrower may revoke any pending request for a borrowing of, conversion
to or continuation of such Eurodollar Loan or, failing that, will be deemed to have converted such request into a request for
a borrowing of a Base Rate Loan in the amount specified therein.


 


Section 3.5. Discretion
of Lenders as to Manner of Funding. Notwithstanding any provision of this Agreement to the contrary, each Lender shall be
entitled to fund and maintain its funding of all or any part of such Lender’s Loans in any manner such Lender deems to be
appropriate; it being understood, however, that for the purposes of this Agreement all determinations hereunder shall be made
as if such Lender had actually funded and maintained each Eurodollar Loan during the applicable Interest Period for such Loan
through the purchase of deposits having a maturity corresponding to such Interest Period and bearing an interest rate equal to
the Eurodollar Rate for such Interest Period. 


 


ARTICLE IV. CONDITIONS PRECEDENT


 


Section 4.1. Conditions
to Each Credit Event. The obligation of the Lenders, the Issuing Lender and the Swing Line Lender to participate in any Credit
Event shall be conditioned, in the case of each Credit Event, upon the following:


 


(a)all conditions
precedent as listed in Section 4.2 hereof required to be satisfied prior to the first Credit Event shall have been satisfied prior
to or as of the first Credit Event;


 


(b)the Borrower
shall have submitted a Notice of Loan (or with respect to a Letter of Credit, complied with the provisions of Section 2.2(b)(ii)
hereof) and otherwise complied with Section 2.6 hereof;


 


(c)no Default
or Event of Default shall then exist or immediately after such Credit Event would exist; and


 


(d)each of the
representations and warranties contained in Article VI hereof shall be true in all material respects (or in all respects in the
case of any representation or warranty qualified by materiality or Material Adverse Effect) as if made on and as of the date of
such Credit Event, except to the extent that any thereof expressly relate to an earlier date, in which case such representation
and warranty shall be true and correct in all material respects (or in all respects in the case of any representation or warranty
qualified by materiality or Material Adverse Effect) as of such earlier date.


 






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Each request by the Borrower for a Credit
Event shall be deemed to be a representation and warranty by the Borrower as of the date of such request as to the satisfaction
of the conditions precedent specified in subsections (c) and (d) above.


 


Section 4.2. Conditions
to the First Credit Event. The Borrower shall cause the following conditions to be satisfied on or prior to the Closing Date.
The obligation of the Lenders, the Issuing Lender and the Swing Line Lender to participate in the first Credit Event is subject
to the Borrower satisfying each of the following conditions prior to or concurrently with such Credit Event:


 


(a)Notes as
Requested. The Borrower shall have executed and delivered to (i) each Revolving Lender requesting a Revolving Credit Note
such Revolving Lender’s Revolving Credit Note, (ii) each Term Lender requesting a Term Note such Term Lender’s Term
Note, and (iii) the Swing Line Lender the Swing Line Note, if requested by the Swing Line Lender.


 


(b)Subsidiary
Documents. Each Guarantor of Payment shall have executed and delivered to the Administrative Agent (i) a Guaranty of Payment,
in form and substance satisfactory to the Administrative Agent, and (ii) a Security Agreement and such other documents or instruments,
as may be required by the Administrative Agent to create or perfect the Liens of the Administrative Agent in the assets of such
Guarantor of Payment, all to be in form and substance satisfactory to the Administrative Agent.


 


(d)Pledge Agreements.
Each Credit Party that has a Subsidiary shall have (i) executed and delivered to the Administrative Agent, for the benefit of
the Lenders, a Pledge Agreement, in form and substance satisfactory to the Administrative Agent, with respect to the Pledged Securities,
(ii) executed and delivered to the Administrative Agent, for the benefit of the Lenders, appropriate transfer powers for each
of the Pledged Securities that are certificated, and (iii) delivered to the Administrative Agent, for the benefit of the Lenders,
the Pledged Securities (to the extent such Pledged Securities are certificated).


 


(e)Intellectual
Property Security Agreements. Each Credit Party that owns federally registered intellectual property shall have executed and
delivered to the Administrative Agent, for the benefit of the Lenders, an Intellectual Property Security Agreement, in form and
substance satisfactory to the Administrative Agent.


 


(f)Collateral
Access Agreements. The Borrower shall have delivered to the Administrative a Collateral Access Agreement, for each location
of a Credit Party where any of the collateral securing any part of the Obligations is located, unless such location is owned by
the Company that owns the collateral located there; provided that (i) the Borrower shall not be required to deliver a Collateral
Access Agreement with respect to any such location if it would not be required to deliver a Collateral Access Agreement pursuant
to Section 5.21(e) hereof, and (ii) with respect to any Collateral Access Agreements not delivered to the Administrative Agent
as of the Closing Date, the Borrower shall deliver such Collateral Access Agreements pursuant to Section 4.3(a) hereof.


 






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(g)Lien Searches.
With respect to the property owned or leased by each Credit Party, and any other property securing the Secured Obligations, the
Borrower shall have caused to be delivered to the Administrative Agent (i) the results of Uniform Commercial Code lien searches,
satisfactory to the Administrative Agent and the Lenders, (ii) the results of federal and state tax lien and judicial lien searches,
satisfactory to the Administrative Agent and the Lenders, and (iii) Uniform Commercial Code termination statements reflecting
termination of all U.C.C. Financing Statements previously filed by any Person and not expressly permitted pursuant to Section
5.9 hereof.


 


(h)Officer’s
Certificate, Resolutions, Organizational Documents. The Borrower shall have delivered to the Administrative Agent an officer’s
certificate (or comparable domestic or foreign documents) certifying the names of the officers of each Credit Party authorized
to sign the Loan Documents, together with the true signatures of such officers and certified copies of (i) the resolutions of
the board of directors (or comparable domestic or foreign documents) of such Credit Party evidencing approval of the execution,
delivery and performance of the Loan Documents and the execution and performance of other Related Writings to which such Credit
Party is a party, and the consummation of the transactions contemplated thereby, and (ii) the Organizational Documents of such
Credit Party.


 


(i)Good Standing
and Full Force and Effect Certificates. The Borrower shall have delivered to the Administrative Agent a good standing certificate
or full force and effect certificate (or comparable document, if neither certificate is available in the applicable jurisdiction),
as the case may be, for each Credit Party, issued on or about the Closing Date by the Secretary of State in the state or states
where such Credit Party is incorporated or formed or qualified as a foreign entity.


 


(j)Legal Opinion.
The Borrower shall have delivered to the Administrative Agent an opinion of counsel for the Borrower and each other Credit Party,
in form and substance satisfactory to the Administrative Agent and the Lenders.


 


(k)Mophie Acquisition
Documents. The Borrower shall have provided to the Administrative Agent copies of the Mophie Acquisition Documents, certified
by a Financial Officer as true and complete, which documents shall be in form and substance satisfactory to the Administrative
Agent, including evidence that (i) the total Consideration paid on the Closing Date for the Mophie Acquisition does not exceed
One Hundred Million Dollars ($100,000,000), and (ii) the Mophie Acquisition has been consummated contemporaneously with the making
of the first Credit Event, in accordance with the terms of the Mophie Acquisition Documents and in compliance with applicable
law and regulatory approvals.


 


(l)Insurance
Certificates. The Borrower shall have delivered to the Administrative Agent certificates of insurance on ACORD 25 and 27 or
28 form and proof of endorsements satisfactory to the Administrative Agent and the Lenders, providing for adequate personal property
and liability insurance for each Company, with the Administrative Agent, on behalf of the Lenders, listed as lender’s loss
payee and additional insured, as appropriate.


 






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(m)Cash Management
Systems. The Borrower shall have established (i) the cash management system, specified in Section 7.2 hereof (subject to Section
4.3 hereof), and executed the Master Agreement, in form and substance satisfactory to the Administrative Agent, and (ii) a Cash
Collateral Account, Operating Account, Controlled Disbursement Account and Lockbox arrangement, in each case satisfactory to the
Administrative Agent.


 


(n)Customer
List. The Borrower shall have delivered to the Administrative Agent a complete list of all Account Debtors of each Borrowing
Base Company, including but not limited to the name, address and contact information of each such Account Debtor, in form and
detail satisfactory to the Administrative Agent.


 


(o)Financial
Reports of Mophie. The Borrower shall have delivered to the Administrative Agent (i) the restated financial statements of
Mophie for the fiscal year ended December 31, 2014, in form and substance satisfactory to the Administrative Agent, and (ii) unaudited
financial statements of Mophie for the fiscal year ended December 31, 2015; in each case, prepared on a consolidated and consolidating
(in accordance with GAAP) basis, excluding footnotes, in form and substance satisfactory to the Administrative Agent.


 


(p)Pro-Forma
Projections. The Borrower shall have delivered to the Administrative Agent annual pro-forma projections of financial statements
(which report shall include balance sheets and statements of income (loss) and cash-flow) of the Borrower on a quarterly basis
for the fiscal year ending December 31, 2016 and on an annual basis for the fiscal years ending December 31, 2017 and December
31, 2018, in each case prepared on a Consolidated and consolidating (in accordance with GAAP) basis, in form and substance satisfactory
to the Administrative Agent, including the provision of adequate text explaining the significant assumptions from which such pro-forma
projections were prepared; provided that no representation or warranty shall be made as to the impact of future general economic
conditions or as to whether the Borrower’s projections will actually be realized, it being recognized by the Lenders that
such projections as to future events are not to be viewed as facts and that actual results may differ materially from the projections
delivered pursuant to this Section 4.2(q).


 


(q)Collateral
Audit, Inventory and Equipment Appraisals / Pre-Close Roll-Forward Exam. The Administrative Agent shall have received (i)
the results of a collateral field audit of the Borrower and Mophie, (ii) a pre-closing collateral roll-forward exam, and (iii)
a net orderly liquidation value appraisal of the Inventory and intellectual property of the Borrower and Mophie prepared by an
independent appraiser acceptable to the Administrative Agent; in each case to be in form and substance reasonably satisfactory
to the Administrative Agent.


 


(r)Quality of Earnings
Report. The Borrower shall have delivered to the Administrative Agent a copy of the quality of earnings report prepared by
an independent third party in connection with the Mophie Acquisition, in form and substance satisfactory the Administrative Agent.


 


(s)Revolving
Credit Availability. On the Closing Date, the Revolving Credit Availability shall be no less than Ten Million Dollars ($10,000,000);
provided that, for purposes of calculating the Revolving Credit Availability under this Section 4.2(s), Revolving Credit Exposure
shall include, without duplication, (i) any fees and expenses due under Section 4.2(t) hereof, (ii) any accounts payable of the
Borrowing Base Companies with balances over sixty (60) days past due, and (iii) the Borrower’s initial credit request under
the Revolving Credit Commitment.


 






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(t)Administrative
Agent Fee Letter, Closing Fee Letter and Other Fees. The Borrower shall have (i) executed and delivered to the Administrative
Agent, the Administrative Agent Fee Letter and paid to the Administrative Agent, for its sole account, the fees stated therein,
(ii) executed and delivered to the Administrative Agent, the Closing Fee Letter and paid to the Administrative Agent, for the
benefit of the Lenders, the fees stated therein, and (iii) paid all legal fees and expenses of the Administrative Agent in connection
with the preparation and negotiation of the Loan Documents.


 


(u)Advertising
Release Form. The Borrower shall have delivered to the Administrative Agent an advertising release form, authorizing the Administrative
Agent to publicize the transaction and specifically to use the name of the Borrower in connection with “tombstone”
advertisements in one or more publications selected by the Administrative Agent.


 


(v)Existing
Credit Agreements. The Borrower shall have delivered to the Administrative Agent an executed payoff letter (in form and substance
satisfactory to the Administrative Agent) with respect to (i) the Credit Agreement between the Borrower and Wells Fargo Bank,
National Association, dated as of December 7, 2012, as amended, (ii) the Credit Agreement among Mophie, mophie llc, a Michigan
limited liability company, mophie Netherlands Coöperatie U.A., the lenders party thereto and JPMorgan Chase Bank, N.A., as
administrative agent, dated as of October 14, 2014, as amended, and (iii) the Construction Loan Agreement between mophie llc,
a Michigan limited liability company and JPMorgan Chase Bank, N.A., dated as of July 1, 2014, as amended; and, in each case of
subparts (i), (ii) and (iii) above, shall have terminated such agreement, which termination shall be deemed to have occurred upon
payment in full of all of the Indebtedness outstanding thereunder and termination of the commitments established therein, and
such payoff letter shall provide for the release and termination of any liens or security interests in respect thereof.


 


(w)Consents.
The Borrower shall have delivered to the Administrative Agent evidence that all necessary and material consents, permits, licenses
and approvals (whether from governmental authorities, equity holders or otherwise) required for the execution, delivery and performance
by each Credit Party of the Loan Documents and the Mophie Acquisition Documents have been duly obtained (or waived in writing)
and are in full force and effect.


 


(x)Closing
Certificate. The Borrower shall have delivered to the Administrative Agent and the Lenders an officer’s certificate
certifying that, as of the Closing Date, (i) all conditions precedent set forth in this Article IV have been satisfied, (ii) no
Default or Event of Default exists or immediately after the first Credit Event will exist, (iii) the Revolving Credit Availability,
as calculated pursuant to Section 4.2(s) hereof, is no less than Ten Million Dollars ($10,000,000), and (iv) each of the representations
and warranties contained in Article VI hereof are true and correct as of the Closing Date.


 






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(y)Letter of
Direction. The Borrower shall have delivered to the Administrative Agent a letter of direction authorizing the Administrative
Agent, on behalf of the Lenders, to disburse the proceeds of the Loans, which letter of direction includes the authorization to
transfer funds under this Agreement and the wire instructions that set forth the locations to which such funds shall be sent.


 


(z)No Material
Adverse Change. No material adverse change, in the reasonable judgment of the Administrative Agent, shall have occurred in
the financial condition, operations or prospects of the Companies taken as a whole since September 30, 2015.


 


(aa)Miscellaneous.
The Borrower shall have provided to the Administrative Agent and the Lenders such other items and shall have satisfied such other
conditions as may be reasonably required by the Administrative Agent or the Lenders.


 


Section 4.3. Post-Closing
Conditions. On or before the dates specified in this Section 4.3 (unless a longer period is agreed to in writing by the Administrative
Agent), the Borrower shall satisfy each of the following items specified in the subsections below:


 


(a)Collateral Access
Agreements. No later than thirty (30) days after the Closing Date, the Borrower shall deliver to the Administrative a Collateral
Access Agreement (not delivered as of the Closing Date pursuant to Section 4.2(f) hereof), for each location of a Credit Party
where any of the collateral securing any part of the Obligations is located, unless such location is owned by the Company that
owns the collateral located there; provided that the Borrower shall not be required to deliver a Collateral Access Agreement with
respect to any such location if it would not be required to deliver a Collateral Access Agreement pursuant to Section 5.21(e)
hereof.


 


(b) Deposit Accounts.
No later than sixty (60) days after the Closing Date, the Borrower shall close each Deposit Account (other than with respect to
Deposit Accounts permitted to remain open pursuant to the terms of Section 5.21(d) hereof) maintained by a Company at any financial
institution other than the Administrative Agent.


 






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ARTICLE V. COVENANTS


 


Section 5.1. Insurance.
Each Company shall at all times maintain insurance upon its Inventory, Equipment and other personal and real property (including,
if applicable, insurance required by the National Flood Insurance Reform Act of 1994) in such form, written by such companies,
in such amounts, for such periods, and against such risks as may be acceptable to the Administrative Agent, with provisions satisfactory
to the Administrative Agent for, with respect to Credit Parties, payment of all losses thereunder to the Administrative Agent,
for the benefit of the Lenders, and such Company as their interests may appear (with lender’s loss payable and additional
insured endorsements, as appropriate, in favor of the Administrative Agent, for the benefit of the Lenders), and, if required
by the Administrative Agent after the occurrence of an Event of Default, the Borrower shall deposit the policies with the Administrative
Agent. Any such policies of insurance shall provide for no fewer than thirty (30) days prior written notice of cancellation to
the Administrative Agent and the Lenders. Any sums received by the Administrative Agent, for the benefit of the Lenders, in payment
of insurance losses, returns, or unearned premiums under the policies may, at the option of the Administrative Agent, be applied
upon the Obligations whether or not the same is then due and payable, or may be delivered to the Companies for the purpose of
replacing, repairing, or restoring the insured property; provided that if an Event of Default does not then exist, any such sums
received by the Administrative Agent shall be delivered to the Borrower unless otherwise required pursuant to Section 2.11(c)
hereof. The Administrative Agent is hereby authorized to act as attorney-in-fact for the Companies, after the occurrence and during
the continuance of an Event of Default, in obtaining, adjusting, settling and canceling such insurance and endorsing any drafts.
In the event of failure to provide such insurance as herein provided, the Administrative Agent may, at its option, provide such
insurance and the Borrower shall pay to the Administrative Agent, upon demand, the cost thereof. Should the Borrower fail to pay
such sum to the Administrative Agent upon demand, interest shall accrue thereon, from the date of demand until paid in full, at
the Default Rate. Within ten days of the Administrative Agent’s written request, the Borrower shall furnish to the Administrative
Agent such information about the insurance of the Companies as the Administrative Agent may from time to time reasonably request,
which information shall be prepared in form and detail satisfactory to the Administrative Agent and certified by a Financial Officer.


 


Section 5.2. Money
Obligations. Each Company shall pay in full (a) prior in each case to the date when penalties would attach, all material taxes,
assessments and governmental charges and levies (except only those so long as and to the extent that the same shall be contested
in good faith by appropriate and timely proceedings and for which adequate provisions have been established in accordance with
GAAP) for which it may be or become liable or to which any or all of its properties may be or become subject; (b) all of its material
wage obligations to its employees in compliance with the Fair Labor Standards Act (29 U.S.C. §§ 206-207) or any comparable
provisions; and (c) all of its other material obligations calling for the payment of money (except only those so long as and to
the extent that the same shall be contested in good faith and for which adequate provisions have been established in accordance
with GAAP) before such payment becomes overdue.


 


Section 5.3. Financial
Statements, Collateral Reporting and Information.


 


(a)Borrowing
Base. The Borrower shall deliver to the Administrative Agent, as frequently as the Administrative Agent may request, but no
less frequently than by 5:00 P.M. (Eastern time) twenty (20) days after the end of each calendar month (or the next Business Day
if such day is not a Business Day), a Borrowing Base Certificate (for the period ending on the last day of the prior calendar
month) prepared and certified by a Financial Officer. Each such Borrowing Base Certificate shall be updated for all activity (sales,
billings, collections, credits and similar information) impacting the accounts receivable of the Borrowing Base Companies from
the date of the immediately preceding Borrowing Base Certificate to the date of such Borrowing Base Certificate. The amount of
Eligible Inventory and the determination as to which accounts receivable constitute Eligible Accounts Receivable to be included
on each Borrowing Base Certificate shall, absent a request from the Administrative Agent that such amounts be calculated more
frequently, be the amount that is calculated and updated monthly pursuant to subsections (e) and (f) below.


 






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(b)Monthly
Financials. The Borrower shall deliver to the Administrative Agent, within thirty (30) days after the end of each calendar
month, monthly internal unaudited balance sheets of the Borrower, as of the end of such calendar month and statements of income
(loss), stockholders’ equity and cash flow for the month and fiscal year-to-date periods and a comparison to budget or plan,
all prepared on a Consolidated and consolidating (in accordance with GAAP) basis, in form and detail satisfactory to the Administrative
Agent and certified by a Financial Officer.


 


(c)Annual Audit
Report. The Borrower shall deliver to the Administrative Agent, within ninety (90) days after the end of each fiscal year
of the Borrower (or, if earlier, within five days after the date which Borrower shall be required to submit its Form 10-K), an
annual audit report of the Borrower for that year prepared on a Consolidated and consolidating (in accordance with GAAP) basis,
in form and detail satisfactory to the Administrative Agent and certified by an unqualified opinion of an independent public accountant
satisfactory to the Administrative Agent, which report shall include balance sheets and statements of income (loss), stockholders’
equity and cash-flow for that period.


 


(d)Compliance
Certificate. The Borrower shall deliver a Compliance Certificate to the Administrative Agent, concurrently with the delivery
of the financial statements set forth in subsection (b) above for the months that correspond to each of the first three quarterly
periods of each fiscal year of the Borrower, and with the delivery of the annual audit report referenced in subsection (c) above.


 


(e)Accounts
Receivable Aging Report. The Borrower shall deliver to the Administrative Agent, within twenty (20) days after the end of
each calendar month, an accounts receivable aging report, in form and substance satisfactory to the Administrative Agent and signed
by a Financial Officer, (i) aged by the original invoice date of accounts receivable of the Borrowing Base Companies, prepared
as of the last day of the preceding calendar month, reconciled to the month-end balance sheet and month-end Borrowing Base Certificate,
together with the calculation of the current month-end Eligible Accounts Receivable, (ii) upon the Administrative Agent’s
request, an aging by original invoice date of all existing accounts receivable, specifying the names, current value and dates
of invoices for each Account Debtor, and (iii) that includes any other information the Administrative Agent shall reasonably request
with respect to such accounts receivable and its evaluation of such reports.


 


(f)Inventory
Report. The Borrower shall deliver to the Administrative Agent, within twenty (20) days after the end of each calendar month,
a summary of Inventory, in form and substance satisfactory to the Administrative Agent and signed by a Financial Officer, based
upon month-end balances reconciled to the month-end balance sheet and the month-end Borrowing Base Certificate, and accompanied
by an Inventory certification, in form and substance reasonably acceptable to the Administrative Agent and including, without
limitation, (i) a calculation of the Eligible Inventory (the calculation of Eligible Inventory reflecting the then most recent
month-end balance), and (ii) a report of the Inventory by location or whether such Inventory is in-transit. The Borrower shall
deliver to the Administrative Agent, after the end of each calendar month, Inventory records, in such detail as the Administrative
Agent shall deem reasonably necessary to determine the level of Eligible Inventory. The values shown on the Inventory reports
shall be at the lower of cost or market value, determined in accordance with the usual cost accounting system of the Borrowing
Base Companies. The Borrower shall provide such other reports with respect to the Inventory of the Borrowing Base Companies as
the Administrative Agent may reasonably request from time to time.


 






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(g)Accounts
Payable Aging Report. The Borrower shall deliver to the Administrative Agent, within twenty (20) days after the end of each
calendar month, in form and detail satisfactory to the Administrative Agent, an aging summary of the accounts payable of the Borrowing
Base Companies, dated as of the last day of the preceding month.


 


(h)Management
Reports. The Borrower shall deliver to the Administrative Agent, concurrently with the delivery of the annual audit report
referenced in subsection (c) above, a copy of any management report, letter or similar writing that may have been furnished to
the Borrower by the independent public accountants in respect of the systems, operations, financial condition or properties of
the Companies.


 


(i)Customer
List. The Borrower shall deliver to the Administrative Agent an updated customer list, concurrently with the delivery of any
field audit report and upon request by any field examiner of the Administrative Agent, that sets forth all Account Debtors of
the Borrowing Base Companies, including but not limited to the name, address and contact information of each such Account Debtor,
in form and detail satisfactory to the Administrative Agent.


 


(j)Projections.
The Borrower shall deliver to the Administrative Agent, within thirty (30) days after the end of each fiscal year of the Borrower,
projected monthly balance sheets, income statements, cash-flow statements and a calculation of the projected Revolving Credit
Availability and projected compliance with Section 5.7 hereof for the then current fiscal year of the Borrower, all prepared on
a Consolidated basis, consistent with GAAP and in form and detail satisfactory to the Administrative Agent.


 


(k)Locations
of Collateral. The Borrower shall deliver to the Administrative Agent, simultaneously with the delivery of the annual audit
report delivered pursuant to Section 5.3(c) above, a replacement Schedule 6.9 that sets forth each location (including
third party locations) where any Company conducts business or maintains any Accounts, Inventory or Equipment, in form and substance
satisfactory to the Administrative Agent.


 


(l)Financial
Information of the Companies. The Borrower shall deliver to the Administrative Agent and the Lenders, within ten days of the
written request of the Administrative Agent or any Lender, such other information about the financial condition, properties and
operations of any Company as the Administrative Agent or such Lender may from time to time reasonably request, which information
shall be submitted in form and detail satisfactory to the Administrative Agent or such Lender and certified by a Financial Officer
of the Company or Companies in question.


 






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(m)Shareholder
and SEC Documents. The Borrower shall deliver to the Administrative Agent and the Lenders (or give notice of the availability
thereof on the SEC Edgar website), as soon as available, (i) copies of Form 10-Q quarterly reports, Form 10-K annual reports and
Form 8-K current reports, (ii) notice of (and upon the request of the Administrative Agent, copies of) any other filings made
by the Borrower with the SEC, and (iii) notice of (and, upon the request of the Administrative Agent, copies of) any other information
that is provided by the Borrower to its shareholders generally.


 


(n)Delivery
Through Approved Electronic Communication System. Unless otherwise required by the Administrative Agent, all documents and
other information required to be provided to the Administrative Agent pursuant to Section 5.3(a) (Borrowing Base Certificate),
Section 5.3(e) (Accounts Receivable Aging Report), Section 5.3(f) (Inventory Report), Section 5.3(g) (Accounts Payable Aging Report)
and Section 5.3(h) (Equipment Report), shall be delivered to the Administrative Agent through the Approved Electronic Communication
System.


 


(o)Mophie Financial
Statements. No later than forty-five (45) days after the Closing Date, the Borrower shall deliver to the Administrative Agent
(i) audited financial statements of Mophie for the fiscal year ended December 31, 2015, in each case, prepared on a consolidated
and consolidating (in accordance with GAAP) basis, excluding footnotes, in form and substance satisfactory to the Administrative
Agent, with such audited financial statements showing no material changes or adjustments from the unaudited financial statements
of Mophie previously delivered by the Borrower pursuant to Section 4.2(p) hereof, and (ii) all management letters and reports
prepared for Mophie by independent public accountants for the fiscal year ended December 31, 2015.


 


(p)Generally.
All documents and other information required to be provided to the Administrative Agent shall also be provided to the Lenders
(or distributed or otherwise made available to the Lenders by the Administrative Agent).


 


Section 5.4. Financial
Records. Each Company shall at all times maintain true and complete, in all material respects, records and books of account,
including, without limiting the generality of the foregoing, appropriate provisions for possible losses and liabilities, all in
accordance with GAAP, and at all reasonable times (during normal business hours and, other than after the occurrence of an Event
of Default, upon reasonable notice to such Company) permit the Administrative Agent or any Lender, or any representative of the
Administrative Agent or such Lender, to examine such Company’s books and records and to make excerpts therefrom and transcripts
thereof.


 


Section 5.5. Franchises;
Change in Business.


 


(a)Each Company
(other than a Dormant Subsidiary) shall preserve and maintain at all times its existence, and its material rights and franchises
necessary for its business, except as otherwise permitted pursuant to Section 5.12 hereof.


 






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(b)No Company
shall engage in any business if, as a result thereof, the general nature of the business of the Companies taken as a whole would
be substantially changed from the general nature of the business the Companies are engaged in on the Closing Date.


 


Section 5.6. ERISA
Pension and Benefit Plan Compliance. No Company shall incur any material accumulated funding deficiency within the meaning
of ERISA, or any material liability to the PBGC, established thereunder in connection with any ERISA Plan. The Borrower shall
furnish to the Administrative Agent and the Lenders (a) as soon as possible and in any event within thirty (30) days after any
Company knows or has reason to know that any material Reportable Event with respect to any ERISA Plan has occurred, a statement
of a Financial Officer of such Company, setting forth details as to such Reportable Event and the action that such Company proposes
to take with respect thereto, together with a copy of the notice of such Reportable Event given to the PBGC if a copy of such
notice is available to such Company, and (b) promptly after receipt thereof, a copy of any material notice such Company, or any
member of the Controlled Group may receive from the PBGC or the Internal Revenue Service with respect to any ERISA Plan administered
by such Company; provided that this latter clause shall not apply to notices of general application promulgated by the PBGC or
the Internal Revenue Service. The Borrower shall promptly notify the Administrative Agent of any material taxes assessed, proposed
to be assessed or that the Borrower has reason to believe may be assessed against a Company by the Internal Revenue Service with
respect to any ERISA Plan. As used in this Section 5.6, “material” means the measure of a matter of significance that
shall be determined as being an amount equal to five percent (5%) of Consolidated Net Worth. As soon as practicable, and in any
event within twenty (20) days, after any Company shall become aware that an ERISA Event shall have occurred, such Company shall
provide the Administrative Agent with notice of such ERISA Event with a certificate by a Financial Officer of such Company setting
forth the details of the event and the action such Company or another Controlled Group member proposes to take with respect thereto.
The Borrower shall, at the request of the Administrative Agent, deliver or cause to be delivered to the Administrative Agent true
and correct copies of any documents relating to the ERISA Plan of any Company.


 


Section 5.7. Financial
Covenants.


 


(a)Leverage
Ratio. The Borrower shall not suffer or permit at any time the Leverage Ratio, as of June 30, 2016 and as of the end of each
fiscal quarter of the Borrower thereafter, to exceed 3.50 to 1.00.


 


(b)Fixed Charge
Coverage Ratio. The Borrower shall not suffer or permit at any time the Fixed Charge Coverage Ratio, as of June 30, 2016 and
as of the end of each fiscal quarter of the Borrower thereafter, to be less than 1.10 to 1.00.


 


Section 5.8. Borrowing.
No Company shall create, incur or have outstanding any Indebtedness of any kind; provided that this Section 5.8 shall not apply
to the following:


 


(a)the Loans,
the Letters of Credit and any other Indebtedness under this Agreement;


 






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(b)any loans granted
to, or Capitalized Lease Obligations entered into by, any Company for the purchase or lease of fixed assets (and refinancings
of such loans or Capitalized Lease Obligations), which loans and Capitalized Lease Obligations shall only be secured by the fixed
assets being purchased or leased, so long as the aggregate principal amount of all such loans and Capitalized Lease Obligations
for all Companies shall not exceed Two Million Dollars ($2,000,000) at any time outstanding.


 


(c)the Indebtedness
existing on the Closing Date, in addition to the other Indebtedness permitted to be incurred pursuant to this Section 5.8, as
set forth in Schedule 5.8 hereto (and any extension, renewal or refinancing thereof but only to the extent that the principal
amount thereof does not increase after the Closing Date);


 


(d)loans to, and
guaranties of Indebtedness of, a Company from a Company so long as each such Company is a Credit Party;


 


(e)Indebtedness
under any Hedge Agreement, so long as such Hedge Agreement shall have been entered into in the ordinary course of business and
not for speculative purposes;


 


(f)Permitted Foreign
Subsidiary Loans, Guaranties and Investments;


 


(g)Indebtedness consisting
of earn-out payments or unsecured obligations in respect of purchase price adjustments in connection with Acquisitions permitted
hereunder in an aggregate amount not to exceed Five Million Dollars ($5,000,000) at any time outstanding (for clarification, payments
on Indebtedness of this type shall be subject to the provisions of Section 5.15(a) hereof);


 


(h)in addition to
the Indebtedness set forth in subsection (g) above, Indebtedness consisting of earn-out payments or unsecured obligations in respect
of purchase price adjustments in connection with Acquisitions permitted hereunder; so long as, at such time that such obligations
are no longer contingent and appear in the liabilities section of the balance sheet of such Company, such Indebtedness is at all
times subject to a subordination agreement in form and substance reasonably satisfactory to the Administrative Agent (for clarification,
payments on Indebtedness of this type shall be subject to the provisions of Section 5.15(a) hereof); and


 


(i)other unsecured
Indebtedness, in addition to the Indebtedness listed above, in an aggregate principal amount for all Companies not to exceed One
Million Dollars ($1,000,000) at any time outstanding.


 


Section 5.9. Liens.
No Company shall create, assume or suffer to exist (upon the happening of a contingency or otherwise) any Lien upon any of its
property or assets, whether now owned or hereafter acquired; provided that this Section 5.9 shall not apply to the following:


 


(a)Liens for taxes
not yet due or that are being actively contested in good faith by appropriate proceedings and for which adequate reserves shall
have been established in accordance with GAAP;


 






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(b)other statutory
Liens, including, without limitation, statutory Liens of landlords, carriers, warehousers, utilities, mechanics, repairmen, workers
and materialmen, incidental to the conduct of its business or the ownership of its property and assets that (i) were not incurred
in connection with the incurring of Indebtedness or the obtaining of advances or credit, and (ii) do not in the aggregate materially
detract from the value of its property or assets or materially impair the use thereof in the operation of its business;


 


(c)any Lien granted
to the Administrative Agent, for the benefit of the Lenders (and affiliates thereof);


 


(d)the Liens existing
on the Closing Date as set forth in Schedule 5.9 hereto and replacements, extensions, renewals, refundings or refinancings
thereof, but only to the extent that the amount of debt secured thereby, and the amount and description of property subject to
such Liens, shall not be increased;


 


(e)purchase money
Liens on fixed assets securing the loans and Capitalized Lease Obligations pursuant to Section 5.8(b) hereof, provided that such
Lien is limited to the purchase price and only attaches to the property being acquired;


 


(f)Liens on property
or assets of a Subsidiary to secure obligations of such Subsidiary to the Borrower or a Guarantor of Payment;


 


(g)Liens arising
in the ordinary course of business on amounts deposited to secure any Credit Party’s obligations in connection with worker’s
compensation, unemployment insurance or other social security, old age pension or public liability obligations;


 


(h)easements or
other minor defects or irregularities in title of real property not interfering in any material respect with the use of such property
in the business of any Company; or


 


(i)other Liens
(including all Liens existing on the Closing Date as set forth in Schedule 5.9 hereto), not incurred in connection with the incurring
of Indebtedness, securing amounts, in the aggregate for all Companies, not to exceed One Hundred Fifty Thousand Dollars ($150,000)
at any time.


 


No Company shall enter into any contract or
agreement (other than a contract or agreement entered into in connection with the purchase or lease of fixed assets that prohibits
Liens on such fixed assets) that would prohibit the Administrative Agent or the Lenders from acquiring a security interest, mortgage
or other Lien on, or a collateral assignment of, any of the property or assets of such Company.


 


Section 5.10. Regulations
T, U and X. No Company shall take any action that would result in any non-compliance of the Loans or Letters of Credit with
Regulations T, U or X, or any other applicable regulation, of the Board of Governors of the Federal Reserve System.


 






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Section 5.11. Investments,
Loans and Guaranties. No Company shall without the prior written consent of the Administrative Agent and the Required Lenders
(a) create, acquire or hold any Subsidiary, (b) make or hold any investment in any stocks, bonds or securities of any kind, (c)
be or become a party to any joint venture or other partnership, (d) make or keep outstanding any advance or loan to any Person,
or (e) be or become a Guarantor of any kind (other than a Guarantor of Payment under the Loan Documents); provided that this Section
5.11 shall not apply to the following:


 


(i)any endorsement
of a check or other medium of payment for deposit or collection through normal banking channels or similar transaction in the
ordinary course of business;


 


(ii)any
investment in direct obligations of the United States or in certificates of deposit issued by a member bank (having capital resources
in excess of Five Hundred Million Dollars ($500,000,000)) of the Federal Reserve System;


 


(iii)any
investment in commercial paper or securities that at the time of such investment is assigned the highest quality rating in accordance
with the rating systems employed by either Moody’s or Standard & Poor’s;


 


(iv)the
holding of each of the Subsidiaries listed on Schedule 6.1 hereto, and the creation, acquisition and holding of and any
investment in any new Subsidiary after the Closing Date so long as such new Subsidiary shall have been created, acquired or held,
and investments made, in accordance with the terms and conditions of this Agreement;


 


(v)loans
to, investments in and guaranties of the Indebtedness (permitted under Section 5.8(d) hereof) of, a Company from or by a Company
so long as each such Company is a Credit Party;


 


(vi)Permitted
Foreign Subsidiary Loans, Guaranties and Investments;


 


(vii)the
creation of a Subsidiary for the purpose of making an Acquisition permitted by Section 5.13 hereof or the holding of any Subsidiary
as a result of an Acquisition made pursuant to Section 5.13 hereof, and investments therein, so long as, in each case, such Acquisition
is permitted under Section 5.13 hereof and such Subsidiary becomes a Guarantor of Payment promptly following such Acquisition
if required by Section 5.20 hereof;


 


(viii)Patriot
Capital Payments, so long as (A) no Default or Event of Default shall then exist or, after giving pro forma effect to such payment,
thereafter shall begin to exist, (B) the aggregate amount of all such Patriot Capital Payments shall not exceed Two Million Dollars
($2,000,000) in any calendar quarter and (C) Patriot Corporation shall, within twenty (20) days of receiving any such Patriot
Capital Payment, make corresponding payments to a Credit Party in an amount not less than the amount of such Patriot Capital Payment;
or


 






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(ix)any
advance or loan to an officer or employee of a Company made in the ordinary course of such Company’s business, so long as
all such advances and loans from all Companies aggregate not more than the maximum principal sum of Fifty Thousand Dollars ($50,000)
at any time outstanding.


 


For purposes of this Section 5.11, the amount
of any investment in equity interests shall be based upon the initial amount invested and shall not include any appreciation in
value or return on such investment but shall take into account repayments, redemptions and return of capital.


 


Section 5.12. Merger
and Sale of Assets. No Company shall merge, amalgamate or consolidate with any other Person, or sell, lease or transfer or
otherwise dispose of any assets to any Person other than in the ordinary course of business, except that, if no Default or Event
of Default shall then exist or immediately thereafter shall begin to exist:


 


(a)a Company (other
than the Borrower) may merge with (i) the Borrower (provided that the Borrower shall be the continuing or surviving Person) or
(ii) any one or more Guarantors of Payment (provided that a Guarantor of Payment shall be the continuing or surviving Person);


 


(b)a Company (other
than the Borrower) may sell, lease, transfer or otherwise dispose of any of its assets to (i) the Borrower or (ii) any Guarantor
of Payment;


 


(c)a Foreign Subsidiary
may merge or amalgamate with another Company provided that, if either Company is a Credit Party, a Credit Party shall be the continuing
or surviving Person and a Borrower shall be a continuing or surviving Person;


 


(d)a Company may sell
any Excluded Asset;


 


(e)a Company may
sell, lease, transfer or otherwise dispose of any assets that are obsolete or no longer useful in such Company’s business;
and


 


(f)Acquisitions
may be effected in accordance with the provisions of Section 5.13 hereof.


 


Section 5.13. Acquisitions.
No Company shall effect an Acquisition; provided that a Company may effect (a) the Mophie Acquisition on the Closing Date, and
(b) any other Acquisition so long as such Acquisition meets all of the following requirements:


 


(i)the
Companies shall have no further obligations to make Mophie Earn-Out Payments;


 


(ii)in the
case of an Acquisition that involves a merger, amalgamation or other combination including the Borrower, the Borrower shall be
the surviving entity;


 






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(iii)in
the case of an Acquisition that involves a merger, amalgamation or other combination including a Credit Party (other than the
Borrower), a Credit Party shall be the surviving entity;


 


(iv)the
business to be acquired shall be similar, or related to, or incidental to the lines of business of the Companies;


 


(v)the
Companies shall be in full compliance with the Loan Documents both prior to and after giving pro forma effect to such Acquisition;


 


(vi)no
Default or Event of Default shall exist prior to or, after giving pro forma effect to such Acquisition, thereafter shall begin
to exist;


 


(vii)such
Acquisition is not actively opposed by the board of directors (or similar governing body) of the selling Persons or the Persons
whose equity interests are to be acquired;


 


(viii)if
the aggregate Consideration paid for any such Acquisition is equal to or greater than One Million Dollars ($1,000,000) but less
than Five Million Dollars ($5,000,000), the Borrower shall have provided evidence reasonably satisfactory to the Administrative
Agent that the Revolving Credit Availability is no less than (A) twenty-five percent (25%) of the Revolving Credit Commitment
for both thirty (30) consecutive days before, and after giving pro forma effect to, such Acquisition if the outstanding principal
balance on the Term Loan is equal to or greater than Twelve Million Five Hundred Thousand Dollars ($12,500,000); and (B) fifteen
percent (15%) of the Revolving Credit Commitment for both thirty (30) consecutive days before, and after giving pro forma effect
to, such Acquisition if the outstanding principal balance on the Term Loan is less than Twelve Million Five Hundred Thousand Dollars
($12,500,000);


 


(ix)if the
aggregate Consideration paid for any such Acquisition is equal to or greater than Five Million Dollars ($5,000,000):


 


(A)the Borrower
shall have provided to the Administrative Agent and the Lenders, (1) at least ten Business Days prior to such Acquisition, historical
financial statements of the target entity and a pro forma financial statement of the Companies accompanied by a certificate of
a Financial Officer showing (x) that the target entity has generated positive Target EBITDA (subject to adjustments as may be
agreed to by the Administrative Agent) for the most recently completed four fiscal quarters prior to such Acquisition, (y) the
Leverage Ratio, both prior to and after giving pro forma effect to such Acquisition, is at least one quarter (0.25) turn below
the Leverage Ratio requirement then in effect pursuant to Section 5.7 hereof, and (z) the Fixed Charge Coverage Ratio, both prior
to and after giving pro forma effect to such Acquisition, is greater than or equal to 1.20 to 1.00; and (2) such other information
regarding the Acquisition as the Administrative Agent and the Lenders may reasonably request;


 






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(B)the Borrower
shall have provided evidence reasonably satisfactory to the Administrative Agent that the Revolving Credit Availability is no
less than (1) twenty-five percent (25%) of the Revolving Credit Commitment for both thirty (30) consecutive days before, and after
giving pro forma effect to, such Acquisition if the outstanding principal balance on the Term Loan is equal to or greater than
Twelve Million Five Hundred Thousand Dollars ($12,500,000), and (2) fifteen percent (15%) of the Revolving Credit Commitment for
both thirty (30) consecutive days before, and after giving pro forma effect to, such Acquisition if the outstanding principal
balance on the Term Loan is less than Twelve Million Five Hundred Thousand Dollars ($12,500,000); and


 


(C)at the
time of the consummation of such Acquisition, no ECF Shortfall Amount remains unpaid;


 


(x)prior
to any Accounts and Inventory acquired in connection with such Acquisition being included in the determination of the Borrowing
Base, such assets shall have been appraised and otherwise been evaluated for borrowing base eligibility purposes in a manner and
by appraisers satisfactory to the Administrative Agent, the results of which shall be satisfactory to the Administrative Agent;
and


 


(xi)the
aggregate amount of Consideration paid for all Acquisitions for all Companies (A) during any fiscal year of the Borrower, would
not exceed Fifteen Million Dollars ($15,000,000), and (B) during the Commitment Period, would not exceed Twenty-Five Million Dollars
($25,000,000).


 


Section 5.14. Notice.
The Borrower shall cause a Financial Officer to promptly notify the Administrative Agent and the Lenders, in writing, whenever
any of the following shall occur:


 


(a)a Default or
Event of Default may occur hereunder or any representation or warranty made in Article VI hereof or elsewhere in this Agreement
or in any Related Writing may for any reason cease in any material respect to be true and complete;


 


(b)the Borrower
learns of a litigation or proceeding against the Borrower before a court, administrative agency or arbitrator that, if successful,
is reasonably likely to have a Material Adverse Effect; or


 


(c)the Borrower
learns that there has occurred or begun to exist any event, condition or thing that is reasonably likely to have a Material Adverse
Effect.


 


Section 5.15. Restricted
Payments. No Company shall make or commit itself to make any Restricted Payment at any time, except that:


 


(a)the Borrower
may make earn-out payments or payments in respect of purchase price adjustments (including Mophie Earn-Out Payments and Mophie
Contingent Payments) in connection with an Acquisition permitted hereunder so long as (i) no Default or Event of Default shall
then exist or, after giving pro forma effect to such payment, thereafter shall begin to exist, (ii) the Revolving Credit Availability
is no less than twelve and one-half percent (12.5%) of the Revolving Credit Commitment for both thirty (30) consecutive days before,
and after giving pro forma effect to, each such payment, and (iii) except for Mophie Earn-Out Payments and Mophie Contingent Payments,
no ECF Shortfall Amount remains unpaid; and


 






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(b)a Company may
make Capital Distributions so as long as (i) the Revolving Credit Availability is no less than fifteen percent (15%) of the Revolving
Credit Commitment for both thirty (30) consecutive days before, and after giving pro forma effect to, each such payment, (ii)
the Fixed Charge Coverage Ratio shall be greater than 1.25 to 1.00 after giving pro forma effect to each such payment, (iii) no
Default or Event of Default shall then exist or, after giving pro forma effect to such payment, thereafter shall begin to exist,
and (iv) no ECF Shortfall Amount remains unpaid.


 


Section 5.16. Environmental
Compliance. Each Company shall comply in all material respects with any and all Environmental Laws and Environmental Permits
including, without limitation, all Environmental Laws in jurisdictions in which such Company owns or operates a facility or site,
arranges for disposal or treatment of hazardous substances, solid waste or other wastes, accepts for transport any hazardous substances,
solid waste or other wastes or holds any interest in real property or otherwise. The Borrower shall furnish to the Administrative
Agent and the Lenders, promptly after receipt thereof, a copy of any notice any Company may receive from any Governmental Authority
or private Person, or otherwise, that any material litigation or proceeding pertaining to any environmental, health or safety
matter has been filed or is threatened against such Company, any real property in which such Company holds any interest or any
past or present operation of such Company. No Company shall allow the release or disposal of hazardous waste, solid waste or other
wastes on, under or to any real property in which any Company holds any ownership interest or performs any of its operations,
in violation of any material Environmental Law. As used in this Section 5.16, “litigation or proceeding” means any
demand, claim, notice, suit, suit in equity action, administrative action, investigation or inquiry whether brought by any Governmental
Authority or private Person, or otherwise. The Borrower shall defend, indemnify and hold the Administrative Agent and the Lenders
harmless against all costs, expenses, claims, damages, penalties and liabilities of every kind or nature whatsoever (including
attorneys’ fees) arising out of or resulting from the noncompliance of any Company with any Environmental Law. Such indemnification
shall survive any termination of this Agreement.


 


Section 5.17. Affiliate
Transactions. No Company shall, directly or indirectly, enter into or permit to exist any transaction or series of transactions
(including, without limitation, the purchase, sale, lease or exchange of any property or the rendering of any service) with any
Affiliate (other than a Company that is a Credit Party) on terms that shall be less favorable to such Company than those that
might be obtained at the time in a transaction with a Person that is not an Affiliate; provided that the foregoing shall not prohibit
(a) the payment of customary and reasonable directors’ fees to directors who are not employees of a Company or an Affiliate;
(b) any employment agreement, employee benefit plan, stock option plan, officer, director, consultant or employee indemnification
agreement (and the payment of indemnities and fees pursuant to such arrangements) or any similar arrangement entered into by a
Company in the ordinary course of business; (c) loans to employees or officers to the extent permitted under this Agreement; (d)
loans and investments in Foreign Subsidiaries permitted under Section 5.11 hereof; and (e) the Patriot Capital Payments.


 






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Section 5.18. Use of
Proceeds. The Borrower’s use of the proceeds of the Loans shall be for working capital and other general corporate purposes
of the Companies and for the refinancing of existing Indebtedness and for Acquisitions permitted hereunder. Neither the Borrower
nor any of its Subsidiaries and their respective directors, officers, employees and agents will, directly or indirectly, use the
proceeds of the Loans and Letters of Credit, or lend, contribute or otherwise make available such proceeds to any subsidiary,
joint venture partner or other Person, (a) to finance or facilitate activities or business of or with any Person, or in any country
or territory, that, at the time of such funding, is, or whose government is, the subject of Sanctions, (b) in furtherance of an
offer, promise to pay, or the authorization thereof, or any other offering of value, to any Person in violation of any Anti-Corruption
Laws, or (c) in any manner that would result in the violation of any Sanctions applicable to any party hereto.


 


Section 5.19. Corporate
Names and Locations of Collateral. No Company shall (a) change its corporate name, or (b) change its state, province or other
jurisdiction, or form of organization, or extend or continue its existence in or to any other jurisdiction (other than its jurisdiction
of organization at the date of this Agreement); unless, in each case, the Borrower shall have provided the Administrative Agent
and the Lenders with at least ten Business Days prior written notice thereof. The Borrower shall also provide the Administrative
Agent with at least thirty (30) days prior written notification of (i) any change in any location where any Company’s Inventory
or Equipment is maintained, and any new locations where any Company’s Inventory or Equipment is to be maintained; (ii) any
change in the location of the office where any Company’s records pertaining to its Accounts are kept; (iii) the location
of any new places of business and the changing or closing of any of its existing places of business; and (iv) any change in the
location of any Company’s chief executive office. In the event of any of the foregoing or if otherwise deemed appropriate
by the Administrative Agent, the Administrative Agent is hereby authorized to file new U.C.C. Financing Statements describing
the Collateral and otherwise in form and substance sufficient for recordation wherever necessary or appropriate, as determined
in the Administrative Agent’s sole discretion, to perfect or continue perfected the security interest of the Administrative
Agent, for the benefit of the Lenders, in the Collateral. The Borrower shall pay all filing and recording fees and taxes in connection
with the filing or recordation of such U.C.C. Financing Statements and security interests and shall promptly reimburse the Administrative
Agent therefor if the Administrative Agent pays the same. Such amounts not so paid or reimbursed shall be Related Expenses hereunder.


 


Section 5.20. Subsidiary
Guaranties, Security Documents and Pledge of Stock or Other Ownership Interest.


 


(a)Guaranties
and Security Documents. Each Subsidiary (that is not a Dormant Subsidiary, a CFC or a Subsidiary that is held directly or
indirectly by a CFC) created, acquired or held subsequent to the Closing Date, shall promptly execute and deliver to the Administrative
Agent, for the benefit of the Lenders, a Guaranty of Payment (or a Guaranty of Payment Joinder) of all of the Obligations and
a Security Agreement (or a Security Agreement Joinder), and mortgages, as appropriate, such agreements to be prepared by the Administrative
Agent and in form and substance acceptable to the Administrative Agent, along with any such other supporting documentation, Security
Documents, corporate governance and authorization documents, and an opinion of counsel as may be deemed necessary or advisable
by the Administrative Agent. With respect to a Subsidiary that has been classified as a Dormant Subsidiary, at such time that
such Subsidiary no longer meets the requirements of a Dormant Subsidiary, the Borrower shall provide to the Administrative Agent
prompt written notice thereof, and shall provide, with respect to such Subsidiary, all of the documents referenced in the foregoing
sentence. In addition, each such Subsidiary shall be subject to the Patriot Act requirements set forth in Section 11.14 hereof.


 






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(b)Pledge of
Stock or Other Ownership Interest. With respect to the creation or acquisition of a Subsidiary (that is not a Subsidiary of
a CFC), the Borrower shall deliver to the Administrative Agent, for the benefit of the Lenders, all of the share certificates
(or other evidence of equity) owned by a Credit Party pursuant to the terms of a Pledge Agreement prepared by the Administrative
Agent and in form and substance satisfactory to the Administrative Agent, and executed by the appropriate Credit Party; provided
that no such pledge shall include shares of voting capital stock or other voting equity interests of any Foreign Subsidiary that
is a CFC in excess of sixty-five percent (65%) of the total outstanding shares of voting capital stock or other voting equity
interest of such Foreign Subsidiary, whether held directly or indirectly through a disregarded entity.


 


(c)Perfection
or Registration of Interest in Foreign Shares. With respect to any foreign shares pledged to the Administrative Agent, for
the benefit of the Lenders, on or after the Closing Date, the Administrative Agent shall at all times, in the discretion of the
Administrative Agent or the Required Lenders, have the right to perfect, at the Borrower’s cost, payable upon request therefor
(including, without limitation, any foreign counsel, or foreign notary, filing, registration or similar, fees, costs or expenses),
its security interest in such shares in the respective foreign jurisdiction. Such perfection may include the requirement that
the applicable Company promptly execute and deliver to the Administrative Agent a separate pledge document (prepared by the Administrative
Agent and in form and substance satisfactory to the Administrative Agent), covering such equity interests, that conforms to the
requirements of the applicable foreign jurisdiction, together with an opinion of local counsel as to the perfection of the security
interest provided for therein, and all other documentation necessary or desirable to effect the foregoing and to permit the Administrative
Agent to exercise any of its rights and remedies in respect thereof.


 


Section 5.21. Collateral.
Each Credit Party shall:


 


(a)at all reasonable
times and, except after the occurrence of an Event of Default, upon reasonable notice, allow the Administrative Agent and the
Lenders by or through any of the Administrative Agent’s officers, agents, employees, attorneys or accountants to (i) examine,
inspect and make extracts from such Credit Party’s books and other records, including, without limitation, the tax returns
of such Credit Party, (ii) arrange for verification of such Credit Party’s Accounts, under reasonable procedures, directly
with Account Debtors or by other methods, (iii) examine and inspect such Credit Party’s Inventory and Equipment, wherever
located, (iv) subject to Section 2.9(c) hereof, conduct Inventory appraisals and brand appraisals;


 






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(b)promptly furnish
to the Administrative Agent or any Lender upon request (i) additional statements and information with respect to the Collateral,
and all writings and information relating to or evidencing any of such Credit Party’s Accounts (including, without limitation,
computer printouts or typewritten reports listing the mailing addresses of all present Account Debtors), and (ii) any other writings
and information as the Administrative Agent or such Lender may request;


 


(c)promptly notify
the Administrative Agent in writing upon the acquisition or creation of any Accounts with respect to which the Account Debtor
is the United States or any other Governmental Authority, or any business that is located in a foreign country;


 


(d)promptly notify
the Administrative Agent in writing upon the acquisition or creation by any Credit Party of a Deposit Account or Securities Account
not maintained at the Administrative Agent, and at no time permit the aggregate balance in all Deposit Accounts and Securities
Accounts that are not maintained at the Administrative Agent, to exceed Ten Thousand Dollars ($10,000) at any time;


 


(e)promptly notify
the Administrative Agent in writing whenever the Equipment or Inventory of a Company is located at a location of a third party
(other than another Company) that is not listed on Schedule 6.9 hereto and cause to be executed any Collateral Access Agreement
that may be required by the Administrative Agent or the Required Lenders; provided that a Collateral Access Agreement shall not
be required for any Equipment or Inventory located at such location to the extent that the aggregate value of all Equipment and
Inventory of all Companies maintained at such location does not exceed Two Hundred Fifty Thousand Dollars ($250,000); provided
further that, at the discretion of the Administrative Agent, a Collateral Access Agreement shall be required for any such third
party location where billing and/or accounts receivable collections are performed;


 


(f)promptly notify
the Administrative Agent and the Lenders in writing of any information that such Credit Party has or may receive with respect
to the Collateral that might reasonably be determined to materially and adversely affect the value thereof or the rights of the
Administrative Agent and the Lenders with respect thereto;


 


(g)maintain such
Credit Party’s (i) Equipment in good operating condition and repair, ordinary wear and tear excepted, making all necessary
replacements thereof so that the value and operating efficiency thereof shall at all times be maintained and preserved, (ii) finished
goods Inventory in saleable condition, and (iii) other items of Collateral, taken as an entirety, in such conditions as is consistent
with generally accepted business practices, ordinary wear and tear excepted;


 


(h)deliver to
the Administrative Agent, to hold as security for the Secured Obligations, all certificated Investment Property owned by such
Credit Party, in suitable form for transfer by delivery, or accompanied by duly executed instruments of transfer or assignment
in blank, all in form and substance satisfactory to the Administrative Agent, or in the event such Investment Property is in the
possession of a Securities Intermediary or credited to a Securities Account, execute with the related Securities Intermediary
a Securities Account Control Agreement over such Securities Account in favor of the Administrative Agent, for the benefit of the
Lenders, in form and substance satisfactory to the Administrative Agent;


 






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(i)provide to
the Administrative Agent, on a quarterly basis (as necessary), a list of any patents, trademarks or copyrights that have been
federally registered by a Credit Party since the last list so delivered, and provide for the execution of an appropriate Intellectual
Property Security Agreement; and


 


(j)upon request
of the Administrative Agent, promptly take such action and promptly make, execute and deliver all such additional and further
items, deeds, assurances, instruments and any other writings as the Administrative Agent may from time to time deem necessary
or appropriate, including, without limitation, chattel paper, to carry into effect the intention of this Agreement, or so as to
completely vest in and ensure to the Administrative Agent and the Lenders their respective rights hereunder and in or to the Collateral.


 


Each Credit Party hereby authorizes the Administrative
Agent, on behalf of the Lenders, to file U.C.C. Financing Statements or other appropriate notices with respect to the Collateral.
If certificates of title or applications for title are issued or outstanding with respect to any of the Inventory or Equipment
of any Credit Party, such Credit Party shall, upon request of the Administrative Agent, (i) execute and deliver to the Administrative
Agent a short form security agreement, prepared by the Administrative Agent and in form and substance satisfactory to the Administrative
Agent, and (ii) deliver such certificate or application to the Administrative Agent and cause the interest of the Administrative
Agent, for the benefit of the Lenders, to be properly noted thereon. The Borrower hereby authorizes the Administrative Agent or
the Administrative Agent’s designated agent (but without obligation by the Administrative Agent to do so) to incur Related
Expenses (whether prior to, upon, or subsequent to any Default or Event of Default), and the Borrower shall promptly repay, reimburse,
and indemnify the Administrative Agent and the Lenders for any and all Related Expenses. If the Borrower fails to keep and maintain
its Equipment in good operating condition, ordinary wear and tear excepted, the Administrative Agent may (but shall not be required
to) so maintain or repair all or any part of the Borrower’s Equipment and the cost thereof shall be a Related Expense. All
Related Expenses are payable to the Administrative Agent upon demand therefor; the Administrative Agent may, at its option, debit
Related Expenses directly to any Deposit Account of a Company located at the Administrative Agent or the Revolving Loans.


 


Section 5.22. Returns
of Inventory. No Credit Party shall return any Inventory to a supplier, vendor or other Person, whether for cash, credit or
otherwise, unless (a) such return is in the ordinary course of business; (b) no Default or Event of Default exists or would result
therefrom; (c) the Administrative Agent is promptly notified if the aggregate value of all Inventory returned in any month exceeds
Two Hundred Thousand Dollars ($200,000); and (d) any payment received by such Credit Party for a return is promptly remitted to
the Administrative Agent for application to the Obligations.


 


Section 5.23. Acquisition,
Sale and Maintenance of Inventory. The Credit Parties shall take commercially reasonable steps to assure that all Inventory
is produced in all material respects in accordance with applicable laws, including the Fair Labor Standards Act (29 U.S.C. §§
206-207). The Credit Parties shall use, store and maintain all Inventory with reasonable care and caution, in accordance with
applicable standards of any insurance policies and in conformity in all material respects with all applicable laws, and shall
make current rent payments (within applicable grace periods provided for in leases) at all locations where any collateral securing
the Secured Obligations is located.


 






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Section 5.24. Property
Acquired Subsequent to the Closing Date and Right to Take Additional Collateral. The Borrower shall provide the Administrative
Agent with prompt written notice with respect to any real or personal property (other than in the ordinary course of business
and excluding Accounts, Inventory, Equipment and General Intangibles and other property acquired in the ordinary course of business)
acquired by any Company subsequent to the Closing Date. In addition to any other right that the Administrative Agent and the Lenders
may have pursuant to this Agreement or otherwise, upon written request of the Administrative Agent, whenever made, the Borrower
shall, and shall cause each Guarantor of Payment to, grant to the Administrative Agent, for the benefit of the Lenders, as additional
security for the Secured Obligations, a first Lien on any real or personal property of the Borrower and each Guarantor of Payment
(other than for leased equipment or equipment subject to a purchase money security interest in which the lessor or purchase money
lender of such equipment holds a first priority security interest, in which case, the Administrative Agent shall have the right
to obtain a security interest junior only to such lessor or purchase money lender), including, without limitation, such property
acquired subsequent to the Closing Date, in which the Administrative Agent does not have a first priority Lien. The Borrower agrees
that, within ten days after the date of such written request, to secure all of the Secured Obligations by delivering to the Administrative
Agent security agreements, intellectual property security agreements, pledge agreements, mortgages (or deeds of trust, if applicable)
or other documents, instruments or agreements or such thereof as the Administrative Agent may require. The Borrower shall pay
all recordation, legal and other expenses in connection therewith.


 


Section 5.25. Restrictive
Agreements. Except as set forth in this Agreement, the Borrower shall not, and shall not permit any of its Subsidiaries to,
directly or indirectly, create or otherwise cause or suffer to exist or become effective any encumbrance or restriction on the
ability of any Subsidiary to (a) make, directly or indirectly, any Capital Distribution to the Borrower, (b) make, directly or
indirectly, loans or advances or capital contributions to the Borrower or (c) transfer, directly or indirectly, any of the properties
or assets of such Subsidiary to the Borrower; except for such encumbrances or restrictions existing under or by reason of (i)
applicable law, (ii) customary non-assignment provisions in leases or other agreements entered in the ordinary course of business
and consistent with past practices, or (iii) customary restrictions in security agreements or mortgages securing Indebtedness,
or capital leases, of a Company to the extent such restrictions shall only restrict the transfer of the property subject to such
security agreement, mortgage or lease.


 


Section 5.26. Other
Covenants and Provisions. In the event that any Company shall enter into, or shall have entered into, any Material Indebtedness
Agreement, wherein the covenants, representations and agreements contained therein shall be more restrictive than the covenants,
representations and agreements set forth herein, then the Companies shall immediately be bound hereunder (without further action)
by such more restrictive covenants, representations and agreements with the same force and effect as if such covenants, representations
and agreements were written herein. In addition to the foregoing, the Borrower shall provide prompt written notice to the Administrative
Agent of the creation or existence of any Material Indebtedness Agreement that has such more restrictive provisions, and shall,
within fifteen (15) days thereafter (if requested by the Administrative Agent), execute and deliver to the Administrative Agent
an amendment to this Agreement that incorporates such more restrictive provisions, with such amendment to be in form and substance
satisfactory to the Administrative Agent.


 






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Section 5.27 Guaranty
Under Material Indebtedness Agreement. No Company shall be or become a primary obligor or Guarantor of the Indebtedness incurred
pursuant to any Material Indebtedness Agreement unless such Company shall also be a Guarantor of Payment under this Agreement
prior to or concurrently therewith.


 


Section 5.28. Amendment
of Organizational Documents. Without the prior written consent of the Administrative Agent, no Company shall (a) amend
its Organizational Documents in any manner adverse to the Lenders, or (b) amend its Organizational Documents to change its name
or state, province or other jurisdiction of organization, or its form of organization, except as otherwise provided in Section
5.19(b) hereof.


 


Section 5.29. Compliance
with Laws. Each Company shall (a) comply with all material federal, state, local, or foreign applicable statutes, rules, regulations,
and orders including, without limitation, those relating to environmental protection, occupational safety and health, and equal
employment practices; (b) comply with Anti-Corruption Laws, and shall have implemented policies and procedures designed to ensure
compliance therewith; and (c) ensure that no Company, or to the knowledge of any Company, any director or officer of a Company,
is a Person that is, or is owned or controlled by Persons that are (i) the subject of any Sanctions, or (ii) located, organized
or resident in, or operating in, a country or territory that is, or whose government is, the subject of Sanctions.


 


Section 5.30. Fiscal
Year of Borrower. The Borrower shall not change the date of its fiscal year-end without the prior written consent of the Administrative
Agent and the Required Lenders. As of the Closing Date, the fiscal year end of the Borrower is December 31 of each year.


 


Section 5.31. Banking
Relationship. No later than sixty (60) days after the Closing Date, and until payment in full of the Obligations, the Borrower
shall maintain its primary banking and depository relationship with the Administrative Agent.


 


Section 5.32. Further
Assurances. The Borrower shall, and shall cause each other Credit Party to, promptly upon request by the Administrative Agent,
or the Required Lenders through the Administrative Agent, (a) correct any material defect or error that may be discovered in any
Loan Document or in the execution, acknowledgment, filing or recordation thereof, and (b) do, execute, acknowledge, deliver, record,
re-record, file, re-file, register and re-register any and all such further acts, deeds, certificates, assurances and other instruments
related to any of the collateral securing the Secured Obligations as the Administrative Agent, or the Required Lenders through
the Administrative Agent, may reasonably require from time to time in order to carry out more effectively the purposes of the
Loan Documents.


 






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ARTICLE VI. REPRESENTATIONS AND WARRANTIES


 


Section 6.1. Corporate
Existence; Subsidiaries; Foreign Qualification. Each Company is duly organized, validly existing, and in good standing (or
comparable concept in the applicable jurisdiction) under the laws of its state or jurisdiction of incorporation or organization,
and is duly qualified and authorized to do business and is in good standing (or comparable concept in the applicable jurisdiction)
as a foreign entity in the jurisdictions set forth opposite its name on Schedule 6.1 hereto, which are all of the states
or jurisdictions where the character of its property or its business activities makes such qualification necessary, except where
the failure to so qualify could not reasonably be expected to cause or result in a Material Adverse Effect. Each Foreign Subsidiary
is validly existing under the laws of its jurisdiction of organization. Schedule 6.1 hereto sets forth, as of the Closing
Date, each Subsidiary of the Borrower (and whether such Subsidiary is a Dormant Subsidiary), its state (or jurisdiction) of formation,
its relationship to the Borrower, including the percentage of each class of stock or other equity interest owned by a Company,
each Person that owns the stock or other equity interest of each Company, its tax identification number, the location of its chief
executive office and its principal place of business. Except as set forth on Schedule 6.1 hereto, the Borrower, directly
or indirectly, owns all of the equity interests of each of its Subsidiaries.


 


Section 6.2. Corporate
Authority. Each Credit Party has the right and power and is duly authorized and empowered to enter into, execute and deliver
the Loan Documents to which it is a party and to perform and observe the provisions of the Loan Documents. The Loan Documents
to which each Credit Party is a party have been duly authorized and approved by such Credit Party’s board of directors or
other governing body, as applicable, and are the legal, valid and binding obligations of such Credit Party, enforceable against
such Credit Party in accordance with their respective terms. The execution, delivery and performance of the Loan Documents do
not conflict with, result in a breach in any of the provisions of, constitute a default under, or result in the creation of a
Lien (other than Liens permitted under Section 5.9 hereof) upon any assets or property of any Company under the provisions of,
such Company’s Organizational Documents or any material agreement to which such Company is a party.


 


Section 6.3. Compliance
with Laws and Contracts. Each Company:


 


(a)holds all material
permits, certificates, licenses, orders, registrations, franchises, authorizations, and other approvals from any Governmental
Authority necessary for the conduct of its business and is in compliance in all material respects with all applicable laws relating
thereto;


 


(b)is in compliance
with all federal, state, local, or foreign applicable statutes, rules, regulations, and orders including, without limitation,
those relating to environmental protection, occupational safety and health, and equal employment practices, except where the failure
to be in compliance could not reasonably be expected to have or results in a Material Adverse Effect;


 






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(c)is not in violation
of or in default under any agreement to which it is a party or by which its assets are subject or bound, except with respect to
any violation or default that could not reasonably be expected to have or result in a Material Adverse Effect;


 


(d)has ensured
that no Company, or to the knowledge of any Company, any director or officer of a Company, is a Person that is, or is owned or
controlled by Persons that are (i) the subject of any Sanctions, or (ii) located, organized or resident in, or operating in, a
country or territory that is, or whose government is, the subject of Sanctions;


 


(e)is in compliance
with all applicable Bank Secrecy Act (“BSA”) and anti-money laundering laws and regulations;


 


(f)is in compliance
with Anti-Corruption Laws, and has implemented policies and procedures designed to ensure compliance therewith;


 


(g)is in compliance
with the Patriot Act; and


 


(h)represents
and warrants that it is not an EEA Financial Institution.


 


Section 6.4. Litigation
and Administrative Proceedings. Except as disclosed on Schedule 6.4 hereto, there are (a) no lawsuits, actions, investigations,
examinations or other proceedings pending or, to the knowledge of the Borrower, threatened against any Company, or in respect
of which any Company may have any liability, in any court or before or by any Governmental Authority, arbitration board, or other
tribunal that could reasonably be expected to have a Material Adverse Effect, (b) no orders, writs, injunctions, judgments, or
decrees of any court or Governmental Authority to which any Company is a party or by which the property or assets of any Company
are bound that could reasonably be expected to have a Material Adverse Effect, and (c) no grievances, disputes, or controversies
outstanding with any union or other organization of the employees of any Company, or threats of work stoppage, strike, or pending
demands for collective bargaining that could reasonably be expected to have a Material Adverse Effect.


 


Section 6.5. Title
to Assets. Each Company has good title to and ownership of all property it purports to own, which property is free and clear
of all Liens, except those permitted under Section 5.9 hereof. As of the Closing Date, the Companies own the real estate listed
on Schedule 6.5 hereto.


 


Section 6.6. Liens
and Security Interests. On and after the Closing Date, except for Liens permitted pursuant to Section 5.9 hereof, (a) there
is and will be no U.C.C. Financing Statement or similar notice of Lien outstanding covering any personal property of any Company;
(b) there is and will be no mortgage or charge outstanding covering any real property of any Company; and (c) no real or personal
property of any Company is subject to any Lien of any kind. The Administrative Agent, for the benefit of the Lenders, upon the
filing of the U.C.C. Financing Statements and taking such other actions necessary to perfect its Lien against collateral of the
corresponding type as authorized hereunder will have a valid and enforceable first Lien on the collateral securing the Secured
Obligations. No Company has entered into any contract or agreement (other than a contract or agreement entered into in connection
with the purchase or lease of fixed assets that prohibits Liens on such fixed assets) that exists on or after the Closing Date
that would prohibit the Administrative Agent or the Lenders from acquiring a Lien on, or a collateral assignment of, any of the
property or assets of any Company.


 






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Section 6.7. Tax Returns.
All federal, state, provincial and material local tax returns and other material reports required by law to be filed in respect
of the income, business, properties and employees of each Company have been filed (or extended or challenged as permitted by applicable
law) and all taxes, assessments, fees and other governmental charges that are due and payable have been paid, except as otherwise
permitted herein. The provision for taxes on the books of each Company is adequate, in all material respects, for all years not
closed by applicable statutes and for the current fiscal year.


 


Section 6.8. Environmental
Laws. Each Company is in compliance with all Environmental Laws, including, without limitation, all Environmental Laws in
all jurisdictions in which any Company owns or operates, or has owned or operated, a facility or site, arranges or has arranged
for disposal or treatment of hazardous substances, solid waste or other wastes, accepts or has accepted for transport any hazardous
substances, solid waste or other wastes or holds or has held any interest in real property or otherwise, except to the extent
that any such failure to comply could not reasonably be expected to have a Material Adverse Effect. No litigation or proceeding
arising under, relating to or in connection with any Environmental Law or Environmental Permit is pending or, to the best knowledge
of each Company, threatened, against any Company, any real property in which any Company holds or has held an interest or any
past or present operation of any Company. No release, threatened release or disposal of hazardous waste, solid waste or other
wastes is occurring, or has occurred (other than those that are currently being remediated in accordance with Environmental Laws),
on, under or to any real property in which any Company holds any interest or performs any of its operations, in material violation
of any material Environmental Law. As used in this Section 6.8, “litigation or proceeding” means any demand, claim,
notice, suit, suit in equity, action, administrative action, investigation or inquiry whether brought by any Governmental Authority
or private Person, or otherwise.


 


Section 6.9. Locations.
As of the Closing Date, the Companies have places of business or maintain their Accounts, Inventory and Equipment at the locations
(including third party locations) set forth on Schedule 6.9 hereto, and each Company’s chief executive office is
set forth on Schedule 6.9 hereto. Schedule 6.9 hereto further specifies whether each location, as of the Closing
Date, (a) is owned by the Companies, or (b) is leased by a Company from a third party, and, if leased by a Company from a third
party, if a Collateral Access Agreement has been requested. As of the Closing Date, Schedule 6.9 hereto correctly identifies
the name and address of each third party location where assets of the Companies are located.


 


Section 6.10. Continued
Business. There exists no actual, pending, or, to the Borrower’s knowledge, any threatened termination, cancellation
or limitation of, or any modification or change in the business relationship of any Company and any customer or supplier, or any
group of customers or suppliers, whose purchases or supplies, individually or in the aggregate, are material to the business of
any Company, and there exists no present condition or state of facts or circumstances that would have a Material Adverse Effect
or prevent a Company from conducting such business or the transactions contemplated by this Agreement in substantially the same
manner in which it was previously conducted.


 






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Section 6.11. Employee
Benefits Plans. Schedule 6.11 hereto identifies each ERISA Plan as of the Closing Date. No ERISA Event has occurred
or is expected to occur with respect to an ERISA Plan. Full payment has been made of all amounts that a Controlled Group member
is required, under applicable law or under the governing documents, to have paid as a contribution to or a benefit under each
ERISA Plan. The liability of each Controlled Group member with respect to each ERISA Plan has been fully funded based upon reasonable
and proper actuarial assumptions, has been fully insured, or has been fully reserved for on its financial statements. No changes
have occurred or are expected to occur that would cause a material increase in the cost of providing benefits under the ERISA
Plan. With respect to each ERISA Plan that is intended to be qualified under Code Section 401(a), (a) the ERISA Plan and any associated
trust operationally comply with the applicable requirements of Code Section 401(a) in all material respects; (b) the ERISA Plan
and any associated trust have been amended to comply with all such requirements as currently in effect, other than those requirements
for which a retroactive amendment can be made within the “remedial amendment period” available under Code Section
401(b) (as extended under Treasury Regulations and other Treasury pronouncements upon which taxpayers may rely); (c) the ERISA
Plan and any associated trust have received a favorable determination letter from the Internal Revenue Service stating that the
ERISA Plan qualifies under Code Section 401(a), that the associated trust qualifies under Code Section 501(a) and, if applicable,
that any cash or deferred arrangement under the ERISA Plan qualifies under Code Section 401(k), unless the ERISA Plan was first
adopted at a time for which the above-described “remedial amendment period” has not yet expired; (d) the ERISA Plan
currently satisfies the requirements of Code Section 410(b), without regard to any retroactive amendment that may be made within
the above-described “remedial amendment period”; and (e) no contribution made to the ERISA Plan is subject to an excise
tax under Code Section 4972. With respect to any Pension Plan, the “accumulated benefit obligation” of Controlled
Group members with respect to the Pension Plan (as determined in accordance with Statement of Accounting Standards No. 87, “Employers’
Accounting for Pensions”) does not exceed the fair market value of Pension Plan assets.


 


Section 6.12. Consents
or Approvals. No consent, approval or authorization of, or filing, registration or qualification with, any Governmental Authority
or any other Person is required to be obtained or completed by any Company in connection with the execution, delivery or performance
of any of the Loan Documents, that has not already been obtained or completed.


 


Section 6.13. Solvency.
The Borrower has received consideration that is the reasonably equivalent value of the obligations and liabilities that the Borrower
has incurred to the Administrative Agent and the Lenders. The Borrower is not insolvent as defined in any applicable state, federal
or relevant foreign statute, nor will the Borrower be rendered insolvent by the execution and delivery of the Loan Documents to
the Administrative Agent and the Lenders. The Borrower is not engaged or about to engage in any business or transaction for which
the assets retained by it are or will be an unreasonably small amount of capital, taking into consideration the obligations to
the Administrative Agent and the Lenders incurred hereunder. The Borrower does not intend to, nor does it believe that it will,
incur debts beyond its ability to pay such debts as they mature.


 






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Section 6.14. Financial
Statements. The audited Consolidated financial statements of the Borrower for the fiscal year ended December 31, 2014 and
the unaudited Consolidated financial statements of the Borrower for the fiscal quarter ended September 30, 2015, furnished to
the Administrative Agent and the Lenders, are true and complete, have been prepared in accordance with GAAP, and fairly present
the financial condition of the Companies as of the dates of such financial statements and the results of their operations for
the periods then ending. Since the dates of such statements, there has been no material adverse change in any Company’s
financial condition, properties or business or any change in any Company’s accounting procedures.


 


Section 6.15. Regulations.
No Company is engaged principally or as one of its important activities, in the business of extending credit for the purpose of
purchasing or carrying any “margin stock” (within the meaning of Regulation U of the Board of Governors of the Federal
Reserve System of the United States). Neither the granting of any Loan (or any conversion thereof) or Letter of Credit nor the
use of the proceeds of any Loan or Letter of Credit will violate, or be inconsistent with, the provisions of Regulation T, U or
X or any other Regulation of such Board of Governors.


 


Section 6.16. Material
Agreements. Except as disclosed on Schedule 6.16 hereto, as of the Closing Date, no Company is a party to any (a) debt
instrument (excluding the Loan Documents); (b) lease (capital, operating or otherwise), whether as lessee or lessor thereunder;
(c) contract, commitment, agreement, or other arrangement involving the purchase or sale of any inventory by it, or the license
of any right to or by it; (d) contract, commitment, agreement, or other arrangement with any of its “Affiliates” (as
such term is defined in the Exchange Act) other than a Company; (e) management or employment contract or contract for personal
services with any of its Affiliates that is not otherwise terminable at will or on less than ninety (90) days’ notice without
liability; (f) collective bargaining agreement; or (g) other contract, agreement, understanding, or arrangement with a third party;
that, as to subparts (a) through (g) above, if violated, breached, or terminated for any reason, would have or would be reasonably
expected to have a Material Adverse Effect.


 


Section 6.17. Intellectual
Property. Each Company owns, or has the right to use, all of the material patents, patent applications, industrial designs,
designs, trademarks, service marks, copyrights and licenses, and rights with respect to the foregoing, necessary for the conduct
of its business without any known material conflict with the rights of others. Schedule 6.17 hereto sets forth all federally
registered patents, trademarks, copyrights, service marks and license agreements owned by each Company.


 


Section 6.18. Insurance.
Each Company maintains with financially sound and reputable insurers insurance with coverage (including, if applicable, insurance
required by the National Flood Insurance Reform Act of 1994) and limits as required by law and as is customary with Persons engaged
in the same businesses as the Companies. Schedule 6.18 hereto sets forth all insurance carried by the Companies on the
Closing Date, setting forth in detail the amount and type of such insurance.


 






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Section 6.19. Deposit
Accounts and Securities Accounts. Schedule 6.19 hereto lists all banks, other financial institutions and Securities
Intermediaries at which any Credit Party maintains Deposit Accounts or Securities Accounts as of the Closing Date, and Schedule
6.19 hereto correctly identifies the name, address and telephone number of each such financial institution or Securities Intermediary,
the name in which the account is held, a description of the purpose of the account, and the complete account number therefor.


 


Section 6.20. Accurate
and Complete Statements. Neither the Loan Documents nor any written statement made by any Company in connection with any of
the Loan Documents contains any untrue statement of a material fact or omits to state a material fact necessary to make the statements
contained therein or in the Loan Documents not misleading. After due inquiry by the Borrower, there is no known fact that any
Company has not disclosed to the Administrative Agent and the Lenders that has or is likely to have a Material Adverse Effect.


 


Section 6.21. Investment
Company; Other Restrictions. No Company is (a) an “investment company” or a company “controlled” by
an “investment company” within the meaning of the Investment Company Act of 1940, as amended, or (b) subject to any
foreign, federal, state or local statute or regulation limiting its ability to incur Indebtedness.


 


Section 6.22. Acquisition
Agreement Representations. To the extent reasonably necessary to preserve or protect the rights of the Administrative Agent
and the Lenders in respect of the Collateral, the Borrower covenants and agrees to enforce and pursue all remedies reasonably
available to it in connection with any breach of a representation and warranty made by Mophie, as seller under the Mophie Purchase
Agreement, and its equity holders.


 


Section 6.23. Defaults.
No Default or Event of Default exists, nor will any begin to exist immediately after the execution and delivery hereof.


 


ARTICLE VII. SECURITY


 


Section 7.1. Security
Interest in Collateral. In consideration of and as security for the full and complete payment of all of the Secured Obligations,
the Borrower hereby grants to the Administrative Agent, for the benefit of the Lenders (and affiliates thereof that hold Secured
Obligations), a security interest in the Collateral.


 


Section 7.2. Cash Management
System. The Borrower shall establish and maintain, until the payment in full of the Secured Obligations and the termination
of the Commitment, the cash management systems described below:


 


(a)Lockbox.
On or before the Closing Date, the Borrower shall (i) establish a lockbox arrangement with the Administrative Agent, on behalf
of the Lenders (the “Lockbox”), which shall be governed by the Master Agreement, and, within sixty (60) days after
the Closing Date, shall request in writing and otherwise take such reasonable steps to ensure that each Account Debtor forwards
all Collections from such Account Debtor directly to the Lockbox (if the Borrower neglects or refuses to notify any Account Debtor
to remit all such Collections to the Lockbox, the Administrative Agent shall be entitled to make such notification), (ii) hold
in trust for the Administrative Agent, as fiduciary for the Administrative Agent, all checks, cash and other items of payment
received by the Borrower, and (iii) not commingle any such Collections with any other funds or property of the Borrower, but will
hold such funds separate and apart in trust and as fiduciary for the Administrative Agent until deposit is made into the Cash
Collateral Account.


 






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(b)Cash Collateral
Account. On or before the Closing Date, the Borrower shall have established a Cash Collateral Account with the Administrative
Agent, on behalf of the Lenders. All Collections from Account Debtors sent to the Lockbox shall be deposited directly on a daily
basis, and in any event no later than the first Business Day after the date of receipt thereof, into the Cash Collateral Account
in the identical form in which such Collections were made (except for any necessary endorsements) whether by cash or check. All
amounts deposited in the Cash Collateral Account from the Lockbox or any other source shall be under the sole and exclusive control
of the Administrative Agent. The Borrower shall have no interest in or control over such funds. The Cash Collateral Account shall
not be subject to any deduction, set off, banker’s lien or any other right in favor of any Person other than the Administrative
Agent.


 


(c)Operating
Account. The Borrower shall maintain, in its name, an Operating Account with the Administrative Agent, into which account
the Administrative Agent shall, from time to time, deposit proceeds of the Revolving Loans made to the Borrower for use by the
Companies in accordance with the provisions of Section 5.18 hereof. Unless otherwise agreed by the Administrative Agent and the
Borrower, any Revolving Loan requested by the Borrower and made under this Agreement shall be deposited into the Operating Account.
The Borrower shall not accumulate or maintain cash in the Operating Account or payroll or other such accounts, as of any date
of determination, in excess of checks outstanding against the Controlled Disbursement Account (or Controlled Disbursement Accounts)
and other deposit accounts approved by the Administrative Agent (such as medical benefit accounts, flexible spending accounts
and automated clearing house accounts) as of that date, and amounts necessary to meet minimum balance requirements.


 


(d)Controlled
Disbursement Account. The Borrower shall maintain, in the name of the Borrower, a Controlled Disbursement Account with the
Administrative Agent, on behalf of the Lenders. The Borrower may maintain more than one Controlled Disbursement Account. The Borrower
shall base its requests for Revolving Loans on, among other things, the daily balance of the Controlled Disbursement Account (or
Controlled Disbursement Accounts). The Borrower shall not, and shall not cause or permit any Company, to maintain cash in any
Controlled Disbursement Account, as of any date of determination, in excess of checks outstanding against such account as of that
date, and amounts necessary to meet minimum balance requirements.


 


(e)Lockbox
and Security Accounts. The Lockbox established pursuant to the Lockbox agreement and the Cash Collateral Account, the Operating
Account and the Controlled Disbursement Accounts shall be Security Accounts, with all cash, checks and other similar items of
payment in such accounts securing payment of the Secured Obligations.


 






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(f)Costs of
Collection. All reasonable costs of collection of the Accounts of the Borrower, including out-of-pocket expenses, administrative
and record-keeping costs, reasonable attorneys’ fees, and all service charges and costs related to the establishment and
maintenance of the Security Accounts shall be the sole responsibility of the Borrower, whether the same are incurred by the Administrative
Agent or the Borrower. The Borrower hereby indemnifies and holds the Administrative Agent harmless from and against any loss or
damage with respect to any deposits made in the Security Accounts that are dishonored or returned for any reason. If any deposits
are dishonored or returned unpaid for any reason, the Administrative Agent, in its sole discretion, may charge the amount thereof
against the Cash Collateral Account or any other Security Account or other Deposit Account of the Borrower. The Administrative
Agent shall not be liable for any loss or damage resulting from any error, omission, failure or negligence on the part of the
Administrative Agent, except losses or damages resulting from the Administrative Agent’s own gross negligence or willful
misconduct, as determined by a final judgment of a court of competent jurisdiction.


 


(g)Return of
Funds. Upon the payment in full of the Secured Obligations (other than continuing indemnification obligations) and the termination
of the Commitment hereunder, (i) the Administrative Agent’s security interests and other rights in funds in the Security
Accounts shall terminate, (ii) all rights to such funds shall revert to the Borrower, and (iii) the Administrative Agent will,
at the Borrower’s expense, take such steps as the Borrower may reasonably request to evidence the termination of such security
interests and to effect the return to the Borrower of such funds.


 


(h)Attorney-in-Fact
to Endorse Documents. The Administrative Agent, or the Administrative Agent’s designated agent, is hereby constituted
and appointed attorney-in-fact for the Borrower with authority and power to endorse any and all instruments, documents, and chattel
paper upon the failure of the Borrower to do so. Such authority and power, being coupled with an interest, shall be (i) irrevocable
until all of the Secured Obligations are paid, (ii) exercisable by the Administrative Agent at any time and without any request
upon the Borrower by the Administrative Agent to so endorse, and (iii) exercisable in the name of the Administrative Agent or
the Borrower. The Borrower hereby waives presentment, demand, notice of dishonor, protest, notice of protest, and any and all
other similar notices with respect thereto, regardless of the form of any endorsement thereof. The Administrative Agent shall
not be bound or obligated to take any action to preserve any rights therein against prior parties thereto.


 


Section 7.3. Collections
and Receipt of Proceeds by Administrative Agent. The Borrower hereby constitutes and appoints the Administrative Agent, or
the Administrative Agent’s designated agent, as the Borrower’s attorney-in-fact to exercise, at any time, all or any
of the following powers which, being coupled with an interest, shall be irrevocable until the complete and full payment of all
of the Secured Obligations:


 


(a)to receive,
retain, acquire, take, endorse, assign, deliver, accept, and deposit, in the name of the Administrative Agent or the Borrower,
any and all of the Borrower’s cash, instruments, chattel paper, documents, Proceeds of Accounts, Proceeds of Inventory,
collection of Accounts, and any other writings relating to any of the Collateral. The Borrower hereby waives presentment, demand,
notice of dishonor, protest, notice of protest, and any and all other similar notices with respect thereto, regardless of the
form of any endorsement thereof. The Administrative Agent shall not be bound or obligated to take any action to preserve any rights
therein against prior parties thereto;


 






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(b)to transmit
to Account Debtors, on any or all of the Borrower’s Accounts, after the occurrence of an Event of Default, notice of assignment
to the Administrative Agent, for the benefit of the Lenders, thereof and the security interest therein, and to request from such
Account Debtors at any time, in the name of the Administrative Agent or the Borrower, information concerning the Borrower’s
Accounts and the amounts owing thereon;


 


(c)after the occurrence
of an Event of Default, to transmit to purchasers of any or all of the Borrower’s Inventory, notice of the Administrative
Agent’s security interest therein, and to request from such purchasers at any time, in the name of the Administrative Agent
or the Borrower, information concerning the Borrower’s Inventory and the amounts owing thereon by such purchasers;


 


(d)after the occurrence
of an Event of Default, to notify and require Account Debtors on the Borrower’s Accounts and purchasers of the Borrower’s
Inventory to make payment of their indebtedness directly to the Administrative Agent;


 


(e)after the occurrence
of an Event of Default, to enter into or assent to such amendment, compromise, extension, release or other modification of any
kind of, or substitution for, the Accounts, or any thereof, as the Administrative Agent, in its sole discretion, may deem to be
advisable;


 


(f)after the occurrence
of an Event of Default, to enforce the Accounts or any thereof, or any other Collateral, by suit or otherwise, to maintain any
such suit or other proceeding in the name of the Administrative Agent or the Borrower, and to withdraw any such suit or other
proceeding. The Borrower agrees to lend every assistance requested by the Administrative Agent in respect of the foregoing, all
at no cost or expense to the Administrative Agent and including, without limitation, the furnishing of such witnesses and of such
records and other writings as the Administrative Agent may require in connection with making legal proof of any Account. The Borrower
agrees to reimburse the Administrative Agent in full for all court costs and attorneys’ fees and every other cost, expense
or liability, if any, incurred or paid by the Administrative Agent in connection with the foregoing, which obligation of the Borrower
shall constitute Obligations, shall be secured by the Collateral and shall bear interest, until paid, at the Default Rate;


 


(g)to take or
bring, in the name of the Administrative Agent or the Borrower, all steps, actions, suits, or proceedings deemed by the Administrative
Agent necessary or desirable to effect the receipt, enforcement, and collection of the Collateral; and


 


(h)to accept all
collections in any form relating to the Collateral, including remittances that may reflect deductions, and to deposit the same
into the Cash Collateral Account or, at the option of the Administrative Agent, to apply them as a payment against the Loans or
any other Secured Obligations in accordance with this Agreement.


 






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Section 7.4. Administrative
Agent’s Authority Under Pledged Notes. For the better protection of the Administrative Agent and the Lenders hereunder,
the Borrower has executed (or will execute, with respect to future Pledged Notes) an appropriate endorsement on (or separate from)
each Pledged Note and has deposited (or will deposit, with respect to future Pledged Notes) such Pledged Note with the Administrative
Agent, for the benefit of the Lenders. The Borrower irrevocably authorizes and empowers the Administrative Agent, for the benefit
of the Lenders, to (a) ask for, demand, collect and receive all payments of principal of and interest on the Pledged Notes; (b)
compromise and settle any dispute arising in respect of the foregoing; (c) execute and deliver vouchers, receipts and acquittances
in full discharge of the foregoing; (d) exercise, in the Administrative Agent’s discretion, any right, power or privilege
granted to the holder of any Pledged Note by the provisions thereof including, without limitation, the right to demand security
or to waive any default thereunder; (e) endorse the Borrower’s name to each check or other writing received by the Administrative
Agent as a payment or other proceeds of or otherwise in connection with any Pledged Note; (f) enforce delivery and payment of
the principal and/or interest on the Pledged Notes, in each case by suit or otherwise as the Administrative Agent may desire;
and (g) enforce the security, if any, for the Pledged Notes by instituting foreclosure proceedings, by conducting public or other
sales or otherwise, and to take all other steps as the Administrative Agent, in its discretion, may deem advisable in connection
with the forgoing; provided, however, that nothing contained or implied herein or elsewhere shall obligate the Administrative
Agent to institute any action, suit or proceeding or to make or do any other act or thing contemplated by this Section 7.4 or
prohibit the Administrative Agent from settling, withdrawing or dismissing any action, suit or proceeding or require the Administrative
Agent to preserve any other right of any kind in respect of the Pledged Notes and the security, if any, therefor.


 


Section 7.5. Commercial
Tort Claims. If any Credit Party shall at any time hold or acquire a Commercial Tort Claim, such Credit Party shall promptly
notify the Administrative Agent thereof in a writing signed by such Credit Party, that sets forth the details thereof and grants
to the Administrative Agent (for the benefit of the Lenders) a Lien thereon and on the Proceeds thereof, all upon the terms of
this Agreement, with such writing to be prepared by and in form and substance reasonably satisfactory to the Administrative Agent.


 


Section 7.6. Use of
Inventory and Equipment. Until the exercise by the Administrative Agent and the Required Lenders of their rights under Article
IX hereof, the Borrower may (a) retain possession of and use its Inventory and Equipment in any lawful manner not inconsistent
with this Agreement or with the terms, conditions, or provisions of any policy of insurance thereon; (b) sell or lease its Inventory
in the ordinary course of business or as otherwise expressly permitted by this Agreement; and (c) use and consume any raw materials
or supplies, the use and consumption of which are necessary in order to carry on the Borrower’s business.


 






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ARTICLE VIII. EVENTS OF DEFAULT


 


Any of the following specified
events shall constitute an Event of Default (each an “Event of Default”):


 


Section 8.1. Payments.
If the principal of or interest on any Loan, any amount owing in respect of any Letters of Credit, any amount owing pursuant to
Section 2.11 hereof, or any commitment or other fee, or any other Obligations owing hereunder, shall not be paid in full when
due and payable.


 


Section 8.2. Special
Covenants. If any Company shall fail or omit to perform and observe Section 5.7, 5.8, 5.9, 5.11, 5.12, 5.13, 5.15, 5.18, 5.26,
5.27 or 5.28 hereof.


 


Section 8.3. Other
Covenants.


 


(a)If any Company
shall fail or omit to perform and observe Section 5.3 or 5.4, and that Default shall not have been fully corrected within five
days after the earlier of (i) any Financial Officer of such Company becomes aware of the occurrence thereof, or (ii) the giving
of written notice thereof to the Borrower by the Administrative Agent that the specified Default is to be remedied.


 


(b)If any Company
shall fail or omit to perform or observe any agreement or other provision (other than those referred to in Section 8.1, 8.2 or
8.3(a) hereof) contained or referred to in this Agreement or any Related Writing that is on such Company’s part to be complied
with, and that Default shall not have been fully corrected within fifteen (15) days after the earlier of (i) any Financial Officer
of such Company becomes aware of the occurrence thereof, or (ii) the giving of written notice thereof to the Borrower by the Administrative
Agent or the Required Lenders that the specified Default is to be remedied.


 


Section 8.4. Representations
and Warranties. If any representation, warranty or statement made in or pursuant to this Agreement or any other Related Writing
or any other material information furnished by any Company to the Administrative Agent or the Lenders, or any thereof, shall be
false or erroneous in any material respect.


 


Section 8.5. Cross
Default. If any Company shall default in the payment of principal or interest due and owing under any Material Indebtedness
Agreement, beyond any period of grace provided with respect thereto or in the performance or observance of any other agreement,
term or condition contained in any agreement under which such obligation is created, if the effect of such default is to allow
the acceleration of the maturity of such Indebtedness or to permit the holder thereof to cause such Indebtedness to become due
prior to its stated maturity.


 


Section 8.6. ERISA
Default. The occurrence of one or more ERISA Events that (a) the Required Lenders determine could have a Material Adverse
Effect, or (b) results in a Lien on any of the assets of any Company.


 


Section 8.7. Change
in Control. If any Change in Control shall occur.


 






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Section 8.8. Judgments.
There is entered against any Company:


 


(a)a final judgment
or order for the payment of money by a court of competent jurisdiction, that remains unpaid or unstayed and undischarged for a
period (during which execution shall not be effectively stayed) of thirty (30) days after the date on which the right to appeal
has expired, provided that such occurrence shall constitute an Event of Default only if the aggregate of all such judgments for
all such Companies, shall exceed the lesser of (i) the Revolving Credit Availability or (ii) Five Hundred Thousand Dollars ($500,000)
(less any amount that will be covered by the proceeds of insurance and is not subject to dispute by the insurance provider); or


 


(b)any one or
more non-monetary final judgments that are not covered by insurance, or, if covered by insurance, for which the insurance company
has not agreed to or acknowledged coverage, and that, in either case, the Required Lenders reasonably determine have, or could
be expected to have, individually or in the aggregate, a Material Adverse Effect and, in either case, (i) enforcement proceedings
are commenced by the prevailing party or any creditor upon such judgment or order, or (ii) there is a period of three consecutive
Business Days during which a stay of enforcement of such judgment, by reason of a pending appeal or otherwise, is not in effect.


 


Section 8.9. Material
Adverse Change. There shall have occurred any condition or event that the Administrative Agent or the Required Lenders determine
has or is reasonably likely to have a Material Adverse Effect.


 


Section 8.10. Security.
If any Lien granted in this Agreement or any other Loan Document in favor of the Administrative Agent, for the benefit of the
Lenders, shall be determined to be (a) void, voidable or invalid, or is subordinated or not otherwise given the priority contemplated
by this Agreement and the Borrower (or the appropriate Credit Party) has failed to promptly execute appropriate documents to correct
such matters, or (b) unperfected as to any material amount of Collateral (as determined by the Administrative Agent, in its reasonable
discretion) and the Borrower (or the appropriate Credit Party) has failed to promptly execute appropriate documents to correct
such matters.


 


Section 8.11. Validity
of Loan Documents. If (a) any material provision, in the sole opinion of the Administrative Agent, of any Loan Document shall
at any time cease to be valid, binding and enforceable against any Credit Party; (b) the validity, binding effect or enforceability
of any Loan Document against any Credit Party shall be contested by any Credit Party; (c) any Credit Party shall deny that it
has any or further liability or obligation under any Loan Document; or (d) any Loan Document shall be terminated, invalidated
or set aside, or be declared ineffective or inoperative or in any way cease to give or provide to the Administrative Agent and
the Lenders the benefits purported to be created thereby.


 






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Section 8.12. Solvency.
If any Company (other than a Dormant Subsidiary) shall (a) except as permitted pursuant to Section 5.12 hereof, discontinue business;
(b) generally not pay its debts as such debts become due; (c) make a general assignment for the benefit of creditors; (d) apply
for or consent to the appointment of an interim receiver, a receiver, a receiver and manager, an administrator, a sequestrator,
a monitor, a custodian, a trustee, an interim trustee, a liquidator, an agent or any other similar official of all or a substantial
part of its assets or of such Company; (e) be adjudicated a debtor or insolvent or have entered against it an order for relief
under the Bankruptcy Code, or under any other bankruptcy insolvency, liquidation, winding-up, corporate or similar statute or
law, foreign, federal, state or provincial, in any applicable jurisdiction, now or hereafter existing, as any of the foregoing
may be amended from time to time, or other applicable statute for jurisdictions outside of the United States, as the case may
be; (f) file a voluntary petition under the Bankruptcy Code or seek relief under any bankruptcy or insolvency or analogous law
in any jurisdiction outside of the United States, or file a proposal or notice of intention to file such petition; (g) have an
involuntary proceeding under the Bankruptcy Code filed against it and the same shall not be controverted within ten (10) days,
or shall continue undismissed for a period of thirty (30) days from commencement of such proceeding or case; (h) file a petition,
an answer, an application or a proposal seeking reorganization or an arrangement with creditors or seeking to take advantage of
any other law (whether federal, provincial or state, or, if applicable, other jurisdiction) relating to relief of debtors, or
admit (by answer, by default or otherwise) the material allegations of a petition filed against it in any bankruptcy, reorganization,
insolvency or other proceeding (whether federal, provincial or state, or, if applicable, other jurisdiction) relating to relief
of debtors; (i) suffer or permit to continue unstayed and in effect for thirty (30) consecutive days any judgment, decree or order
entered by a court of competent jurisdiction, that approves a petition or an application or a proposal seeking its reorganization
or appoints an interim receiver, a receiver and manager, an administrator, custodian, trustee, interim trustee or liquidator of
all or a substantial part of its assets, or of such Company; (j) have an administrative receiver appointed over the whole or substantially
the whole of its assets, or of such Company; (k) have assets, the value of which is less than its liabilities; or (l) have a moratorium
declared in respect of any of its Indebtedness, or any analogous procedure or step is taken in any jurisdiction.


 


ARTICLE IX. REMEDIES UPON DEFAULT


 


Notwithstanding any contrary
provision or inference herein or elsewhere:


 


Section 9.1.
Optional Defaults. If any Event of Default referred to in Section 8.1, 8.2, 8.3, 8.4, 8.5, 8.6, 8.7, 8.8, 8.9, 8.10 or
8.11 hereof shall occur, the Administrative Agent may, with the consent of the Required Lenders, and shall, at the written request
of the Required Lenders, give written notice to the Borrower to:


 


(a)terminate the
Commitment, if not previously terminated, and, immediately upon such election, the obligations of the Lenders, and each thereof,
to make any further Loan, and the obligation of the Issuing Lender to issue any Letter of Credit, immediately shall be terminated;
and/or


 


(b)accelerate
the maturity of all of the Obligations (if the Obligations are not already due and payable), whereupon all of the Obligations
shall become and thereafter be immediately due and payable in full without any presentment or demand and without any further or
other notice of any kind, all of which are hereby waived by the Borrower.


 






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Section 9.2.
Automatic Defaults. If any Event of Default referred to in Section 8.12 hereof shall occur:


 


(a)all of the
Commitment shall automatically and immediately terminate, if not previously terminated, and no Lender thereafter shall be under
any obligation to grant any further Loan, nor shall the Issuing Lender be obligated to issue any Letter of Credit; and


 


(b)the principal
of and interest then outstanding on all of the Loans, and all of the other Obligations, shall thereupon become and thereafter
be immediately due and payable in full (if the Obligations are not already due and payable), all without any presentment, demand
or notice of any kind, which are hereby waived by the Borrower.


 


Section 9.3.
Letters of Credit. If the maturity of the Obligations shall be accelerated pursuant to Section 9.1 or 9.2 hereof, the Borrower
shall immediately deposit with the Administrative Agent, as security for the obligations of the Borrower and any Guarantor of
Payment to reimburse the Administrative Agent and the Revolving Lenders for any then outstanding Letters of Credit, cash equal
to one hundred five percent (105%) of the sum of the aggregate undrawn balance of any then outstanding Letters of Credit. The
Administrative Agent and the Lenders are hereby authorized, at their option, to deduct any and all such amounts from any deposit
balances then owing by any Lender (or any affiliate of such Lender, wherever located) to or for the credit or account of any Company,
as security for the obligations of the Borrower and any Guarantor of Payment to reimburse the Administrative Agent and the Revolving
Lenders for any then outstanding Letters of Credit.


 


Section 9.4.
Offsets. If there shall occur or exist any Event of Default referred to in Section 8.12 hereof or if the maturity of the
Obligations is accelerated pursuant to Section 9.1 or 9.2 hereof, each Lender shall have the right at any time to set off against,
and to appropriate and apply toward the payment of, any and all of the Obligations then owing by the Borrower or a Guarantor of
Payment to such Lender (including, without limitation, any participation purchased or to be purchased pursuant to Section 2.2(b),
2.2(c) or 9.5 hereof), whether or not the same shall then have matured, any and all deposit (general or special) balances and
all other indebtedness then held or owing by such Lender (including, without limitation, by branches and agencies or any affiliate
of such Lender, wherever located) to or for the credit or account of the Borrower or any Guarantor of Payment, all without notice
to or demand upon the Borrower or any other Person, all such notices and demands being hereby expressly waived by the Borrower.


 


Section 9.5.
Equalization Provisions.


 


(a)Equalization
Within Commitments Prior to an Equalization Event. Each Revolving Lender agrees with the other Revolving Lenders that, if
it at any time shall obtain any Advantage over the other Revolving Lenders, or any thereof, in respect of the Applicable Debt
(except as to Swing Loans and Letters of Credit prior to the Administrative Agent’s giving of notice to participate and
amounts under Article III hereof), such Revolving Lender, upon written request of the Administrative Agent, shall purchase from
the other Revolving Lenders, for cash and at par, such additional participation in the Applicable Debt as shall be necessary to
nullify the Advantage. Each Term Lender agrees with the other Term Lenders that, if it at any time shall obtain any Advantage
over the other Term Lenders, or any thereof, in respect of the Applicable Debt (except as to amounts under Article III hereof),
such Term Lender shall purchase from the other Term Lenders, for cash and at par, such additional participation in the Applicable
Debt as shall be necessary to nullify the Advantage.


 






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(b)Equalization
Between Commitments After an Equalization Event. After the occurrence of an Equalization Event, each Lender agrees with the
other Lenders that, if such Lender at any time shall obtain any Advantage over the other Lenders or any thereof determined in
respect of the Obligations (including Swing Loans and Letters of Credit but excluding amounts under Article III hereof) then outstanding,
such Lender shall purchase from the other Lenders, for cash and at par, such additional participation in the Obligations as shall
be necessary to nullify the Advantage in respect of the Obligations. For purposes of determining whether or not, after the occurrence
of an Equalization Event, an Advantage in respect of the Obligations shall exist, the Administrative Agent shall, as of the date
that the Equalization Event occurs:


 


(i)add
the Revolving Credit Exposure and the Term Loan Exposure to determine the equalization maximum amount (the “Equalization
Maximum Amount”); and


 


(ii)determine
an equalization percentage (the “Equalization Percentage”) for each Lender by dividing the aggregate amount of its
Lender Credit Exposure by the Equalization Maximum Amount.


 


After the date of an Equalization Event, the
Administrative Agent shall determine whether an Advantage exists among the Lenders by using the Equalization Percentage. Such
determination shall be conclusive absent manifest error.


 


(c)Recovery
of Amount. If any such Advantage resulting in the purchase of an additional participation as set forth in subsection (a) or
(b) hereof shall be recovered in whole or in part from the Lender receiving the Advantage, each such purchase shall be rescinded,
and the purchase price restored (but without interest unless the Lender receiving the Advantage is required to pay interest on
the Advantage to the Person recovering the Advantage from such Lender) ratably to the extent of the recovery.


 


(d)Application
and Sharing of Set-Off Amounts. Each Lender further agrees with the other Lenders that, if it at any time shall receive any
payment for or on behalf of the Borrower on any Indebtedness owing by the Borrower to that Lender (whether by voluntary payment,
by realization upon security, by reason of offset of any deposit or other Indebtedness, by counterclaim or cross action, by enforcement
of any right under any Loan Document, or otherwise), it shall apply such payment first to any and all Indebtedness owing by the
Borrower to that Lender pursuant to this Agreement (including, without limitation, any participation purchased or to be purchased
pursuant to this Section 9.5 or any other section of this Agreement). Each Credit Party agrees that any Lender so purchasing a
participation from the other Lenders, or any thereof, pursuant to this Section 9.5 may exercise all of its rights of payment (including
the right of set-off) with respect to such participation as fully as if such Lender were a direct creditor of such Credit Party
in the amount of such participation.


 






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Section 9.6.
Administrative Agent’s Rights to Occupy and Use the Collateral. The Administrative Agent and the Lenders shall at
all times have the rights and remedies of a secured party under the U.C.C., in addition to the rights and remedies of a secured
party provided elsewhere within this Agreement, in any other Related Writing executed by the Borrower or otherwise provided in
law or equity. Upon the occurrence of an Event of Default and at all times thereafter, the Administrative Agent may require the
Borrower to assemble the collateral securing the Secured Obligations, which the Borrower agrees to do, and make it available to
the Administrative Agent and the Lenders at a reasonably convenient place to be designated by the Administrative Agent. The Administrative
Agent may, with or without notice to or demand upon the Borrower and with or without the aid of legal process, make use of such
force as may be necessary to enter any premises where such collateral, or any thereof, may be found and to take possession thereof
(including anything found in or on such collateral that is not specifically described in this Agreement, each of which findings
shall be considered to be an accession to and a part of such collateral) and for that purpose may pursue such collateral wherever
the same may be found, without liability for trespass or damage caused thereby to the Borrower. After any delivery or taking of
possession of the collateral securing the Secured Obligations, or any thereof, pursuant to this Agreement, then, with or without
resort to the Borrower personally or any other Person or property, all of which the Borrower hereby waives, and upon such terms
and in such manner as the Administrative Agent may deem advisable, the Administrative Agent, in its discretion, may sell, assign,
transfer and deliver any of such collateral at any time, or from time to time. No prior notice need be given to the Borrower or
to any other Person in the case of any sale of such collateral that the Administrative Agent determines to be perishable or to
be declining speedily in value or that is customarily sold in any recognized market, but in any other case the Administrative
Agent shall give the Borrower not fewer than ten days prior notice of either the time and place of any public sale of such collateral
or of the time after which any private sale or other intended disposition thereof is to be made. The Borrower waives advertisement
of any such sale and (except to the extent specifically required by the preceding sentence) waives notice of any kind in respect
of any such sale. At any such public sale, the Administrative Agent or the Lenders may purchase such collateral, or any part thereof,
free from any right of redemption, all of which rights the Borrower hereby waives and releases. After deducting all Related Expenses,
and after paying all claims, if any, secured by Liens having precedence over this Agreement, the Administrative Agent may apply
the net proceeds of each such sale to or toward the payment of the Secured Obligations, whether or not then due, in such order
and by such division as the Administrative Agent, in its sole discretion, may deem advisable. Any excess, to the extent permitted
by law, shall be paid to the Borrower, and the Borrower shall remain liable for any deficiency. In addition, the Administrative
Agent shall at all times have the right to obtain new appraisals of the Borrower or any collateral securing the Secured Obligations,
the cost of which shall be paid by the Borrower.


 


Section 9.7.
Other Remedies. The remedies in this Article IX are in addition to, and not in limitation of, any other right, power, privilege,
or remedy, either in law, in equity, or otherwise, to which the Lenders may be entitled. The Administrative Agent shall exercise
the rights under this Article IX and all other collection efforts on behalf of the Lenders and no Lender shall act independently
with respect thereto, except as otherwise specifically set forth in this Agreement. In addition, the Administrative Agent shall
exercise remedies, pursuant to the Loan Documents, against collateral securing the Secured Obligations, and no affiliate of a
Lender shall act independently with respect thereto, except as otherwise specifically set forth in this Agreement.


 






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Section 9.8.
Application of Proceeds.


 


(a)Payments
Prior to Exercise of Remedies. Prior to the exercise by the Administrative Agent, on behalf of the Lenders, of remedies under
this Agreement or the other Loan Documents, all monies received by the Administrative Agent shall be applied, unless otherwise
required by the terms of the other Loan Documents or by applicable law, as follows (provided that the Administrative Agent shall
have the right at all times to apply any payment received from the Borrower first to the payment of all obligations (to the extent
not paid by the Borrower) incurred by the Administrative Agent pursuant to Sections 11.6 and 11.7 hereof and to the payment of
Related Expenses to the Administrative Agent):


 


(i)with
respect to payments received in connection with the Revolving Credit Commitment, to the Revolving Lenders; and


 


(ii)with
respect to payments received in connection with the Term Loan Commitment, to the Term Loan Lenders.


 


(b)Payments
Subsequent to Exercise of Remedies. After the exercise by the Administrative Agent or the Required Lenders of remedies under
this Agreement or the other Loan Documents, all monies received by the Administrative Agent shall be applied, unless otherwise
required by the terms of the other Loan Documents or by applicable law, as follows:


 


(i)first,
to the payment of all obligations (to the extent not paid by the Borrower) incurred by the Administrative Agent pursuant to Sections
11.6 and 11.7 hereof and to the payment of Related Expenses to the Administrative Agent;


 


(ii)second,
to the payment pro rata of (A) interest then accrued and payable on the outstanding Loans, (B) any fees then accrued and payable
to the Administrative Agent, (C) any fees then accrued and payable to the Issuing Lender or the holders of the Letter of Credit
Commitment in respect of the Letter of Credit Exposure, (D) any commitment fees, amendment fees and similar fees shared pro rata
among the Lenders under this Agreement that are then accrued and payable, and (E) to the extent not paid by the Borrower, to the
obligations owing to the Lenders (other than the Administrative Agent) pursuant to Sections 11.6 and 11.7 hereof;


 


(iii)third,
for payment of (A) principal outstanding on the Loans and the Letter of Credit Exposure, on a pro rata basis to the Lenders, based
upon each such Lender’s Overall Commitment Percentage, provided that the amounts payable in respect of the Letter of Credit
Exposure shall be held and applied by the Administrative Agent as security for the reimbursement obligations in respect thereof,
and, if any Letter of Credit shall expire without being drawn, then the amount with respect to such Letter of Credit shall be
distributed to the Lenders, on a pro rata basis in accordance with this subpart (iii), (B) the Indebtedness under any Hedge Agreement
with a Lender (or an entity that is an affiliate of a then existing Lender), such amount to be based upon the net termination
obligation of the applicable Company under such Hedge Agreement, and (C) the Bank Product Obligations owing to a Lender (or an
entity that is an affiliate of a then existing Lender) under Bank Product Agreements; with such payment to be pro rata among (A),
(B) and (C) of this subpart (iii);


 






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(iv)fourth,
to any remaining Secured Obligations; and


 


(v)finally,
any remaining surplus after all of the Secured Obligations have been paid in full, to the Borrower or to whomsoever shall be lawfully
entitled thereto.


 


Each Lender hereby agrees to promptly provide
all information reasonably requested by the Administrative Agent regarding any Bank Product Obligations owing to such Lender (or
affiliate of such Lender) or any Hedge Agreement entered into by a Company with such Lender (or affiliate of such Lender), and
each such Lender, on behalf of itself and any of its affiliates, hereby agrees to promptly provide notice to the Administrative
Agent upon such Lender (or any of its affiliates) entering into any such Hedge Agreement or Bank Product Agreement. 


 


ARTICLE X. THE ADMINISTRATIVE AGENT


 


The Lenders authorize
KeyBank and KeyBank hereby agrees to act as agent for the Lenders in respect of this Agreement upon the terms and conditions set
forth elsewhere in this Agreement, and upon the following terms and conditions:


 


Section 10.1. Appointment
and Authorization.


 


(a)General.
Each Lender hereby irrevocably appoints and authorizes the Administrative Agent to take such action as agent on its behalf and
to exercise such powers hereunder as are delegated to the Administrative Agent by the terms hereof, together with such powers
as are reasonably incidental thereto. Neither the Administrative Agent nor any of its affiliates, directors, officers, attorneys
or employees shall (i) be liable for any action taken or omitted to be taken by it or them hereunder or in connection herewith,
except for its or their own gross negligence or willful misconduct (as determined by a final non-appealable judgment of a court
of competent jurisdiction), or be responsible in any manner to any of the Lenders for the effectiveness, enforceability, genuineness,
validity or due execution of this Agreement or any other Loan Documents, (ii) be under any obligation to any Lender to ascertain
or to inquire as to the performance or observance of any of the terms, covenants or conditions hereof or thereof on the part of
the Borrower or any other Company, or the financial condition of the Borrower or any other Company, or (iii) be liable to any
of the Companies for consequential damages resulting from any breach of contract, tort or other wrong in connection with the negotiation,
documentation, administration or collection of the Loans or Letters of Credit or any of the Loan Documents. Notwithstanding any
provision to the contrary contained in this Agreement or in any other Loan Document, the Administrative Agent shall not have any
duty or responsibility except those expressly set forth herein, nor shall the Administrative Agent have or be deemed to have any
fiduciary relationship with any Lender or participant, and no implied covenants, functions, responsibilities, duties, obligations
or liabilities shall be read into this Agreement or any other Loan Document or otherwise exist against the Administrative Agent.
Without limiting the generality of the foregoing sentence, the use of the term “agent” herein and in other Loan Documents
with reference to the Administrative Agent is not intended to connote any fiduciary or other implied (or express) obligations
arising under agency doctrine of any applicable law. Instead, such term is used merely as a matter of market custom, and is intended
to create or reflect only an administrative relationship between independent contracting parties.


 






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(b)Bank Products
and Hedging Products. Each Lender that is providing Bank Products or products in connection with a Hedge Agreement (or whose
affiliate is providing such products) hereby irrevocably authorizes the Administrative Agent to take such action as agent on its
behalf (and its affiliate’s behalf) with respect to the collateral securing the Secured Obligations and the realization
of payments with respect thereto pursuant to Section 9.8(b)(iii) hereof. The Borrower and each Lender agree that the indemnification
and reimbursement provisions of this Agreement shall be equally applicable to the actions of the Administrative Agent pursuant
to this subsection. Each Lender hereby represents and warrants to the Administrative Agent that it has the authority to authorize
the Administrative Agent as set forth above.


 


Section 10.2. Note
Holders. The Administrative Agent may treat the payee of any Note as the holder thereof (or, if there is no Note, the holder
of the interest as reflected on the books and records of the Administrative Agent) until written notice of transfer shall have
been filed with the Administrative Agent, signed by such payee and in form satisfactory to the Administrative Agent.


 


Section 10.3. Consultation
With Counsel. The Administrative Agent may consult with legal counsel selected by the Administrative Agent and shall not be
liable for any action taken or suffered in good faith by the Administrative Agent in accordance with the opinion of such counsel.


 


Section 10.4. Documents.
The Administrative Agent shall not be under any duty to examine into or pass upon the validity, effectiveness, genuineness or
value of any Loan Document or any other Related Writing furnished pursuant hereto or in connection herewith or the value of any
collateral obtained hereunder, and the Administrative Agent shall be entitled to assume that the same are valid, effective and
genuine and what they purport to be.


 


Section 10.5. Administrative
Agent and Affiliates. KeyBank and its affiliates may make loans to, issue letters of credit for the account of, accept deposits
from, acquire equity interests in and generally engage in any kind of banking, trust, financial advisory, underwriting or other
business with the Companies and Affiliates as though KeyBank were not the Administrative Agent hereunder and without notice to
or consent of any Lender. Each Lender acknowledges that, pursuant to such activities, KeyBank or its affiliates may receive information
regarding any Company or any Affiliate (including information that may be subject to confidentiality obligations in favor of such
Company or such Affiliate) and acknowledge that the Administrative Agent shall be under no obligation to provide such information
to other Lenders. With respect to Loans and Letters of Credit (if any), KeyBank and its affiliates shall have the same rights
and powers under this Agreement as any other Lender and may exercise the same as though KeyBank were not the Administrative Agent,
and the terms “Lender” and “Lenders” include KeyBank and its affiliates, to the extent applicable, in
their individual capacities.


 






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Section 10.6. Knowledge
or Notice of Default. The Administrative Agent shall not be deemed to have knowledge or notice of the occurrence of any Default
or Event of Default unless the Administrative Agent has received written notice from a Lender or the Borrower referring to this
Agreement, describing such Default or Event of Default and stating that such notice is a “notice of default”. In the
event that the Administrative Agent receives such a notice, the Administrative Agent shall give notice thereof to the Lenders.
The Administrative Agent shall take such action with respect to such Default or Event of Default as shall be reasonably directed
by the Required Lenders (or, if so specified by this Agreement, all Lenders); provided that, unless and until the Administrative
Agent shall have received such directions, the Administrative Agent may (but shall not be obligated to) take such action, or refrain
from taking such action, with respect to such Default or Event of Default as it shall deem advisable, in its discretion, for the
protection of the interests of the Lenders.


 


Section 10.7. Action
by Administrative Agent. Subject to the other terms and conditions hereof, so long as the Administrative Agent shall be entitled,
pursuant to Section 10.6 hereof, to assume that no Default or Event of Default shall have occurred and be continuing, the Administrative
Agent shall be entitled to use its discretion with respect to exercising or refraining from exercising any rights that may be
vested in it by, or with respect to taking or refraining from taking any action or actions that it may be able to take under or
in respect of, this Agreement. The Administrative Agent shall incur no liability under or in respect of this Agreement by acting
upon any notice, certificate, warranty or other paper or instrument believed by it to be genuine or authentic or to be signed
by the proper party or parties, or with respect to anything that it may do or refrain from doing in the reasonable exercise of
its judgment, or that may seem to it to be necessary or desirable in the premises. Without limiting the foregoing, no Lender shall
have any right of action whatsoever against the Administrative Agent as a result of the Administrative Agent’s acting or
refraining from acting hereunder in accordance with the instructions of the Required Lenders.


 


Section 10.8. Release
of Collateral or Guarantor of Payment. In the event of a merger, transfer of assets or other transaction permitted pursuant
to Section 5.12 hereof (or otherwise permitted pursuant to this Agreement) where the proceeds of such merger, transfer or other
transaction are applied in accordance with the terms of this Agreement to the extent required to be so applied, or in the event
of a merger, consolidation, dissolution or similar event, permitted pursuant to this Agreement, the Administrative Agent, at the
request and expense of the Borrower, is hereby authorized by the Lenders to (a) release the relevant Collateral from this Agreement
or any other Loan Document, (b) release a Guarantor of Payment in connection with such permitted transfer or event, and (c) duly
assign, transfer and deliver to the affected Person (without recourse and without any representation or warranty) such Collateral
as is then (or has been) so transferred or released and as may be in the possession of the Administrative Agent and has not theretofore
been released pursuant to this Agreement.


 






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Section 10.9. Delegation
of Duties. The Administrative Agent may execute any of its duties under this Agreement or any other Loan Document by or through
agents, employees or attorneys-in-fact and shall be entitled to advice of counsel and other consultants or experts concerning
all matters pertaining to such duties. The Administrative Agent shall not be responsible for the negligence or misconduct of any
agent or attorney-in-fact that it selects in the absence of gross negligence or willful misconduct, as determined by a final and
non-appealable judgment of a court of competent jurisdiction.


 


Section 10.10. Indemnification
of Administrative Agent. The Lenders agree to indemnify the Administrative Agent (to the extent not reimbursed by the Borrower)
ratably, according to their respective Overall Commitment Percentages, from and against any and all liabilities, obligations,
losses, damages, penalties, actions, judgments, suits, costs, expenses (including attorneys’ fees and expenses) or disbursements
of any kind or nature whatsoever that may be imposed on, incurred by or asserted against the Administrative Agent in its capacity
as agent in any way relating to or arising out of this Agreement or any other Loan Document, or any action taken or omitted by
the Administrative Agent with respect to this Agreement or any other Loan Document, provided that no Lender shall be liable for
any portion of such liabilities, obligations, losses, damages, penalties, actions, judgments, suits, costs, expenses (including
attorneys’ fees and expenses) or disbursements resulting from the Administrative Agent’s gross negligence or willful
misconduct, as determined by a final and non-appealable judgment of a court of competent jurisdiction, or from any action taken
or omitted by the Administrative Agent in any capacity other than as agent under this Agreement or any other Loan Document. No
action taken in accordance with the directions of the Required Lenders shall be deemed to constitute gross negligence or willful
misconduct for purposes of this Section 10.10. The undertaking in this Section 10.10 shall survive repayment of the Loans, cancellation
of the Notes, if any, expiration or termination of the Letters of Credit, termination of the Commitment, any foreclosure under,
or modification, release or discharge of, any or all of the Loan Documents, termination of this Agreement and the resignation
or replacement of the agent.


 


Section 10.11. Successor
Administrative Agent. The Administrative Agent may resign as agent hereunder by giving not fewer than thirty (30) days prior
written notice to the Borrower and the Lenders. If the Administrative Agent shall resign under this Agreement, then either (a)
the Required Lenders shall appoint from among the Lenders a successor agent for the Lenders (with the consent of the Borrower
so long as an Event of Default does not exist and which consent shall not be unreasonably withheld), or (b) if a successor agent
shall not be so appointed and approved within the thirty (30) day period following the Administrative Agent’s notice to
the Lenders of its resignation, then the Administrative Agent shall appoint a successor agent that shall serve as agent until
such time as the Required Lenders appoint a successor agent. If no successor agent has accepted appointment as the Administrative
Agent by the date that is thirty (30) days following a retiring Administrative Agent’s notice of resignation, the retiring
Administrative Agent’s resignation shall nevertheless thereupon become effective, and the Lenders shall assume and perform
all of the duties of the Administrative Agent hereunder until such time, if any, as the Required Lenders appoint a successor agent
as provided for above. Upon its appointment, such successor agent shall succeed to the rights, powers and duties as agent, and
the term “Administrative Agent” means such successor effective upon its appointment, and the former agent’s
rights, powers and duties as agent shall be terminated without any other or further act or deed on the part of such former agent
or any of the parties to this Agreement. After any retiring Administrative Agent’s resignation as the Administrative Agent,
the provisions of this Article X shall inure to its benefit as to any actions taken or omitted to be taken by it while it was
the Administrative Agent under this Agreement and the other Loan Documents.


 






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Section 10.12. Issuing
Lender. The Issuing Lender shall act on behalf of the Revolving Lenders with respect to any Letters of Credit issued by the
Issuing Lender and the documents associated therewith. The Issuing Lender shall have all of the benefits and immunities (a) provided
to the Administrative Agent in this Article X with respect to any acts taken or omissions suffered by the Issuing Lender in connection
with the Letters of Credit and the applications and agreements for letters of credit pertaining to such Letters of Credit as fully
as if the term “Administrative Agent”, as used in this Article X, included the Issuing Lender with respect to such
acts or omissions, and (b) as additionally provided in this Agreement with respect to the Issuing Lender.


 


Section 10.13. Swing
Line Lender. The Swing Line Lender shall act on behalf of the Revolving Lenders with respect to any Swing Loans. The Swing
Line Lender shall have all of the benefits and immunities (a) provided to the Administrative Agent in this Article X with respect
to any acts taken or omissions suffered by the Swing Line Lender in connection with the Swing Loans as fully as if the term “Administrative
Agent”, as used in this Article X, included the Swing Line Lender with respect to such acts or omissions, and (b) as additionally
provided in this Agreement with respect to the Swing Line Lender.


 


Section 10.14. Administrative
Agent May File Proofs of Claim. In case of the pendency of any receivership, insolvency, liquidation, bankruptcy, reorganization,
arrangement, adjustment, composition or other judicial proceeding relative to any Credit Party, (a) the Administrative Agent (irrespective
of whether the principal of any Loan shall then be due and payable as herein expressed or by declaration or otherwise and irrespective
of whether the Administrative Agent shall have made any demand on the Borrower) shall be entitled and empowered, by intervention
in such proceeding or otherwise, to (i) file and prove a claim for the whole amount of the principal and interest owing and unpaid
in respect of the Loans, and all other Obligations that are owing and unpaid and to file such other documents as may be necessary
or advisable in order to have the claims of the Lenders and the Administrative Agent (including any claim for the reasonable compensation,
expenses, disbursements and advances of the Lenders and the Administrative Agent and their respective agents and counsel and all
other amounts due the Lenders and the Administrative Agent) allowed in such judicial proceedings, and (ii) collect and receive
any monies or other property payable or deliverable on any such claims and to distribute the same; and (b) any custodian, receiver,
assignee, trustee, liquidator, sequestrator or other similar official in any such judicial proceeding is hereby authorized by
each Lender to make such payments to the Administrative Agent and, in the event that the Administrative Agent shall consent to
the making of such payments directly to the Lenders, to pay to the Administrative Agent any amount due for the reasonable compensation,
expenses, disbursements and advances of the Administrative Agent and its agents and counsel, and any other amounts due the Administrative
Agent. Nothing contained herein shall be deemed to authorize the Administrative Agent to authorize or consent to or accept or
adopt on behalf of any Lender any plan of reorganization, arrangement, adjustment or composition affecting the Obligations or
the rights of any Lender or to authorize the Administrative Agent to vote in respect of the claim of any Lender in any such proceeding.


 






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Section 10.15. No Reliance
on Administrative Agent’s Customer Identification Program. Each Lender acknowledges and agrees that neither such Lender,
nor any of its affiliates, participants or assignees, may rely on the Administrative Agent to carry out such Lender’s or
its affiliate’s, participant’s or assignee’s customer identification program, or other obligations required
or imposed under or pursuant to the Patriot Act or the regulations thereunder, including the regulations contained in 31 CFR 103.121
(as hereafter amended or replaced, the “CIP Regulations”), or any other anti-terrorism law, including any programs
involving any of the following items relating to or in connection with the Borrower, its Affiliates or agents, the Loan Documents
or the transactions hereunder: (a) any identity verification procedures, (b) any record keeping, (c) any comparisons with government
lists, (d) any customer notices or (e) any other procedures required under the CIP Regulations or such other laws.


 


Section 10.16. Other
Agents. The Administrative Agent shall have the continuing right from time to time to designate one or more Lenders (or its
or their affiliates) as “syndication agent”, “co-syndication agent”, “documentation agent”,
“co-documentation agent”, “book runner”, “lead arranger”, “joint lead arranger”,
“arrangers” or other designations for purposes hereof. Any such designation referenced in the previous sentence or
listed on the cover of this Agreement shall have no substantive effect, and any such Lender and its affiliates so referenced or
listed shall have no additional powers, duties, responsibilities or liabilities as a result thereof, except in its capacity, as
applicable, as the Administrative Agent, a Lender, the Swing Line Lender or the Issuing Lender hereunder. 


 


ARTICLE XI. MISCELLANEOUS


 


Section 11.1. Lenders’
Independent Investigation. Each Lender, by its signature to this Agreement, acknowledges and agrees that the Administrative
Agent has made no representation or warranty, express or implied, with respect to the creditworthiness, financial condition, or
any other condition of any Company or with respect to the statements contained in any information memorandum furnished in connection
herewith or in any other oral or written communication between the Administrative Agent and such Lender. Each Lender represents
that it has made and shall continue to make its own independent investigation of the creditworthiness, financial condition and
affairs of the Companies in connection with the extension of credit hereunder, and agrees that the Administrative Agent has no
duty or responsibility, either initially or on a continuing basis, to provide any Lender with any credit or other information
with respect thereto (other than such notices as may be expressly required to be given by the Administrative Agent to the Lenders
hereunder), whether coming into its possession before the first Credit Event hereunder or at any time or times thereafter. Each
Lender further represents that it has reviewed each of the Loan Documents.


 






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Section 11.2. No Waiver;
Cumulative Remedies. No omission or course of dealing on the part of the Administrative Agent, any Lender or the holder of
any Note (or, if there is no Note, the holder of the interest as reflected on the books and records of the Administrative Agent)
in exercising any right, power or remedy hereunder or under any of the other Loan Documents shall operate as a waiver thereof;
nor shall any single or partial exercise of any such right, power or remedy preclude any other or further exercise thereof or
the exercise of any other right, power or remedy hereunder or under any of the Loan Documents. The remedies herein provided are
cumulative and in addition to any other rights, powers or privileges held under any of the Loan Documents or by operation of law,
by contract or otherwise.


 


Section 11.3. Amendments,
Waivers and Consents.


 


(a)General
Rule. No amendment, modification, termination, or waiver of any provision of any Loan Document nor consent to any variance
therefrom, shall be effective unless the same shall be in writing and signed by the Required Lenders and then such waiver or consent
shall be effective only in the specific instance and for the specific purpose for which given.


 


(b)Exceptions
to the General Rule. Notwithstanding the provisions of subsection (a) of this Section 11.3:


 


(i)Consent
of Affected Lenders Required. No amendment, modification, waiver or consent shall (A) extend or increase the Commitment of
any Lender without the written consent of such Lender, (B) extend the date scheduled for payment of any principal (excluding mandatory
prepayments) of or interest on the Loans or Letter of Credit reimbursement obligations or fees payable hereunder without the written
consent of each Lender directly affected thereby, (C) reduce or forgive the principal amount of any Loan, the stated rate of interest
thereon (provided that the institution of the Default Rate or post default interest and a subsequent removal of the Default Rate
or post default interest shall not constitute a decrease in interest rate pursuant to this Section 11.3) or the stated rate of
fees payable hereunder, without the consent of each Lender directly affected thereby, (D) change the manner of pro rata application
of any payments made to the Lenders hereunder, without the consent of each Lender directly affected thereby, (E) without the unanimous
consent of the Lenders, change any percentage voting requirement, voting rights, or the Required Lenders definition in this Agreement,
(F) without the unanimous consent of the Lenders, release the Borrower or any Guarantor of Payment or of any material amount of
collateral securing the Secured Obligations, except in connection with a transaction specifically permitted hereunder, (G) without
the unanimous consent of the Lenders, amend this Section 11.3 or Section 9.5 hereof, or (H) increase the advance rates set forth
in the definition of Borrowing Base or add new categories of eligible assets without the consent of each Revolving Lender (other
than any Defaulting Lender or Insolvent Lender).


 


(ii)Provisions
Relating to Special Rights and Duties. No provision of this Agreement affecting the Administrative Agent in its capacity as
such shall be amended, modified or waived without the consent of the Administrative Agent. The Administrative Agent Fee Letter
may be amended or modified by the Administrative Agent and the Borrower without the consent of any other Lender. No provision
of this Agreement relating to the rights or duties of the Issuing Lender in its capacity as such shall be amended, modified or
waived without the consent of the Issuing Lender. No provision of this Agreement relating to the rights or duties of the Swing
Line Lender in its capacity as such shall be amended, modified or waived without the consent of the Swing Line Lender.


 






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(iii) Technical
and Conforming Modifications. Notwithstanding the foregoing, technical and conforming modifications to the Loan Documents may
be made with the consent of the Borrower and the Administrative Agent (A) if such modifications are not adverse to the Lenders
and are requested by Governmental Authorities, or (B) to cure any ambiguity, defect or inconsistency.


 


(c)Replacement
of Non-Consenting Lender. If, in connection with any proposed amendment, waiver or consent hereunder, the consent of all Lenders
is required, but only the consent of Required Lenders is obtained, (any Lender withholding consent as described in this subsection
(c) being referred to as a “Non-Consenting Lender”), then, so long as the Administrative Agent is not the Non-Consenting
Lender, the Administrative Agent may (and shall, if requested by the Borrower), at the sole expense of the Borrower, upon notice
to such Non-Consenting Lender and the Borrower, require such Non-Consenting Lender to assign and delegate, without recourse (in
accordance with the restrictions contained in Section 11.11 hereof) all of its interests, rights and obligations under this Agreement
to a financial institution acceptable to the Administrative Agent and the Borrower that shall assume such obligations (which assignee
may be another Lender, if a Lender accepts such assignment); provided that such Non-Consenting Lender shall have received payment
of an amount equal to the outstanding principal of its Loans, accrued interest thereon, accrued fees and all other amounts payable
to it hereunder, from such financial institution (to the extent of such outstanding principal and accrued interest and fees) or
the Borrower (in the case of all other amounts, including any breakage compensation under Article III hereof).


 


(d)Generally.
Notice of amendments, waivers or consents ratified by the Lenders hereunder shall be forwarded by the Administrative Agent to
all of the Lenders. Each Lender or other holder of a Note, or if there is no Note, the holder of the interest as reflected on
the books and records of the Administrative Agent (or interest in any Loan or Letter of Credit) shall be bound by any amendment,
waiver or consent obtained as authorized by this Section 11.3, regardless of its failure to agree thereto.


 


Section 11.4. Notices.
All notices, requests, demands and other communications provided for hereunder shall be in writing and, if to the Borrower, mailed
or delivered to it, addressed to it at the address specified on the signature pages of this Agreement, except as otherwise specifically
provided in 5.3(n) hereof, if to the Administrative Agent or a Lender, mailed or delivered to it, addressed to the address of
the Administrative Agent or such Lender specified on the signature pages of this Agreement, or, as to each party, at such other
address as shall be designated by such party in a written notice to each of the other parties. All notices, statements, requests,
demands and other communications provided for hereunder shall be deemed to be given or made when delivered (if received during
normal business hours on a Business Day, such Business Day or otherwise the following Business Day), or two Business Days after
being deposited in the mails with postage prepaid by registered or certified mail, addressed as aforesaid, or sent by facsimile
or electronic communication, in each case of facsimile or electronic communication with telephonic confirmation of receipt. All
notices hereunder shall not be effective until received. For purposes of Article II hereof, the Administrative Agent shall be
entitled to rely on telephonic instructions from any person that the Administrative Agent in good faith believes is an Authorized
Officer, and the Borrower shall hold the Administrative Agent and each Lender harmless from any loss, cost or expense resulting
from any such reliance.


 






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Section 11.5. Approved
Electronic Communication System.


 


(a)Unless otherwise
specifically identified therein, each posting to an Approved Electronic Communication System shall be deemed to be a representation
and warranty by the Borrower, the Authorized Officer submitting the information to the Approved Electronic Communication System,
and, if such Authorized Officer is not a Financial Officer, the Financial Officer who authorized such Authorized Officer to submit
such information, as of the date of such posting, of the accuracy of the information provided with respect thereto, and that each
of the representations and warranties contained in this Agreement and the other Loan Documents are true and correct as if made
on and as of the date of such posting.


 


(b)Although the
Approved Electronic Communication System is secured with generally-applicable security procedures and policies implemented or
modified from time to time, the Borrower and each other Credit Party acknowledge and agree that the distribution of material through
an electronic medium is not necessarily secure and that there are confidentiality and other risks associated with such distribution.
In consideration for the convenience and other benefits afforded by such distribution and for the other consideration provided
hereunder, the receipt and sufficiency of which is hereby acknowledged, the Borrower and each other Credit Party hereby approves
of the use of the Approved Electronic Communication System and understands and assumes the risks of using such forms of communication.


 


(c)The Approved
Electronic Communication System is provided “as is” and “as available”. Neither the Administrative Agent
nor any of the Administrative Agent’s affiliates, officers, directors, attorneys, agents or employees warrant the accuracy,
adequacy or completeness of the Approved Electronic Communication System and each expressly disclaims any liability for errors
or omissions in the Approved Electronic Communication System. No warranty of any kind, express, implied or statutory, including,
without limitation, any warranty of merchantability, fitness for a particular purpose, non-infringement of third party rights
or freedom from viruses or other code defects, is made by the Administrative Agent (or any of the Administrative Agent’s
affiliates, officers, directors, attorneys, agents or employees) in connection with the Approved Electronic Communication System.


 


(d)The Borrower
and each other Credit Party agrees that the Administrative Agent may, but shall not be obligated to, store information provided
through the Approved Electronic Communication System in accordance with the Administrative Agent’s generally-applicable
document retention procedures and policies in effect from time to time.


 






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Section 11.6. Costs,
Expenses and Documentary Taxes. The Borrower agrees to pay on demand all costs and expenses of the Administrative Agent and
all Related Expenses, including but not limited to (a) syndication, administration, travel and out-of-pocket expenses, including
but not limited to attorneys’ fees and expenses, of the Administrative Agent in connection with the preparation, negotiation
and closing of the Loan Documents and the administration of the Loan Documents, and the collection and disbursement of all funds
hereunder and the other instruments and documents to be delivered hereunder, (b) extraordinary expenses of the Administrative
Agent in connection with the administration of the Loan Documents and the other instruments and documents to be delivered hereunder,
and (c) the reasonable fees and expenses of special counsel for the Administrative Agent, with respect to the foregoing, and of
local counsel, if any, who may be retained by said special counsel with respect thereto. The Borrower also agrees to pay on demand
all costs and expenses (including Related Expenses) of the Administrative Agent and the Lenders, including reasonable attorneys’
fees and expenses, in connection with the restructuring or enforcement of, or collection or protection of its rights in connection
with, the Obligations, this Agreement or any other Related Writing. In addition, the Borrower shall pay any and all stamp, transfer,
documentary and other taxes, assessments, charges and fees payable or determined to be payable in connection with the execution
and delivery of the Loan Documents, and the other instruments and documents to be delivered hereunder, and agrees to hold the
Administrative Agent and each Lender harmless from and against any and all liabilities with respect to or resulting from any delay
in paying or failure to pay such taxes or fees. All obligations provided for in this Section 11.6 shall survive any termination
of this Agreement.


 


Section 11.7. Indemnification.
The Borrower agrees to defend, indemnify and hold harmless the Administrative Agent and the Lenders (and their respective affiliates,
officers, directors, attorneys, agents and employees) from and against any and all liabilities, obligations, losses, damages,
penalties, actions, judgments, suits, costs, expenses (including attorneys’ fees) or disbursements of any kind or nature
whatsoever that may be imposed on, incurred by or asserted against the Administrative Agent or any Lender in connection with any
investigative, administrative or judicial proceeding (whether or not such Lender or the Administrative Agent shall be designated
a party thereto) or any other claim by any Person relating to or arising out of any Loan Document or any actual or proposed use
of proceeds of the Loans or any of the Obligations, or any activities of any Company or its Affiliates; provided that no Lender
nor the Administrative Agent shall have the right to be indemnified under this Section 11.7 for its own gross negligence or willful
misconduct, as determined by a final and non-appealable judgment of a court of competent jurisdiction. All obligations provided
for in this Section 11.7 shall survive any termination of this Agreement.


 


Section 11.8. Obligations
Several; No Fiduciary Obligations. The obligations of the Lenders hereunder are several and not joint. Nothing contained in
this Agreement and no action taken by the Administrative Agent or the Lenders pursuant hereto shall be deemed to constitute the
Administrative Agent or the Lenders a partnership, association, joint venture or other entity. No default by any Lender hereunder
shall excuse the other Lenders from any obligation under this Agreement; but no Lender shall have or acquire any additional obligation
of any kind by reason of such default. The relationship between the Borrower and the Lenders with respect to the Loan Documents
and the other Related Writings is and shall be solely that of debtor and creditors, respectively, and neither the Administrative
Agent nor any Lender shall have any fiduciary obligation toward any Credit Party with respect to any such documents or the transactions
contemplated thereby.


 






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Section 11.9. Execution
in Counterparts. This Agreement may be executed in any number of counterparts and by different parties hereto in separate
counterparts, and by facsimile or other electronic signature, each of which counterparts when so executed and delivered shall
be deemed to be an original and all of which taken together shall constitute but one and the same agreement.


 


Section 11.10. Binding
Effect; Borrower’s Assignment. This Agreement shall become effective when it shall have been executed by the Borrower,
the Administrative Agent and each Lender and thereafter shall be binding upon and inure to the benefit of the Borrower, the Administrative
Agent and each of the Lenders and their respective successors and permitted assigns, except that the Borrower shall not have the
right to assign its rights hereunder or any interest herein without the prior written consent of the Administrative Agent and
all of the Lenders.


 


Section 11.11. Lender
Assignments.


 


(a)Assignments
of Commitments. Each Lender shall have the right at any time or times to assign to an Eligible Transferee (other than to a
Defaulting Lender), without recourse, all or a percentage of all of the following: (i) such Lender’s Commitment, (ii) all
Loans made by that Lender, (iii) such Lender’s Notes, and (iv) such Lender’s interest in any Letter of Credit or Swing
Loan, and any participation purchased pursuant to Section 2.2(b) or (c) or Section 9.5 hereof. Each Lender shall at all times
maintain the same Applicable Commitment Percentage (as rounded to the sixth decimal) with respect to the Revolving Credit Commitment
and the Term Loan Commitment.


 


(b)Prior Consent.
No assignment may be consummated pursuant to this Section 11.11 without the prior written consent of the Borrower and the Administrative
Agent (other than an assignment by any Lender to any affiliate of a Lender which affiliate is an Eligible Transferee and either
wholly-owned by a Lender or is wholly-owned by a Person that wholly owns, either directly or indirectly, a Lender, or to another
Lender), which consent of the Borrower and the Administrative Agent shall not be unreasonably withheld; provided that (i) the
consent of the Borrower shall not be required if, at the time of the proposed assignment, any Default or Event of Default shall
then exist and (ii) the Borrower shall be deemed to have granted its consent unless the Borrower has expressly objected to such
assignment within three Business Days after notice thereof. Anything herein to the contrary notwithstanding, any Lender may at
any time make a collateral assignment of all or any portion of its rights under the Loan Documents to a Federal Reserve Bank,
and no such assignment shall release such assigning Lender from its obligations hereunder.


 


(c)Minimum
Amount. Each such assignment shall be in a minimum amount of the lesser of Five Million Dollars ($5,000,000) of the assignor’s
Commitment and interest herein, or the entire amount of the assignor’s Commitment and interest herein.


 






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(d)Assignment
Fee. Unless the assignment shall be to an affiliate of the assignor or the assignment shall be due to merger of the assignor
or for regulatory purposes, either the assignor or the assignee shall remit to the Administrative Agent, for its own account,
an administrative fee of Three Thousand Five Hundred Dollars ($3,500).


 


(e)Assignment
Agreement. Unless the assignment shall be due to merger of the assignor or a collateral assignment for regulatory purposes,
the assignor shall (i) cause the assignee to execute and deliver to the Borrower and the Administrative Agent an Assignment Agreement,
and (ii) execute and deliver, or cause the assignee to execute and deliver, as the case may be, to the Administrative Agent such
additional amendments, assurances and other writings as the Administrative Agent may reasonably require.


 


(f)Non-U.S.
Assignee. If the assignment is to be made to an assignee that is organized under the laws of any jurisdiction other than the
United States or any state thereof, the assignor Lender shall cause such assignee, at least five Business Days prior to the effective
date of such assignment, (i) to represent to the assignor Lender (for the benefit of the assignor Lender, the Administrative Agent
and the Borrower) that under applicable law and treaties no taxes will be required to be withheld by the Administrative Agent,
the Borrower or the assignor with respect to any payments to be made to such assignee in respect of the Loans hereunder, (ii)
to furnish to the assignor Lender (and, in the case of any assignee registered in the Register (as defined below), the Administrative
Agent and the Borrower) either U.S. Internal Revenue Service Form W-8ECI, Form W-8IMY, Form W-8BEN, or Form W-8BEN-E, as applicable
(wherein such assignee claims entitlement to complete exemption from U.S. federal withholding tax on all payments hereunder),
and (iii) to agree (for the benefit of the assignor, the Administrative Agent and the Borrower) to provide to the assignor Lender
(and, in the case of any assignee registered in the Register, to the Administrative Agent and the Borrower) a new Form W-8ECI,
Form W-8IMY, Form W-8BEN, or Form W-8BEN-E, as applicable, upon the expiration or obsolescence of any previously delivered form
and comparable statements in accordance with applicable U.S. laws and regulations and amendments duly executed and completed by
such assignee, and to comply from time to time with all applicable U.S. laws and regulations with regard to such withholding tax
exemption.


 


(g)Deliveries
by Borrower. Upon satisfaction of all applicable requirements specified in subsections (a) through (f) above, the Borrower
shall execute and deliver (i) to the Administrative Agent, the assignor and the assignee, any consent or release (of all or a
portion of the obligations of the assignor) required to be delivered by the Borrower in connection with the Assignment Agreement,
and (ii) to the assignee, if requested, and the assignor, if applicable, an appropriate Note or Notes. After delivery of the new
Note or Notes, the assignor’s Note or Notes, if any, being replaced shall be returned to the Borrower marked “replaced”.


 


(h)Effect of
Assignment. Upon satisfaction of all applicable requirements set forth in subsections (a) through (g) above, and any other
condition contained in this Section 11.11, (i) the assignee shall become and thereafter be deemed to be a “Lender”
for the purposes of this Agreement, (ii) the assignor shall be released from its obligations hereunder to the extent that its
interest has been assigned, (iii) in the event that the assignor’s entire interest has been assigned, the assignor shall
cease to be and thereafter shall no longer be deemed to be a “Lender” and (iv) the signature pages hereto and Schedule
1 hereto shall be automatically amended, without further action, to reflect the result of any such assignment.


 






    	 	111	 



     

    

 


(i)Administrative
Agent to Maintain Register. The Administrative Agent shall maintain at the address for notices referred to in Section 11.4
hereof a copy of each Assignment Agreement delivered to it and a register (the “Register”) for the recordation of
the names and addresses of the Lenders and the Commitment of, and principal amount of the Loans owing to, each Lender from time
to time. The entries in the Register shall be conclusive, in the absence of manifest error, and the Borrower, the Administrative
Agent and the Lenders may treat each Person whose name is recorded in the Register as the owner of the Loan recorded therein for
all purposes of this Agreement. The Register shall be available for inspection by the Borrower or any Lender at any reasonable
time and from time to time upon reasonable prior notice.


 


Section 11.12. Sale
of Participations. Any Lender may, in the ordinary course of its commercial banking business and in accordance with applicable
law, at any time sell participations to one or more Eligible Transferees (each a “Participant”) in all or a portion
of its rights or obligations under this Agreement and the other Loan Documents (including, without limitation, all or a portion
of the Commitment and the Loans and participations owing to it and the Note, if any, held by it); provided that:


 


(a)any such Lender’s
obligations under this Agreement and the other Loan Documents shall remain unchanged;


 


(b)such Lender
shall remain solely responsible to the other parties hereto for the performance of such obligations;


 


(c)the parties
hereto shall continue to deal solely and directly with such Lender in connection with such Lender’s rights and obligations
under this Agreement and each of the other Loan Documents;


 


(d)such Participant
shall be bound by the provisions of Section 9.5 hereof, and the Lender selling such participation shall obtain from such Participant
a written confirmation of its agreement to be so bound; and


 


(e)no Participant
(unless such Participant is itself a Lender) shall be entitled to require such Lender to take or refrain from taking action under
this Agreement or under any other Loan Document, except that such Lender may agree with such Participant that such Lender will
not, without such Participant’s consent, take action of the type described as follows:


 


(i)increase
the portion of the participation amount of any Participant over the amount thereof then in effect, or extend the Commitment Period,
without the written consent of each Participant affected thereby; or


 


(ii)reduce
the principal amount of or extend the time for any payment of principal of any Loan, or reduce the rate of interest or extend
the time for payment of interest on any Loan, or reduce the commitment fee, without the written consent of each Participant affected
thereby.


 






    	 	112	 



     

    

 


The Borrower agrees that any Lender that sells
participations pursuant to this Section 11.12 shall still be entitled to the benefits of Article III hereof, notwithstanding any
such transfer; provided that the obligations of the Borrower shall not increase as a result of such transfer and the Borrower
shall have no obligation to any Participant.


 


Section 11.13. Replacement
of Affected Lenders. Each Lender agrees that, during the time in which any Lender is an Affected Lender, the Administrative
Agent shall have the right (and the Administrative Agent shall, if requested by the Borrower), at the sole expense of the Borrower,
upon notice to such Affected Lender and the Borrower, to require that such Affected Lender assign and delegate, without recourse
(in accordance with the restrictions contained in Section 11.11 hereof), all of its interests, rights and obligations under this
Agreement to an Eligible Transferee, approved by the Borrower (unless an Event of Default shall exist) and the Administrative
Agent, that shall assume such obligations (which assignee may be another Lender, if a Lender accepts such assignment); provided
that such Affected Lender shall have received payment of an amount equal to the outstanding principal of its Loans, accrued interest
thereon, accrued fees and all other amounts payable to it hereunder (recognizing that any Affected Lender may have given up its
rights under this Agreement to receive payment of fees and other amounts pursuant to Section 2.7(e) and (f) hereof), from such
Eligible Transferee (to the extent of such outstanding principal and accrued interest and fees) or the Borrower (in the case of
all other amounts, including any breakage compensation under Article III hereof).


 


Section 11.14. Patriot
Act Notice. Each Lender, and the Administrative Agent (for itself and not on behalf of any other party), hereby notifies the
Credit Parties that, pursuant to the requirements of the Patriot Act, such Lender and the Administrative Agent are required to
obtain, verify and record information that identifies the Credit Parties, which information includes the name and address of each
of the Credit Parties and other information that will allow such Lender or the Administrative Agent, as applicable, to identify
the Credit Parties in accordance with the Patriot Act. The Borrower shall provide, to the extent commercially reasonable, such
information and take such actions as are reasonably requested by the Administrative Agent or a Lender in order to assist the Administrative
Agent or such Lender in maintaining compliance with the Patriot Act.


 


Section 11.15. Severability
of Provisions; Captions; Attachments. Any provision of this Agreement that shall be 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 or affecting the validity or enforceability of such provision in any other jurisdiction. The several
captions to sections and subsections herein are inserted for convenience only and shall be ignored in interpreting the provisions
of this Agreement. Each schedule or exhibit attached to this Agreement shall be incorporated herein and shall be deemed to be
a part hereof.


 






    	 	113	 



     

    

 


Section 11.16. Investment
Purpose. Each of the Lenders represents and warrants to the Borrower that such Lender is entering into this Agreement with
the present intention of acquiring any Note issued pursuant hereto (or, if there is no Note, the interest as reflected on the
books and records of the Administrative Agent) for investment purposes only and not for the purpose of distribution or resale,
it being understood, however, that each Lender shall at all times retain full control over the disposition of its assets.


 


Section 11.17. Entire
Agreement. This Agreement, any Note and any other Loan Document or other agreement, document or instrument attached hereto
or executed on or as of the Closing Date integrate all of the terms and conditions mentioned herein or incidental hereto and supersede
all oral representations and negotiations and prior writings with respect to the subject matter hereof (except with respect to
any provisions of the Administrative Agent Fee Letter or any commitment letter and fee letter between the Borrower and KeyBank
that by their terms survive the termination of such agreements, in each case, which shall remain in full force and effect after
the Closing Date).


 


Section 11.18. Limitations
on Liability of the Issuing Lender. The Borrower assumes all risks of the acts or omissions of any beneficiary or transferee
of any Letter of Credit with respect to its use of such Letters of Credit. Neither the Issuing Lender nor any of its officers
or directors shall be liable or responsible for (a) the use that may be made of any Letter of Credit or any acts or omissions
of any beneficiary or transferee in connection therewith; (b) the validity, sufficiency or genuineness of documents, or of any
endorsement thereon, even if such documents should prove to be in any or all respects invalid, insufficient, fraudulent or forged;
(c) payment by the Issuing Lender against presentation of documents that do not comply with the terms of a Letter of Credit, including
failure of any documents to bear any reference or adequate reference to such Letter of Credit; or (d) any other circumstances
whatsoever in making or failing to make payment under any Letter of Credit, except that the account party on such Letter of Credit
shall have a claim against the Issuing Lender, and the Issuing Lender shall be liable to such account party, to the extent of
any direct, but not consequential, damages suffered by such account party that such account party proves were caused by (i) the
Issuing Lender’s willful misconduct or gross negligence (as determined by a final judgment of a court of competent jurisdiction)
in determining whether documents presented under a Letter of Credit comply with the terms of such Letter of Credit, or (ii) the
Issuing Lender’s willful failure to make lawful payment under any Letter of Credit after the presentation to it of documentation
strictly complying with the terms and conditions of such Letter of Credit. In furtherance and not in limitation of the foregoing,
the Issuing Lender may accept documents that appear on their face to be in order, without responsibility for further investigation.


 


Section 11.19. General
Limitation of Liability. No claim may be made by any Credit Party or any other Person against the Administrative Agent, the
Issuing Lender, or any other Lender or the affiliates, directors, officers, employees, attorneys or agents of any of them for
any damages other than actual compensatory damages in respect of any claim for breach of contract or any other theory of liability
arising out of or related to the transactions contemplated by this Agreement or any of the other Loan Documents, or any act, omission
or event occurring in connection therewith; and the Borrower, each Lender, the Administrative Agent and the Issuing Lender hereby,
to the fullest extent permitted under applicable law, waive, release and agree not to sue or counterclaim upon any such claim
for any special, indirect, consequential or punitive damages, whether or not accrued and whether or not known or suspected to
exist in their favor and regardless of whether any Lender, Issuing Lender, or the Administrative Agent has been advised of the
likelihood of such loss of damage.


 






    	 	114	 



     

    

 


Section 11.20. No Duty.
All attorneys, accountants, appraisers, consultants and other professional persons (including the firms or other entities on behalf
of which any such Person may act) retained by the Administrative Agent or any Lender with respect to the transactions contemplated
by the Loan Documents shall have the right to act exclusively in the interest of the Administrative Agent or such Lender, as the
case may be, and shall have no duty of disclosure, duty of loyalty, duty of care, or other duty or obligation of any type or nature
whatsoever to the Borrower, any other Companies, or any other Person, with respect to any matters within the scope of such representation
or related to their activities in connection with such representation. The Borrower agrees, on behalf of itself and its Subsidiaries,
not to assert any claim or counterclaim against any such persons with regard to such matters, all such claims and counterclaims,
now existing or hereafter arising, whether known or unknown, foreseen or unforeseeable, being hereby waived, released and forever
discharged.


 


Section 11.21. Legal
Representation of Parties. The Loan Documents were negotiated by the parties with the benefit of legal representation and
any rule of construction or interpretation otherwise requiring this Agreement or any other Loan Document to be construed or interpreted
against any party shall not apply to any construction or interpretation hereof or thereof.


 


Section 11.22. Acknowledgement
and Consent to Bail-In of EEA Financial Institutions. Notwithstanding anything to the contrary in any Loan Document or in
any other agreement, arrangement or understanding among any such parties, each party hereto acknowledges that any liability of
any EEA Financial Institution arising under any Loan Document, to the extent such liability is unsecured, may be subject to the
write-down and conversion powers of an EEA Resolution Authority and agrees and consents to, and acknowledges and agrees to be
bound by:


 


(a)the application
of any Write-Down and Conversion Powers by an EEA Resolution Authority to any such liabilities arising hereunder which may be
payable to it by any party hereto that is an EEA Financial Institution; and


 


(b)the effects
of any Bail-in Action on any such liability, including, if applicable:


 


(i)a
reduction in full or in part or cancellation of any such liability;


 


(ii)a
conversion of all, or a portion of, such liability into shares or other instruments of ownership in such EEA Financial Institution,
its parent undertaking, or a bridge institution that may be issued to it or otherwise conferred on it, and that such shares or
other instruments of ownership will be accepted by it in lieu of any rights with respect to any such liability under this Agreement
or any other Loan Document; or


 


(iii)the
variation of the terms of such liability in connection with the exercise of the write-down and conversion powers of any EEA Resolution
Authority.


 






    	 	115	 



     

    

 


Section 11.23. Governing
Law; Submission to Jurisdiction.


 


(a)Governing
Law. This Agreement, each of the Notes and any other Related Writing shall be governed by and construed in accordance with
the laws of the State of New York and the respective rights and obligations of the Borrower, the Administrative Agent, and the
Lenders shall be governed by New York law.


 


(b)Submission
to Jurisdiction. The Borrower hereby irrevocably submits to the non-exclusive jurisdiction of any New York state or federal
court sitting in New York County, New York over any action or proceeding arising out of or relating to this Agreement, the Obligations
or any other Related Writing, and the Borrower hereby irrevocably agrees that all claims in respect of such action or proceeding
may be heard and determined in such New York state or federal court. The Borrower, on behalf of itself and its Subsidiaries, hereby
irrevocably waives, to the fullest extent permitted by law, any objection it may now or hereafter have to the laying of venue
in any action or proceeding in any such court as well as any right it may now or hereafter have to remove such action or proceeding,
once commenced, to another court on the grounds of FORUM NON CONVENIENS or otherwise. The Borrower agrees that a final, non-appealable
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.


 


[Remainder of page left intentionally blank]


 






    	 	116	 



     

    

 


JURY TRIAL WAIVER.
TO THE EXTENT PERMITTED BY LAW, THE BORROWER, THE ADMINISTRATIVE AGENT AND EACH LENDER WAIVE ANY RIGHT TO HAVE A JURY PARTICIPATE
IN RESOLVING ANY DISPUTE, WHETHER SOUNDING IN CONTRACT, TORT OR OTHERWISE, AMONG THE BORROWER, THE ADMINISTRATIVE AGENT AND THE
LENDERS, OR ANY THEREOF, ARISING OUT OF, IN CONNECTION WITH, RELATED TO, OR INCIDENTAL TO THE RELATIONSHIP ESTABLISHED AMONG THEM
IN CONNECTION WITH THIS AGREEMENT OR ANY NOTE OR OTHER INSTRUMENT, DOCUMENT OR AGREEMENT EXECUTED OR DELIVERED IN CONNECTION HEREWITH
OR THE TRANSACTIONS RELATED THERETO.


 


IN WITNESS WHEREOF, the
parties have executed and delivered this Credit and Security Agreement as of the date first set forth above.


 


	Address:     910
                                         West Legacy Center Drive

        Suite 500

        Midvale, Utah 84047

        Attention: Chief Financial Officer

         
	ZAGG
                                         INC

         

        By: /s/ Randall L. Hales                                                

        Randall L. Hales

        President 

	 	 
	Address:   127
                                         Public Square

        Cleveland, Ohio
        44114-1306

        Attention: KeyBank
        Business Capital 
	KEYBANK
                                         NATIONAL ASSOCIATION

        as the Administrative Agent, the Swing
        Line

        Lender, the Issuing Lender and as
        a Lender

         

        By: /s/ Michael
        Gutia                                                   

        Michael Gutia

        Vice President 









 


 


Signature Page 1 of 3 to


Credit and Security Agreement






    


     

    

 


	Address:   One
                                         South Main Street

        Salt Lake City,
        UT 84133

        Attention: Adam
        Whitefield

         
	ZB,
                                         N.A. DBA ZIONS FIRST NATIONAL BANK

         

        By: /s/ Adam Whitefield                                             

        Adam Whitefield

        Vice President






 


 


 


 


Signature Page 2 of 3 to


Credit and Security Agreement






    


     

    

 


	Address:  3
                                         Park Plaza

        Suite 900

        Irvine, CA 92614

        Attention: James
        Fallahay

         
	JPMORGAN
                                         CHASE BANK, N.A.

         

        By: /s/ James
        Fallahay                                                  

        James Fallahay

        Authorized Officer






 


 


 





Signature Page 3  of 3 to


Credit and Security Agreement






    


     

    

 


SCHEDULE 1


 


COMMITMENTS OF LENDERS


 





	LENDERS	 	REVOLVING CREDIT 
COMMITMENT 
PERCENTAGE	 	 	REVOLVING 
CREDIT 
COMMITMENT 
AMOUNT	 	 	TERM LOAN COMMITMENT PERCENTAGE	 	 	TERM LOAN 
COMMITMENT 
AMOUNT	 	 	MAXIMUM AMOUNT	 
	KeyBank National Association	 	 	36.36	%	 	$	30,909,090.90	 	 	 	36.36	%	 	$	9,090,909.10	 	 	$	40,000,000.00	 
	ZB, N.A. d/b/a Zions
    First National Bank	 	 	31.82	%	 	$	27,045,454.55	 	 	 	31.82	%	 	$	7,954,545.45	 	 	$	35,000,000.00	 
	JPMorgan Chase Bank, N.A.	 	 	31.82	%	 	$	27,045,454.55	 	 	 	31.82	%	 	$	7,954,545.45	 	 	$	35,000,000.00	 
	Total Commitment Amount	 	 	100	%	 	$	85,000,000.00	 	 	 	100	%	 	$	25,000,000.00	 	 	$	110,000,000.00	 





 






    	 	S-1	 



     

    

 





SCHEDULE 2


 


GUARANTORS OF PAYMENT


 


iFrogz Inc., a Utah corporation


mophie inc., a California corporation


mophie LLC, a Michigan limited liability company


ZAGG Intellectual Property Holding Co., Inc.,
a Nevada corporation


ZAGG LLC, a Nevada limited liability company


ZAGG Retail, Inc., a Nevada corporation


 






    	 	S-2	 



     

    

 





SCHEDULE 3


 


BORROWING BASE COMPANIES


 


ZAGG Inc, a Nevada corporation


iFrogz Inc., a Utah corporation


mophie inc., a California corporation


mophie LLC, a Michigan limited liability company


ZAGG Retail, Inc., a Nevada corporation


 






    	 	S-3	 



     

    

 





SCHEDULE 4


 


PLEDGED SECURITIES


 


	
        

        Pledgor
	
        Name
of Subsidiary
	Jurisdiction of Subsidiary	
        Shares
	
        Certificate Number
	Ownership Percentage
	
        ZAGG Inc
	
        ZAGG Intellectual Property Holding Co., Inc.
	Nevada	1,000,000	2	100%
	
        ZAGG Inc
	ZAGG Retail, Inc.	Nevada	1,000,000	2	100%
	
        ZAGG Inc
	iFrogz Inc.	Utah	67,586	11	100%
	
        ZAGG Inc
	ZAGG LLC	Nevada	N/A	001	100%
	
        ZAGG Inc
	mophie, inc.	California	100	C-1	100%
	
        iFrogz Inc
	Superior Brand Limited	Hong Kong	65	3	100%*
	
        ZAGG LLC
	Bronco Corporation	Cayman	65	1	100%*
	
        ZAGG LLC
	Patriot Corporation	Ireland	65	9	99%*
	
        mophie, inc 
	mophie LLC	Michigan	N/A	N/A	100%
	
        mophie, inc 
	
        mophie Technology Development Co., Ltd. (Shenzhen)
	China	N/A	N/A	100%*
	
        mophie, inc.
	
        mophie Netherlands Cooperatie U.A.
	Netherlands	N/A	N/A	99%*
	
        mophie LLC
	
        mophie Netherlands Cooperatie U.A.
	Netherlands	N/A	N/A	1%*




 


* 100% of the equity interests or stock of
each first-tier Foreign Subsidiary (other than voting equity interests in excess of 65% of any such Foreign Subsidiary that is
a CFC) constitute Pledged Securities.


 



    	 	S-4	 



     

    

 





EXHIBIT A


FORM OF


REVOLVING CREDIT NOTE


$___________________, 20__


 


FOR VALUE RECEIVED, the undersigned, ZAGG
INC, a Nevada corporation (the “Borrower”), promises to pay, on the last day of the Commitment Period, as defined
in the Credit Agreement (as hereinafter defined), to the order of _________ (“Lender”) at the main office of KEYBANK
NATIONAL ASSOCIATION, as the Administrative Agent, as hereinafter defined, 127 Public Square, Cleveland, Ohio 44114-1306 the principal
sum of


 


_______________________________ AND
00/100 _____________________________________DOLLARS


 


or the aggregate unpaid principal amount of
all Revolving Loans, as defined in the Credit Agreement, made by Lender to the Borrower pursuant to Section 2.2(a) of the Credit
Agreement, whichever is less, in lawful money of the United States of America.


 


As used herein, “Credit
Agreement” means the Credit and Security Agreement dated as of March 3, 2016, among the Borrower, the Lenders, as defined
therein, and KeyBank National Association, as the administrative agent for the Lenders (the “Administrative Agent”),
as the same may from time to time be amended, restated or otherwise modified. Each capitalized term used herein that is defined
in the Credit Agreement and not otherwise defined herein shall have the meaning ascribed to it in the Credit Agreement.


 


The Borrower also promises
to pay interest on the unpaid principal amount of each Revolving Loan from time to time outstanding, from the date of such Revolving
Loan until the payment in full thereof, at the rates per annum that shall be determined in accordance with the provisions of Section
2.4(a) of the Credit Agreement. Such interest shall be payable on each date provided for in such Section 2.4(a); provided that
interest on any principal portion that is not paid when due shall be payable on demand.


 


The portions of the principal
sum hereof from time to time representing Base Rate Loans and Eurodollar Loans, interest owing thereon and payments of principal
and interest of any thereof, shall be shown on the records of Lender by such method as Lender may generally employ; provided that
failure to make any such entry shall in no way detract from the obligations of the Borrower under this Note or the Credit Agreement.


 


If this Note shall not
be paid at maturity, whether such maturity occurs by reason of lapse of time or by operation of any provision for acceleration
of maturity contained in the Credit Agreement, the principal hereof and the unpaid interest thereon shall bear interest, pursuant
to the terms of the Credit Agreement, until paid, at a rate per annum equal to the Default Rate. All payments of principal of
and interest on this Note shall be made in immediately available funds.


 






    	 	E-1	 



     

    

 


This Note is one of the
Revolving Credit Notes referred to in the Credit Agreement and is entitled to the benefits thereof. Reference is made to the Credit
Agreement for a description of the right of the undersigned to anticipate payments hereof, the right of the holder hereof to declare
this Note due prior to its stated maturity, and other terms and conditions upon which this Note is issued.


 


Except as expressly provided
in the Credit Agreement, the Borrower expressly waives presentment, demand, protest and notice of any kind. This Note shall be
governed by and construed in accordance with the laws of the State of New York.


 


JURY TRIAL WAIVER.
THE BORROWER, TO THE EXTENT PERMITTED BY LAW, HEREBY WAIVES ANY RIGHT TO HAVE A JURY PARTICIPATE IN RESOLVING ANY DISPUTE, WHETHER
SOUNDING IN CONTRACT, TORT OR OTHERWISE, AMONG THE BORROWER, THE ADMINISTRATIVE AGENT AND THE LENDERS, OR ANY THEREOF, ARISING
OUT OF, IN CONNECTION WITH, RELATED TO, OR INCIDENTAL TO THE RELATIONSHIP ESTABLISHED AMONG THEM IN CONNECTION WITH THIS NOTE
OR ANY OTHER NOTE OR INSTRUMENT, DOCUMENT OR AGREEMENT EXECUTED OR DELIVERED IN CONNECTION HEREWITH OR THE TRANSACTIONS RELATED
THERETO.


 


	 	ZAGG
                                         INC

         

        By: ___________________________________

        Name: _________________________________

        Title: __________________________________



 






    	 	E-2	 



     

    

 





EXHIBIT B


FORM OF


SWING LINE NOTE


 


	$________	___________, 20__




 


FOR VALUE RECEIVED, the
undersigned, ZAGG INC, a Nevada corporation (the “Borrower”), promises to pay to the order of KEYBANK NATIONAL ASSOCIATION
(the “Swing Line Lender”) at the main office of KEYBANK NATIONAL ASSOCIATION, as the Administrative Agent, as hereinafter
defined, 127 Public Square, Cleveland, Ohio 44114-1306 the principal sum of


 


_______________________________ AND
00/100 _____________________________________DOLLARS


 


or the aggregate unpaid principal amount of
all Swing Loans, as defined in the Credit Agreement (as hereinafter defined), made by the Swing Line Lender to the Borrower pursuant
to Section 2.2(c) of the Credit Agreement, whichever is less, in lawful money of the United States of America on the earlier of
the last day of the Commitment Period, as defined in the Credit Agreement, or, with respect to each Swing Loan, the Swing Loan
Maturity Date applicable thereto.


 


As used herein, “Credit
Agreement” means the Credit and Security Agreement dated as of March 3, 2016, among the Borrower, the Lenders, as defined
therein, and KeyBank National Association, as the administrative agent for the Lenders (the “Administrative Agent”),
as the same may from time to time be amended, restated or otherwise modified. Each capitalized term used herein that is defined
in the Credit Agreement and not otherwise defined herein shall have the meaning ascribed to it in the Credit Agreement.


 


The Borrower also promises
to pay interest on the unpaid principal amount of each Swing Loan from time to time outstanding, from the date of such Swing Loan
until the payment in full thereof, at the rates per annum that shall be determined in accordance with the provisions of Section
2.4(b) of the Credit Agreement. Such interest shall be payable on each date provided for in such Section 2.4(b); provided that
interest on any principal portion that is not paid when due shall be payable on demand.


 


The principal sum hereof
from time to time, and the payments of principal and interest thereon, shall be shown on the records of the Swing Line Lender
by such method as the Swing Line Lender may generally employ; provided that failure to make any such entry shall in no way detract
from the obligations of the Borrower under this Note or the Credit Agreement.


 


If this Note shall not
be paid at maturity, whether such maturity occurs by reason of lapse of time or by operation of any provision for acceleration
of maturity contained in the Credit Agreement, the principal hereof and the unpaid interest thereon shall bear interest, pursuant
to the terms of the Credit Agreement, until paid, at a rate per annum equal to the Default Rate. All payments of principal of
and interest on this Note shall be made in immediately available funds.


 






    	 	E-3	 



     

    

 


This Note is the Swing
Line Note referred to in the Credit Agreement and is entitled to the benefits thereof. Reference is made to the Credit Agreement
for a description of the right of the undersigned to anticipate payments hereof, the right of the holder hereof to declare this
Note due prior to its stated maturity, and other terms and conditions upon which this Note is issued.


 


Except as expressly provided
in the Credit Agreement, the Borrower expressly waives presentment, demand, protest and notice of any kind. This Note shall be
governed by and construed in accordance with the laws of the State of New York.


 


JURY TRIAL WAIVER.
THE BORROWER, TO THE EXTENT PERMITTED BY LAW, HEREBY WAIVES ANY RIGHT TO HAVE A JURY PARTICIPATE IN RESOLVING ANY DISPUTE, WHETHER
SOUNDING IN CONTRACT, TORT OR OTHERWISE, AMONG THE BORROWER, THE ADMINISTRATIVE AGENT AND THE LENDERS, OR ANY THEREOF, ARISING
OUT OF, IN CONNECTION WITH, RELATED TO, OR INCIDENTAL TO THE RELATIONSHIP ESTABLISHED AMONG THEM IN CONNECTION WITH THIS NOTE
OR ANY OTHER NOTE OR INSTRUMENT, DOCUMENT OR AGREEMENT EXECUTED OR DELIVERED IN CONNECTION HEREWITH OR THE TRANSACTIONS RELATED
THERETO.


 


	 	ZAGG
                                         INC

         

        By: ___________________________________

        Name: _________________________________

        Title: __________________________________









 






    	 	E-4	 



     

    

 


EXHIBIT C


FORM OF


TERM NOTE





	$________	___________, 2016


 


FOR VALUE RECEIVED, the
undersigned, ZAGG INC, a Nevada corporation (the “Borrower”), promises to pay to the order of _________ (“Lender”)
at the main office of KEYBANK NATIONAL ASSOCIATION, as the Administrative Agent, as hereinafter defined, 127 Public Square, Cleveland,
Ohio 44114-1306 the principal sum of


 


_______________________________ AND
00/100 _____________________________________DOLLARS


 


in lawful money of the United States of America
in consecutive principal payments as set forth in the Credit Agreement (as hereinafter defined).


 


As used herein, “Credit
Agreement” means the Credit and Security Agreement dated as of March 3, 2016, among the Borrower, the Lenders, as defined
therein, and KeyBank National Association, as the administrative agent for the Lenders (the “Administrative Agent”),
as the same may from time to time be amended, restated or otherwise modified. Each capitalized term used herein that is defined
in the Credit Agreement and not otherwise defined herein shall have the meaning ascribed to it in the Credit Agreement.


 


The Borrower also promises
to pay interest on the unpaid principal amount of the Term Loan from time to time outstanding, from the date of the Term Loan
until the payment in full thereof, at the rates per annum that shall be determined in accordance with the provisions of Section
2.4(c) of the Credit Agreement. Such interest shall be payable on each date provided for in such Section 2.4(c); provided that
interest on any principal portion that is not paid when due shall be payable on demand.


 


The portions of the principal
sum hereof from time to time representing Base Rate Loans and Eurodollar Loans, interest owing thereon, and payments of principal
and interest of any thereof, shall be shown on the records of Lender by such method as Lender may generally employ; provided that
failure to make any such entry shall in no way detract from the obligations of the Borrower under this Note or the Credit Agreement.


 


If this Note shall not
be paid at maturity, whether such maturity occurs by reason of lapse of time or by operation of any provision for acceleration
of maturity contained in the Credit Agreement, the principal hereof and the unpaid interest thereon shall bear interest, pursuant
to the terms of the Credit Agreement, until paid, at a rate per annum equal to the Default Rate. All payments of principal of
and interest on this Note shall be made in immediately available funds.


 


This Note is one of the
Term Notes referred to in the Credit Agreement and is entitled to the benefits thereof. Reference is made to the Credit Agreement
for a description of the right of the undersigned to anticipate payments hereof, the right of the holder hereof to declare this
Note due prior to its stated maturity, and other terms and conditions upon which this Note is issued.


 






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Except as expressly provided
in the Credit Agreement, the Borrower expressly waives presentment, demand, protest and notice of any kind. This Note shall be
governed by and construed in accordance with the laws of the State of New York.


 


JURY TRIAL WAIVER.
THE BORROWER, TO THE EXTENT PERMITTED BY LAW, HEREBY WAIVES ANY RIGHT TO HAVE A JURY PARTICIPATE IN RESOLVING ANY DISPUTE, WHETHER
SOUNDING IN CONTRACT, TORT OR OTHERWISE, AMONG THE BORROWER, THE ADMINISTRATIVE AGENT AND THE LENDERS, OR ANY THEREOF, ARISING
OUT OF, IN CONNECTION WITH, RELATED TO, OR INCIDENTAL TO THE RELATIONSHIP ESTABLISHED AMONG THEM IN CONNECTION WITH THIS NOTE
OR ANY OTHER NOTE OR INSTRUMENT, DOCUMENT OR AGREEMENT EXECUTED OR DELIVERED IN CONNECTION HEREWITH OR THE TRANSACTIONS RELATED
THERETO.


 





	 	ZAGG
                                         INC

         

        By: ___________________________________

        Name: _________________________________

        Title: __________________________________









 






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EXHIBIT D


FORM OF


BORROWING BASE CERTIFICATE


 


See attached.





 






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EXHIBIT E


FORM OF


NOTICE OF LOAN


_______________________, 20____


 


KeyBank National Association, as the Administrative
Agent


1300 Key Center


127 Public Square


Cleveland, Ohio 44114


Attention: KeyBank Business Capital


Ladies and Gentlemen:


 


The undersigned, ZAGG
INC, a Nevada corporation (the “Borrower”), refers to the Credit and Security Agreement, dated as of March 3, 2016
(as the same may from time to time be amended, restated or otherwise modified, the “Credit Agreement”, the terms defined
therein being used herein as therein defined), among the undersigned, the Lenders, as defined in the Credit Agreement, and KeyBank
National Association, as the administrative agent for the Lenders (the “Administrative Agent”), and hereby gives you
notice, pursuant to Section 2.6 of the Credit Agreement that the Borrower hereby requests [a Loan (the “Proposed Loan”)][an
interest change with respect to a portion of a Term Loan (the “Term Loan Interest Change”)], and in connection therewith
sets forth below the information relating to the [Proposed Loan][Term Loan Interest Change] as required by Section 2.6 of the
Credit Agreement:


 


		(a)	The Business Day of the [Proposed Loan][Term Loan Interest
Change] is __________, 20__.



		 	 



		(b)	The amount of the [Proposed Loan][Term Loan Interest Change]
is $_______________.



		 	 



		(c)	The [Proposed Loan is to be][Term Loan Interest Change
is for]:



			a Revolving Loan ____ / the Term Loan ___. (Check one.)



		 	 



		(d)	The [Proposed Loan][Term Loan Interest Change] is to be
a Base Rate Loan ____ / Eurodollar Loan ___/ Swing Loan_____. (Check one.)



		 	 



		(e)	If the [Proposed Loan][Term Loan Interest Change] is a
Eurodollar Loan, the Interest Period requested is one month ___, two months ___, three months ___, six months ____. (Check one.)



 


The undersigned hereby certifies on behalf
of the Borrower that the following statements are true on the date hereof, and will be true on the date of the [Proposed Loan][Term
Loan Interest Change]:


 


(i)     the
representations and warranties contained in each Loan Document are true and correct, before and after giving effect to the
[Proposed Loan][Term Loan Interest Change] and the application of the proceeds therefrom, as though made on and as of such
date;


 


(ii)    no event has occurred
and is continuing, or would result from such [Proposed Loan][Term Loan Interest Change], or the application of proceeds therefrom,
that constitutes a Default or Event of Default; and


 


(iii)   the conditions set
forth in Section 2.6 and Article IV of the Credit Agreement have been satisfied.


 





	 	ZAGG
                                         INC

         

        By: ___________________________________

        Name: _________________________________

        Title: __________________________________









 






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EXHIBIT F


FORM OF


COMPLIANCE CERTIFICATE


For Fiscal Quarter ended ____________________


 


THE UNDERSIGNED HEREBY CERTIFIES THAT:


 


(1)I am the duly elected [President]
or [Chief Financial Officer] of ZAGG INC, a Nevada corporation (the “Borrower”);


 


(2)I am familiar with the terms of
that certain Credit and Security Agreement, dated as of March 3, 2016, among the Borrower, the lenders party thereto (together
with their respective successors and assigns, collectively, the “Lenders”), as defined in the Credit Agreement, and
KeyBank National Association, as the Administrative Agent (as the same may from time to time be amended, restated or otherwise
modified, the “Credit Agreement”, the terms defined therein being used herein as therein defined), and the terms of
the other Loan Documents, and I have made, or have caused to be made under my supervision, a review in reasonable detail of the
transactions and condition of the Borrower and its Subsidiaries during the accounting period covered by the attached financial
statements;


 


(3)The review described in paragraph
(2) above did not disclose, and I have no knowledge of, the existence of any condition or event that constitutes or constituted
a Default or Event of Default, at the end of the accounting period covered by the attached financial statements or as of the date
of this Certificate;


 


(4)The representations and warranties
made by the Borrower contained in each Loan Document are true and correct as though made on and as of the date hereof; and


 


(5)Set forth on Attachment I hereto
are calculations of the financial covenants set forth in Section 5.7 of the Credit Agreement, and the calculation of Excess Cash
Flow, which calculations show compliance with the terms thereof.


 


IN WITNESS WHEREOF, I
have signed this certificate the ___ day of _________, 20___.


 





	 	ZAGG
                                         INC

         

        By: ___________________________________

        Name: _________________________________

        Title: __________________________________









 






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EXHIBIT G


FORM OF


ASSIGNMENT AND ACCEPTANCE AGREEMENT


 


This Assignment and Acceptance
Agreement (this “Assignment Agreement”) between ______________________ (the “Assignor”) and ______________________
(the “Assignee”) is dated as of __________ ___, 20___. The parties hereto agree as follows:


 


1.Preliminary Statement. Assignor
is a party to a Credit and Security Agreement, dated as of March 3, 2016 (as the same may from time to time be amended, restated
or otherwise modified, the “Credit Agreement”), among ZAGG INC, a Nevada corporation (the “Borrower”),
the lenders party thereto (together with their respective successors and assigns, collectively, the “Lenders” and,
individually, each a “Lender”), and KEYBANK NATIONAL ASSOCIATION, as the administrative agent for the Lenders (the
“Administrative Agent”). Capitalized terms used herein and not otherwise defined herein shall have the meanings attributed
to them in the Credit Agreement.


 


2.Assignment and Assumption.
Assignor hereby sells and assigns to Assignee, and Assignee hereby purchases and assumes from Assignor, an interest in and to
Assignor’s rights and obligations under the Credit Agreement, effective as of the Assignment Effective Date (as hereinafter
defined), equal to the percentage interest specified on Annex 1 hereto (hereinafter, the “Assigned Percentage”)
of Assignor’s right, title and interest in and to (a) the Commitment, (b) any Loan made by Assignor that is outstanding
on the Assignment Effective Date, (c) Assignor’s interest in any Letter of Credit outstanding on the Assignment Effective
Date, (d) any Note delivered to Assignor pursuant to the Credit Agreement, and (e) the Credit Agreement and the other Related
Writings. After giving effect to such sale and assignment and on and after the Assignment Effective Date, Assignee shall be deemed
to have one or more Applicable Commitment Percentages under the Credit Agreement equal to the Applicable Commitment Percentages
set forth in subparts II.A and II.B on Annex 1 hereto and an Assigned Amount as set forth on subparts I.A and I.B of Annex
1 hereto (hereinafter, the “Assigned Amount”).


 


3.Assignment Effective Date.
The Assignment Effective Date (the “Assignment Effective Date”) shall be [__________ __, ____] (or such other date
agreed to by the Administrative Agent). On or prior to the Assignment Effective Date, Assignor shall satisfy the following conditions:


 


(a)receipt by the Administrative Agent
of this Assignment Agreement, including Annex 1 hereto, properly executed by Assignor and Assignee and accepted and consented
to by the Administrative Agent and, if necessary pursuant to the provisions of Section 11.11(b) of the Credit Agreement, by the
Borrower;


 


(b)receipt by the Administrative Agent
from Assignor of a fee of Three Thousand Five Hundred Dollars ($3,500), if required by Section 11.11(d) of the Credit Agreement;


 






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(c)receipt by the Administrative Agent
from Assignee of an administrative questionnaire, or other similar document, which shall include (i) the address for notices under
the Credit Agreement, (ii) the address of its Lending Office, (iii) wire transfer instructions for delivery of funds by the Administrative
Agent, and (iv) such other information as the Administrative Agent shall request; and


 


(d)receipt by the Administrative Agent
from Assignor or Assignee of any other information required pursuant to Section 11.11 of the Credit Agreement or otherwise necessary
to complete the transaction contemplated hereby.


 


4.Payment Obligations. In consideration
for the sale and assignment of Loans hereunder, Assignee shall pay to Assignor, on the Assignment Effective Date, the amount agreed
to by Assignee and Assignor. Any interest, fees and other payments accrued prior to the Assignment Effective Date with respect
to the Assigned Amount shall be for the account of Assignor. Any interest, fees and other payments accrued on and after the Assignment
Effective Date with respect to the Assigned Amount shall be for the account of Assignee. Each of Assignor and Assignee agrees
that it will hold in trust for the other party any interest, fees or other amounts which it may receive to which the other party
is entitled pursuant to the preceding sentence and to pay the other party any such amounts which it may receive promptly upon
receipt thereof.


 


5.Credit Determination; Limitations
on Assignor’s Liability. Assignee represents and warrants to Assignor, the Borrower, the Administrative Agent and the
Lenders (a) that it is capable of making and has made and shall continue to make its own credit determinations and analysis based
upon such information as Assignee deemed sufficient to enter into the transaction contemplated hereby and not based on any statements
or representations by Assignor; (b) Assignee confirms that it meets the requirements to be an assignee as set forth in Section
11.11 of the Credit Agreement; (c) Assignee confirms that it is able to fund the Loans and the Letters of Credit as required by
the Credit Agreement; (d) Assignee agrees that it will perform in accordance with their terms all of the obligations which by
the terms of the Credit Agreement and the other Related Writings are required to be performed by it as a Lender thereunder; and
(e) Assignee represents that it has reviewed each of the Loan Documents and by its signature to this Assignment Agreement, agrees
to be bound by and subject to the terms and conditions of the Loan Documents as if it were an original party thereto. It is understood
and agreed that the assignment and assumption hereunder are made without recourse to Assignor and that Assignor makes no representation
or warranty of any kind to Assignee and shall not be responsible for (i) the due execution, legality, validity, enforceability,
genuineness, sufficiency or collectability of the Credit Agreement or any other Related Writings, (ii) any representation, warranty
or statement made in or in connection with the Credit Agreement or any of the other Related Writings, (iii) the financial condition
or creditworthiness of the Borrower or any Guarantor of Payment, (iv) the performance of or compliance with any of the terms or
provisions of the Credit Agreement or any of the other Related Writings, (v) the inspection of any of the property, books or records
of the Borrower, or (vi) the validity, enforceability, perfection, priority, condition, value or sufficiency of any collateral
securing or purporting to secure the Loans or Letters of Credit. Neither Assignor nor any of its officers, directors, employees,
agents or attorneys shall be liable for any mistake, error of judgment, or action taken or omitted to be taken in connection with
the Loans, the Letters of Credit, the Credit Agreement or the other Related Writings, except for its or their own gross negligence
or willful misconduct. Assignee appoints the Administrative Agent to take such action as agent on its behalf and to exercise such
powers under the Credit Agreement as are delegated to the Administrative Agent by the terms thereof.


 






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6.Indemnity. Assignee agrees
to indemnify and hold harmless Assignor against any and all losses, cost and expenses (including, without limitation, attorneys’
fees) and liabilities incurred by Assignor in connection with or arising in any manner from Assignee’s performance or non-performance
of obligations assumed under this Assignment Agreement.


 


7.Subsequent Assignments. After
the Assignment Effective Date, Assignee shall have the right, pursuant to Section 11.11 of the Credit Agreement, to assign the
rights which are assigned to Assignee hereunder, provided that (a) any such subsequent assignment does not violate any of the
terms and conditions of the Credit Agreement, any of the other Related Writings, or any law, rule, regulation, order, writ, judgment,
injunction or decree and that any consent required under the terms of the Credit Agreement or any of the other Related Writings
has been obtained, (b) the assignee under such assignment from Assignee shall agree to assume all of Assignee’s obligations
hereunder in a manner satisfactory to Assignor, and (c) Assignee is not thereby released from any of its obligations to Assignor
hereunder.


 


8.Reductions of Aggregate Amount
of Commitments. If any reduction in the Total Commitment Amount occurs between the date of this Assignment Agreement and the
Assignment Effective Date, the percentage of the Total Commitment Amount assigned to Assignee shall remain the percentage specified
in Section 1 hereof and the dollar amount of the Commitment of Assignee shall be recalculated based on the reduced Total Commitment
Amount.


 


9.Acceptance of Administrative
Agent; Notice by Assignor. This Assignment Agreement is conditioned upon the acceptance and consent of the Administrative
Agent and, if necessary pursuant to Section 11.11 of the Credit Agreement, upon the acceptance and consent of the Borrower; provided
that the execution of this Assignment Agreement by the Administrative Agent and, if necessary, by the Borrower is evidence of
such acceptance and consent.


 


10.Entire Agreement. This Assignment
Agreement embodies the entire agreement and understanding between the parties hereto and supersedes all prior agreements and understandings
between the parties hereto relating to the subject matter hereof.


 


11.Governing Law. This Assignment
Agreement shall be governed by the laws of the State of New York.


 


12.Notices. Notices shall be
given under this Assignment Agreement in the manner set forth in the Credit Agreement. For the purpose hereof, the addresses of
the parties hereto (until notice of a change is delivered) shall be the address set forth under each party’s name on the
signature pages hereof.


 


13.Counterparts.
This Assignment Agreement may be executed in any number of counterparts, by different parties hereto in separate counterparts
and by facsimile signature, each of which when so executed and delivered shall be deemed to be an original and all of which taken
together shall constitute but one and the same agreement.


 


[Remainder of page intentionally left blank.]


 



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14.JURY TRIAL WAIVER. EACH OF THE
UNDERSIGNED, TO THE EXTENT PERMITTED BY LAW, WAIVES ANY RIGHT TO HAVE A JURY PARTICIPATE IN RESOLVING ANY DISPUTE, WHETHER SOUNDING
IN CONTRACT, TORT, OR OTHERWISE, AMONG THE ADMINISTRATIVE AGENT, ANY OF THE LENDERS, AND THE BORROWER, OR ANY THEREOF, ARISING
OUT OF, IN CONNECTION WITH, RELATED TO, OR INCIDENTAL TO THE RELATIONSHIP ESTABLISHED AMONG THEM IN CONNECTION WITH THIS ASSIGNMENT
AGREEMENT OR ANY NOTE OR OTHER AGREEMENT, INSTRUMENT OR DOCUMENT EXECUTED OR DELIVERED IN CONNECTION THEREWITH OR THE TRANSACTIONS
RELATED HERETO.


 


IN
WITNESS WHEREOF, the parties hereto have executed this Assignment Agreement by their duly authorized officers as of the date first
above written.


 





	 	 	[NAME OF THE ASSIGNOR]
	 	 	 
	Address:	 	 	 
	 	 	 	 
	 	Attn:	 	 	By:	 
	 	Phone:	 	 	Name:	 
	 	Fax:	 	 	Title:	 
	 	 	 	 	 	 
	 	 	[NAME OF THE ASSIGNEE]
	 	 	 
	Address:	 	 	 
	 	 	 	 
	 	Attn:	 	 	By:	 
	 	Phone:	 	 	Name:	 
	 	Fax:	 	 	Title:	 
	 	 	 
	Accepted and Consented to this ___ day of _______, 20__:	 	Accepted and Consented to this ___ day of _______, 20__:




 


	KEYBANK NATIONAL ASSOCIATION	 	[INSERT SIGNATURE OF THE BORROWER IF REQUIRED]
	    as the Administrative Agent	 	 
	 	 	 	[ZAGG, INC]
	By:	 	 	 
	Name:	 	 	By: 	 
	Title:	 	 	 	Name:	 
	 	 	 	 	Title:	 




 



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ANNEX
1


TO


ASSIGNMENT
AND ACCEPTANCE AGREEMENT


 


On
and after the Assignment Effective Date, after giving effect to all other assignments being made by Assignor on the Assignment
Effective Date, the Commitment of Assignee, and, if this is less than an assignment of all of Assignor’s interest, Assignor,
shall be as follows:





	I.	INTEREST
                                         BEING ASSIGNED TO ASSIGNEE






	 	A.	Revolving
                           Credit Commitment

                           Applicable
                           Commitment Percentage of
	 	%
	 	 	Revolving Credit
    Commitment	$	 
	 	 	Assigned Amount	 	 
	 	 	 	 	 
	 	B.	Term Loan Commitment	 	 
	 	 	Applicable Commitment Percentage of	 	 
	 	 	Term Loan Commitment	 	%
	 	 	Assigned Amount	$	 



 


	II.	ASSIGNEE’S
                                         COMMITMENT (as of the Assignment Effective Date)



 







	 	A.	Revolving
                           Credit Commitment

                           Applicable
                           Commitment Percentage of
	 	%
	 	 	Revolving Credit
    Commitment	$	 
	 	 	Assigned Amount	 	 
	 	 	 	 	 
	 	B.	Term Loan Commitment	 	 
	 	 	Applicable Commitment Percentage of	 	 
	 	 	Term Loan Commitment	 	%
	 	 	Assigned Amount	$	 













	III.	ASSIGNOR’S
                                         COMMITMENT (as of the Assignment Effective Date)



 






	 	A.	Revolving
                           Credit Commitment

                           Applicable
                           Commitment Percentage of
	 	%
	 	 	Revolving Credit
    Commitment	$	 
	 	 	Assigned Amount	 	 
	 	 	 	 	 
	 	B.	Term Loan Commitment	 	 
	 	 	Applicable Commitment Percentage of	 	 
	 	 	Term Loan Commitment	 	%
	 	 	Assigned Amount	$	 



 


 


E-14