Exhibit 10.2





 



 


FIRST LIEN TERM LOAN AGREEMENT


 


Dated as of March 28, 2013


 


among


 


SEQUENTIAL BRANDS GROUP, INC.,


 


as the Borrower


 


The Guarantors Named Herein


 


BANK OF AMERICA, N.A.


 


as Administrative Agent and Collateral Agent


 


and


 


The Lenders Party Hereto


 





 








    	 



    	 



    

 


TABLE OF CONTENTS


 


	Section	 	Page
	 	 	 
	ARTICLE I DEFINITIONS AND ACCOUNTING TERMS	1
	 	 
	1.01	Defined Terms	1
	1.02	Other Interpretive Provisions	29
	1.03	Accounting Terms	30
	1.04	Rounding	31
	1.05	Times of Day	31
	 	 	 
	ARTICLE II THE COMMITMENTS AND LOANS	31
	 	 
	2.01	Loans	31
	2.02	Continuations of Loans.	31
	2.03	Prepayments.	31
	2.04	Repayment of Obligations.	32
	2.05	Interest.	32
	2.06	Fees	33
	2.07	Computation of Interest and Fees	33
	2.08	Evidence of Debt.	33
	2.09	Payments Generally; Agent’s Clawback.	34
	2.10	Sharing of Payments by Lenders	34
	 	 	 
	ARTICLE III TAXES, YIELD PROTECTION AND ILLEGALITY	35
	 	 
	3.01	Taxes.	35
	3.02	Illegality	39
	3.03	Inability to Determine Rates	40
	3.04	Increased Costs; Reserves on LIBOR Rate Loans.	40
	3.05	Compensation for Losses	41
	3.06	Mitigation Obligations; Replacement of Lenders.	42
	3.07	Survival	42
	 	 	 
	ARTICLE IV CONDITIONS PRECEDENT TO LOANS	42
	 	 
	4.01	Conditions of Loan	42
	 	 	 
	ARTICLE V REPRESENTATIONS AND WARRANTIES	44
	 	 
	5.01	Existence, Qualification and Power	45
	5.02	Authorization; No Contravention	45
	5.03	Governmental Authorization; Other Consents	45
	5.04	Binding Effect	45
	5.05	Financial Statements; No Material Adverse Effect.	46
	5.06	Litigation	46
	5.07	No Default	46
	5.08	Ownership of Property; Liens	47
	5.09	Environmental Compliance.	47
	5.10	Insurance	48
	5.11	Taxes	48
	5.12	ERISA Compliance.	48


  




    	(i)



    	 



    

 


	5.13	Subsidiaries; Equity Interests	49
	5.14	Margin Regulations; Investment Company Act.	49
	5.15	Disclosure	49
	5.16	Compliance with Laws	50
	5.17	Intellectual Property; Licenses, Etc.	50
	5.18	Reserved.	50
	5.19	Security Documents.	50
	5.20	Solvency	51
	5.21	Deposit Accounts.	51
	5.22	Brokers	51
	5.23	Material Contracts	51
	 	 	 
	ARTICLE VI AFFIRMATIVE COVENANTS	51
	 	 
	6.01	Financial Statements	51
	6.02	Certificates; Other Information	52
	6.03	Notices	54
	6.04	Payment of Obligations	55
	6.05	Preservation of Existence, Etc.	55
	6.06	Maintenance of Properties; Material Intellectual Property	55
	6.07	Maintenance of Insurance	56
	6.08	Compliance with Laws	57
	6.09	Books and Records; Accountants.	57
	6.10	Inspection Rights; Appraisals of Intellectual Property.	57
	6.11	Additional Loan Parties	57
	6.12	Cash Management.	58
	6.13	Information Regarding the Collateral.	59
	6.14	Environmental Laws.	59
	6.15	Further Assurances.	59
	6.16	Material Contracts	60
	6.17	Right of First Refusal.	60
	6.18	Post-Closing Items.	60
	 	 	 
	ARTICLE VII NEGATIVE COVENANTS	61
	 	 
	7.01	Liens	61
	7.02	Investments	61
	7.03	Indebtedness; Disqualified Stock; Equity Issuances	61
	7.04	Fundamental Changes	61
	7.05	Dispositions	62
	7.06	Restricted Payments	62
	7.07	Prepayments of Indebtedness	62
	7.08	Change in Nature of Business	62
	7.09	Transactions with Affiliates	63
	7.10	Burdensome Agreements	63
	7.11	Use of Proceeds	63
	7.12	Amendment of Material Documents; Material Licenses.	64
	7.13	Fiscal Year.	64
	7.14	Deposit Accounts.	64


 


 




    	(ii)



    	 



    

 


	7.15	Financial Covenants.	64
	 	 	 
	ARTICLE VIII EVENTS OF DEFAULT AND REMEDIES	64
	 	 
	8.01	Events of Default	64
	8.02	Remedies Upon Event of Default	67
	8.03	Application of Funds	68
	8.04	Right to Cure.	69
	 	 	 
	ARTICLE IX THE AGENT	69
	 	 
	9.01	Appointment and Authority.	69
	9.02	Rights as a Lender	69
	9.03	Exculpatory Provisions	69
	9.04	Reliance by Agent.	70
	9.05	Delegation of Duties	71
	9.06	Resignation of Agent	71
	9.07	Non-Reliance on Agent and Other Lenders	72
	9.08	Agent May File Proofs of Claim	72
	9.09	Collateral and Guaranty Matters	72
	9.10	Notice of Transfer.	73
	9.11	Reports and Financial Statements.	73
	9.12	Agency for Perfection.	74
	9.13	Indemnification of Agent	74
	9.14	Relation among Lenders	74
	 	 	 
	ARTICLE X MISCELLANEOUS	74
	 	 
	10.01	Amendments, Etc.	74
	10.02	Notices; Effectiveness; Electronic Communications.	76
	10.03	No Waiver; Cumulative Remedies	77
	10.04	Expenses; Indemnity; Damage Waiver.	78
	10.05	Payments Set Aside	79
	10.06	Successors and Assigns.	79
	10.07	Treatment of Certain Information; Confidentiality	82
	10.08	Right of Setoff	83
	10.09	Interest Rate Limitation	83
	10.10	Counterparts; Integration; Effectiveness	83
	10.11	Survival	84
	10.12	Severability	84
	10.13	Replacement of Lenders	84
	10.14	Governing Law; Jurisdiction; Etc.	85
	10.15	Waiver of Jury Trial	86
	10.16	No Advisory or Fiduciary Responsibility	86
	10.17	USA PATRIOT Act Notice	87
	10.18	Foreign Asset Control Regulations	87
	10.19	Time of the Essence	87
	10.20	Press Releases.	87
	10.21	Additional Waivers.	88
	10.22	No Strict Construction.	89


 




    	(iii)



    	 



    

 


	10.23	Attachments.	89
	10.24	Electronic Execution of Assignments and Certain Other Documents.	89
	10.25	Keepwell.	90
	10.26	Second Lien Intercreditor Agreement.	90
	 	 	 
	SIGNATURES	S-1


 




    	(iv)



    	 



    

 


SCHEDULES


	1.01	Non-Guarantor Subsidiaries
	2.01	Commitments and Applicable Percentages
	5.01	Loan Parties Organizational Information
	5.08(b)(1)	Owned Real Estate
	5.08(b)(2)	Leased Real Estate
	5.10	Insurance
	5.13	Subsidiaries; Other Equity Investments
	5.17	Material Intellectual Property; Material Licenses
	5.21	Deposit Accounts
	5.23	Material Contracts
	7.01	Existing Liens
	7.02	Existing Investments
	7.03	Existing Indebtedness
	10.02	Agent’s Office; Certain Addresses for Notices


 


EXHIBITS


	 	Form of
	A	Assignment and Assumption
	B	Compliance Certificate
	C	Continuation Notice
	D	Note
	E-1	Foreign Lender Exemption Certificate
	E-2	Foreign Lender U.S. Tax Compliance Certificate
	E-3	Alternative Form Foreign Lender U.S. Tax Compliance Certificate
	E-4	Foreign Partnership U.S. Tax Compliance Certificate


 




    	(v)



    	 



    

 


FIRST LIEN TERM LOAN AGREEMENT


 


This FIRST LIEN TERM LOAN AGREEMENT (the “Agreement”)
is entered into as of March 28, 2013, among SEQUENTIAL BRANDS GROUP, INC., a Delaware corporation (the “Borrower”),
the Guarantors; each lender from time to time party hereto (collectively, the “Lenders” and individually, a
“Lender”); and BANK OF AMERICA, N.A., as Administrative Agent and Collateral Agent.


 


The Borrower has requested that the Lenders provide a term loan
facility, and the Lenders have indicated their willingness to lend on the terms and conditions set forth herein.


 


In consideration of the mutual covenants and agreements herein
contained, the parties hereto covenant and agree as follows:


 


ARTICLE
I

DEFINITIONS AND ACCOUNTING TERMS


 


1.01         Defined
Terms. As used in this Agreement, the following terms shall have the meanings set forth below:


 


“Accommodation Payment”
as defined in Section 10.21(c).


 


“Acquisition” means, with respect to any Person
(a) a purchase of a Controlling interest in the Equity Interests of any other Person, (b) a purchase or other acquisition of all
or substantially all of the assets or properties of, another Person or of any business unit of another Person, or (c) any merger
or consolidation of such Person with any other Person or other transaction or series of transactions resulting in the acquisition
of all or substantially all of the assets, or a Controlling interest in the Equity Interests, of any Person, in each case in
any transaction or group of transactions which are part of a common plan.


 


“Act” shall have the meaning provided in Section
10.17.


 


“Adjusted LIBOR Rate” means, with respect to any
LIBOR Rate Loan for any Interest Period, an interest rate per annum (rounded upwards, if necessary, to the next 1/16 of one percent
(1%)) equal to the LIBOR Rate for such Interest Period multiplied by the Statutory Reserve Rate. The
Adjusted LIBOR Rate will be adjusted automatically as to all LIBOR Rate Loans then outstanding as of the effective date of any
change in the Statutory Reserve Rate.


 


“Affiliate” means, with respect to any Person, (i)
another Person that directly, or indirectly through one or more intermediaries, Controls or is Controlled by or is under common
Control with the Person specified, (ii) any director, officer, managing member, partner, trustee, or beneficiary of that Person,
(iii) any other Person directly or indirectly holding 10% or more of any class of the Equity Interests of that Person, and (iv)
any other Person 10% or more of any class of whose Equity Interests is held directly or indirectly by that Person.


 


“Agent” means Bank of America in its capacity as
administrative agent and collateral agent under any of the Loan Documents, or any successor thereto.


 


“Agent Parties” shall have the meaning specified
in Section 10.02(c).


 


“Agent’s Office”
means the Agent’s address and, as appropriate, account as set forth on Schedule 10.02,
or such other address or account as the Agent may from time to time notify the Borrower and the Lenders.


 


“Aggregate Commitments” means the sum of the Commitments
of all the Lenders. As of the Closing Date, the Aggregate Commitments are $45,000,000.


 


“Agreement” means this Credit Agreement.


 


“Allocable Amount” has the meaning specified in
Section 10.21(d).


 




    	1



    	 



    

 


“Applicable Lenders” means the Required Lenders,
all affected Lenders, or all Lenders, as the context may require.


 


“Applicable Margin” means the per annum percentages
set forth in the pricing grid below:


 


	Applicable Margin for LIBOR Rate Loans	 	Applicable Margin for Base Rate Loans
	4.00%	 	3.00%


 


“Applicable Percentage” means,
with respect to any Lender at any time, the percentage (carried out to the ninth decimal place) obtained by dividing (x)
the outstanding principal balance of such Lender’s Loans by (y) the aggregate outstanding principal balance of the Loans
of all Lenders.


 


“Approved Fund” means any Fund that is administered
or managed by (a) a Lender, (b) an Affiliate of a Lender (c) an entity or an Affiliate of an entity that administers or manages
a Lender, or (d) the same investment advisor or an advisor under common control with such Lender, Affiliate or advisor, as applicable.


 


“Assignee Group” means two or more Eligible Assignees
that are Affiliates of one another or two or more Approved Funds managed by the same investment advisor.


 


“Assignment and Assumption” means an assignment
and assumption entered into by a Lender and an Eligible Assignee (with the consent of any party whose consent is required by Section
10.06(b)), and accepted by the Agent, in substantially the form of Exhibit A or any other form approved by the Agent.


 


“Attributable Indebtedness” means, on any date,
(a) in respect of any Capital Lease Obligation of any Person, the capitalized amount thereof that would appear on a balance sheet
of such Person prepared as of such date in accordance with GAAP, and (b) in respect of any Synthetic Lease Obligation, the capitalized
amount of the remaining lease or similar payments under the relevant lease or other applicable agreement or instrument that would
appear on a balance sheet of such Person prepared as of such date in accordance with GAAP if such lease, agreement or instrument
were accounted for as a capital lease.


 


“Audited Financial Statements” means the audited
Consolidated balance sheet of the Borrower and its Subsidiaries for the Fiscal Year ended December 31, 2011, and the related Consolidated
statements of income or operations, Shareholders’ Equity and cash flows for such Fiscal Year of the Borrower and its Subsidiaries,
including the notes thereto.


 


“Bank of America” means Bank of America, N.A. and
its successors.


 


“Bank Products” means any services of facilities
provided to any Loan Party by the Agent, any Lender, or any of their respective Affiliates, including, without limitation, on account
of (a) Swap Contracts, (b) purchase cards, (c) leasing, (d) factoring, and (e) supply chain finance services (including, without
limitation, trade payable services and supplier accounts receivable purchases), but excluding Cash Management Services.


 


“Base Rate”  means for any day a fluctuating
rate per annum equal to the higher of (a) the rate of interest in effect for such day as publicly announced from time to time by
Bank of America as its “prime rate”; and (b) the Federal Funds Rate for such day, plus 0.50%. The “prime rate”
is a rate set by Bank of America based upon various factors including Bank of America’s costs and desired return, general
economic conditions and other factors, and is used as a reference point for pricing some loans, which may be priced at, above,
or below such announced rate. Any change in Bank of America’s prime rate or the Federal Funds Rate, respectively, shall take
effect at the opening of business on the day specified in the public announcement of such change.


 


“Base Rate Loan” means a Loan that bears interest
based on the Base Rate.


 


“Blocked Account” has the meaning provided in Section
6.12(a).


 




    	2



    	 



    

 


“Blocked Account Agreement” means with respect to
an account established by a Loan Party (other than Excluded Accounts), an agreement, in form and substance reasonably satisfactory
to the Agent, establishing control (as defined in the UCC) of such account by the Agent and whereby the Blocked Account Bank agrees,
upon the occurrence and during the continuance of an Event of Default, to comply only with the instructions originated by the Agent
without the further consent of any Loan Party.


 


“Blocked Account Bank” means each bank with whom
Deposit Accounts are maintained and with whom a Blocked Account Agreement has been, or is required to be, executed in accordance
with the terms hereof.


 


“Borrower” has the meaning specified in the introductory
paragraph hereto.


 


“Brand Matter Acquisition” means
the acquisition by the Borrower of certain assets of B®and Matter, LLC pursuant to the Brand Matter Acquisition Agreement.


 


“Brand Matter Acquisition Agreement” means that
certain Purchase Agreement dated as of March 28, 2013, by and among the Borrower, as Purchaser (as defined therein) and ETPH Acquisition,
LLC, a limited liability company organized under the laws of Delaware, as Seller (as defined therein).


 


“Business Day” means any day other than a Saturday,
Sunday or other day on which commercial banks are authorized to close under the Laws of, or are in fact closed in, the state where
the Agent’s Office is located and, if such day relates to any LIBOR Rate Loan, means any such day on which dealings in Dollar
deposits are conducted by and between banks in the London interbank market.


 


“Capital Expenditures” means,
with respect to any Person for any period, (a) all expenditures made (whether made in the form of cash or other property) or costs
incurred for the acquisition or improvement of fixed or capital assets of such Person (excluding normal replacements and maintenance
which are properly charged to current operations), in each case that are (or should be) set forth as capital expenditures in a
Consolidated statement of cash flows of such Person for such period, in each case prepared in accordance with GAAP, and (b) Capital
Lease Obligations incurred by a Person during such period.


 


“Capital Lease Obligations” means, with respect
to any Person for any period, the obligations of such Person to pay rent or other amounts under any lease of (or other arrangement
conveying the right to use) real or personal property, or a combination thereof, which obligations are required to be classified
and accounted for as liabilities on a balance sheet of such Person under GAAP and the amount of which obligations shall be the
capitalized amount thereof determined in accordance with GAAP.


 


“Cash Management Services” means any cash management
services provided to any Loan Party by the Agent or any Lender or any of their respective Affiliates, including, without limitation,
(a) automated clearinghouse transfer transactions, (b) controlled disbursement services, treasury, depository, overdraft, and electronic
funds transfer services, (c) credit card processing services, and (d) credit or debit cards.


 


“CERCLA” means the Comprehensive Environmental Response,
Compensation, and Liability Act, 42 U.S.C. § 9601 et seq.


 


“CERCLIS” means the Comprehensive Environmental
Response, Compensation, and Liability Information System maintained by the United States Environmental Protection Agency.


 


“CFC” means a Person that is a controlled foreign
corporation under Section 957 of the Code.


 




    	3



    	 



    

 


“Change in Law” means the occurrence, after the
date of this Agreement, of any of the following: (a) the adoption or taking effect of any law, rule, regulation or treaty, (b)
any change in any law, rule, regulation or treaty or in the administration, interpretation, implementation or application thereof
by any Governmental Authority or (c) the making or issuance of any request, rule, guideline or directive (whether or not having
the force of law) by any Governmental Authority; provided that notwithstanding anything
herein to the contrary, (x) the Dodd-Frank Wall Street Reform and Consumer Protection Act and all requests, rules, guidelines or
directives thereunder or issued in connection therewith and (y) all requests, rules, guidelines or directives promulgated by the
Bank for International Settlements, the Basel Committee on Banking Supervision (or any successor or similar authority) or the United
States or foreign regulatory authorities, in each case pursuant to Basel III, shall in each case be deemed to be a “Change
in Law”, regardless of the date enacted, adopted or issued.


 


“Change of Control” means an event or series of
events by which:


 


(a)          any
“person” or “group” (as such terms are used in Sections 13(d) and 14(d) of the Securities Exchange Act
of 1934, but excluding any employee benefit plan of such person or its subsidiaries, and any person or entity acting in its capacity
as trustee, agent or other fiduciary or administrator of any such plan) becomes the “beneficial owner” (as defined
in Rules 13d-3 and 13d-5 under the Securities Exchange Act of 1934, except that a person or group shall be deemed to have “beneficial
ownership” of all securities that such person or group has the right to acquire, whether such right is exercisable immediately
or only after the passage of time (such right, an “option right”)), directly or indirectly, of 45% or more of
the Equity Interests of the Borrower entitled to vote for members of the board of directors or equivalent governing body of the
Borrower on a fully-diluted basis (and taking into account all such Equity Interests that such “person” or “group”
has the right to acquire pursuant to any option right); or


 


(b)          during
any period of 12 consecutive months, a majority of the members of the board of directors or other equivalent governing body of
the Borrower cease to be composed of individuals (i) who were members of that board or equivalent governing body on the first day
of such period, (ii) whose election or nomination to that board or equivalent governing body was approved by individuals referred
to in clause (i) above constituting at the time of such election or nomination at least a majority of that board or equivalent
governing body or (iii) whose election or nomination to that board or other equivalent governing body was approved by individuals
referred to in clauses (i) and (ii) above constituting at the time of such election or nomination at least a majority of that board
or equivalent governing body (excluding, in the case of both clause (ii) and clause (iii), any individual whose initial nomination
for, or assumption of office as, a member of that board or equivalent governing body occurs as a result of an actual or threatened
solicitation of proxies or consents for the election or removal of one or more directors by any person or group other than a solicitation
for the election of one or more directors by or on behalf of the board of directors); or


 


(c)          any
“change in control” or similar event as defined in any Material Contract or any document governing Material Indebtedness
of any Loan Party; or


 


(d)          the
Borrower fails at any time to own, directly or indirectly, 100% of the Equity Interests of each other Loan Party (other than the
William Rast Entities), free and clear of all Liens (other than the Liens in favor of the Agent and Liens permitted pursuant
to clause (o) of the definition of Permitted Encumbrances), except where such failure is as a result of a transaction not prohibited
by the Loan Documents; or


 




    	4



    	 



    

 


(e)          (i)
(1) the Borrower fails at any time to own, directly or indirectly, 82% of the Equity Interests of William Rast Sourcing and William
Rast Licensing; or (2) the Borrower fails at any time to own, directly or indirectly, 100% of the Class A Membership Interests
of William Rast Sourcing and William Rast Licensing in each case, free and clear of all Liens (other than the Liens in favor of
the Agent and Liens permitted pursuant to clause (o) of the definition of Permitted Encumbrances), except where such failure is
as a result of a transaction not prohibited by the Loan Documents; or


 


(f)          the
Borrower fails at any time to own, directly or indirectly, 60% of the Equity Interests of DVS, free and clear of all Liens (other
than the Liens in favor of the Agent and Liens permitted pursuant to clause (o) of the definition of Permitted Encumbrances), except
where such failure is as a result of a transaction not prohibited by the Loan Documents.


 


“Closing Date” means the first date all the conditions
precedent in Section 4.01 are satisfied or waived in accordance with Section 10.01.


 


“Code” means the Internal Revenue Code of 1986,
and the regulations promulgated thereunder, as amended and in effect.


 


“Collateral” means any and all “Collateral”
as defined in any applicable Security Document and all other property that is or is intended under the terms of the Security Documents
to be subject to Liens in favor of the Agent.


 


“Collection Account” has the meaning provided in
Section 6.12(b).


 


“Commodity Exchange Act” means the Commodity Exchange
Act (7 U.S.C. § 1 et seq.).


 


“Commitment” means, as to each Lender, its obligation
to make Loans to the Borrower pursuant to Section 2.01 in an aggregate principal amount equal to the amount set forth opposite
such Lender’s name on Schedule 2.01.


 


“Compliance Certificate” means a certificate substantially
in the form of Exhibit B.


 


“Connection Income Taxes” means Other Connection
Taxes that are imposed on or measured by net income (however denominated) or that are franchise Taxes or branch profits Taxes.


 


“Consent” means actual consent given by a Lender
from whom such consent is sought; or the passage of seven (7) Business Days from receipt of written notice to a Lender from the
Agent of a proposed course of action to be followed by the Agent without such Lender’s giving the Agent written notice of
that Lender’s objection to such course of action.


 


“Consolidated” means, when used to modify a financial
term, test, statement, or report of a Person, the application or preparation of such term, test, statement or report (as applicable)
based upon the consolidation, in accordance with GAAP, of the financial condition or operating results of such Person and its Subsidiaries.


 


“Consolidated EBITDA” means, at any date of determination,
an amount equal to Consolidated Net Income of the Borrower and its Subsidiaries on a Consolidated basis for the applicable measurement
period, plus (a) the following to the extent deducted in calculating such Consolidated Net Income: (i) Consolidated Interest Charges,
(ii) the provision for Federal, state, local and foreign income Taxes, (iii) depreciation and amortization expense and (iv) other
non-recurring expenses reducing such Consolidated Net Income which do not represent a cash item in such period or any future period
(in each case of or by the Borrower and its Subsidiaries for such period), minus (b) the following to the extent included in calculating
such Consolidated Net Income: (i) Federal, state, local and foreign income tax credits and (ii) all non-cash items increasing Consolidated
Net Income (in each case of or by the Borrower and its Subsidiaries for such period), all as determined on a Consolidated basis
in accordance with GAAP.


 




    	5



    	 



    

 


“Consolidated Excess Cash Flow” means, for any period,
the amount by which (a)(i) Consolidated EBITDA, less (ii) the sum of (A) cash payments for all Federal, state and local
income taxes paid during such period (less any cash refunds received by the Borrower and its Subsidiaries during such period),
and (B) Capital Expenditures made during such period exceeds (b) the sum of (i) Consolidated Interest Charges paid in cash for
such period, plus (ii) principal payments (other than payments to the Lenders made on account of mandatory prepayments of
Consolidated Excess Cash Flow) made or scheduled to be made on Indebtedness in such period.


 


“Consolidated Fixed Charge Coverage Ratio” means,
at any date of determination, the ratio of (a) (i) Consolidated EBITDA for such period minus (ii) Capital Expenditures made during
such period, minus (iii) the aggregate amount of Federal, state, local and foreign income taxes paid in cash during such period
(but not less than zero) to (b) the sum of (i) Debt Service Charges plus (ii) the aggregate amount of all Restricted Payments,
in each case, of or by the Borrower and its Subsidiaries for the applicable measurement period, all as determined on a Consolidated
basis in accordance with GAAP.


 


“Consolidated Interest Charges” means, for the applicable
measurement period, the sum of (a) all interest, premium payments, debt discount, fees, charges and related expenses in connection
with borrowed money (including capitalized interest) or in connection with the deferred purchase price of assets, in each case
to the extent treated as interest in accordance with GAAP, including, without limitation, all commissions, discounts and other
fees and charges owed with respect to letters of credit and bankers’ acceptance financing and net costs under Swap Contracts,
but excluding any non-cash or deferred interest financing costs, and (b) the portion of rent expense with respect to such period
under Capital Lease Obligations that is treated as interest in accordance with GAAP minus (c) interest income during such period
(excluding any portion of interest income representing accruals of amounts received in a previous period), in each case of or by
the Borrower and its Subsidiaries for the most recently completed period, all as determined on a Consolidated basis in accordance
with GAAP.


 


“Consolidated Net Income” means, as of any date
of determination, the net income of the Borrower and its Subsidiaries for the applicable measurement period, all as determined
on a Consolidated basis in accordance with GAAP, provided, however, that there shall be excluded (a) extraordinary gains and extraordinary
losses for such period, (b) the income (or loss) of any Subsidiary during such period in which any other Person has a joint interest,
except to the extent of the amount of cash dividends or other distributions actually paid in cash to the Borrower during such period,
(c) the income (or loss) of any Subsidiary during such period and accrued prior to the date it becomes a Subsidiary of the Borrower
or any of its Subsidiaries or is merged into or consolidated with the Borrower or any of its Subsidiaries or that Person’s
assets are acquired by the Borrower or any of its Subsidiaries, and (d) the income of any direct or indirect Subsidiary of the
Borrower to the extent that the declaration or payment of dividends or similar distributions by that Subsidiary of that income
is not at the time permitted by operation of the terms of its Organization Documents or any agreement, instrument, judgment, decree,
order, statute, rule or governmental regulation applicable to that Subsidiary, except that the cash proceeds received by any Loan
Party from any licensing of any Intellectual Property (including any licensing in any foreign jurisdiction) shall be included in
determining Consolidated Net Income and the Borrower’s equity in any net loss of any such Subsidiary for such period shall
be included in determining Consolidated Net Income.


 




    	6



    	 



    

 


“Consolidated Positive Net Income” means, as of
any date of determination, an amount equal to Consolidated Net Income of the Borrower and its Subsidiaries on a Consolidated basis
for the applicable measurement period, plus the following to the extent deducted in calculating such Consolidated Net Income: (a)
depreciation and amortization expense, (b) one-time non-cash charges, non-cash compensation, non-cash Federal, state, local and
foreign income taxes relating to amortization of intangibles for tax purposes and non-cash interest, (c) one-time costs relating
to any Permitted Acquisition (of the type referred to in clause (ii) of the definition thereof) or fees in connection with any
Permitted Indebtedness in an amount not to exceed $5,000,000 in any Fiscal Year of the Borrower, and (d) wind-down costs related
to the Heelys Acquisition and discontinued operations for the twelve month period following the Closing Date in an amount not to
exceed $5,000,000 in the aggregate, all as determined on a Consolidated basis in accordance with GAAP.


 


“Consolidated Total Indebtedness” means, as of any
date of determination, for the Borrower and its Subsidiaries on a Consolidated basis, without duplication, the sum of (a) the outstanding
principal amount of all obligations, whether current or long-term, for borrowed money (including Obligations hereunder, but excluding
the convertible notes issued pursuant to the Securities Purchase Agreement) and all obligations evidenced by bonds, debentures,
notes, loan agreements or other similar instruments, (b) all purchase money Indebtedness, (c) all direct obligations arising under
letters of credit (including standby and commercial), bankers’ acceptances, bank guaranties, surety bonds and similar instruments,
(d) all obligations in respect of the deferred purchase price of property or services (other than trade accounts payable in the
ordinary course of business), (e) all Attributable Indebtedness, (f) without duplication, all Guarantees with respect to outstanding
Indebtedness of the types specified in clauses (a) through (e) above of Persons other than the Borrower or any Subsidiary, and
(g) all Indebtedness of the types referred to in clauses (a) through (f) above of any partnership or joint venture (other than
a joint venture that is itself a corporation or limited liability company) in which the Borrower or a Subsidiary is a general partner
or joint venturer, unless such Indebtedness is expressly made non-recourse to the Borrower or such Subsidiary.


 


“Continuation Notice” means a notice substantially
in the form of Exhibit C hereto.


 


“Contractual Obligation” means, as to any Person,
any provision of any security issued by such Person or of any agreement, instrument or other undertaking to which such Person is
a party or by which it or any of its property is bound.


 


“Control” means the possession, directly or indirectly,
of the power to direct or cause the direction of the management or policies of a Person, whether through the ability to exercise
voting power, by contract or otherwise. “Controlling” and “Controlled” have meanings correlative thereto.


 


“Copyright” has the meaning specified in the Security
Agreement.


 


“Copyright Security Agreement” means the Grant of
Security Interest in United States Copyrights dated as of the Closing Date among certain Loan Parties and the Agent.


 


“Credit Party” or “Credit Parties” means
(a) individually, (i) each Lender and its Affiliates, (ii) the Agent, (iii) each beneficiary of each indemnification obligation
undertaken by any Loan Party under any Loan Document, (iv) any other Person to whom Obligations under this Agreement and other
Loan Documents are owing, and (v) the successors and assigns of each of the foregoing, and (b) collectively, all of the foregoing.


 




    	7



    	 



    

 


“Credit Party Expenses” means (a) all reasonable
out-of-pocket expenses incurred by the Agent and its Affiliates in connection with this Agreement and the other Loan Documents,
including without limitation (i) the reasonable fees, charges and disbursements of (A) counsel for the Agent, (B) outside consultants
for the Agent, (C) appraisers, and (D) commercial finance examiners, in connection with (1) the preparation, negotiation, administration,
management, execution and delivery of this Agreement and the other Loan Documents or any amendments, modifications or waivers of
the provisions thereof (whether or not the transactions contemplated hereby or thereby shall be consummated), (2) the enforcement
or protection of its rights in connection with this Agreement or the Loan Documents or efforts to preserve, protect, collect, or
enforce the Collateral or in connection with any proceeding under any Debtor Relief Laws, or (3) any workout, restructuring or
negotiations in respect of any Obligations, and (ii) all customary fees and charges (as adjusted from time to time) of the Agent
with respect to the disbursement of funds (or the receipt of funds) to or for the account of the Borrower (whether by wire transfer
or otherwise), together with any out-of-pocket costs and expenses incurred in connection therewith, and (b) all reasonable out-of-pocket
expenses incurred by the Credit Parties who are not the Agent or any Affiliate after the occurrence and during the continuance
of an Event of Default, provided that such Credit Parties as a whole shall be entitled to reimbursement for no more than one counsel
representing all such Credit Parties (absent an actual conflict of interest in which case such affected Credit Parties may engage
and be reimbursed for one additional counsel for the affected Credit Parties taken as a whole).


 


“Debt Service Charges” means for any applicable
measurement period, the sum of (a) Consolidated Interest Charges paid or required to be paid for such period, plus (b) principal
payments made or required to be made on account of Indebtedness (excluding any Synthetic Lease Obligations but including, without
limitation, the principal component of all Obligations and of any Capital Lease Obligations) for such period, in each case determined
on a Consolidated basis in accordance with GAAP.


 


“Debtor Relief Laws” means the Bankruptcy Code of
the United States, and all other liquidation, conservatorship, bankruptcy, assignment for the benefit of creditors, moratorium,
rearrangement, receivership, insolvency, reorganization, or similar debtor relief Laws of the United States or other applicable
jurisdictions from time to time in effect.


 


“Default” means any event or condition that constitutes
an Event of Default or that, with the giving of any notice, the passage of time, or both, would be an Event of Default.


 


“Default Rate” means, with respect to any Loan,
an interest rate equal to the interest rate otherwise applicable to such Loan plus two percent (2%) per annum.


 


“Deposit Account” means each checking, savings or
other demand deposit account maintained by any of the Loan Parties. All funds in each Deposit Account shall be conclusively presumed
to be Collateral and proceeds of Collateral and the Agent and the Lenders shall have no duty to inquire as to the source of the
amounts on deposit in any Deposit Account.


 


“Disposition” or “Dispose” means the
sale, transfer, license, lease or other disposition (including any sale and leaseback transaction), whether in one transaction
or in a series of transactions, of any property (including, without limitation, any Equity Interests other than Equity Interests
of the Borrower) by any Person (or the granting of any option or other right to do any of the foregoing), including any sale, assignment,
transfer or other disposal, with or without recourse, of any notes or accounts receivable or any rights and claims associated therewith.


 


“Disqualified Stock” means any Equity Interest that,
by its terms (or by the terms of any security into which it is convertible, or for which it is exchangeable, in each case at the
option of the holder thereof), or upon the happening of any event, matures or is mandatorily redeemable, pursuant to a sinking
fund obligation or otherwise, or redeemable at the option of the holder thereof, in whole or in part, on or prior to the date that
is ninety-one (91) days after the date on which the Loans mature. The amount of Disqualified Stock deemed to be outstanding at
any time for purposes of this Agreement will be the maximum amount that the Borrower and its Subsidiaries may become obligated
to pay upon maturity of, or pursuant to any mandatory redemption provisions of, such Disqualified Stock or portion thereof, plus
accrued dividends.


 




    	8



    	 



    

 


“Dollars” and “$” mean lawful money
of the United States.


 


“DVS” means DVS Footwear International LLC, a Delaware
limited liability company.


 


“Early Termination Fee” has the meaning set forth
in Section 2.06(a).


 


“Eligible Assignee” means (a) a Credit Party which
is a Credit Party on the Closing Date or becomes a Credit Party pursuant to any of clauses (b) through (d) below, or any of its
Affiliates; (b) a bank, insurance company, or company engaged in the business of making commercial loans, which Person, together
with its Affiliates, has a combined capital and surplus in excess of $250,000,000; (c) an Approved Fund; and (d) any other Person
(other than a natural Person) satisfying the requirements of Section 10.06(b) hereof; provided that notwithstanding the
foregoing, “Eligible Assignee” shall not include a Loan Party or any of their respective Affiliates or Subsidiaries.


 


“Environmental Laws” means any and all applicable
Federal, state, local, and foreign statutes, laws, regulations, ordinances, rules, judgments, orders, decrees, permits, or governmental
restrictions relating to pollution and the protection of the environment or the release of any materials into the environment,
including those related to Hazardous Materials.


 


“Environmental Liability” means any liability, obligation,
damage, loss, claim, action, suit, judgment, order, fine, penalty, fee, expense, or cost, contingent or otherwise (including any
liability for damages, costs of environmental remediation, fines, penalties or indemnities), of the Borrower, any other Loan Party
or any of their respective Subsidiaries directly or indirectly resulting from or based upon (a) violation of any Environmental
Law, (b) the generation, use, handling, transportation, storage, treatment or disposal or presence of any Hazardous Materials,
(c) exposure to any Hazardous Materials, (d) the release or threatened release of any Hazardous Materials into the environment
or (e) any contract, agreement or other consensual arrangement pursuant to which liability is assumed or imposed with respect to
any of the foregoing.


 


“Equity Interests” means, with respect to any Person,
all of the shares of capital stock of (or other ownership or profit interests in) such Person, all of the warrants, options or
other rights for the purchase or acquisition from such Person of shares of capital stock of (or other ownership or profit interests
in) such Person, all of the securities convertible into or exchangeable for shares of capital stock of (or other ownership or profit
interests in) such Person or warrants, rights or options for the purchase or acquisition from such Person of such shares (or such
other interests), and all of the other ownership or profit interests in such Person (including partnership, member or trust interests
therein), whether voting or non-voting, and whether or not such shares, warrants, options, rights or other interests are outstanding
on any date of determination.


 


“ERISA” means the Employee Retirement Income Security
Act of 1974.


 


“ERISA Affiliate” means any trade or business (whether
or not incorporated) under common control with the Borrower within the meaning of Section 414(b) or (c) of the Code (and Sections
414(m) and (o) of the Code for purposes of provisions relating to Section 412 of the Code).


 




    	9



    	 



    

 


“ERISA Event” means (a) a Reportable Event
with respect to a Pension Plan; (b) the withdrawal of the Borrower or any ERISA Affiliate from a Pension Plan subject to Section
4063 of ERISA during a plan year in which such entity was a “substantial employer” as defined in Section 4001(a)(2)
of ERISA or a cessation of operations that is treated as such a withdrawal under Section 4062(e) of ERISA; (c) a complete
or partial withdrawal by the Borrower or any ERISA Affiliate from a Multiemployer Plan or notification that a Multiemployer Plan
is in reorganization; (d) the filing of a notice of intent to terminate, the treatment of a Pension Plan amendment as a termination
under Section 4041 or 4041A of ERISA; (e) the institution by the PBGC of proceedings to terminate a Pension Plan; (f) any
event or condition which constitutes grounds under Section 4042 of ERISA for the termination of, or the appointment of a trustee
to administer, any Pension Plan; (g) the determination that any Pension Plan is considered an at-risk plan or a plan in endangered
or critical status within the meaning of Sections 430, 431 and 432 of the Code or Sections 303, 304 and 305 of ERISA; or (h) the
imposition of any liability under Title IV of ERISA, other than for PBGC premiums due but not delinquent under Section 4007 of
ERISA, upon the Borrower or any ERISA Affiliate.


 


“Event of Default” has the meaning specified in
Section 8.01. An Event of Default shall be deemed to be continuing unless and until that Event of Default has been duly waived
as provided in Section 10.01 hereof.


 


“Excluded Account” has the meaning specified in
Section 6.12.


 


“Excluded Subsidiary” means a Subsidiary of the
Borrower that is organized for the purpose of, and is engaged solely in the business of, owning Intellectual Property to be acquired
pursuant to a Permitted Acquisition, and which Subsidiary complies with the following requirements: (i) such Subsidiary is subject
to customary restrictions to make such Subsidiary a special purpose, bankruptcy remote entity, as determined by the Agent in its
reasonable discretion; (ii) such Subsidiary maintains Deposit Accounts and other bank accounts which are separate from the Borrower
and the other Loan Parties and does not co-mingle any cash or cash equivalents of such Subsidiary with the Borrower or any other
Loan Party; (iii) no Loan Party issues or incurs any Indebtedness or Guarantee in respect of, or grants any Lien on any of its
assets or properties to secure, any Indebtedness, liabilities or other obligations of such Subsidiary, and (iv) no Loan Party has
any obligation to maintain such Subsidiary’s financial condition or cause such Subsidiary to achieve any level of operating
results.


 


“Excluded Swap Obligation” means, with respect to
any Loan Party, any Swap Obligation if, and to the extent that, all or a portion of the Guaranty of such Loan Party of, or the
grant under a Loan Document by such Loan Party of a security interest to secure, such Swap Obligation (or any Guarantee thereof)
is or becomes illegal under the Commodity Exchange Act (or the application or official interpretation thereof) by virtue of such
Loan Party’s failure for any reason to constitute an “eligible contract participant” as defined in the Commodity
Exchange Act (determined after giving effect to Section 10.25 hereof and any and all guarantees of such Loan Party’s Swap
Obligations by other Loan Parties) at the time the Guaranty of such Loan Party, or grant by such Loan Party of a security interest,
becomes effective with respect to such Swap Obligation. If a Swap Obligation arises under a Master Agreement governing more than
one Swap Contract, such exclusion shall apply only to the portion of such Swap Obligation that is attributable to Swap Contracts
for which such Guaranty or security interest becomes illegal.


 


“Excluded Taxes” means any of
the following Taxes imposed on or with respect to any Recipient or required to be withheld or deducted from a payment to a Recipient,
(a) Taxes imposed on or measured by net income (however denominated), franchise Taxes, and branch profits Taxes, in each case,
(i) imposed as a result of such Recipient being organized under the laws of, or having its principal office or, in the case of
any Lender, its Lending Office located in, the jurisdiction imposing such Tax (or any political subdivision thereof) or (ii) that
are Other Connection Taxes, (b) in the case of a Lender, U.S. federal withholding Taxes imposed on amounts payable to or for the
account of such Lender with respect to an applicable interest in a Loan pursuant to a law in effect on the date on which (i) such
Lender acquires such interest in the Loan (other than pursuant to an assignment request by the Borrower under Section 10.13) or
(ii) such Lender changes its Lending Office, except in each case to the extent that, pursuant to Section 3.01(a)(ii) or (c), amounts
with respect to such Taxes were payable either to such Lender’s assignor immediately before such Lender became a party hereto
or to such Lender immediately before it changed its Lending Office, (c) Taxes attributable to such Recipient’s failure to
comply with Section 3.01(e) and (d) any U.S. federal withholding Taxes imposed pursuant to FATCA.


 




    	10



    	 



    

 


“Executive Order” has the meaning set forth in Section
10.18.


 


“Facility Guaranty” means the Guaranty made by the
Guarantors in favor of the Agent and the other Credit Parties, in form reasonably satisfactory to the Agent.


 


“FATCA” means Sections 1471 through 1474 of the
Code, as of the date of this Agreement (or any amended or successor version that is substantively comparable and not materially
more onerous to comply with), any current or future regulations or official interpretations thereof and any agreements entered
into pursuant to Section 1471(b)(1) of the Code.


 


“Federal Funds Rate” means, for any day,
the rate per annum equal to the weighted average of the rates on overnight Federal funds transactions with members of the Federal
Reserve System arranged by Federal funds brokers on such day, as published by the Federal Reserve Bank of New York on the Business
Day next succeeding such day; provided that (a) if such day is not a Business Day, the Federal Funds Rate for such day shall be
such rate on such transactions on the next preceding Business Day as so published on the next succeeding Business Day, and (b)
if no such rate is so published on such next succeeding Business Day, the Federal Funds Rate for such day shall be the average
rate (rounded upward, if necessary, to a whole multiple of 1/100 of 1%) charged to Bank of America on such day on such transactions
as determined by the Agent.


 


“Fee Letter” means the letter agreement, dated February
4, 2013, between the Borrower and the Agent.


 


“Fiscal Month” means any fiscal month of any Fiscal
Year, which month shall generally end on the last day of each calendar month in accordance with the fiscal accounting calendar
of the Borrower.


 


“Fiscal Quarter” means any fiscal quarter of any
Fiscal Year, which quarters shall generally end on the last day of each March, June, September and December of such Fiscal Year
in accordance with the fiscal accounting calendar of the Borrower.


 


“Fiscal Year” means any period of twelve consecutive
months ending on December 31 of any calendar year.


 


“Foreign Asset Control Regulations” has the meaning
set forth in Section 10.18.


 


“Foreign Lender” means any Lender that is organized
under the laws of a jurisdiction other than that in which the Borrower is resident for tax purposes. For purposes of this definition,
the United States, each State thereof and the District of Columbia shall be deemed to constitute a single jurisdiction.


 


“FRB” means the Board of Governors of the Federal
Reserve System of the United States.


 


“Fund” means any Person (other than a natural person)
that is (or will be) engaged in making, purchasing, holding or otherwise investing in commercial loans and similar extensions of
credit in the ordinary course of its business.


 


“GAAP” means generally accepted accounting principles
in the United States set forth in the opinions and pronouncements of the Accounting Principles Board and the American Institute
of Certified Public Accountants and statements and pronouncements of the Financial Accounting Standards Board or such other principles
as may be approved by a significant segment of the accounting profession in the United States, that are applicable to the circumstances
as of the date of determination, consistently applied.


 




    	11



    	 



    

 


“Governmental Authority” means the government of
the United States or any other nation, or of any political subdivision thereof, whether state or local, and any agency, authority,
instrumentality, regulatory body, court, central bank or other entity exercising executive, legislative, judicial, taxing, regulatory
or administrative powers or functions of or pertaining to government (including any supra-national bodies such as the European
Union or the European Central Bank).


 


“Guarantee” means, as to any Person, (a) any obligation,
contingent or otherwise, of such Person guaranteeing or having the economic effect of guaranteeing any Indebtedness or other obligation
payable or performable by another Person (the “primary obligor”) in any manner, whether directly or indirectly, and
including any obligation of such Person, direct or indirect, (i) to purchase or pay (or advance or supply funds for the purchase
or payment of) such Indebtedness or other obligation, (ii) to purchase or lease property, securities or services for the purpose
of assuring the obligee in respect of such Indebtedness or other obligation of the payment or performance of such Indebtedness
or other obligation, (iii) to maintain working capital, equity capital or any other financial statement condition or liquidity
or level of income or cash flow of the primary obligor so as to enable the primary obligor to pay such Indebtedness or other obligation,
or (iv) entered into for the purpose of assuring in any other manner the obligee in respect of such Indebtedness or other obligation
of the payment or performance thereof or to protect such obligee against loss in respect thereof (in whole or in part), or (b)
any Lien on any assets of such Person securing any Indebtedness or other obligation of any other Person, whether or not such Indebtedness
or other obligation is assumed by such Person (or any right, contingent or otherwise, of any holder of such Indebtedness to obtain
any such Lien). The amount of any Guarantee shall be deemed to be an amount equal to the stated or determinable amount of the related
primary obligation, or portion thereof, in respect of which such Guarantee is made or, if not stated or determinable, the maximum
reasonably anticipated liability in respect thereof. The term “Guarantee” as a verb has a corresponding meaning.


 


“Guarantor” means (i) each domestic Subsidiary of
the Borrower existing on the Closing Date, other than the Subsidiaries set forth on Schedule 1.01 hereto, (ii) each other
Subsidiary of the Borrower that shall be required to execute and deliver a Facility Guaranty pursuant to Section 6.11, and (iii)
with respect to any Swap Obligations of a Specified Loan Party, the Borrower.


 


“Hazardous Materials” means all explosive or radioactive
substances or wastes and all hazardous or toxic substances, wastes or other pollutants, including petroleum or petroleum distillates,
asbestos or asbestos-containing materials, polychlorinated biphenyls, radon gas, and all other substances or wastes of any nature
regulated pursuant to any Environmental Law.


 


“Heelys Acquisition” means the acquisition by the
Borrower of certain assets of Heelys, Inc. pursuant to the Heelys Acquisition Agreement.


 


“Heelys Acquisition Agreement” means the Agreement
and Plan of Merger, dated as of December 7, 2012, among Heelys, Inc., a Delaware corporation, Sequential Brands Group, Inc., a
Delaware corporation, and Wheels Merger Sub Inc., a Delaware corporation.


 


“Indebtedness” means, as to any Person at a particular
time, without duplication, all of the following, whether or not included as indebtedness or liabilities in accordance with GAAP:


 


(a)          all
obligations of such Person for borrowed money and all obligations of such Person evidenced by bonds, debentures, notes, loan agreements
or other similar instruments;


 




    	12



    	 



    

 


(b)          the
maximum amount of all direct or contingent obligations of such Person arising under letters of credit (including standby and commercial),
bankers’ acceptances, bank guaranties, surety bonds and similar instruments;


 


(c)          net
obligations of such Person under any Swap Contract;


 


(d)          all
obligations of such Person to pay the deferred purchase price of property or services (other than trade accounts payable in the
ordinary course of business and, in each case, not past due for more than 60 days after the date on which such trade account payable
was created);


 


(e)          indebtedness
(excluding prepaid interest thereon) secured by a Lien on property owned or being purchased by such Person (including indebtedness
arising under conditional sales or other title retention agreements), whether or not such indebtedness shall have been assumed
by such Person or is limited in recourse;


 


(f)          All
Attributable Indebtedness of such Person;


 


(g)          all
obligations of such Person to purchase, redeem, retire, defease or otherwise make any payment in respect of any Equity Interest
in such Person or any other Person (including, without limitation, Disqualified Stock), or any warrant, right or option to acquire
such Equity Interest, valued, in the case of a redeemable preferred interest, at the greater of its voluntary or involuntary liquidation
preference plus accrued and unpaid dividends; and


 


(h)          all
Guarantees of such Person in respect of any of the foregoing.


 


For all purposes hereof, the Indebtedness of any Person shall
include the Indebtedness of any partnership or joint venture (other than a joint venture that is itself a corporation or limited
liability company) in which such Person is a general partner or a joint venturer, unless such Indebtedness is expressly made non-recourse
to such Person. The amount of any net obligation under any Swap Contract on any date shall be deemed to be the Swap Termination
Value thereof as of such date.


 


“Indemnified Taxes” means (a) Taxes, other than
Excluded Taxes, imposed on or with respect to any payment made by or on account of any obligation of any Loan Party under any Loan
Document and (b) to the extent not otherwise described in (a), Other Taxes.


 


“Indemnitees” has the meaning specified in Section
10.04(b).


 


“Information” has the meaning specified in Section
10.07.


 


“Intellectual Property” has the meaning specified
in the Security Agreement.


 


“Interest Payment Date” means, (a) as to any LIBOR
Rate Loan, the last day of each Interest Period applicable to such Loan and the Maturity Date; provided, however, that if any Interest
Period for a LIBOR Rate Loan exceeds three months, the respective dates that fall every three months after the beginning of such
Interest Period shall also be Interest Payment Dates; and (b) as to any Base Rate Loan, the first Business Day of each calendar
quarter and the Maturity Date.


 


“Interest Period” means, as to each LIBOR Rate Loan,
the period commencing on the date such LIBOR Rate Loan is disbursed or continued as a LIBOR Rate Loan and ending on the date one,
two, three or six months thereafter, as selected by the Borrower in its Continuation Notice; provided that:


 


(i)          any
Interest Period that would otherwise end on a day that is not a Business Day shall be extended to the next succeeding Business
Day unless such Business Day falls in another calendar month, in which case such Interest Period shall end on the next preceding
Business Day;


 




    	13



    	 



    

 


(ii)         any
Interest Period that begins on the last Business Day of a calendar month (or on a day for which there is no numerically corresponding
day in the calendar month at the end of such Interest Period) shall end on the last Business Day of the calendar month at the end
of such Interest Period;


 


(iii)        no
Interest Period shall extend beyond the Maturity Date; and


 


(iv)        notwithstanding
the provisions of clause (iii), no Interest Period shall have a duration of less than one (1) month, and if any Interest Period
applicable to a LIBOR Rate Loan would be for a shorter period, such Interest Period shall not be available hereunder.


 


“Internal Control Event” means a material weakness
in, or fraud that involves management or other employees who have a significant role in, the Borrower’s and/or its Subsidiaries’
internal controls over financial reporting, in each case as described in the Securities Laws.


 


“Investment” means, as to any Person, any direct
or indirect acquisition or investment by such Person, whether by means of (a) the purchase or other acquisition of Equity Interests
of another Person, (b) a loan, advance or capital contribution to, Guarantee or assumption of debt of, or purchase or other acquisition
of any other debt or interest in, another Person, or (c) any Acquisition, or (d) any other investment of money or capital in order
to obtain a profitable return. For purposes of covenant compliance, the amount of any Investment shall be the amount actually invested,
without adjustment for subsequent increases or decreases in the value of such Investment.


 


“IRS” means the United States Internal Revenue Service.


 


“Laws” means, collectively, all international, foreign,
Federal, state and local statutes, treaties, rules, guidelines, regulations, ordinances, codes and administrative or judicial precedents
or authorities, including the interpretation or administration thereof by any Governmental Authority charged with the enforcement,
interpretation or administration thereof, and all applicable administrative orders, directed duties, requests, licenses, authorizations
and permits of, and agreements with, any Governmental Authority.


 


“Lease” means any agreement, whether written or
oral, no matter how styled or structured, pursuant to which a Loan Party is the lessee of any real property for any period of time.


 


“Lender” has the meaning specified in the introductory
paragraph hereto.


 


“Lending Office” means, as to any Lender, the office
or offices of such Lender as a Lender may from time to time notify the Borrower and the Agent.


 


“LIBOR Rate” means the rate per annum equal to the
British Bankers Association LIBOR Rate or the successor thereto if the British Bankers Association is no longer making a LIBOR
rate available (“LIBOR”), as published by Reuters (or other commercially available source providing quotations of LIBOR
as designated by the Agent from time to time) at approximately 11:00 a.m., London time, two Business Days prior to the commencement
of such Interest Period, for Dollar deposits (for delivery on the first day of such Interest Period) with a term equivalent to
such Interest Period. If such rate is not available at such time for any reason, then the “LIBOR Rate” for such Interest
Period shall be the rate per annum determined by the Agent to be the rate at which deposits in Dollars for delivery on the first
day of such Interest Period in same day funds in the approximate amount of the LIBOR Rate Loan being made, continued or converted
by Bank of America and with a term equivalent to such Interest Period would be offered by Bank of America’s London Branch
to major banks in the London interbank eurodollar market at their request at approximately 11:00 a.m. (London time) two Business
Days prior to the commencement of such Interest Period.


 




    	14



    	 



    





 


“LIBOR Rate Loan” means a Loan
that bears interest at a rate based on the Adjusted LIBOR Rate.


 


“License” has the meaning specified in the Security
Agreement.


 


“Lien” means any mortgage, deed of trust, pledge,
hypothecation, assignment, deposit arrangement, encumbrance, lien (statutory or other), charge, or preference, priority or other
security interest or preferential arrangement in the nature of a security interest of any kind or nature whatsoever (including
any conditional sale, Capital Lease Obligation, Synthetic Lease Obligation, or other title retention agreement, any easement, right
of way or other encumbrance on title to real property, and any financing lease having substantially the same economic effect as
any of the foregoing).


 


“Loan” has the meaning specified in Section 2.01.


 


“Loan Account” has the meaning assigned to such
term in Section 2.08.


 


“Loan Documents” means this Agreement, each Note,
the Fee Letter, the Blocked Account Agreements, the Security Documents, the Facility Guaranty, the Second Lien Intercreditor Agreement,
and any other instrument or agreement now or hereafter executed and delivered in connection herewith, or in connection with any
transaction arising out of any Cash Management Services and Bank Products.


 


“Loan Parties” means, collectively, the Borrower
and each Guarantor.


 


“Master Agreement” has the meaning set forth in
the definition of “Swap Contract.”


 


“Material Adverse Effect” means (a) a material adverse
change in, or a material adverse effect on, the operations, business, assets, properties or liabilities (actual or contingent),
condition (financial or otherwise) of the Borrower and its subsidiaries, taken as a whole; (b) a material impairment of the rights
and remedies of the Agent under this Agreement or any other Loan Document, or of the ability of the Borrower or any other Loan
Party to perform its obligations under any Loan Document to which it is a party; or (c) a material adverse effect upon the legality,
validity, binding effect or enforceability against the Borrower or any other Loan Party of any Loan Document to which it is a party.


 


“Material Contract” means, with respect to any Person,
each contract to which such Person is a party material to the business, condition (financial or otherwise), operations, performance,
properties or prospects of such Person, and shall include, without limitation, the Brand Matter Acquisition Agreement, the Heelys
Acquisition Agreement, and each Material License.


 


“Material Indebtedness” means Indebtedness (other
than the Obligations) of the Loan Parties in an aggregate principal amount exceeding $5,000,000. For purposes of determining the
amount of Material Indebtedness at any time, (a) the amount of the obligations in respect of any Swap Contract at such time shall
be calculated at the Swap Termination Value thereof, (b) undrawn committed or available amounts shall be included, and (c) all
amounts owing to all creditors under any combined or syndicated credit arrangement shall be included. Without limiting the foregoing,
all Indebtedness incurred under the Second Lien Facility shall be Material Indebtedness, regardless of the amount thereof.


 


“Material Intellectual Property” means those items
of Intellectual Property described on Part 1 of Schedule 5.17 hereto, and all items of Intellectual Property established, registered
or recorded in the United States acquired after the date hereof in respect of brands that are the subject of a Material License.


 


“Material License” means the Licenses described
on Part 2 of Schedule 5.17 hereto, and any other License, the revenues from which hereafter constitute five percent (5%) or more
of the annual revenues of the Borrower and its Subsidiaries.


 




    	15



    	 



    

 


“Maturity Date” means March 28, 2018.


 


“Maximum Rate” has the meaning provided therefor
in Section 10.09.


 


“Moody’s” means Moody’s Investors Service,
Inc. and any successor thereto.


 


“Multiemployer Plan” means any employee benefit
plan of the type described in Section 4001(a)(3) of ERISA, to which the Borrower or any ERISA Affiliate makes or is obligated to
make contributions, or during the preceding five plan years, has made or been obligated to make contributions.


 


“Multiple Employer Plan” means a Plan which has
two or more contributing sponsors (including the Borrower or any ERISA Affiliate) at least two of whom are not under common control,
as such a plan is described in Section 4064 of ERISA.


 


“Net Proceeds” means, with respect to any Disposition
by any Loan Party, the excess, if any, of (i) the sum of cash and cash equivalents received in connection with such transaction
(including any cash or cash equivalents received by way of deferred payment pursuant to, or by monetization of, a note receivable
or otherwise, but only as and when so received) over (ii) the sum of (A) the principal amount of any Indebtedness that is secured
by the applicable asset by a Lien permitted hereunder which is senior to the Agent’s Lien on such asset and that is required
to be repaid (or to establish an escrow for the future repayment thereof) in connection with such transaction (other than Indebtedness
under the Loan Documents), and (B) the reasonable and customary out-of-pocket expenses incurred by such Loan Party in connection
with such transaction (including, without limitation, appraisals, and brokerage, legal, title and recording or transfer tax expenses
and commissions) paid by any Loan Party to third parties (other than Affiliates)).


 


“Non-Consenting Lender” has the meaning provided
therefor in Section 10.01.


 


“Note” means a promissory note made by the Borrower
in favor of a Lender evidencing Loans made by such Lender, substantially in the form of Exhibit D.


 


“NPL” means the National Priorities
List under CERCLA.


 


“Obligations” means (a) all advances to, and debts
(including principal, interest, fees, costs, and expenses), liabilities, obligations, covenants, indemnities, and duties of, any
Loan Party arising under any Loan Document or otherwise with respect to any, whether direct or indirect (including those acquired
by assumption), absolute or contingent, due or to become due, now existing or hereafter arising and including interest, fees, costs,
expenses and indemnities that accrue after the commencement by or against any Loan Party of any proceeding under any Debtor Relief
Laws naming such Person as the debtor in such proceeding, regardless of whether such interest, fees costs, expenses and indemnities
are allowed claims in such proceeding, and (b) any Other Liabilities; provided that Obligations of a Loan Party shall exclude any
Excluded Swap Obligations with respect to such Loan Party.


 


“Organization Documents” means, (a) with respect
to any corporation, the certificate or articles of incorporation and the bylaws (or equivalent or comparable constitutive documents
with respect to any non-U.S. jurisdiction); (b) with respect to any limited liability company, the certificate or articles of formation
or organization and operating agreement; (c) with respect to any partnership, joint venture, trust or other form of business entity,
the partnership, joint venture or other applicable agreement of formation or organization and any agreement, instrument, filing
or notice with respect thereto filed in connection with its formation or organization with the applicable Governmental Authority
in the jurisdiction of its formation or organization and, if applicable, any certificate or articles of formation or organization
of such entity, and (d) in each case, all shareholder or other equity holder agreements, voting trusts and similar arrangements
to which such Person is a party or which is applicable to its Equity Interests and all other arrangements relating to the Control
or management of such Person.


 




    	16



    	 



    

 


“Other Connection Taxes” means, with respect to
any Recipient, Taxes imposed as a result of a present or former connection between such Recipient and the jurisdiction imposing
such Tax (other than connections arising from such Recipient having executed, delivered, become a party to, performed its obligations
under, received payments under, received or perfected a security interest under, engaged in any other transaction pursuant to or
enforced any Loan Document, or sold or assigned an interest in any Loan or Loan Document).


 


“Other Liabilities” means any obligation on account
of (a) any Cash Management Services furnished to any of the Loan Parties or any of their Subsidiaries and/or (b) any Bank Product
furnished to any of the Loan Parties and/or any of their Subsidiaries, including, without limitation, Swap Obligations.


 


“Other Taxes” means all present or future stamp,
court or documentary, intangible, recording, filing or similar Taxes that arise from any payment made under, from the execution,
delivery, performance, enforcement or registration of, from the receipt or perfection of a security interest under, or otherwise
with respect to, any Loan Document, except any such Taxes that are Other Connection Taxes imposed with respect to an assignment
(other than an assignment made pursuant to Section 3.06(b)).


 


“Participant” has the meaning specified in Section
10.06(d).


 


“Participation Register” has the meaning provided
therefor in Section 10.06(d).


 


“Patent” has the meaning specified in the Security
Agreement.


 


“Patent Security Agreement” means the Grant of Security
Interest in United States Patents dated as of the Closing Date among certain Loan Parties and the Agent.


 


“PBGC” means the Pension Benefit Guaranty Corporation.


 


“PCAOB” means the Public Company Accounting Oversight
Board.


 


“Pension Act” means the Pension Protection Act of
2006.


 


“Pension Funding Rules” means the rules of the Code
and ERISA regarding minimum required contributions (including any installment payment thereof) to Pension Plans and set forth in,
with respect to plan years ending prior to the effective date of the Pension Act, Section 412 of the Code and Section 302 of ERISA,
each as in effect prior to the Pension Act and, thereafter, Section 412, 430, 431, 432 and 436 of the Code and Sections 302, 303,
304 and 305 of ERISA.


 


“Pension Plan” means any employee pension benefit
plan (including a Multiple Employer Plan or a Multiemployer Plan) that is maintained or is contributed to by the Borrower and any
ERISA Affiliate and is either covered by Title IV of ERISA or is subject to the minimum funding standards under Section 412
of the Code.


 


“Permitted Acquisition” means (i) an Acquisition
consummated by an Excluded Subsidiary, or (ii) any other Acquisition consummated by a Loan Party in which all of the following
conditions are satisfied:


 


(a)          No
Default or Event of Default then exists or would arise from the consummation of such Acquisition;


 


(b)          Such
Acquisition shall have been approved by the Board of Directors of the Person (or similar governing body if such Person is not a
corporation) which is the subject of such Acquisition and such Person shall not have announced that it will oppose such Acquisition
or shall not have commenced any action which alleges that such Acquisition shall violate applicable Law;


 




    	17



    	 



    

 


(c)          
For any Acquisition for total consideration in excess of $10,000,000, the Borrower shall have furnished the Agent with ten (10)
Business Days’ prior written notice of such intended Acquisition and shall have furnished the Agent with a current draft
of the documentation in connection with such Acquisition (and final copies thereof as and when executed), a summary of any due
diligence undertaken by the Loan Parties in connection with such Acquisition, appropriate financial statements of the Person which
is the subject of such Acquisition, pro forma projected financial statements for the twelve (12) month period following such Acquisition
after giving effect to such Acquisition (including balance sheets, cash flows and income statements by quarter for the acquired
Person, individually, and on a Consolidated basis with all Loan Parties), and such other information as the Agent may reasonably
require, all of which shall be in form reasonably satisfactory to the Agent;


 


(d)          The
Loan Parties shall have complied with their obligations pursuant to Section 6.17, and in the event that the financing for the Permitted
Acquisition is to be provided by the Lenders, the legal structure of the Acquisition shall be reasonably acceptable to the Agent;


 


(e)          After
giving effect to the Acquisition, if the Acquisition is an Acquisition of Equity Interests, the Borrower shall acquire and own,
directly or indirectly, a majority of the Equity Interests in the Person being acquired and shall Control a majority of any voting
interests or shall otherwise Control the governance of the Person being acquired;


 


(f)          Any
assets acquired shall consist principally of Intellectual Property, and if the Acquisition involves a merger, consolidation or
acquisition of Equity Interests, the Person which is the subject of such Acquisition shall be engaged in, the business of owning
and licensing Intellectual Property; provided that unless otherwise agreed by the Agent, any Acquisition of assets which
includes inventory, equipment and other working capital assets in addition to Intellectual Property or which involves the acquisition
of Equity Interests of a Person which also owns inventory, equipment and other working capital assets in addition to Intellectual
Property shall provide for the wind-down and sale of such working capital assets within twelve (12) months following the closing
date of such acquisition; and


 


(g)          If
the Person which is the subject of such Acquisition will be maintained as a Subsidiary of a Loan Party (other than an Excluded
Subsidiary), or if the assets acquired in an Acquisition will be transferred to a Subsidiary (other than an Excluded Subsidiary)
which is not then a Loan Party, such Subsidiary shall have complied with the provisions of Section 6.11 and Section 6.15 hereof.


 


“Permitted Disposition” means any of the following:


 


(a)          licenses
and sublicenses of Intellectual Property of a Loan Party or any of its Subsidiaries in the ordinary course of business, other than,
unless the Agent consents thereto, outbound licenses of any Material Intellectual Property which would result in a Material Adverse
Effect on the value of the Collateral consisting of Intellectual Property;


 


(b)          Dispositions
of Intellectual Property so long as the Borrower makes any prepayments required pursuant to Section 2.03(b) in connection therewith;


 


(c)          Dispositions
of real property, inventory, equipment and other assets (other than Intellectual Property) in the ordinary course of business (including
such Dispositions in connection with the wind-down of the Heelys Acquisition) or property (other than Intellectual Property) that
is substantially worn, damaged, obsolete or, in the judgment of a Loan Party, no longer useful or necessary in its business or
that of any Subsidiary;


 




    	18



    	 



    

 


(d)          Disposition
of inventory, equipment and other working capital assets (other than Intellectual Property) and Real Estate acquired in a Permitted
Acquisition within twelve (12) months after the consummation of such Permitted Acquisition;


 


(e)          Dispositions
among the Loan Parties or by any Subsidiary to a Loan Party; and


 


(f)          Dispositions
by any Subsidiary which is not a Loan Party to another Subsidiary that is not a Loan Party.


 


“Permitted Encumbrances” means:


(a)          Liens
imposed by law for Taxes that are not yet due or are being contested in compliance with Section 6.04;


 


(b)          Carriers’,
warehousemen’s, mechanics’, materialmen’s, repairmen’s and other like Liens imposed by applicable Laws,
arising in the ordinary course of business and securing obligations that are not overdue by more than thirty (30) days or are being
contested in compliance with Section 6.04;


 


(c)          Pledges
and deposits made in the ordinary course of business in compliance with workers’ compensation, unemployment insurance and
other social security laws or regulations, other than any Lien imposed by ERISA;


 


(d)          Deposits
to secure the performance of bids, trade contracts and leases (other than Indebtedness), statutory obligations, surety and appeal
bonds, performance bonds and other obligations of a like nature incurred in the ordinary course of business;


 


(e)          Liens
in respect of judgments that would not constitute an Event of Default hereunder;


 


(f)          Easements,
covenants, conditions, restrictions, rights-of-way and similar encumbrances on real property imposed by law or arising in the ordinary
course of business that do not secure any monetary obligations and do not materially detract from the value of the affected property
or materially interfere with the ordinary conduct of business of a Loan Party and such other minor title defects or survey matters
that, taken as a whole, do not materially interfere with the current use of the real property;


 


(g)          Liens
existing on the Closing Date listed on Schedule 7.01 and Liens to secure any Permitted Refinancings of the Indebtedness with respect
thereto;


 


(h)          Liens
on fixed or capital assets or on Real Estate of any Loan Party which secure Indebtedness permitted under clauses (c) and/or (d)
of the definition of Permitted Indebtedness so long as (i) such Liens and the Indebtedness secured thereby are incurred prior to
or within ninety (90) days after such acquisition, (ii) the Indebtedness secured thereby does not exceed the cost of acquisition
of the applicable assets, and (iii) such Liens shall attach only to the assets or Real Estate acquired, improved or refinanced
with such Indebtedness and shall not extend to any other property or assets of the Loan Parties;


 


(i)          Liens
in favor of the Agent;


 


(j)          Landlords’
and lessors’ statutory Liens in respect of rent not in default;


 


(k)          Possessory
Liens in favor of brokers and dealers arising in connection with the acquisition or disposition of
Investments owned as of the Closing Date and other Permitted Investments, provided that such liens (a) attach only to such
Investments and (b) secure only obligations incurred in the ordinary course and arising in connection with the acquisition or
disposition of such Investments and not any obligation in connection with margin financing;


 




    	19



    	 



    

 


(l)          Liens
arising solely by virtue of any statutory or common law provisions relating to banker’s Liens, Liens in favor of securities
intermediaries, rights of setoff or similar rights and remedies as to deposit accounts or securities accounts or other funds maintained
with depository institutions or securities intermediaries;


 


(m)          Liens
arising from precautionary UCC filings regarding “true” operating leases or, to the extent permitted under the Loan
Documents, the consignment of goods to a Loan Party;


 


(n)          Liens
on property (other than Intellectual Property) in existence at the time such property is acquired pursuant to a Permitted Acquisition
or on such property of a Subsidiary of a Loan Party in existence at the time such Subsidiary is acquired pursuant to a Permitted
Acquisition; provided, that such Liens are not incurred in connection with or in anticipation of such Permitted Acquisition
and do not attach to any other assets of any Loan Party or any Subsidiary;


 


(o)          Liens
on Collateral securing Indebtedness in respect of the Second Lien Facility; provided such Liens are subject to the Second
Lien Intercreditor Agreement (or, in the case of any other such credit facility or any Permitted Refinancing thereof permitted
hereunder, another intercreditor agreement containing terms that are at least as favorable to the Credit Parties as those contained
in the Second Lien Intercreditor Agreement) and the Indebtedness secured by such Liens is permitted to be incurred pursuant to
clause (a)(i) of the definition of “Permitted Indebtedness”.


 


(q)          Liens
on earnest money deposits made in connection with any agreement in respect of a Permitted Acquisition or consisting of an agreement
to dispose of any property in a Permitted Disposition;


 


(r)          ground
leases in respect of real property on which facilities owned or leased by the Borrower or any of its Subsidiaries are located;


 


(s)          (i)
licenses, sublicenses, leases or subleases granted by any Loan Party to other Persons not materially interfering with the conduct
of the business of such Loan Party, (ii) any interest or title of a lessor, sublessor or licensor under any Lease, (iii) restriction
or encumbrance to which the interest or title of such lessor or sublessor may be subject and (iv) subordination of the interest
of the lessee or sub-lessee under such Lease to any restriction or encumbrance referred to in the preceding clause (iii);
and


 


(t)          Liens
in connection with any zoning, building, land use or similar law or right reserved to or vested in any Governmental Authority to
control or regulate the use of any or dimensions of real property or the structure thereon.


 


“Permitted Indebtedness” means each of the following:


 


(a)          (i)
Indebtedness in respect of the Second Lien Credit Agreement and any Permitted Refinancing thereof (collectively, the
“Second Lien Facility); provided that (A) the aggregate outstanding principal amount of any Indebtedness in
respect of the Second Lien Facility shall not exceed $20,000,000 in the aggregate at any time and (B) any Indebtedness in
respect of the Second Lien Facility shall not have an earlier maturity date than the Maturity Date or a decreased weighted
average life than the Second Lien Facility in effect on the date hereof and (ii) any other Indebtedness outstanding on the
date hereof and listed on Schedule 7.03 hereto and, in the case of the foregoing clause (ii), any Permitted Refinancing
thereof;


 




    	20



    	 



    

 


(b)          Indebtedness
of any Loan Party to any other Loan Party;


 


(c)          purchase
money Indebtedness of any Loan Party to finance the acquisition of any personal property consisting solely of fixed or capital
assets, including Capital Lease Obligations, and any Indebtedness assumed in connection with the acquisition of any such assets
(other than Intellectual Property) or secured by a Lien on any such assets prior to the acquisition thereof, and Permitted Refinancings
thereof, provided, however, that the aggregate principal amount of Indebtedness permitted by this clause (c) shall
not exceed $5,000,000 at any time outstanding and further provided that, if requested by the Agent, the Loan Parties shall
use commercially reasonable efforts to cause the holders of any such Indebtedness incurred to finance the acquisition of assets
containing information relating to Intellectual Property, licensing arrangements or financial information to enter into an intercreditor
agreement with the Agent on terms reasonably satisfactory to the Agent;


 


(d)          Indebtedness
incurred for the construction or acquisition or improvement of, or to finance or to refinance, any Real Estate owned by any Loan
Party (including therein any Indebtedness incurred in connection with sale-leaseback transactions permitted hereunder and any Synthetic
Lease Obligations), provided that, if requested by the Agent, the Loan Parties shall use commercially reasonable efforts
to cause the holders of such Indebtedness and the lessors under any sale-leaseback transaction to enter into an access agreement
with respect to any Real Estate in which the Loan Parties maintain information relating to Intellectual Property, licensing arrangements
or financial information, on terms reasonably satisfactory to the Agent;


 


(e)          contingent
liabilities under surety bonds or similar instruments incurred in the ordinary course of business;


 


(f)          
obligations (contingent or otherwise) of any Loan Party or any Subsidiary thereof existing or arising under any Swap Contract,
provided that (i) such obligations are (or were) entered into by such Person in the ordinary course of business for the
purpose of directly mitigating risks associated with fluctuations in interest rates or foreign exchange rates, and not for purposes
of speculation or taking a “market view” and (ii) such Swap Contract does not contain any provision exonerating the
non-defaulting party from its obligation to make payments on outstanding transactions to the defaulting party;


 


(g)          Indebtedness
of any Person that becomes a Subsidiary (other than an Excluded Subsidiary) of a Loan Party in a Permitted Acquisition, which Indebtedness
is existing at the time such Person becomes a Subsidiary of a Loan Party (other than Indebtedness incurred solely in contemplation
of such Person’s becoming a Subsidiary of a Loan Party);


 


(h)          the
Obligations;


 


(i)          unsecured
Indebtedness of the Borrower pursuant to the Securities Purchase Agreement;


 


(j)          other
unsecured Indebtedness in an aggregate principal amount not to exceed $100,000,000 at any time outstanding;


 




    	21



    	 



    

 


(k)          other
unsecured Indebtedness not otherwise specifically described herein so long as, after giving pro forma effect to the incurrence
of such Indebtedness and the consummation of any Permitted Acquisition or the application of the proceeds thereof, as applicable,
in connection therewith, and (i) on a projected basis for the twelve (12) months immediately following such Indebtedness and related
Permitted Acquisition or application of proceeds, as applicable, the ratio of Consolidated EBITDA (calculated for such purpose
to include the projected Consolidated EBITDA of the entity or assets to be acquired in any applicable Permitted Acquisition) to
Debt Service Charges shall be no less than the ratio of Consolidated EBITDA to Debt Service Charges as calculated prior to the
incurrence of such Indebtedness and the consummation of such Permitted Acquisition or application of proceeds, as applicable, or,
(ii) in the event that such ratio is less than the ratio calculated prior to the incurrence or application of proceeds of such
Indebtedness, then the ratio of (A) Consolidated Total Indebtedness, less cash on the balance sheet of the Borrower, to (B) Consolidated
EBITDA, in each case after giving pro forma effect to the incurrence of such Indebtedness and the consummation of any applicable
Permitted Acquisition or application of proceeds, shall not be greater than 4.0:1.0;


 


(l)          Indebtedness
consisting of unsecured guaranties by any Loan Party of the Indebtedness and lease and other contractual obligations, in each case
of any other Loan Party, to the extent permitted under this Agreement;


 


(m)          Indebtedness
arising from the honoring by any bank or other financial institution of a check, draft or similar instrument drawn against insufficient
funds in the ordinary course of business, so long as such Indebtedness is extinguished within five Business Days of its incurrence;


 


(n)          Indebtedness
owed to any Person providing property, casualty, liability or other insurance to any Loan Party, so long as the amount of such
Indebtedness is not in excess of the amount of the unpaid cost of, and shall be incurred only to defer the cost of, such insurance
for the period in which such Indebtedness is incurred and such Indebtedness is outstanding only for a period not exceeding twelve
months;


 


(o)          Indebtedness
of any Loan Party which may be deemed to exist in connection with agreements providing indemnification, purchase price adjustments
and other similar obligations in connection with the acquisition or disposition of assets in accordance with this Agreement, so
long as any such obligations are those of the Person making the respective acquisition or sale, and are not guaranteed by any other
Person except as permitted by sub-clause (l) herein;


 


(p)          Indebtedness
representing deferred compensation or similar obligation to employees of Loan Parties incurred in the ordinary course of business;
and


 


(q)          Indebtedness
of any Loan Party in respect of letters of credit, bank guarantees, supporting obligations bankers’ acceptances, performance
bonds, surety bonds, statutory bonds, appeal bonds, warehouse receipts or similar instruments issued or created in the ordinary
course of business, including with respect of workers compensation claims, health, disability or other employee benefits or property,
casualty or liability insurance or self-insurance or other Indebtedness with respect to reimbursement-type obligations regarding
workers compensation claims; provided that any reimbursement obligations in respect thereof are reimbursed within 30 days following
the due date thereof.


 


“Permitted Investments” means each of the following:


 


(a)          readily
marketable obligations issued or directly and fully guaranteed or insured by the United States of America or any agency or instrumentality
thereof having maturities of not more than 360 days from the date of acquisition thereof; provided that the full faith and
credit of the United States of America is pledged in support thereof;


 




    	22



    	 



    

 


(b)          commercial
paper issued by any Person organized under the laws of any state of the United States of America and rated at least “Prime-1”
(or the then equivalent grade) by Moody’s or at least “A-1” (or the then equivalent grade) by S&P,
in each case with maturities of not more than 180 days from the date of acquisition thereof;


 


(c)          time
deposits with, or insured certificates of deposit or bankers’ acceptances of, any commercial bank that (i) (A) is a Lender
or (B) is organized under the laws of the United States of America, any state thereof or the District of Columbia or is the principal
banking subsidiary of a bank holding company organized under the laws of the United States of America, any state thereof or the
District of Columbia, and is a member of the Federal Reserve System, (ii) issues (or the parent of which issues) commercial paper
rated as described in clause (b) of this definition and (iii) has combined capital and surplus of at least $1,000,000,000,
in each case with maturities of not more than 180 days from the date of acquisition thereof;


 


(d)          Fully
collateralized repurchase agreements with a term of not more than thirty (30) days for securities described in clause (a) above
(without regard to the limitation on maturity contained in such clause) and entered into with a financial institution satisfying
the criteria described in clause (c) above or with any primary dealer and having a market value at the time that such repurchase
agreement is entered into of not less than 100% of the repurchase obligation of such counterparty entity with whom such repurchase
agreement has been entered into;


 


(e)          Investments,
classified in accordance with GAAP as current assets of the Loan Parties, in any money market fund, mutual fund, or other investment
companies that are registered under the Investment Company Act of 1940, as amended, which are administered by financial institutions
that have the highest rating obtainable from either Moody’s or S&P, and which invest solely in one or more of the types
of securities described in clauses (a) through (d) above;


 


(f)          Investments
existing on the Closing Date set forth on Schedule 7.02, but not any increase in the amount thereof or any other modification of
the terms thereof;


 


(g)          (i)
Investments by any Loan Party and its Subsidiaries in their respective Subsidiaries outstanding on the Closing Date, (ii) additional
Investments by any Loan Party and its Subsidiaries in Loan Parties (but not, for the avoidance of doubt, in Excluded Subsidiaries
other than (x) Investments made with contributions of the Equity Interests of the Borrower and cash proceeds of equity contributions
to the Borrower made by the Borrower’s shareholders) and (y) non-monetary Investments consisting of the acquisition or formation
and ownership of the Equity Interests thereof to the extent permitted pursuant to clause (m) hereof), and (iii) additional Investments
by Subsidiaries of the Loan Parties that are not Loan Parties in other Subsidiaries that are not Loan Parties;


 


(h)          Investments
consisting of extensions of credit in the nature of accounts receivable or notes receivable arising from the grant of trade credit
in the ordinary course of business, and Investments received in satisfaction or partial satisfaction thereof from financially troubled
account debtors to the extent reasonably necessary in order to prevent or limit loss;


 


(i)          Guarantees
constituting Permitted Indebtedness;


 




    	23



    	 



    

 


(j)          so
long as no Default or Event of Default has occurred and is continuing or would result from such Investment, Investments by any
Loan Party in Swap Contracts permitted hereunder;


 


(k)          Investments
received in connection with the bankruptcy or reorganization of, or settlement of delinquent accounts and disputes with, customers
and suppliers, in each case in the ordinary course of business;


 


(l)          advances
to officers, directors and employees of the Loan Parties in the ordinary course of business in an amount not to exceed $500,000
to any individual at any time or in an aggregate amount not to exceed $2,000,000 at any time outstanding;


 


(m)          Investments
constituting Permitted Acquisitions;


 


(n)          Loan
Parties may own the equity interests of their respective Subsidiaries created or acquired in accordance with this Agreement (so
long as all amounts invested in such Subsidiaries are independently justified under another clause of this definition);


 


(o)          deposits
made in the ordinary course of business to secure the performance of leases or other obligations pursuant to Section 7.03;


 


(p)          purchases
of assets in the ordinary course of business to the extent not constituting a Permitted Acquisition;


 


(q)          Investments
consisting of (x) transactions permitted under Section 7.03 and 7.05, (y) Restricted Payments permitted by Section 7.06 and (z)
repayments or other acquisitions of Indebtedness of any Loan Party not prohibited by Section 7.07;


 


(r)          promissory
notes and other non-cash consideration received in connection with any asset sale permitted by Section 7.05; and


 


(s)          advances
in the form of a prepayment of expense to vendors, suppliers and trade creditors consistent with their past practices, so long
as such expenses were incurred in the ordinary course of business;


 


provided, however, that notwithstanding the foregoing,
after the occurrence and during the continuance of an Event of Default, no such Investments specified in clauses (a) through (e)
shall be permitted unless the Investment is a temporary Investment pending expiration of an Interest Period for a LIBOR Rate Loan,
the proceeds of which Investment will be applied to the Obligations after the expiration of such Interest Period, and such Investment
us pledged to the Agent as additional collateral for the Obligations pursuant to such agreements as may be reasonably required
by the Agent.


 




    	24



    	 



    

 


“Permitted Refinancing” means,
with respect to any Person, any Indebtedness issued in exchange for, or the net proceeds of which are used to extend, refinance,
renew, replace, defease or refund (collectively, to “Refinance”), the Indebtedness being Refinanced (or previous
refinancings thereof constituting a Permitted Refinancing); provided, that (a) the principal amount (or accreted value,
if applicable) of such Permitted Refinancing does not exceed the principal amount (or accreted value, if applicable) of the Indebtedness
so Refinanced (plus unpaid accrued interest and premiums thereon and underwriting discounts, defeasance costs, fees, commissions
and expenses), (b) the weighted average life to maturity of such Permitted Refinancing is greater than or equal to the weighted
average life to maturity of the Indebtedness being Refinanced, (c) such Permitted Refinancing shall not require any scheduled principal
payments due prior to the Maturity Date in excess of or prior to the scheduled principal payments for the Indebtedness being Refinanced
due prior to such Maturity Date, (d) if the Indebtedness being Refinanced is subordinated in right of payment to the Obligations
under this Agreement, such Permitted Refinancing shall be subordinated in right of payment to such Obligations on terms at least
as favorable to the Credit Parties as those contained in the documentation governing the Indebtedness being Refinanced, (e) no
Permitted Refinancing shall have direct or indirect obligors who were not also obligors of the Indebtedness being Refinanced, or
greater guarantees or security, than the Indebtedness being Refinanced, (f) such Permitted Refinancing shall be otherwise on terms
not materially less favorable to the Credit Parties than those contained in the documentation governing the Indebtedness being
Refinanced, taken as a whole, including, without limitation, with respect to financial and other covenants and events of
default, (g) the interest rate applicable to any such Permitted Refinancing shall not exceed the then applicable market interest
rate, (h) at the time thereof, no Default or Event of Default shall have occurred and be continuing,
and (i) in the case of a Refinance of any Indebtedness permitted pursuant to clause (a) of the definition of Permitted Indebtedness,
the agent and lenders party thereto agree in writing to be bound by the Second Lien Intercreditor Agreement


 


“Person” means any natural person, corporation,
limited liability company, trust, joint venture, association, company, partnership, limited partnership, Governmental Authority
or other entity.


 


“Plan” means any employee benefit plan within the
meaning of Section 3(3) of ERISA (including a Pension Plan), maintained for employees of the Borrower or any ERISA Affiliate
or any such Plan to which the Borrower or any ERISA Affiliate is required to contribute on behalf of any of its employees.


 


“Qualified ECP Guarantor” means, in respect of any
Swap Obligation, at any time, each Loan Party with total assets exceeding $10,000,000 or that qualifies at such time as an “eligible
contract participant” under the Commodity Exchange Act and can cause another Person to qualify as an “eligible contract
participant” at such time under Section 1a(18)(A)(v)(II) of the Commodity Exchange Act.


 


“Real Estate” means all Leases and all land, together
with the buildings, structures, parking areas, and other improvements thereon, now or hereafter owned by any Loan Party, including
all easements, rights-of-way, and similar rights relating thereto.


 


“Realizable Orderly Liquidation
Value” means the sum of (x) one hundred percent (100%) of the orderly liquidation of the Intellectual Property of the Loan
Parties other than William Rast; (y) eighty two percent (82%) of the orderly liquidation value of the Intellectual Property of
William Rast; and (z) (i) prior to September 28, 2014 sixty percent (60%) of the orderly liquidation value of the Intellectual
Property of DVS and (ii) on and after September 28, 2014 zero percent (0%) of the orderly liquidation value of the Intellectual
Property of DVS, in each case based upon the most recent appraisal of such Intellectual Property undertaken by the Agent pursuant
to Section 6.10(b) with respect thereto.


 


“Recipient” means the Agent or any Lender.


 


“Register” has the meaning specified in Section
10.06(c).


 


“Registered Public Accounting Firm” has the meaning
specified by the Securities Laws and shall be independent of the Borrower and its Subsidiaries as prescribed by the Securities
Laws.


 


“Related Parties” means, with respect to any Person,
such Person’s Affiliates and the partners, directors, officers, employees, agents, trustees, administrators, managers, advisors
and representatives of such Person and of such Person’s Affiliates.


 


“Reportable Event” means any of the events set forth
in Section 4043(c) of ERISA, other than events for which the 30 day notice period has been waived.


 


“Reports” has the meaning provided in Section 9.11.


 


“Required Lenders” means, as of any date of determination,
Lenders holding in the aggregate more than 50% of the aggregate outstanding principal amount of all Loans.


 




    	25



    	 



    

 


“Responsible Officer” means
the chief executive officer, president, chief financial officer, treasurer or assistant treasurer of a Loan Party or any
of the other individuals designated in writing to the Agent by an existing Responsible Officer of a Loan Party as an authorized
signatory of any certificate or other document to be delivered hereunder. Any document delivered hereunder that is signed
by a Responsible Officer of a Loan Party shall be conclusively presumed to have been authorized by all necessary corporate, partnership
and/or other action on the part of such Loan Party and such Responsible Officer shall be conclusively presumed to have acted on
behalf of such Loan Party.


 


“Restated Financial Statements” means (x) an amendment
to the Borrower’s annual report on Form 10-K for the Fiscal Year ended December 31, 2011 to modify the treatment of certain
items contained therein and (y) an amendment to the Borrower’s quarterly report on Form 10-Q for each of the Fiscal Quarters
ended March 31, 2012, June 30, 2012 and September 30, 2012 to modify the treatment of certain items contained therein, in each
case as previously described to the Agent.


 


“Restricted Payment” means any dividend or other
distribution (whether in cash, securities or other property) with respect to any capital stock or other Equity Interest of any
Person or any of its Subsidiaries, or any payment (whether in cash, securities or other property), including any sinking fund or
similar deposit, on account of the purchase, redemption, retirement, defeasance, acquisition, cancellation or termination of any
such capital stock or other Equity Interest, or on account of any return of capital to such Person’s stockholders, partners
or members (or the equivalent of any thereof), or any option, warrant or other right to acquire any such dividend or other distribution
or payment. Without limiting the foregoing, “Restricted Payments” with respect to any Person shall also include all
payments made by such Person with any proceeds of a dissolution or liquidation of such Person.


 


“Restricted Payment Conditions” means, at the time
of determination with respect to any specified Restricted Payment, that (a) no Default or Event of Default then exists or would
arise as a result of making of such Restricted Payment, (b) after giving effect to such Restricted Payment,
the total outstanding amount of the Obligations is not greater than twenty-five (25%) percent of the appraised orderly liquidation
value of registered Trademarks of the Loan Parties, as determined pursuant to the most recent appraisal conducted by or on behalf
of the Agent with respect to such registered Trademarks, and (c) the Consolidated Fixed Charge Coverage Ratio, as calculated on
a pro-forma basis for the twelve Fiscal Months preceding such Restricted Payment, is equal to or greater than 1.0:1.0.


 


“S&P” means Standard &
Poor’s Ratings Services, a division of The McGraw-Hill Companies, Inc. and any successor thereto.


 


“Sarbanes-Oxley” means the Sarbanes-Oxley Act of
2002.


 


“SEC” means the Securities and Exchange Commission,
or any Governmental Authority succeeding to any of its principal functions.


 


“Second Lien Agent” means Pathlight
Capital, LLC, in its capacity as administrative agent and collateral agent for the lenders under the Second Lien Credit Agreement,
together with any successor agent.


 


“Second Lien Credit Agreement”
means that certain Second Lien Term Loan Agreement dated as of March 28, 2013 among the Borrower, the guarantors party thereto,
the lenders party thereto, and the Second Lien Agent, as the same may be amended, restated, supplemented or otherwise modified,
and any refinancings, refundings, renewals or extensions thereof permitted hereunder.


 




    	26



    	 



    

 


“Second Lien Facility” has
the meaning set forth in clause (a)(i) of the definition of “Permitted Indebtedness”.


 


“Second Lien Intercreditor Agreement”
means that certain Intercreditor Agreement, dated as March 28, 2013, among the Agent and the Second Lien Agent.


 


“Second Lien Loan Documents” means any and all documents
executed in connection with the Second Lien Facility.


 


“Securities Laws” means the Securities Act of 1933,
the Securities Exchange Act of 1934, Sarbanes-Oxley, and the applicable accounting and auditing principles, rules, standards and
practices promulgated, approved or incorporated by the SEC or the PCAOB.


 


“Securities Purchase Agreement” means that certain
Securities Purchase Agreement dated February 3, 2012 between the Borrower and TCP WR Acquisition, LLC, pursuant to which the Borrower
has issued convertible notes in the original principal amount of $14,500,000;


 


“Security Agreement” means the Security Agreement
dated as of the Closing Date among the Loan Parties and the Agent.


 


“Security Documents” means the Security Agreement,
the Copyright Security Agreement, the Patent Security Agreement, the Trademark Security Agreement, the Blocked Account Agreements
and each other security agreement or other instrument or document executed and delivered to the Agent pursuant to this Agreement
or any other Loan Document granting a Lien to secure any of the Obligations.


 


“Shareholders’ Equity” means, as of any date
of determination, consolidated shareholders’ equity of the Borrower and its Subsidiaries as of that date determined in accordance
with GAAP.


 


“Solvent” and “Solvency” means, with
respect to any Person on a particular date, that on such date (a) at fair valuation, all of the properties and assets of such Person
are greater than the sum of the debts, including contingent liabilities, of such Person, (b) the present fair saleable value of
the properties and assets of such Person is not less than the amount that would be required to pay the probable liability of such
Person on its debts as they become absolute and matured, (c) such Person is able to realize upon its properties and assets and
pay its debts and other liabilities, contingent obligations and other commitments as they mature in the normal course of business,
and (d) such Person is not engaged in a business or a transaction, and is not about to engage in a business or transaction, for
which such Person’s properties and assets would constitute unreasonably small capital after giving due consideration to the
prevailing practices in the industry in which such Person is engaged. The amount of all guarantees at any time shall be computed
as the amount that, in light of all the facts and circumstances existing at the time, can reasonably be expected to become an actual
or matured liability.


 


“Specified Loan Party” means any Loan Party that
is not then an “eligible contract participant” under the Commodity Exchange Act (as determined prior to giving effect
to Section 10.25).


 


“Statutory Reserve Rate” means a fraction (expressed
as a decimal), the numerator of which is the number one and the denominator of which is the number one minus the aggregate of the
maximum reserve percentages (including any marginal, special, emergency or supplemental reserves) expressed as a decimal established
by the FRB to which the Agent is subject with respect to the Adjusted LIBOR Rate, for eurocurrency funding (currently referred
to as “Eurocurrency Liabilities” in Regulation D of the Board). Such reserve percentages shall include those imposed
pursuant to such Regulation D. LIBOR Rate Loans shall be deemed to constitute eurocurrency funding and to be subject to such
reserve requirements without benefit of or credit for proration, exemptions or offsets that may be available from time to time
to any Lender under such Regulation D or any comparable regulation. The Statutory Reserve Rate shall be adjusted automatically
on and as of the effective date of any change in any reserve percentage.


 




    	27



    	 



    

 


“Subsidiary” of a Person means a corporation, partnership,
joint venture, limited liability company or other business entity of which a majority of the Equity Interests having ordinary voting
power for the election of directors or other governing body are at the time beneficially owned, or the management of which is otherwise
controlled, directly, or indirectly through one or more intermediaries, or both, by such Person. Unless otherwise specified, all
references herein to a “Subsidiary” or to “Subsidiaries” shall refer to a Subsidiary or Subsidiaries of
a Loan Party, but shall exclude Excluded Subsidiaries.


 


“Swap Contract” means (a) any and all rate swap
transactions, basis swaps, credit derivative transactions, forward rate transactions, commodity swaps, commodity options, forward
commodity contracts, equity or equity index swaps or options, bond or bond price or bond index swaps or options or forward bond
or forward bond price or forward bond index transactions, interest rate options, forward foreign exchange transactions, cap transactions,
floor transactions, collar transactions, currency swap transactions, cross-currency rate swap transactions, currency options, spot
contracts, or any other similar transactions or any combination of any of the foregoing (including any options to enter into any
of the foregoing), whether or not any such transaction is governed by or subject to any master agreement, and (b) any and all transactions
of any kind, and the related confirmations, which are subject to the terms and conditions of, or governed by, any form of master
agreement published by the International Swaps and Derivatives Association, Inc., any International Foreign Exchange Master Agreement,
or any other master agreement (any such master agreement, together with any related schedules, a “Master Agreement”),
including any such obligations or liabilities under any Master Agreement.


 


“Swap Obligations” means with respect to any Loan
Party, 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.


 


“Swap Termination Value” means, in respect of any
one or more Swap Contracts, after taking into account the effect of any legally enforceable netting agreement relating to such
Swap Contracts, (a) for any date on or after the date such Swap Contracts have been closed out and termination value(s) determined
in accordance therewith, such termination value(s), and (b) for any date prior to the date referenced in clause (a), the amount(s)
determined as the mark-to-market value(s) for such Swap Contracts, as determined based upon one or more mid-market or other readily
available quotations provided by any recognized dealer in such Swap Contracts (which may include a Lender or any Affiliate of a
Lender).


 


“Synthetic Lease Obligation” means the monetary
obligation of a Person under (a) a so-called synthetic, off-balance sheet or tax retention lease, or (b) an agreement for the use
or possession of property (including sale and leaseback transactions), in each case, creating obligations that do not appear on
the balance sheet of such Person but which, upon the application of any Debtor Relief Laws to such Person, would be characterized
as the indebtedness of such Person (without regard to accounting treatment).


 


“Taxes” means all present or future taxes, levies,
imposts, duties, deductions, withholdings (including backup withholding), assessments, fees or other charges imposed by any Governmental
Authority, including any interest, additions to tax or penalties applicable thereto.


 




    	28



    	 



    

 


“Termination Date” means the earliest to occur of
(i) the Maturity Date, (ii) the date on which the maturity of the Obligations is accelerated (or deemed accelerated) in accordance
with Article VIII or (iii) the date on which the Borrower prepays the Loans in full and terminates this Agreement in accordance
with Section 2.03(a) hereof.


 


“Trademark” has the meaning specified in the Security
Agreement.


 


“Trademark Security Agreement” means the Grant of
Security Interest in United States Trademarks dated as of the Closing Date among certain Loan Parties and the Agent.


 


“Trading with the Enemy Act” has the meaning set
forth in Section 10.18.


 


“Type” means, with respect to the portion of the
any Loan outstanding, its character as a Base Rate Loan or a LIBOR Rate Loan.


 


“UCC” or “Uniform Commercial Code” means
the Uniform Commercial Code as in effect from time to time in the State of New York; provided, however, that if a term is defined
in Article 9 of the Uniform Commercial Code differently than in another Article thereof, the term shall have the meaning set forth
in Article 9; provided further that, if by reason of mandatory provisions of law, perfection, or the effect of perfection or non-perfection,
of a security interest in any Collateral or the availability of any remedy hereunder is governed by the Uniform Commercial Code
as in effect in a jurisdiction other than the State of New York, “Uniform Commercial Code” means the Uniform Commercial
Code as in effect in such other jurisdiction for purposes of the provisions hereof relating to such perfection or effect of perfection
or non-perfection or availability of such remedy, as the case may be.


 


“United States” and “U.S.” mean the
United States of America.


 


“U.S. Person” means any Person that is a “United
States Person” as defined in Section 7701(a)(30) of the Code.


 


“U.S. Tax Compliance Certificate” has the meaning
specified in Section 3.01(e)(ii)(B)(III).


 


“William Rast Entities” means William Rast Licensing
and William Rast Sourcing and their respective Subsidiaries, as applicable.


 


“William Rast Licensing” means William Rast Licensing
LLC, a California limited liability company.


 


“William Rast Sourcing” means William Rast Sourcing,
LLC, a California limited liability company.


 


1.02         Other
Interpretive Provisions


 


With reference to this Agreement and each
other Loan Document, unless otherwise specified herein or in such other Loan Document:


 


(a)          The
definitions of terms herein shall apply equally to the singular and plural forms of the terms defined. Whenever the context may
require, any pronoun shall include the corresponding masculine, feminine and neuter forms. The words “include,”
“includes” and “including” shall be deemed to be followed by the phrase “without limitation.”
The word “will” shall be construed to have the same meaning and effect as the word “shall.”
Unless the context requires otherwise, (i) any definition of or reference to any agreement, instrument or other document (including
any Organization Document) shall be construed as referring to such agreement, instrument or other document as from time to time
amended, supplemented or otherwise modified (subject to any restrictions on such amendments, supplements or modifications set forth
herein or in any other Loan Document), (ii) any reference herein to any Person shall be construed to include such Person’s
successors and assigns, (iii) the words “herein,” “hereof” and “hereunder,”
and words of similar import when used in any Loan Document, shall be construed to refer to such Loan Document in its entirety and
not to any particular provision thereof, (iv) all references in a Loan Document to Articles, Sections, Exhibits and Schedules shall
be construed to refer to Articles and Sections of, and Exhibits and Schedules to, the Loan Document in which such references appear,
(v) any reference to any law shall include all rules, regulations and orders thereunder and all statutory and regulatory provisions
consolidating, amending, replacing or interpreting such law and any reference to any law or regulation shall, unless otherwise
specified, refer to such law or regulation as amended, modified or supplemented from time to time, and (vi) the words “asset”
and “property” shall be construed to have the same meaning and effect and to refer to any and all tangible and
intangible assets and properties, including cash, securities, accounts and contract rights.


 




    	29



    	 



    

 


(b)          In
the computation of periods of time from a specified date to a later specified date, the word “from” means “from
and including;” the words “to” and “until” each mean “to but excluding;”
and the word “through” means “to and including.”


 


(c)          Section
headings herein and in the other Loan Documents are included for convenience of reference only and shall not affect the interpretation
of this Agreement or any other Loan Document.


 


(d)          Any
reference herein or in any other Loan Document to the satisfaction, repayment, or payment in full of the Obligations shall mean
the repayment in Dollars in full in cash or immediately available funds (or, in the case of contingent reimbursement obligations
with respect to Bank Products (other than Swap Contracts), providing cash collateralization) of all of the Obligations (including
the payment of any termination amount then applicable (or which would or could become applicable as a result of the repayment of
the other Obligations) under Swap Contracts) other than (i) unasserted contingent indemnification Obligations, (ii) any Obligations
relating to Bank Products (including Swap Contracts) that, at such time, are allowed by the applicable Bank Product provider to
remain outstanding without being required to be repaid or cash collateralized, and (iii) any Obligations relating to Cash Management
Services that, at such time, are allowed by the applicable provider of such Cash Management Services to remain outstanding without
being required to be repaid.


 


1.03         Accounting
Terms


 


(a)          Generally.
All accounting terms not specifically or completely defined herein shall be construed in conformity with, and all financial data
(including financial ratios and other financial calculations) required to be submitted pursuant to this Agreement shall be prepared
in conformity with, GAAP applied on a consistent basis, as in effect from time to time, applied in a manner consistent with that
used in preparing the Audited Financial Statements, except as otherwise specifically prescribed herein.


 


(b)          Changes
in GAAP. If at any time any change in GAAP would affect the computation of any financial ratio or requirement set forth in
any Loan Document, and either the Borrower or the Required Lenders shall so request, the Agent, the Lenders and the Borrower shall
negotiate in good faith to amend such ratio or requirement to preserve the original intent thereof in light of such change in GAAP
(subject to the approval of the Required Lenders); provided that, until so amended, (i) such ratio or requirement
shall continue to be computed in accordance with GAAP prior to such change therein and (ii) the Borrower shall provide to
the Agent and the Lenders financial statements and other documents required under this Agreement or as reasonably requested hereunder
setting forth a reconciliation between calculations of such ratio or requirement made before and after giving effect to such change
in GAAP.


 




    	30



    	 



    

 


1.04         Rounding.
Any financial ratios required to be maintained by the Loan Parties pursuant to this Agreement shall be calculated by dividing the
appropriate component by the other component, carrying the result to one place more than the number of places by which such ratio
is expressed herein and rounding the result up or down to the nearest number (with a rounding-up if there is no nearest number).


 


1.05         Times
of Day. Unless otherwise specified, all references herein to times of day shall be references
to Eastern time (daylight or standard, as applicable).


 


ARTICLE
II

THE COMMITMENTS AND LOANS


 


2.01         Loans
Subject to the terms and conditions set forth herein, each Lender severally agrees to make loans (each such loan, a “Loan”)
to the Borrower on the Closing Date in an aggregate principal amount equal to such Lender’s Commitment in immediately available
funds in accordance with instructions provided by the Borrower. The aggregate amount of the Loans shall not exceed the Aggregate
Commitments. The Loans made on the Closing Date shall be LIBOR Rate Loans with an initial Interest Period of one month. 


 


2.02         Continuations
of Loans.


 


(a)          The
continuation of LIBOR Rate Loans shall be made upon the Borrower’s irrevocable notice to the Agent. Each Continuation Notice
(whether telephonic or written) shall specify the duration of the Interest Period with respect to any LIBOR Rate Loans so continued.
If the request fails to specify an Interest Period, it will be deemed to have specified an Interest Period of one month.


 


(b)          Except
as otherwise provided herein, a LIBOR Rate Loan may be continued only on the last day of an Interest Period for such LIBOR Rate
Loan.


 


(c)          The
Agent shall promptly notify the Borrower and the Lenders of the interest rate applicable to any Interest Period for LIBOR Rate
Loans upon determination of such interest rate. At any time that Base Rate Loans are outstanding, the Agent shall notify the Borrower
of any change in Bank of America’s prime rate used in determining the Base Rate promptly following the public announcement
of such change.


 


2.03         Prepayments.


 


(a)          The
Borrower may, upon irrevocable notice from the Borrower to the Agent, at any time or from time to time voluntarily prepay Loans
in whole or in part without premium or penalty except as provided in Section 2.06(a) hereof; provided that (i) such notice
must be received by the Agent not later than 11:00 a.m. (A) three Business Days prior to any date of prepayment of LIBOR Rate Loans
and (B) on the date of prepayment of Base Rate Loans; (ii) any prepayment of LIBOR Rate Loans shall be in a principal amount of
$5,000,000 or a whole multiple of $1,000,000 in excess thereof; or, if less, the entire principal amount thereof then outstanding
or such lesser amount as is acceptable to the Agent. Each such notice shall specify the date and amount of such prepayment and
the Type(s) of Loans to be prepaid and, if LIBOR Rate Loans, the Interest Period(s) of such Loans. The Agent will promptly notify
each Lender of its receipt of each such notice, and of the amount of such Lender’s Applicable
Percentage of such prepayment. If such notice is given by the Borrower, the Borrower shall make such prepayment and the payment
amount specified in such notice shall be due and payable on the date specified therein, except that, to the extent delivered in
connection with a full or partial refinancing of the Obligations, such notice shall not be irrevocable until such refinancing is
closed and funded. Any prepayment of a LIBOR Rate Loan shall be accompanied by all accrued interest on the amount prepaid, together
with any additional amounts required pursuant to Section 3.05. Each such prepayment shall be applied to the Loans of the
Lenders in accordance with their respective Applicable Percentages.


 




    	31



    	 



    

 


(b)          In
connection with any Disposition of any Intellectual Property or related assets of the Borrower or its Subsidiaries, the Borrower
shall prepay the Loans in an amount equal to fifty (50%) of the orderly liquidation value of such assets as determined by the most
recent appraisal of such Intellectual Property or related assets undertaken by the Agent with respect thereto; provided
that if an Event of Default has occurred and is continuing, the Borrower shall prepay the Loans in an amount equal to 100% of the
orderly liquidation value of such assets as determined by the most recent appraisal of such Intellectual Property or related assets
undertaken by the Agent with respect thereto.


 


(c)          In
connection with any Disposition of any assets of the Borrower or its Subsidiaries (other than Intellectual Property and assets
constituting Inventory or accounts receivable disposed of in connection with the wind-down of acquired assets (including in connection
with the Heelys Acquisition)), the Borrower shall prepay the Loans in an amount equal to 100% of the Net Proceeds from the Disposition
of such Collateral.


 


(d)          Not
later than ninety (90) days after the end of each Fiscal Year of the Borrower and its Subsidiaries, the Borrower shall prepay the
Loans in an amount equal to thirty (30%) of Consolidated Excess Cash Flow for the immediately preceding Fiscal Year of the Borrower
and its Subsidiaries.


 


(e)          The
Borrower shall prepay the Loans to the extent required pursuant to the provisions of Section 6.12 hereof.


 


(f)          Prepayments
made pursuant to this Section 2.03 shall be applied to the remaining scheduled installments of principal due in respect of the
Loans in the inverse order of maturity.


 


2.04         Repayment
of Obligations.


 


(a)          In
addition to the mandatory prepayment provisions set forth in Section 2.03 above, the Borrower shall repay the Loans in an amount
equal to $1,500,000 on March 31, June 30, September 30 and December 31 of each year, commencing June 30, 2013.


 


(b)          Except
as provided in Section 1.02(d), the Borrower shall repay to the Agent, for the account of the Lenders, on the Termination
Date the aggregate principal amount of Loans and other Obligations outstanding on such date. Once repaid or prepaid, Loans may
not be reborrowed.


 


2.05         Interest.


 


(a)          Subject
to the provisions of Section 2.05(b) below, (i) each LIBOR Rate Loan shall bear interest on the outstanding principal amount
thereof for each Interest Period at a rate per annum equal to the Adjusted LIBOR Rate for such Interest Period plus the
Applicable Margin for LIBOR Rate Loans; and (ii) each Base Rate Loan shall bear interest on the outstanding principal amount thereof
from the applicable borrowing date at a rate per annum equal to the Base Rate plus the Applicable Margin for Base Rate Loans.


 


(b)          If
any Event of Default exists, all outstanding Obligations shall thereafter bear interest at a fluctuating interest rate per annum
at all times equal to the Default Rate and thereafter such Obligations shall bear interest at the Default Rate to the fullest extent
permitted by Law. Accrued and unpaid interest on past due amounts (including interest on past due interest) shall be due and payable
upon demand.


 




    	32



    	 



    

 


(c)          Except
as provided in Section 2.05(b), interest on each Loan shall be due and payable in arrears on each Interest Payment Date
applicable thereto and at such other times as may be specified herein. Interest hereunder shall be due and payable in accordance
with the terms hereof before and after judgment, and before and after the commencement of any proceeding under any Debtor Relief
Law.


 


2.06         Fees.


 


(a)          Early
Termination Fee. In the event that the Termination Date occurs prior to the second anniversary of the Closing Date pursuant
to clause (ii) of the definition of “Termination Date” due to an acceleration of the Obligations on account of any
Event of Default described in any of Sections 8.01(a), (f) or (g), or pursuant to clause (iii)
of the definition of “Termination Date” in connection with a refinancing of the Loans for which Bank of America is
not the administrative agent, then the Borrower shall pay to the Agent, for the ratable benefit of the Lenders, a fee (the “Early
Termination Fee”) equal to one (1%) percent of the Loans then outstanding. All parties to this Agreement agree and acknowledge
that the Lenders will have suffered damages on account of the early termination of this Agreement and that, in view of the difficulty
in ascertaining the amount of such damages, the Early Termination Fee constitutes reasonable compensation and liquidated damages
to compensate the Lenders on account thereof.


 


(b)          Agent’s
Fee. The Borrower shall pay to the Agent for its own account an annual administrative agent’s fee in the amount of $50,000
per annum (the “Agent’s Fee”), which Agent’s Fee shall be paid on the Closing Date and on each anniversary
of the Closing Date. The Agent’s Fee shall be fully earned when paid and shall not be refundable for any reason whatsoever.


 


(c)          Other
Fees. The Borrower shall pay to the Agent for its own account fees in the amounts and at the times specified in the Fee Letter.
Such fees shall be fully earned when paid and shall not be refundable for any reason whatsoever.


 


2.07         Computation
of Interest and Fees All computations of interest for Base Rate Loans when the Base Rate
is determined by Bank of America’s “prime rate” shall be made on the basis of a year of 365 or 366 days, as the
case may be, and actual days elapsed. All other computations of fees and interest shall be made on the basis of a 360-day year
and actual days elapsed. Interest shall accrue on each Loan for the day on which the Loan is made, and shall not accrue on a Loan,
or any portion thereof, for the day on which the Loan or such portion is paid. Each determination by the Agent of an interest rate
or fee hereunder shall be conclusive and binding for all purposes, absent manifest error.


 


2.08         Evidence
of Debt. 


 


The Loans made by each Lender shall be evidenced
by one or more accounts or records maintained by the Agent (the “Loan Account”) in the ordinary course of business.
In addition, each Lender may record in such Lender’s internal records, an appropriate notation evidencing the date and amount
of each Loan from such Lender, each payment and prepayment of principal of any such Loan, and each payment of interest, fees and
other amounts due in connection with the Obligations due to such Lender. The accounts or records maintained by the Agent and each
Lender shall be conclusive absent manifest error of the amount of the Loans made by the Lenders to the Borrower and the interest
and payments thereon. Any failure to so record or any error in doing so shall not, however, limit or otherwise affect the obligation
of the Borrower hereunder to pay any amount owing with respect to the Obligations. In the event of any conflict between the accounts
and records maintained by any Lender and the accounts and records of the Agent in respect of such matters, the accounts and records
of the Agent shall control in the absence of manifest error. Upon the request of any Lender made through the Agent, the Borrower
shall execute and deliver to such Lender (through the Agent) a Note, which shall evidence such Lender’s Loans in addition
to such accounts or records. Each Lender may attach schedules to its Note and endorse thereon the date, Type (if applicable), amount
and maturity of its Loans and payments with respect thereto. Upon receipt of an affidavit of a Lender as to the loss, theft, destruction
or mutilation of such Lender’s Note and upon cancellation of such Note, the Borrower will issue, in lieu thereof, a replacement
Note in favor of such Lender, in the same principal amount thereof and otherwise of like tenor.


 




    	33



    	 



    

 


2.09         Payments
Generally; Agent’s Clawback.


 


(a)          General.
All payments to be made by the Borrower shall be made without condition or deduction for any counterclaim, defense, recoupment
or setoff. Except as otherwise expressly provided herein, all payments by the Borrower hereunder shall be made to the Agent, for
the account of the respective Lenders to which such payment is owed, at the Agent’s Office
in Dollars and in immediately available funds not later than 2:00 p.m. on the date specified herein. The Agent will promptly distribute
to each Lender its Applicable Percentage (or other applicable share as provided herein) of such payment in like funds as received
by wire transfer to such Lender’s Lending Office. All payments received by the Agent after 2:00 p.m. shall, at the option
of the Agent, be deemed received on the next succeeding Business Day and any applicable interest or fee shall continue to accrue.
If any payment to be made by the Borrower shall come due on a day other than a Business Day, payment shall be made on the next
following Business Day (other than with respect to payment of a LIBOR Rate Loan), and such extension of time shall be reflected
in computing interest or fees, as the case may be.


 


(b)          Payments
by Borrower; Presumptions by Agent. Unless the Agent shall have received notice from the Borrower prior to the time at which
any payment is due to the Agent for the account of any of the Lenders hereunder that the Borrower will not make such payment, the
Agent may assume that the Borrower has made such payment on such date in accordance herewith and may, in reliance upon such assumption,
distribute to the Lenders the amount due. In such event, if the Borrower has not in fact made such payment, then each of the Lenders
severally agrees to repay to the Agent forthwith on demand the amount so distributed to such Lender, in immediately available funds
with interest thereon, for each day from and including the date such amount is distributed to it to but excluding the date of payment
to the Agent, at the greater of the Federal Funds Rate and a rate determined by the Agent in accordance with banking industry rules
on interbank compensation.


 


(c)          Funding
Source. Nothing herein shall be deemed to obligate any Lender to obtain the funds for any Loan in any particular place or manner
or to constitute a representation by any Lender that it has obtained or will obtain the funds for any Loan in any particular place
or manner.


 


2.10         Sharing
of Payments by Lenders If any Lender shall, by exercising any right of setoff or counterclaim
or otherwise, obtain payment in respect of any principal of, interest on, or other amounts with respect to, any of the Loans resulting
in such Lender’s receiving payment of a proportion of the aggregate amount of such Loans greater than its pro rata
share thereof as provided herein (including as in contravention of the priorities of payment set forth in Section 8.03),
then the Lender receiving such greater proportion shall (a) notify the Agent of such fact, and (b) purchase (for cash at face value)
participations in the Loans of the other Lenders, or make such other adjustments as shall be equitable, so that the benefit of
all such payments shall be shared by the Lenders ratably and in the priorities set forth in Section 8.03, provided
that:


 




    	34



    	 



    

 


 







 


(i)          if
any such participations or subparticipations are purchased and all or any portion of the payment giving rise thereto is recovered,
such participations or subparticipations shall be rescinded and the purchase price restored to the extent of such recovery, without
interest; and


 


(ii)         the
provisions of this Section shall not be construed to apply to (x) any payment made by the Loan Parties pursuant to and in accordance
with the express terms of this Agreement or (y) any payment obtained by a Lender as consideration for the assignment of or sale
of a participation in any of its Loans to any assignee or participant.


 


Each Loan Party consents to the foregoing and agrees, to the
extent it may effectively do so under Law, that any Lender acquiring a participation pursuant to the foregoing arrangements may
exercise against such Loan Party rights of setoff and counterclaim with respect to such participation as fully as if such Lender
were a direct creditor of such Loan Party in the amount of such participation.


 


ARTICLE
III

TAXES, YIELD PROTECTION AND ILLEGALITY


 


		3.01	Taxes.



 


(a)          Payments
Free of Taxes; Obligation to Withhold; Payments on Account of Taxes.


 


(i)          Any
and all payments by or on account of any obligation of any Loan Party under any Loan Document shall be made without deduction or
withholding for any Taxes, except as required by applicable Laws. If any applicable Laws (as determined in the good faith discretion
of the Agent) require the deduction or withholding of any Tax from any such payment by the Agent or a Loan Party, then the Agent
or such Loan Party shall be entitled to make such deduction or withholding, upon the basis of the information and documentation
to be delivered pursuant to subsection (e) below.


 


(ii)         If
any Loan Party or the Agent shall be required by any applicable Laws other than the Code to withhold or deduct any Taxes
from any payment, then (A) such Loan Party or the Agent, as required by such Laws, shall withhold or make such deductions as are
determined by it to be required based upon the information and documentation it has received pursuant to subsection (e)
below, (B) such Loan Party or the Agent, to the extent required by such Laws, shall timely pay the full amount withheld or deducted
to the relevant Governmental Authority in accordance with such Laws, and (C) to the extent that the withholding or deduction is
made on account of Indemnified Taxes, the sum payable by the applicable Loan Party shall be increased as necessary so that after
any required withholding or the making of all required deductions (including deductions applicable to additional sums payable under
this Section 3.01) the applicable Recipient receives an amount equal to the sum it would have received had no such withholding
or deduction been made.


 


(b)          Payment
of Other Taxes by the Borrower.  Without limiting the provisions of subsection (a) above, the Borrower shall timely pay to the
relevant Governmental Authority in accordance with applicable Law, or at the option of the Agent timely reimburse it for the payment
of, any Other Taxes.


 




    	35



    	 



    

 


(c)          Tax
Indemnifications.


 


(i)          The
Loan Parties shall, and each Loan Party does hereby, jointly and severally indemnify each Recipient, and shall make payment in
respect thereof within 10 days after demand therefor, for the full amount of any Indemnified Taxes (including Indemnified Taxes
imposed or asserted on or attributable to amounts payable under this Section 3.01) payable or paid by such Recipient or
required to be withheld or deducted from a payment to such Recipient, and any penalties, interest and reasonable expenses arising
therefrom or with respect thereto, whether or not such Indemnified Taxes were correctly or legally imposed or asserted by the relevant
Governmental Authority. A certificate as to the amount of such payment or liability delivered to the Borrower by a Lender (with
a copy to the Agent), or by the Agent on its own behalf or on behalf of a Lender, shall be conclusive absent manifest error.


 


(ii)         Each
Lender shall, and does hereby, severally indemnify, and shall make payment in respect thereof within 10 days after demand therefor,
(x) the Agent against any Indemnified Taxes attributable to such Lender (but only to the extent that any Loan Party has not already
indemnified the Agent for such Indemnified Taxes and without limiting the obligation of the Loan Parties to do so), (y) the Agent
and the Loan Parties, as applicable, against any Taxes attributable to such Lender’s failure to comply with the provisions
of Section 10.06(d) relating to the maintenance of a Participant Register and (z) the Agent and the Loan Parties, as applicable,
against any Excluded Taxes attributable to such Lender, in each case, that are payable or paid by the Agent or a Loan Party in
connection with any Loan Document, and any reasonable expenses arising therefrom or with respect thereto, whether or not such Taxes
were correctly or legally imposed or asserted by the relevant Governmental Authority. A certificate as to the amount of such payment
or liability delivered to any Lender by the Agent shall be conclusive absent manifest error. Each Lender hereby authorizes the
Agent to set off and apply any and all amounts at any time owing to such Lender under this Agreement or any other Loan Document
against any amount due to the Agent under this clause (ii).


 


(d)          Evidence
of Payments.  Upon request by the Borrower or the Agent, as the case may be, after any payment of Taxes by the Borrower or by
the Agent to a Governmental Authority as provided in this Section 3.01, the Borrower shall deliver to the Agent or the Agent
shall deliver to the Borrower, as the case may be, the original or a certified copy of a receipt issued by such Governmental Authority
evidencing such payment, a copy of any return required by Laws to report such payment or other evidence of such payment reasonably
satisfactory to the Borrower or the Agent, as the case may be.


 


(e)          Status
of Lenders; Tax Documentation.


 


(i)          Any
Lender that is entitled to an exemption from or reduction of withholding Tax with respect to payments made under any Loan Document
shall deliver to the Borrower and the Agent, at the time or times reasonably requested by the Borrower or the Agent, such properly
completed and executed documentation reasonably requested by the Borrower or the Agent as will permit such payments to be made
without withholding or at a reduced rate of withholding. In addition, any Lender, if reasonably requested by the Borrower or the
Agent, shall deliver such other documentation prescribed by applicable Law or reasonably requested by the Borrower or the Agent
as will enable the Borrower or the Agent to determine whether or not such Lender is subject to backup withholding or information
reporting requirements. Notwithstanding anything to the contrary in the preceding two sentences, the completion, execution and
submission of such documentation (other than such documentation set forth in Section 3.01(e)(ii)(A), (ii)(B) and
(ii)(D) below) shall not be required if in the Lender’s reasonable judgment such completion, execution or submission
would subject such Lender to any material unreimbursed cost or expense or would materially prejudice the legal or commercial position
of such Lender.


 




    	36



    	 



    

 


(ii)         Without
limiting the generality of the foregoing, in the event that the Borrower is a U.S. Person,


 


(A)         any
Lender that is a U.S. Person shall deliver to the Borrower and the Agent on or prior to the date on which such Lender becomes a
Lender under this Agreement (and from time to time thereafter upon the reasonable request of the Borrower or the Agent), executed
originals of IRS Form W-9 certifying that such Lender is exempt from U.S. federal backup withholding tax;


 


(B)         any
Foreign Lender shall, to the extent it is legally entitled to do so, deliver to the Borrower and the Agent (in such number of copies
as shall be requested by the recipient) on or prior to the date on which such Foreign Lender becomes a Lender under this Agreement
(and from time to time thereafter upon the reasonable request of the Borrower or the Agent), whichever of the following is applicable:


 


(I)         in
the case of a Foreign Lender claiming the benefits of an income tax treaty to which the United States is a party (x) with respect
to payments of interest under any Loan Document, executed originals of IRS Form W-8BEN establishing an exemption from, or reduction
of, U.S. federal withholding Tax pursuant to the “interest” article of such tax treaty and (y) with respect to any
other applicable payments under any Loan Document, IRS Form W-8BEN establishing an exemption from, or reduction of, U.S. federal
withholding Tax pursuant to the “business profits” or “other income” article of such tax treaty;


 


(II)        executed
originals of IRS Form W-8ECI;


 


(III)       in the
case of a Foreign Lender claiming the benefits of the exemption for portfolio interest under Section 881(c) of the Code, (x) a
certificate substantially in the form of Exhibit E-1 to the effect that such Foreign Lender is not a “bank”
within the meaning of Section 881(c)(3)(A) of the Code, a “10 percent shareholder” of the Borrower within the meaning
of Section 881(c)(3)(B) of the Code, or a “controlled foreign corporation” described in Section 881(c)(3)(C) of the
Code (a “U.S. Tax Compliance Certificate”) and (y) executed originals of IRS Form W-8BEN; or


 


(IV)        to
the extent a Foreign Lender is not the beneficial owner, executed originals of IRS Form W-8IMY, accompanied by IRS Form W-8ECI,
IRS Form W-8BEN, a U.S. Tax Compliance Certificate substantially in the form of Exhibit E-2 or Exhibit E-3, IRS Form
W-9, and/or other certification documents from each beneficial owner, as applicable; provided that if the Foreign Lender
is a partnership and one or more direct or indirect partners of such Foreign Lender are claiming the portfolio interest exemption,
such Foreign Lender may provide a U.S. Tax Compliance Certificate substantially in the form of Exhibit E-4 on behalf of
each such direct and indirect partner;


 




    	37



    	 



    

 


(C)         any
Foreign Lender shall, to the extent it is legally entitled to do so, deliver to the Borrower and the Agent (in such number of copies
as shall be requested by the recipient) on or prior to the date on which such Foreign Lender becomes a Lender under this Agreement
(and from time to time thereafter upon the reasonable request of the Borrower or the Agent), executed originals of any other form
prescribed by applicable Law as a basis for claiming exemption from or a reduction in U.S. federal withholding Tax, duly completed,
together with such supplementary documentation as may be prescribed by applicable Law to permit the Borrower or the Agent to determine
the withholding or deduction required to be made; and


 


(D)         if
a payment made to a Lender under any Loan Document would be subject to U.S. federal withholding Tax imposed by FATCA if such Lender
were to fail to comply with the applicable reporting requirements of FATCA (including those contained in Section 1471(b) or 1472(b)
of the Code, as applicable), such Lender shall deliver to the Borrower and the Agent at the time or times prescribed by law and
at such time or times reasonably requested by the Borrower or the Agent such documentation prescribed by applicable Law (including
as prescribed by Section 1471(b)(3)(C)(i) of the Code) and such additional documentation reasonably requested by the Borrower or
the Agent as may be necessary for the Borrower and the Agent to comply with their obligations under FATCA and to determine that
such Lender has complied with such Lender’s obligations under FATCA or to determine the amount to deduct and withhold from
such payment. Solely for purposes of this clause (D), “FATCA” shall include any amendments made to FATCA after the
date of this Agreement.


 


(iii)        Each
Lender agrees that if any form or certification it previously delivered pursuant to this Section 3.01 expires or becomes
obsolete or inaccurate in any respect, it shall update such form or certification or promptly notify the Borrower and the Agent
in writing of its legal inability to do so.


 


(f)          Treatment
of Certain Refunds.  Unless required by applicable Laws, at no time shall the Agent have any obligation to file for or otherwise
pursue on behalf of a Lender, or have any obligation to pay to any Lender, any refund of Taxes withheld or deducted from funds
paid for the account of such Lender. If any Recipient determines, in its sole discretion exercised in good faith, that it has received
a refund of any Taxes as to which it has been indemnified by any Loan Party or with respect to which any Loan Party has paid additional
amounts pursuant to this Section 3.01, it shall pay to the Loan Party an amount equal to such refund (but only to the extent
of indemnity payments made, or additional amounts paid, by a Loan Party under this Section 3.01 with respect to the Taxes
giving rise to such refund), net of all out-of-pocket expenses (including Taxes) incurred by such Recipient, and without interest
(other than any interest paid by the relevant Governmental Authority with respect to such refund), provided that the Loan Party,
upon the request of the Recipient, agrees to repay the amount paid over to the Loan Party (plus any penalties, interest or other
charges imposed by the relevant Governmental Authority) to the Recipient in the event the Recipient is required to repay such refund
to such Governmental Authority. Notwithstanding anything to the contrary in this subsection, in no event will the applicable Recipient
be required to pay any amount to the Loan Party pursuant to this subsection the payment of which would place the Recipient in a
less favorable net after-Tax position than such Recipient would have been in if the Tax subject to indemnification and giving rise
to such refund had not been deducted, withheld or otherwise imposed and the indemnification payments or additional amounts with
respect to such Tax had never been paid. This subsection shall not be construed to require any Recipient to make available its
tax returns (or any other information relating to its taxes that it deems confidential) to any Loan Party or any other Person.


 




    	38



    	 



    

 


(g)          Survival.  Each party’s obligations under this Section 3.01 shall survive the resignation or replacement of the Agent or any
assignment of rights by, or the replacement of, a Lender, and the repayment, satisfaction or discharge of all of the Obligations.


 


3.02         Illegality
If any Lender determines that any Law has made it unlawful, or that any Governmental Authority has asserted that it is unlawful,
for any Lender or its applicable Lending Office to make, maintain or fund LIBOR Rate Loans, or to determine or charge interest
rates based upon the LIBOR Rate, or any Governmental Authority has imposed material restrictions on the authority of such Lender
to purchase or sell, or to take deposits of, Dollars in the London interbank market, then, on notice thereof by such Lender to
the Borrower through the Agent, (i) any obligation of such Lender to make or continue LIBOR Rate Loans or to convert Base Rate
Loans to LIBOR Rate Loans shall be suspended, and (ii) if such notice asserts the illegality of such Lender making or maintaining
Base Rate Loans the interest rate on which is determined by reference to the LIBOR Rate component of the Base Rate, the interest
rate on which Base Rate Loans of such Lender shall, if necessary to avoid such illegality, be determined by the Agent without reference
to the LIBOR Rate component of the Base Rate, in each case, until such Lender notifies the Agent and the Borrower that the circumstances
giving rise to such determination no longer exist. Upon receipt of such notice, (x) the Borrower shall, upon demand from such Lender
(with a copy to the Agent) together with documentation reasonably supporting such request, prepay or, if applicable, convert all
LIBOR Rate Loans of such Lender to Base Rate Loans (the interest rate on which Base Rate Loans of such Lender shall, if necessary
to avoid such illegality, be determined by the Agent without reference to the LIBOR Rate component of the Base Rate), either on
the last day of the Interest Period therefor, if such Lender may lawfully continue to maintain such LIBOR Rate Loans to such day,
or immediately, if such Lender may not lawfully continue to maintain such LIBOR Rate Loans and (y) if such notice asserts the illegality
of such Lender determining or charging interest rates based upon the LIBOR Rate, the Agent shall during the period of such suspension
compute the Base Rate applicable to such Lender without reference to the LIBOR Rate component thereof until the Agent is advised
in writing by such Lender that it is no longer illegal for such Lender to determine or charge interest rates based upon the LIBOR
Rate. Upon any such prepayment or conversion, the Borrower shall also pay accrued interest on the amount so prepaid or converted.


 




    	39



    	 



    

 


3.03        Inability
to Determine Rates  If the Required Lenders determine that for any reason in connection with any request for a LIBOR Rate Loan
or a conversion to or continuation thereof that (a) Dollar deposits are not being offered to banks in the London interbank
market for the applicable amount and Interest Period of such LIBOR Rate Loan, (b) adequate and reasonable means do not exist
for determining the LIBOR Rate for any requested Interest Period with respect to a proposed LIBOR Rate Loan , or (c) the
LIBOR Rate for any requested Interest Period with respect to a proposed LIBOR Rate Loan does not adequately and fairly reflect
the cost to such Lenders of funding such Loan, the Agent will promptly so notify the Borrower and each Lender. Thereafter, (x)
the obligation of the Lenders to make or maintain LIBOR Rate Loans shall be suspended, and (y) in the event of a determination
described in the preceding sentence with respect to the LIBOR Rate component of the Base Rate, the utilization of the LIBOR Rate
component in determining the Base Rate shall be suspended, in each case until the 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 conversion to or
continuation of LIBOR Rate Loans or, failing that, will be deemed to have converted such request into a request Base Rate Loans
in the amount specified therein.


 


3.04        Increased
Costs; Reserves on LIBOR Rate Loans.


 


(a)          Increased
Costs Generally.  If any Change in Law shall:


 


(i)          impose,
modify or deem applicable any reserve, special deposit, compulsory loan, insurance charge or similar requirement against assets
of, deposits with or for the account of, or credit extended or participated in by, any Lender (except any reserve requirement reflected
in the LIBOR Rate);


 


(ii)         subject
any Recipient to any Taxes (other than (A) Indemnified Taxes, (B) Taxes described in clauses (b) through (d) of the definition
of Excluded Taxes and (C) Connection Income Taxes) on its loans, loan principal, letters of credit, commitments, or other obligations,
or its deposits, reserves, other liabilities or capital attributable thereto; or


 


(iii)        impose
on any Lender or the London interbank market any other condition, cost or expense (other than Taxes) affecting this Agreement or
LIBOR Rate Loans made by such Lender;


 


and the result of any of the foregoing shall be to increase
the cost to such Lender of making, converting to, continuing or maintaining any LIBOR Rate Loan (or of maintaining its obligation
to make any such Loan), or to reduce the amount of any sum received or receivable by such Lender hereunder (whether of principal,
interest or any other amount) then, upon request of such Lender, together with documentation reasonably supporting such request,
the Loan Parties will pay to such Lender such additional amount or amounts as will compensate such Lender for such additional costs
incurred or reduction suffered.


 


(b)          Capital
Requirements.  If any Lender determines that any Change in Law affecting such Lender or any Lending Office of such Lender or
such Lender’s holding company, if any, regarding capital requirements has or would have the effect of reducing the rate of
return on such Lender’s capital or on the capital or liquidity of such Lender’s holding company, if any, as a consequence
of this Agreement, or the Loans made by such Lender, to a level below that which such Lender or such Lender’s holding company
could have achieved but for such Change in Law (taking into consideration such Lender’s policies and the policies of such
Lender’s holding company with respect to capital adequacy), then upon request from time to time from such Lender together
with documentation reasonably supporting such request, the Loan Parties will pay to such Lender such additional amount or amounts
as will compensate such Lender or such Lender’s holding company for any such reduction suffered.


 


(c)          Certificates
for Reimbursement.  A certificate of a Lender setting forth the amount or amounts necessary to compensate such Lender or its
holding company, as the case may be, as specified in subsection (a) or (b) of this Section and delivered to the Borrower shall
be conclusive absent manifest error. The Loan Parties shall pay such Lender the amount shown as due on any such certificate within
10 days after receipt thereof.


 




    	40



    	 



    

 


(d)          Delay
in Requests.  Failure or delay on the part of any Lender to demand compensation pursuant to the foregoing provisions of this
Section shall not constitute a waiver of such Lender’s right to demand such compensation, provided that the Loan Parties
shall not be required to compensate a Lender pursuant to the foregoing provisions of this Section for any increased costs incurred
or reductions suffered more than nine months prior to the date that such Lender notifies the Borrower of the Change in Law giving
rise to such increased costs or reductions and of such Lender’s intention to claim compensation therefor (except that, if
the Change in Law giving rise to such increased costs or reductions is retroactive, then the nine-month period referred to above
shall be extended to include the period of retroactive effect thereof).


 


(e)          Reserves
on LIBOR Rate Loans.  The Borrower shall pay to each Lender, as long as such Lender shall be required to maintain reserves with
respect to liabilities or assets consisting of or including Eurocurrency funds or deposits (currently known as "Eurocurrency
liabilities"), additional interest on the unpaid principal amount of each LIBOR Rate Loan equal to the actual costs of such
reserves allocated to such Loan by such Lender (as determined by such Lender in good faith, which determination shall be conclusive),
which shall be due and payable on each date on which interest is payable on such Loan, provided the Borrower shall have
received at least 10 days’ prior notice (with a copy to the Agent) of such additional interest from such Lender. If a Lender
fails to give notice 10 days prior to the relevant Interest Payment Date, such additional interest shall be due and payable 10
days from receipt of such notice.


 


(f)          Notwithstanding
anything to the contrary contained in this Section 3.04, no Lender shall demand compensation for any increased costs pursuant
to this Section 3.04 if it shall not be the general policy or practice of such Lender to demand such compensation in similar
circumstances and unless such demand is generally consistent with such Lender’s treatment of comparable borrowers of such
Lender in the United States with similarly affected loans.


 


3.05        Compensation
for Losses.  Upon demand of any Lender (with a copy to the Agent) from time to time, which demand shall set forth in reasonable
detail the basis for such demand for compensation, the Borrower shall promptly compensate such Lender for and hold such Lender
harmless from any loss, cost or expense incurred by it as a result of:


 


(a)          any
continuation, conversion, payment or prepayment of any Loan other than a Base Rate Loan on a day other than the last day of the
Interest Period for such Loan (whether voluntary, mandatory, automatic, by reason of acceleration, or otherwise);


 


(b)          any
failure by the Borrower (for a reason other than the failure of such Lender to make a Loan) to prepay, borrow, continue or convert
any Loan other than a Base Rate Loan on the date or in the amount notified by the Borrower; or


 


(c)          any
assignment of a LIBOR Rate Loan on a day other than the last day of the Interest Period therefor as a result of a request by the
Borrower pursuant to Section 10.13;


 


excluding any loss of anticipated profits from the failure to
collect the then Applicable Margin, but including any loss or expense arising from the liquidation or reemployment of funds obtained
by it to maintain such Loan or from fees payable to terminate the deposits from which such funds were obtained. The Borrower shall
also pay any customary administrative fees charged by such Lender in connection with the foregoing.


 




    	41



    	 



    

 


For purposes of calculating amounts payable by the Borrower
to the Lenders under this Section 3.05, each Lender shall be deemed to have funded each LIBOR Rate Loan made by it at the LIBOR
Rate for such Loan by a matching deposit or other borrowing in the London interbank market for a comparable amount and for a comparable
period, whether or not such LIBOR Rate Loan was in fact so funded.


 


3.06        Mitigation
Obligations; Replacement of Lenders.


 


(a)          Designation
of a Different Lending Office.  If any Lender requests compensation under Section 3.04, or the Borrower is required to
pay any additional amount to any Lender or any Governmental Authority for the account of any Lender pursuant to Section 3.01,
or if any Lender gives a notice pursuant to Section 3.02, then such Lender shall use reasonable efforts to designate a different
Lending Office for funding or booking its Loans hereunder or to assign its rights and obligations hereunder to another of its offices,
branches or affiliates, if, in the judgment of such Lender, such designation or assignment (i) would eliminate or reduce amounts
payable pursuant to Section 3.01 or 3.04, as the case may be, in the future, or eliminate the need for the notice pursuant
to Section 3.02, as applicable, and (ii) in each case, would not subject such Lender to any unreimbursed cost or expense
and would not otherwise be disadvantageous to such Lender. The Borrower hereby agrees to pay all reasonable costs and expenses
incurred by any Lender in connection with any such designation or assignment.


 


(b)          Replacement
of Lenders.  If any Lender requests compensation under Section 3.04, or if the Borrower is required to pay any additional
amount to any Lender or any Governmental Authority for the account of any Lender pursuant to Section 3.01 and, in each case,
such Lender has declined or is unable to designate a different Lending Office in accordance with Section 3.06(a), the Borrower
may replace such Lender in accordance with Section 10.13.


 


3.07        Survival.  All of the Borrower’s obligations under this Article III shall survive repayment of all Obligations hereunder
and resignation of the Agent.


 


ARTICLE
IV

CONDITIONS PRECEDENT TO LOANS


 


4.01        Conditions
of Loans.  The obligation of each Lender to make its Loan hereunder is subject to satisfaction of the following conditions precedent:


 


(a)          The
Agent’s receipt of the following, each of which shall be originals, telecopies or other electronic
image scan transmission (e.g., “pdf” or “tif ” via e-mail) (followed promptly by originals) unless
otherwise specified, each dated the Closing Date (or, in the case of certificates of governmental officials, a recent date before
the Closing Date) and each in form and substance satisfactory to the Agent:


 


(i)          counterparts
of this Agreement each properly executed by a Responsible Officer of the signing Loan Party and the Lenders sufficient in number
for distribution to the Agent, each Lender and the Borrower;


 


(ii)         a
Note executed by the Borrower in favor of each Lender requesting a Note;


 


(iii)        such
certificates of resolutions or other action, incumbency certificates and/or other certificates of Responsible Officers of each
Loan Party as the Agent may require evidencing (A) the authority of each Loan Party to enter into this Agreement and the other
Loan Documents to which such Loan Party is a party or is to become a party and (B) the identity, authority and capacity of each
Responsible Officer thereof authorized to act as a Responsible Officer in connection with this Agreement and the other Loan Documents
to which such Loan Party is a party or is to become a party;


 




    	42



    	 



    

 


(iv)        copies
of each Loan Party’s Organization Documents and such other documents and certifications as the Agent may reasonably require
to evidence that each Loan Party is duly organized or formed, and that each Loan Party is validly existing, in good standing in
its jurisdiction of organization or formation;


 


(v)         an
opinion of White & Case LLP, counsel to the Loan Parties, addressed to the Agent and each Lender, as to such customary matters
concerning the Loan Parties and the Loan Documents as the Agent may reasonably request;


 


(vi)        a
certificate of a Responsible Officer of the Borrower certifying (A) that the conditions specified in this Article IV have been
satisfied, (B) that there has been no event or circumstance since the date of the Audited Financial Statements that has had or
could be reasonably expected to have, either individually or in the aggregate, a Material Adverse Effect, (C) to the Solvency of
the Loan Parties as of the Closing Date after giving effect to the transactions contemplated hereby, and (D) either that (1) no
consents, licenses or approvals are required in connection with the execution, delivery and performance by such Loan Party and
the validity against such Loan Party of the Loan Documents to which it is a party, or (2) that all such consents, licenses and
approvals have been obtained and are in full force and effect;


 


(vii)       evidence
that all insurance required to be maintained pursuant to the Loan Documents has been obtained and is in effect;


 


(viii)      the
Security Documents and certificates evidencing any stock being pledged thereunder, together with undated stock powers executed
in blank, each duly executed by the applicable Loan Parties;


 


(ix)         all
other Loan Documents, each duly executed by the applicable Loan Parties;


 


(x)          (A)         an
appraisal (based on net liquidation value) by a third party appraiser acceptable to the Agent of all Material Intellectual Property
of the Loan Parties, the results of which are satisfactory to the Agent, and (B) a written report regarding the results of a commercial
finance examination of the Loan Parties, which shall be satisfactory to the Agent;


 


(xi)         results
of searches or other evidence reasonably satisfactory to the Agent (in each case dated as of a date reasonably satisfactory to
the Agent) indicating the absence of Liens on the assets of the Loan Parties, except for Permitted Encumbrances and Liens for which
termination statements satisfactory to the Agent are being tendered concurrently with such extension of credit or other arrangements
satisfactory to the Agent for the delivery of such termination statements have been made; and


 


(xii)        all
documents and instruments, including Uniform Commercial Code financing statements and filings with the United States Patent and
Trademark Office and the United States Copyright Office, required by law or reasonably requested by the Agent to be filed, registered
or recorded to create or perfect the first priority Liens intended to be created under the Loan Documents and all such documents
and instruments shall have been so filed, registered or recorded to the satisfaction of the Agent.


 




    	43



    	 



    

 


(b)          The
Agent and the Lenders shall have received and be satisfied with the substance of (i) (x) audited annual financial statements of
the Borrower and its Subsidiaries for the Fiscal Year ended December 31, 2011, (y) audited annual financial statements of the Borrower
and its Subsidiaries for the Fiscal Year ended December 31, 2012 (or, if audited financial statements are not available, unaudited
drafts thereof), and (z) interim financial statements of the Borrower and its Subsidiaries dated the end of the most recent Fiscal
Quarter ended at least forty-five (45) days prior to the Closing Date for which such financial statements are available, and (ii)
projections and such other information (financial or otherwise) reasonably requested by the Agent.


 


(c)          All
fees required to be paid to the Agent on or before the Closing Date shall have been paid in full, and all fees required to be paid
to the Lenders on or before the Closing Date shall have been paid in full.


 


(d)          The
Borrower shall have paid all fees, charges and disbursements of counsel to the Agent to the extent invoiced at least one (1) Business
Day prior to the Closing Date.


 


(e)          The
Agent and the Lenders shall have received all documentation and other information required by regulatory authorities under applicable
“know your customer” and anti-money laundering rules and regulations, including without limitation the USA PATRIOT
Act.


 


(f)          The
Agent shall have received a certified copy of the Brand Matter Acquisition Agreement, duly executed by the parties thereto (together
with all exhibits and schedules thereto), which shall be in full force and effect.


 


(g)          Prior
to or contemporaneously with the initial funding of the Loans, the Borrower shall consummate the Brand Matter Acquisition in accordance
with the terms and conditions set forth in the Brand Matter Acquisition Agreement; provided that, without the prior consent
of the Agent, no provision of the Brand Matter Acquisition Agreement shall have been amended, supplemented or otherwise modified,
and no provision thereof shall have been waived by the Borrower in a manner that is material and adverse to the interests of the
Lenders (as reasonably determined by the Agent).


 


(h)          The
Agent shall have received evidence satisfactory to it that all of the outstanding convertible notes of the Borrower in the aggregate
principal amount of $14,500,000 shall have been converted into Equity Interests of the Borrower.


 


(i)          The
representations and warranties of each Loan Party contained in Article V or in any other Loan Document, or which are contained
in any document furnished at any time under or in connection herewith or therewith, shall be true and correct in all material respects
on and as of the Closing Date, except to the extent that such representations and warranties specifically refer to an earlier date,
in which case they shall be true and correct as of such earlier date, and in the case of any representation
and warranty qualified by materiality, they shall be true and correct in all respects.


 


ARTICLE
V

REPRESENTATIONS AND WARRANTIES


 


To induce the Credit Parties to enter into this Agreement and
to make Loans hereunder, each Loan Party represents and warrants to the Agent and the other Credit Parties that:


 




    	44



    	 



    

 


5.01        Existence,
Qualification and Power  Each Loan Party and each of their Subsidiaries (a) is a corporation, limited liability company, partnership
or limited partnership, duly incorporated, organized or formed, validly existing and, where applicable, in good standing under
the Laws of the jurisdiction of its incorporation, organization or formation, (b) has all requisite power and authority and all
requisite governmental licenses, permits, authorizations, consents and approvals to (i) own or lease its assets and carry on its
business and (ii) other than with respect to Subsidiaries that are not Loan Parties, execute, deliver and perform its obligations
under the Loan Documents to which it is a party, and (c) is duly qualified and is licensed and, where applicable, in good standing
under the Laws of each jurisdiction where its ownership, lease or operation of properties or the conduct of its business requires
such qualification or license; except in each case referred to in clause (c), to the extent that failure to do so could not reasonably
be expected to have a Material Adverse Effect. Schedule 5.01 annexed hereto sets forth, as of the Closing Date, each Loan Party’s
name as it appears in official filings in its state of incorporation or organization, its state of incorporation or organization,
organization type, organization number, if any, issued by its state of incorporation or organization, and its federal employer
identification number.


 





5.02        Authorization;
No Contravention  The execution, delivery and performance by each Loan Party of each Loan Document to which such
Person is or is to be a party, has been duly authorized by all necessary corporate or other organizational action, and does not
and will not (a) contravene the terms of any of such Person's Organization Documents; (b) conflict with or result in any breach,
termination, or contravention of, or constitute a default under, or require any payment to be made under (i) any Material Contract
or any Material Indebtedness to which such Person is a party or affecting such Person or the properties of such Person or any of
its Subsidiaries or (ii) any order, injunction, writ or decree of any Governmental Authority or any arbitral award to which such
Person or its property is subject; (c) result in or require the creation of any Lien upon any asset of any Loan Party (other than
Liens in favor of the Agent under the Security Documents); or (d) violate any applicable Law, except in the case of clauses (b)(ii)
and (d), to the extent that such conflict or violation would not reasonably be expected to result in a Material Adverse Effect.


 


5.03        Governmental
Authorization; Other Consents  No approval, consent, exemption, authorization, or other action by, or notice to,
or filing with, any Governmental Authority or any other Person is necessary or required in connection with the execution, delivery
or performance by, or enforcement against, any Loan Party of this Agreement or any other Loan Document, except for (a) the perfection
or maintenance of the Liens created under the Security Documents (including the first priority nature thereof) or (b) such
as have been obtained or made and are in full force and effect.


 


5.04        Binding
Effect  This Agreement has been, and each other Loan Document, when delivered, will have been, duly executed and
delivered by each Loan Party that is party thereto. This Agreement constitutes, and each other Loan Document when so delivered
will constitute, a legal, valid and binding obligation of such Loan Party, enforceable against each Loan Party that is party thereto
in accordance with its terms, subject to (i) applicable bankruptcy, insolvency, reorganization, moratorium or other laws affecting
creditors’ rights generally and subject to general principles of equity, regardless of whether considered in a proceeding
in equity or at law, and (ii) the need for filings and registrations necessary to perfect the Liens on the Collateral granted by
the Loan Parties in favor of the Credit Parties.







 




    	45



    	 



    

 


5.05        Financial
Statements; No Material Adverse Effect.


 


(a)          Except
with respect to items to be reflected in the Restated Financial Statements, the Audited Financial Statements (i) were prepared
in accordance with GAAP consistently applied throughout the period covered thereby, except as otherwise expressly noted therein;
(ii) fairly present the financial condition of the Borrower and its Subsidiaries as of the date thereof and their results of operations
for the period covered thereby in accordance with GAAP consistently applied throughout the period covered thereby, except as otherwise
expressly noted therein; and (iii) show all Material Indebtedness and other liabilities, direct or contingent, of the Borrower
and its Subsidiaries as of the date thereof, including liabilities for taxes, material commitments and Indebtedness.


 


(b)          Except
with respect to items to be reflected in the Restated Financial Statements, the unaudited Consolidated balance sheet of the Borrower
and its Subsidiaries dated September 30, 2012, and the related Consolidated statements of income or operations, Shareholders’
Equity and cash flows for the Fiscal Quarter ended on that date (i) were prepared in accordance with GAAP consistently applied
throughout the period covered thereby, except as otherwise expressly noted therein, and (ii) fairly present the financial condition
of the Borrower and its Subsidiaries as of the date thereof and their results of operations for the period covered thereby, subject,
in the case of clauses (i) and (ii), to the absence of footnotes and to normal year-end audit adjustments.


 


(c)          Since
the date of the Audited Financial Statements, there has been no event or circumstance, either individually or in the aggregate,
that has had or could reasonably be expected to have a Material Adverse Effect.


 


(d)          Except
with respect to items to be reflected in the Restated Financial Statements, to the best knowledge of the Borrower, no Internal
Control Event exists or has occurred since the date of the Audited Financial Statements that has resulted in or could reasonably
be expected to result in a misstatement in any material respect, (i) in any financial information delivered or to be delivered
to the Agent or the Lenders, (ii) of covenant compliance calculations provided hereunder or (iv) of the assets, liabilities, financial
condition or results of operations of the Borrower and its Subsidiaries on a Consolidated basis.


 


(e)          
The Consolidated forecasted balance sheet and statements of income and cash flows of the Borrower and its Subsidiaries delivered
pursuant to Section 6.01(c) were prepared in good faith on the basis of the assumptions stated therein, which assumptions
were reasonable in light of the conditions existing at the time of delivery of such forecasts, and represented, at the time of
delivery, the Loan Parties’ best estimate of its future financial performance, it being recognized by the Lenders that projections
as to future events are not to be viewed as facts and that actual results during the period or periods covered by the projections
may differ from the projected results included in such projections.


 


5.06        Litigation  There are no actions, suits, proceedings, claims or disputes pending or, to the knowledge of the Loan Parties after due and diligent
investigation, threatened or contemplated, at law, in equity, in arbitration or before any Governmental Authority, by or against
any Loan Party or any of its Subsidiaries or against any of its properties or revenues that (a) purport to affect or pertain to
this Agreement or any other Loan Document, or any of the transactions contemplated hereby, or (b) either individually or in the
aggregate, if determined adversely, could reasonably be expected to have a Material Adverse Effect.


 


5.07        No
Default  No Loan Party or any Subsidiary is in default under or with respect to, any Material Contract or any Material Indebtedness.
As of the Closing Date, no Default or Event of Default has occurred and is continuing or would result from the consummation of
the transactions contemplated by this Agreement or any other Loan Document.


 




    	46



    	 



    

 


5.08        Ownership
of Property; Liens


 


(a)          Each
of the Loan Parties has good marketable title in fee simple to or valid leasehold interests or use rights in, all Real Estate necessary
in the ordinary conduct of its business, except for (i) Permitted Encumbrances, and (ii) such defects in, or failures to have,
title as could not, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect. Each of the Loan
Parties and each of their Subsidiaries has good and marketable title to, or valid licenses to use, all personal property and assets
material to the ordinary conduct of its business except for such defects in, or failures to have, title as could not, individually
or in the aggregate, reasonably be expected to have a Material Adverse Effect.


 


(b)          Schedule
5.08(b)(1) sets forth the address (including street address, county and state) of all Real Estate (excluding Leases, easements,
rights of way and similar rights) that is owned by the Loan Parties, together with a list of the holders of any mortgage or other
Lien thereon as of the Closing Date. Schedule 5.08(b)(2) sets forth the address (including street address, county and state) of
all material Leases of the Loan Parties, together with the name of each lessor and its contact information with respect to each
such Lease as of the Closing Date. Each of such Leases is in full force and effect and the Loan Parties are not in default of any
material term thereof.


 


5.09        Environmental
Compliance.


 


(a)          No
Loan Party (i) has failed to comply with any Environmental Law or to obtain, maintain or comply with any permit, license or other
approval required under any Environmental Law, (ii) has become subject to any Environmental Liability, (iii) has received notice
of any claim with respect to any Environmental Liability or (iv) knows of any basis for any Environmental Liability, except, in
each case (i) to (iv), as could not, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect.


 


(b)          Except
as could not, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect, (i) none of the properties
currently owned or operated by any Loan Party is listed or, to the knowledge of the Loan Parties proposed for listing, on the NPL
or on the CERCLIS; (ii) to the knowledge of the Loan Parties, there are no underground or above-ground storage tanks or any surface
impoundments, septic tanks, pits, sumps or lagoons in which Hazardous Materials are being treated, stored or disposed on any property
currently owned or operated by any Loan Party; (iii) there is no asbestos or asbestos-containing material on any property currently
owned or operated by any Loan Party; and (iv) Hazardous Materials have not been released, discharged or disposed of on any property
currently owned or operated by any Loan Party in violation of any Environmental Law.


 


(c)          No
Loan Party is undertaking, either individually or together with other potentially responsible parties, any investigation or assessment
or remedial or response action relating to any actual or threatened release, discharge or disposal of Hazardous Materials at any
site, location or operation, either voluntarily or pursuant to the order of any Governmental Authority or the requirements of any
Environmental Law, except, in each case, as could not, individually or in the aggregate, reasonably be expected to have a Material
Adverse Effect; and to the knowledge of the Loan Parties, all Hazardous Materials generated, used, treated, handled or stored at,
or transported to or from, any property currently owned or operated by any Loan Party have been disposed of in a manner not reasonably
expected to have a Material Adverse Effect.


 




    	47



    	 



    

 


5.10        Insurance  The properties of the Loan Parties are insured with financially sound and reputable insurance companies which are not Affiliates
of the Loan Parties, in such, with such deductibles and covering such risks (including, without limitation, workmen’s compensation,
public liability, business interruption, property damage and directors and officers liability insurance) as are customarily carried
by companies engaged in similar businesses and owning similar properties in localities where the Loan Parties operates. Schedule
5.10 sets forth a description of all insurance maintained by or on behalf of the Loan Parties as of the Closing Date. As of the
Closing Date, each insurance policy listed on Schedule 5.10 is in full force and effect and all premiums in respect thereof that
are due and payable have been paid.


 


5.11        Taxes  The
Loan Parties and each of their Subsidiaries (a) have filed all United States federal, state and other material tax returns and
reports required to be filed, and (b) have paid all United States federal, state and other material taxes, assessments, fees and
other governmental charges levied or imposed upon them or their properties, income or assets otherwise due and payable, except
those (i) which are being contested in good faith by appropriate proceedings being diligently conducted, for which adequate reserves
have been provided in accordance with GAAP or (ii) as could not, individually or in the aggregate, reasonably be expected to have
a Material Adverse Effect. There is no proposed tax assessment against any Loan Party that would, if made, have a Material Adverse
Effect. No Loan Party or any Subsidiary thereof is a party to any tax sharing agreement.


 


5.12        ERISA
Compliance.


 


(a)          Each
Pension Plan is in compliance in all material respects with the applicable provisions of ERISA, the Code and other U.S. federal
or state laws, except where any failure could not reasonably be expected to have a Material Adverse Effect. Each Pension Plan that
is intended to be a qualified plan under Section 401(a) of the Code has received a favorable determination letter from the Internal
Revenue Service to the effect that the form of such Plan is qualified under Section 401(a) of the Code and the trust related thereto
has been determined by the Internal Revenue Service to be exempt from federal income tax under Section 501(a) of the Code, or an
application for such a letter is currently being processed by the Internal Revenue Service. To the knowledge of the Borrower, nothing
has occurred that would prevent or cause the loss of such tax-qualified status.


 


(b)          There
are no pending or, to the knowledge of the Borrower, threatened claims, actions or lawsuits, or action by any Governmental Authority,
with respect to any Plan that could reasonably be expected to have a Material Adverse Effect. There has been no non-exempt prohibited
transaction or violation of the fiduciary responsibility rules with respect to any Plan that has resulted or could reasonably be
expected to result in a Material Adverse Effect.


 


(c)          
(i) No ERISA Event has occurred, and neither the Borrower nor any ERISA Affiliate is aware of any fact, event or circumstance that
could reasonably be expected to constitute or result in an ERISA Event with respect to any Pension Plan; (ii) the Borrower and
each ERISA Affiliate has met all applicable requirements under the Pension Funding Rules in respect of each Pension Plan, and no
waiver of the minimum funding standards under the Pension Funding Rules has been applied for or obtained; (iii) neither the Borrower
nor any ERISA Affiliate has incurred any liability to the PBGC other than for the payment of premiums, and there are no premium
payments which have become due that are unpaid; (iv) neither the Borrower nor any ERISA Affiliate has engaged in a transaction
that could be subject to Section 4069 or Section 4212(c) of ERISA; and (v) no Pension Plan has been terminated by the plan administrator
thereof nor by the PBGC, and no event or circumstance has occurred or exists that could reasonably be expected to cause the PBGC
to institute proceedings under Title IV of ERISA to terminate any Pension Plan, except, in each of clauses (i) through (v), as
could not, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect.


 




    	48



    	 



    

 


5.13        Subsidiaries;
Equity Interests  As of the Closing Date, the Loan Parties have no Subsidiaries other than those specifically disclosed in Part
(a) of Schedule 5.13, which Schedule sets forth the legal name, jurisdiction of incorporation or formation and authorized Equity
Interests of each such Subsidiary. All of the outstanding Equity Interests in such Subsidiaries have been validly issued, are
fully paid and non-assessable and are owned by a Loan Party in the amounts specified on Part (a) of Schedule 5.13 free and clear
of all Liens except for those Liens created under the Security Documents, Liens permitted by clause (o) of the definition of Permitted
Encumbrances and Permitted Encumbrances having priority over the Lien of the Credit Parties under applicable Laws. Except as set
forth in Schedule 5.13, there are no outstanding rights to purchase any Equity Interests in any Subsidiary. As of the Closing
Date, the Loan Parties have no equity investments in any other corporation or entity other than those specifically disclosed in
Part (b) of Schedule 5.13. All of the outstanding Equity Interests in the Loan Parties have been validly issued, and are fully
paid and non-assessable and are owned in the amounts specified on Part (c) of Schedule 5.13 free and clear of all Liens except
for those Liens created under the Security Documents and Permitted Encumbrances having priority over the Liens of the Credit Parties
under applicable Laws. The copies of the Organization Documents of each Loan Party and each amendment thereto provided pursuant
to Section 4.01 are true and correct copies of each such document, each of which is valid and in full force and effect.


 


5.14        Margin
Regulations; Investment Company Act.


 


(a)          No
Loan Party is engaged or will be engaged, principally or as one of its important activities, in the business of purchasing or carrying
margin stock (within the meaning of Regulation U issued by the FRB), or extending credit for the purpose of purchasing or carrying
margin stock. None of the proceeds of the Loans shall be used directly or indirectly for the purpose of purchasing or carrying
any margin stock, for the purpose of reducing or retiring any Indebtedness that was originally incurred to purchase or carry any
margin stock or for any other purpose that might cause any of the Loans to be considered a “purpose credit” within
the meaning of Regulations T, U, or X issued by the FRB.


 


(b)          None
of the Loan Parties, any Person Controlling any Loan Party, or any Subsidiary is or is required to be registered as an “investment
company” under the Investment Company Act of 1940.


 


5.15        Disclosure  Each
Loan Party and each of their Subsidiaries has disclosed to the Agent and the Lenders all agreements, instruments and corporate
or other restrictions to which it is subject, and all other matters known to it, that, in each case, individually or in the aggregate,
could reasonably be expected to result in a Material Adverse Effect. As of the Closing Date, no report, financial statement, certificate
or other information relating to the Borrower or any of its Subsidiaries (other than any information of a general economic or
industry specific nature and third party consultants reports) furnished by or on behalf of any Loan Party to the Agent or any
Lender in connection with the transactions contemplated hereby and the negotiation of this Agreement or delivered hereunder or
under any other Loan Document (in each case, as modified or supplemented by other information so furnished prior to the execution
hereof or thereof) when taken as a whole contains any material misstatement of fact or omits to state any material fact necessary
to make the statements therein, in the light of the circumstances under which they were made, after giving effect to any supplements
thereto, not materially misleading; provided that, with respect to projected financial information, the Loan Parties represent
only that such information was prepared in good faith based upon assumptions believed to be reasonable at the time.


 




    	49



    	 



    

 


5.16        Compliance
with Laws  Each of the Loan Parties and each of their Subsidiaries is in compliance in all material respects with the requirements
of all Laws and all orders, writs, injunctions and decrees applicable to it or to its properties, except in such instances in which
(a) such requirement of Law or order, writ, injunction or decree is being contested in good faith by appropriate proceedings diligently
conducted or (b) the failure to comply therewith, either individually or in the aggregate, could not reasonably be expected to
have a Material Adverse Effect.


 


5.17        Intellectual
Property; Licenses, Etc.  The Loan Parties and each of their Subsidiaries own, or are licensed to use, all Material Intellectual
Property, and the use thereof by the Loan Parties or their Subsidiaries does not infringe upon the rights of any other Person.
All items of Material Intellectual Property as of the Closing Date are: (a) subsisting and have not been adjudged invalid or unenforceable,
in whole or part; and (b) to the knowledge of the Loan Parties, valid, in full force and effect and not in known conflict with
the rights of any Person. The Loan Parties have made all filings and recordations necessary in the exercise of reasonable and prudent
business judgment to protect their interests in the Material Intellectual Property in the United States Patent and Trademark Office,
and the United States Copyright Office, as appropriate, including, the performance of all acts and the payment of all required
fees and taxes to maintain each and every item of Material Intellectual Property in full force and effect. As of the Closing Date,
no litigation is pending or, to the knowledge of any Loan Party, threatened which contains allegations respecting the validity,
enforceability, infringement or ownership of any of the Material Intellectual Property. No Loan Party is in breach of or default
under the provisions of any of the Material Licenses, nor is there any event, fact, condition or circumstance which, with notice
or passage of time or both, would constitute or result in a conflict, breach, default or event of default under, any of the foregoing
which reasonably could be expected to result in, either individually or in the aggregate, a Material Adverse Effect.


 


5.18        Reserved.


 


5.19        Security
Documents.


 


The Security Agreement creates in favor of
the Agent, for the benefit of the Credit Parties, a valid and enforceable security interest in the Collateral (as defined in the
Security Agreement), the enforceability of which is subject to applicable bankruptcy, insolvency, reorganization, moratorium or
other laws affecting creditors’ rights generally and subject to general principles of equity, regardless of whether considered
in a proceeding in equity or at law. The UCC financing statements and other filings delivered by the Loan Parties on the Closing
Date are in appropriate form for filing in the applicable offices. Upon such filings and/or the obtaining of “control”
(as such term is defined in the UCC) to the extent required by the Loan Documents (and, in the case of Intellectual Property that
is issued by, or registered or applied for in, the United States Copyright Office and constituting Collateral, the filing and recordation
of the Copyright Security Agreement with the United States Copyright Office, the Agent will have a perfected Lien on, and security
interest in, to and under all right, title and interest of the grantors thereunder in all Collateral that may be perfected in the
United States by filing, recording or registering a financing statement or analogous document (including without limitation the
proceeds of such Collateral subject to the limitations relating to such proceeds in the UCC) (it being understood that subsequent
recordings in the United States Copyright Office may be necessary to perfect a Lien on registered Copyrights acquired by the Loan
Parties after the date hereof).


 




    	50



    	 



    

 


5.20        Solvency


 


After giving effect to the transactions contemplated by this
Agreement, the Loan Parties, on a Consolidated basis, are Solvent. No transfer of property has been or will be made by any Loan
Party and no obligation has been or will be incurred by any Loan Party in connection with the transactions contemplated by this
Agreement or the other Loan Documents with the intent to hinder, delay, or defraud either present or future creditors of any Loan
Party.


 


5.21        Deposit
Accounts.


 


Annexed hereto as Schedule 5.21 is a list
of all Deposit Accounts maintained by the Loan Parties as of the Closing Date, which Schedule includes, with respect to each Deposit
Account (i) the name and address of the depository; (ii) the account number(s) maintained with such depository; (iii) a contact
person at such depository, and (iv) the identification of each Blocked Account Bank.


 


5.22        Brokers  No broker or finder brought about the obtaining, making or closing of the Loans or transactions contemplated by the Loan Documents,
and no Loan Party or Affiliate thereof has any obligation to any Person in respect of any finder’s or brokerage fees in connection
therewith.


 


5.23        Material
Contracts  Schedule 5.23 sets forth all Material Contracts (other than Material Licenses set forth on Schedule 5.17) to which
any Loan Party is a party or is bound as of the Closing Date. The Loan Parties have delivered true, correct and complete copies
of such Material Contracts to the Agent on or before the Closing Date. The Loan Parties are not in breach or in default in any
material respect of or under any Material Contract and have not received any notice of default under, or of the intention of any
other party thereto to terminate, any Material Contract.


 


ARTICLE
VI

AFFIRMATIVE COVENANTS


 


So long as any Loan or other Obligation hereunder shall remain
unpaid or unsatisfied (other than contingent indemnification claims for which a claim has not been asserted), the Loan Parties
shall and shall cause their Subsidiaries to:


 


6.01        Financial
Statements.  Deliver to the Agent, in form and detail satisfactory to the Agent:


 


(a)          as
soon as available, but in any event within 90 days after the end of each Fiscal Year of the Borrower (commencing with the fiscal
year ended December 31, 2012), a Consolidated balance sheet of the Borrower and its Subsidiaries as at the end of such Fiscal Year,
and the related consolidated statements of income or operations, Shareholders’ Equity and cash flows for such Fiscal Year,
setting forth in each case in comparative form the figures for the previous Fiscal Year, all in reasonable detail and prepared
in accordance with GAAP, audited and accompanied by a report and unqualified opinion of a Registered Public Accounting Firm of
nationally recognized standing reasonably acceptable to the Agent, which report and opinion shall be prepared in accordance with
generally accepted auditing standards and shall not be subject to any “going concern” or like qualification or exception
or any qualification or exception as to the scope of such audit;


 




    	51



    	 



    

 


(b)          as
soon as available, but in any event within 45 days after the end of each Fiscal Quarters of each Fiscal Year of the Borrower (commencing
with the Fiscal Quarter ended March 31, 2013), a Consolidated balance sheet of the Borrower and its Subsidiaries as at the end
of such Fiscal Quarter, and the related consolidated statements of income or operations, Shareholders’ Equity and cash flows
for such Fiscal Quarter and for the portion of the Borrower’s Fiscal Year then ended, setting forth in each case in comparative
form the figures for (A) such period set forth in the projections delivered pursuant to Section 6.01(d) hereof, (B) the corresponding
Fiscal Quarter of the previous Fiscal Year and (C) the corresponding portion of the previous Fiscal Year, all in reasonable detail,
certified by a Responsible Officer of the Borrower as fairly presenting the financial condition, results of operations, Shareholders’
Equity and cash flows of the Borrower and its Subsidiaries as of the end of such Fiscal Quarter in accordance with GAAP, subject
only to normal year-end audit adjustments and the absence of footnotes;


 


(c)          solely
to the extent prepared by the Borrower in the ordinary course of business, then as soon as available, a consolidated balance sheet
of the Borrower and its Subsidiaries as at the end of each Fiscal Month of each Fiscal Year of the Borrower, and the related consolidated
statements of income or operations, Shareholders’ Equity and cash flows for such Fiscal Month, certified by a Responsible
Officer of the Borrower as fairly presenting the financial condition, results of operations, Shareholders’ Equity and cash
flows of the Borrower and its Subsidiaries as of the end of such Fiscal Month in accordance with GAAP, subject only to normal year-end
audit adjustments and the absence of footnotes;


 


(d)          as
soon as available, but in any event at least 30 days before the end of each Fiscal Year of the Borrower, forecasts prepared by
management of the Borrower, representing the Borrower’s good faith estimate of future financial performance and based on
assumptions believed by the Borrower to be fair and reasonable in light of current market conditions and consistent with historical
practices and otherwise in form and based upon assumptions reasonably satisfactory to the Agent, of the consolidated balance sheets
and statements of income or operations and cash flows of the Borrower and its Subsidiaries on a quarterly (or, solely to the extent
prepared by the Borrower in the ordinary course of business, monthly) basis for the immediately following Fiscal Year (including
the Fiscal Year in which the Maturity Date occurs), and as soon as available, any significant revisions to such forecast with respect
to such Fiscal Year.


 


6.02        Certificates;
Other Information.  Deliver to the Agent, in form and detail satisfactory to the Agent:


 


(a)           concurrently
with the delivery of the financial statements referred to in Section 6.01(a), a certificate of its Registered Public Accounting
Firm certifying such financial statements and stating that in making the examination necessary for their certification of such
financial statements, such Registered Public Accounting Firm has not obtained any knowledge of the existence of any Default or
Event of Default under Section 7.15 hereof or, if any such Default or Event of Default shall exist, stating the nature and status
of such event;


 


(b)          concurrently
with the delivery of the financial statements referred to in Sections 6.01(a) and (b) (commencing with the delivery of the
financial statements for the Fiscal Year ended December 31, 2012), (i) a duly completed Compliance Certificate signed by a Responsible
Officer of the Borrower, and in the event of any change in generally accepted accounting principles used in the preparation of
such financial statements, the Borrower shall also provide a statement of reconciliation conforming such financial statements to
GAAP and (ii) a copy of management’s discussion and analysis with respect to such financial statements;


 




    	52



    	 



    

 


(c)          concurrently
with the delivery of the financial statements referred to in Sections 6.01(a) and (b), financial statements with respect
to any Excluded Subsidiaries of the Loan Parties;


 


(d)          promptly
upon receipt, copies of any detailed audit reports, management letters or recommendations submitted to the board of directors (or
the audit committee of the board of directors) of the Borrower by its Registered Public Accounting Firm in connection with the
accounts or books of the Loan Parties, or any audit of any of them, including, without limitation, specifying any Internal Control
Event;


 


(e)          promptly
after the same are available, copies of each annual report, proxy or financial statement or other report or communication sent
to the stockholders of the Borrower, and copies of all annual, regular, periodic and special reports and registration statements
which the Borrower may file or be required to file with the SEC under Section 13 or 15(d) of the Securities Exchange Act of 1934
or with any national securities exchange;


 


(f)          as
soon as available, but in any event within 15 days after the end of each Fiscal Quarters of each Fiscal Year of the Borrower (commencing
with the Fiscal Quarter ended March 31, 2013), an updated report of the royalty revenue summary by brand and related licensing
detail with respect to the Material Licenses of the Loan Parties and any Subsidiary;


 


(g)          prior
to the consummation of any Permitted Acquisition, the Borrower shall provide the Agent with an updated calculation of the Loan
to Value covenant as set forth in Section 7.15(b) hereof and Section 7.15(b) of the Second Lien Credit Agreement;


 


(h)          as
soon as available, but in any event within 15 days after the end of each Fiscal Year of the Borrower, a report summarizing the
insurance coverage (specifying type, amount and carrier) in effect for the Loan Parties and containing such additional information
as the Agent, or any Lender through the Agent, may reasonably specify;


 


(i)          promptly
after the Agent’s request therefor, copies of all Material Contracts and documents evidencing Material Indebtedness;


 


(j)          promptly,
and in any event within five Business Days after receipt thereof by the Borrower, copies of each notice or other correspondence
received from any Governmental Authority (including, without limitation, the SEC (or comparable agency in any applicable non-U.S.
jurisdiction)) concerning any proceeding with, or investigation or possible investigation or other inquiry by such Governmental
Authority regarding financial or other operational results of any Loan Party or any other matter which, if adversely determined,
could reasonably expected to have a Material Adverse Effect;


 


(k)          promptly,
any material amendments, modifications or waivers with respect to any Material Contract or Material License;


 


(l)          promptly,
any Material License entered into by a Loan Party or its Subsidiary;


 


(m)          so
long as the Second Lien Credit Agreement is in effect, copies of all License Payment Reports (as such term is defined in the Second
Lien Credit Agreement) delivered to the Second Lien Agent at the times required in the Second Lien Credit Agreement; and


 




    	53



    	 



    

 


(n)          promptly,
such additional information regarding the business affairs, financial condition or operations of any Loan Party, or compliance
with the terms of the Loan Documents, as the Agent or any Lender may from time to time reasonably request.


 


Documents required to be delivered pursuant to Section 6.01(a)
or (b), or Section 6.02 (to the extent any such documents are included in materials otherwise filed with the SEC) may be
delivered electronically and if so delivered, shall be deemed to have been delivered on the date (i) on which the Borrower posts
such documents, or provides a link thereto on the Borrower’s website on the Internet at the website address listed on Schedule
10.02; or (ii) on which such documents are posted on the Borrower’s behalf on an Internet or intranet website, if any, to
which each Lender and the Agent have access (whether a commercial, third-party website or whether sponsored by the Agent); provided
that: (i) the Borrower shall deliver paper copies of such documents to the Agent or any Lender that requests the Borrower to deliver
such paper copies until a written request to cease delivering paper copies is given by the Agent or such Lender and (ii) the Borrower
shall notify the Agent (by telecopier or electronic mail) of the posting of any such documents and provide to the Agent by electronic
mail electronic versions (i.e., soft copies) of such documents. The Agent shall have no obligation to request the delivery
or to maintain copies of the documents referred to above, and in any event shall have no responsibility to monitor compliance by
the Loan Parties with any such request for delivery, and each Lender shall be solely responsible for requesting delivery to it
or maintaining its copies of such documents.


 


6.03        Notices  Promptly
notify the Agent:


 


(a)          of
the occurrence of any Default or Event of Default;


 


(b)          of
any matter that has resulted or could reasonably be expected to result in a Material Adverse Effect,


 


(c)          of
any breach or non-performance of, or any default under, a Material Contract or with respect to Material Indebtedness of any Loan
Party that has resulted or could reasonably be expected to result in a Material Adverse Effect;


 


(d)          of
any dispute, litigation, investigation, proceeding or suspension between any Loan Party and any Governmental Authority, or the
commencement of, or any material development in, any litigation or proceeding affecting any Loan, including pursuant to any applicable
Environmental Laws, in each case that has resulted or could reasonably be expected to result in a Material Adverse Effect;


 


(e)          of
the occurrence of any ERISA Event that has resulted or could reasonably be expected to result in a Material Adverse Effect;


 


(f)          of
any change in the Borrower’s senior executive officers;


 


(g)          of
the discharge by the Borrower of its present Registered Public Accounting Firm or any withdrawal or resignation by such Registered
Public Accounting Firm;


 


(h)          of
the filing of any Lien for unpaid Taxes against any Loan Party that has resulted or could reasonably be expected to result in a
Material Adverse Effect;


 


(i)          of
the Borrower’s obtaining knowledge that any application or registration relating to any Material Intellectual Property (whether
now or hereafter existing) may become abandoned or dedicated, or of any adverse determination or development (including the institution
of, or any such determination or development in, any proceeding in the United States Patent and Trademark Office, the United States
Copyright Office or any court) regarding Borrower’s ownership of any Material Intellectual Property; and


 




    	54



    	 



    

 







 


(j)          of
the failure to renew, or the cancelation of, any Material License. Each notice pursuant to this Section shall be accompanied by
a statement of a Responsible Officer of the Borrower setting forth details of the occurrence referred to therein and stating what
action the Borrower has taken and proposes to take with respect thereto. Documents required to be delivered pursuant to this Section
6.03 (to the extent any such documents are included in materials otherwise filed with the SEC) may be delivered electronically
and if so delivered, shall be deemed to have been delivered on the date (i) on which the Borrower posts such documents, or provides
a link thereto on the Borrower’s website on the Internet at the website address listed on Schedule 10.02; or (ii) on which
such documents are posted on the Borrower’s behalf on an Internet or intranet website, if any, to which each Lender and
the Agent have access (whether a commercial, third-party website or whether sponsored by the Agent); provided that the
Borrower shall notify the Agent (by telecopier or electronic mail) of the posting of any such documents and provide to the Agent
by electronic mail electronic versions (i.e., soft copies) of such documents.


 


6.04        Payment
of Obligations  Pay and discharge as the same shall become due and payable, all its obligations and liabilities,
including (a) all tax liabilities, assessments and governmental charges or levies upon it or its properties or assets, (b) all
lawful claims (including, without limitation, claims of landlords, warehousemen, customs brokers, freight forwarders, consolidators,
and carriers) which, if unpaid, would by Law become a Lien upon its property (other than Permitted Encumbrances); and (c) all
Material Indebtedness, as and when due and payable, but subject to any subordination provisions contained in any instrument or
agreement evidencing such Indebtedness, except, in each case, where (i) the validity or amount thereof is being contested in good
faith by appropriate proceedings and such Loan Party has set aside on its books adequate reserves with respect thereto in accordance
with GAAP, or (ii) the failure to make payment pending such contest could not reasonably be expected to result in a Material Adverse
Effect.


 


6.05        Preservation
of Existence, Etc.   (a) Preserve, renew and maintain in full force and effect its legal existence and good standing under
the Laws of the jurisdiction of its organization or formation except in a transaction permitted by Section 7.04 or 7.05;
and (b) take all reasonable action to maintain all rights, privileges, permits, licenses and franchises necessary or desirable
in the normal conduct of its business, except to the extent that failure to do so could not reasonably be expected to have a Material
Adverse Effect. Notwithstanding the foregoing, no provision herein or in any other Loan Document shall be deemed to restrict the
dissolution of William Rast Europe Holdings, LLC and such dissolution is expressly permitted.


 


6.06        Maintenance
of Properties; Material Intellectual Property 


 


(a)          
(i) Maintain, preserve and protect all of its material properties and equipment necessary in the operation of its business in good
working order and condition, ordinary wear and tear, casualty and condemnation excepted; and (ii) make all necessary repairs thereto
and renewals and replacements thereof except where the failure to do so could not reasonably be expected to have a Material Adverse
Effect.


 




    	55



    	 



    

 


(b)          (i)
Maintain all Material Intellectual Property in order that such Material Intellectual Property will be (A) subsisting and not adjudged
invalid or unenforceable, in whole or part and (B) valid, in full force and effect and not in known conflict with the rights of
any Person; (ii) make all filings and recordations necessary in the exercise of reasonable and prudent business judgment to protect
such Loan Party’s interest in the Material Intellectual Property in the United States Patent and Trademark Office and the
United States Copyright Office; (iii) perform all acts and pay all required fees and taxes to maintain each and every item of the
Material Intellectual Property in full force and effect; and (iv) enforce all material provisions relating to quality assurance
of products and services set forth in any Material License. For clarity, if any Loan Party determines, in its reasonable judgment,
that any items of Intellectual Property which do not constitute Material Intellectual Property is no longer used or useful or of
material value, such Loan Party may abandon, cancel or cease to protect such non- Material Intellectual Property.


 


6.07        Maintenance
of Insurance  (a)   Maintain with financially sound and reputable
insurance companies reasonably acceptable to the Agent and not Affiliates of the Loan Parties, insurance with respect to its properties
and business against loss or damage of the kinds customarily insured against by Persons engaged in the same or similar business
and operating in the same or similar locations or as is required by Law, of such types and in such amounts as are customarily carried
under similar circumstances by such other Persons and as are reasonably acceptable to the Agent.


 


(b)          Cause
each such policy referred to in clause (a) above (i) to be endorsed to name the Agent as an additional insured or a loss payee,
as applicable, in a form reasonably satisfactory to the Agent, and (ii) to provide that it shall not be canceled, modified or not
renewed (x) by reason of nonpayment of premium except upon not less than ten (10) days’ prior written notice thereof by the
insurer to the Agent (giving the Agent the right to cure defaults in the payment of premiums) or (y) for any other reason except
upon not less than thirty (30) days’ prior written notice thereof by the insurer to the Agent.


 


(c)          Deliver
to the Agent, prior to the cancellation, modification or non-renewal of any such policy of insurance, a copy of a renewal or replacement
policy (or other evidence of renewal of a policy previously delivered to the Agent, including an insurance binder) together with
evidence satisfactory to the Agent of payment of the premium therefor.


 


None of the Credit Parties, or their agents or employees shall
be liable for any loss or damage insured by the insurance policies required to be maintained under this Section 6.07. Each Loan
Party shall look solely to its insurance companies or any other parties other than the Credit Parties for the recovery of such
loss or damage and such insurance companies shall have no rights of subrogation against any Credit Party or its agents or employees.
If, however, the insurance policies do not provide waiver of subrogation rights against such parties, as required above, then the
Loan Parties hereby agree, to the extent permitted by law, to waive their right of recovery, if any, against the Credit Parties
and their agents and employees. The designation of any form, type or amount of insurance coverage by any Credit Party under this
Section 6.07 shall in no event be deemed a representation, warranty or advice by such Credit Party that such insurance is adequate
for the purposes of the business of the Loan Parties or the protection of their properties.


 




    	56



    	 



    

 


6.08        Compliance
with Laws  Comply in all material respects with the requirements of all Laws and all orders, writs, injunctions
and decrees applicable to it or to its business or property, except in such instances in which (a) such requirement of Law or
order, writ, injunction or decree is being contested in good faith by appropriate proceedings diligently conducted and with respect
to which adequate reserves have been set aside and maintained by the Loan Parties in accordance with GAAP; (b) such contest effectively
suspends enforcement of the contested Laws, and (c) the failure to comply therewith could not reasonably be expected to have a
Material Adverse Effect.


 


6.09        Books
and Records; Accountants.


 


(a)          Maintain
proper books of record and account, in which full, true and correct entries in conformity with GAAP consistently applied shall
be made of all financial transactions and matters involving the assets and business of the Loan Parties.


 


(b)          At
all times retain Grant Thornton LLP, any other Registered Public Accounting Firm of nationally recognized standing, or another
Registered Public Accounting Firm which is reasonably satisfactory to the Agent, and, subject to the limitation set forth in Section
6.10 below, instruct such Registered Public Accounting Firm to cooperate with, and be available to, the Agent or its representatives
to discuss the Loan Parties’ financial performance, financial condition, operating results, controls, and such other matters,
within the scope of the retention of such Registered Public Accounting Firm, as may be raised by the Agent.


 


6.10        Inspection
Rights; Appraisals of Intellectual Property.


 


(a)          Permit
representatives and independent contractors, including consultants, of the Agent to visit and inspect, under guidance of officers
of the Borrower, any of its properties, to examine its corporate, financial and operating records, and make copies thereof or abstracts
therefrom, and to discuss its affairs, finances and accounts with its officers, and Registered Public Accounting Firm, all at the
expense of the Loan Parties and at such reasonable times during normal business hours and as often as may be reasonably desired
(but absent the existence of a Default or Event of Default, the Borrower shall not be required to pay for more than three such
visits and inspections in any calendar year) upon reasonable advance notice to the Borrower; provided, however, that
when a Default or an Event of Default exists the Agent (or any of its representatives or independent contractors) may do any of
the foregoing at the expense of the Loan Parties as often as it deems appropriate and at any time during normal business hours
and without advance notice.


 


(b)          Upon
the request of the Agent after reasonable prior notice, permit the Agent or professionals (including appraisers) retained by the
Agent to conduct (x) up to one (1) appraisal of the trade names and brands and other Intellectual Property of the Loan Parties
in each calendar year at the Loan Parties’ expense and (y) up to one (1) additional appraisal of the trade names and brands
and other Intellectual Property of the Loan Parties in each calendar year at the Lenders’ expense.


 


6.11        Additional Loan Parties Notify the Agent at the time that any Person becomes a Subsidiary, and promptly thereafter
(and in any event within fifteen (15) days or such longer period as may be agreed to by the Administrative Agent in its reasonable
discretion), cause any such Person (a) which is not a CFC or any domestic Subsidiary substantially all of the assets of which
constitute equity and/or indebtedness of direct or indirect foreign Subsidiaries or intercompany accounts or an Excluded Subsidiary
to (i) become a Loan Party by executing and delivering to the Agent a Joinder to this Agreement or a Joinder to the Facility Guaranty
or such other documents as the Agent shall deem appropriate for such purpose, (ii) grant a Lien to the Agent on such Person’s
Intellectual Property and other assets of the same type that constitute Collateral (other than for the avoidance of doubt, Real
Estate) to secure the Obligations, and (iii) deliver to the Agent documents of the types referred to in clauses (iii) and (iv)
of Section 4.01(a) and opinions of counsel to such Person (which shall cover, among other things, the legality, validity,
binding effect and enforceability of the documentation referred to in clause (a)), and (b) if any Equity Interests or Indebtedness
of such Person (other than an Excluded Subsidiary) are owned by or on behalf of any Loan Party, to pledge such Equity Interests
and promissory notes evidencing such Indebtedness (except that, if such Subsidiary is a CFC, the Equity Interests of such Subsidiary
to be pledged shall be limited to 65% of the outstanding voting Equity Interests of such Subsidiary and 100% of the non-voting
Equity Interests of such Subsidiary, in each case in form, content and scope reasonably satisfactory to the Agent. In no event
shall compliance with this Section 6.11 waive or be deemed a waiver or Consent to any transaction giving rise to the need to comply
with this Section 6.11 if such transaction was not otherwise expressly permitted by this Agreement or constitute or be deemed
to constitute, with respect to any Subsidiary, an approval of such Person as a Borrower.


 




    	57



    	 



    

 


6.12        Cash
Management.


 


(a)          On
or prior to the day which is ninety (90) days following the Closing Date (or such longer period as may be agreed to by the Administrative
Agent in its reasonable discretion), cause all Deposit Accounts that are concentration and controlled disbursement accounts of
the Loan Parties to be maintained with Bank of America pursuant to such documentation as the Agent may reasonably request, including,
without limitation, a Blocked Account Agreement satisfactory in form and substance to the Agent with respect to each such Deposit
Account (collectively, the “Blocked Accounts”); provided that the Borrower shall be permitted to maintain (x)
for the six (6) month period immediately following the Closing Date, up to $1,500,000 in the aggregate, and (y) thereafter, up
to $1,000,000 in the aggregate in any disbursement account(s) which are not held by Bank of America (such account(s), the “Excluded
Accounts”); it being understood that no Blocked Account Control Agreements or other control agreements shall be required
in respect of the Excluded Accounts, provided that the aggregate amount on deposit in the Excluded Accounts does not exceed
the amounts set forth in clauses (x) or (y) above, as applicable.


 


(b)          After
the occurrence and during the continuance of an Event of Default, cause the ACH or wire transfer to the collection account maintained
by the Agent at Bank of America (the “Collection Account”), no less frequently than daily, all cash receipts
and collections received by each Loan Party from all sources, whether or not constituting Collateral, including, without limitation,
the then entire ledger balance of each Blocked Account or any other Deposit Account of the Loan Parties (in each case, net of any
minimum balance, not to exceed $2,500.00 per account, as may be required to be kept in the subject Blocked Account or other Deposit
Account by the applicable Blocked Account Bank or depository).


 


(c)          The
Collection Account shall at all times be under the sole dominion and control of the Agent. The Loan Parties hereby acknowledge
and agree that (i) the Loan Parties have no right of withdrawal from the Collection Account, (ii) the funds on deposit in the Collection
Account shall at all times be collateral security for all of the Obligations and (iii) during the continuance of an Event of Default,
the funds on deposit in the Collection Account shall be applied to the repayment of the Obligations as provided in this Agreement.
In the event that, notwithstanding the provisions of this Section 6.12, any Loan Party receives or otherwise has dominion
and control of any such cash receipts or collections, such receipts and collections shall be held in trust by such Loan Party for
the Agent, shall not be commingled with any of such Loan Party’s other funds or deposited in any account of such Loan Party
and shall, not later than the Business Day after receipt thereof, be deposited into the Collection Account or dealt with in such
other fashion as such Loan Party may be instructed by the Agent.


 




    	58



    	 



    

 


(d)          Upon
the request of the Agent, cause bank statements and/or other reports to be delivered to the Agent not less often than monthly,
accurately setting forth all amounts deposited in each Blocked Account to ensure the proper transfer of funds as set forth above.


 


6.13        Information
Regarding the Collateral.


 


Furnish to the Agent at least thirty (30) days prior written
notice of any change in: (i) any Loan Party’s; (ii) the location of any Loan Party’s chief executive office, its principal
place of business or any office in which it maintains books or records relating to Collateral owned by it; (iii) any Loan Party’s
organizational structure or jurisdiction of incorporation or formation; or (iv) any Loan Party’s Federal Taxpayer Identification
Number or organizational identification number assigned to it by its state of organization. The Loan Parties shall not effect or
permit any change referred to in the preceding sentence unless all filings have been made or are made substantially concurrently
therewith under the UCC or otherwise that are required in order for the Agent to continue at all times following such change to
have a valid, legal and perfected first priority security interest in all the Collateral for its own benefit and the benefit of
the other Credit Parties.


 


6.14        Environmental
Laws.


 


Except in each case, where the failure to
do so would not, individually or in the aggregate reasonably be expected to result in a Material Adverse Effect, (a) conduct its
operations and keep and maintain its Real Estate in material compliance with all Environmental Laws; (b) obtain and renew all material
environmental permits necessary for its operations and properties; and (c) implement any and all investigation, remediation, removal
and response actions that are appropriate or necessary to maintain the value and marketability of the Real Estate or to otherwise
comply with Environmental Laws pertaining to the presence, generation, treatment, storage, use, disposal, transportation or release
of any Hazardous Materials on, at, in, under, above, to, from or about any of its Real Estate, provided, however,
that neither a Loan Party nor any of its Subsidiaries shall be required to undertake any such cleanup, removal, remedial or other
action to the extent that its obligation to do so is being contested in good faith and by proper proceedings and adequate reserves
have been set aside and are being maintained by the Loan Parties with respect to such circumstances in accordance with GAAP.


 


6.15        Further
Assurances.


 


(a)          Execute
any and all further documents, financing statements, agreements and instruments, and take all such further actions (including the
filing and recording of financing statements and other documents), that may be required under any Law, or which the Agent may reasonably
request, to effectuate the transactions contemplated by the Loan Documents or to grant, preserve, protect or perfect the Liens
created or intended to be created by the Security Documents or the validity or priority of any such Lien, all at the expense of
the Loan Parties (subject to the rights of the Loan Parties to dispose of the Collateral to the extent permitted herein). The Loan
Parties also agree to provide to the Agent, from time to time upon request, evidence satisfactory to the Agent as to the perfection
and priority of the Liens created or intended to be created by the Security Documents.


 


(b)          If
any material assets of the type included in the Collateral as of the Closing Date (excluding for the avoidance of doubt, any Real
Estate) are acquired by any Loan Party after the Closing Date (other than assets constituting Collateral under the Security Documents
that become subject to the perfected first-priority Lien under the Security Documents upon acquisition thereof and other than,
for the avoidance of doubt, any Equity Interests of any Excluded Subsidiary), notify the Agent thereof, and the Loan Parties will
cause such assets to be subjected to a Lien securing the Obligations and will take such actions as shall be necessary or shall
be requested by any Agent to grant and perfect such Liens, including actions described in paragraph (a) of this Section 6.15,
all at the expense of the Loan Parties. In no event shall compliance with this Section 6.15(b) waive or be deemed a waiver
or Consent to any transaction giving rise to the need to comply with this Section 6.15(b) if such transaction was not otherwise
expressly permitted by this Agreement.


 




    	59



    	 



    

 


6.16        Material
Contracts  (a) Perform and observe all the terms and provisions of each Material License and each other Material
Contract to be performed or observed by it, (b) maintain each such Material License and each other Material Contract in full force
and effect except to the extent such Material License or other Material
Contract is no longer used or useful in the conduct of the business of the Loan Parties in the ordinary course of business,
consistent with past practices, (c) enforce each such Material License and each other Material Contract in accordance with its
terms, and (d) cause each of its Subsidiaries to do the foregoing, except, in any case, where the failure to do so, either individually
or in the aggregate, could not be reasonably likely to have a Material Adverse Effect.


 


6.17        Right
of First Refusal.


 


In connection with any Indebtedness to be incurred by a Loan
Party or an Excluded Subsidiary to finance a Permitted Acquisition (except for Permitted Acquisitions for total consideration of
less than $10,000,000 which are paid from the Loan Parties’ cash on hand and not from proceeds of Indebtedness), provide
the Lenders with a bona fide right to provide the financing for such Permitted Acquisition on substantially the same terms as set
forth herein or on such other terms as may be mutually agreed among the Lenders and the Loan Parties (in each case acting in good
faith). In the event that (a) the Lenders and the Loan Parties, after acting diligently and in good faith, are unable to reach
agreement with respect to the commercial terms of such financing or (b) the Lenders decline or fail to respond to the offer to
provide financing for such Permitted Acquisition, in each case within ten (10) Business Days after receipt of the request from
the Loan Parties, the Loan Parties shall have no further obligations pursuant to this Section 6.17 and shall be permitted
to pursue financing for the applicable Permitted Acquisition from alternate sources.


 


6.18        Post-Closing
Items.


 


(a)          Within
ninety (90) days of the Closing Date (or such longer period as may be agreed by the Agent in its reasonable discretion), the Loan
Parties shall cause to be obtained the Blocked Account Agreements required pursuant to Section 6.12 hereof.


 


(b)          On
or before September 28, 2014, the Borrower shall obtain all consents necessary to cause, and shall cause, DVS to become a Guarantor
hereunder and to grant a security interest in all of its assets, including all Intellectual Property, pursuant to the terms of
Section 6.11 hereof; provided that the failure to obtain such consents and to cause DVS to become a Guarantor and grant
a security in its assets as provided above shall not constitute an Event of Default hereunder but shall result in the appraised
orderly liquidation value of registered Trademarks owned by DVS not being taken into account in connection with any appraisal
conducted by or on behalf of the Agent pursuant to Section 6.10(b) after September 28, 2014 or in any
calculation of the financial covenant set forth in Section 7.15(b) hereof.


 


(c)          Within
thirty (30) days of the Closing Date (or such longer period as may be agreed by the Agent in its reasonable discretion), the Loan
Parties shall cause to be delivered to the Agent all endorsements to the insurance policies in favor of the Agent as are required
under the Loan Documents.


 




    	60



    	 



    

 


ARTICLE
VII

NEGATIVE COVENANTS


 


So long as any Loan or other Obligation hereunder shall remain
unpaid or unsatisfied (other than contingent indemnification claims for which a claim has not been asserted), no Loan Party shall
nor shall it permit any of its Subsidiaries to:


 


7.01        Liens  Create,
incur, assume or suffer to exist any Lien upon any of its property, assets or revenues, whether now owned or hereafter acquired
or sign or file or suffer to exist under the UCC or any similar Law or statute of any jurisdiction a financing statement that names
any Loan Party as debtor; sign or suffer to exist any security agreement authorizing any Person thereunder to file such financing
statement; sell any of its property or assets subject to an understanding or agreement (contingent or otherwise) to repurchase
such property or assets with recourse to it; or assign or otherwise transfer any accounts or other rights to receive income, other
than, as to all of the above, Permitted Encumbrances.


 


7.02        Investments  Make
any Investments, except Permitted Investments.


 


7.03        Indebtedness;
Disqualified Stock; Equity Issuances


 


(a)          Create,
incur, assume, guarantee, suffer to exist or otherwise become or remain liable with respect to, any Indebtedness, except Permitted
Indebtedness;


 


(b)         Issue Disqualified Stock;


 


(c)          Issue and sell any other Equity Interests
unless (i) such Equity Interests shall be issued solely by the Borrower and not by a Subsidiary of a Loan Party, (ii) such Equity
Interests provide that all dividends and other Restricted Payments in respect thereof shall be made solely in additional shares
of such Equity Interests, in lieu of cash, (iii) such Equity Interests shall not be subject to redemption other than redemption
at the option of the Loan Party issuing such Equity Interests and in accordance with the limitations contained in this Agreement,
and (iv) all Restricted Payments in respect of such Equity Interests are expressly subordinated to the Obligations; or


 


(d)          Permit
any Excluded Subsidiary to create, incur, assume, guarantee, suffer to exist or otherwise become or remain liable with respect
to any Indebtedness, except Indebtedness of an Excluded Subsidiary with respect to the purchase price for any Permitted Acquisition
if the Lenders have determined not to provide such Indebtedness or have failed to respond to exercise their right of first refusal
with respect to providing such Indebtedness as set forth in Section 6.17.


 


7.04        Fundamental
Changes  Merge, dissolve, liquidate, consolidate with or into another Person, (or agree to do any of the foregoing),
except that, so long as no Default or Event of Default shall have occurred and be continuing prior to or immediately after giving
effect to any action described below or would result therefrom:


 


(a)          any
Subsidiary (other than an Excluded Subsidiary) which is not a Loan Party may merge with (i) a Loan Party, provided that
the Loan Party shall be the continuing or surviving Person, or (ii) any one or more other Subsidiaries which are not Loan Parties,
provided that when any wholly-owned Subsidiary is merging with another Subsidiary, the wholly-owned Subsidiary shall be
the continuing or surviving Person;


 


(b)          any
Excluded Subsidiary may merge with any other Excluded Subsidiary;


 


(c)          any
Subsidiary which is a Loan Party may merge into any Subsidiary which is a Loan Party or into the Borrower, provided that
in any merger involving the Borrower, the Borrower shall be the continuing or surviving Person; and


 




    	61



    	 



    

 


(d)          in
connection with a Permitted Acquisition, any Subsidiary (other than an Excluded Subsidiary) of a Loan Party may merge with or into
or consolidate with any other Person or permit any other Person to merge with or into or consolidate with it; provided that
(i) the Person surviving such merger shall be a wholly-owned Subsidiary of a Loan Party and such Person shall become a Loan Party
in accordance with the provisions of Section 6.11 hereof, and (ii) in the case of any such merger to which any Loan Party
is a party, such Loan Party is the surviving Person.


 


7.05        Dispositions  
Make any Disposition, except Permitted Dispositions.


 


7.06        Restricted
Payments  Declare or make, directly or indirectly, any Restricted Payment, or incur any obligation (contingent or
otherwise) to do so, except:


 


(a)          each
Subsidiary of a Loan Party may make Restricted Payments to any Loan Party or to another Subsidiary of the Borrower which is the
immediate parent of the Subsidiary making such Restricted Payment;


 


(b)          the
Loan Parties and each Subsidiary may declare and make dividend payments or other distributions payable solely in the common stock
or other common Equity Interests of such Person;


 


(c)          if
the Restricted Payments Conditions are satisfied, the Borrower may declare or pay cash dividends to its stockholders;


 


(d
)          any non-wholly-owned Subsidiary of the Borrower may make Restricted
Payments (which may be in cash) to its shareholders, members or partners generally, so long as the Borrower or its respective Subsidiary
which owns the Equity Interest in the Subsidiary making such Restricted Payment receives at least its proportionate share thereof
(based upon its relative holding of the Equity Interest in the Subsidiary making such Restricted Payment and taking into account
the relative preferences, if any, of the various classes of Equity Interests of such Subsidiary);


 


(e)          the
Borrower may acquire Equity Interests in connection with the exercise of stock options, warrants or other convertible or exchangeable
securities to the extent such Equity Interests represent a portion of the exercise price of those stock options, warrants or other
convertible or exchangeable securities by way of cashless exercise; and


 


(f)          the
Borrower may pay management fees to the extent permitted pursuant to Section 7.09(g) hereof.


 


7.07        Prepayments
of Indebtedness  Prepay, redeem, purchase, defease or otherwise satisfy prior to the scheduled maturity thereof in any
manner any Indebtedness for borrowed money, except (a) (i) as long as no Default or Event of Default then exists, regularly scheduled
or mandatory repayments, repurchases, redemptions or defeasances of Permitted Indebtedness (other than the Second Lien Facility
and Indebtedness of the Borrower under the Securities Purchase Agreement), (ii) regularly scheduled payments under the Second Lien
Facility and, so long as no Default or Event of Default then exists, prepayments and other repurchases, redemptions or defeasances
of the Second Lien Facility, in each case not in violation of the Second Lien Intercreditor Agreement, and (iii) the conversion
to Equity Interests (but not the payment) of Indebtedness under the Securities Purchase Agreement, and (b) Permitted Refinancings
of any such Indebtedness.


 


7.08        Change
in Nature of Business


 


Engage in any line of business substantially different from
the business conducted by the Loan Parties on the Closing Date or any business substantially related or incidental thereto.


 




    	62



    	 



    

 


7.09        Transactions
with Affiliates  Enter into, renew, extend or be a party to any transaction of any kind with any Affiliate of any
Loan Party, whether or not in the ordinary course of business, other than on fair and reasonable terms substantially as favorable
to the Loan Parties or such Subsidiary as would be obtainable by the Loan Parties or such Subsidiary at the time in a comparable
arm’s length transaction with a Person other than an Affiliate, provided that the foregoing restriction shall not
apply to:


 


(a)          a
transaction between or among the Loan Parties;


 


(b)          dividends
may be paid to the extent provided in Section 7.06;


 


(c)          loans
may be made and other transactions may be entered into by the Borrower and its Subsidiaries to the extent permitted by Sections
7.02, 7.03 and 7.04;


 


(d)          customary
fees, indemnities and reimbursements may be paid to non-officer directors of the Borrower and its Subsidiaries;


 


(e)          the
Borrower and its Subsidiaries may enter into, and may make payments under, employment agreements, employee benefits plans, stock
option plans, indemnification provisions and other similar compensatory arrangements with officers, employees and directors of
the Borrower and its Subsidiaries in the ordinary course of business;


 


(f)          Subsidiaries
of the Borrower may pay management fees, licensing fees and similar fees to the Borrower or to any wholly-owned domestic Subsidiary
of the Borrower that is a Guarantor; and


 


(g)          The
Borrower may pay management fees to Tengram Capital Management L.P. in the ordinary course of business and consistent with prior
practices.


 


7.10        Burdensome
Agreements   Enter into or permit to exist any Contractual Obligation (other than this Agreement or any other Loan
Document) that (a) limits the ability (i) of any Subsidiary (other than an Excluded Subsidiary) to make Restricted Payments or
other distributions to any Loan Party or to otherwise transfer property to or invest in a Loan Party, (ii) of any Subsidiary (other
than an Excluded Subsidiary) to Guarantee the Obligations, (iii) of any Subsidiary (other than an Excluded Subsidiary) to make
or repay loans to a Loan Party, or (iv) of the Loan Parties to create, incur, assume or suffer to exist Liens on property of such
Person in favor of the Agent; provided, however, that this clause (iv) shall not prohibit any negative pledge incurred
or provided in favor of any holder of Indebtedness permitted under clauses (c), or (d) of the definition of Permitted Indebtedness
solely to the extent any such negative pledge relates to the property financed by or the subject of such Indebtedness; or (b) requires
the grant of a Lien to secure an obligation of such Person if a Lien is granted to secure another obligation of such Person.


 


7.11        Use
of Proceeds  Use the proceeds of any Credit Extension, whether directly or indirectly, and whether immediately, incidentally
or ultimately, (a) to purchase or carry margin stock (within the meaning of Regulation U of the FRB) or to extend credit to others
for the purpose of purchasing or carrying margin stock or to refund Indebtedness originally incurred for such purpose, or (b) for
any purposes other than (i) the payment of the purchase price and transaction costs in connection with the Brand Matter Acquisition,
(ii) to finance Capital Expenditures of the Loan Parties, and (iii) for general corporate purposes, in each case to the extent
expressly permitted under Law and the Loan Documents.


 





 






1Subject to review of management agreement. Please
forward a copy for our review.


 




    	63



    	 



    

 


7.12        Amendment
of Material Documents; Material Licenses.


 


(a)          Amend,
modify or waive any of a Loan Party’s rights under (i) its Organization Documents in a manner materially adverse to the Credit
Parties, (ii) the Second Lien Credit Agreement or any other documentation relating to the Second Lien Facility that would shorten
the maturity thereof or otherwise, when taken as a whole, be materially adverse to the Credit Parties or in a manner that would
violate the Second Lien Intercreditor Agreement, or (iii) any Material License which would have a material adverse impact on the
Lenders (as reasonably determined by the Agent), without the prior express written consent of the Agent.


 


(b)          Enter
into any new Material Licenses unless such require each such licensee thereunder to pay any fees and other consideration thereunder
into a Blocked Account.


 


7.13        Fiscal
Year.


 


Change the Fiscal Year of any Loan Party, or the accounting
policies or reporting practices of the Loan Parties, except as required by GAAP.


 


7.14        Deposit
Accounts.


 


Open new Deposit Accounts (other than the Excluded Account)
unless the Loan Parties shall have delivered to the Agent appropriate Blocked Account Agreements as required pursuant to Section
6.12 and otherwise satisfactory to the Agent.


 


7.15        Financial
Covenants.


 


(a)          Positive
Net Income. Permit Consolidated Positive Net Income, as calculated on a quarterly basis commencing with the Fiscal Quarter
of the Borrower ending June 30, 2013 to be equal to or less than $0.


 


(b)          Loan
to Value. Permit the outstanding amount of the Obligations to be greater than fifty (50%) percent of the Realizable Orderly
Liquidation Value of registered Trademarks of the Loan Parties, as determined pursuant to the most recent appraisal conducted by
or on behalf of the Agent with respect to such registered Trademarks pursuant to Section 6.10(b).


 


ARTICLE
VIII

EVENTS OF DEFAULT AND REMEDIES 


 


8.01        Events
of Default  Any of the following shall constitute an Event of Default:


 


(a)          Non-Payment.
The Borrower or any other Loan Party fails to pay (i) when and as required to be paid, any amount of principal of any Loan, or
(ii) within three (3) Business Days of any due date therefor, interest on any Loan, any fee due hereunder, or any other amount
payable hereunder or under any other Loan Document; or


 


(b)          Specific
Covenants. Any Loan Party fails to perform or observe any term, covenant or agreement contained in any of (i) Sections 6.03(a),
6.05(a), 6.06(b)(i)(A), 6.17, 6.18 or Article VII, or (ii) Sections 6.01, 6.02,
or 6.03 (other than 6.03(a)) and such failure continues for 10 days, (iii) Section 6.06(b)(i)(B) and (ii) –
(iv) and such failure continues for 10 days or (iv) Sections 6.11 or 6.13 and such failure continues for 15 days;
or


 


(c)          Other
Defaults. Any Loan Party fails to perform or observe any other covenant or agreement (not specified in subsection (a) or (b)
above) contained in any Loan Document on its part to be performed or observed and such failure continues for 30 days; or


 




    	64



    	 



    

 


(d)          Representations
and Warranties. Any representation, warranty, certification or statement of fact made or deemed made by or on behalf of any
Loan Party herein, in any other Loan Document, or in any document delivered in connection herewith or therewith shall be incorrect
or misleading in any material respect when made or deemed made; or


 


(e)          Cross-Default.
Any Loan Party (A) fails to make any payment when due (whether by scheduled maturity, required prepayment, acceleration, demand,
or otherwise) in respect of any Material Indebtedness, or (B) fails to observe or perform any other agreement or condition relating
to any such Material Indebtedness or contained in any instrument or agreement evidencing, securing or relating thereto, or any
other event occurs, the effect of which default or other event is to cause, or to permit the holder or holders of such Material
Indebtedness or the beneficiary or beneficiaries of any Guarantee thereof (or a trustee or agent on behalf of such holder or holders
or beneficiary or beneficiaries) to cause, with the giving of notice if required, such Indebtedness to be demanded or to become
due or to be repurchased, prepaid, defeased or redeemed (automatically or otherwise), or an offer to repurchase, prepay, defease
or redeem such Indebtedness to be made, prior to its stated maturity or such Guarantee to become payable or cash collateral in
respect thereof to be demanded; or


 


(f)          Insolvency
Proceedings, Etc. Any Loan Party institutes or consents to the institution of any proceeding under any Debtor Relief Law, or
makes an assignment for the benefit of creditors; or applies for or consents to the appointment of any receiver, trustee, custodian,
conservator, liquidator, rehabilitator or similar officer for it or for all or any material part of its property; or a proceeding
shall be commenced or a petition filed, without the application or consent of such Person, seeking or requesting the appointment
of any receiver, trustee, custodian, conservator, liquidator, rehabilitator or similar officer is appointed and the appointment
continues undischarged, undismissed or unstayed for 45 calendar days or an order or decree approving or ordering any of the foregoing
shall be entered; or any proceeding under any Debtor Relief Law relating to any such Person or to all or any material part of its
property is instituted without the consent of such Person and continues undismissed or unstayed for 45 calendar days, or an order
for relief is entered in any such proceeding; or


 


(g)          Inability
to Pay Debts; Attachment. (i) Any Loan Party becomes unable or admits in writing its inability or fails generally to pay its
debts as they become due in the ordinary course of business, or (ii) any writ or warrant of attachment or execution or similar
process is issued or levied against all or any material part of the property of any such Person and is not released, vacated or
fully bonded within 30 days after its issuance or levy; or


 


(h)          Judgments.
There is entered against any Loan Party (i) one or more judgments or orders for the payment of money in an aggregate amount (as
to all such judgments and orders) exceeding $5,000,000 (to the extent not covered by independent third-party insurance as to which
the insurer is rated at least “A” by A.M. Best Company, has been notified of the potential claim and does not dispute
coverage), or (ii) any one or more non-monetary judgments that have, or could reasonably be expected to have, individually or in
the aggregate, a Material Adverse Effect and, in either case, (A) enforcement proceedings are commenced by any creditor upon such
judgment or order, or (B) there is a period of 10 consecutive days during which a stay of enforcement of such judgment or order,
by reason of a pending appeal or otherwise, is not in effect; or


 




    	65



    	 



    

 


(i)          ERISA.
(i) An ERISA Event occurs with respect to a Pension Plan or Multiemployer Plan which has resulted or could reasonably be expected
to result in liability of any Loan Party under Title IV of ERISA to the Pension Plan, Multiemployer Plan or the PBGC in an
aggregate amount in excess of $5,000,000 or which would reasonably likely result in a Material Adverse Effect, or (ii) a Loan Party
or any ERISA Affiliate fails to pay when due, after the expiration of any applicable grace period, any installment payment with
respect to its withdrawal liability under Section 4201 of ERISA under a Multiemployer Plan in an aggregate amount in excess of
$5,000,000 or which would reasonably likely result in a Material Adverse Effect; or


 


(j)          Invalidity
of Loan Documents. (i) Any material provision of any Loan Document, at any time after its execution and delivery and for any
reason, ceases to be in full force and effect; or any Loan Party or any other Person contests in any manner the validity or enforceability
of any material provision of any Loan Document; or any Loan Party denies that it has any or further liability or obligation under
any material provision of any Loan Document, or purports to revoke, terminate or rescind any material provision of any Loan Document
or seeks to avoid, limit or otherwise adversely affect any Lien purported to be created under any Security Document; or (ii) any
Lien purported to be created under any Security Document shall cease to be, or shall be asserted by any Loan Party or any other
Person not to be, a valid and perfected Lien on any Material Intellectual Property, Material License or any other material portion
of the Collateral, with the priority required by the applicable Security Document, except to the extent that any lack of perfection
or enforceability results from any act or omission of the Agent (so long as such act or omission does not result from the breach
or non-compliance by a Loan Party with the terms of any Loan Document); or


 


(k)          Change
of Control. There occurs any Change of Control; or


 


(l)          Cessation
of Business. Except as otherwise expressly permitted hereunder and subject to any applicable cure period in connection with
a breach of any applicable covenant with respect to the same, the Loan Parties, taken as a whole, shall take any action to suspend
the operation of their business in the ordinary course or liquidate all or a material portion of their assets or business; or


 


(m)          Breach
of Contractual Obligation. Any default or event of default occurs under a Material License which gives rise to a right of a
party to such Material License to cease payment to, or excuses payment to, the Borrower thereunder, or the termination of any Material
License unless either (i) the Borrower reasonably demonstrates to the Agent, based on good faith and reasonable forecasts, that
the Borrower will remain in pro forma compliance with the provisions of Section 7.15 for a period of twelve months after the occurrence
of such default or termination, or (ii) the Borrower is disputing such default in good faith based on reasonable grounds (as determined
by the Agent in its reasonable discretion), or (iii) the Borrower enters into a substitute Material License and the Borrower reasonably
demonstrates to the Agent, based on good faith and reasonable forecasts, that, after giving effect to such substitute Material
License, the Borrower will remain in pro forma compliance with the provisions of Section 7.15 for a period of twelve months after
the occurrence of such default or termination; or


 




    	66



    	 



    

 


(n)          Indictment.
Any director or senior officer of any Loan Party is (i) criminally indicted or convicted of a felony
for fraud or dishonesty in connection with the Loan Parties’ business, unless such director or senior officer promptly resigns
or is removed or replaced or (ii) charged by a Governmental Authority under any Law that would reasonably be expected to lead to
forfeiture of any material portion of Collateral; or


 


(o)          Insolvency
of Licensee. Any proceeding described in clause (f) above, whether voluntary or involuntary, shall commence with respect any
licensee under a Material License and shall continue for a period of 45 days, unless (i) the applicable licensee shall “assume”
the applicable Material License under applicable bankruptcy law, or (ii) either (A) the Borrower otherwise reasonably demonstrates
to the Agent, based on good faith and reasonable forecasts, that the Borrower will remain in pro forma compliance with the provisions
of Section 7.15 for a period of twelve months after the commencement of such proceeding or (B) the Borrower enters into a substitute
Material License and the Borrower reasonably demonstrates to the Agent, based on good faith and reasonable forecasts, that, after
giving effect to such substitute Material License, the Borrower will remain in pro forma compliance with the provisions of Section
7.15 for a period of twelve months after the occurrence of such default or termination; or


 


(p)          Subordination.
(i) The subordination provisions of the documents evidencing or governing the Second Lien Facility (the “Subordinated
Provisions”) shall, in whole or in part, terminate, cease to be effective or cease to be legally valid, binding and enforceable
against any holder of the Second Lien Facility; or (ii) any Borrower or any other Loan Party shall, directly or indirectly, disavow
or contest in any manner (A) the effectiveness, validity or enforceability of any of the Subordination Provisions, (B) that the
Subordination Provisions exist for the benefit of the Credit Parties, or (C) that all payments of principal of or premium and interest
on the Second Lien Facility, or realized from the liquidation of any property of any Loan Party, shall be subject to any of the
Subordination Provisions.


 


8.02        Remedies
Upon Event of Default. If any Event of Default occurs and is continuing, the Agent may, or, at the request of the
Required Lenders shall, take any or all of the following actions:


 


(a)          declare
the unpaid principal amount of all outstanding Loans, all interest accrued and unpaid thereon, and all other Obligations to be
immediately due and payable, without presentment, demand, protest or other notice of any kind, all of which are hereby expressly
waived by the Loan Parties; and


 


(b)          whether
or not the maturity of the Obligations shall have been accelerated pursuant hereto, proceed to protect, enforce and exercise all
rights and remedies of the Credit Parties under this Agreement, any of the other Loan Documents or Law, including, but not limited
to, by suit in equity, action at law or other appropriate proceeding, whether for the specific performance of any covenant or agreement
contained in this Agreement and the other Loan Documents or any instrument pursuant to which the Obligations are evidenced, and,
if such amount shall have become due, by declaration or otherwise, proceed to enforce the payment thereof or any other legal or
equitable right of the Credit Parties;


 


provided, however, that upon the occurrence of
any Default or Event of Default with respect to any Loan Party under Section 8.01(f), the unpaid principal amount of all
outstanding Loans, all interest accrued thereon and all other Obligations shall automatically become due and payable without further
act of the Agent or any Lender.


 




    	67



    	 



    

 


No remedy herein is intended to be exclusive of any other remedy
and each and every remedy shall be cumulative and shall be in addition to every other remedy given hereunder or now or hereafter
existing at law or in equity or by statute or any other provision of Law.


 


8.03         Application
of Funds.  After the exercise of remedies provided for in Section 8.02 (or after the Obligations have automatically
become immediately due and payable as set forth in the proviso to Section 8.02), any amounts received on account of the
Obligations shall be applied by the Agent in the following order:


 


First, to payment of that portion of the Obligations
(excluding the Other Liabilities) constituting fees, indemnities, Credit Party Expenses and other amounts (including fees, charges
and disbursements of counsel to the Agent and amounts payable under Article III) payable to the Agent;


 


Second, to payment of that portion of the Obligations
(excluding the Other Liabilities) constituting indemnities (including indemnities due under Section 10.04 hereof), Credit Party
Expenses, and other amounts (other than principal, interest and fees) payable to the Lenders (including Credit Party Expenses to
the respective Lenders and amounts payable under Article III), ratably among them in proportion to the amounts described
in this clause Second payable to them;


 


Third, to payment of that portion of the Obligations
constituting accrued and unpaid interest on the Loans, and fees (excluding any Early Termination Fee then owing), ratably among
the Lenders in proportion to the respective amounts described in this clause Third payable to them;


 


Fourth, to payment of that portion of the Obligations
constituting unpaid principal of the Loans, ratably among the Lenders in proportion to the respective amounts described in this
clause Fourth held by them;


 


Fifth, to payment of all other Obligations
(including without limitation the cash collateralization of unliquidated indemnification obligations and the payment of any Early
Termination Fee then owing, but excluding any Other Liabilities), ratably among the Credit Parties in proportion to the respective
amounts described in this clause Fifth held by them;


 


Sixth, to payment of that portion of the Obligations
arising from Cash Management Services, ratably among the Credit Parties in proportion to the respective amounts described in this
clause Sixth held by them;


 


Seventh, to payment of all other Obligations
arising from Bank Products, ratably among the Credit Parties in proportion to the respective amounts described in this clause Seventh
held by them; and


 


Last, the balance, if any, after all of the
Obligations have been indefeasibly paid in full, to the Loan Parties or as otherwise required by Law.


 


Excluded Swap Obligations with respect to any Loan
Party shall not be paid with amounts received from such Loan Party, but appropriate adjustments shall be made with respect to payments
from other Loan Parties to preserve the allocation to Obligations otherwise set forth above in this Section.


 




    	68



    	 



    

 


8.04        Right
to Cure.


 


(a)          Notwithstanding
anything to the contrary contained in Section 8.01, in the event of any Event of Default under the financial covenant set forth
in Section 7.15(b) and until the expiration of the fifteenth (15th) calendar day thereafter (such date, the “Cure
Expiration Date”), the Borrower may designate any portion of the Net Proceeds of any issuance of common Equity Interests
of the Borrower or any cash capital contribution to the common equity of the Borrower, or any cash on hand of the Borrower, as
a prepayment of the Loans in an amount equal to the amount by which the outstanding amount of the Obligations exceeds fifty (50%)
percent of the Realizable Orderly Liquidation Value of registered Trademarks of the Loan Parties, as
determined pursuant to the most recent appraisal conducted by or on behalf of the Agent with respect to such registered Trademarks
pursuant to Section 6.10(b).


 


(b)          If,
after giving effect to the foregoing prepayment of the Loans, the Borrower shall then be in compliance with the requirements of
Section 7.15(b), the Borrower shall be deemed to have satisfied the requirements of Section 7.15(b) as of the relevant date of
determination with the same effect as though there had been no failure to comply therewith at such date, and the applicable existing
breach or default of Section 7.15(b) shall be deemed cured for this purpose of the Agreement.


 


ARTICLE
IX

THE AGENT


 


9.01        Appointment
and Authority.


 


Each of the Lenders (in its capacity as a
Lender) hereby irrevocably appoints Bank of America to act on its behalf as the administrative agent and collateral agent hereunder
and under the other Loan Documents and authorizes the Agent to take such actions on its behalf and to exercise such powers as are
delegated to the Agent by the terms hereof or thereof (including, without limitation, acquiring, holding and enforcing any and
all Liens on Collateral granted by any of the Loan Parties to secure any of the Obligations), together with such actions and powers
as are reasonably incidental thereto. The provisions of this Article are solely for the benefit of the Agent and the other Credit
Parties, and no Loan Party or any Subsidiary thereof shall have rights as a third party beneficiary of any of such provisions.
It is understood and agreed that the use of the term “agent” herein or in any other Loan Documents (or any other similar
term) with reference to the 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 as a matter of market custom, and is intended to create or reflect
only an administrative relationship between contracting parties.


 


 


9.02        Rights
as a Lender. The Person serving as the Agent hereunder shall have the same rights and powers in its capacity as a Lender as
any other Lender and may exercise the same as though it were not the Agent and the term “Lender” or “Lenders”
shall, unless otherwise expressly indicated or unless the context otherwise requires, include the Person serving as the Agent hereunder
in its individual capacity. Such Person and its Affiliates may accept deposits from, lend money to, act as the financial advisor
or in any other advisory capacity for and generally engage in any kind of business with the Loan Parties or any Subsidiary or other
Affiliate thereof as if such Person were not the Agent hereunder and without any duty to account therefor to the Lenders.


 


9.03        Exculpatory
Provisions. The Agent shall not have any duties or obligations except those expressly set forth herein and in the other Loan
Documents. Without limiting the generality of the foregoing, the Agent:


 


(a)          shall
not be subject to any fiduciary or other implied duties, regardless of whether a Default or Event of Default has occurred and is
continuing;


 




    	69



    	 



    

 


(b)          shall
not have any duty to take any discretionary action or exercise any discretionary powers, except discretionary rights and powers
expressly contemplated hereby or by the other Loan Documents that the Agent is required to exercise as directed in writing by the
Applicable Lenders, provided that the Agent shall not be required to take any action that, in its opinion or the opinion
of its counsel, may expose the Agent to liability or that is contrary to any Loan Document or Law, including for the avoidance
of doubt any action that may be in violation of the automatic stay under any Debtor Relief Law; and


 


(c)          shall
not, except as expressly set forth herein and in the other Loan Documents, have any duty to disclose, and shall not be liable for
the failure to disclose, any information relating to the Loan Parties or any of its Affiliates that is communicated to or obtained
by the Person serving as the Agent or any of its Affiliates in any capacity.


 


The Agent shall not be liable for any action taken or not taken
by it (i) with the Consent or at the request of the Applicable Lenders (as the Agent shall believe in good faith shall be necessary
under the circumstances as provided in Sections 10.01 and 8.02) or (ii) in the absence of its own gross negligence
or willful misconduct as determined by a final and non-appealable judgment of a court of competent jurisdiction.


 


The Agent shall not be deemed to have knowledge of any Default
or Event of Default unless and until notice describing such Default or Event of Default is given to the Agent by the Loan Parties
or a Lender. In the event that the Agent obtains such actual knowledge or receives such a notice, the
Agent shall give prompt notice thereof to each of the other Credit Parties. Upon the occurrence of a Default or an Event of Default,
the Agent shall take such action with respect to such Default or Event of Default as shall be reasonably directed by the Applicable
Lenders. Unless and until the Agent shall have received such direction, the Agent may (but shall not be obligated to) take such
action, or refrain from taking such action, with respect to any such Default or Event of Default as it shall deem advisable in
the best interest of the Credit Parties. In no event shall the Agent be required to comply with any such directions to the extent
that the Agent believes that its compliance with such directions would be unlawful.


 


The Agent shall not be responsible for or have any duty to ascertain
or inquire into (i) any statement, warranty or representation made in or in connection with this Agreement or any other Loan Document,
(ii) the contents of any certificate, report or other document delivered hereunder or thereunder or in connection herewith or therewith,
(iii) the performance or observance of any of the covenants, agreements or other terms or conditions set forth herein or therein
or the occurrence of any Default or Event of Default, (iv) the validity, enforceability, effectiveness or genuineness of this Agreement,
any other Loan Document or any other agreement, instrument or document or the creation, perfection or priority of any Lien purported
to be created by the Security Documents, (v) the value or the sufficiency of any Collateral, or (vi) the satisfaction of any condition
set forth in Article IV or elsewhere herein, other than to confirm receipt of items expressly required to be delivered to the Agent.


 


9.04        Reliance by Agent.


 


The Agent shall be entitled to rely upon, and shall not incur
any liability for relying upon, any notice, request, certificate, consent, statement, instrument, document or other writing (including,
but not limited to, any electronic message, Internet or intranet website posting or other distribution) believed by it to be genuine
and to have been signed, sent or otherwise authenticated by the proper Person. The Agent also may rely upon any statement made
to it orally or by telephone and believed by it to have been made by the proper Person, and shall not incur any liability for relying
thereon. The Agent may consult with legal counsel (who may be counsel for any Loan Party), independent accountants and other experts
selected by it, and shall not be liable for any action taken or not taken by it in accordance with the advice of any such counsel,
accountants or experts.


 




    	70



    	 



    

 


9.05        Delegation
of Duties. The Agent may perform any and all of its duties and exercise its rights and powers hereunder or under any other
Loan Document by or through any one or more sub-agents appointed by the Agent. The Agent and any such sub-agent may perform any
and all of its duties and exercise its rights and powers by or through their respective Related Parties. The exculpatory provisions
of this Article shall apply to any such sub-agent and to the Related Parties of the Agent and any such sub-agent. The Agent shall
not be responsible for the negligence or misconduct of any sub-agents except to the extent that a court of competent jurisdiction
determines in a final and non-appealable judgment that the Agent acted with gross negligence or willful misconduct in the selection
of such sub-agents.


 


9.06        Resignation
of Agent. The Agent may at any time give written notice of its resignation to the Lenders and the Borrower. Upon receipt of
any such notice of resignation, the Required Lenders shall have the right, in consultation with the Borrower, to appoint a successor,
which shall be a bank with an office in the United States, or an Affiliate of any such bank with an office in the United States.
If no such successor shall have been so appointed by the Required Lenders and shall have accepted such appointment within 30 days
after the retiring Agent gives notice of its resignation, then the retiring Agent may on behalf of the Lenders appoint a successor
Agent meeting the qualifications set forth above; provided that if the Agent shall notify the Borrower and the Lenders that
no qualifying Person has accepted such appointment, then such resignation shall nonetheless become effective in accordance with
such notice and (1) the retiring Agent shall be discharged from its duties and obligations hereunder and under the other Loan
Documents (except that in the case of any Collateral held by the Agent on behalf of the Lenders under any of the Loan Documents,
the retiring Agent shall continue to hold such collateral security until such time as a successor Agent is appointed) and (2) all
payments, communications and determinations provided to be made by, to or through the Agent shall instead be made by or to each
Lender directly, until such time as the Required Lenders appoint a successor Agent as provided for above in this Section. Upon
the acceptance of a successor’s appointment as Agent hereunder, such successor shall succeed to and become vested with all
of the rights, powers, privileges and duties of the retiring (or retired) Agent, and the retiring Agent shall be discharged from
all of its duties and obligations hereunder or under the other Loan Documents (if not already discharged therefrom as provided
above in this Section). The fees payable by the Borrower to a successor Agent shall be the same as those payable to its predecessor
unless otherwise agreed between the Borrower and such successor. After the retiring Agent’s resignation hereunder and under
the other Loan Documents, the provisions of this Article and Section 10.04 shall continue in effect for the benefit
of such retiring Agent, its sub-agents and their respective Related Parties in respect of any actions taken or omitted to be taken
by any of them while the retiring Agent was acting as Agent hereunder.


 




    	71



    	 



    

 


9.07        Non-Reliance
on Agent and Other Lenders.  Each Lender acknowledges that it has, independently and without reliance upon the Agent or any
other Lender or any of their Related Parties and based on such documents and information as it has deemed appropriate, made its
own credit analysis and decision to enter into this Agreement. Each Lender also acknowledges that it will, independently and without
reliance upon the Agent or any other Lender or any of their Related Parties and based on such documents and information as it shall
from time to time deem appropriate, continue to make its own decisions in taking or not taking action under or based upon this
Agreement, any other Loan Document or any related agreement or any document furnished hereunder or thereunder. Except as provided
in Section 9.11, the Agent shall not have any duty or responsibility to provide any Credit Party with any other credit or
other information concerning the affairs, financial condition or business of any Loan Party that may come into the possession of
the Agent.


 


9.08        Agent
May File Proofs of Claim.  In case of the pendency of any proceeding under any Debtor Relief Law or any other judicial proceeding
relative to any Loan Party, the Agent (irrespective of whether the principal of the Loans shall then be due and payable as herein
expressed or by declaration or otherwise and irrespective of whether the Agent shall have made any demand on the Loan Parties)
shall be entitled and empowered, by intervention in such proceeding or otherwise


 


(a)          to
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, the Agent and the other Credit Parties (including any claim for the reasonable compensation, expenses, disbursements
and advances of the Lenders, the Agent, such Credit Parties and their respective agents and counsel and all other amounts due the
Lenders, the Agent and such Credit Parties under Sections 2.06 and 10.04) allowed in such judicial proceeding; and


 


(b)          to
collect and receive any monies or other property payable or deliverable on any such claims and to distribute the same;


 


and 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 Agent and to pay to the Agent any amount due for the reasonable compensation, expenses, disbursements and advances of the
Agent and its agents and counsel, and any other amounts due the Agent under Sections 2.06 and 10.04.


Nothing contained herein shall be deemed to authorize the Agent
to authorize or consent to or accept or adopt on behalf of any Credit Party any plan of reorganization, arrangement, adjustment
or composition affecting the Obligations or the rights of any Credit Party or to authorize the Agent to vote in respect of the
claim of any Credit Party in any such proceeding.


 


9.09
       Collateral and Guaranty Matters.   The Credit Parties irrevocably authorize the Agent, at its option and in its
discretion,


 


(a)          to
release any Lien on any property granted to or held by the Agent under any Loan Document (i) upon payment in full of all Obligations
(other than contingent indemnification obligations for which no claim has been asserted), (ii) that is sold or to be sold as part
of or in connection with any sale permitted hereunder or under any other Loan Document, or (iii) if approved, authorized or ratified
in writing by the Applicable Lenders in accordance with Section 10.01;


 


(b)          to
subordinate any Lien on any property granted to or held by the Agent under any Loan Document to the holder of any Lien on such
property that is permitted by clause (h) of the definition of Permitted Encumbrances; and


 


(c)          to
release any Guarantor from its obligations under the Facility Guaranty if such Person ceases to be a Subsidiary as a result of
a transaction permitted hereunder.


 




    	72



    	 



    

 


Upon request by the Agent at any time, the Applicable Lenders
will confirm in writing the Agent’s authority to release or subordinate its interest in particular types or items of property,
or to release any Guarantor from its obligations under the Facility Guaranty pursuant to this Section 9.09. In each case
as specified in this Section 9.09, the Agent will, at the Loan Parties’ expense, execute and deliver to the applicable
Loan Party such documents as such Loan Party may reasonably request to evidence the release of such item of Collateral from the
assignment and security interest granted under the Security Documents or to subordinate its interest in such item, or to release
such Guarantor from its obligations under the Facility Guaranty, in each case in accordance with the terms of the Loan Documents
and this Section 9.09.


 


9.10        Notice
of Transfer.


 


The Agent may deem and treat a Lender party to this Agreement
as the owner of such Lender’s portion of the Obligations for all purposes, unless and until, and except to the extent, an
Assignment and Acceptance shall have become effective as set forth in Section 10.06.


 


9.11        Reports
and Financial Statements.


 


By signing this Agreement, each Lender:


 


(a)          agrees
to furnish the Agent at such frequency as the Agent may reasonably request) with a summary of all Other Liabilities due or to become
due to such Lender. In connection with any distributions to be made hereunder, the Agent shall be entitled to assume that no amounts
are due to any Lender on account of Other Liabilities unless the Agent has received written notice thereof from such Lender and
if such notice is received, the Agent shall be entitled to assume that the only amounts due to such Lender on account of Other
Liabilities is the amount set forth in such notice;


 


(b)          is
deemed to have requested that the Agent furnish, and the Agent agrees to furnish, such Lender, promptly after they become available,
copies of all financial statements required to be delivered by the Borrower hereunder;


 


(c)          is
deemed to have requested that the Agent furnish, and the Agent agrees to furnish, such Lender, promptly after they become available,
copies of all appraisals of the Collateral received by the Agent (collectively, the “Reports”);


 


(d)          expressly
agrees and acknowledges that the Agent makes no representation or warranty as to the accuracy of the financial statements or Reports,
and shall not be liable for any information contained in any financial statement or Report;


 


(e)          expressly
agrees and acknowledges that the Reports are not comprehensive audits or examinations, that the Agent or any other party performing
any audit or examination will inspect only specific information regarding the Loan Parties and will rely significantly upon the
Loan Parties' books and records, as well as on representations of the Loan Parties' personnel;


 


(f)          agrees
to keep all financial statements and Reports confidential in accordance with the provisions of Section 10.07 hereof; and


 


(g)          without
limiting the generality of any other indemnification provision contained in this Agreement, agrees: (i) to hold the Agent and any
such other Lender preparing a Report harmless from any action the indemnifying Lender may take or conclusion the indemnifying Lender
may reach or draw from any Report in connection with any Credit Extensions that the indemnifying Lender has made or may make to
the Borrower, or the indemnifying Lender's participation in, or the indemnifying Lender's purchase of, the Loans; and (ii) to pay
and protect, and indemnify, defend, and hold the Agent and any such other Lender preparing a Report harmless from and against,
the claims, actions, proceedings, damages, costs, expenses, and other amounts (including attorney costs) incurred by the Agent
and any such other Lender preparing a Report as the direct or indirect result of any third parties who might obtain all or part
of any Report through the indemnifying Lender.


 




    	73



    	 



    

 


9.12
        Agency for Perfection.


 


Each Credit Party hereby appoints each other Credit Party as
agent for the purpose of perfecting Liens for the benefit of the Credit Parties, in assets which, in accordance with Article 9
of the UCC or any other Law of the United States can be perfected only by possession or control. Should any Credit Party (other
than the Agent) obtain possession or control of any such Collateral, such Credit Party shall notify the Agent thereof, and, promptly
upon the Agent's request therefor shall deliver such Collateral to the Agent or otherwise deal with such Collateral in accordance
with the Agent's instructions.


 


9.13         Indemnification
of Agent.  Without limiting the obligations of Loan Parties hereunder, to the extent that the Loan Parties for any reason fails
to indefeasibly pay any amount required under Section 10.04 to be paid by them to the Agent (or any sub-agent thereof),
the Lenders shall indemnify the Agent, any sub-agent thereof and any Related Party, as the case may be ratably according to their
Applicable Percentages, from and against any and all liabilities, obligations, losses, damages, penalties, actions, judgments,
suits, costs, expenses or disbursements of any kind or nature whatsoever that may be imposed on, incurred by, or asserted against
the Agent, any sub-agent thereof and their Related Parties in any way relating to or arising out of this Agreement or any other
Loan Document or any action taken or omitted to be taken by the Agent, any sub-agent thereof and their Related Parties in connection
therewith; provided, that no Lender shall be liable for any portion of such liabilities, obligations, losses, damages, penalties,
actions, judgments, suits, costs, expenses or disbursements resulting from the Agent’s, any sub-agent’s and their Related
Parties’ gross negligence or willful misconduct as determined by a final and nonappealable judgment of a court of competent
jurisdiction.


 


9.14         Relation
among Lenders.  The Lenders are not partners or co-venturers, and no Lender shall be liable for the acts or omissions of, or
(except as otherwise set forth herein in case of the Agent) authorized to act for, any other Lender.


 


ARTICLE
X

MISCELLANEOUS


 


10.01       Amendments,
Etc.   No amendment or waiver of any provision of this Agreement or any other Loan
Document, and no Consent to any departure by any Loan Party therefrom, shall be effective unless in writing signed by the Agent,
with the Consent of the Required Lenders, and the Borrower or the applicable Loan Party, as the case may be, and each such waiver
or Consent shall be effective only in the specific instance and for the specific purpose for which given; provided, however,
that no such amendment, waiver or consent shall:


 


(i)          as
to any Lender, postpone any date fixed by this Agreement or any other Loan Document for any scheduled payment (including the Maturity
Date) or mandatory prepayment of principal, interest, fees or other amounts due hereunder or under any of the other Loan Documents
without the written Consent of such Lender,


 


(ii)         as
to any Lender, reduce the principal of, or the rate of interest specified herein on, any Loan held by such Lender, or (subject
to clause (ii) of the second proviso to this Section 10.01) any fees or other amounts payable hereunder or under any other
Loan Document to or for the account of such Lender, without the written Consent of such Lender; provided, however,
that only the Consent of the Required Lenders shall be necessary to amend the definition of “Default Rate” or to waive
any obligation of the Borrower to pay interest at the Default Rate;


 




    	74



    	 



    





 


(iii)        as
to any Lender, change Section 2.10 or Section 8.03 in a manner that would alter the pro rata sharing of payments
required thereby without the written Consent of such Lender;


 


(iv)         change
any provision of this Section or the definition of “Required Lenders”, or any other provision hereof specifying the
number or percentage of Lenders required to amend, waive or otherwise modify any rights hereunder or make any determination or
grant any consent hereunder, without the written Consent of each Lender;


 


(v)          except
as expressly permitted hereunder or under any other Loan Document, release, or limit the liability of, any Loan Party without the
written Consent of each Lender;


 


(vi)         except
for Permitted Dispositions or as provided in Section 9.09, release all or substantially all of the Collateral from the Liens
of the Security Documents without the written Consent of each Lender; and


 


(vii)        except
as expressly permitted herein or in any other Loan Document, subordinate the Obligations hereunder or the Liens granted hereunder
or under the other Loan Documents, to any other Indebtedness or Lien, as the case may be without the written Consent of each Lender;


 


and, provided further, that (i) no amendment,
waiver or Consent shall, unless in writing and signed by the Agent in addition to the Lenders required above, affect the rights
or duties of any Agent under this Agreement or any other Loan Document; and (ii) the Fee Letter may be amended, or rights or privileges
thereunder waived, in a writing executed only by the parties thereto.


(b)          Notwithstanding
anything to the contrary in this Agreement or any other Loan Document, (x) no provider or holder of any Bank Products or Cash Management
Services shall have any voting or approval rights hereunder (or be deemed a Lender) solely by virtue of its status as the provider
or holder of such agreements or products or the Obligations owing thereunder, nor shall the consent of any such provider or holder
be required (other than in their capacities as Lenders, to the extent applicable) for any matter hereunder or under any of the
other Loan Documents, including as to any matter relating to the Collateral or the release of Collateral or any Loan Party, and
(y) any Loan Document may be amended and waived with the consent of the Agent at the request of the Borrower without the need to
obtain the consent of any other Lender if such amendment or waiver is delivered in order (i) to comply with local Law or advice
of local counsel, (ii) to cure ambiguities or defects or (iii) to cause any Loan Document to be consistent with this
Agreement and the other Loan Documents.


 


(c)          If
any Lender does not Consent (a “Non-Consenting Lender”) to a proposed amendment, waiver, consent or release
with respect to any Loan Document that requires the Consent of each Lender and that has been approved by the Required Lenders,
the Borrower may replace such Non-Consenting Lender in accordance with Section 10.13; provided that such amendment,
waiver, consent or release can be effected as a result of the assignment contemplated by such Section (together with all other
such assignments required by the Borrower to be made pursuant to this paragraph).


 




    	75



    	 



    

 


(d)          Notwithstanding
any provision herein to the contrary, this Agreement may be amended with the written consent of the Required Lenders, the Agent
and the Borrower (i) to add one or more additional term loan facilities to this Agreement, and to permit the extensions of credit
and all related obligations and liabilities arising in connection therewith from time to time outstanding to share ratably (or
on a basis subordinated to the existing facilities hereunder) in the benefits of this Agreement and the other Loan Documents with
the obligations and liabilities from time to time outstanding in respect of the existing facilities hereunder, and (ii) in connection
with the foregoing, to permit, as deemed appropriate by the Agent and approved by the Lenders, the Lenders providing such additional
credit facilities to participate in any required vote or action required to be approved by the Required Lenders or by any other
number, percentage or class of Lenders hereunder.


 


10.02      Notices;
Effectiveness; Electronic Communications. 


 


(a)          Notices
Generally. Except in the case of notices and other communications expressly permitted to be given by telephone (and except
as provided in subsection (b) below), all notices and other communications provided for herein shall be in writing and shall be
delivered by hand or overnight courier service, mailed by certified or registered mail or sent by telecopier as follows, and all
notices and other communications expressly permitted hereunder to be given by telephone shall be made to the applicable telephone
number, as follows:


 


(i)          if
to the Loan Parties or the Agent, to the address, telecopier number, electronic mail address or telephone number specified for
such Person on Schedule 10.02; and


 


(ii)         if
to any other Lender, to the address, telecopier number, electronic mail address or telephone number specified in writing to the
Borrower and the Agent.


 


Notices and other communications sent by hand or overnight courier
service, or mailed by certified or registered mail, shall be deemed to have been given when received; notices and other communications
sent by facsimile shall be deemed to have been given when sent (except that, if not given during normal business hours for the
recipient, shall be deemed to have been given at the opening of business on the next Business Day for the recipient). Notices and
other communications delivered through electronic communications to the extent provided in subsection (b) below, shall be effective
as provided in such subsection (b).


 


(b)          Electronic
Communications. Notices and other communications to the Lender hereunder may be delivered or furnished by electronic communication
(including e-mail and Internet or intranet websites) pursuant to procedures approved by the Agent. The Agent or the Borrower may,
in its discretion, agree to accept notices and other communications to it hereunder by electronic communications pursuant to procedures
approved by it, provided that approval of such procedures may be limited to particular notices or communications.


 


Unless the Agent otherwise prescribes, (i) notices and other
communications sent to an e-mail address shall be deemed received upon the sender’s receipt of an acknowledgement from the
intended recipient (such as by the “return receipt requested” function, as available, return e-mail or other written
acknowledgement), and (ii) notices or communications posted to an Internet or intranet website shall be deemed received upon the
deemed receipt by the intended recipient at its e-mail address as described in the foregoing clause (i) of notification that such
notice or communication is available and identifying the website address therefor; provided that, for both clauses (i) and (ii),
if such notice, email or other communication is not sent during the normal business hours of the recipient, such notice, email
or communication shall be deemed to have been sent at the opening of business on the next business day for the recipient.


 




    	76



    	 



    

 


(c)          Change
of Address, Etc. Each of the Loan Parties and the Agent may change its address, telecopier or telephone number for notices
and other communications hereunder by notice to the other parties hereto. Each other Lender may change its address, telecopier
or telephone number for notices and other communications hereunder by notice to the Borrower and the Agent. In addition, each Lender
agrees to notify the Agent from time to time to ensure that the Agent has on record (i) an effective address, contact name, telephone
number, telecopier number and electronic mail address to which notices and other communications may be sent and (ii) accurate wire
instructions for such Lender.


 


(d)          Reliance
by Agent and Lenders. The Agent and the Lenders shall be entitled to rely and act upon any notices purportedly given by or
on behalf of the Loan Parties even if (i) such notices were not made in a manner specified herein, were incomplete or were not
preceded or followed by any other form of notice specified herein, or (ii) the terms thereof, as understood by the recipient, varied
from any confirmation thereof. The Loan Parties shall indemnify the Agent, each Lender and the Related Parties of each of them
from all losses, costs, expenses and liabilities resulting from the reliance by such Person on each notice purportedly given by
or on behalf of the Loan Parties. All telephonic notices to and other telephonic communications with the Agent may be recorded
by the Agent, and each of the parties hereto hereby consents to such recording.


 


10.03      No
Waiver; Cumulative Remedies. No failure by any Credit Party to exercise, and no delay by any
such Person in exercising, any right, remedy, power or privilege hereunder shall operate as a waiver thereof; nor shall any single
or partial exercise of any right, remedy, power or privilege hereunder or under any other Loan Document preclude any other or further
exercise thereof or the exercise of any other right, remedy, power or privilege. The rights, remedies, powers and privileges provided
herein and in the other Loan Documents are cumulative and not exclusive of any rights, remedies, powers and privileges provided
by Law. Without limiting the generality of the foregoing, the making of the Loans shall not be construed as a waiver of any Default
or Event of Default, regardless of whether any Credit Party may have had notice or knowledge of such Default or Event of Default
at the time.


 


Notwithstanding anything to the contrary contained herein or
in any other Loan Document, the authority to enforce rights and remedies hereunder and under the other Loan Documents against the
Loan Parties or any of them shall be vested exclusively in, and all actions and proceedings at Law in connection with such enforcement
shall be instituted and maintained exclusively by, the Agent in accordance with Section 8.02 for the benefit of all the
Lenders; provided, however, that the foregoing shall not prohibit (a) the Agent from exercising on its own behalf
the rights and remedies that inure to its benefit (solely in its capacity as Agent) hereunder and under the other Loan Documents,
or (b) any Lender from exercising setoff rights in accordance with Section 10.08 (subject to the terms of Section 2.10);
and provided, further, that if at any time there is no Person acting as Agent hereunder and under the other Loan
Documents, then (i) the Required Lenders shall have the rights otherwise ascribed to the Agent pursuant to Section 8.02
and (ii) in addition to the matters set forth in clause (b) of the preceding proviso and subject to Section 2.10,
any Lender may, with the consent of the Required Lenders, enforce any rights and remedies available to it and
as authorized by the Required Lenders.


 




    	77



    	 



    

 


10.04      Expenses;
Indemnity; Damage Waiver. 


 


(a)          Costs
and Expenses. The Borrower shall pay all Credit Party Expenses.


 


(b)          Indemnification
by the Loan Parties. The Loan Parties shall indemnify the Agent (and any sub-agent thereof), each other Credit Party, and each
Related Party of any of the foregoing Persons (each such Person being called an “Indemnitee”) against, and hold
each Indemnitee harmless (on an after tax basis) from, any and all losses, claims, causes of action, damages, liabilities, settlement
payments, costs, and related expenses (including the reasonable fees, charges and disbursements of any one counsel for the Indemnitees
(and in the event of an actual conflict of interest, one additional counsel for such affected parties) and one additional counsel
in each other applicable jurisdiction), incurred by any Indemnitee or asserted against any Indemnitee by any third party or by
any Borrower or any other Loan Party arising out of, in connection with, or as a result of (i) the execution or delivery of this
Agreement, any other Loan Document or any agreement or instrument contemplated hereby or thereby, the performance by the parties
hereto of their respective obligations hereunder or thereunder, the consummation of the transactions contemplated hereby or thereby,
or the administration of this Agreement and the other Loan Documents, (ii) any Loan or the use or proposed use of the proceeds
therefrom, (iii) any actual or alleged presence or release of Hazardous Materials on or from any property owned or operated
by any Loan Party, or any Environmental Liability related in any way to any Loan Party, (iv) any claims of, or amounts paid by
any Credit Party to, a Blocked Account Bank or other Person which has entered into a control agreement with any Credit Party hereunder,
or (v) any actual or prospective claim, litigation, investigation or proceeding relating to any of the foregoing, whether based
on contract, tort or any other theory, whether brought by a third party or by any Borrower or any other Loan Party or any of the
Loan Parties’ directors, shareholders or creditors, and regardless of whether any Indemnitee is a party thereto; provided
that such indemnity shall not, as to any Indemnitee, be available to the extent that such losses, claims, damages, liabilities
or related expenses (x) are determined by a court of competent jurisdiction by final and non-appealable judgment to have resulted
from the bad faith, gross negligence or willful misconduct of, or material breach of the obligations under this Agreement of, such
Indemnitee, or (y) are due to disputes between and among Indemnitees (other than disputes involving any act or omission of the
Borrower or any of its Affiliates (other than the claims of the Agent)). Without limiting the provisions of Section 3.01(c),
this Section 10.04(b) shall not apply with respect to Taxes other than any Taxes that represent losses, claims, damages,
etc. arising from any non-Tax claim.


 


(c)          Waiver
of Consequential Damages, Etc. To the fullest extent permitted by Law, the Loan Parties shall not assert, and hereby waive,
any claim against any Indemnitee, on any theory of liability, for special, indirect, consequential or punitive damages (as opposed
to direct or actual damages) arising out of, in connection with, or as a result of, this Agreement, any other Loan Document or
any agreement or instrument contemplated hereby, the transactions contemplated hereby or thereby, the Loans or the use of the proceeds
thereof.


 


(d)          Payments.
All amounts due under this Section shall be payable on demand therefor.


 


(e)          Limitation
of Liability. No Indemnitee shall be liable for any damages arising from the use by unintended recipients of any information
or other materials distributed to such unintended recipients by such Indemnitee through telecommunications, electronic or other
information transmission systems in connection with this Agreement or the other Loan Documents or the transactions contemplated
hereby or thereby other than for direct or actual damages resulting from the gross negligence or willful misconduct of such Indemnitee
as determined by a final and nonappealable judgment of a court of competent jurisdiction.


 




    	78



    	 



    

 


(f)          Survival.
The agreements in this Section shall survive the resignation of the Agent, the assignment of the Loans by any Lender, the replacement
of any Lender and the repayment, satisfaction or discharge of all the other Obligations.


 


10.05      Payments
Set Aside. To the extent that
any payment by or on behalf of the Loan Parties is made to any Credit Party, or any Credit Party exercises its right of setoff,
and such payment or the proceeds of such setoff or any part thereof is subsequently invalidated, declared to be fraudulent or
preferential, set aside or required (including pursuant to any settlement entered into by such Credit Party in its discretion)
to be repaid to a trustee, receiver or any other party, in connection with any proceeding under any Debtor Relief Law or otherwise,
then (a) to the extent of such recovery, the obligation or part thereof originally intended to be satisfied shall be revived and
continued in full force and effect as if such payment had not been made or such setoff had not occurred, and (b) each Lender severally
agrees to pay to the Agent upon demand its Applicable Percentage (without duplication) of any amount so recovered from or repaid
by the Agent, plus interest thereon from the date of such demand to the date such payment is made at a rate per annum equal to
the Federal Funds Rate from time to time in effect. The obligations of the Lenders under clause (b) of the preceding sentence
shall survive the payment in full of the Obligations and the termination of this Agreement.


  


10.06      Successors
and Assigns.


 


(a)          Successors
and Assigns Generally. The provisions of this Agreement shall be binding upon and inure to the benefit of the parties hereto
and their respective successors and assigns permitted hereby, except that no Loan Party may assign or otherwise transfer any of
its rights or obligations hereunder or under any other Loan Document without the prior written Consent of the Agent and each Lender
and no Lender may assign or otherwise transfer any of its rights or obligations hereunder except (i) to an Eligible Assignee in
accordance with the provisions of Section 10.06(b), (ii) by way of participation in accordance with the provisions of subsection
Section 10.06(d), or (iii) by way of pledge or assignment of a security interest subject to the restrictions of Section 10.06(f)
(and any other attempted assignment or transfer by any party hereto shall be null and void). Nothing in this Agreement, expressed
or implied, shall be construed to confer upon any Person (other than the parties hereto, their respective successors and assigns
permitted hereby, Participants to the extent provided in subsection (d) of this Section and, to the extent expressly contemplated
hereby, the Related Parties of each of the Credit Parties) any legal or equitable right, remedy or claim under or by reason of
this Agreement.


 


(b)          Assignments
by Lenders. Any Lender may at any time assign to one or more Eligible Assignees all or a portion of its rights and obligations
under this Agreement (including all or a portion of the Loans at the time owing to it); provided that any such assignment
shall be subject to the following conditions:


 


(i)           Minimum
Amounts.


 


(A)         in
the case of an assignment of the entire remaining amount of the assigning Lender's Loans at the time owing to it or in the case
of an assignment to a Lender or an Affiliate of a Lender or an Approved Fund with respect to a Lender, no minimum amount need be
assigned; and


 


(B)         in
any case not described in subsection (b)(i)(A)of this Section, the principal outstanding balance of the Loans of the assigning
Lender subject to each such assignment, determined as of the date the Assignment and Assumption with respect to such assignment
is delivered to the Agent or, if “Trade Date” is specified in the Assignment and Assumption, as of the Trade Date,
shall not be less than $1,000,000 unless each of the Agent and, so long as no Default or Event of Default has occurred and is continuing,
the Borrower otherwise consents (each such consent not to be unreasonably withheld or delayed); provided, however,
that concurrent assignments to members of an Assignee Group and concurrent assignments from members of an Assignee Group to a single
Eligible Assignee (or to an Eligible Assignee and members of its Assignee Group) will be treated as a single assignment for purposes
of determining whether such minimum amount has been met;


 




    	79



    	 



    

 


(ii)         Proportionate
Amounts. Each partial assignment shall be made as an assignment of a proportionate part of all the assigning Lender's rights
and obligations under this Agreement with respect to the Loans assigned;


 


(iii)        Required
Consents. No consent shall be required for any assignment except to the extent required by subsection (b)(i)(B) of this Section
and, in addition:


 


(A)         the
consent of the Borrower (such consent not to be unreasonably withheld or delayed) shall be required unless (1) a Default or Event
of Default has occurred and is continuing at the time of such assignment or (2) such assignment is to a Lender, an Affiliate of
a Lender or an Approved Fund with respect to such Lender, and shall be deemed to have been given unless the Borrower has responded
within five (5) Business Days of request therefor; and


 


(B)         the
consent of the Agent (such consent not to be unreasonably withheld or delayed) shall be required for assignments if such assignment
is to a Person that is not a Lender, an Affiliate of such Lender or an Approved Fund with respect to such Lender; and


 


(iv)         Assignment
and Assumption. The parties to each assignment shall execute and deliver to the Agent an Assignment and Assumption, together
with a processing and recordation fee of $3,500, provided, however, that the Agent may, in its sole discretion, elect
to waive such processing and recordation fee in the case of any assignment.


 


(v)          No
Assignment to Certain Persons. No such assignment shall be made (A) to the Loan Parties or any of the Loan Parties’ Subsidiaries
or (B) to a natural Person.


 


Subject to acceptance and recording thereof by the Agent pursuant
to subsection (c) of this Section, from and after the effective date specified in each Assignment and Assumption, the Eligible
Assignee thereunder shall be a party to this Agreement and, to the extent of the interest assigned by such Assignment and Assumption,
have the rights and obligations of a Lender under this Agreement, and the assigning Lender thereunder shall, to the extent of the
interest assigned by such Assignment and Assumption, be released from its obligations under this Agreement (and, in the case of
an Assignment and Assumption covering all of the assigning Lender's rights and obligations under this Agreement, such Lender shall
cease to be a party hereto) but shall continue to be entitled to the benefits of Sections 3.01, 3.04, 3.05,
and 10.04 with respect to facts and circumstances occurring prior to the effective date of such assignment. Upon request,
the Borrower (at its expense) shall execute and deliver a Note to the assignee Lender. Any assignment or transfer by a Lender of
rights or obligations under this Agreement that does not comply with this subsection shall be treated for purposes of this Agreement
as a sale by such Lender of a participation in such rights and obligations in accordance with Section 10.06(d).


 




    	80



    	 



    

 


(c)          Register.
The Agent, acting solely for this purpose as an agent of the Borrower, shall maintain at the Agent’s Office a copy of each
Assignment and Assumption delivered to it (or the equivalent thereof in electronic form) and a register for the recordation of
the names and addresses of the Lenders and principal amounts (and stated interest) of the Loans owing to, each Lender pursuant
to the terms hereof from time to time (the “Register”). The entries in the Register shall be conclusive, absent
manifest error, and the Loan Parties, the Agent and the Lenders may treat each Person whose name is recorded in the Register pursuant
to the terms hereof as a Lender hereunder for all purposes of this Agreement, notwithstanding notice to the contrary. The Register
shall be available for inspection by the Borrower and any Lender at any reasonable time and from time to time upon reasonable prior
notice.


 


(d)          Participations.
(i) Any Lender may at any time, without the consent of, or notice to, the Loan Parties or the Agent, sell participations to any
Person (other than a natural person or the Loan Parties or any of the Loan Parties’ Affiliates or Subsidiaries) (each, a
“Participant”) in all or a portion of such Lender's rights and/or obligations under this Agreement (including
all or a portion of the Loans owing to it); provided that (i) such Lender's obligations under this Agreement shall
remain unchanged, (ii) such Lender shall remain solely responsible to the other parties hereto for the performance of such
obligations and (iii) the Loan Parties, the Agent, the Lenders shall continue to deal solely and directly with such Lender
in connection with such Lender's rights and obligations under this Agreement. Any Participant shall agree in writing to comply
with all confidentiality obligations set forth in Section 10.07 as if such Participant was a Lender hereunder.


 


(ii) Any agreement or instrument pursuant to which a Lender
sells such a participation shall provide that such Lender shall retain the sole right to enforce this Agreement and to approve
any amendment, modification or waiver of any provision of this Agreement; provided that such agreement or instrument may provide
that such Lender will not, without the consent of the Participant, agree to any amendment, waiver or other modification described
in clauses (i) through (iii) of the first proviso to Section 10.01 that affects such Participant. Subject to subsection (e) of
this Section, the Loan Parties agree that each Participant shall be entitled to the benefits of Sections 3.01, 3.04 and 3.05
(subject to the requirements and limitations therein, including the requirements under Section 3.01(e) (it being understood
that the documentation required under Section 3.01(e) shall be delivered to the participating Lender) to the same extent as if
it were a Lender and had acquired its interest by assignment pursuant to Section 10.06(b). To the extent permitted by Law, each
Participant also shall be entitled to the benefits of Section 10.08 as though it were a Lender, provided such Participant
agrees to be subject to Section 2.10 as though it were a Lender.


 


(iii) Each Lender that sells a participation shall, acting solely
for this purpose as an agent of the Borrower, maintain a register on which it enters the name and address of each Participant and
the principal amounts (and stated interest) of each Participant’s interest in the Loans or other obligations under the Loan
Documents (the “Participant Register”); provided that no Lender shall have any obligation to disclose
all or any portion of the Participant Register (including the identity of any Participant or any information relating to a Participant's
interest in any Loans or its other obligations under any Loan Document) to any Person except to the extent that such disclosure
is necessary to establish that such Loan or other obligation is in registered form under Section 5f.103-1(c) of the United States
Treasury Regulations. The entries in the Participant Register shall be conclusive absent manifest error, and such Lender shall
treat each Person whose name is recorded in the Participant Register as the owner of such participation for all purposes of this
Agreement notwithstanding any notice to the contrary. For the avoidance of doubt, the Agent (in its capacity as Agent) shall have
no responsibility for maintaining a Participant Register.


 




    	81



    	 



    

 


(e)          Limitations
upon Participant Rights. A Participant shall not be entitled to receive any greater payment under Section 3.01 or 3.04
than the applicable Lender would have been entitled to receive with respect to the participation sold to such Participant,
unless the sale of the participation to such Participant is made with the Borrower's prior written consent. A Participant that
would be a Foreign Lender if it were a Lender shall not be entitled to the benefits of Section 3.01 unless the Borrower
is notified of the participation sold to such Participant and such Participant agrees, for the benefit of the Loan Parties, to
comply with Section 3.01(e) as though it were a Lender.


 


(f)          Certain
Pledges. Any Lender may at any time pledge or assign a security interest in all or any portion of its rights under this Agreement
(including under its Note, if any) to secure obligations of such Lender, including any pledge or assignment to secure obligations
to a Federal Reserve Bank; provided that no such pledge or assignment shall release such Lender from any of its obligations
hereunder or substitute any such pledgee or assignee for such Lender as a party hereto.


 


10.07      Treatment
of Certain Information; Confidentiality. Each of the Credit Parties agrees to maintain the confidentiality
of the Information (as defined below), except that Information may be disclosed (a) to its Affiliates, Approved Funds, and to its
and its Affiliates’ and Approved Funds’ respective partners, directors, officers, employees, agents, funding sources,
attorneys, advisors and representatives (it being understood that the Persons to whom such disclosure is made will be informed
of the confidential nature of such Information and instructed to keep such Information confidential), (b) to the extent requested
by any regulatory authority purporting to have jurisdiction over it (including any self-regulatory authority), (c) to the extent
required by Laws or regulations or by any subpoena or similar legal process, (d) to any other party hereto, (e) in connection with
the exercise of any remedies hereunder or under any other Loan Document or any action or proceeding relating to this Agreement
or any other Loan Document or the enforcement of rights hereunder or thereunder, (f) subject to an agreement (including any electronic
agreement contained in any Platform) containing provisions substantially the same as those of this Section, to (i) any assignee
of or Participant in, or any prospective assignee of or Participant in, any of its rights or obligations under this Agreement or
(ii) any actual or prospective counterparty (or its advisors) to any Swap Contract relating to any Loan Party and its obligations,
(g) with the consent of the Borrower or (h) to the extent such Information (i) becomes publicly available other than as a result
of a breach of this Section or (ii) becomes available to any Credit Party or any of their respective Affiliates on a non-confidential
basis from a source other than the Loan Parties. 


 


For purposes of this Section, “Information” means
all information received from the Loan Parties or any Subsidiary thereof relating to the Loan Parties or any Subsidiary thereof
or their respective businesses, other than any such information that is available to any Credit Party on a non-confidential basis
prior to disclosure by the Loan Parties or any Subsidiary thereof. Any Person required to maintain the confidentiality of Information
as provided in this Section shall be considered to have complied with its obligation to do so if such Person has exercised the
same degree of care to maintain the confidentiality of such Information as such Person would accord to its own confidential information.


 




    	82



    	 



    

 


Each of the Credit Parties acknowledges that (a) the Information
may include material non-public information concerning the Loan Parties or a Subsidiary, as the case may be, (b) it has developed
compliance procedures regarding the use of material non-public information and (c) it will handle such material non-public information
in accordance with Law, including Federal and state securities Laws.


 


10.08      Right
of Setoff. If an Event of Default shall have occurred and be continuing or if any Lender shall
have been served with a trustee process or similar attachment relating to property of a Loan Party, each Lender and each of their
respective Affiliates is hereby authorized at any time and from time to time, after obtaining the prior written consent of the
Agent or the Required Lenders, to the fullest extent permitted by Law, to set off and apply any and all deposits (general or special,
time or demand, provisional or final, in whatever currency) or other property at any time held and other obligations (in whatever
currency) at any time owing by such Lender or any such Affiliate to or for the credit or the account of the Borrower or any other
Loan Party against any and all of the Obligations now or hereafter existing under this Agreement or any other Loan Document to
such Lender, regardless of the adequacy of the Collateral, and irrespective of whether or not such Lender shall have made any demand
under this Agreement or any other Loan Document and although such obligations of the Borrower or such Loan Party may be contingent
or unmatured or are owed to a branch or office of such Lender different from the branch or office holding such deposit or obligated
on such indebtedness. The rights of each Lender and its Affiliates under this Section are in addition to other rights and remedies
(including other rights of setoff) that such Lender or its Affiliates may have. Each Lender agrees to notify the Borrower and the
Agent promptly after any such setoff and application, provided that the failure to give such notice shall not affect the
validity of such setoff and application.


 


10.09      Interest
Rate Limitation. 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 Law (the “Maximum Rate”). If the 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 and other Obligations (other than Other Liabilities
not then due and owing) or, if it exceeds such unpaid principal, refunded to the Borrower. In determining whether the interest
contracted for, charged, or received by the Agent or a Lender exceeds the Maximum Rate, such Person may, to the extent permitted
by Law, (a) characterize any payment that is not principal as an expense, fee, or premium rather than interest, (b) exclude voluntary
prepayments and the effects thereof, and (c) amortize, prorate, allocate, and spread in equal or unequal parts the total amount
of interest throughout the contemplated term of the Obligations hereunder.


 


10.10      Counterparts;
Integration; Effectiveness. This Agreement may be executed in counterparts (and by different
parties hereto in different counterparts), each of which shall constitute an original, but all of which when taken together shall
constitute a single contract. This Agreement and the other Loan Documents constitute the entire contract among the parties relating
to the subject matter hereof and supersede any and all previous agreements and understandings, oral or written, relating to the
subject matter hereof. Except as provided in Section 4.01, this Agreement shall become effective when it shall have been
executed by the Agent and when the Agent shall have received counterparts hereof that, when taken together, bear the signatures
of each of the other parties hereto. Delivery of an executed counterpart of a signature page of this Agreement by telecopy, pdf
or other electronic transmission shall be as effective as delivery of a manually executed counterpart of this Agreement.


 




    	83



    	 



    

 


10.11      Survival.
All representations and warranties made hereunder and in any other Loan Document or other document delivered pursuant hereto or
thereto or in connection herewith or therewith shall survive the execution and delivery hereof and thereof. Such representations
and warranties have been or will be relied upon by the Credit Parties, regardless of any investigation made by any Credit Party
or on their behalf and notwithstanding that any Credit Party may have had notice or knowledge of any Default or Event of Default,
and shall continue in full force and effect as long as the Loans or any other Obligation hereunder shall remain unpaid or unsatisfied.
Further, the provisions of Sections 3.01, 3.04, 3.05 and 10.04 and Article IX shall survive and remain in
full force and effect regardless of the repayment of the Obligations or the termination of this Agreement or any provision hereof.


 


10.12      Severability.
If any provision of this Agreement or the other Loan Documents is held to be illegal, invalid or unenforceable, (a) the legality,
validity and enforceability of the remaining provisions of this Agreement and the other Loan Documents shall not be affected or
impaired thereby and (b) the parties shall endeavor in good faith negotiations to replace the illegal, invalid or unenforceable
provisions with valid provisions the economic effect of which comes as close as possible to that of the illegal, invalid or unenforceable
provisions. The invalidity of a provision in a particular jurisdiction shall not invalidate or render unenforceable such provision
in any other jurisdiction.


 


10.13      Replacement
of Lenders. If any Lender requests compensation under Section 3.04, or if the Borrower
is required to pay any additional amount to any Lender or any Governmental Authority for the account of any Lender pursuant to
Section 3.01, or if any Lender is a Non-Consenting Lender, then the Borrower may, at its sole expense and effort, upon notice
to such Lender and the Agent, require such Lender to assign and delegate, without recourse (in accordance with and subject to the
restrictions contained in, and consents required by, Section 10.06), all of its interests, rights (other than its existing
rights to payments pursuant to Section 3.01 and 3.04) and obligations under this Agreement and the related Loan Documents
to an assignee that shall assume such obligations (which assignee may be another Lender, if a Lender accepts such assignment),
provided that:


 


(a)          the
Borrower shall have paid to the Agent the assignment fee specified in Section 10.06(b);


 


(b)          such
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 and under the other Loan Documents (including any amounts under Section 3.05)
from the assignee (to the extent of such outstanding principal and accrued interest and fees) or the Borrower (in the case of all
other amounts);


 


(c)          in
the case of any such assignment resulting from a claim for compensation under Section 3.04 or payments required to be made
pursuant to Section 3.01, such assignment will result in a reduction in such compensation or payments thereafter;


 


(d)          such
assignment does not conflict with Laws; and


 


(e)          in
the case of an assignment resulting from a Lender becoming a Non-Consenting Lender, the applicable assignee shall have consented
to the applicable amendment, waiver or consent.


 




    	84



    	 



    

 


A Lender shall not be required to make any such assignment or
delegation if, prior thereto, as a result of a waiver by such Lender or otherwise, the circumstances entitling the Borrower to
require such assignment and delegation cease to apply.


 


10.14      Governing
Law; Jurisdiction; Etc. 


 


(a)          GOVERNING
LAW. This Agreement and the other Loan Documents and any claims, controversy, dispute
or cause of action (whether in contract or tort or otherwise) based upon, arising out of or relating to this Agreement or any other
Loan Document (except, as to any other Loan Document, as expressly set forth therein) and the transactions contemplated hereby
and thereby shall be governed by, and construed in accordance with, the law of the State of NEW yORK.


 


(b)          SUBMISSION
TO JURISDICTION. EACH LOAN PARTY IRREVOCABLY AND UNCONDITIONALLY agrees that it will
not commence any action, litigation or proceeding of any kind or description, whether in law or equity, whether in contract or
in tort or otherwise, against the Agent, any Lender or any Related Party of the foregoing in any way relating to this Agreement
or any other Loan Document or the transactions relating hereto or thereto, in any forum other than THE COURTS OF THE STATE
OF NEW YORK SITTING IN NEW YORK COUNTY AND OF THE UNITED STATES DISTRICT COURT OF THE SOUTHERN DISTRICT OF NEW YORK, AND ANY APPELLATE
COURT FROM ANY THEREOF, AND EACH OF THE PARTIES HERETO IRREVOCABLY AND UNCONDITIONALLY SUBMITS TO THE JURISDICTION OF SUCH COURTS
AND AGREES THAT ALL CLAIMS IN RESPECT OF ANY SUCH ACTION, LITIGATION OR PROCEEDING MAY BE HEARD AND DETERMINED IN SUCH NEW YORK
STATE COURT OR, TO THE FULLEST EXTENT PERMITTED BY LAW, IN SUCH FEDERAL COURT. EACH OF THE LOAN PARTIES HERETO AGREES THAT A FINAL
JUDGMENT IN ANY SUCH ACTION, LITIGATION OR PROCEEDING SHALL BE CONCLUSIVE AND MAY BE ENFORCED IN OTHER JURISDICTIONS BY SUIT ON
THE JUDGMENT OR IN ANY OTHER MANNER PROVIDED BY LAW. NOTHING IN THIS AGREEMENT OR IN ANY OTHER LOAN DOCUMENT SHALL AFFECT ANY RIGHT
THAT ANY CREDIT PARTY MAY OTHERWISE HAVE TO BRING ANY ACTION OR PROCEEDING RELATING TO THIS AGREEMENT OR ANY OTHER LOAN DOCUMENT
AGAINST ANY LOAN PARTY OR ITS PROPERTIES IN THE COURTS OF ANY JURISDICTION.


 


(c)          WAIVER
OF VENUE. EACH LOAN PARTY IRREVOCABLY AND UNCONDITIONALLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY LAW, ANY OBJECTION THAT
IT MAY NOW OR HEREAFTER HAVE TO THE LAYING OF VENUE OF ANY ACTION OR PROCEEDING ARISING OUT OF OR RELATING TO THIS AGREEMENT OR
ANY OTHER LOAN DOCUMENT IN ANY COURT REFERRED TO IN PARAGRAPH (B) OF THIS SECTION. EACH OF THE LOAN PARTIES HERETO HEREBY IRREVOCABLY
WAIVES, TO THE FULLEST EXTENT PERMITTED BY LAW, THE DEFENSE OF AN INCONVENIENT FORUM TO THE MAINTENANCE OF SUCH ACTION OR PROCEEDING
IN ANY SUCH COURT.


 




    	85



    	 



    

 


(d)          SERVICE
OF PROCESS. EACH PARTY HERETO IRREVOCABLY CONSENTS TO SERVICE OF PROCESS IN THE MANNER PROVIDED FOR NOTICES IN SECTION 10.02.
NOTHING IN THIS AGREEMENT WILL AFFECT THE RIGHT OF ANY PARTY HERETO TO SERVE PROCESS IN ANY OTHER MANNER PERMITTED BY LAW.


 


10.15      Waiver
of Jury Trial. EACH PARTY HERETO HEREBY IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY
LAW, ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN ANY LEGAL PROCEEDING DIRECTLY OR INDIRECTLY ARISING OUT OF OR RELATING TO THIS
AGREEMENT OR ANY OTHER LOAN DOCUMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY OR THEREBY (WHETHER BASED ON CONTRACT, TORT OR ANY
OTHER THEORY). EACH PARTY HERETO (A) CERTIFIES THAT NO REPRESENTATIVE, AGENT OR ATTORNEY OF ANY OTHER PERSON HAS REPRESENTED,
EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PERSON WOULD NOT, IN THE EVENT OF LITIGATION, SEEK TO ENFORCE THE FOREGOING WAIVER AND
(B) ACKNOWLEDGES THAT IT AND THE OTHER PARTIES HERETO HAVE BEEN INDUCED TO ENTER INTO THIS AGREEMENT AND THE OTHER LOAN DOCUMENTS
BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS SECTION.


 


10.16      No
Advisory or Fiduciary Responsibility. In connection with all aspects of each transaction contemplated
hereby, the Loan Parties each acknowledge and agree that: (i) the credit facility provided for hereunder and any related arranging
or other services in connection therewith (including in connection with any amendment, waiver or other modification hereof or of
any other Loan Document) are an arm’s-length commercial transaction between the Loan Parties, on the one hand, and the Credit
Parties, on the other hand, and each of the Loan Parties is capable of evaluating and understanding and understands and accepts
the terms, risks and conditions of the transactions contemplated hereby and by the other Loan Documents (including any amendment,
waiver or other modification hereof or thereof); (ii) in connection with the process leading to such transaction, each Credit Party
is and has been acting solely as a principal and is not the financial advisor, agent or fiduciary, for the Loan Parties or any
of their respective Affiliates, stockholders, creditors or employees or any other Person; (iii) none of the Credit Parties has
assumed or will assume an advisory, agency or fiduciary responsibility in favor of the Loan Parties with respect to any of the
transactions contemplated hereby or the process leading thereto, including with respect to any amendment, waiver or other modification
hereof or of any other Loan Document (irrespective of whether any of the Credit Parties has advised or is currently advising any
Loan Party or any of its Affiliates on other matters) and none of the Credit Parties has any obligation to any Loan Party or any
of its Affiliates with respect to the transactions contemplated hereby except those obligations expressly set forth herein and
in the other Loan Documents; (iv) the Credit Parties and their respective Affiliates may be engaged in a broad range of transactions
that involve interests that differ from those of the Loan Parties and their respective Affiliates, and none of the Credit Parties
has any obligation to disclose any of such interests by virtue of any advisory, agency or fiduciary relationship; and (v) the Credit
Parties have not provided and will not provide any legal, accounting, regulatory or tax advice with respect to any of the transactions
contemplated hereby (including any amendment, waiver or other modification hereof or of any other Loan Document) and each of the
Loan Parties has consulted its own legal, accounting, regulatory and tax advisors to the extent it has deemed appropriate. Each
of the Loan Parties hereby waives and releases, to the fullest extent permitted by law, any claims that it may have against each
of the Credit Parties with respect to any breach or alleged breach of agency or fiduciary duty.


 




    	86



    	 



    

 


10.17      USA
PATRIOT Act Notice. Each Lender that is subject to the Act (as hereinafter defined) and the Agent
(for itself and not on behalf of any Lender) hereby notifies the Loan Parties that pursuant to the requirements of the USA Patriot
Act (Title III of Pub. L. 107-56 (signed into law October 26, 2001)) (the “Act”), it is required to obtain,
verify and record information that identifies each Loan Party, which information includes the name and address of each Loan Party
and other information that will allow such Lender or the Agent, as applicable, to identify each Loan Party in accordance with the
Act. Each Loan Party is in compliance, in all material respects, with the Patriot Act. No part of the proceeds of the Loans will
be used by the Loan Parties, directly or indirectly, for any payments to any governmental official or employee, political party,
official of a political party, candidate for political office, or anyone else acting in an official capacity, in order to obtain,
retain or direct business or obtain any improper advantage, in violation of the United States Foreign Corrupt Practices Act of
1977, as amended. The Loan Parties shall, promptly following a request by the Agent or any Lender, provide all documentation and
other information that the Agent or such Lender requests in order to comply with its ongoing obligations under applicable “know
your customer” and anti-money laundering rules and regulations, including the Act.


 


10.18      Foreign
Asset Control Regulations. Neither of the advance of the Loans nor the use of the proceeds of
any thereof will violate the Trading With the Enemy Act (50 U.S.C. § 1 et seq., as amended) (the "Trading With the
Enemy Act") or any of the foreign assets control regulations of the United States Treasury Department (31 CFR, Subtitle
B, Chapter V, as amended) (the "Foreign Assets Control Regulations") or any enabling legislation or executive
order relating thereto (which for the avoidance of doubt shall include, but shall not be limited to (a) Executive Order 13224 of
September 21, 2001 Blocking Property and Prohibiting Transactions With Persons Who Commit, Threaten to Commit, or Support Terrorism
(66 Fed. Reg. 49079 (2001)) (the "Executive Order") and (b) the Uniting and Strengthening America by Providing
Appropriate Tools Required to Intercept and Obstruct Terrorism Act of 2001 (Public Law 107-56)). Furthermore, none of the Loan
Parties or their Affiliates (a) is or will become a "blocked person" as described in the Executive Order, the Trading
With the Enemy Act or the Foreign Assets Control Regulations or (b) engages or will engage in any dealings or transactions, or
be otherwise associated, with any such "blocked person" or in any manner violative of any such order.


 


10.19      Time
of the Essence. Time is of the essence of the Loan Documents.


 


10.20      Press
Releases.


 


(a)          Each
Credit Party executing this Agreement agrees that neither it nor its Affiliates will in the future issue any press releases or
other public disclosure using the name of the Agent or its Affiliates or referring to this Agreement or the other Loan Documents
without at least two (2) Business Days’ prior notice to the Agent and without the prior written consent of the Agent unless
(and only to the extent that) such Credit Party or Affiliate is required to do so under Law and then, in any event, such Credit
Party or Affiliate will consult with the Agent before issuing such press release or other public disclosure.


 


(b)          Each
Loan Party consents to the publication by the Agent or any Lender of advertising material relating to the financing transactions
contemplated by this Agreement using any Loan Party’s name, product photographs, logo or trademark. The Agent or such Lender
shall provide a draft reasonably in advance of any advertising material to the Borrower prior to the publication thereof. The Agent
reserves the right to provide to industry trade organizations information necessary and customary for inclusion in league table
measurements.


 




    	87



    	 



    

 


10.21      Additional
Waivers.


 


(a)          The
Obligations are the joint and several obligation of each Loan Party. To the fullest extent permitted by Law, the obligations of
each Loan Party shall not be affected by (i) the failure of any Credit Party to assert any claim or demand or to enforce or
exercise any right or remedy against any other Loan Party under the provisions of this Agreement, any other Loan Document or otherwise,
(ii) any rescission, waiver, amendment or modification of, or any release from any of the terms or provisions of, this Agreement
or any other Loan Document, (iii) the failure to perfect any security interest in, or the release of, any of the Collateral
or other security held by or on behalf of the Agent or any other Credit Party, or (iv) any default, failure or delay, willful or
otherwise, in the performance of any of the Obligations, or by any other act or omission that may or might in any manner or to
any extent vary the risk of any Loan Party or that would otherwise operate as a discharge of any Loan Party as a matter of law
or equity (other than the indefeasible payment in full in cash of all the Obligations). The obligations of each Loan Party shall
not be subject to any reduction, limitation, impairment or termination for any reason (other than the indefeasible payment in full
in cash of the Obligations), including any claim of waiver, release, surrender, alteration or compromise of any of the Obligations,
and shall not be subject to any defense or setoff, counterclaim, recoupment or termination whatsoever by reason of the invalidity,
illegality or unenforceability of any of the Obligations or otherwise.


 


(b)          To
the fullest extent permitted by Law, each Loan Party waives any defense based on or arising out of any defense of any other Loan
Party or the unenforceability of the Obligations or any part thereof from any cause, or the cessation from any cause of the liability
of any other Loan Party, other than the indefeasible payment in full in cash of all the Obligations. The Agent and the other Credit
Parties may, at their election, foreclose on any security held by one or more of them by one or more judicial or non-judicial sales,
accept an assignment of any such security in lieu of foreclosure, compromise or adjust any part of the Obligations, make any other
accommodation with any other Loan Party, or exercise any other right or remedy available to them against any other Loan Party,
without affecting or impairing in any way the liability of any Loan Party hereunder except to the extent that all of the Obligations
have been indefeasibly paid in full in cash. Each Loan Party waives any defense arising out of any such election even though such
election operates, pursuant to Law, to impair or to extinguish any right of reimbursement or subrogation or other right or remedy
of such Loan Party against any other Loan Party.


 


(c)          Upon
payment by any Loan Party of any Obligations, all rights of such Loan Party against any other Loan Party arising as a result thereof
by way of right of subrogation, contribution, reimbursement, indemnity or otherwise shall in all respects be subordinate and junior
in right of payment to the prior indefeasible payment in full in cash of all of the Obligations. In addition, any indebtedness
of any Loan Party now or hereafter held by any other Loan Party is hereby subordinated in right of payment to the prior indefeasible
payment in full of the Obligations and no Loan Party will demand, sue for or otherwise attempt to collect any such indebtedness.
If any amount shall erroneously be paid to any Loan Party on account of (i) such subrogation, contribution, reimbursement, indemnity
or similar right or (ii) any such indebtedness of any Loan Party, such amount shall be held in trust for the benefit of the Credit
Parties and shall forthwith be paid to the Agent to be credited against the payment of the Obligations, whether matured or unmatured,
in accordance with the terms of this Agreement and the other Loan Documents. Subject to the foregoing, to the extent that any Loan
Party shall, under this Agreement as a joint and several obligor, repay any of the Obligations constituting Loans made to the Borrower
hereunder or other Obligations incurred directly and primarily by the Borrower (an "Accommodation Payment"), then
the Loan Party making such Accommodation Payment shall be entitled to contribution and indemnification from, and be reimbursed
by, each of the other Loan Parties in an amount, for each of such other Loan Parties, equal to a fraction of such Accommodation
Payment, the numerator of which fraction is such other Loan Party's Allocable Amount and the denominator of which is the sum of
the Allocable Amounts of all of the Loan Parties. As of any date of determination, the "Allocable Amount" of each
Loan Party shall be equal to the maximum amount of liability for Accommodation Payments which could be asserted against such Loan
Party hereunder without (a) rendering such Loan Party "insolvent" within the meaning of Section 101 (32) of the
Bankruptcy Code, Section 2 of the Uniform Fraudulent Transfer Act ("UFTA") or Section 2 of the Uniform Fraudulent
Conveyance Act ("UFCA"), (b) leaving such Loan Party with unreasonably small capital or assets, within the
meaning of Section 548 of the Bankruptcy Code, Section 4 of the UFTA, or Section 5 of the UFCA, or (c) leaving such Loan Party
unable to pay its debts as they become due within the meaning of Section 548 of the Bankruptcy Code or Section 4 of the UFTA, or
Section 5 of the UFCA.


 




    	88



    	 



    

 


(d)          Without
limiting the generality of the foregoing, or of any other waiver or other provision set forth in this Agreement, each Loan Party
hereby absolutely, knowingly, unconditionally, and expressly waives any and all claim, defense or benefit arising directly or indirectly
under any one or more of Sections 2787 to 2855 inclusive of the California Civil Code or any similar law of California.


 


10.22      No
Strict Construction.


 


The parties hereto have participated jointly in the negotiation
and drafting of this Agreement. In the event an ambiguity or question of intent or interpretation arises, this Agreement shall
be construed as if drafted jointly by the parties hereto and no presumption or burden of proof shall arise favoring or disfavoring
any party by virtue of the authorship of any provisions of this Agreement.


 


10.23      Attachments.


 


The exhibits, schedules and annexes attached to this Agreement
are incorporated herein and shall be considered a part of this Agreement for the purposes stated herein, except that in the event
of any conflict between any of the provisions of such exhibits and the provisions of this Agreement, the provisions of this Agreement
shall prevail.


 


10.24      Electronic
Execution of Assignments and Certain Other Documents.


 


The words “execute,” “execution,” “signed,”
“signature,” and words of like import in any Assignment and Assumption or in any amendment or other modification hereof
(including waivers and consents) shall be deemed to include electronic signatures, the electronic matching of assignment terms
and contract formations on electronic platforms approved by the Agent, or the keeping of records in electronic form, each of which
shall be of the same legal effect, validity or enforceability as a manually executed signature or the use of a paper-based recordkeeping
system, as the case may be, to the extent and as provided for in any applicable law, including the Federal Electronic Signatures
in Global and National Commerce Act, the New York State Electronic Signatures and Records Act, or any other similar state laws
based on the Uniform Electronic Transactions Act.


 




    	89



    	 



    

 


10.25      Keepwell.


 


Each Loan Party that is a Qualified ECP Guarantor at the time
the Guaranty or the grant of a security interest under the Loan Documents, in each case, by any Specified Loan Party becomes effective
with respect to any Swap Obligation, hereby jointly and severally, absolutely, unconditionally and irrevocably undertakes to provide
such funds or other support to each Specified Loan Party with respect to such Swap Obligation as may be needed by such Specified
Loan Party from time to time to honor all of its obligations under the Loan Documents in respect of such Swap Obligation (but,
in each case, only up to the maximum amount of such liability that can be hereby incurred without rendering such Qualified ECP
Guarantor’s obligations and undertakings under the Guaranty voidable under applicable Law relating to fraudulent conveyance
or fraudulent transfer, and not for any greater amount). The obligations and undertakings of each Qualified ECP Guarantor under
this Section 10.25 shall remain in full force and effect until the Obligations have been indefeasibly paid and performed
in full. Each Loan Party intends this Section 10.25 to constitute, and this Section 10.25 shall be deemed to constitute,
a guarantee of the obligations of, and a “keepwell, support, or other agreement” for the benefit of, each Specified
Loan Party for all purposes of the Commodity Exchange Act.


 


10.26      California
Judicial Reference.


 


If any action or proceeding is filed in a court of the State
of California by or against any party hereto in connection with any of the transactions contemplated by this Agreement or any other
Loan Document, (a) the court shall, and is hereby directed to, make a general reference pursuant to California Code of Civil Procedure
Section 638 to a referee (who shall be a single active or retired judge) to hear and determine all of the issues in such action
or proceeding (whether of fact or of law) and to report a statement of decision, provided that at the option of any party
to such proceeding, any such issues pertaining to a “provisional remedy” as defined in California Code of Civil Procedure
Section 1281.8 shall be heard and determined by the court, and (b) without limiting the generality of Section 10.04, the
Borrower shall be solely responsible to pay all fees and expenses of any referee appointed in such action or proceeding.


 


10.27      Second
Lien Intercreditor Agreement.


 


Notwithstanding anything herein to the contrary, the security
interest granted to the Agent, for the benefit of the Credit Parties, pursuant to the Security Documents and the exercise of any
right or remedy by the Agent hereunder and thereunder are subject to the provisions of the Second Lien Intercreditor Agreement.
In the event of any conflict between the terms of the Second Lien Intercreditor Agreement and this Loan Agreement, the terms of
the Second Lien Intercreditor Agreement shall govern and control. Except as specified herein, nothing contained in the Second Lien
Intercreditor Agreement shall be deemed to modify any of the provisions of this Agreement, which, as among the Loan Parties and
the Agent, shall remain in full force and effect.


 




    	90



    	 



    

 


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


 


	 	BORROWER:
	 	 
	 	SEQUENTIAL BRANDS GROUP, INC.
	 	 
	 	By:	/s/ Gary Klein
	 	Name:  Gary Klein
	 	Title: Chief Financial Officer
	 	 
	 	GUARANTORS:
	 	 
	 	VERSATILE ENTERTAINMENT, INC.
	 	 
	 	By:	/s/ Gary Klein
	 	Name:  Gary Klein
	 	Title: Chief Financial Officer
	 	 
	 	BELLA ROSE, LLC
	 	 
	 	By:	/s/ Gary Klein
	 	Name:  Gary Klein
	 	Title: Chief Financial Officer
	 	 
	 	WILLIAM RAST SOURCING, LLC
	 	 
	 	By:  	/s/ Gary Klein
	 	Name:  Gary Klein
	 	Title: Chief Financial Officer
	 	 
	 	WILLIAM RAST LICENSING, LLC
	 	 
	 	By:	/s/ Gary Klein
	 	Name:  Gary Klein
	 	Title: Chief Financial Officer


 


Signature Page to Firs Lien Term Loan Agreement


 




    	 



    	 



    

 


	 	WILLIAM RAST RETAIL, LLC
	 	By: William Rast Sourcing, LLC, as
	 	the Manager
	 	 
	 	By:	/s/ Gary Klein
	 	Name:  Gary Klein
	 	Title: Chief Financial Officer
	 	 
	 	WILLIAM RAST EUROPE HOLDINGS, LLC
	 	By: William Rast Sourcing, LLC, as

 the  Manager
	 	 
	 	By:	/s/ Gary Klein
	 	Name:  Gary Klein
	 	Title: Chief Financial Officer
	 	 
	 	HEELYS, INC.
	 	 
	 	By:	/s/ Gary Klein
	 	Name:  Gary Klein
	 	Title: Chief Financial Officer
	 	 
	 	HEELING MANAGEMENT CORP.
	 	 
	 	By:  	/s/ Gary Klein
	 	Name:  Gary Klein
	 	Title: Chief Financial Officer
	 	 
	 	HEELING HOLDING CORPORATION
	 	 
	 	By:  	/s/ Gary Klein
	 	Name:  Gary Klein
	 	Title: Chief Financial Officer


 




    	2



    	 



    

 


	 	HEELING SPORTS LIMITED
	 	 	By: Heeling Management Corp., as

 the General Partner
	 	 
	 	By:	/s/ Gary Klein
	 	Name:  Gary Klein
	 	Title: Chief Financial Officer
	 	 
	 	HEELING HOLDING CORPORATION,

 as the Limited Partner
	 	 
	 	By:	/s/ Gary Klein
	 	Name:  Gary Klein
	 	Title: Chief Financial Officer
	 	 
	 	B®AND MATTER, LLC
	 	 
	 	By:	/s/ Gary Klein
	 	Name:  Gary Klein
	 	Title: Chief Financial Officer


 




    	3



    	 



    

 


	 	bank of america, n.a., as Agent and

as a Lender
	 	 	 
	 	By:	/s/ Andrew Cerussi
	 	 	 
	 	Name:  Andrew Cerussi
	 	 	 
	 	Title: Director







    	4



    	 



    

 


 







 


EXHIBIT A


 


FORM OF ASSIGNMENT AND ASSUMPTION


 


This Assignment and Assumption (this “Assignment
and Assumption”) is dated as of the Effective Date set forth below and is entered into by and between [the][each]1
Assignor identified in item 1 below ([the][each, an] “Assignor”) and [the][each]2 Assignee identified
in item 2 below ([the][each, an] “Assignee”). [It is understood and agreed that the rights and obligations of
[the Assignors][the Assignees]3 hereunder are several and not joint.]4 Capitalized terms used but not defined
herein shall have the meanings given to them in the First Lien Term Loan Agreement identified below (the “Credit Agreement”),
receipt of a copy of which is hereby acknowledged by [the][each] Assignee. The Standard Terms and Conditions set forth in Annex
1 attached hereto (the “Standard Terms and Conditions”) are hereby agreed to and incorporated herein by reference
and made a part of this Assignment and Assumption as if set forth herein in full.


 


For an agreed consideration, [the][each]
Assignor hereby irrevocably sells and assigns to [the Assignee][the respective Assignees], and [the][each] Assignee hereby irrevocably
purchases and assumes from [the Assignor][the respective Assignors], subject to and in accordance with the Standard Terms and Conditions
and the Credit Agreement, as of the Effective Date inserted by the Agent as contemplated below, (i) all of [the Assignor’s][the
respective Assignors’] rights and obligations in [its capacity as a Lender][their respective capacities as Lenders] under
the Credit Agreement and the other Loan Documents or instruments delivered pursuant thereto to the extent related to the amount
and percentage interest identified below of all of such outstanding rights and obligations of [the Assignor][the respective Assignors]
under the Loans and (ii) to the extent permitted to be assigned under applicable Law, all claims, suits, causes of action and any
other right of [the Assignor (in its capacity as a Lender)][the respective Assignors (in their respective capacities as Lenders)]
against any Person, whether known or unknown, arising under or in connection with the Credit Agreement, any other Loan Documents
or the loan transactions governed thereby or in any way based on or related to any of the foregoing, including, but not limited
to, contract claims, tort claims, malpractice claims, statutory claims and all other claims at law or in equity related to the
rights and obligations sold and assigned pursuant to clause (i) above (the rights and obligations sold and assigned by [the][any]
Assignor to [the][any] Assignee pursuant to clauses (i) and (ii) above being referred to herein collectively as [the][an] “Assigned
Interest”). Each such sale and assignment is without recourse to [the][any] Assignor and, except as expressly provided
in this Assignment and Assumption, without representation or warranty by [the][any] Assignor.


 




1 For bracketed language here and elsewhere in this
form relating to the Assignor(s), if the assignment is from a single Assignor, choose the first bracketed language. If the assignment
is from multiple Assignors, choose the second bracketed language.


2 For bracketed language here
and elsewhere in this form relating to the Assignee(s), if the assignment is to a single Assignee, choose the first bracketed language.
If the assignment is to multiple Assignees, choose the second bracketed language.


3 Select as appropriate.


4 Include bracketed language
if there are either multiple Assignors or multiple Assignees.


 




    	 



    	 



    

 


	1.	Assignor[s]:	 	 
	 	 	 	 
	 	 	 	 
	 	 	 	 
	2.	Assignee[s]:	 	 
	 	 	 	 
	 	 	 	 
	 	[for each Assignee, indicate if [Affiliate][Approved Fund] of [identify Lender]]


 


		3.	Borrower:     Sequential Brands Group,
Inc.



 


		4.	Agent: Bank of America, N.A., as the Agent under the Credit Agreement.



 


		5.	Credit Agreement:      First Lien Term Loan Agreement, dated
as of March 28, 2013 (as amended, amended and restated, restated, supplemented or otherwise modified
and in effect from time to time), by and among (i) Sequential Brands Group, Inc., a Delaware
corporation (the “Borrower”), (ii) the Guarantors from time to time party thereto, (iii) the Lenders from time
to time party thereto, and (iv) Bank of America, N.A., as administrative agent and collateral agent.



 


		6.	Assigned Interest[s]:



	 	Assignor[s]5	 	Assignee[s]6	 	 	Aggregate
 Amount of
 Loans
 for all Lenders7	 	 	Amount of
 Loans
 Assigned8	 	 	Percentage
 Assigned of
 Loans9	 
	 	 	 	 	 	 	 	$	_________	 	 	$	_________	 	 	 	_________	%
	 	 	 	 	 	 	 	$	_________	 	 	$	_________	 	 	 	_________	%





 


		[7.	Trade Date:    __________________]10



Effective Date: __________________,
201_ [TO BE INSERTED BY AGENT AND WHICH SHALL BE THE EFFECTIVE DATE OF DELIVERY OF RECORDATION OF TRANSFER IN THE REGISTER THEREFOR.]


 


The terms set forth in this Assignment
and Assumption are hereby agreed to:


 



5 List each Assignor, as appropriate.


6 List each Assignee, as appropriate.


7 Amounts in this column and
in the column immediately to the right to be adjusted by the counterparties to take into account any payments or prepayments of
Loans made between the Trade Date and the Effective Date.


8 Subject to minimum amount requirements pursuant
to Section 10.06(b)(i) of the Credit Agreement and subject to proportionate amount requirements pursuant to Section 10.06(b)(ii)
of the Credit Agreement.


9 Set forth, to at least 9 decimals,
as a percentage of the Loans of all Lenders.


10 To be completed if the Assignor
and the Assignee intend that the minimum assignment amount is to be determined as of the Trade Date.




 




    	 



    	 



    

 


 


	 	ASSIGNOR[S]1
	 	[NAME OF ASSIGNOR]
	 	 	 
	 	By:	 
	 	Name:	 
	 	Title:	 
	 	 	 
	 	ASSIGNEE[S]2
	 	[NAME OF ASSIGNEE]
	 	 	 
	 	By:	 
	 	Name:	 
	 	Title:	 


 


	[Consented to and]3 Accepted:	 
	 	 
	BANK OF AMERICA, N.A.,	 
	as Agent	 
	 	 	 
	By:	 	 
	Name:	 	 
	Title:	 	 
	 	 	 
	[Consented to:]4	 
	 	 
	SEQUENTIAL BRANDS GROUP, INC., as Borrower
	 	 	 
	By:	 	 
	Name:	 	 
	Title:	 	 


 



1 Add additional signature blocks as needed.


2 Add additional signature blocks as needed.


3 To the extent that the Agent’s
consent is required under Sections 10.06(b)(i)(B) or 10.06(b)(iii)(B) of the Credit Agreement.


4 To the extent that the Borrower’s
consent is required under Sections 10.06(b)(i)(B) and/or 10.06(b)(iii)(A) of the Credit Agreement.


 




    	 



    	 



    

 


ANNEX 1 TO ASSIGNMENT AND ASSUMPTION


 


Reference is
made to the First Lien Term Loan Agreement, dated as of March 28, 2013 (as amended, amended and restated, restated, supplemented
or otherwise modified and in effect from time to time, the “Credit Agreement”), by and among (i)
Sequential Brands Group, Inc., a Delaware corporation (the “Borrower”), (ii) the Guarantors party thereto from
time to time, (iii) the Lenders party thereto from time to time, and (iv) Bank of America, N.A., as administrative agent and collateral
agent (in such capacities, the “Agent”) for its own benefit and the benefit of the other Credit Parties referred
to therein. All capitalized terms used herein and not otherwise defined shall have the same meaning herein as in the Credit Agreement.



 


STANDARD TERMS AND CONDITIONS FOR


ASSIGNMENT AND ASSUMPTION


 


1.         Representations
and Warranties.


 


1.1.      Assignor.
[The][Each] Assignor (a) represents and warrants that (i) it is the legal and beneficial owner of [the][[the relevant] Assigned
Interest, (ii) [the][such] Assigned Interest is free and clear of any lien, encumbrance or other adverse claim and (iii) it has
full power and authority, and has taken all action necessary, to execute and deliver this Assignment and Assumption and to consummate
the transactions contemplated hereby; and (b) assumes no responsibility with respect to (i) any statements, warranties or representations
made in or in connection with the Credit Agreement or any other Loan Document, (ii) the execution, legality, validity, enforceability,
genuineness, sufficiency or value of the Loan Documents or any collateral thereunder, (iii) the financial condition of the Loan
Parties or any other Person obligated in respect of any Loan Document or (iv) the performance or observance by the Loan Parties
or any other Person of any of their respective obligations under any Loan Document.


 


1.2.      Assignee.
[The][Each] Assignee (a) represents and warrants that (i) it has full power and authority, and has taken all action necessary,
to execute and deliver this Assignment and Assumption and to consummate the transactions contemplated hereby and to become a Lender
under the Credit Agreement, (ii) it meets all the requirements to be an Eligible Assignee under the Credit Agreement (subject to
such consents, if any, as may be required under Section 10.06(b) of the Credit Agreement), (iii) from and after the Effective
Date, it shall be bound by the provisions of the Credit Agreement as a Lender thereunder and, to the extent of [the][the relevant]
Assigned Interest, shall have the obligations of a Lender thereunder, (iv) it is sophisticated with respect to decisions to acquire
assets of the type represented by [the][such] Assigned Interest and either it, or the Person exercising discretion in making its
decision to acquire [the][such] Assigned Interest, is experienced in acquiring assets of such type, (v) it has received a copy
of the Credit Agreement, and has received or has been accorded the opportunity to receive copies of the most recent financial statements
delivered pursuant to Section 6.01 thereof, as applicable, and such other documents and information as it deems appropriate
to make its own credit analysis and decision to enter into this Assignment and Assumption and to purchase [the][such] Assigned
Interest, (vi) it has, independently and without reliance upon the Agent, [the][any] Assignor or any other Lender and based on
such documents and information as it has deemed appropriate, made its own credit analysis and decision to enter into this Assignment
and Assumption and to purchase [the][such] Assigned Interest, and (vii) if it is a Foreign Lender, attached hereto is any documentation
required to be delivered by it pursuant to the terms of the Credit Agreement, duly completed and executed by [the][such] Assignee;
and (b) agrees that (i) it will, independently and without reliance upon the Agent, [the][any] Assignor or any other Lender, and
based on such documents and information as it shall deem appropriate at the time, continue to make its own credit decisions in
taking or not taking action under the Loan Documents, and (ii) it will perform in accordance with their terms all of the obligations
which by the terms of the Loan Documents are required to be performed by it as a Lender.


 




    	 



    	 



    

 


2.         Payments.
From and after the Effective Date, the Agent shall make all payments in respect of [the][each] Assigned Interest (including payments
of principal, interest, fees and other amounts) to [the][the relevant] Assignor for amounts which have accrued up to but excluding
the Effective Date and to [the][the relevant] Assignee for amounts which have accrued from and after the Effective Date.


 


3.         General Provisions.
This Assignment and Assumption shall be binding upon, and inure to the benefit of, the parties hereto and their respective successors
and assigns. This Assignment and Assumption may be executed in any number of counterparts, which together shall constitute one
instrument. Delivery of an executed counterpart of a signature page of this Assignment and Assumption by telecopy or other electronic
image scan transmission (e.g., “pdf” or “tif” via e-mail) shall be effective as delivery of a manually
executed counterpart of this Assignment and Assumption. This Assignment and Assumption shall be governed
by, and construed in accordance with, the law of the State of New York.


 


4.         Fees.
Unless waived by the Agent in accordance with Section 10.06(b)(iv) of the Credit Agreement, this Assignment and Assumption
shall be delivered to the Agent with a processing and recordation fee of $3,500.


 




    	 



    	 



    

 


Exhibit
b


 


FORM OF COMPLIANCE CERTIFICATE


 


Date of Certificate: ______________


 


		To:	Bank of America, N.A., as Agent



 


Ladies and
Gentlemen:


 


Reference
is made to the First Lien Term Loan Agreement, dated as of March 28, 2013 (as amended, amended and restated, restated, supplemented
or otherwise modified and in effect from time to time, the “Credit Agreement”) by,
among others, (i) Sequential Brands Group, Inc., a Delaware corporation, as the borrower (the
“Borrower”), (ii) the Guarantors from time to time party thereto, (iii) the Lenders from time to time party
thereto, and (iv) Bank of America, N.A., as administrative agent and collateral agent (in such capacities, the “Agent”)
for its own benefit and the benefit of the other Credit Parties referred to therein. All capitalized terms used herein and not
otherwise defined shall have the same meaning herein as in the Credit Agreement.


 


The undersigned, solely
in his capacity as a duly authorized and acting Responsible Officer of the Borrower, hereby certifies on behalf of the Borrower
and each of the other Loan Parties as of the date hereof the following:


 


(1)          No Defaults or Events of Default.
To his knowledge, since __________ (the date of the last Compliance Certificate delivered pursuant to Section 6.02 of the Credit
Agreement, or, in the case of the first Compliance Certificate delivered after the Closing Date, the Closing Date), and except
as set forth in Appendix I, no Default or Event of Default has occurred.


 


(2)          Financial Calculations.


(a)          Attached hereto as Appendix IIA are reasonably
detailed calculations necessary to determine the Positive Net Income for the period ending _____________.


(b)          Attached hereto as Appendix IIB are reasonably
detailed calculations necessary to determine the Loan to Value Ratio for the period ending __________.


 


(3)          Financial Statements.


 


[Use following paragraph (a)
for Fiscal Year-end financial statements]


 


(a)          Attached hereto as Appendix III are the audited
Consolidated balance sheet of the Borrower and its Subsidiaries, as required by Section 6.01(a) of the Credit Agreement for the
Fiscal Year ended ____________, and the related consolidated statements of income or operations, Shareholders’ Equity and
cash flows for such Fiscal Year, setting forth in each case in comparative form the figures for the previous Fiscal Year, all in
reasonable detail, prepared in accordance with GAAP and accompanied by such materials as are required to be delivered pursuant
to Section 6.01(a) of the Credit Agreement (all of the foregoing, collectively, the “Annual Financial Statements”).


 




    	 



    	 



    

 


[Use following paragraph (b)
for Fiscal Quarter-end financial statements]


 


(b)          Attached hereto as Appendix III are the Consolidated
balance sheet of the Borrower and its Subsidiaries, as required by Section 6.01(b) of the Credit Agreement for the Fiscal Quarter
ended ___________, and the related consolidated statements of income or operations, Shareholders’ Equity and cash flows for
such Fiscal Quarter and for the portion of the Borrower’s Fiscal Year then ended, setting forth
in each case in comparative form the figures for (A) such period set forth in the projections delivered pursuant to Section
6.01(d) of the Credit Agreement, (B) the corresponding Fiscal Quarter of
the previous Fiscal Year and (C) the corresponding portion of the previous Fiscal Year, all in reasonable detail and accompanied
by such materials as are required to be delivered pursuant to Section 6.01(b) of the Credit Agreement (all of the foregoing, collectively,
the “Quarterly Financial Statements”). The Quarterly Financial Statements were prepared in accordance with GAAP
and present fairly the financial condition, results of operations, Shareholders’ Equity and cash flows of the Borrower and
its Subsidiaries, as of the end of such Fiscal Quarter, subject only to normal year-end audit adjustments and the absence of footnotes.


 


[Use following paragraph (c)
for Fiscal Month-end financial statements, if required. Delete if no Fiscal Month-end financial statements are prepared.1]


 


(c)          Attached hereto as Appendix III are the Consolidated
balance sheet of the Borrower and its Subsidiaries, to the extent required by Section 6.01(c) of the Credit Agreement for the Fiscal
Month ended ___________, and the related consolidated statements of income or operations, Shareholders’ Equity and cash flows
for such Fiscal Month, all in reasonable detail and accompanied by such materials as are required
to be delivered pursuant to Section 6.01(c) of the Credit Agreement (all of the foregoing, collectively, the “Monthly
Financial Statements”). The Monthly Financial Statements were prepared in accordance with GAAP and present fairly the
financial condition, results of operations, Shareholders’ Equity and cash flows of the Borrower and its Subsidiaries, as
of the end of such Fiscal Month, subject only to normal year-end audit adjustments and the absence of footnotes.


 


4. No Material Accounting Changes, Etc.
Except as set forth in Appendix IV, there has been no change in generally accepted accounting
principles used in the preparation of the [Annual Financial Statements][Quarterly Financial Statements] [Monthly Financial
Statements] furnished to the Agent for the [Fiscal Year/ Fiscal Quarter/ Fiscal Month] ended
___________. If any such change has occurred, a statement of reconciliation conforming such financial statements to GAAP is attached
hereto in Appendix IV.


 



1 Solely to the extent prepared by the Borrower in
the ordinary course of business.


 




    	 



    	 



    

 


(4)          Management Discussion. Attached
hereto as Appendix V is a discussion and analysis prepared by management of the Borrower with
respect to the [Annual Financial Statements] [Quarterly Financial Statements] [Monthly Financial Statements] delivered
herewith.


 


(5)          New Intellectual Property.
Except as set forth in Appendix VI, neither the Borrower nor any Subsidiary has acquired any new Material Intellectual Property
since the date of the last Compliance Certificate delivered nor has any Intellectual Property become Material Intellectual Property
since the date of the last Compliance Certificate delivered.


 


(6)          New Material Licenses. Except
as set forth in Appendix VII, neither the Borrower nor any Subsidiary has acquired or entered into any new license agreement
that would constitute a Material License since the date of the last Compliance Certificate delivered nor has any license become
a Material License since the date of the last Compliance Certificate delivered.


 


[signature page follows]


 




    	 



    	 



    

 


IN WITNESS WHEREOF,
a duly authorized and acting Responsible Officer of the Borrower, on behalf of the Borrower and each of the other Loan Parties,
has duly executed this Compliance Certificate as of __________________, 201_.


 


	 	BORROWER:
	 	 
	 	SEQUENTIAL BRANDS GROUP, INC.
	 	 	 
	 	By:	 
	 	Name:	 
	 	Title:	 


 




    	 



    	 



    

 


APPENDIX I


 


Except as set forth
below, no Default or Event of Default has occurred.


 




    	 



    	 



    

 


Appendix
IIA


 


Positive Net Income


 


	1.	Consolidated Positive Net Income:	 
	 	 	 	 
	 	(a)	Consolidated Net Income:	 
	 	 	 	 
	 	 	Plus the following, to extent deducted in calculating Consolidated Net Income for such measurement period:	 
	 	 	 	 
	 	(c)	depreciation and amortization expense:	 
	 	 	 	 
	 	(d)	one-time non-cash charges, non-cash compensation, non-cash Federal, state, local and foreign income taxes relating to amortization of intangibles for tax purposes and non-cash interest:	 
	 	 	 	 
	 	(e)	one-time costs relating to any Permitted Acquisition (of the type referred to in clause (ii) of the definition thereof) or fees in connection with any Permitted Indebtedness in an amount  not to exceed $5,000,000 in any Fiscal Year of the Borrower:	 
	 	 	 	 
	 	(f)	wind-down costs related to the acquired Heelys Acquisition and discontinued operations for the twelve month period following the Closing Date in an amount not to exceed $5,000,000 in the aggregate:	 
	 	 	 	 
	 	(g)	Sum of lines 1(a) through 1(f):	 


 


Covenant:


 


The Loan Parties shall not permit Consolidated Positive Net
Income, as calculated on a quarterly basis to be equal to or less than $0.


 


In compliance?          ______
yes               ________ no


 




    	 



    	 



    

 


Appendix
IIB


 


Calculation of Loan to Value 


 


	1.	Outstanding amount of the Obligations as of the period ending ___________________:	 
	 	 	 
	2.	Realizable Orderly Liquidation Value of the registered trademarks of the

Loan Parties as of the date hereof:	 


 


Covenant:


 


The Loan Parties shall not permit the
outstanding amount of the Obligations to be greater than fifty (50%) percent of the Realizable Orderly Liquidation Value of registered
Trademarks of the Loan Parties, as determined pursuant to the most recent appraisal conducted by or on behalf of the Agent with
respect to such registered Trademarks pursuant to Section 6.10(b).


 


In compliance?          ______
yes               ________ no


 




    	 



    	 



    

 


APPENDIX III


 


(Financial Statements)


 


[see attached]


 




    	 



    	 



    

 


APPENDIX IV


 


(GAAP)


 


[see attached]


 




    	 



    	 



    

 


APPENDIX V


 


(MD&A)


 


[see attached]


 




    	 



    	 



    

 


APPENDIX VI


 


(Material Intellectual Property)


 


[see attached]


 




    	 



    	 



    

 


APPENDIX VII


 


(Material License)


 


[see attached]


 




    	 



    	 



    

 


EXHIBIT
c


 


FORM OF CONTINUATION NOTICE


 


Date: ______ __, 201_


 


		To:	Bank of America, N.A., as Agent



 


Ladies and
Gentlemen:


 


Reference is made to
that certain First Lien Term Loan Agreement, dated as of March 28, 2013 (as amended, amended
and restated, restated, supplemented or otherwise modified and in effect from time to time, the “Credit Agreement”)
by and among (i) Sequential Brands Group, Inc., a Delaware corporation, as the borrower (in such
capacity, the “Borrower”), (ii) the Guarantors from time to time party thereto,
(iii) the Lenders from time to time party thereto, and (iv) Bank of America, N.A., as administrative agent and collateral agent.
Capitalized terms used but not defined herein shall have the meanings set forth in the Credit Agreement.


 


The Borrower hereby
requests a continuation of LIBOR Rate Loans


 


	1.	On ________________________________	 
	 	 	 
	2.	In the amount of $ ____________________	 
	 	 	 
	4.	With an Interest Period of _____ months1	 


 


	 	SEQUENTIAL BRANDS GROUP, INC., as Borrower
	 	 	 
	 	By:	 
	 	Name:	 
	 	Title:	 


 



1           The
Borrower may request a continuation of LIBOR Rate Loans with an Interest Period of one (1), two (2), three (3) or six (6) months.
If no election of Interest Period is specified, then the Borrower will be deemed to have specified an Interest Period of one (1)
month.


 




    	 



    	 



    

 


Exhibit
D


Form
of Note


 


	 
	NOTE
	 


 


	$________________	____________, 201_


 


FOR VALUE RECEIVED,
the undersigned (the “Borrower”), promises to pay to the order of _________________________________ (hereinafter,
with any subsequent holders, the “Lender”), c/o Bank of America, N.A., 100 Federal Street, 9th Floor,
Boston, Massachusetts 02110, the principal sum of _____________________________ DOLLARS ($_____________), or, if less, the aggregate
unpaid principal balance of Loans made by the Lender to or for the account of the Borrower pursuant to the First Lien Term Loan
Agreement dated as of March 28, 2013 (as amended, amended and restated, restated, supplemented or otherwise
modified and in effect from time to time, the “Credit Agreement”) by and among (i) the Borrower, (ii)
the Guarantors from time to time party thereto, (iii) the lenders from time to time party thereto (individually,
a “Lender” and, collectively, the “Lenders”), and (iv) Bank of America, N.A., as administrative
agent and collateral agent (in such capacities, the “Agent”) for its own benefit and the benefit of the other
Credit Parties referred to therein, with interest at the rate and payable in the manner stated therein.


 


This is a “Note”
to which reference is made in the Credit Agreement and is subject to all terms and provisions thereof. The principal of, and interest
on, this Note shall be payable at the times, in the manner, and in the amounts as provided in the Credit Agreement and shall be
subject to prepayment and acceleration as provided therein. Capitalized terms used herein and not defined herein shall have the
meanings assigned to such terms in the Credit Agreement.


 


The Agent’s books
and records concerning the Loans, the accrual of interest thereon, and the repayment of such Loans, shall be conclusive evidence
of the indebtedness to the Lender hereunder, absent manifest error.


 


No delay or omission
by the Agent or the Lender in exercising or enforcing any of the Agent’s or such Lender’s powers, rights, privileges,
remedies, or discretions hereunder shall operate as a waiver thereof on that occasion nor on any other occasion. No waiver of any
Event of Default shall operate as a waiver of any other Event of Default, nor as a continuing waiver of any such Event of Default.


 


The Borrower, and each
endorser and guarantor of this Note, waives presentment, demand, notice, and protest, and also waives any delay on the part of
the holder hereof. The Borrower assents to any extension or other indulgence (including, without limitation, the release or substitution
of Collateral) permitted by the Agent and/or the Lender with respect to this Note and/or any Collateral or any extension or other
indulgence with respect to any other liability or any collateral given to secure any other liability of the Borrower or any other
Person obligated on account of this Note.


 




    	 



    	 



    

 


This Note shall be
binding upon the Borrower, and each endorser and guarantor hereof, and upon their respective successors, assigns and representatives,
and shall inure to the benefit of the Lender and its successors, endorsees, and assigns.


 


The liabilities of
the Borrower, and of any endorser or guarantor of this Note, are joint and several, provided, however, the release
by the Agent or the Lender of any one or more such Persons shall not release any other Person obligated on account of this Note.
Each reference in this Note to the Borrower, any endorser, and any guarantor, is to such Person individually and also to all such
Persons jointly.


 


THIS NOTE AND ANY CLAIMS,
CONTROVERSY, DISPUTE OR CAUSE OF ACTION (WHETHER IN CONTRACT OR TORT OR OTHERWISE) BASED UPON, ARISING OUT OF OR RELATING TO THIS
NOTE AND THE TRANSACTIONS CONTEMPLATED HEREBY SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF
NEW YORK.


 


THE Borrower
IRREVOCABLY AND UNCONDITIONALLY AGREES THAT IT WILL NOT COMMENCE ANY ACTION, LITIGATION OR PROCEEDING OF ANY KIND OR DESCRIPTION,
WHETHER IN LAW OR EQUITY, WHETHER IN CONTRACT OR IN TORT OR OTHERWISE, AGAINST THE AGENT, ANY LENDER OR ANY RELATED PARTY OF THE
FOREGOING IN ANY WAY RELATING TO THIS NOTE OR ANY OTHER LOAN DOCUMENT OR THE TRANSACTIONS RELATING HERETO OR THERETO, IN ANY FORUM
OTHER THAN THE COURTS OF THE STATE OF NEW YORK SITTING IN NEW YORK COUNTY AND OF THE UNITED STATES DISTRICT COURT OF THE SOUTHERN
DISTRICT OF NEW YORK, AND ANY APPELLATE COURT FROM ANY THEREOF, AND THE BORROWER AND THE LENDER, BY ITS ACCEPTANCE HEREOF, HERETO
IRREVOCABLY AND UNCONDITIONALLY SUBMITS TO THE JURISDICTION OF SUCH COURTS AND AGREES THAT ALL CLAIMS IN RESPECT OF ANY SUCH ACTION,
LITIGATION OR PROCEEDING MAY BE HEARD AND DETERMINED IN SUCH NEW YORK STATE COURT OR, TO THE FULLEST EXTENT PERMITTED BY LAW, IN
SUCH FEDERAL COURT. THE BORROWER HERETO AGREES THAT A FINAL JUDGMENT IN ANY SUCH ACTION, LITIGATION OR PROCEEDING SHALL BE CONCLUSIVE
AND MAY BE ENFORCED IN OTHER JURISDICTIONS BY SUIT ON THE JUDGMENT OR IN ANY OTHER MANNER PROVIDED BY LAW. NOTHING IN THIS NOTE
OR IN ANY OTHER LOAN DOCUMENT SHALL AFFECT ANY RIGHT THAT ANY CREDIT PARTY MAY OTHERWISE HAVE TO BRING ANY ACTION OR PROCEEDING
RELATING TO THIS AGREEMENT OR ANY OTHER LOAN DOCUMENT AGAINST ANY LOAN PARTY OR ITS PROPERTIES IN THE COURTS OF ANY JURISDICTION.


 




    	 



    	 



    









 


 


THE Borrower
IRREVOCABLY AND UNCONDITIONALLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY LAW, ANY OBJECTION THAT IT MAY NOW OR HEREAFTER HAVE
TO THE LAYING OF VENUE OF ANY ACTION OR PROCEEDING ARISING OUT OF OR RELATING TO THIS NOTE OR ANY OTHER LOAN DOCUMENT IN ANY COURT
REFERRED TO ABOVE. THE BORROWER HEREBY IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY LAW, THE DEFENSE OF AN INCONVENIENT
FORUM TO THE MAINTENANCE OF SUCH ACTION OR PROCEEDING IN ANY SUCH COURT.


 


THE
BORROWER AND THE LENDER, BY ITS ACCEPTANCE HEREOF, IRREVOCABLY CONSENTS TO SERVICE OF PROCESS IN the MANNER PROVIDED FOR NOTICES
IN SECTION 10.02 OF the CREDIT AGREEMENT. NOTHING IN THIS NOTE WILL AFFECT THE RIGHT OF ANY PARTY TO SERVE PROCESS IN ANY OTHER
MANNER PERMITTED BY LAW.


 


The Borrower makes
the following waiver knowingly, voluntarily, and intentionally, and understands that the Agent and the Lender, in the establishment
and maintenance of their respective relationship with the Borrower contemplated by this Note, are each relying thereon. THE BORROWER,
AND THE LENDER, BY ITS ACCEPTANCE HEREOF, HEREBY IRREVOCABLY WAIVES, TO THE FULLEST
EXTENT PERMITTED BY LAW, ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN ANY LEGAL PROCEEDING DIRECTLY OR INDIRECTLY ARISING OUT OF
OR RELATING TO THIS NOTE OR ANY OTHER LOAN DOCUMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY OR THEREBY (WHETHER BASED ON CONTRACT,
TORT OR ANY OTHER THEORY). EACH OF THE BORROWER AND THE LENDER, BY ITS ACCEPTANCE
HEREOF, (A) CERTIFIES THAT NO REPRESENTATIVE, AGENT OR ATTORNEY OF ANY OTHER PERSON HAS REPRESENTED, EXPRESSLY OR OTHERWISE,
THAT SUCH OTHER PERSON WOULD NOT, IN THE EVENT OF LITIGATION, SEEK TO ENFORCE THE FOREGOING WAIVER AND (B) ACKNOWLEDGES THAT
IT HAS BEEN INDUCED TO ENTER INTO THE CREDIT AGREEMENT AND THIS NOTE BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS
HEREIN.


 


[SIGNATURE PAGE FOLLOWS]


 




    	 



    	 



    

 


IN WITNESS WHEREOF,
the Borrower has caused this Note to be duly executed as of the date set forth above.


  


	 	SEQUENTIAL BRANDS GROUP, INC.
	 	 	 
	 	By:	 
	 	Name:	 
	 	Title:	 


 




    	 



    	 



    

 


EXHIBIT E-1


 


FORM OF U.S. TAX
COMPLIANCE CERTIFICATE


 


(For Foreign Lenders
That Are Not Partnerships For U.S. Federal Income Tax Purposes)


 


Reference
is made to that certain First Lien Term Loan Agreement, dated as of March 28, 2013 (as amended, amended and restated, restated,
supplemented or otherwise modified and in effect from time to time, the “Credit Agreement”)
by, among others, (i) Sequential Brands Group, Inc., a Delaware corporation, as the borrower (the
“Borrower”), (ii) the Guarantors from time to time party thereto, (iii) the Lenders from time to time party
thereto, and (iv) Bank of America, N.A., as administrative agent and collateral agent (in such capacities, the “Agent”)
for its own benefit and the benefit of the other Credit Parties referred to therein. All capitalized terms used herein and not
otherwise defined shall have the same meaning herein as in the Credit Agreement.


 


Pursuant to the provisions
of Section 3.01(e) of the Credit Agreement, the undersigned hereby certifies that (i) it is the sole record and beneficial owner
of the Loan(s) (as well as any Note(s) evidencing such Loan(s)) in respect of which it is providing this certificate, (ii) it is
not a bank within the meaning of Section 881(c)(3)(A) of the Code, (iii) it is not a 10 percent shareholder of the Borrower within
the meaning of Section 881(c)(3)(B) of the Code and (iv) it is not a controlled foreign corporation related to the Borrower as
described in Section 881(c)(3)(C) of the Code.


 


The undersigned has
furnished the Agent and the Borrower with a certificate of its non-U.S. Person status on IRS Form W-8BEN. By executing this certificate,
the undersigned agrees that (1) if the information provided on this certificate changes, the undersigned shall promptly so inform
the Borrower and the Agent, and (2) the undersigned shall have at all times furnished the Borrower and the
Agent with a properly completed and currently effective certificate in either the calendar year in which each payment is
to be made to the undersigned, or in either of the two calendar years preceding such payments.


 


	[NAME OF LENDER]
	 
	By:  	 


 


	 	Name: 	 
	 	 	 
	 	Title:	 


 


	Date: ________ __, 201[  ]	 


 




    	 



    	 



    

 


 


EXHIBIT E-2


 


FORM OF U.S. TAX
COMPLIANCE CERTIFICATE


 


(For Foreign Participants
That Are Not Partnerships For U.S. Federal Income Tax Purposes)


 


Reference
is made to that certain First Lien Term Loan Agreement, dated as of March 28, 2013 (as amended, amended and restated, restated,
supplemented or otherwise modified and in effect from time to time, the “Credit Agreement”)
by, among others, (i) Sequential Brands Group, Inc., a Delaware corporation, as the borrower (the
“Borrower”), (ii) the Guarantors from time to time party thereto, (iii) the Lenders from time to time party
thereto, and (iv) Bank of America, N.A., as administrative agent and collateral agent (in such capacities, the “Agent”)
for its own benefit and the benefit of the other Credit Parties referred to therein. All capitalized terms used herein and not
otherwise defined shall have the same meaning herein as in the Credit Agreement.


 


Pursuant to the provisions
of Section 3.01(e) of the Credit Agreement, the undersigned hereby certifies that (i) it is the sole record and beneficial owner
of the participation in respect of which it is providing this certificate, (ii) it is not a bank within the meaning of Section
881(c)(3)(A) of the Code, (iii) it is not a 10 percent shareholder of the Borrower within the meaning of Section 881(c)(3)(B) of
the Code, and (iv) it is not a controlled foreign corporation related to the Borrower as described in Section 881(c)(3)(C) of the
Code.


 


The undersigned has
furnished its participating Lender with a certificate of its non-U.S. Person status on IRS Form W-8BEN. By executing this certificate,
the undersigned agrees that (1) if the information provided on this certificate changes, the undersigned shall promptly so inform
such Lender in writing, and (2) the undersigned shall have at all times furnished such Lender with a properly completed and currently
effective certificate in either the calendar year in which each payment is to be made to the undersigned, or in either of the two
calendar years preceding such payments.


 


	[NAME OF PARTICIPANT]
	 	 
	By:	 


 


	 	Name:	 
	 	 	 
	 	Title:	 


 


	Date: ________ __, 201[  ]	 


 




    	 



    	 



    

 


EXHIBIT E-3


 


FORM OF U.S. TAX
COMPLIANCE CERTIFICATE


 


(For Foreign Participants
That Are Partnerships For U.S. Federal Income Tax Purposes)


 


Reference
is made to that certain First Lien Term Loan Agreement, dated as of March 28, 2013 (as amended, amended and restated, restated,
supplemented or otherwise modified and in effect from time to time, the “Credit Agreement”)
by, among others, (i) Sequential Brands Group, Inc., a Delaware corporation, as the borrower (the
“Borrower”), (ii) the Guarantors from time to time party thereto, (iii) the Lenders from time to time party
thereto, and (iv) Bank of America, N.A., as administrative agent and collateral agent (in such capacities, the “Agent”)
for its own benefit and the benefit of the other Credit Parties referred to therein. All capitalized terms used herein and not
otherwise defined shall have the same meaning herein as in the Credit Agreement.


 


Pursuant to the provisions
of Section 3.01(e) of the Credit Agreement, the undersigned hereby certifies that (i) it is the sole record owner of the participation
in respect of which it is providing this certificate, (ii) its direct or indirect partners/members are the sole beneficial owners
of such participation, (iii) with respect such participation, neither the undersigned nor any of its direct or indirect partners/members
is a bank extending credit pursuant to a loan agreement entered into in the ordinary course of its trade or business within the
meaning of Section 881(c)(3)(A) of the Code, (iv) none of its direct or indirect partners/members is a 10 percent shareholder of
the Borrower within the meaning of Section 881(c)(3)(B) of the Code and (v) none of its direct or indirect partners/members is
a controlled foreign corporation related to the Borrower as described in Section 881(c)(3)(C) of the Code.


 


The undersigned has
furnished its participating Lender with IRS Form W-8IMY accompanied by one of the following forms from each of its partners/members
that is claiming the portfolio interest exemption: (i) an IRS Form W-8BEN or (ii) an IRS Form W-8IMY accompanied by an IRS Form
W-8BEN from each of such partner’s/member’s beneficial owners that is claiming the portfolio interest exemption. By
executing this certificate, the undersigned agrees that (1) if the information provided on this certificate changes, the undersigned
shall promptly so inform such Lender and (2) the undersigned shall have at all times furnished such Lender with a properly completed
and currently effective certificate in either the calendar year in which each payment is to be made to the undersigned, or in either
of the two calendar years preceding such payments.


 


	[NAME OF PARTICIPANT]
	 	 
	By:	 


 


	 	Name:	 
	 	 	 
	 	Title:	 


 


	Date: ________ __, 201[  ]	 


 




    	 



    	 



    

 


EXHIBIT E-4


 


FORM OF U.S. TAX
COMPLIANCE CERTIFICATE


 


(For Foreign Lenders
That Are Partnerships For U.S. Federal Income Tax Purposes)


 


Reference
is made to that certain First Lien Term Loan Agreement, dated as of March 28, 2013 (as amended, amended and restated, restated,
supplemented or otherwise modified and in effect from time to time, the “Credit Agreement”)
by, among others, (i) Sequential Brands Group, Inc., a Delaware corporation, as the borrower (the
“Borrower”), (ii) the Guarantors from time to time party thereto, (iii) the Lenders from time to time party
thereto, and (iv) Bank of America, N.A., as administrative agent and collateral agent (in such capacities, the “Agent”)
for its own benefit and the benefit of the other Credit Parties referred to therein. All capitalized terms used herein and not
otherwise defined shall have the same meaning herein as in the Credit Agreement.


 


Pursuant to the provisions
of Section 3.01(e) of the Credit Agreement, the undersigned hereby certifies that (i) it is the sole record owner of the Loan(s)
(as well as any Note(s) evidencing such Loan(s)) in respect of which it is providing this certificate, (ii) its direct or indirect
partners/members are the sole beneficial owners of such Loan(s) (as well as any Note(s) evidencing such Loan(s)), (iii) with respect
to the extension of credit pursuant to the Credit Agreement or any other Loan Document, neither the undersigned nor any of its
direct or indirect partners/members is a bank extending credit pursuant to a loan agreement entered into in the ordinary course
of its trade or business within the meaning of Section 881(c)(3)(A) of the Code, (iv) none of its direct or indirect partners/members
is a 10 percent shareholder of the Borrower within the meaning of Section 881(c)(3)(B) of the Code and (v) none of its direct or
indirect partners/members is a controlled foreign corporation related to the Borrower as described in Section 881(c)(3)(C) of the
Code.


 


The undersigned has
furnished the Agent and the Borrower with IRS Form W-8IMY accompanied by one of the following forms from each of its partners/members
that is claiming the portfolio interest exemption: (i) an IRS Form W-8BEN or (ii) an IRS Form W-8IMY accompanied by an IRS Form
W-8BEN from each of such partner’s/member’s beneficial owners that is claiming the portfolio interest exemption. By
executing this certificate, the undersigned agrees that (1) if the information provided on this certificate changes, the undersigned
shall promptly so inform the Borrower and the Agent, and (2) the undersigned shall have at all times furnished the Borrower and
the Agent with a properly completed and currently effective certificate in either the calendar year in which each payment is to
be made to the undersigned, or in either of the two calendar years preceding such payments.


 


	[NAME OF LENDER]
	 
	By:	 


 


	 	Name:	 
	 	 	 
	 	Title:	 


 


	Date: ________ __, 201[  ]	 


 




    	 



    	 



    

 


Schedule 1.01


Non-Guarantor Subsidiaries


 


DVS Footwear International, LLC


 




    	 



    	 



    

 


Schedule 2.01


Commitments and Applicable Percentages


 


	Lender	 	Commitment	 	 	Percentage	 
	Bank of America, N.A.	 	$	45,000,000	 	 	 	100	%



 




    	 



    	 



    

Schedule 5.01


Loan Parties Organizational Information


 


	Loan Party	 	State of

Incorporation 

or 

Organization	 	Organization

Type	 	Organization

Number (if 

any)	 	Federal 

Employer 

Identification 

Number
	Sequential Brands

Group, Inc.	 	Delaware	 	corporation	 	0951343	 	86-0449546
	Heelys, Inc.	 	Delaware	 	corporation	 	4184991	 	75-2880496
	Heeling Management Corp.	 	Texas	 	corporation	 	158394700	 	75-2880478
	Heeling Holding Corporation	 	Nevada	 	corporation	 	NVC14317-2000	 	74-2959557
	Heeling Sports Limited	 	Texas	 	limited partnership	 	13521510	 	75-288079
	Versatile Entertainment, Inc.	 	California	 	corporation	 	C2340499	 	95-4807108
	Bella Rose, LLC	 	California	 	limited liability company	 	200513810052	 	87-0745811
	B®and Matter, LLC	 	Delaware	 	limited liability company	 	4510759	 	26-2121258
	William Rast Retail, LLC	 	California	 	limited liability company	 	200923810230	 	27-0919939
	William Rast Licensing, LLC	 	California	 	limited liability company	 	200624310013	 	20-5504304
	William Rast Sourcing, LLC	 	California	 	limited liability company	 	200624310012	 	20-5504372
	William Rast Europe Holdings, LLC	 	Delaware	 	limited liability company	 	4664150	 	26-4443094


 




    	 



    	 



    

 


Schedule 5.08(b)(1)


Owned Real Estate


 


None.


 




    	 



    	 



    

 


Schedule 5.08(b)(2)


Leased Real Estate


 


	Loan Party	 	Address of Leased Real 

Property	 	County	 	Name of Lessor and Contact 

Information 
	Sequential Brands Group, Inc.	 	
        17383 W. Sunset Boulevard,

        Pacific Palisades, CA 90272
	 	Los Angeles	 	
        ECI Sunset, LLC

        c/o Embarcadero Capital Partners, LLC

        1301 Shoreway Road, Suite 250

        Belmont, CA 94002

        Attention: John Hamilton

         

	 	 	
        1065 Avenue of the Americas

        Suite 1705

        New York, NY 10018

         
	 	New York	 	N/A1
	B®and Matter, LLC	 	
        1450 Broadway

        Suite 802

        New York, NY 10018

         
	 	New York	 	
        1450 Broadway, LLC

        c/o Winoker Realty as agent

        462 Seventh Ave

        New York, NY 10018

        Tel: (212) 519-2000

	Heeling Sports Limited	 	
        3200 Belmeade Drive

        Suite 100

        Carrollton, TX 75006

         
	 	Dallas	 	
        Cabot III – TX1M07

        c/o Cabot Properties, Inc.

        One Beacon Street, 17th Floor

        Boston, MA 02108

        Attn: Asset Management



 





 



 


1
This is the company’s new corporate headquarters. Company has right to use but no obligations under a formal lease through
December 31, 2013.


 




    	 



    	 



    

 


Schedule 5.10


Insurance


 


[Attached]


 




    	 



    	 



    

 




 





 



    	 



    	 



    

 





 



    	 



    	 



    

 





 



    	 



    	 



    

 





 



    	 



    	 



    

 





 



    	 



    	 



    

 





 



    	 



    	 



    

 





 



    	 



    	 



    

 





 



    	 



    	 



    

 





 



    	 



    	 



    

 





 



    	 



    	 



    

 





 



    	 



    	 



    

 





 



    	 



    	 



    

 





 



    	 



    	 



    

 





 



    	 



    	 



    









 


Schedule 5.13


Subsidiaries; Other Equity Investments


 


		(a)	Legal name, jurisdiction of incorporation or formation
and authorized Equity Interests of each Subsidiary of each Loan Party.



 


	Subsidiary	 	Owner	 	Jurisdiction of

    Incorporation

    or Formation

    of Subsidiary	 	Type of

    Equity

    Interest	 	Authorized

    no. of

shares	 	Amount of 

    Equity

    Interest

    Owned by

    Loan Party	 	Outstanding

    Options/Warrants/

    Rights of

    Conversion/Purchase
	DVS Footwear International, LLC	 	Sequential Brands Group, Inc.	 	Delaware	 	membership interest	 	N/A	 	60% of membership interest	 	None
	DVS Footwear International, LLC	 	Elan Polo International, Inc.	 	Delaware	 	membership interest	 	N/A	 	40% of membership interest	 	None
	B®and Matter, LLC	 	Sequential Brands Group, Inc.	 	Delaware	 	membership interest	 	N/A	 	100% of membership interest	 	None
	Versatile Entertainment, Inc.	 	Sequential Brands Group, Inc.	 	California	 	common stock	 	90 shares of common stock	 	90 shares of common stock	 	None
	Heelys, Inc.	 	Sequential Brands Group, Inc.	 	Delaware	 	capital stock	 	1,000 shares of common stock	 	100 shares of common stock (100%)	 	None
	Heeling Management Corp.	 	Heelys, Inc.	 	Texas	 	common stock	 	1,000 shares of common stock	 	100 shares of common stock (100%)	 	None
	Heeling Holding Corporation	 	Heelys, Inc.	 	Nevada	 	common stock	 	1,000 shares of common stock	 	100 shares of common stock (100%)	 	None
	Heeling Sports Limited	 	Heeling Management Corp. (General Partner)	 	Texas	 	partnership interest	 	N/A	 	1% general partnership interest	 	None
	Heeling Sports Limited	 	Heeling Holding Corporation (Limited Partner)	 	Texas	 	partnership interest	 	N/A	 	99% limited partnership interest	 	None
	Heeling Sports EMEA SPRL	 	Heelys, Inc.	 	Belgium	 	common stock	 	61,855 shares of common stock	 	61,211 shares of common stock (99%)	 	None
	Heeling Sports EMEA SPRL	 	Heeling Sports Limited	 	Belgium	 	common stock	 	61,855 shares of common stock	 	634 shares of common stock (1%)	 	None


 




    	 



    	 



    

 


	Heeling Sports Japan K.K.	 	Heelys, Inc.	 	Japan	 	common stock	 	15,000 shares  of common stock	 	14,850 shares of common stock (99%) 	 	None
	Heeling Sports Japan K.K.	 	Heeling Sports Limited	 	Japan	 	common stock	 	15,000 shares  of common stock	 	150 shares of common stock (1%) 	 	None
	Bella Rose, LLC	 	Sequential Brands Group, Inc.	 	California	 	membership interest	 	N/A	 	100% of membership interest	 	None
	William Rast Sourcing, LLC	 	Bella Rose, LLC	 	California	 	membership interest	 	N/A	 	82% of membership interest	 	None
	William Rast Sourcing, LLC	 	Tennman WR-T, Inc.	 	California	 	membership interest	 	N/A	 	18% of membership interest	 	None
	William Rast Licensing, LLC	 	Bella Rose, LLC	 	California	 	membership interest	 	N/A	 	82% of membership interest	 	None
	William Rast Licensing, LLC	 	Tennman WR-T, Inc.	 	California	 	membership interest	 	N/A	 	18% of membership interest	 	None
	William Rast Retail, LLC	 	William Rast Sourcing, LLC	 	California	 	membership interest	 	N/A	 	100% of membership interest	 	None
	William Rast Europe Holdings, LLC	 	William Rast Sourcing, LLC	 	Delaware	 	membership interest	 	N/A	 	100% of membership interest	 	None
	William Rast Europe, B.V. 	 	William Rast Europe Holdings, LLC	 	Netherlands	 	membership interest	 	N/A	 	100% of membership interest	 	None


  


		(b)	All equity investments in any other corporation or entity
by each Loan Party, and amounts, if any.



 


	Loan Party	 	Corporation/Entity   	 	Amount of Equity Interest held by Loan 

Party
	Sequential Brands Group, Inc.	 	DVS Footwear International, LLC	 	60%
	Heelys, Inc.	 	Heeling Sports EMEA SPRL	 	99%
	Heeling Sports Limited	 	Heeling Sports EMEA SPRL	 	1%
	Heelys, Inc.	 	Heeling Sports Japan K.K.	 	99%
	Heeling Sports Limited 	 	Heeling Sports Japan K.K.	 	1%


 




    	 



    	 



    

 


		(c)	All outstanding Equity Interests in the Loan Parties.





	Loan Party	 	Owner of Equity Interest	 	Amount of  

Equity Interest

 Owned 	 	
        Outstanding 

Options/Warrants/

        Rights of 

Conversion/Purchase

	Sequential Brands Group, Inc.	 	
        TCP WR Acquisition, LLC

        Other Minority Shareholders
	 	
        34.07%2

        65.93%3
	 	
        Total outstanding options: 397,000

        Total outstanding warrants:

        2,563,922

	B®and Matter, LLC	 	Sequential Brands Group, Inc.	 	100% 	 	None
	Versatile Entertainment, Inc.	 	Sequential Brands Group, Inc.	 	100%	 	None
	Heelys, Inc.	 	Sequential Brands Group, Inc.	 	100%	 	None
	Heeling Management Corp.	 	Heelys, Inc.	 	100%	 	None
	Heeling Holding Corporation	 	Heelys, Inc.	 	100%	 	None
	Heeling Sports Limited	 	Heeling Management Corp.	 	1% 	 	None
	Heeling Sports Limited	 	Heeling Holding Corporation	 	99% 	 	None
	Bella Rose, LLC	 	Sequential Brands Group, Inc.	 	100% 	 	None
	William Rast Sourcing, LLC	 	Bella Rose, LLC	 	82%	 	None
	William Rast Sourcing, LLC	 	Tennman WR-T, Inc.	 	18%	 	None
	William Rast Licensing, LLC	 	Bella Rose, LLC	 	82%	 	None
	William Rast Licensing, LLC	 	Tennman WR-T, Inc.	 	18%	 	None
	William Rast Retail, LLC	 	William Rast Sourcing, LLC	 	100%	 	None
	William Rast Europe Holdings, LLC	 	William Rast Sourcing, LLC	 	100%	 	None


 





 



 


2 TCP WR Acquisition, LLC holds the largest percentage
of outstanding shares of Sequential Brands Group, Inc.


3 Sequential Brands Group, Inc. is a publicly owned
company with numerous individual minority shareholders holding the 64.88% in the aggregate.


 




    	 



    	 



    

 


Schedule 5.17


Material Intellectual Property; Material
Licenses


 


Part 1. Material Intellectual Property 


		1.	Trademarks licensed under the License Agreement, dated
as of June 29, 2012, between DVS Footwear International, LLC and Elan Polo International, Inc.



 


	Trademark	 	United States 

Registration Number	 
	DVS	 	 	2,441,179	 
	DVS	 	 	2,915,817	 
	Miscellaneous Design (Swirl & Oval Design)	 	 	2,926,240	 
	Miscellaneous Design (Swirl & Oval Design)	 	 	2,352,196	 



 


		2.	Trademarks licensed under
JCPenney/William Rast Licensing Agreement, dated as of November 17, 2011, among William Rast Licensing, LLC, as licensor,
William Rast Sourcing, LLC, as licensee, and J. C. Penney Corporation, Inc., as sub-licensee



 


	Trademark	 	United States

 Registration Number	 
	Miscellaneous Design (Dub)	 	 	3,998,462	 
	William Rast & Design	 	 	3,304,303	 
	William Rast	 	 	3,994,216	 
	William Rast	 	 	3,248,653	 



 


		3.	Trademarks licensed under
the Heelys License Agreement – Multi-country Exclusive License, dated as of December 20,
2012, between Sequential Brands Group, Inc., as licensor, and BBC International LLC, as licensee



 


	Trademark	 	United States 

Registration Number	 
	H	 	 	2,684,399	 
	H Heelys	 	 	2,693,898	 
	H Heelys Worldwide	 	 	3,805,558	 
	H Heelys Worldwide	 	 	3,712,007	 
	H	 	 	3,339,689	 
	H	 	 	3,904,490	 
	HEELING	 	 	2,871,922	 
	HEELING	 	 	2,840,485	 
	Heelys	 	 	2,720,347	 
	Heelys	 	 	3,679,845	 
	Heelys	 	 	2,698,390	 
	H X2	 	 	3,959,241	 
	MISCELLANEOUS DESIGN POWER SYMBOL	 	 	3,578,567	 
	N	 	 	3,949,037	 
	Nano	 	 	3,952,197	 
	N Nano	 	 	3,949,036	 
	Soap	 	 	2,361,034	 
	Soap	 	 	2,190,714	 
	Design (grippy man logo)	 	 	4,099,703	 
	Sidewalk Sports	 	 	4,310,384	 



 




    	 



    	 



    

 


		4.	Trademarks licensed under
the License Agreement, dated as of January 1, 2004, between B®and Matter, LLC (as transferee
of all rights in and to the Trademarks of L.C. Licensing, Inc.) and G-III Apparel Group, Ltd. (as transferee of the rights
as a licensee of Winlit Group, Ltd.)



 


	Trademark	 	United States

 Registration Number	 
	Ellen Tracy	 	 	1,780,391	 
	Ellen Tracy	 	 	3,112,534	 



 


		5.	Trademarks licensed under
(i) the Agreement, dated as of December 22, 2008, between B®and Matter, LLC, as licensor, and Charles Komar & Sons,
Inc., as licensee and (ii) License Agreement, dated as of December 7, 2009, between B®and Matter, LLC, as licensor, and Charles
Komar & Sons, Inc., as licensee.



 


	Trademark	 	United States

 Registration Number	 
	Ellen Tracy	 	 	1,780,391	 
	Ellen Tracy	 	 	3,112,534	 



 


		6.	Trademarks licensed under
(i) Pacific Alliance – Ellen Tracy Women’s Sportswear and Active Agreement, dated as of May 16, 2011, between
B®and Matter, LLC, as licensor, and Pacific Alliance USA Inc., as licensee and (ii) Ellen Tracy License Agreement –
Europe, dated as of December 5, 2011, between B®and Matter, LLC, as licensor, and LF Europe Limited, as licensee.



 


	Trademark	 	United States

 Registration Number	 
	Ellen Tracy	 	 	1,780,391	 
	Ellen Tracy	 	 	3,112,534	 
	Ellen Tracy (application)	 	 	77/679,016	 



 


Part 2. Material Licenses


 


		1.	License Agreement, dated as of June 29, 2012, between
DVS Footwear International, LLC and Elan Polo International, Inc.



 


		2.	JCPenney/William Rast Licensing Agreement, dated as of
November 17, 2011, among William Rast Licensing, LLC, as licensor, William Rast Sourcing, LLC, as licensee, and J. C. Penney Corporation,
Inc., as sub-licensee.



 


		3.	Heelys License Agreement – Multi-country Exclusive
License, dated as of December 20, 2012, between Sequential Brands Group, Inc., as licensor,
and BBC International LLC, as licensee.



 




    	 



    	 



    

 


		4.	License Agreement, dated as of January 1, 2004, between
B®and Matter, LLC (as transferee of all rights in and to the Trademarks of L.C. Licensing, Inc.)
and G-III Apparel Group, Ltd. (as transferee of the rights as a licensee of Winlit Group, Ltd.), as amended by that certain
letter agreement, dated as of June 7, 2006, as further amended by that certain Second Amendment of License Agreement, dated as
of July 26, 2007, as further amended by that certain Amendment, dated as of November 1, 2009, and as further amended by that certain
August 2, 2010.



 


		5.	Agreement, dated as of December 22, 2008, between B®and
Matter, LLC, as licensor, and Charles Komar & Sons, Inc., as licensee, as amended by that certain Amendment, dated as of December
7, 2009, and as further amended by that certain letter agreement, dated as of June 14, 2011.



 


		6.	License Agreement, dated as of December 7, 2009, between
B®and Matter, LLC, as licensor, and Charles Komar & Sons, Inc., as licensee, as amended by that certain letter agreement,
dated as of August 3, 2011, and as further amended by that certain letter agreement, dated as of August 28, 2012.



 


		7.	Pacific Alliance – Ellen Tracy Women’s Sportswear
and Active Agreement, dated as of May 16, 2011, between B®and Matter, LLC, as licensor, and Pacific Alliance USA Inc., as
licensee, as amended by that certain Amendment, dated as of July, 2012.



 


		8.	Ellen Tracy License Agreement – Europe, dated as
of December 5, 2011, between B®and Matter, LLC, as licensor, and LF Europe Limited, as licensee.



 




    	 



    	 



    

 








 


Schedule 5.21


Deposit Accounts


 


	Loan Party	 	Legal Name of

 Depositary	 	Address of Depositary	 	Account

 number	 	Contact person at

 depositary
	Sequential Brands Group, Inc.	 	Israel Discount Bank	 	
        511 Fifth Avenue

        New York, NY 10017
	 	03-6887-6	 	
        James Morton

        (212) 551-8723

	Versatile Entertainment, Inc.	 	Bank of the West	 	
        P.O. Box 2830

        Omaha, NE 68103-2830
	 	026-470922	 	(800) 488-2265
	Versatile Entertainment, Inc.	 	Bank of the West	 	
        P.O. Box 2830

        Omaha, NE 68103-2830
	 	648-034304	 	(800) 488-2265
	Versatile Entertainment, Inc.	 	Bank of the West	 	
        P.O. Box 2830

        Omaha, NE 68103-2830
	 	027-942300	 	(800) 488-2265
	Versatile Entertainment, Inc. 	 	Bank of the West	 	
        P.O. Box 2830

        Omaha, NE 68103-2830
	 	648-034288	 	(800) 488-2265
	Versatile Entertainment, Inc.	 	Israel Discount Bank	 	
        511 Fifth Avenue

        New York, NY 10017
	 	03-6888-4	 	
        James Morton

        (212) 551-8723

	B®and Matter, LLC	 	Israel Discount Bank	 	
        511 Fifth Avenue

        New York, NY 10017
	 	03-4789-9	 	
        James Morton

        (212) 551-8723

	Heelys, Inc.	 	Bank of Texas	 	
        5956 Sherry Lane, Suite 600

        Dallas, TX 75225
	 	
        8093025187

         
	 	
        Erin Davis

        (212) 987-8826

        edavis@bankoftexas.com

	Heeling Sports Limited	 	Bank of Texas	 	
        5956 Sherry Lane, Suite 600

        Dallas, TX 75225
	 	
        8093204223

         
	 	
        Erin Davis

        (212) 987-8826

        edavis@bankoftexas.com

	William Rast Licensing LLC	 	Bank of the West	 	
        P.O. Box 2830

        Omaha, NE 68103-2830
	 	010-876797	 	(800) 488-2265
	William Rast Sourcing LLC	 	Bank of the West	 	
        P.O. Box 2830

        Omaha, NE 68103-2830
	 	648-034270	 	(800) 488-2265
	William Rast Sourcing LLC	 	Bank of the West	 	
        P.O. Box 2830

        Omaha, NE 68103-2830
	 	648-039352	 	(800) 488-2265
	William Rast Europe Holdings LLC	 	Bank of the West	 	
        P.O. Box 2830

        Omaha, NE 68103-2830
	 	648-043560	 	(800) 488-2265
	William Rast Retail, LLC	 	Bank of the West	 	
        P.O. Box 2830

        Omaha, NE 68103-2830
	 	648-043958	 	(800) 488-2265
	William Rast Retail, LLC	 	Bank of the West	 	
        P.O. Box 2830

        Omaha, NE 68103-2830
	 	648-043966	 	(800) 488-2265
	William Rast Retail, LLC	 	Bank of the West	 	
        P.O. Box 2830

        Omaha, NE 68103-2830
	 	648-043974	 	(800) 488-2265
	William Rast Retail, LLC	 	Bank of the West	 	
        P.O. Box 2830

        Omaha, NE 68103-2830
	 	648-043990	 	(800) 488-2265


 




    	 



    	 



    

 


Schedule 5.23


Material Contracts


 


		1.	Agreement and Plan of Merger dated as of December 7, 2012 among Heelys, Inc., a Delaware corporation, Sequential Brands Group,
Inc., a Delaware corporation and Wheels Merger Sub Inc., a Delaware corporation.



 


		2.	Purchase Agreement dated as of March 28, 2013 by and among Sequential Brands Group, Inc., a corporation incorporated under
the laws of Delaware and ETPH Acquisition, LLC, a limited liability company organized under the laws of Delaware.



 


		3.	Royalty Agreement, dated as of October 2011, by and among Tennman WR-T, Inc., a Delaware corporation, William Rast Sourcing,
LLC, a California limited liability company and William Rast Licensing, LLC, a California limited liability company.



 


		4.	Employment Agreement, dated as of November 19, 2012, by and between Sequential Brands Group, Inc. and Yehuda Shmidman.



 


		5.	Employment Agreement, to be entered into, by and between Sequential Brands Group, Inc. and Gary Klein.



 


		6.	Management Services Agreement, to be entered into, by and between Sequential Brands Group, Inc. and Tengram Capital Management,
L.P.



 




    	 



    	 



    

 


Schedule 7.01


Existing Liens


 


	Jurisdiction	 	Type	 	Secured Party	 	Filing Number	 	Filing Date	 	Description of 

Collateral
	 	 	 	 	 	 	 	 	 	 	 
	1.    Versatile Entertainment, Inc.  	 	 
	California, SOS	 	UCC	 	Dell Financial Services L.P.	 	
        Original: 07-7107675646

        Continuation: 12-73008558
	 	
        Original: 03/26/2007

        Continuation: 02/13/2012
	 	Computer equipment and peripherals pursuant to that certain revolving credit Account #6879450212001360111, dated March 15, 2007.
	2.    William Rast Sourcing, LLC  	 	 
	California, SOS	 	UCC	 	Rosenthal & Rosenthal, Inc.	 	
        Original: 10-7247131228

        Amendment: 12-72999297
	 	
        Original: 10/04/2010

        Amendment: 02/06/2012

        Amendment: 3/22/2013
	 	(i) All accounts receivables provided for in that certain Factoring Agreement, dated as of September 29, 2010, by and between William Rast Sourcing, LLC and Rosenthal & Rosenthal, Inc. arising on or prior to February 1, 2012 which are either (x) no longer outstanding as of February 1, 2012 or (y) evidenced by invoices #0457182 or 0457183 in the total face amount of $4,015.21, (ii) any goods which by sale resulted in such accounts receivable; and (iii) the proceeds of any such accounts receivable or goods.


 




    	 



    	 



    

 


Schedule 7.02


Existing Investments


 


		1.	Sequential Brands Group, Inc. owns 60% of the membership interest in DVS Footwear International, LLC.



 




    	 



    	 



    

 


Schedule 7.03


Existing Indebtedness


 


None.


 




    	 



    	 



    

 


Schedule 10.02


Agent’s Office; Certain Addresses
for Notices


 


	Agent
	Bank of America, N.A.
	100 Federal Street, 9th Floor
	Boston, Massachusetts 02110
	Attention:	Mr. Andrew Cerussi
	Telephone:	(617) 434-9398
	Facsimile:	(617) 310-2686
	E-mail: andrew.cerussi@baml.com
	 
	with a copy to:
	 
	Riemer & Braunstein LLP
	Three Center Plaza
	Boston, Massachusetts 02108
	Attention:	David S. Berman, Esq.
	Telephone:	(617) 523-9000
	Facsimile:	(617) 692-3550
	E-mail:	dberman@riemerlaw.com
	 
	 
	Loan Parties
	Sequential Brands Group, Inc.
	1065 Avenue of Americas
	Suite 1705
	New York, NY 10018
	Attention:	Mr. Charlie Bang
	Telephone:	(646) 395-4930
	Facsimile:	(646) 395-4901
	E-Mail:	cbang@brand-matter.com
	Website:	www.sequentialbrandsgroup.com