Exhibit 10.4


 


Reference is made to the Amended and
Restated Intercreditor Agreement, dated as of August 1, 2017, between CITIBANK, N.A., as Priority Lien Agent (as defined therein),
and DELAWARE TRUST COMPANY, as Second Lien Collateral Agent (as defined therein) (the “Intercreditor Agreement”).
Each Person that is secured hereunder, by accepting the benefits of the security provided hereby, (i) consents (or is deemed
to consent), to the subordination of Liens provided for in the Intercreditor Agreement, (ii) agrees (or is deemed to agree) that
it will be bound by, and will take no actions contrary to, the provisions of the Intercreditor Agreement, (iii) authorizes (or
is deemed to authorize) the Second Lien Collateral Agent on behalf of such Person to enter into, and perform under, the Intercreditor
Agreement and (iv) acknowledges (or is deemed to acknowledge) that a copy of the Intercreditor Agreement was delivered, or made
available, to such Person.


 


Notwithstanding any other provision
contained herein, this Security Agreement, the Liens created hereby and the rights, remedies, duties and obligations provided for
herein are subject in all respects to the provisions of the Intercreditor Agreement and, to the extent provided therein, the applicable
Security Documents (as defined in the Intercreditor Agreement). In the event of any conflict or inconsistency between the provisions
of this Security Agreement and the Intercreditor Agreement, the provisions of the Intercreditor Agreement shall control.


 


AMENDED AND RESTATED SECOND LIEN PLEDGE
AND SECURITY AGREEMENT


 


THIS AMENDED AND RESTATED
SECOND LIEN PLEDGE AND SECURITY AGREEMENT (as same may be amended, amended and restated, supplemented or modified from time to
time, this “Security Agreement”) is entered into as of August 1, 2017, by each of the undersigned Subsidiaries
and Affiliates of Vanguard Natural Resources, Inc. (f/k/a VNR Finance Corp.), a Delaware corporation (the “Issuer”),
whether as an original signatory hereto or as an Additional Debtor (together with each such Person's respective heirs, executors,
personal representatives, permitted successors and permitted assigns, collectively, “Debtors” and individually,
a “Debtor”), in favor of DELAWARE TRUST COMPANY, as Collateral Trustee (in such capacity, together
with any successor Collateral Trustee, the “Collateral Agent”), for the benefit of itself, the Trustee,
and the Holders (collectively, the “Secured Parties”) of the Senior Secured Second Lien Notes due 2024
(the “Notes”) issued under the Amended and Restated Indenture referred to below.


 


PRELIMINARY STATEMENT


 


Reference is made to the
Second Lien Pledge and Security Agreement dated as of February 10, 2016 (as amended, amended and restated, supplemented or otherwise
modified from time to time prior to the date hereof, the “Original Security Agreement”), entered into
by the Debtors in favor of Delaware Trust Company (as successor to U.S. Bank National Association), as Collateral Agent for the
Secured Parties. At the time of the execution of the Original Security agreement, the Issuer and Vanguard Natural Resources, LLC,
a Delaware limited liability company (“VNR” ), the subsidiary guarantors named therein and Delaware Trust
Company (as successor to U.S. Bank National Association), as Trustee and the Collateral Agent, entered into that certain Indenture
dated as of February 10, 2016 (as same may be amended, supplemented, waived and/or otherwise modified from time to time prior to
the date hereof, the “Original Indenture”), governing the 7.0% Senior Secured Second Lien Notes due 2023
(the “Original Notes”). The Debtors entered into the Original Security Agreement in order to, among other
things, induce the Holders to purchase the Original Notes and to enter into the Original Indenture.


 


On February 1, 2017,
VNR, the Issuer, and certain affiliates (such affiliates, collectively with VNR and the Issuer, the “Original Debtors”)
filed voluntary petitions with the United States Bankruptcy Court for the Southern District of Texas, Houston Division (the “Bankruptcy
Court”) for relief under Chapter 11 of Title 11 of the United States Code and commenced their chapter 11 proceedings.


 




     

     


    

 


The Original Debtors
shall emerge from bankruptcy on the date hereof upon the effectiveness of the Debtors’ Modified Second Amended Joint Plan
of Reorganization Under Chapter 11 of the Bankruptcy Code (as amended, supplemented or otherwise modified from time to time prior
to the date hereof, the “Plan of Reorganization”), which Plan of Reorganization has been confirmed by
order of the Bankruptcy Court entered on July 18, 2017 (the “Confirmation Order”).


 


Pursuant to the terms
of the Plan of Reorganization and the Confirmation Order, the Original Indenture has been amended and restated on the terms and
conditions set forth in that certain Amended and Restated Indenture dated as of August 1, 2017, by and among the Issuer, the Guarantors
party thereto, the Trustee, and the Collateral Agent (as may be further amended, amended and restated, supplemented, or otherwise
modified and in effect from time to time, the “Amended and Restated Indenture”). Pursuant to the Amended
and Restated Indenture, the Issuer has issued the Notes.


 


It is the intent of the
parties hereto that this Security Agreement not constitute a novation of the obligations and liabilities of the parties under the
Original Security Agreement and that this Security Agreement amend and restate in its entirety the Original Security Agreement
and re-evidence the obligations under the Original Security Agreement as contemplated hereby.


 


It is the intent of the
Debtors to confirm that all obligations under the Original Security Agreement, as such obligations are amended and restated hereby,
shall continue in full force and effect and that, from and after the date hereof, all references to a “Second Lien Pledge
and Security Agreement” contained in the Security Documents shall be deemed to include, without limitation, this Security
Agreement.


 


ACCORDINGLY, each Debtor
hereby agrees with the Collateral Agent for the benefit of the Secured Parties as follows:


 


ARTICLE
I



DEFINITIONS


 


1.1           Terms
Defined in Indenture. All capitalized terms used herein and not otherwise defined shall have the meanings assigned to such
terms in the Amended and Restated Indenture.


 


1.2           Terms
Defined in New York Uniform Commercial Code. Terms defined in the UCC which are not otherwise defined in this Security Agreement
or the Amended and Restated Indenture are used herein as defined in the UCC as in effect on the date hereof.


 


1.3           Definitions
of Certain Terms Used Herein. As used in this Security Agreement, in addition to the terms defined in the introductory paragraph
and in the Preliminary Statement, the following terms shall have the following meanings:


  


"Accounts"
shall have the meaning set forth in Article 9 of the UCC.


 


"Account Debtor"
means any Person who is or who may become obligated to a Debtor under, with respect to, or on account of an Account.


 


"Act of Parity
Lien Debtholders" as defined in the Collateral Trust Agreement.


 


"Article"
means a numbered article of this Security Agreement, unless another document is specifically referenced.


 




     

     


    

 


"Chattel Paper"
shall have the meaning set forth in Article 9 of the UCC.


 


"Collateral"
means all of a Debtor’s rights, titles and interests in, to and under all of the following Property, whether now
owned by, or owing to, or hereafter acquired by or arising in favor of a Debtor, and regardless of where located and, in each
case, all Supporting Obligations and all accessions to, substitutions and replacements for, Proceeds and products of the
following, together with all books and records, customer lists, credit files, computer files, programs, printouts and other
computer materials and records related thereto and any General Intangibles at any time evidencing or relating to any of the
following and all collateral security and guarantees given by any Person with respect to any of the following: all Accounts,
Chattel Paper, Commercial Tort Claims, Deposit Accounts (including all funds, certificates, checks, drafts, wire transfer
receipts, and other earnings, profits, or other proceeds from time to time representing, evidencing, deposited into, or held
in Deposit Accounts), Securities Accounts, Commodities Accounts, and all other demand, deposit, time, savings, cash
management, passbook and similar accounts maintained by a Debtor with any bank or other financial institution, all Security
Entitlements in any or all of the foregoing and all monies, securities, Instruments and other investments deposited or
required to be deposited in any of the foregoing, Documents, Equipment, Financial Assets, Fixtures, Franchises, Franchise
Agreements, General Intangibles, Health Care Insurance Receivables, Instruments, Intellectual Property, Inventory, Investment
Property, Letter of Credit Rights, Pledged Equity, Securities, Stock Rights, all other personal property not otherwise
described in the foregoing, in each case, now owned or at any time hereafter acquired by a Debtor or in which a Debtor
now has or at any time in the future may acquire any right, title or interest.


 


"Commercial
Tort Claims" shall have the meaning set forth in Article 9 of the UCC.


 


"Control"
shall have the meaning set forth in Article 8 or, if applicable, in Section 9-104, 9-105, 9-106 or 9-107, as applicable, of the
UCC.


 


"Debtor"
has the meaning attributed thereto in the first paragraph of this Security Agreement.


 


"Deposit Accounts"
shall have the meaning set forth in Article 9 of the UCC and includes, without limitation, those Deposit Accounts identified on
Schedule 1.


 


"Documents"
shall have the meaning set forth in Article 9 of the UCC.


 


"Electronic
Chattel Paper" shall have the meaning set forth in Article 9 of the UCC.


 


"Equipment"
shall have the meaning set forth in Article 9 of the UCC.


 


"Excluded
Property" means the following:


 


(1)         any
lease (other than an oil and gas lease), license, contract or agreement to which a Debtor is a party or any of its rights
or interests thereunder if and only if for so long as the grant of a lien or security interest under this Security Agreement
will constitute or will result in a termination under, or a default or a breach thereof that would give the other party
thereto (excluding any Affiliates of a Debtor) the right to terminate any such lease, license, contract or agreement (other
than (a) to the extent that any such term would be rendered ineffective pursuant to Sections 9-406, 9-407, 9-408 or 9-409 of
the UCC or any other applicable law or principles of equity, or (b) to the extent such other party consents to the grant of
such lien or security interest on such lease, license, contract or agreement);


 




     

     


    

 


 


(2)         any
Equity Interests of a Foreign Subsidiary, or any Domestic Subsidiary that has no material assets other than the Equity Interests
of one or more Foreign Subsidiaries (such Domestic Subsidiary being a ‘FSHCO’) in excess of 65% of the
voting rights of all outstanding Equity Interests of such Foreign Subsidiary or FSHCO and any Equity Interests issued by any Foreign
Subsidiaries or any FSHCO other than Foreign Subsidiaries and FSHCOs directly owned by a Debtor; and


 


(3)         any
intent-to-use trademark or service mark application to the extent, if any, that, and solely during the period, if any, in which,
the grant of a security interest used therein would impair the validity or enforceability of such intent-to-use trademark or
service mark application under applicable federal law;


 


provided that, the Proceeds,
substitutions or replacements of any Excluded Property referred to above shall not constitute “Excluded Property” solely
by virtue of being Proceeds, substitutions or replacements thereof but shall constitute “Excluded Property” only to
the extent that such Proceeds, substitutions or replacements otherwise independently constitute Excluded Property hereunder.


 


"Exhibit"
refers to a specific exhibit to this Security Agreement, unless another document is specifically referenced.


 


"Financial
Assets" shall have the meaning set forth in Article 8 of the UCC.


 


"Fixtures"
shall have the meaning set forth in Article 9 of the UCC.


 


"Franchise"
means each branded concept now or hereafter operated or franchised by a Debtor.


 


"Franchise
Agreement" means each agreement, including each franchise agreement, license agreement, subfranchise agreement, sublicense
agreement, master franchise agreement, development agreement and reserved area agreement, now existing or hereafter entered into,
that grants or purports to grant to a Debtor or its Subsidiaries the right to operate or license others to operate or to develop
within a geographic area a Franchise or to use any Mark in connection with the operation of a Franchise or similar business.


 


"Franchisor"
means any third party, including franchisors, licensors, subfranchisors, sublicensors, master franchisors and developers with whom
a Debtor now or hereafter has a Franchise Agreement.


 


"General Intangibles"
shall have the meaning set forth in Article 9 of the UCC.


 


"Health Care
Insurance Receivable" means any "health care insurance receivable", as such term is defined in Section 9.102(a)(46)
of the UCC, whether now owned or hereafter acquired by a Debtor and, in any event, shall include, without limitation, any interest
in or claim under a policy of insurance that is a right to payment of a monetary obligation for health care goods or services provided,
whether now owned or hereafter acquired by such Debtor.


 


"Instrument"
means any "instrument", as such term is defined in Section 9.102(a)(47) of the UCC, whether now owned or hereafter
acquired by a Debtor, other than stock and other securities, and in any event, shall include, without limitation, all promissory
notes, drafts, bills of exchange and trade acceptances of such Debtor, whether now owned or hereafter acquired.


 




     

     


    

 


"Intellectual
Property" means all domestic and foreign (a) internet domains and URLs; (b) trademarks, trademark registrations, trademark
applications, service marks, service mark registrations, service mark applications, business marks, brand names, trade names, trade
dress, names, logos and slogans; (c) patents, patent rights, provisional patent applications, patent applications, designs, registered
designs, registered design applications, industrial designs, industrial design applications, industrial design registrations and
inventors’ certificates, including any and all divisions, continuations, continuations-in-part, extensions, substitutions,
renewals, registrations, revalidations, re-examinations, reissues or additions, including supplementary certificates of protection,
of or to any of the foregoing items; (d) copyrights (whether or not registered and including all derivative works, moral rights,
renewals, extensions, reversions and restorations associated with such copyrights, now or hereafter provided by applicable law),
copyright registrations, copyright applications, copyright renewals, original works of authorship fixed in any tangible medium
of expression or fixation, including literary works (including all forms and types of computer software, including all source code,
object code, firmware, development tools, files, records and data, and all documentation related to any of the foregoing), musical,
dramatic, pictorial, graphic and sculptured works; (e) trade secrets, technology, discoveries and improvements, know-how, proprietary
rights, formulae, confidential and proprietary information, research and development information, technical or other data or information,
techniques, customer and vendor lists, unpatented inventions, designs, drawings, procedures, processes, models, materials, methods,
developments, formulations, manuals and systems, whether or not patentable or copyrightable and whether or not such has actual
or potential commercial value and are not available in the public domain; and (f) all other intellectual property or proprietary
rights, in each case whether or not subject to statutory registration or protection.


 


"Intercreditor
Agreement" has the meaning set forth in the preamble.


 


"Inventory"
shall have the meaning set forth in Article 9 of the UCC.


 


"Inventory
Debtor" means any Person who is or who may become obligated to a Debtor under, with respect to, or on account of Inventory.


 


"Investment
Property" means any "investment property", as such term is defined in Section 9.102(a)(49) of the UCC,
whether now owned or hereafter acquired by a Debtor, and, in any event, shall include, without limitation, each of the following,
whether now owned or hereafter acquired by such Debtor: (a) any security, whether certificated or uncertificated; (b) any security
entitlement; (c) any securities account (including, without limitation, those described on Schedule
3); (d) any commodity contract; and (e) any commodity account (including, without limitation, those identified on Schedule
3).


 


"Letter-of-Credit
Right" shall have the meaning set forth in Article 9 of the UCC.


 


"Marks"
means all registered and unregistered trademarks, service marks, domain names and trade names now or hereafter used by
a Debtor.


 


"Other Collateral"
means any property, whether now owned or hereafter acquired by a Debtor, other than real estate, not included within the defined
terms Accounts, Chattel Paper, Documents, Equipment, General Intangibles, Financial Assets Instruments, Letter-of-Credit Rights,
Commercial Tort Claims, Inventory, Investment Property, Pledged Equity, Deposit Accounts, including all funds, certificates, checks,
drafts, wire transfer receipts, and other earnings, profits, or other proceeds from time to time representing, evidencing, deposited
into, or held in Deposit Accounts, and Stock Rights, including, without limitation, all cash on hand and all deposit accounts or
other deposits (general or special, time or demand, provisional or final) with any bank or other financial institution, it being
intended that the Collateral include all property of such Debtor other than real estate.


 


"Pledged Equity"
means, with respect to each Debtor, all of the issued and outstanding Equity Interests in each Domestic Subsidiary and each Foreign
Subsidiary legally or beneficially owned by such Debtor, including the Equity Interests of the Subsidiaries owned by such Debtor
as set forth on Schedule 3, in each case together with the certificates (or other agreements or instruments), if any, representing
such Equity Interests, and all options and other rights, contractual or otherwise, with respect thereto, including, but not limited
to, the following:


 




     

     


    

 


		(1)	all Equity Interests representing a non-cash dividend thereon,
or representing a distribution or return of capital upon or in respect thereof, or resulting from a stock split, revision, reclassification
or other exchange therefor, and any subscriptions, warrants, rights or options issued to the holder thereof, or otherwise in respect
thereof; and



 


		(2)	in the event of any consolidation or merger involving the
issuer thereof and in which such issuer is not the surviving Person, all shares of each class of the Equity Interests of the successor
Person formed by or resulting from such consolidation or merger, to the extent that such successor Person is a direct Subsidiary
of such Debtor.



 


"Proceeds"
means any "proceeds," as such term is defined in Section 9.102(a)(65) of the UCC and, in any event, shall include,
but not be limited to, (a) any and all proceeds of any insurance, indemnity, warranty, or guaranty payable to a Debtor from time
to time with respect to any of the Collateral, (b) any and all payments (in any form whatsoever) made or due and payable to such
Debtor from time to time in connection with any requisition, confiscation, condemnation, seizure, or forfeiture of all or any part
of the Collateral by any Governmental Authority (or any Person acting under color of Governmental Authority), and (c) any and all
other amounts from time to time paid or payable under or in connection with any of the Collateral.


 


"Receivables"
means the Accounts, Chattel Paper, Documents, Investment Property, Instruments, or Commercial Tort Claims, and any other rights
or claims to receive money which are General Intangibles or which are otherwise included as Collateral.


 


"Schedule"
refers to a specific schedule to this Security Agreement, unless another document is specifically referenced.


 


"Section"
means a numbered Section of this Security Agreement, unless another document is specifically referenced.


 


"Secured Obligations"
means the Obligations in respect of the Note Documents, including without limitation any such Obligations incurred or accrued during
the pendency of any bankruptcy, insolvency, receivership or other similar proceeding, whether or not allowed or allowable in such
proceeding.


 


"Security"
shall have the meaning set forth in Article 8 of the UCC.


 


"Stock Rights"
means any securities, dividends or other distributions and any other right or property which a Debtor shall receive or shall become
entitled to receive for any reason whatsoever with respect to, in substitution for or in exchange for any securities or other ownership
interests in a corporation, partnership, joint venture or limited liability company constituting Collateral and any securities,
any right to receive securities and any right to receive earnings, in which such Debtor now has or hereafter acquires any right,
issued by an issuer of such securities.


 


"Tangible Chattel
Paper" shall have the meaning set forth in Article 9 of the UCC.


 


"UCC"
means the Uniform Commercial Code as in effect in the State of New York, as the same has been or may be amended or revised from
time to time, or, if so required with respect to any particular Collateral by mandatory provisions of applicable law, as in effect
in the jurisdiction in which such Collateral is located.


 




     

     


    

 


The foregoing definitions
shall be equally applicable to both the singular and plural forms of the defined terms.


 


ARTICLE
II



GRANT OF SECURITY INTEREST


 


2.1           Security
Interest. Each Debtor hereby pledges, assigns and grants to the Collateral Agent for the benefit of the Secured Parties a continuing
security interest in all of such Debtor's right, title and interest in and to the Collateral of such Debtor to secure the prompt
and complete payment and performance of the Secured Obligations. If the security interest granted hereby in any rights of a Debtor
under any contract included in the Collateral is expressly prohibited by such contract, then the security interest hereby granted
therein nonetheless remains effective to the extent allowed by Article or Chapter 9 of the UCC or other applicable law but
is otherwise limited by that prohibition. The Collateral Agent acknowledges that the attachment of its security interest in any
Commercial Tort Claim of a Debtor as Collateral is subject to such Debtor's compliance with Section 5.13. Each Debtor
acknowledges that the Obligations are owed to various Secured Parties and that each Secured Party is entitled to the benefits of
the security interest created by this Security Agreement.


 


2.2           Debtors
Remain Liable. Notwithstanding anything to the contrary contained herein, (a) each Debtor shall remain liable under the
contracts and agreements included in the Collateral to the extent set forth therein to perform all of its respective duties and
obligations thereunder to the same extent as if this Security Agreement had not been executed, (b) the exercise by the Collateral
Agent of any of its rights hereunder shall not release any Debtor from any of its duties or obligations under the contracts and
agreements included in the Collateral, and (c) the Collateral Agent shall not have any obligation or liability under any of
the contracts and agreements included in the Collateral by reason of this Security Agreement, nor shall the Collateral Agent be
obligated to perform any of the obligations or duties of a Debtor thereunder or to take any action to collect or enforce any claim
for payment assigned hereunder.


 


2.3           Authorization
to File Financing Statements. Each Debtor hereby irrevocably authorizes the Collateral Agent at any time and from time to time
to file in any UCC jurisdiction any initial financing statements and amendments thereto that (a) indicate the Collateral (i) as
all assets of such Debtor or words of similar effect, regardless of whether any particular asset comprised in the Collateral falls
within the scope of Article or Chapter 9 of the UCC, or (ii) as being of an equal or lesser scope with greater detail and
(b) contain any other information required by Subchapter E of Article 9 of the UCC for the sufficiency or filing office acceptance
of any financing statement or amendment, including (A) whether such Debtor is an organization, the type of organization and any
organization identification number issued to such Debtor and (B) in the case of a financing statement filed as a fixture filing
or indicating Collateral as as extracted collateral or timber to be cut, a sufficient description of real property to which the
Collateral relates. Each Debtor hereby irrevocably authorizes the Collateral Agent at any time and from time to time to file in
the United States Patent and Trademark Office, the United States Copyright Office or any other Governmental Authority this Security
Agreement or document of similar import signed by such Debtor (including without limitation a short form of security agreement
satisfactory to the Collateral Agent and such Debtor) or true and correct copy thereof. Each Debtor agrees to furnish any such
information to the Collateral Agent promptly upon request.


 


2.4           Limited
Exclusions. Notwithstanding Section 2.1 or the definitions of “Collateral” or the “Other Collateral”
to the contrary, no Debtor grants a security interest pursuant to this Security Agreement or any other Security Instrument in any
Excluded Property of Debtor (and Excluded Property of any Debtor shall not be Collateral or Other Collateral for any purpose hereunder).


 




     

     


    

 


ARTICLE
III



REPRESENTATIONS AND WARRANTIES


 


Each Debtor represents
and warrants to the Collateral Agent that:


 


3.1           Title,
Authorization, Validity and Enforceability. Such Debtor has good record and marketable title to the Collateral and none of
the Collateral is subject to any security interest, mortgage, deed of trust, pledge, lien, title retention document or encumbrance
of any kind, except for Liens permitted under Section 5.1.6, and has full power and authority to grant to the Collateral
Agent the security interest in such Collateral pursuant hereto. The execution and delivery by each Debtor of this Security Agreement
has been duly authorized, and this Security Agreement constitutes a legal, valid and binding obligation of such Debtor and creates
a security interest which is enforceable against such Debtor in all now owned and hereafter acquired Collateral. (a) Upon the filing
of all UCC financing statements naming each Debtor as “debtor” and the Collateral Agent as “secured party”
and describing the Collateral in the filing offices set forth opposite such Debtor’s name on Schedule 4 hereof, (b)
subject to the terms of the Intercreditor Agreement, upon delivery of all Instruments, Chattel Paper and certificated Pledged Equity
Interests, (c) upon sufficient identification of Commercial Tort Claims, (d) subject to the terms of the Intercreditor Agreement,
upon execution of a control agreement establishing the Collateral Agent’s Control with respect to any Deposit Account, Securities
Account, or Commodity Account, (e) upon consent of the issuer or any nominated person with respect to Letter of Credit Rights,
and (f) to the extent not subject to Article 9 of the UCC, upon recordation of the security interests granted hereunder in Intellectual
Property in the applicable intellectual property registries, including the United States Patent and Trademark Office and the United
States Copyright Office, the security interests granted to the Collateral Agent hereunder constitute valid and perfected first
priority Liens (subject only to Liens permitted under Section 5.1.6).


 


3.2           Conflicting
Laws and Contracts. Neither the execution and delivery by such Debtor of this Security Agreement, the creation and perfection
of the security interest in the Collateral granted hereunder, nor compliance with the terms and provisions hereof will violate
any Governmental Requirement binding on such Debtor or such Debtor's Organizational Documents, the provisions of any indenture,
instrument or agreement to which such Debtor is a party or is subject, or by which it, or its property, is bound, or conflict with
or constitute a default thereunder, or result in the creation or imposition of any Lien pursuant to the terms of any such indenture,
instrument or agreement (other than any Lien of permitted under Section 5.1.6).


 


3.3           Principal
Location. Such Debtor's mailing address, and the location of its chief executive office and of the books and records relating
to the Receivables, are disclosed in Schedule 5.


 


3.4           Property
Locations. Such Debtor's Inventory, Equipment and Fixtures (other than Personal Property as defined in the Mortgages) are located
solely at the locations described in Schedule 5. All of said locations are owned by such Debtor except for locations (i)
which are leased by such Debtor as lessee and designated in Part B of Schedule 5 and (ii) at which Inventory
is held in a public warehouse or is otherwise held by a bailee or on consignment as designated in Part C of Schedule
5, with respect to which Inventory such Debtor has delivered bailment agreements, warehouse receipts, financing statements
or other documents satisfactory to the Collateral Agent to protect the Collateral Agent's security interest in such Inventory.
For avoidance of doubt, this Section 3.4 does not apply to Personal Property as defined in the Mortgages.


 




     

     


    

 


3.5           Deposit,
Commodity, and Securities Account. Schedule 1 correctly identifies all deposit, commodity, and securities accounts owned
by such Debtor and the institutions holding such accounts. No Person other than the Collateral Agent (or the Priority Lien Collateral
Agent in accordance with the Intercreditor Agreement) has control over any Investment Property.


 


3.6           Pledged
Equity and Other Investment Property. Schedule 3 sets
forth a complete and accurate list of the Instruments, Securities and other Investment Property owned by such Debtor. Such Debtor
is the direct and beneficial owner of each Instrument, Security and other type of Investment Property listed on Schedule
3 as being owned by it, free and clear of any Liens, except for Liens permitted under Section 5.1.6. Such Debtor
further represents and warrants that (i) all such Instruments, Securities or other types of Investment Property which are shares
of stock in a corporation or ownership interests in a partnership or limited liability company have been (to the extent such concepts
are relevant with respect to such Instrument, Security or other type of Investment Property) duly and validly issued, are fully
paid and non-assessable and (ii) with respect to any certificates delivered to the Collateral Agent representing an ownership interest
in a partnership or limited liability company, either such certificates are Securities as defined in Article 8 of the UCC of the
applicable jurisdiction as a result of actions by the issuer or otherwise, or, if such certificates are not Securities, such Debtor
has so informed the Collateral Agent so that the Collateral Agent may take steps to perfect its security interest therein as a
General Intangible.


 


3.7           No
Other Names. Except as listed on Schedule 6, such Debtor has not conducted business under any name except the name in
which it has executed this Security Agreement.


 


3.8           No
Event of Default. No Event of Default exists.


 


3.9           No
Financing Statements. No financing statement describing all or any portion of the Collateral which has not lapsed or been terminated
naming such Debtor as debtor has been filed in any jurisdiction except (i) financing statements naming the Collateral Agent
as the secured party, and (ii) financing statements filed with respect to Liens permitted by Section 5.1.6.


 


3.10         Identification
Numbers. Such Debtor's Federal employer identification number and state organizational identification number are listed on
Schedule 7.


 


3.11         Limitations
With Respect to Representations and Warranties. Notwithstanding anything to the contrary in this Security Agreement, the representations,
warranties and covenants made by such Debtor in this Security Agreement with respect to the creation, perfection or priority (as
applicable) of the security interest granted in favor of the Collateral Agent (pursuant to this Security Agreement) shall be deemed
not to apply to Excluded Property.


 


3.12         Reaffirmation.
Each Debtor hereby reaffirms to the Collateral Agent each of the representations, warranties, covenants
and agreements as set forth in the Original Security Agreement with the same force and effect as if each were separately stated
herein and made as of the date hereof.


 


The failure of any of these representations
or warranties or any description of Collateral therein to be accurate or complete shall not impair the security interest in any
such Collateral.


 




     

     


    

 


ARTICLE
IV


 


CONCERNING
INTELLECTUAL PROPERTY


 


4.1           Registrations.
Schedule 2 sets forth a complete and accurate list of (a) the Intellectual Property owned by each Debtor registered with,
or subject to an application for registration with, the United States Patent and Trademark Office, United States Copyright Office,
or any state trademark offices or other foreign offices or agencies, as applicable, and (b) each Franchise operated or franchised
by each Debtor and each Franchise Agreement related thereto. Each Debtor is the direct and beneficial owner of the Intellectual
Property, Franchises and Franchise Agreements listed on Schedule 2
as being owned by it, free and clear of any Liens, except for the Liens permitted under Section 5.1.6.


 


4.2           Intellectual
Property. To the knowledge and belief of each Debtor, all Marks listed on Schedule 2 for such Debtor and all licenses
held by such Debtor related to such Marks constitute all such rights that are required or reasonably necessary for the conduct
of the business of such Debtor as currently conducted. All such Marks (and all applications and registrations therefor) are currently
in compliance in all material respects with all legal requirements (including, without limitation, timely filings, proofs and payments
of all fees), and are valid and enforceable, and are not subject to any filings, fees or other actions falling due within ninety
(90) days after the date hereof. Except as set forth on Schedule 8 or as could not be reasonably expected to result in a
Material Adverse Effect, such Debtor owns or otherwise possesses adequate licenses or other valid rights to use, sell and license,
free and clear of any and all adverse claims (including by current and former employees and contractors), liens, restrictions or
other obligation to pay royalties, honoraria or other fees, any and all Intellectual Property (including without limitation the
Marks) and Franchises used in the conduct of the respective businesses of such Debtor as currently conducted or proposed to be
conducted. No Marks have been within the preceding three (3) years or are now the subject of any claims or litigation and, to the
knowledge of such Debtor, no claims or litigation have been alleged or threatened. Each Debtor has taken all reasonable steps to
maintain, police and protect the Marks owned or used in the operation of such Debtor's businesses. The conduct of each Debtor's
businesses as currently conducted or planned to be conducted does not infringe or otherwise impair or conflict with any Intellectual
Property or other proprietary or personal rights of any third party, and the Intellectual Property owned or licensed by each Debtor
is not being infringed by any third party, except for such infringements, the occurrence of which, individually or in the aggregate,
could not reasonably be expected to have a Material Adverse Effect. There is no litigation or order pending or outstanding, or
to the knowledge of any Debtor, threatened, that seeks to limit or challenge or that concerns the ownership, use, validity or enforceability
of any Marks or any Intellectual Property or Franchises of such Debtor. The consummation of the transactions contemplated hereby
will not result in the alteration, loss or impairment of the validity, enforceability or any Debtor's right to own or use any of
the Intellectual Property used in the conduct of the respective businesses of such Debtor as currently conducted or proposed to
be conducted. Each Debtor has made available to the Collateral Agent a list of all software (other than generally commercially
available, non-custom, off-the-shelf software application programs having a retail acquisition price of less than $5,000) that
is owned or used by such Debtor, and identified which software is owned, otherwise used and/or licensed or otherwise distributed
by such Debtor to any third party, as the case may be.


 




     

     


    

 


4.3           Covenants.
Each Debtor will give prompt notice in writing to the Collateral Agent of the occurrence of any development, financial or otherwise,
which might materially and adversely affect the Intellectual Property, Franchises and Franchise Agreements in the Collateral. If
any Debtor obtains any new registered Intellectual Property or Franchises, or rights thereto or therein, or becomes entitled to
the benefit of any Intellectual Property or Franchises, which are subject to or arise from this Security Agreement, such Debtor
shall give the Collateral Agent written notice thereof within twenty (20) days of the end of the calendar month in which such Debtor
obtains such property or rights, and shall execute and deliver, in form and substance satisfactory to the Collateral Agent, an
amendment to this Security Agreement (or any Exhibit or Schedule hereto) or a security agreement, the terms of which are substantially
similar to this Security Agreement, as requested by the Collateral Agent, describing any such new registered Intellectual Property
or Franchise or Franchise Agreement or license granted. Each Debtor shall: (a) prosecute diligently any patent, copyright or trademark
application at any time pending, which is necessary for the conduct of its business; (b) make application on all new patents, copyrights
and trademarks as it may reasonably deem appropriate; (c) preserve and maintain all rights in all Intellectual Property and Franchises
that are necessary for the conduct of such Debtor's businesses; and (d) use its best efforts to obtain any consents, waivers, or
agreements necessary to enable the Collateral Agent to exercise its remedies with respect to the Collateral. No Debtor shall abandon
any pending patent, copyright or trademark application, or patent, copyright or trademark, or any other Intellectual Property and
Franchises that are necessary for the conduct of its business without the prior written consent of the Collateral Agent. No Debtor
shall, without the Collateral Agent’s consent, amend or otherwise modify any pending application or registration contained
in or covering the Collateral, to the extent such amendment or modification would impair the Liens of the Collateral Agent in the
Collateral.


 


ARTICLE
V



COVENANTS


 


From the date of this
Security Agreement, and thereafter until this Security Agreement is terminated, each Debtor agrees as follows:


 


5.1           General.


 


5.1.1           Inspection.
Such Debtor will permit the Collateral Agent, by its representatives and agents (i) to inspect the Collateral, (ii) to
examine and make copies of the records of such Debtor relating to the Collateral and (iii) to discuss the Collateral and the
related records of such Debtor with, and to be advised as to the same by, such Debtor's officers and employees (and, in the case
of any Receivable, with any Person which is or may be obligated thereon), all at such reasonable times and intervals as Secured
Party may determine, and all at such Debtor’s expense.


 


5.1.2           Taxes.
Such Debtor will pay when due all taxes, assessments and governmental charges and levies upon the Collateral, except those which
are being contested in good faith by appropriate proceedings with adequate reserves being maintained therefor.


 


5.1.3           Records
and Reports; Notification of Event of Default. Such Debtor will maintain complete and accurate books and records with respect
to the Collateral, and furnish to the Collateral Agent such reports relating to the Collateral as the Collateral Agent shall from
time to time request. Such Debtor will give prompt notice in writing to the Collateral Agent of the occurrence of any Event of
Default and of any other development, financial or otherwise, which might materially and adversely affect the Collateral. Such
Debtor shall mark its books and records to reflect the security interest of the Collateral Agent under this Security Agreement.


 


5.1.4           Financing
Statements and Other Actions; Defense of Title. Subject to the Intercreditor Agreement, such Debtor will execute and deliver
to the Collateral Agent all documents and take such other actions as may from time to time be requested by the Collateral Agent
in order to maintain a perfected security interest in and, in the case of Investment Property, Deposit Accounts, Letter-of-Credit-Rights,
and Electronic Chattel Paper, Control of, the Collateral. Such Debtor will take any and all actions necessary to defend title to
the Collateral against all Persons and to defend the security interest of the Collateral Agent in the Collateral and the priority
thereof against any Lien not expressly permitted hereunder.


 




     

     


    

 


5.1.5           Disposition
of Collateral. Such Debtor will not sell, lease, license or otherwise dispose of the Collateral except (i) prior to the
occurrence of an Event of Default, dispositions specifically permitted pursuant to the Amended and Restated Indenture, (ii) until
such time following the occurrence of an Event of Default, as such Debtor receives a notice from the Collateral Agent instructing
such Debtor to cease such transactions, such Debtor may make sales or leases of Inventory in the ordinary course of business, and
(iii) until such time as such Debtor receives a notice from the Collateral Agent pursuant to Article VII following
the occurrence of an Event of Default, such Debtor may use proceeds of Inventory and Accounts collected in the ordinary course
of business.


 


5.1.6           Liens.
Such Debtor will not create, incur, or suffer to exist any Lien on the Collateral except (i) the security interest created
by this Security Agreement, and (ii) other Liens permitted pursuant to the Amended and Restated Indenture.


 


5.1.7           Change
in Location, Jurisdiction of Organization or Name. Such Debtor will not (i) have any Inventory, Equipment or Fixtures
or proceeds or products thereof (other than Inventory and proceeds thereof disposed of as permitted by Section 5.1.5)
at a location other than a location specified in Schedule 5, (ii) maintain records relating to the Receivables at a
location other than at the location specified on Schedule 5, (iii) maintain a place of business at a location other
than a location specified on Schedule 5, (iv) change its name or taxpayer identification number, (v) change its
mailing address, or (vi) change its jurisdiction of organization, unless such Debtor shall have given the Collateral Agent
not less than 30 days' prior written notice thereof, and a Responsible Officer of such Debtor shall have delivered to the Collateral
Agent an officer’s certificate certifying that the board of directors or board of managers, as applicable, of such Debtor
has determined in good faith that such change will not adversely affect the validity, perfection or priority of the Collateral
Agent's security interest in the Collateral.


 


5.1.8           Other
Financing Statements. Such Debtor will not sign or authorize the signing on its behalf of any financing statement naming it
as debtor covering all or any portion of the Collateral, except as permitted by Section 5.1.6.


 


5.2           Receivables.
This Section 5.2 does not apply to Personal Property as defined in the Mortgages.


 


5.2.1           Certain
Agreements on Receivables. Such Debtor will not make or agree to make any discount, credit, rebate or other reduction in the
original amount owing on a Receivable that constitutes Collateral or accept in satisfaction of a Receivable that constitutes Collateral
less than the original amount thereof, except that, prior to the occurrence of an Event of Default, such Debtor may reduce the
amount of Accounts arising from the sale of Inventory in accordance with its present policies and in the ordinary course of business.


 


5.2.2           Collection
of Receivables. Except as otherwise provided in this Security Agreement, such Debtor will, at such Debtor’s sole expense,
collect all amounts due or hereafter due to such Debtor under the Receivables that constitute Collateral and enforce such Debtor’s
rights with respect to the Receivables that constitute Collateral.


 


5.2.3           Delivery
of Invoices. Subject to the Intercreditor Agreement, such Debtor will deliver to the Collateral Agent immediately upon its
request after the occurrence of an Event of Default duplicate invoices with respect to each Account bearing such language of assignment
as the Collateral Agent shall specify.


 




     

     


    

 


5.2.4           Disclosure
of Counterclaims on Receivables. If (i) any discount, credit or agreement to make a rebate or to otherwise reduce the
amount owing on a Receivable that constitutes Collateral exists other than trade discounts granted in the ordinary course of business
or (ii) if, to the knowledge of such Debtor, any dispute, setoff, claim, counterclaim or defense exists or has been asserted
or threatened with respect to a Receivable that constitutes Collateral, such Debtor will disclose such fact to the Collateral Agent
in writing in connection with the inspection by the Collateral Agent of any record of such Debtor relating to such Receivable and
in connection with any invoice or report furnished by such Debtor to the Collateral Agent relating to such Receivable.


 


5.3           Inventory
and Equipment. This Section 5.3 does not apply to Personal Property as defined in the Mortgages.


 


5.3.1           Maintenance
of Goods. Such Debtor will do all things necessary to maintain, preserve, protect and keep the Inventory and the Equipment
in good repair and working and saleable condition.


 


5.3.2           Insurance.
Such Debtor will maintain insurance on the Collateral for the benefit of the Collateral Agent in accordance with the Amended and
Restated Indenture.


 


5.3.3           Safekeeping
of Inventory; Inventory Covenants. The Collateral Agent shall not be responsible for (i) the safekeeping of the Inventory;
(ii) any loss or damage thereto or destruction thereof occurring or arising in any manner or fashion from any cause; (iii) any
diminution in the value of Inventory or (iv) any act or default of any carrier, warehouseman, bailee or forwarding agency
or any other Person in any way dealing with or handling the Inventory, except to the extent that such Debtor incurs any loss, cost,
claim or damage from any of the foregoing as a result of the gross negligence or willful misconduct of the Collateral Agent as
determined by a court of competent jurisdiction in final and nonappealable judgment. All risk of loss, damage, distribution or
diminution in value of the Inventory shall, except as noted in the previous sentence, be borne by such Debtor.


 


5.4           Instruments,
Securities, Chattel Paper, and Documents. Subject to the Intercreditor Agreement, such Debtor will (i) deliver to the
Collateral Agent immediately upon execution of this Security Agreement the originals of all Chattel Paper, Securities and Instruments
(if any then exist), (ii) hold in trust for the Collateral Agent upon receipt and immediately thereafter deliver to the Collateral
Agent any Chattel Paper, Securities and Instruments constituting Collateral, and (iii) upon the Collateral Agent's request,
deliver to the Collateral Agent (and thereafter hold in trust for the Collateral Agent upon receipt and immediately deliver to
the Collateral Agent) any Document evidencing or constituting Collateral.


 


5.5           Uncertificated
Securities and Certain Other Investment Property. Subject to the Intercreditor Agreement, such Debtor will permit the Collateral
Agent from time to time to cause the appropriate issuers (and, if held with a securities intermediary, such securities intermediary)
of uncertificated securities or other types of Investment Property not represented by certificates which are Collateral to mark
their books and records with the numbers and face amounts of all such uncertificated securities or other types of Investment Property
not represented by certificates and all rollovers and replacements therefor to reflect the Lien of the Collateral Agent granted
pursuant to this Security Agreement. Subject to the Intercreditor Agreement, such Debtor will take any actions necessary to cause
(i) the issuers of uncertificated securities which are Collateral and which are Securities and (ii) any financial intermediary
which is the holder of any Investment Property, to cause the Collateral Agent to have and retain Control over such Securities or
other Investment Property. Subject to the Intercreditor Agreement, without limiting the foregoing, such Debtor will, with respect
to Investment Property held with a financial intermediary, cause such financial intermediary to enter into a control agreement
with the Collateral Agent in form and substance satisfactory to the Collateral Agent.


 




     

     


    

 


5.6           Stock
and Other Ownership Interests.


 


5.6.1           Changes
in Capital Structure of Debtors. Except as otherwise permitted under the Amended and Restated Indenture, such Debtor will not
(i) permit or suffer any issuer of privately held corporate securities or other ownership interests in a corporation, partnership,
joint venture or limited liability company constituting Collateral to dissolve, liquidate, retire any of its capital stock or other
Instruments or Securities evidencing ownership, reduce its capital or merge or consolidate with any other entity, or (ii) vote
any of the Instruments, Securities or other Investment Property in favor of any of the foregoing.


 


5.6.2           Issuance
of Additional Securities. Such Debtor will not permit or suffer the issuer of privately held corporate securities or other
ownership interests in a corporation, partnership, joint venture or limited liability company constituting Collateral to issue
any such securities or other ownership interests, any right to receive the same or any right to receive earnings, except to such
Debtor.


 


5.6.3           Registration
of Pledged Equity and other Investment Property. Subject to the Intercreditor Agreement, such Debtor will permit any registerable
Collateral to be registered in the name of the Collateral Agent or its nominee at any time.


 


5.6.4           Exercise
of Rights in Pledged Equity and other Investment Property. Subject to the Intercreditor Agreement, such Debtor will permit
the Collateral Agent or its nominee at any time after the occurrence of an Event of Default, without notice, to exercise all voting
and corporate rights relating to the Collateral, including, without limitation, exchange, subscription or any other rights, privileges,
or options pertaining to any corporate securities or other ownership interests or Investment Property in or of a corporation, partnership,
joint venture or limited liability company constituting Collateral and the Stock Rights as if it were the absolute owner thereof.


 


5.6.5           Issuance
of Securities. Such Debtor shall not permit any limited partnership interests or ownership interests in a limited liability
company which are included within the Collateral to at any time constitute a Security or consent to the issuer of any such interests
taking any action to have such interests treated as a Security unless, subject to the Intercreditor Agreement (i) all certificates
or other documents constituting such Security have been delivered to the Collateral Agent or its bailee and such Security is properly
defined as such under Article 8 of the UCC of the applicable jurisdiction, whether as a result of actions by the issuer thereof
or otherwise, or (ii) the Collateral Agent has entered into a control agreement with the issuer of such Security or with a
securities intermediary relating to such Security and such Security is defined as such under Article 8 of the UCC of the applicable
jurisdiction, whether as a result of actions by the issuer thereof or otherwise.


 




     

     


    

 


5.7           Accounts.
This Section 5.7 does not apply to Personal Property as defined in the Mortgages.


 


5.7.1           Verification
of Accounts. The Collateral Agent shall have the right, at any time or times hereafter, in its name or in the name of a nominee
of the Collateral Agent, to verify the validity, amount or any other matter relating to any Accounts, by mail, telephone, telegraph
or otherwise.


 


5.7.2           Appointment
of the Agent as Attorney-in-Fact. Such Debtor hereby irrevocably designates, makes, constitutes and appoints the Collateral
Agent (and all Persons designated by the Collateral Agent), exercisable after an Event of Default has occurred and is continuing,
as its true and lawful attorney-in-fact, and authorizes the Collateral Agent, in such Debtor's or the Collateral Agent's name,
subject in all cases to the Intercreditor Agreement, to: (i) demand payment of Accounts; (ii) enforce payment of Accounts
by legal proceedings or otherwise; (iii) exercise all of such Debtor's rights and remedies with respect to proceedings brought
to collect an Account; (iv) sell or assign any Account upon such terms, for such amount and at such time or times as the Collateral
Agent deems advisable; (v) settle, adjust, compromise, extend or renew an Account; (vi) discharge and release any Account;
(vii) take control in any manner of any item of payment or proceeds thereof; (viii) prepare, file and sign such Debtor's
name on any proof of claim in bankruptcy or other similar document against an Account Debtor; (ix) endorse such Debtor's name
upon any items of payment or proceeds thereof and deposit the same in the Collateral Agent's account on account of the Secured
Obligations; (x) endorse such Debtor's name upon any chattel paper, document, instrument, invoice, or similar document or agreement
relating to any Account or any goods pertaining thereto; (xi) sign such Debtor's name on any verification of Accounts and notices
thereof to Account Debtor; (xii) notify the post office authorities to change the address for delivery of such Debtor's mail to
an address designated by the Collateral Agent, have access to any lock box or postal box into which any of such Debtor's mail is
deposited, and open and dispose of all mail addressed to such Debtor, and (xiii) do all acts and things which are necessary, in
the Collateral Agent's sole discretion or at the direction of an Act of Parity Lien Debtholders, to fulfill such Debtor's obligations
under this Security Agreement.


 


5.7.3           Notice
to Account Debtor. Subject to the Intercreditor Agreement, the Collateral Agent may, in its sole discretion, at any time or
times after an Event of Default has occurred and is continuing, and without prior notice to such Debtor, notify any or all Account
Debtors that the Accounts constituting Collateral have been assigned to the Collateral Agent and that the Collateral Agent has
a security interest therein. Subject to the Intercreditor Agreement, the Collateral Agent may direct any or all Account Debtors
to make all payments upon the Accounts constituting Collateral directly to the Collateral Agent. The Collateral Agent shall furnish
such Debtor with a copy of such notice.


 


5.8           Deposit
Accounts. If requested by the Collateral Agent, such Debtor will (i) notify each bank or other financial institution in
which it maintains a Deposit Account or other deposit (general or special, time or demand, provisional or final) of the security
interest granted to the Collateral Agent hereunder and cause each such bank or other financial institution to acknowledge such
notification in writing and (ii) subject to the Intercreditor Agreement, deliver to each such bank or other financial institution
a letter, in form and substance acceptable to the Collateral Agent, transferring dominion and control over each such account to
the Collateral Agent.


 


5.9           Federal,
State or Municipal Claims. Such Debtor will notify the Collateral Agent of any Collateral which constitutes a claim against
a Governmental Authority, the assignment of which claim is restricted by federal, state or municipal law.


 




     

     


    

 


5.10         Warehouse
Receipts Non-Negotiable. Such Debtor agrees that if any warehouse receipt or receipt in the nature of a warehouse receipt is
issued with respect to any of its inventory, such warehouse receipt or receipt in the nature thereof shall not be "negotiable"
(as such term is used in Section 7.104 of the UCC).


 


5.11         Mortgagee's
and Landlord Waivers. Such Debtor shall use its best efforts to cause each mortgagee of real property owned by such Debtor
(upon request by the Collateral Agent) and each landlord of real property leased by such Debtor to execute and deliver instruments
satisfactory in form and substance to the Collateral Agent by which such mortgagee or landlord waives their rights, if any, in
the Collateral. This Section shall not apply to "as-extracted" Collateral.


 


5.12         Compliance
with Agreements. Such Debtor shall comply in all material respects with all mortgages, deeds of trust, instruments, and other
agreements binding on it or affecting its properties or business.


 


5.13         Commercial
Tort Claims. If such Debtor at any time holds or acquires a Commercial Tort Claim, such Debtor shall immediately notify the
Collateral Agent in writing of the details thereof and grant to the Collateral Agent in writing a security interest therein or
Lien thereon and in the Proceeds thereof, in form and substance satisfactory to the Collateral Agent.


 


5.14         Letters-of-Credit
Rights. If such Debtor is at any time a beneficiary under a letter of credit now or hereafter issued in favor of such Debtor,
such Debtor shall promptly notify the Collateral Agent thereof in writing and, at the Collateral Agent's request, subject to the
Intercreditor Agreement, such Debtor shall, pursuant to an agreement in form and substance satisfactory to the Collateral Agent,
either (a) arrange for the issuer or any confirmer of such letter of credit to consent to an assignment to the Collateral
Agent of the proceeds of any drawing under the letter of credit or (b) arrange for the Collateral Agent to become the transferee
beneficiary of the letter of credit, with the Collateral Agent agreeing, in each case, that the proceeds of any drawing under the
letter of credit are to be applied as provided in the Amended and Restated Indenture.


 


5.15         Further
Assurances. At any time and from time to time, upon the request of the Collateral Agent, and at the sole expense of such Debtor,
subject to the Intercreditor Agreement, such Debtor shall promptly execute and deliver all such further instruments and documents
and take such further action as the Collateral Agent may deem necessary or desirable to preserve and perfect its security interest
in the Collateral and carry out the provisions and purposes of this Security Agreement, including, without limitation, (a) the
execution and filing of such financing statements as the Collateral Agent may require and (b) the deposit of all certificates
of title issuable with respect to any of the Collateral and noting thereon the security interest hereunder. A carbon, photographic,
or other reproduction of this Security Agreement or of any financing statement covering the Collateral or any part thereof shall
be sufficient as a financing statement and may be filed as a financing statement. Such Debtor shall promptly endorse and deliver
to the Collateral Agent all documents, instruments, and chattel paper that it now owns or may hereafter acquire.


 


ARTICLE
VI



REMEDIES


 


6.1           Acceleration
and Remedies. Upon the occurrence of an Event of Default under the Amended and Restated Indenture or any other Note Document,
subject to the Intercreditor Agreement, the Collateral Agent may exercise any or all of the following rights and remedies:


 




     

     


    

 


(a)          Exercise
any or all of those rights and remedies provided in this Security Agreement, the Amended and Restated Indenture, or any other Note
Document, provided that this paragraph shall not be understood to limit any rights or remedies available to the Collateral Agent
prior to an Event of Default.


 


(b)          Exercise
any or all of those rights and remedies available to a secured party under the UCC (whether or not the UCC applies to the affected
Collateral) or under any other applicable law (including, without limitation, any law governing the exercise of a bank's right
of setoff or bankers' lien) when a debtor is in default under a security agreement.


 


(c)          Without
notice except as specifically provided in Section 6.2  or elsewhere herein, sell, lease, license, assign, grant an
option or options to purchase or otherwise dispose of the Collateral or any part thereof in one or more parcels at public or private
sale, for cash, on credit or for future delivery, and upon such other terms as the Collateral Agent may deem commercially reasonable.
Neither the Collateral Agent’s compliance with any applicable state or federal law in the conduct of such sale, nor its disclaimer
of any warranties relating to the Collateral, shall be considered to affect the commercial reasonableness of such sale. To the
extent permitted by applicable law, such Debtor hereby waives (to the extent permitted by applicable law) all rights of redemption,
stay and/or appraisal which it now has or may at any time in the future have under any rule of law or statute now existing or hereafter
enacted.


 


(d)          Require
any Debtor to, and each Debtor hereby agrees that it will at its expense and upon request of the Collateral Agent, assemble and
make available to the Collateral Agent the Collateral and all records relating thereto at any place or places specified by the
Collateral Agent.


 


(e)          Prior
to the disposition of any Collateral, (1) to the extent permitted by applicable law, enter, with or without process of law and
without breach of peace, any premises where any of the Collateral is or may be located, and without charge or liability to the
Collateral Agent, seize and remove such Collateral from such premises, (2) have access to and use each Debtor's books, records
and information relating to the Collateral, and (3) store or transfer any of the Collateral, without charge in or by means of any
storage or transportation facility owned or leased by any Debtor, process, repair or recondition any of the Collateral or otherwise
prepare it for disposition in any manner and to the extent the Collateral Agent deems appropriate and, in connection with such
preparation and disposition, use without charge any copyright, trademark, trade name, patent or technical process used by such
Debtor.


 


(f)          Reduce
its claim to judgment or foreclose or otherwise enforce, in whole or in part, the security interest created hereby by any available
judicial procedure.


 


(g)          Dispose
of, at its office, on the premises of any Debtor or elsewhere, all or any part of the Collateral, as a unit or in parcels, by public
or private proceedings, and by way of one or more contracts (it being agreed that the sale of any part of the Collateral shall
not exhaust the Collateral Agent's power of sale, but sales may be made from time to time, and at any time, until all of the Collateral
has been sold or until all of the Secured Obligations have been paid and performed in full), and at any such sale it shall not
be necessary to exhibit any of the Collateral.


 


(h)          Buy
(or allow one or more of the Secured Parties to buy) the Collateral, or any part thereof, at any public sale.


 




     

     


    

 


(i)          Buy
(or allow one or more of the Secured Parties to buy) the Collateral, or any part thereof, at any private sale if the Collateral
is of a type customarily sold in a recognized market or is of a type which is the subject of widely distributed standard price
quotations.


 


(j)          Apply
by appropriate judicial proceedings for appointment of a receiver for the Collateral, or any part thereof, and each Debtor hereby
consents to any such appointment.


 


(k)          Grant
or issue any exclusive or non-exclusive license under or with respect to any of any Debtor's Intellectual Property and Franchises
(subject to the rights of third parties under pre-existing licenses) included in the Collateral.


 


(l)          Endorse
any Debtor's name on all applications and other documentation necessary or desirable in order for the Collateral Agent to use any
such Intellectual Property and Franchises of the Obligors including in the Collateral or covered by the Amended and Restated Indenture.


 


6.2           Notice
of Disposition of Collateral. Each Debtor hereby agrees that notice of the time and place of any public sale or the time after
which any private sale or other disposition of all or any part of the Collateral may be made shall be deemed reasonable if sent
to such Debtor, addressed as set forth in Section 8.17, at least ten (10) days prior to (i) the date of any such public
sale or (ii) the time after which any such private sale or other disposition may be made.


 


6.3           License.
The Collateral Agent is hereby granted a license or other right to use, following the occurrence and during the continuance of
an Event of Default, without charge, subject to the Intercreditor Agreement, each Debtor's Intellectual Property, Franchises, customer
lists and advertising matter, or any property of a similar nature, as it pertains to the Collateral, in completing production of,
advertising for sale, and selling any Collateral, and, following the occurrence and during the continuance of an Event of Default,
subject to the Intercreditor Agreement, each Debtor's rights under all licenses and all Franchise Agreements shall inure to the
Collateral Agent's benefit. In addition, each Debtor hereby irrevocably agrees that the Collateral Agent may, following the occurrence
and during the continuance of an Event of Default, subject to the Intercreditor Agreement, sell any of such Debtor's Inventory
directly to any Person, including without limitation Persons who have previously purchased such Debtor's Inventory from such Debtor
and in connection with any such sale or other enforcement of the Collateral Agent's rights under this Security Agreement, may sell
Inventory which bears any trademark owned by or licensed to such Debtor and any Inventory that is covered by any copyright owned
by or licensed to such Debtor and the Collateral Agent may finish any work in process and affix any trademark owned by or licensed
to such Debtor and sell such Inventory as provided herein.


 


6.4           Deficiency.
In the event that the proceeds of any sale, collection or realization of or upon Collateral by the Collateral Agent are insufficient
to pay all Secured Obligations and any other amounts to which the Collateral Agent is legally entitled, the Debtors shall be jointly
and severally liable for the deficiency, together with interest thereon as provided in the Amended and Restated Indenture or (if
no interest is so provided) at such other rate as shall be fixed by applicable law, together with the costs of collection and the
reasonable fees of any attorneys employed by the Collateral Agent to collect such deficiency.


 


6.5           Non-Judicial
Remedies. In granting to the Collateral Agent the power to enforce its rights hereunder without prior judicial process or judicial
hearing, each Debtor expressly waives, renounces and knowingly relinquishes any legal right which might otherwise require the Collateral
Agent to enforce its rights by judicial process. In so providing for non-judicial remedies, each Debtor recognizes and concedes
that such remedies are consistent with the usage of trade, are responsive to commercial necessity, and are the result of a bargain
at arm's length. Nothing herein is intended, however, to prevent the Collateral Agent from resorting to judicial process at its
option.


 




     

     


    

 


6.6           Limitation
on Duty of the Collateral Agent in Respect of Collateral. Beyond the exercise of reasonable care in the custody thereof, the
Collateral Agent shall have no duty as to any Collateral in its possession or control or in the possession or control of any agent
or bailee or as to the preservation of rights against prior parties or any other rights pertaining thereto. The Collateral Agent
shall be deemed to have exercised reasonable care in the custody of the Collateral in its possession if the Collateral is accorded
treatment substantially equal to that which it accords its own property, and shall not be liable or responsible for any loss or
damage to any of the Collateral, or for any diminution in the value thereof, by reason of the act or omission of any warehouseman,
carrier, forwarding agency, consignee or other agent or bailee selected by the Collateral Agent in good faith.


 


6.7           Cumulative
Rights; Obligations Not Affected.


 


6.7.1           All
rights of the Collateral Agent and each other Secured Party under the Note Documents are cumulative of each other and of every
other right which the Collateral Agent and each other Secured Party may otherwise have at law or in equity or under any other agreement.
The exercise of one or more rights shall not prejudice or impair the concurrent or subsequent exercise of other rights.


 


6.7.2           To
the fullest extent not prohibited by applicable law, the obligations of each Debtor under this Security Agreement shall remain
in full force and effect without regard to, and shall not be impaired or affected by:


 


(a)          any
amendment, addition, or supplement to, or restatement of any Note Document or any instrument delivered in connection therewith
or any assignment or transfer thereof;


 


(b)          any
exercise, non exercise, or waiver by the Collateral Agent or any other Secured Party of any right, remedy, power, or privilege
under or in respect of, or any release of any guaranty, any collateral, or the Collateral or any part thereof provided pursuant
to this Security Agreement or any other Note Document;


 


(c)          any
waiver, consent, extension, indulgence, or other action or inaction in respect of this Security Agreement or any other Note Document
or any assignment or transfer of any thereof;


 


(d)          any
bankruptcy, insolvency, reorganization, arrangement, readjustment, composition, liquidation, or the like of any Grantor or any
other Person, whether or not such Debtor shall have notice or knowledge of any of the foregoing; or


 


(e)          any
other event which may give any Debtor or any other Grantor a defense to, or a discharge of, any of its obligations under any Note
Document.


 




     

     


    

 


ARTICLE
VII



PROCEEDS; COLLECTION OF RECEIVABLES


 


7.1           Lockboxes.
Upon the request of the Collateral Agent, subject to the Intercreditor Agreement, each Debtor shall execute and deliver to the
Collateral Agent irrevocable lockbox agreements in the form provided by or otherwise acceptable to the Collateral Agent, which
agreements shall be accompanied by an acknowledgment by the bank where the lockbox is located of the Lien of the Collateral Agent
granted hereunder and of irrevocable instructions to wire all amounts collected therein to a special collateral account at the
Collateral Agent.


 


7.2           Collection
of Receivables. Upon the occurrence and during the continuation of a an Event of Default, subject to the Intercreditor Agreement,
the Collateral Agent may at any time in its sole discretion or at the direction of an Act of Parity Lien Debtholders, by giving
any Debtor written notice, elect to require that the Receivables constituting Collateral be paid directly to the Collateral Agent.
In such event, such Debtor shall, and shall permit the Collateral Agent to, subject to the Intercreditor Agreement, promptly notify
the Account Debtors or obligors under the Receivables constituting Collateral of the Collateral Agent's interest therein and direct
such Account Debtors or obligors to make payment of all amounts then or thereafter due under such Receivables directly to the Collateral
Agent. Upon receipt of any such notice from the Collateral Agent, subject to the Intercreditor Agreement, such Debtor shall thereafter
hold in trust for the Collateral Agent, all amounts and proceeds received by it with respect to the Receivables and Other Collateral
and immediately and at all times thereafter deliver to the Collateral Agent all such amounts and proceeds in the same form as so
received, whether by cash, check, draft or otherwise, with any necessary endorsements. The Collateral Agent shall hold and apply
funds so received as provided by the terms of Sections 7.3 and 7.4.


 


7.3           Special
Collateral Account. Subject to the Intercreditor Agreement, the Collateral Agent may require all cash proceeds of the Collateral
to be deposited in a special non-interest bearing cash collateral account with the Collateral Agent and held there as security
for the Secured Obligations. No Debtor shall have any control whatsoever over said cash collateral account. If no Event of Default
has occurred or is continuing, the Collateral Agent shall from time to time deposit the collected balances in said cash collateral
account into such Debtor's general operating account with the Collateral Agent. If any Event of Default has occurred and is continuing,
subject to the Intercreditor Agreement, the Collateral Agent may, from time to time, in its discretion or at the direction of an
Act of Parity Lien Debt Holders, apply the collected balances in said cash collateral account to the payment of the Secured Obligations
whether or not the Secured Obligations shall then be due.


 


7.4           Application
of Proceeds. After the occurrence and during the continuation of an Event of Default, subject to the Intercreditor Agreement,
the proceeds of the Collateral shall be applied by the Collateral Agent to payment of the Secured Obligations as provided in the
Amended and Restated Indenture.


 


7.5           Not
Applicable to Proceeds of Production Under Mortgages. This Article VII does not apply to the proceeds from Hydrocarbons
(as defined in the Mortgages) and products obtained or processed from Hydrocarbons or any other proceeds or receivables covered
by the Mortgages.


 


ARTICLE
VIII



GENERAL PROVISIONS


 


8.1           Additional
Debtors. From time to time subsequent to the date hereof, additional Persons may become parties hereto as additional Debtors
(each, an "Additional Debtor"), by executing a Joinder Agreement in the form of Exhibit A hereto.
Upon delivery of any such Joinder Agreement to the Collateral Agent, notice of which is hereby waived by Debtors, each Additional
Debtor shall be a Debtor and shall be as fully a party hereto as if Additional Debtor were an original signatory hereto. Each Debtor
expressly agrees that its obligations arising hereunder shall not be affected or diminished by the addition or release of any other
Debtor hereunder, nor by any election of the Collateral Agent not to cause any Subsidiary or Affiliate of Borrower to become an
Additional Debtor hereunder. This Security Agreement shall be fully effective as to any Debtor that is or becomes a party hereto
regardless of whether any other Person becomes or fails to become or ceases to be a Debtor hereunder.


 




     

     


    

 


8.2           Preservation
of Rights. No delay or omission of the Collateral Agent to exercise any right or remedy granted under this Security Agreement
shall impair such right or remedy or be construed to be a waiver of any Event of Default, or an acquiescence therein, and any single
or partial exercise of any such right or remedy shall not preclude any other or further exercise thereof or the exercise of any
other right or remedy. All rights and remedies contained in this Security Agreement or by law afforded shall be cumulative and
all shall be available to the Collateral Agent until the Secured Obligations have been paid in full.


 


8.3           Waiver;
Amendment. No waiver, amendment or other variation of the terms, conditions or provisions of this Security Agreement whatsoever
shall be valid unless in writing signed by the Collateral Agent and then only to the extent in such writing specifically set forth.


 


8.4           Compromises
and Collection of Collateral. Each Debtor and the Collateral Agent recognize that setoffs, counterclaims, defenses and other
claims may be asserted by obligors with respect to certain of the Receivables, that certain of the Receivables may be or become
uncollectible in whole or in part and that the expense and probability of success in litigating a disputed Receivable may exceed
the amount that reasonably may be expected to be recovered with respect to a Receivable. In view of the foregoing, each Debtor
agrees that the Collateral Agent may at any time and from time to time, if an Event of Default has occurred and is continuing,
compromise with the obligor on any Receivable, accept in full payment of any Receivable such amount as the Collateral Agent in
its sole discretion (or upon receipt of an Act of Parity Lien Debtholders) shall determine or abandon any Receivable, and any such
action by the Collateral Agent shall be commercially reasonable so long as the Collateral Agent acts in good faith based on information
known to it at the time it takes any such action or acts as instructed by an Act of Parity Lien Debtholders.


 


8.5           Collateral
Agent Performance of the Debtors’ Obligations. Without having any obligation to do so, the Collateral Agent may perform or
pay any obligation which any Debtor has agreed to perform or pay in this Security Agreement and such Debtor shall, reimburse the
Collateral Agent for any amounts paid by the Collateral Agent pursuant to this Section 8.5. Each Debtor's obligation
to reimburse the Collateral Agent pursuant to the preceding sentence shall be a Secured Obligation payable on demand.


 


8.6           Authorization
for the Collateral Agent to Take Certain Action. Each Debtor irrevocably authorizes the Collateral Agent at any time and from
time to time in the sole discretion of the Collateral Agent, or as instructed by an Act of Parity Lien Debtholders, and appoints
the Collateral Agent as its attorney in fact, subject to the Intercreditor Agreement, (i) to execute on behalf of such Debtor
as debtor and to file financing statements necessary or desirable in the Collateral Agent's sole discretion to perfect and to maintain
the perfection and priority of the Collateral Agent's security interest in the Collateral, (ii) to endorse and collect any
cash proceeds of the Collateral, (iii) to file a carbon, photographic or other reproduction of this Security Agreement or
any financing statement with respect to the Collateral as a financing statement in such offices as the Collateral Agent in its
sole discretion deems necessary or desirable to perfect and to maintain the perfection and priority of the Collateral Agent's security
interest in the Collateral, (iv) to contact and enter into one or more agreements with the issuers of uncertificated securities
which are Collateral and which are Securities or with financial intermediaries holding other Investment Property as may be necessary
or advisable to give the Collateral Agent Control over such Securities or other Investment Property, (v) subject to the terms
of Section 7.2, to enforce payment of the Receivables in the name of the Collateral Agent or such Debtor, (vi) to
apply the proceeds of any Collateral received by the Collateral Agent to the Secured Obligations as provided in Article VII
and (vii) to discharge past due taxes, assessments, charges, fees or Liens on the Collateral (except for such Liens as are
specifically permitted hereunder), and such Debtor agrees to reimburse the Collateral Agent on demand for any payment made or any
expense incurred by the Collateral Agent in connection therewith, provided that this authorization shall not relieve such Debtor
of any of its obligations under this Security Agreement or under the Amended and Restated Indenture. The Collateral Agent is executing
this Security Agreement solely in its capacity as Collateral Trustee under the Amended and Restated Indenture and the other Note
Documents and in connection with this Security Agreement, shall have all rights, privileges, protections, indemnities, exculpations
and immunities in favor of the Collateral Trustee under the Amended and Restated Indenture and the other Note Documents, including,
without limitation, the right to request solicit written confirmatory instructions, in the form of an Act of Parity Lien Debtholders
(as defined in the Collateral Trust Agreement), an Officers’ Certificate, a legal opinion from counsel to the Issuer or an
order of a court of competent jurisdiction as to any action that it may be requested or required to take, or that it may propose
to take hereunder and the right to appoint sub-agents to exercise any rights and powers conferred on the Collateral Trustee hereunder.


 




     

     


    

 


8.7           Specific
Performance of Certain Covenants. Each Debtor acknowledges and agrees that a breach of any of the covenants contained in Sections 5.1.4,
5.1.6, 5.4, 6.3, or 8.8 or in Article VII will cause irreparable injury to the Collateral Agent, that the Collateral
Agent has no adequate remedy at law in respect of such breaches and therefore agrees, without limiting the right of the Collateral
Agent to seek and obtain specific performance of other obligations of such Debtor contained in this Security Agreement, that the
covenants of such Debtor contained in the Sections referred to in this Section 8.7 shall be specifically enforceable
against such Debtor.


 


8.8           Use
and Possession of Certain Premises. If an Event of Default has occurred and is continuing, subject to the Intercreditor Agreement,
the Collateral Agent shall be entitled to occupy and use any premises owned or leased by any Debtor where any of the Collateral
or any records relating to the Collateral are located until the Secured Obligations are paid or the Collateral is removed therefrom,
whichever first occurs, without any obligation to pay such Debtor for such use and occupancy.


 


8.9           Dispositions
Not Authorized. No Debtor is authorized to sell or otherwise dispose of the Collateral except as set forth in Section 5.1.5
or as otherwise permitted by the Amended and Restated Indenture and notwithstanding any course of dealing between any Debtor and
the Collateral Agent or other conduct of the Collateral Agent, no authorization to sell or otherwise dispose of the Collateral
(except as set forth in Section 5.1.5 or as otherwise permitted by the Amended and Restated Indenture) shall be binding
upon the Collateral Agent unless such authorization is in writing signed by the Collateral Agent.


 


8.10         Benefit
of Agreement. The terms and provisions of this Security Agreement shall be binding upon and inure to the benefit of each Debtor,
the Collateral Agent and their respective successors and assigns, except that no Debtor shall have the right to assign its rights
or delegate its obligations under this Security Agreement or any interest herein, without the prior written consent of the Collateral
Agent.


 


8.11         Survival
of Representations. All representations and warranties of each Debtor contained in this Security Agreement shall survive the
execution and delivery of this Security Agreement.


 


8.12         Expenses.
To the extent permitted by applicable law, each Debtor promptly will pay, upon demand, any out-of-pocket expenses incurred by the
Collateral Agent in connection herewith, including all costs, expenses, taxes, assessments, insurance premiums, repairs (including
repairs to realty or other property to which any Collateral may have been attached), court costs, attorneys' fees, rent, storage
costs and expenses of sales incurred in connection with the administration of this Security Agreement, the enforcement of the rights
of the Collateral Agent hereunder, whether incurred before or after the occurrence of an Event of Default or incurred in connection
with the perfection, preservation, or defense of the security interest created hereunder, or the custody, protection, collection,
repossession, enforcement or sale of the Collateral. All such expenses shall become part of the Secured Obligations.


 




     

     


    

 


8.13         Headings.
The title of and section headings in this Security Agreement are for convenience of reference only, and shall not govern the interpretation
of any of the terms and provisions of this Security Agreement.


 


8.14         Termination.
This Security Agreement shall continue in effect (notwithstanding the fact that from time to time there may be no Secured Obligations
outstanding) until (i) the Amended and Restated Indenture has terminated pursuant to its express terms and (ii) all of
the Secured Obligations have been indefeasibly paid and performed in full and no commitments of the Collateral Agent or the Holders
which would give rise to any Secured Obligations are outstanding.


 


8.15         Entire
Agreement. This Security Agreement embodies the entire agreement and understanding between the Debtors and the Collateral Agent
relating to the Collateral and supersedes all prior agreements and understandings between the Debtors and the Collateral Agent
relating to the Collateral.


 


8.16         Governing
Law; Jurisdiction; Consent to Service of Process; Waiver of Jury Trial.


 


8.16.1         THIS
SECURITY AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE INTERNAL LAWS (AND NOT THE LAW OF CONFLICTS) OF
THE STATE OF NEW YORK.


 


8.16.2         Each
Debtor hereby irrevocably and unconditionally submits, for itself and its property, to the nonexclusive jurisdiction of the Supreme
Court of the State of New York sitting in New York County, Borough of Manhattan, and of the United States District Court of the
Southern District of New York, and any appellate court from any thereof, in any action or proceeding arising out of or relating
to this Security Agreement or any other Note Document, or for recognition or enforcement of any judgment, and each Debtor hereby
irrevocably and unconditionally agrees that all claims in respect of any such action or proceeding may be heard and determined
in such New York State or, to the extent permitted by law, in such Federal court. Each Debtor agrees that a final judgment in any
such action or proceeding shall be conclusive and may be enforced in other jurisdictions by suit on the judgment or in any other
manner provided by law. Nothing in this Security Agreement or any other Note Document shall affect any right that the Collateral
Agent or any Secured Party may otherwise have to bring any action or proceeding relating to this Security Agreement or any other
Note Document against any Debtor or its properties in the courts of any jurisdiction.


 


8.16.3         
Each Debtor hereby irrevocably and unconditionally waives, to the fullest extent it may legally and effectively do so, any objection
which it may now or hereafter have to the laying of venue of any suit, action or proceeding arising out of or relating to this
Security Agreement or any other Note Document in any court referred to in Section 8.15. Each Debtor 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.


 


8.16.4         Each
party to this Security Agreement irrevocably consents to service of process in the manner provided for notices in Section 8.16
of this Security Agreement. Nothing in this Security Agreement or any other Note Document will affect the right of any party to
this Security Agreement to serve process in any other manner permitted by law.


 




     

     


    

 


8.16.5         EACH
DEBTOR HEREBY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE 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 SECURITY AGREEMENT OR ANY OTHER NOTE DOCUMENT (WHETHER BASED
ON CONTRACT, TORT OR ANY OTHER THEORY). EACH DEBTOR (A) CERTIFIES THAT NO REPRESENTATIVE, AGENT OR ATTORNEY OF ANY OTHER DEBTOR
HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH OTHER DEBTOR WOULD NOT, IN THE EVENT OF LITIGATION, SEEK TO ENFORCE THE FOREGOING
WAIVER AND (B) ACKNOWLEDGES THAT IT AND THE OTHER DEBTORS HAVE BEEN INDUCED TO ENTER INTO THIS SECURITY AGREEMENT BY, AMONG OTHER
THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS SECTION 8.16.5.


 


8.17         Notices.
Any notice required or permitted to be given under this Security Agreement shall be sent (and deemed received) in the manner and
to the addresses set forth in the Amended and Restated Indenture.


 


8.18         INDEMNITY.
EACH DEBTOR HEREBY AGREES TO INDEMNIFY THE COLLATERAL AGENT AND ITS SUCCESSORS, ASSIGNS, AGENTS, ADVISORS, ATTORNEYS, OFFICERS,
DIRECTORS, EMPLOYEES, AND REPRESENTATIVES, FROM AND AGAINST ANY AND ALL LOSSES, LIABILITIES, DAMAGES, PENALTIES, SUITS, CLAIMS,
COSTS, AND EXPENSES OF ANY KIND AND NATURE (INCLUDING, WITHOUT LIMITATION, ALL EXPENSES OF LITIGATION OR PREPARATION THEREFOR WHETHER
OR NOT THE COLLATERAL AGENT IS A PARTY THERETO) IMPOSED ON, INCURRED BY OR ASSERTED AGAINST THE COLLATERAL AGENT OR ITS SUCCESSORS,
ASSIGNS, AGENTS, ADVISORS, ATTORNEYS, OFFICERS, DIRECTORS, EMPLOYEES, AND REPRESENTATIVES, IN ANY WAY RELATING TO OR ARISING OUT
OF THIS SECURITY AGREEMENT, OR THE MANUFACTURE, PURCHASE, ACCEPTANCE, REJECTION, OWNERSHIP, DELIVERY, LEASE, POSSESSION, USE, OPERATION,
CONDITION, SALE, RETURN OR OTHER DISPOSITION OF ANY COLLATERAL (INCLUDING, WITHOUT LIMITATION, LATENT AND OTHER DEFECTS, WHETHER
OR NOT DISCOVERABLE BY THE Collateral Agent OR SUCH DEBTOR, AND ANY CLAIM FOR INTELLECTUAL
PROPERTY INFRINGEMENT).


 


8.19         Conflicts.
To the extent that the provisions of this Security Agreement conflict with the provisions of the Mortgages with respect to Personal
Property as defined in the Mortgages, the provisions of the Mortgages shall control.


 


8.20         Delivery
of Collateral, Etc. Prior to the Discharge of Priority Lien Obligations (as defined in the Intercreditor Agreement), to the
extent any Debtor is required hereunder or in any other Note Document to deliver Collateral to the Collateral Agent for purposes
of possession and control and is unable to do so as a result of having previously delivered such Collateral to the Priority Lien
Agent, such Debtor’s obligations hereunder or in any other Note Document (including the representations and warranties made
by it hereunder and in the other Note Documents) with respect to such delivery shall be deemed satisfied by the delivery to the
Priority Lien Agent, acting as a sub-collateral agent and gratuitous bailee of the Collateral Agent. Notwithstanding anything to
the contrary contained in this Security Agreement or any other Note Document, to the extent the provisions of this Security Agreement
(or any other Note Documents) require the delivery of, or control over, Collateral to be granted to the Collateral Agent at any
time prior to the Discharge of Priority Lien Obligations, then delivery of such Collateral (or control with respect thereto) shall
instead be made to the Priority Lien Agent to be held in accordance with the Priority Lien Security Documents (as defined in the
Intercreditor Agreement) and the Intercreditor Agreement and each Debtor’s obligations hereunder or in any other Note Document
(including the representations and warranties made by it hereunder and in the other Note Documents) with respect to such delivery
shall be deemed satisfied by the delivery to the Priority Lien Agent, acting as a sub-collateral agent and gratuitous bailee of
the Collateral Agent.


 




     

     


    

 


8.21         Restatement
of Original Security Agreement. It is the intention of the parties hereto that this Security Agreement amends and restates,
supersedes and replaces the Original Security Agreement in its entirety, and preserves the perfection and priority of all Liens
pursuant to the Original Security Agreement; provided that except as contemplated set forth in the Plan of Reorganization
and the Confirmation Order, (a) such amendment and restatement shall operate to renew, amend, modify, extend and assign all of
the duties, liabilities and obligations of each Debtor and rights of the Collateral Agent under the Original Security Agreement,
which rights, duties, liabilities and obligations are hereby renewed, amended, modified and extended, and shall not act as a novation
thereof, and (b) the Liens securing the obligations of each Debtor under the Original Security Agreement and the duties, liabilities
and obligations of each Debtor and the rights of the Collateral Agent under the Original Security Agreement shall not be extinguished,
in each case, but shall be carried forward and shall secure such obligations and liabilities as amended, renewed, extended and/or
restated hereby and constitute the obligations of each Debtor under this Security Agreement. None of the Liens and security interests
created pursuant to the Original Security Agreement are released, discharged or otherwise impaired hereby. Additionally, the substantive
rights and obligations of the parties hereto shall be governed by this Security Agreement, rather than the Original Security Agreement.


 


[Remainder of page intentionally left
blank; signature pages follow.]


 




     

     


    

 





IN WITNESS WHEREOF, the
Debtors and the Collateral Agent have executed this Security Agreement as of the date first above written.


 


	 	DEBTORS:
	 	 
	 	VANGUARD NATURAL GAS, LLC
	 	 	 
	 	 	By: VANGUARD NATURAL RESOURCES, its sole manager
	 	 	 
	 	By:	/s/ Scott W. Smith
	 	 	Name: Scott W. Smith
	 	 	Title: President and Chief Executive Officer
	 	 	 
	 	VANGUARD OPERATING, LLC
	 	 	 
	 	 	By: VANGUARD NATURAL GAS, LLC, its sole member
	 	 	 
	 	 	By: VANGUARD NATURAL RESOURCES, its sole manager 
	 	 	 
	 	By:	/s/ Scott W. Smith
	 	 	Name: Scott W. Smith
	 	 	Title: President and Chief Executive Officer
	 	 	 
	 	ENCORE CLEAR FORK PIPELINE, LLC
	 	 	 
	 	 	By: VANGUARD OPERATING, LLC, its sole manager
	 	 	 
	 	 	By: VANGUARD NATURAL GAS, LLC, its sole member
	 	 	 
	 	 	By: VANGUARD NATURAL RESOURCES, INC., its sole manager
	 	 	 
	 	By:	/s/ Scott W. Smith
	 	 	Name: Scott W. Smith
	 	 	Title: President and Chief Executive Officer



 






    	 	 



     


    

 


	 	 	VNR HOLDINGS, LLC
	 	 	 
	 	 	By: VANGUARD NATURAL GAS, LLC, its sole member








 


	 	 	By: VANGUARD NATURAL RESOURCES, INC., its sole manager
	 	 	 
	 	By:	/s/ Scott W. Smith
	 	 	Name: Scott W. Smith
	 	 	Title: President and Chief Executive Officer
	 	 	 
	 	EAGLE ROCK ENERGY ACQUISITION CO., INC.
	 	 	 
	 	By:	/s/ Scott W. Smith
	 	 	Name: Scott W. Smith
	 	 	Title: President and Chief Executive Officer
	 	 	 
	 	EAGLE ROCK ENERGY ACQUISITION CO. II, INC. 
	 	 	 
	 	By:	/s/ Scott W. Smith
	 	 	Name: Scott W. Smith
	 	 	Title: President and Chief Executive Officer
	 	 	 
	 	EAGLE ROCK UPSTREAM DEVELOPMENT COMPANY, INC. 
	 	 	 
	 	By:	/s/ Scott W. Smith
	 	 	Name: Scott W. Smith
	 	 	Title: President and Chief Executive Officer
	 	 	 
	 	EAGLE ROCK UPSTREAM DEVELOPMENT COMPANY II, INC. 
	 	 	 
	 	By:	/s/ Scott W. Smith
	 	 	Name: Scott W. Smith
	 	 	Title: President and Chief Executive Officer



 






    	 	 



     


    

 


	 	EAGLE ROCK ACQUISITION PARTNERSHIP, L.P.
	 	 	 
	 	By: Eagle Rock Upstream Development Company, Inc., its general partner
	 	 
	 	By:	/s/ Scott W. Smith
	 	 	Name: Scott W. Smith
	 	 	Title: President and Chief Executive Officer
	 	 	 
	 	EAGLE ROCK ACQUISITION PARTNERSHIP II, L.P.
	 	 	 
	 	 	By: Eagle Rock Upstream Development Company II, Inc., its general partner
	 	 	 
	 	By:	/s/ Scott W. Smith
	 	 	Name: Scott W. Smith
	 	 	Title: President and Chief Executive Officer
	 	 	 
	 	ESCAMBIA OPERATING CO. LLC 
	 	 	 
	 	By:	/s/ Scott W. Smith
	 	 	Name: Scott W. Smith
	 	 	Title: President and Chief Executive Officer
	 	 	 
	 	ESCAMBIA ASSET CO. LLC
	 	 	 
	 	By:	/s/ Scott W. Smith
	 	Name: Scott W. Smith
	 	Title: President and Chief Executive Officer


 




     

     


    

 


	 	COLLATERAL AGENT:
	 	 
	 	DELAWARE TRUST COMPANY, 
	 	as the Collateral Agent, 
	 	 	 
	 	By:	/s/ Alan R. Halpern
	 	 	Name: Alan R. Halpern
	 	 	Title: Vice President