Exhibit 10.2


 





EXECUTION VERSION







 


 


AMENDMENT NUMBER ONE

TO SECOND AMENDED AND RESTATED LOAN AND SECURITY AGREEMENT


 


THIS AMENDMENT NUMBER ONE TO SECOND AMENDED
AND RESTATED LOAN AND SECURITY AGREEMENT (this “Amendment”), dated as of May 22, 2020, is entered into by
and among VITAMIN SHOPPE INDUSTRIES LLC, a New York limited liability company, VITAMIN SHOPPE MARINER, LLC, a Delaware
limited liability company, VITAMIN SHOPPE GLOBAL, LLC, a Delaware limited liability company, VITAMIN SHOPPE FLORIDA,
LLC, a Delaware limited liability company, BETANCOURT SPORTS NUTRITION, LLC, a Florida limited liability company, and
VITAMIN SHOPPE PROCUREMENT SERVICES, LLC, a Delaware limited liability company (collectively, “Borrowers”
and, each individually, a “Borrower”), VALOR ACQUISITION, LLC, a Delaware limited liability company (“Parent”),
the LENDERS party hereto and JPMORGAN CHASE BANK, N.A., a national banking association, in its capacity as agent
for the Lenders (in such capacity, “Agent”), in light of the following:


 


W I T N E S S E T H


 


WHEREAS, Borrowers, Parent, Lenders and
Agent are parties to that certain Second Amended and Restated Loan and Security Agreement, dated as of December 16, 2019 (as amended,
restated, supplemented, or otherwise modified from time to time prior to the date hereof, the “Existing Credit Agreement”);


 


WHEREAS, Borrowers have requested that
Agent and the Lenders (x) make certain amendments to the Existing Credit Agreement and (y) consent to the entry by the Borrowers,
Parent, Term Loan Agent and the Term Loan Lenders party thereto into an amendment to the Term Loan Agreement, pursuant to which,
among other things, the Borrowers are agreeing to make certain prepayments of the Term Loan Outstandings (such amendment, the “Amendment
Number One to Term Loan Agreement”); and


 


WHEREAS, upon the terms and conditions
set forth herein, Agent and the Lenders have agreed to make certain amendments to the Existing Credit Agreement and consent to
the Amendment Number One to Term Loan Agreement.


 


NOW, THEREFORE, in consideration of the
foregoing and the mutual covenants herein contained, and for other good and valuable consideration, the receipt and sufficiency
of which are hereby acknowledged, the parties hereby agree as follows:


 


1.                  
Defined Terms. All initially capitalized terms used herein (including the preamble and recitals hereof) without definition
shall have the meanings ascribed thereto in Section 1 of the Credit Agreement.


 


2.                  
Amendments to Credit Agreement. Subject to the satisfaction (or waiver in writing by the Lenders) of the conditions precedent
set forth in Section 4 hereof, the Existing Credit Agreement shall be amended to reflect the changes which are attached
as Annex A hereto (the Existing Credit Agreement as amended hereby, the “Credit Agreement”), such that
on the Amendment Effective Date (as defined below) the terms set forth in Annex A hereto which appear in bold and double underlined
text (inserted text) shall be added to the Existing Credit Agreement
and the terms appearing as text which is stricken (deleted text) shall be deleted from the Existing Credit Agreement.


 






     


     


    

3.                  
Limited Consent. In reliance on the representations, warranties, covenants and agreements contained in this Amendment, and
subject to the terms and conditions precedent set forth in Section 4 hereof, Agent and the Lenders hereby consent to the
execution and delivery of the Amendment Number One to Term Loan Agreement by the Borrowers, Parent, Term Loan Agent and the Term
Loan Lenders party thereto. The consent granted herein is limited solely to the Amendment Number One to Term Loan Agreement and
nothing contained herein shall be deemed a consent to any other action or inaction of any Loan Party which constitutes (or would
constitute) a violation of any provision of the Credit Agreement or any other Financing Agreement or which results (or would result)
in a Default or Event of Default under the Credit Agreement or any other Financing Agreement. Neither Agent nor the Lenders shall
be obligated to grant any future waivers, consents or amendments with respect to any provision of the Credit Agreement or any other
Financing Agreement.


 


4.                  
Conditions Precedent to Amendment. The satisfaction (or waiver in writing by Agent and the Lenders) of each of the following
shall constitute conditions precedent to the effectiveness of this Amendment (such date being the “Amendment Effective
Date”):


 


(a)               
Agent shall have received this Amendment, duly executed by the parties hereto, and the same shall be in full force and effect.


 


(b)               
Agent shall have received a fully executed copy of the Amendment Number One to Term Loan Agreement, which shall be in form and
substance satisfactory to Agent.


 


(c)               
After giving effect to this Amendment, with respect to each Borrower and Parent, the representations and warranties contained herein,
in the Credit Agreement, and in the other Financing Agreements, in each case, shall be true and correct in all material respects
(except that such materiality qualifier shall not be applicable to any representations and warranties that already are qualified
or modified as to “materiality” or “Material Adverse Effect” in the text thereof, which representations
and warranties are true and correct in all respects subject to such qualification) on and as of the date hereof, to the same extent
as though made on and as of the date hereof, except to the extent that such representations and warranties specifically relate
to an earlier date (provided, that the representations and warranties in Section 8.10 of the Credit Agreement are expressly deemed
to specifically relate to the Closing Date), in which case such representations and warranties shall have been true and correct
in all material respects (except that such materiality qualifier shall not be applicable to any representations or warranties that
already are qualified or modified as to “materiality” or “Material Adverse Effect” in the text thereof,
which representations and warranties shall be true and correct in all respects subject to such qualification) on and as of such
earlier date.


 


(d)               
No event has occurred and is continuing or would result from the consummation of the transactions contemplated herein that would
constitute a Default or Event of Default.


 


(e)               
Borrowers and Parent shall pay substantially concurrently with the closing of this Amendment, all fees, costs, expenses and taxes
then payable pursuant to the Credit Agreement and Section 6 of this Amendment.


 


5.                  
Representations and Warranties. Each Borrower and Parent, jointly and severally, hereby:


 


		(a)	represents and warrants that, each of the representations and warranties made to Agent and Lenders
under the Credit Agreement and all of the other Financing Agreements are true and correct in all material respects on and as of
the date hereof (after giving effect to this Amendment and the other documents executed in connection with this Amendment) except
to the extent that (i) such representations or warranties are qualified by a materiality standard, in which case they shall be
true and correct in all respects, or (ii) such representations or warranties expressly relate to an earlier date (provided, that
the representations and warranties in Section 8.10 of the Credit Agreement are expressly deemed to expressly relate to the Closing
Date) (in which case such representations and warranties shall be true and correct in all material respects as of such earlier
date (or, if such representations or warranties are qualified by a materiality standard, in all respects as of such earlier date));



 



    2


     


    




		(b)	reaffirms all of the covenants contained in the Credit Agreement, as amended hereby;



 


		(c)	represents and warrants that, after giving effect to this Amendment, no Default or Event of Default
has occurred and is continuing;



 


		(d)	represents and warrants that the execution, delivery and performance by each Loan Party of this
Amendment and the other documents, agreements and instruments executed by any Loan Party in connection herewith (collectively,
together with this Amendment, the “Amendment Documents”) and the consummation of the transactions contemplated
hereby or thereby, are within such Loan Party’s powers, have been duly authorized by all necessary organizational action,
and do not contravene (i) the charter or operating agreement or other organizational or governing documents of such Loan Party
or (ii) any law or any contractual restriction binding on or affecting any Loan Party, except, for purposes of this clause (ii),
to the extent such contravention would not reasonably be expected to have a Material Adverse Effect;



 


		(e)	represents and warrants that no authorization or approval or other action by, and no notice to
or filing with, any Governmental Authority or any other third party is required for the due execution, delivery and performance
by any Loan Party of any Amendment Document to which it is a party that has not already been obtained if the failure to obtain
such authorization, approval or other action could reasonably be expected to result in a Material Adverse Effect;



 


		(f)	represents and warrants that each Amendment Document has been duly executed and delivered by each
Loan Party party thereto; and



 


		(g)	represents and warrants that this Amendment constitutes, and each other Amendment Document to be
executed on the date hereof will constitute, upon execution, the legal, valid and binding obligation of each Loan Party party thereto
enforceable against such Loan Party in accordance with its respective terms, subject to the effect of any applicable bankruptcy,
insolvency, reorganization or moratorium or similar laws relating to or affecting the rights of creditors generally and subject
to general principles of equity (regardless of whether enforcement is sought in a proceeding at law or in equity).



 


6.                  
Payment of Costs and Fees. As provided in Section 9.22 of the Credit Agreement and subject to the limitations expressly
set forth therein, the Borrowers and Parent shall pay to Agent and the Lenders all expenses incurred in connection with the preparation,
negotiation, execution and delivery of this Amendment and any documents and instruments relating hereto.


 


7.                  
GOVERNING LAW; CHOICE OF FORUM; SERVICE OF PROCESS; JURY TRIAL WAIVER. THIS AMENDMENT SHALL BE SUBJECT TO THE PROVISIONS
REGARDING GOVERNING LAW, CHOICE OF FORUM, SERVICE OF PROCESS AND JURY TRIAL WAIVER SET FORTH IN SECTION 11.1 OF THE CREDIT
AGREEMENT, AND SUCH PROVISIONS ARE INCORPORATED HEREIN BY THIS REFERENCE, MUTATIS MUTANDIS.


 






    3


     


    

8.                  
Amendments. This Amendment cannot be altered, amended, changed or modified in any respect except in accordance with Section
11.4 of the Credit Agreement.


 


9.                  
Counterpart Execution. This Amendment may be executed in any number of counterparts and by different parties on separate
counterparts, each of which, when executed and delivered, shall be deemed to be an original, and all of which, when taken together,
shall constitute but one and the same Amendment. The words “execution,” “signed,” “signature,”
and words of like import in this Amendment or in any other certificate, agreement or document related to this Amendment or any
other Financing Agreement shall include images of manually executed signatures transmitted by facsimile or other electronic format
(including, without limitation, “pdf”, “tif” or “jpg”) and other electronic signatures (including,
without limitation, DocuSign). The use of electronic signatures and electronic records (including, without limitation, any contract
or other record created, generated, sent, communicated, received, or stored by electronic means) shall be of the same legal effect,
validity and enforceability as a manually executed signature or use of a paper-based record-keeping system to the fullest extent
permitted by applicable law, including the Federal Electronic Signatures in Global and National Commerce Act, the New York State
Electronic Signatures and Records Act and any other applicable law, including, without limitation, any state law based on the Uniform
Electronic Transactions Act or the Uniform Commercial Code.


 


10.              
Effect on Financing Agreements.


 


(a)               
The Credit Agreement and each of the other Financing Agreements shall be and remain in full force and effect in accordance with
their respective terms and hereby are ratified and confirmed in all respects. The execution, delivery, and performance of this
Amendment shall not operate, except as expressly set forth herein, as a modification or waiver of any right, power, or remedy of
Agent or any Lender under the Credit Agreement or any other Financing Agreement. Except for the amendments to the Credit Agreement
expressly set forth herein, the Credit Agreement and the other Financing Agreements shall remain unchanged and in full force and
effect. The waivers, consents and modifications set forth herein, if any, are limited to the specifics hereof (including facts
or occurrences on which the same are based), shall not apply with respect to any facts or occurrences other than those on which
the same are based, shall neither excuse any future non-compliance with the Financing Agreements nor operate as a waiver of any
Default or Event of Default, shall not operate as a consent to any further waiver, consent or amendment or other matter under the
Financing Agreements, and shall not be construed as an indication that any future waiver or amendment of covenants or any other
provision of the Credit Agreement will be agreed to, it being understood that the granting or denying of any waiver or amendment
which may hereafter be requested by Borrower remains in the sole and absolute discretion of Agent and Lenders. To the extent that
any terms or provisions of this Amendment conflict with those of the Credit Agreement or the other Financing Agreements, the terms
and provisions of this Amendment shall control.


 


(b)               
Upon and after the effectiveness of this Amendment, each reference in the Credit Agreement to “this Agreement”, “hereunder”,
“herein”, “hereof” or words of like import referring to the Credit Agreement, and each reference in the
other Financing Agreements to “the Credit Agreement”, “thereunder”, “therein”, “thereof”
or words of like import referring to the Credit Agreement, shall mean and be a reference to the Credit Agreement as modified and
amended hereby.


 


(c)               
To the extent that any of the terms and conditions in any of the Financing Agreements shall contradict or be in conflict with any
of the terms or conditions of the Credit Agreement, after giving effect to this Amendment, such terms and conditions are hereby
deemed modified or amended accordingly to reflect the terms and conditions of the Credit Agreement as modified or amended hereby.


 


(d)               
This Amendment is a Financing Agreement.


 






    4


     


    

(e)               
Unless the context of this Amendment clearly requires otherwise, references to the plural include the singular, references to the
singular include the plural, the terms “includes” and “including” are not limiting, and the term “or”
has, except where otherwise indicated, the inclusive meaning represented by the phrase “and/or”. The words “hereof,”
“herein,” “hereby,” “hereunder,” and similar terms in this Amendment refer to this Amendment
as a whole and not to any particular provision of this Amendment. Section, subsection, clause, schedule, and exhibit references
herein are to this Amendment unless otherwise specified. Any reference in this Amendment to any agreement, instrument, or document
shall include all alterations, amendments, changes, extensions, modifications, renewals, replacements, substitutions, joinders,
and supplements, thereto and thereof, as applicable (subject to any restrictions on such alterations, amendments, changes, extensions,
modifications, renewals, replacements, substitutions, joinders, and supplements set forth herein). Any reference herein to the
Obligations shall (i) mean “Obligations” as defined in the Credit Agreement (including any interest and other amounts
which would accrue and become due but for the commencement of any case with respect to a Borrower or Guarantor under the United
States Bankruptcy Code or any similar statute, whether or not such amounts are allowed or allowable in whole or in part in such
case) and (ii) include all or any portion thereof and any extensions, modifications, renewals, or alterations thereof, both prior
and subsequent to the commencement of any case with respect to a Borrower or Guarantor under the United States Bankruptcy Code
or any similar statute.


 


11.              
Entire Agreement. This Amendment, and the terms and provisions hereof, the Credit Agreement and the other Financing Agreements
constitute the entire understanding and agreement between the parties hereto with respect to the subject matter hereof and supersede
any and all prior or contemporaneous amendments or understandings with respect to the subject matter hereof, whether express or
implied, oral or written.


 


12.              
Integration. This Amendment, together with the other Financing Agreements, incorporates all negotiations of the parties
hereto with respect to the subject matter hereof and is the final expression and agreement of the parties hereto with respect to
the subject matter hereof.


 


13.              
Reaffirmation of Obligations. Each Loan Party hereby (a) acknowledges and reaffirms its obligations owing to Agent and each
Lender under each Financing Agreement to which it is a party (including, in respect of Parent, its guaranty of the Obligations),
and (b) agrees that each of the Financing Agreements to which it is a party is and shall remain in full force and effect as modified
hereby. Each Loan Party hereby (i) further ratifies and reaffirms the validity and enforceability of all of the Liens and security
interests heretofore granted, pursuant to and in connection with the Existing Credit Agreement or any other Financing Agreement
to Agent, on behalf and for the benefit of each Lender, as collateral security for the obligations under the Financing Agreements
in accordance with their respective terms, and (ii) acknowledges that all of such Liens and security interests, and all Collateral
heretofore pledged as security for such obligations, continue to be and remain collateral for such obligations from and after the
date hereof (including, without limitation, from after giving effect to this Amendment).


 


14.              
Severability. In case any provision in this Amendment shall be invalid, illegal or unenforceable, such provision shall be
severable from the remainder of this Amendment and the validity, legality and enforceability of the remaining provisions shall
not in any way be affected or impaired thereby.


 


[Signature pages follow]


 



    5


     


    




IN WITNESS WHEREOF, the parties have entered into this Amendment as
of the date first above written.


 


VALOR ACQUISITION, LLC,


as Parent





By: /s/ Charles D. Knight 

Name: Charles D. Knight


Title: Executive Vice President and Chief Financial
Officer


 


VITAMIN SHOPPE INDUSTRIES LLC,


as a Borrower






By: Valor Acquisition, LLC, its sole member



By: /s/ Charles D. Knight 

Name: Charles D. Knight


Title: Executive Vice President and Chief Financial
Officer


 


VITAMIN SHOPPE MARINER, LLC,


as a Borrower






By: Vitamin Shoppe Industries LLC, its sole member


By: Valor Acquisition, LLC, its sole member



By: /s/ Charles D. Knight 

Name: Charles D. Knight


Title: Executive Vice President and Chief Financial
Officer


 


VITAMIN SHOPPE GLOBAL, LLC,


as a Borrower






By: Vitamin Shoppe Industries LLC, its sole member


By: Valor Acquisition, LLC, its sole member



By: /s/ Charles D. Knight 

Name: Charles D. Knight


Title: Executive Vice President and Chief Financial
Officer


 






    
[Signature Page to Amendment Number One]


     


    

VITAMIN SHOPPE FLORIDA, LLC


as a Borrower






By: Vitamin Shoppe Industries LLC, its sole member


By: Valor Acquisition, LLC, its sole member



By: /s/ Charles D. Knight 

Name: Charles D. Knight


Title: Executive Vice President and Chief Financial
Officer


 


BETANCOURT SPORTS NUTRITION, LLC,


as a Borrower






By: Vitamin Shoppe Industries LLC, its sole member


By: Valor Acquisition, LLC, its sole member



By: /s/ Charles D. Knight 

Name: Charles D. Knight


Title: Executive Vice President and Chief Financial
Officer


 


VITAMIN SHOPPE PROCUREMENT SERVICES, LLC


as a Borrower






By: Vitamin Shoppe Industries LLC, its sole member


By: Valor Acquisition, LLC, its sole member



By: /s/ Charles D. Knight 

Name: Charles D. Knight


Title: Executive Vice President and Chief Financial
Officer


 






    
[Signature Page to Amendment Number One]


     


    

JPMORGAN CHASE BANK, N.A.,


as Agent






		By:	/s/ James A. Knight 

Name: James A. Knight

Title: Authorized Officer



 


 


 JPMORGAN CHASE BANK, N.A.,

as Lender and Issuing Bank


 


		By:	/s/ James A. Knight 

Name: James A. Knight

Title: Authorized Officer



 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 






    
[Signature Page to Amendment Number One]


     


    

Annex A


Amended Credit Agreement


[See attached.]


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 



     


     


    









EXECUTION VERSION


 


ANNEX
A


 


Conformed
Copy


 


Amendment
Number One to Second Amended and Restated Loan and Security Agreement dated as of May 22, 2020







 


 


 


 


 








 


SECOND AMENDED AND RESTATED LOAN AND SECURITY
AGREEMENT


 


by and among


 


VITAMIN SHOPPE INDUSTRIES LLC,

and

certain Subsidiaries of Vitamin Shoppe Industries LLC

as Borrowers


 


and


 


VALOR ACQUISITION, LLC (successor by merger to
Vitamin Shoppe, Inc.)

as Parent


 


THE LENDERS AND ISSUING BANK FROM TIME TO TIME
PARTY HERETO


 


JPMORGAN CHASE BANK, N.A.

as Administrative Agent


 


Dated: December 16, 2019


 


 


 


 


 


 


 


 


 


 


 



     


     


    




TABLE OF CONTENTS


 


 


Page


 


	Section 1.	DEFINITIONS	2
	Section 2.	CREDIT FACILITIES	55
	2.1	Revolving Loans	55
	2.2	[Reserved]	56
	2.3	Letters of Credit	56
	2.4	Termination, Reductions or Increases of Aggregate Revolving Commitment Amounts	61
	2.5	Revolving Commitments	64
	2.6	Bank Products	64
	2.7	Joint and Several Liability	64
	2.8	Defaulting Lenders	65
	2.9	Prepayment of Loans	67
	2.10	Loans and Borrowings.	68
	2.11	Requests for Borrowings.	69
	2.12	Interest Elections	69
	Section 3.	INTEREST AND FEES	70
	3.1	Interest Payments	71
	3.2	Fees	71
	3.3	Increased Costs	72
	3.4	Alternate Rate of Interest; Illegality.	74
	3.5	Withholding of Taxes; Gross-Up.	75
	3.6	Mitigation of Obligations; Replacement of Lenders.	79
	3.7	Break Funding Payments	80
	Section 4.	CONDITIONS PRECEDENT	80
	4.1	Conditions Precedent to Effectiveness	80
	4.2	Conditions Precedent to All Loans and Letters of Credit	84
	Section 5.	GRANT AND PERFECTION OF SECURITY INTEREST	84
	5.1	Grant of Security Interest	84
	5.2	Perfection of Security Interests	86
	Section 6.	COLLECTION AND ADMINISTRATION	92
	6.1	Borrowers’ Loan Accounts	92
	6.2	Statements	92
	6.3	Collection of Accounts	92
	6.4	Payments	94
	6.5	[Reserved]	97
	6.6	Authorization to Make Loans	97
	6.7	Use of Proceeds	97
	




    i


     


    


	6.8	Appointment of Administrative Borrower as Agent for Requesting Loans and Receipts of Loans and Statements	98
	6.9	Pro Rata Treatment	98
	6.10	Sharing of Payments, Etc	99
	6.11	.	99
	6.12	Settlement Procedures	100
	6.13	Obligations Several; Independent Nature of Lenders’ Rights	102
	Section 7.	COLLATERAL REPORTING AND COVENANTS	102
	7.1	Collateral Reporting	102
	7.2	Accounts Covenants	104
	7.3	Inventory Covenants	104
	7.4	Equipment and Real Property Covenants	105
	7.5	Delivery of Instruments, Chattel Paper and Documents	106
	7.6	Intellectual Property Appraisal	106
	7.7	Power of Attorney	106
	7.8	Right to Cure	108
	7.9	Access to Premises	109
	Section 8.	REPRESENTATIONS AND WARRANTIES	109
	8.1	Corporate Existence, Power and Authority	109
	8.2	Name; State of Organization; Chief Executive Office; Collateral Locations	110
	8.3	Financial Statements; No Material Adverse Change	110
	8.4	Priority of Liens; Title to Properties	110
	8.5	Tax Returns	111
	8.6	Litigation	111
	8.7	Compliance with Other Agreements and Applicable Laws	111
	8.8	Environmental Compliance	112
	8.9	Employee Benefits	112
	8.10	Bank Accounts	113
	8.11	Intellectual Property	113
	8.12	Subsidiaries; Capitalization; Solvency	114
	8.13	Labor Disputes	115
	8.14	Restrictions on Subsidiaries	115
	8.15	Material Contracts	116
	8.16	Credit Card Agreements	116
	8.17	Investment Company Status	116
	8.18	Accuracy and Completeness of Information	116
	8.19	Survival of Warranties; Cumulative	117
	8.20	Reaffirmation of Financing Documents	117
	8.21	Anti-Corruption Laws and Sanctions	117
	8.22	Regulatory Compliance	117
	Section 9.	AFFIRMATIVE AND NEGATIVE COVENANTS	119
	9.1	Maintenance of Existence	119
	9.2	New Collateral Locations	120
	9.3	Compliance with Laws, Regulations, Etc	120
	




    ii


     


    


	9.4	Payment of Taxes and Claims	121
	9.5	Insurance	121
	9.6	Financial Statements and Other Information	122
	9.7	Sale of Assets, Consolidation, Merger, Dissolution, Etc	125
	9.8	Encumbrances	129
	9.9	Indebtedness	132
	9.10	Loans, Investments, Etc	135
	9.11	Dividends and Redemptions	138
	9.12	Transactions with Affiliates	139
	9.13	Compliance with ERISA	140
	9.14	Fiscal Year	140
	9.15	Change in Business	140
	9.16	Limitation of Restrictions Affecting Subsidiaries	140
	9.17	[Reserved]	141
	9.18	Credit Card Agreements	141
	9.19	License Agreements	142
	9.20	Foreign Assets Control Regulations, Etc	142
	9.21	After Acquired Real Property	143
	9.22	Costs and Expenses	143
	9.23	Further Assurances	144
	9.24	Permitted Payments of Indebtedness	146
	9.25	Commodity Exchange Act Keepwell Provisions	147
	9.26	Disbursement Cash Management Systems	147
	9.27	Amendments to Term Loan Documents	147
	9.28	Valor Merger	147
	9.29	Parent Holding Company Status	147
	9.30	Post-Closing Equity Contribution and Fundamental Change Company Notice.	148
	9.31	Post-Closing Obligations.	148
	Section 10.	EVENTS OF DEFAULT AND REMEDIES	149
	10.1	Events of Default	149
	10.2	Remedies	151
	10.3	Borrowers’ and Guarantors’ Obligations Upon Default	154
	10.4	Grant of Intellectual Property License	155
	Section 11.	JURY TRIAL WAIVER; OTHER WAIVERS AND CONSENTS; GOVERNING LAW	155
	11.1	Governing Law; Choice of Forum; Service of Process; Jury Trial Waiver	155
	11.2	Waiver of Notices	157
	11.3	Collateral Waivers	157
	11.4	Amendments and Waivers	157
	11.5	Waiver of Counterclaims	160
	11.6	Indemnification	160
	Section 12.	THE AGENT	161
	12.1	Appointment, Powers and Immunities	161
	




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	12.2	Reliance by Agent	161
	12.3	Events of Default	162
	12.4	Chase in its Individual Capacity	162
	12.5	Indemnification	162
	12.6	Non-Reliance on Agent and Other Lenders	163
	12.7	Failure to Act	164
	12.8	Additional Loans	164
	12.9	Concerning the Collateral and the Related Financing Agreements	164
	12.10	Field Audit, Examination Reports and other Information; Disclaimer by Lenders	164
	12.11	Collateral Matters	165
	12.12	Agency for Perfection	167
	12.13	Successor Agent	167
	12.14	Other Agent Designations	167
	12.15	Intercreditor Agreement	168
	12.16	Posting of Communications	168
	Section 13.	TERM OF AGREEMENT; MISCELLANEOUS	170
	13.1	Term	170
	13.2	Interpretative Provisions	171
	13.3	Notices	172
	13.4	Partial Invalidity	174
	13.5	Confidentiality	174
	13.6	Successors	175
	13.7	Assignments; Participations	175
	13.8	Entire Agreement	178
	13.9	USA Patriot Act	178
	13.10	Counterparts, Etc	178
	13.11	Restatement	178
	13.12	Acknowledgment Regarding Any Supported QFCs	179
	13.13	Intercreditor Agreement	179




 


 


 


 


 


 


 


 


 


 


 






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INDEX

TO

EXHIBITS AND SCHEDULES


 


	Exhibit A	 	Form of Assignment and Assumption
	Exhibit B	 	Information Certificate
	Exhibit C	 	Form of Compliance Certificate
	Exhibit D	 	Form of Borrowing Base Certificate
	Exhibit E-1	 	Form of U.S. Tax Certificate
	Exhibit E-2	 	Form of U.S. Tax Certificate
	Exhibit E-3	 	Form of U.S. Tax Certificate
	Exhibit E-4	 	Form of U.S. Tax Certificate
	Exhibit F	 	Form of Commitment Increase Agreement
	Exhibit G	 	Form of Additional Lender Agreement
	Exhibit H	 	Form of Borrower Joinder Agreement
	 	 	 
	Schedule 1	 	Revolving Commitments
	Schedule 5.2(g)	 	Commercial Tort Claims
	Schedule 8.2	 	Addresses
	Schedule 8.4	 	Liens
	Schedule 8.6	 	Litigation
	Schedule 8.10	 	Bank Accounts
	Schedule 8.11	 	Intellectual Property
	Schedule 8.12	 	Affiliates and Subsidiaries, etc.
	Schedule 8.13	 	Collective Bargaining Agreements
	Schedule 8.15	 	Material Contracts
	Schedule 8.16	 	Credit Card Agreements
	Schedule 9.9	 	Existing Indebtedness
	Schedule 9.10	 	Loans and Advances
	Schedule 9.31	 	Post-Closing Obligations




 


 


 


 


 


 


 


 


 


 






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SECOND AMENDED AND RESTATED LOAN AND SECURITY
AGREEMENT


 


This Second Amended and Restated Loan and Security
Agreement dated December 16, 2019 (this “Agreement”) is by and among Vitamin Shoppe Industries LLC, a New York
limited liability company, Vitamin Shoppe Mariner, LLC, a Delaware limited liability company, Vitamin Shoppe Global, LLC,
a Delaware limited liability company, Vitamin Shoppe Florida, LLC, a Delaware limited liability company, Betancourt Sports
Nutrition, LLC, a Florida limited liability company, Vitamin Shoppe Procurement Services, LLC, a Delaware limited liability company,
as Borrowers, Valor Acquisition, LLC, a Delaware limited liability company (successor by merger to Vitamin Shoppe, Inc.) (“Parent”),
as Parent and a Guarantor, the parties hereto from time to time as lenders (each individually, a “Lender” and
collectively, “Lenders” as hereinafter further defined) and JPMorgan Chase Bank, N.A., a national banking association,
in its capacity as agent for the Lenders (in such capacity, “Agent” as hereinafter further defined).


 


WITNESSETH:


 


WHEREAS, Borrowers, Guarantors (as such term
is defined below), Agent and Lenders, are parties to that certain Amended and Restated Loan and Security Agreement dated as of
January 20, 2011 (as amended, supplemented or otherwise modified from time to time prior to the date hereof, the “Existing
Credit Agreement”); and


 


WHEREAS, on the date hereof, Vitamin Shoppe,
Inc., a Delaware corporation and prior to the consummation of the Valor Merger, the direct or indirect parent of the Borrowers
(“Original Parent”), will merge with and into Parent in accordance with the Valor Merger Agreement (as hereinafter
defined) with Parent continuing as the surviving company, and after the consummation of the Valor Merger (as hereinafter defined),
the Borrowers will be direct or indirect subsidiaries of Parent and Ultimate Parent; and


 


WHEREAS, subject to the conditions precedent
set forth herein, the parties hereto desire to amend and restate the Existing Credit Agreement in its entirety in the form of this
Agreement; and


 


NOW, THEREFORE, in consideration of the premises,
the representations, warranties, covenants and agreements contained herein, and other good and valuable consideration, the receipt
and adequacy of which are hereby acknowledged, and subject to the satisfaction of each condition precedent contained in Section 4.1
hereof, the Existing Credit Agreement shall be amended and restated as of the Closing Date (as defined below) in the form of this
Agreement. It is the intention of Borrowers, Guarantors, Agent and Lenders, and such parties hereby agree, that this Agreement
supersedes and replaces the Existing Credit Agreement in its entirety, and that (a) such amendment and restatement shall operate
to renew, amend and modify certain of the rights and obligations of the parties under the Existing Credit Agreement as provided
herein, but shall not act as a novation thereof, and (b) the Liens securing the “Obligations” under and as defined
in the Existing Credit Agreement shall not be extinguished, but shall be carried forward and shall secure such obligations and
Indebtedness as renewed, amended, restated and modified hereby. The parties hereto further agree as follows:


 



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		Section 1.	DEFINITIONS



 


For purposes of this Agreement, the following
terms shall have the respective meanings given to them below:


 


“2019 Commitment Letter”
shall mean that certain Commitment Letter dated as of August 7, 2019, by and among Ultimate Parent and JPMorgan Chase Bank, N.A..


 


“ABR Borrowing” shall mean
a Borrowing of ABR Loans.


 


“ABR Loans” shall mean any
Loans or portion thereof on which interest is payable based on the Alternate Base Rate in accordance with the terms thereof.


 


“Accounts” shall have the
meaning set forth in Article 9 of the UCC and includes, without limitation, as to each Borrower and Guarantor, all present
and future rights of such Borrower and Guarantor to payment of a monetary obligation, whether or not earned by performance, which
is not evidenced by Chattel Paper or an Instrument, (a) for property that has been or is to be sold, leased, licensed, assigned,
or otherwise disposed of, (b) for services rendered or to be rendered, (c) for a secondary obligation incurred or to be incurred,
(d) arising out of the use of a credit or charge card or information contained on or for use with the card or (e) arising out of
franchising agreements.


 


“Account Debtor” shall have
the meaning set forth in Article 9 of the UCC.


 


“ACH Transactions” shall
mean the automatic clearing house transfer of funds by Agent, any Lender or any of their respective Affiliates for the account
of any Borrower or its Subsidiaries, in each case pursuant to agreements entered into with any Borrower or any of its Subsidiaries.


 


“Additional Lender Agreement”
has the meaning assigned to such term in Section 2.4(d)(ii).


 


“Adjusted LIBO Rate” means,
with respect to any Eurodollar Borrowing for any Interest Period or for any ABR Borrowing, an interest rate per annum (rounded
upwards, if necessary, to the next 1/16 of 1%) equal to (a) the LIBO Rate for such Interest Period multiplied by (b) the
Statutory Reserve Rate.


 


“Administrative Borrower”
shall mean Vitamin Shoppe in its capacity as Administrative Borrower on behalf of itself and the other Borrowers pursuant to Section 6.8
hereof and its successors and assigns in such capacity.


 


“Administrative Questionnaire”
means an Administrative Questionnaire in a form supplied by the Agent.


 


“Affiliate” shall mean, with
respect to a specified Person, any other Person which directly or indirectly, through one or more intermediaries, controls or is
controlled by or is under common control with such Person. For the purposes of this definition, the term “control”
(including with correlative meanings, the terms “controlled by” and “under common control with”),
as used with respect to any Person, means the possession, directly or indirectly, of the power to direct or cause the direction
of the management and policies of such Person, whether through the ownership of Voting Stock, by agreement or otherwise. Without
limiting the foregoing, Ultimate Parent and any Subsidiary of Ultimate Parent shall be considered Affiliates of the Borrowers for
purposes of this Agreement.


 






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“Agent” shall mean JPMorgan
Chase Bank, N.A., in its capacity as agent on behalf of Lenders pursuant to the terms hereof and any replacement or successor agent
hereunder.


 


“Agent Payment Account” shall
mean account no. XXXXX9773 of Agent at Chase, or such other account of Agent as Agent may from time to time designate to Administrative
Borrower as the Agent Payment Account for purposes of this Agreement and the other Financing Agreements.


 


“Aggregate Revolving Commitment Amounts”
shall mean, at any time, the sum of the Revolving Commitments, as the same may be adjusted pursuant to Section 2.4.
As of the Closing Date, the Aggregate Revolving Commitment Amounts are $100,000,000.


 


“Aggregate Revolving Exposure”
shall mean, at any time, the aggregate amount of Revolving Exposure of all Revolving Lenders.


 


“Alternate Base Rate” means,
for any day, a rate per annum equal to the greatest of (a) the Prime Rate in effect on such day, (b) the NYFRB Rate in effect on
such day plus 1⁄2 of 1% and (c) the Adjusted LIBO Rate for a one month Interest Period on such day (or if such day is not
a Business Day, the immediately preceding Business Day) plus 1%, provided that, for the purpose of this definition, the
Adjusted LIBO Rate for any day shall be based on the LIBO Screen Rate (or if the LIBO Screen Rate is not available for such one
month Interest Period, the Interpolated Rate) at approximately 11:00 a.m. London time on such day. Any change in the Alternate
Base Rate due to a change in the Prime Rate, the NYFRB Rate or the Adjusted LIBO Rate shall be effective from and including the
effective date of such change in the Prime Rate, the NYFRB Rate or the Adjusted LIBO Rate, respectively. If the Alternate Base
Rate is being used as an alternate rate of interest pursuant to Section 3.4, then the Alternate Base Rate shall be the greater
of clause (a) and (b) above and shall be determined without reference to clause (c) above. For the avoidance of doubt, if the Alternate
Base Rate as determined pursuant to the foregoing would be less than 1.00%, such rate shall be deemed to be 1.00% for purposes
of this Agreement.


 


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


 


“Applicable Margin” means,
for any day, with respect to any Revolving Loan, the applicable rate per annum set forth below under the caption “Revolver
ABR Spread” or “Revolver Eurodollar Spread”, as the case may be, based upon the Borrowers’ Average Excess
Availability for the prior fiscal quarter as of the most recent determination date, provided that until the delivery to Agent,
pursuant to Section 7.1(a)(i), of the Borrowers’ Borrowing Base Certificate for the fiscal quarter ended March 30,
2020, the “Applicable Margin” shall be the applicable rate per annum set forth below in Category 3:


 



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	Average Excess Availability	Revolver

ABR Spread	Revolver Eurodollar Spread
	
        Category 1:

         

        Average Excess Availability greater than or equal to 66%
of the Borrowing Cap
	0.25%	1.25%
	
        Category 2:

         

        Average Excess Availability less than 66% but greater than
or equal to 33% of the Borrowing Cap
	0.50%	1.50%
	
        Category 3:

         

        Average Excess Availability less than 33% of the Borrowing
Cap
	0.75%	1.75%


 


For purposes of the foregoing, (a) the Applicable Margin shall be
determined as of the end of each fiscal quarter of the Borrowers based upon the Borrowers’ Average Excess Availability for
the prior fiscal quarter upon Agent’s receipt of the Borrowers’ Borrowing Base Certificate delivered pursuant to Section 7.1(a)(i)
and (b) each change in the Applicable Margin resulting from a change in the Borrowers’ Average Excess Availability for the
prior fiscal quarter shall be effective during the period commencing on and including the date of delivery to Agent of such Borrowing
Base Certificate indicating such change and ending on the date immediately preceding the effective date of the next such change,
provided that the Borrowers’ Average Excess Availability shall be deemed to be in Category 3 at the option of Agent or at
the request of the Required Lenders if the Borrowers fail to deliver the Borrowing Base Certificate required to be delivered by
them pursuant to Section 7.1(a)(i), during the period from the expiration of the time for delivery thereof until such
Borrowing Base Certificate is delivered.


 


“Approved Electronic Platform”
has the meaning assigned to it in Section 12.16(a).


 


“Asset Sale” shall mean:


 


(a)              
the sale, lease, conveyance or other disposition of any assets or rights; and


 


(b)              
the issuance of Capital Stock in any of the Borrowers or the Subsidiary Guarantors or the sale of Capital Stock in
any of the Borrowers or the Subsidiary Guarantors.


 


Notwithstanding the preceding, none of the following
items will be deemed to be an Asset Sale:


 


(i)                
any single transaction or series of related transactions that involves assets having a fair market value of less
than $1,000,000;


 


(ii)             
a transfer of assets between or among any Loan Parties;


 






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(iii)           
an issuance of Capital Stock by a Loan Party (other than Parent) to a Loan Party;


 


(iv)            
the sale or lease of products, services, inventory, equipment, leasehold improvements, fixtures or accounts receivable
in the ordinary course of business and any sale or other disposition of damaged, worn-out or obsolete assets in the ordinary course
of business;


 


(v)              
the sale or other disposition of cash or Cash Equivalents;


 


(vi)            
the grant in the ordinary course of business of any non-exclusive license of patents, trademarks, registrations thereof
and other similar intellectual property;


 


(vii)         
any release of intangible claims or rights in connection with the loss or settlement of a bona-fide lawsuit, dispute
or other controversy;


 


(viii)       
leases or subleases in the ordinary course of business to third persons not interfering in any material respect with
the business of the Borrowers or any of the Guarantors; and


 


(ix)            
an Investment permitted under Section 9.10 and any dividend or other distribution (whether in cash, securities
or other property) with respect to any Capital Stock of the Borrowers and the Subsidiary Guarantors that are expressly permitted
under Section 9.11.


 


“Assignment and Assumption”
shall mean an Assignment and Assumption substantially in the form of Exhibit A attached hereto (with blanks appropriately
completed) delivered to Agent in connection with an assignment of a Lender’s interest hereunder in accordance with the provisions
of Section 13.7 hereof.


 


“Authorized Officer” shall
mean the individuals holding the position of president, treasurer, vice president of finance, chief executive officer, chief financial
officer or controller of Administrative Borrower, or if no such officers have been appointed or elected, the sole member of the
Administrative Borrower.


 


“Availability Block” means
an amount equal to the greater of (a) $10,000,000 and (b) ten percent (10%) of the Aggregate Revolving Commitment Amounts.


 


“Availability Reserves” shall
mean all Reserves other than Inventory Reserves.


 


“Average Excess Availability”
means, for any period, the average daily Excess Availability during such period, as determined by the Agent’s system of records.


 


“Bank Products” shall mean
any one or more of the following types of services or facilities provided to any Loan Party or its Subsidiaries by a Bank Product
Provider: (a) credit cards for commercial customers (including, without limitation, “commercial credit cards” and purchasing
cards), (b) stored value cards, (c) treasury management services (including, without limitation, controlled disbursement, ACH Transactions,
return items, overdrafts and interstate depository network services), (d) foreign exchange contracts, and (e) Hedge Agreements,
if and to the extent provided hereunder and coin and currency lines.


 






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“Bank Product Providers”
shall mean Agent, any Lender and any of their respective Affiliates that may, from time to time, provide any Bank Products to a
Loan Party or any Subsidiary of a Loan Party; each sometimes being referred to herein individually as a “Bank Product
Provider”.


 


“Bank Product Reserve” shall
mean any and all reserves that Agent may establish from time to time with the written consent of the Administrative Borrower, to
reflect any obligations, liabilities or indebtedness (contingent or otherwise) of any Borrower to Agent or any Bank Product Provider
arising under or in connection with any Bank Products or as such Bank Product Provider may otherwise require in connection therewith
to the extent that such obligations, liabilities or indebtedness constitute Obligations as such term is defined herein or otherwise
receive the benefit of the security interest of Agent in the Collateral.


 


“Beneficial Ownership Certification”
means a certification regarding beneficial ownership or control as required by the Beneficial Ownership Regulation.


 


“Beneficial Ownership Regulation”
means 31 C.F.R. § 1010.230.


 


“BHC Act Affiliate” of a
party means an “affiliate” (as such term is defined under, and interpreted in accordance with, 12 U.S.C. 1841(k)) of
such party.


 


“Blocked Accounts” shall
have the meaning set forth in Section 6.3 hereof.


 


“Borrower Joinder Agreement”
shall mean a joinder agreement in substantially the form of Exhibit H hereto and otherwise in form and substance acceptable
to Agent.


 


“Borrowers” shall mean, collectively,
the following (together with their respective successors and assigns): (a) Vitamin Shoppe; (b) VS Mariner, (c) VS Global, (d) VS
Florida, (e) BSN, (f) VSPS, and (g) any other Person that at any time after the Closing Date becomes a Borrower pursuant to the
terms hereof, including, without limitation, Section 9.23 hereof and by the execution of a Borrower Joinder Agreement;
each sometimes being referred to herein individually as a “Borrower”.


 


“Borrowing” means Revolving
Loans of the same Type, made, converted or continued on the same date and, in the case of Eurodollar Rate Loans, as to which a
single Interest Period is in effect.


 


“Borrowing Base” shall mean,
at any time, the amount equal to:


 


(a)              
the amount equal to:


 


(i)                
ninety (90%) percent of the amount of Eligible Credit Card Receivables of the Borrowers at such time, plus


 


(ii)             
up to eighty-five percent (85%) of the amount of Eligible Accounts of the Borrowers at such time, plus


 






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(iii)           
up to ninety percent (90%) of the Net Recovery Percentage multiplied by the Value of the Eligible Inventory of the
Borrowers net of any Inventory Reserves, in each case, at such time, minus


 


(b)              
the Availability Reserves.


 


The amounts of Eligible Inventory shall, at
Agent’s option, be determined based on the lesser of the amount of applicable Inventory set forth in the general ledger of
the Borrowers or the perpetual inventory record maintained by the Borrowers.


 


Agent shall have the right to establish Reserves
against or sublimits in the Borrowing Base in such amounts and with respect to such matters as Agent shall deem reasonably necessary
or appropriate, based on new information received by Agent and after Agent has completed its updated field audits, examinations
and appraisals of the Collateral; provided, however, that, so long as no Event of Default has occurred and is continuing,
Agent shall give to Administrative Borrower five (5) Business Days’ telephonic or electronic notice if (A) Agent establishes
new categories of Reserves, (B) Agent changes the methodology of calculating Reserves, or (C) Agent establishes new categories
of sublimits in the Borrowing Base. The foregoing notwithstanding, in the event Agent establishes Reserves to preserve or protect
or maximize the value of the Collateral during the continuance of an Event of Default, Agent shall only provide Administrative
Borrower with notice at the time such Reserves are established.


 


The actual advance rate percentages to be used
in calculating the amounts pursuant to clause (a)(i), clause (a)(ii), and clause (a)(iii) above, which advance
rate percentages shall not exceed the applicable maximum percentage as set forth in such clauses, shall be determined by Agent
in its Permitted Discretion. Once the applicable advance rate percentage has been established by Agent, so long as no Event of
Default has occurred and is continuing, Agent shall give to Administrative Borrower five (5) Business Days’ telephonic or
electronic notice of any change in such advance rate percentage.


 


Accounts, Credit Card Receivables and Inventory
of the Borrowers shall only be Eligible Accounts, Eligible Credit Card Receivables, and Eligible Inventory, as applicable, to the
extent that (x) Agent has conducted and completed a field examination, appraisal and other due diligence with respect thereto and
(y) the criteria for Eligible Accounts, Eligible Credit Card Receivables, and Eligible Inventory set forth herein, as applicable,
are satisfied with respect thereto in accordance with this Agreement (or such other or additional criteria as Agent may, at its
option, establish with respect thereto in accordance with this Agreement and subject to such Reserves as Agent may establish in
its Permitted Discretion).


 


The Borrowing Base shall be determined at any
time by Agent, on the basis of the most recently delivered Borrowing Base Certificate, as adjusted by Agent for any changes in
Reserves or otherwise in accordance with the terms hereof.


 


“Borrowing Base Certificate”
shall mean a certificate substantially in the form of Exhibit D hereto, as such form may from time to time be modified by
Agent to reflect modifications to the Borrowing Base and the reporting requirements pursuant to the terms of this Agreement, which
is duly completed (including all schedules thereto) and executed by the chief financial officer, a vice president of finance, a
controller or other appropriate financial officer of Administrative Borrower (or if no such officer has been appointed or elected,
the sole member of Administrative Borrower) reasonably acceptable to Agent and delivered to Agent.


 






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“Borrowing Cap” shall mean,
the amount, calculated at any date, equal to the result of (a) the lesser of (i) the Aggregate Revolving Commitment Amounts and
(ii) the Borrowing Base, in each case, in effect at such time, minus (b) the Availability Block.


 


“Borrowing Request” means
a request by the Administrative Borrower for a Borrowing in accordance with Section 2.11.


 


“BSN” shall mean Betancourt
Sports Nutrition, LLC, a Florida limited liability company.


 


“Business Day” shall mean
any day on which Agent is open for the transaction of business other than a Saturday, Sunday, or other day on which commercial
banks are authorized or required to close under the laws of the State of New York, except that if a determination of a Business
Day shall relate to any Eurodollar Rate Loans, the term Business Day shall also exclude any day on which banks are not open for
general business in London.


 


“Canadian Priority Payables”
shall mean, as to any Borrower at any time, (a) the full amount of the liabilities of such Borrower at such time which (i) have
a trust imposed to provide for payment or a security interest, pledge, lien or charge ranking or capable of ranking senior to or
pari passu with security interests, liens or charges securing the Obligations on any of the Eligible Credit Card Receivables, Eligible
Accounts, or Eligible Inventory of such Borrower located in Canada under Federal, Provincial, State, county, district, municipal,
or local law in Canada or (ii) have a right imposed to provide for payment ranking or capable of ranking senior to or pari passu
with the Obligations under local or national law of Canada, regulation or directive of Canada, including, but not limited to, claims
for unremitted and/or accelerated rents, taxes, wages, withholding taxes, VAT and other amounts payable to an insolvency administrator,
employee withholdings or deductions and vacation pay, workers’ compensation obligations, government royalties or pension
fund obligations in each case to the extent such trust, or security interest, lien or charge has been or may be imposed and (b)
the amount equal to the percentage applicable to Eligible Inventory in the calculation of the Borrowing Base multiplied by the
aggregate Value of the Eligible Inventory of such Borrower which is or may be subject to retention of title by a supplier or a
right of a supplier to recover possession thereof, where such supplier’s right has priority over the security interests,
liens or charges securing the Obligations in accordance with Section 81.1 of the Bankruptcy and Insolvency Act (Canada) or
any applicable laws granting revendication or similar rights to unpaid suppliers or any similar laws of Canada (provided,
that, to the extent such Inventory has been identified and has been excluded from Eligible Inventory, the amount owing to the supplier
shall not be considered a Canadian Priority Payable).


 


“Capital Expenditures” shall
mean, for any period, any expenditure of money under a Capital Lease or for the lease, purchase or other acquisition of any capital
asset, or for the purchase or construction of assets, or for improvements or additions thereto, which are capitalized on a Person’s
balance sheet, but excluding (i) any such expenditure to the extent of trade-ins thereon and (ii) reimbursed leasehold improvements.


 






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“Capital Leases” shall mean,
as applied to any Person, any lease of (or any agreement conveying the right to use) any property (whether real, personal or mixed)
by such Person as lessee which in accordance with GAAP, is required to be reflected as a liability on the balance sheet of such
Person.


 


“Capital Stock” shall mean,
with respect to any Person, any and all shares, interests, participations or other equivalents (however designated) of such Person’s
capital stock or partnership, limited liability company or other equity interests at any time outstanding, and any and all rights,
warrants or options exchangeable for or convertible into such capital stock or other interests (but excluding any debt security
that is exchangeable for or convertible into such capital stock).


 


“Cash Equivalents” shall
mean, at any time, (a) any evidence of Indebtedness with a maturity date of ninety (90) days or less issued or directly and fully
guaranteed or insured by the United States of America or any agency or instrumentality thereof; provided, that, the full
faith and credit of the United States of America is pledged in support thereof; (b) certificates of deposit or bankers’ acceptances
with a maturity of ninety (90) days or less of any financial institution that is a member of the Federal Reserve System having
combined capital and surplus and undivided profits of not less than $1,000,000,000; (c) commercial paper (including variable rate
demand notes) with a maturity of ninety (90) days or less issued by a corporation (except an Affiliate of any Borrower other than
Guarantor) organized under the laws of any State of the United States of America or the District of Columbia and rated at least
A-1 by S & P Global Ratings Service, a division of Standard & Poor’s Financial Services LLC, or at least P-1 by Moody’s
Investors Service, Inc.; (d) repurchase obligations with a term of not more than thirty (30) days for underlying securities of
the types described in clause (a) above entered into with any financial institution having combined capital and surplus
and undivided profits of not less than $1,000,000,000; (e) repurchase agreements and reverse repurchase agreements relating to
marketable direct obligations issued or unconditionally guaranteed by the United States of America or issued by any governmental
agency thereof and backed by the full faith and credit of the United States of America, in each case maturing within ninety (90)
days or less from the date of acquisition; provided, that, the terms of such agreements comply with the guidelines set forth
in the Federal Financial Agreements of Depository Institutions with Securities Dealers and Others, as adopted by the Comptroller
of the Currency on October 31, 1985; and (f) investments in money market funds and mutual funds which invest substantially
all of their assets in securities of the types described in clauses (a) through (e) above; and (g) other investments
as reasonably agreed by Agent in writing.


 


“Change in Law” means the
occurrence after the date of this Agreement (or, with respect to any Lender, such later date on which such Lender becomes a party
to this Agreement) of any of the following: (a) the adoption of or taking effect of any law, rule, regulation or treaty; (b) any
change in any law, rule, regulation or treaty or in the administration, interpretation, implementation or application thereof by
any Governmental Authority; or (c) compliance by any Lender or the Issuing Bank (or, for purposes of Section 3.3(b), by
any lending office of such Lender or by such Lender's or the Issuing Bank's holding company, if any) with any request, guideline,
requirement or directive (whether or not having the force of law) of any Governmental Authority made or issued after the date of
this Agreement; provided that notwithstanding anything herein to the contrary, (x) the Dodd-Frank Wall Street Reform and
Consumer Protection Act and all requests, rules, guidelines, requirements or directives thereunder or issued in connection therewith
or in the implementation thereof, and (y) all requests, rules, guidelines, requirements or directives promulgated by the Bank for
International Settlements, the Basel Committee on Banking Supervision (or any successor or similar authority) or the United States
or foreign regulatory authorities, in each case pursuant to Basel III, shall in each case be deemed to be a “Change in Law”,
regardless of the date enacted, adopted, issued or implemented.


 






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“Change of Control” shall
mean (a) a transfer (in one transaction or a series of transactions) of all or substantially all of the assets of any Borrower
or Guarantor to any “person” or “group” (as such terms are used in Sections 13(d) and 14(d) of the
Exchange Act), other than as permitted in Section 9.7 hereof; (b) the liquidation or dissolution of any Borrower or
Guarantor or the adoption of a plan by the stockholders of any Borrower or Guarantor relating to the dissolution or liquidation
of any Borrower or Guarantor, other than as permitted in Section 9.7 hereof; (c) any “person” or “group”
(as such terms are used in Sections 13(d) and 14(d) of the Exchange Act), excluding Permitted Holders, shall become,
or obtain rights (whether by means of warrants, options or otherwise) to become, the beneficial owner, directly or indirectly,
of more than thirty-five percent (35%) of the issued and outstanding shares of the Voting Stock of Ultimate Parent entitled (without
regard to the occurrence of any contingency) to vote for the election of members of the board of directors of Ultimate Parent;
(d) other than the Permitted Holders, any Person and/or its Affiliates shall at any time have the right to elect, or cause to be
elected, and have elected, or caused to be elected, a majority of the members of the board of directors of Ultimate Parent, (e)
Ultimate Parent fails to own directly or indirectly at least a majority of the voting power of the total outstanding Voting Stock
of Parent, (f) Parent fails to own directly one hundred percent (100%) of the Capital Stock of Vitamin Shoppe, (g) other than as
permitted in Section 9.7(a)(iv) hereof, Vitamin Shoppe fails to own directly or indirectly one hundred percent (100%)
of the Capital Stock of any of its Subsidiaries that are a Borrower as of the Closing Date or become a Borrower thereafter, (h)
other than as permitted in Section 9.7(a)(iv), Parent fails to own directly or indirectly one hundred percent (100%)
of the Capital Stock of any Person that becomes a Borrower after the date hereof, (i) the failure of Parent to own directly or
indirectly a majority of the voting power of the total outstanding Voting Stock of any Person that becomes a Guarantor after the
date hereof, or (j) any “Change of Control” (or equivalent term) as defined in the Term Loan Agreement occurs. Notwithstanding
the foregoing, no Change of Control shall occur as a result of the Valor Merger.


 


“Chase” shall mean JPMorgan
Chase Bank, N.A., a national banking association, in its individual capacity, and its successors.


 


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


 


“Closing Date” shall mean
December 16, 2019.


 


“Closing Date Equity Contribution”
shall have the meaning set forth in Section 4.1(v) hereof.


 


“Code” shall mean the Internal
Revenue Code of 1986, as the same now exists or may from time to time hereafter be amended, modified, recodified or supplemented,
together with all rules, regulations and interpretations thereunder or related thereto.


 






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“Collateral” shall have the
meaning set forth in Section 5.1 hereof.


 


“Collateral Access Agreement”
shall mean an agreement in writing, in form and substance reasonably satisfactory to Agent, from any lessor of premises to any
Borrower or Guarantor, or any other Person to whom any Collateral is consigned or who has custody, control or possession of any
such Collateral or is otherwise the owner or operator of any premises on which any of such Collateral is located, in favor of Agent
(or in favor of Agent and Term Loan Agent) with respect to the Collateral at such premises or otherwise in the custody, control
or possession of such lessor, consignee or other Person, inter alia, acknowledges the first priority security interest of Agent
in such Collateral, agrees to waive (or subordinate on terms acceptable to Agent) any and all claims such lessor, consignee, processor
or other person may, at any time, have against such Collateral, whether for storage or otherwise, and agrees to permit Agent access
to, and the right to remain on, the premises of such lessor, consignee, processor or other person so as to exercise Agent’s
rights and remedies and otherwise deal with such Collateral, and in the case of any customs broker, cargo consolidator, freight
forwarder, consignee or other person who at any time has custody, control or possession of any bills of lading or other documents
of title, agrees to hold such Collateral, acknowledges that it holds and will hold possession of the Collateral for the benefit
of the Agent and the Term Loan Agent and agrees to follow all instructions of Agent or Term Loan Agent (as the case may be) with
respect thereto.


 


“Collateral Documents” shall
mean, collectively, the Pledge Agreement, each Guaranty, the Deposit Account Control Agreements, the Investment Property Control
Agreements and any other agreements, instruments and documents executed in connection with this Agreement that are intended to
create, perfect or evidence liens to secure the Obligations, including, without limitation, all other security agreements, deposit
account control agreements, pledge agreements, subordination agreements, pledges, powers of attorney, assignments, financing statements
and all other written matter whether theretofore, now or hereafter executed by any Borrower or any Guarantor and delivered to Agent,
in each case as may be amended, restated, supplemented or otherwise modified from time to time.


 


“Commitment Increase Agreement”
has the meaning assigned to such term in Section 2.4(d)(ii).


 


“Commodity Exchange Act”
shall mean the Commodity Exchange Act (7 U.S.C. § 1 et seq.), as amended from time to time, and any successor statute,
and any regulations promulgated thereunder.


 


“Common Stock” shall mean
the common stock of Parent, par value $0.01 per share.


 


“Compliance Period” shall
mean any period commencing on the first date on which Excess Availability is less than the greater of (a) ten percent (10%) of
the Borrowing Cap or (b) $10,000,000, in each case for three (3) consecutive days, and continuing until the date that both (x)
Excess Availability exceeds the greater of (i) ten percent (10%) of the Borrowing Cap or (ii) $10,000,000 for sixty (60) consecutive
days, and (y) no Default or Event of Default then exists and is continuing.


 






    11


     


    

“Consolidated Depreciation and Amortization
Expense” means, with respect to any Person for any period, the total amount of depreciation and amortization expense,
including the amortization of deferred financing fees or costs, capitalized expenditures, customer acquisition costs and incentive
payments, conversion costs and contract acquisition costs, the amortization of original issue discount resulting from the issuance
of Indebtedness at less than par and amortization of favorable or unfavorable lease assets or liabilities, of such Person and its
Subsidiaries for such period on a consolidated basis and otherwise determined in accordance with GAAP.


 


“Consolidated Net Income”
shall mean with respect to any specified Person for any period, the aggregate of the Net Income of such Person and its Subsidiaries
for such period, on a consolidated basis, determined in accordance with GAAP; provided, that, the Net Income (but not loss)
of any Person that is not a Subsidiary or that is accounted for by the equity method of accounting will be included only to the
extent of the amount of dividends or similar distributions paid in cash to the specified Person or a Subsidiary of the Person;
and provided, further that there shall be excluded:


 


(a)              
the Net Income of any Subsidiary to the extent that the declaration or payment of dividends or similar distributions
by that Subsidiary of that Net Income is not at the date of determination permitted without any prior governmental approval (that
has not been obtained) or, directly or indirectly, by operation of the terms of its charter or any agreement, instrument, judgment,
decree, order, statute, rule or governmental regulation applicable to that Subsidiary or its stockholders;


 


(b)              
the cumulative effect of a change in accounting principles will be excluded;


 


(c)              
any non-recurring costs and expenses included in connection with (i) the transactions contemplated by this Agreement
and the other Financing Agreements, and (ii) any equity issuance by Parent;


 


(d)              
any non-cash compensation charges, including, any such charges arising from stock options, restricted stock grants
or other equity-incentive programs;


 


(e)              
any non-cash costs, charges or expenses relating to the application of purchase accounting;


 


(f)               
any unrealized gain or loss resulting from the application of SFAS 133 with respect to obligations in respect
of a Hedge Agreement;


 


(g)              
any non-cash goodwill impairment charges or other intangible asset impairment charges incurred subsequent to the
date of this Agreement resulting from the application of SFAS 142 or other non-cash asset impairment charges incurred subsequent
to the date of this Agreement resulting from the application of SFAS 144; and


 


(h)              
the Net Income (or deficit) of any Person accrued prior to the date it becomes a Subsidiary or is merged into or
consolidated with Parent or any of its Subsidiaries.


 






    12


     


    

In addition, to the extent included in the Consolidated Net Income
of such Person and its Subsidiaries, notwithstanding anything to the contrary in the foregoing, Consolidated Net Income shall exclude
(i) any expenses and charges that are reimbursed by indemnification or other reimbursement provisions in connection with any investment
or any sale, conveyance, transfer or other disposition of assets permitted hereunder and (ii) the amount of business interruption
insurance proceeds received and, to the extent covered by insurance and actually reimbursed, or, so long as the Borrowers have
made a determination that there exists reasonable evidence that such amount will in fact be reimbursed by the insurer and only
to the extent that such amount is (A) not denied by the applicable carrier in writing within 180 days and (B) in fact reimbursed
within 365 days of the date of such evidence (with a deduction for any amount so added back to the extent not so reimbursed within
such 365 days), expenses with respect to liability or casualty events or business interruption.


 


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


 


“Convertible Note Hedge and Warrant
Counterparty” shall mean Bank of America, N.A., JPMorgan Chase Bank, National Association or any other financial institution
in its capacity as counterparty to Parent under the applicable Convertible Note Hedge and Warrant Documents and any successor,
replacement or additional counterparty and their respective successors and assigns.


 


“Convertible Note Hedge and Warrant
Documents” shall mean the confirmations related to the Convertible Note Hedge and Warrant Transactions, in each case,
entered into between Parent and the applicable Convertible Note Hedge and Warrant Counterparty and all other agreements, documents
and instruments now or at any time executed and delivered by Parent in connection with the Convertible Note Hedge and Warrant Transactions,
as the same now exists or may hereafter be amended, modified, supplemented, extended, renewed, restated or replaced to the extent
permitted herein.


 


“Convertible Note Hedge and Warrant
Transactions” shall mean (x) the convertible note hedge transactions entered into by Parent with the Convertible
Note Hedge and Warrant Counterparty to offset any cash payments required to be made by Parent in excess of the principal amount
of the Convertible Notes that are converted or exchanged, so long as the Borrowers and Guarantors do not have any payment obligation
with respect to such convertible note hedge transactions other than premiums and charges the total amount of which are fixed and
known at the time such convertible note hedge transactions are entered into and (y) separate warrant transactions entered
into by Parent with the Convertible Note Hedge and Warrant Counterparty.


 


“Convertible Note Indenture”
shall mean that certain Indenture by and between Parent (as successor to Vitamin Shoppe, Inc.), as issuer, and Wilmington Trust,
National Association, as trustee, (or another similar financial institution) with respect to the Convertible Notes due 2020, as
amended by that certain First Supplemental Indenture, dated as of December 16, 2019, among Parent and Wilmington Trust National
Association, as the same now exists or may hereafter be amended, modified, supplemented, extended, renewed, restated or replaced
to the extent permitted herein.


 


“Convertible Notes” shall
mean, collectively, the Convertible Notes due 2020 issued by Parent (with an effective interest rate not to exceed 4%) pursuant
to the Convertible Note Indenture in the original aggregate principal amount of up to $300,000,000, as in existence on the Closing
Date.


 






    13


     


    

“Convertible Notes Escrow”
means an escrow arrangement reasonably satisfactory to the Agent for the deposit of cash required to be used to fund the Convertible
Notes Repurchase Amount into a Deposit Account reasonably acceptable to Agent, which Deposit Account shall, if Agent requests,
be subject to a Deposit Account Control Agreement.


 


“Convertible Notes Repurchase Amount”
means, as of any date of determination, the amount required to fully repurchase, redeem, defease and satisfy 100% of the then outstanding
Convertible Notes (including any make-whole premiums required thereby) in cash, which shall solely be funded by proceeds of cash
equity contributions (in the form of (i) common equity or (ii) pay-in-kind preferred equity reasonably satisfactory to
Agent) from Ultimate Parent and/or the Permitted Holders, including the Closing Date Equity Contribution and Post-Closing Equity
Contribution and shall not for the avoidance of doubt, be funded using proceeds from any (x) Asset Sale, (y) Event of Loss, or
(z) incurrence of Indebtedness.


 


“Covered Entity” means any
of the following:


 


		(a)	a “covered entity” as that term is defined in, and interpreted in accordance with, 12
C.F.R. § 252.82(b);



 


		(b)	a “covered bank” as that term is defined in, and interpreted in accordance with, 12 C.F.R.
§ 47.3(b); or



 


		(c)	a “covered FSI” as that term is defined in, and interpreted in accordance with, 12 C.F.R.
§ 382.2(b).



 


“Covered Party” has the meaning assigned
to it in Section 13.12.


 


“Credit Card Acknowledgments”
shall mean, collectively, the agreements by Credit Card Issuers or Credit Card Processors who are parties to Credit Card Agreements
in favor of Agent acknowledging Agent’s first priority security interest, for and on behalf of Lenders, in the monies due
and to become due to a Borrower (including, without limitation, credits and reserves) under the Credit Card Agreements, and agreeing
to transfer all such amounts to the Blocked Accounts, as the same now exist or may hereafter be amended, modified, supplemented,
extended, renewed, restated or replaced pursuant to their terms, sometimes being referred to herein individually as a “Credit
Card Acknowledgment”.


 


“Credit Card Agreements”
shall mean all agreements entered into on, prior and after the date hereof by any Borrower or for the benefit of any Borrower,
in each case with any Credit Card Issuer or any Credit Card Processor, as the same now exist or may hereafter be amended, modified,
supplemented, extended, renewed, restated or replaced, including, but not limited to, the agreements set forth on Schedule 8.16
hereto.


 


“Credit Card Issuer” shall
mean any Person (other than Parent and its Subsidiaries) who issues or whose members issue credit cards, including, without limitation,
MasterCard or VISA bank credit or debit cards or other bank credit or debit cards issued through MasterCard International, Inc.,
Visa, U.S.A., Inc. or Visa International and American Express, Discover, Japan Credit Bureau (a/k/a JCB Co.), Diners Club, Carte
Blanche and other non-bank credit or debit cards, including, without limitation, credit or debit cards issued by or through American
Express Travel Related Services Company, Inc., and Novus Services, Inc.


 






    14


     


    

“Credit Card Processor” shall
mean any servicing or processing agent or any factor or financial intermediary (other than Parent and its Subsidiaries) who facilitates,
services, processes or manages the credit authorization, billing transfer and/or payment procedures with respect to any Borrower’s
sales transactions involving credit card or debit card purchases by customers using credit cards or debit cards issued by any Credit
Card Issuer.


 


“Credit Card Receivables”
shall mean collectively, (a) all present and future rights of any Borrower to payment from any Credit Card Issuer or Credit Card
Processor arising from sales of goods or rendition of services to customers who have purchased such goods or services using a credit
or debit card, and (b) all present and future rights of any Borrower to payment from any Credit Card Issuer, Credit Card Processor
or other third party in connection with the sale or transfer of Credit Card Receivables arising pursuant to the sale of goods or
rendition of services to customers who have purchased such goods or services using a credit card or a debit card, including, but
not limited to, all amounts at any time due or to become due from any Credit Card Issuer or Credit Card Processor under the Credit
Card Agreements or otherwise which in the case of both clause (a) and (b) above have been earned by performance
by such Borrower but not yet been paid to such Borrower by the Credit Card Issuer or the Credit Card Processor, as applicable.


 


“Credit Facility” shall mean
the Loans and Letters of Credit provided to or for the benefit of any Borrower pursuant to Sections 2.1 and 2.3
hereof.


 


“Default” shall mean an act,
condition or event which with notice or passage of time or both would constitute an Event of Default.


 


“Default Right” has the meaning
assigned to that term in, and shall be interpreted in accordance with, 12 C.F.R. §§ 252.81, 47.2 or 382.1, as applicable.


 


“Defaulting Lender” shall
mean any Revolving Lender, as determined by Agent, that has (a) failed to fund any portion of its Revolving Loans or participations
in Letters of Credit within three Business Days of the date required to be funded by it hereunder, (b) notified any Borrower, Agent,
the Issuing Bank or any Lender in writing that it does not intend to comply with any of its funding obligations under this Agreement
or has made a public statement to the effect that it does not intend to comply with its funding obligations under this Agreement
or under other agreements in which it commits to extend credit, (c) failed, within three Business Days after request by Agent,
to confirm that it will comply with the terms of this Agreement relating to its obligations to fund prospective Revolving Loans
and participations in then outstanding Letters of Credit, (d) otherwise failed to pay over Agent or any other Lender any other
amount required to be paid by it hereunder within three Business Days of the date when due, unless the subject of a good faith
dispute, or (e) (i) become or is insolvent or has a parent company that has become or is insolvent or (ii) become the subject of
a bankruptcy or insolvency proceeding, or has had a receiver, conservator, trustee or custodian appointed for it, or has taken
any action in furtherance of, or indicating its consent to, approval of or acquiescence in any such proceeding or appointment or
has a parent company that has become the subject of a bankruptcy or insolvency proceeding, or has had a receiver, conservator,
trustee or custodian appointed for it, or has taken any action in furtherance of, or indicating its consent to, approval of or
acquiescence in any such proceeding or appointment.


 






    15


     


    

“Deposit Accounts” shall
have the meaning set forth in Article 9 of the UCC.


 


“Deposit Account Control Agreement”
shall mean an agreement in writing, in form and substance reasonably satisfactory to Agent, by and among Agent, Term Loan Agent
(if a party thereto), Borrowers or Guarantor with a Deposit Account at any bank and the bank at which such Deposit Account is at
any time maintained which provides that such bank will comply with instructions originated by Agent directing disposition of the
funds in the Deposit Account without further consent by such Borrower or Guarantor upon the occurrence of an Event of Default or
upon the commencement of a Compliance Period and at all times during the continuance of such Event of Default or Compliance Period,
and has such other terms and conditions as Agent may reasonably require including as to any such agreement with respect to any
Blocked Account, providing that all items received or deposited in the Blocked Accounts are the property of Agent, for itself and
the ratable benefit of the Lenders and the Bank Product Providers and, except as otherwise agreed with the corresponding bank and
with such other appropriate or customary exceptions for agreements of this kind, that the bank has no lien upon, or right to setoff
against, the Blocked Accounts, the items received for deposit therein, or the funds from time to time on deposit therein and that
the bank will upon the occurrence of an Event of Default or upon the commencement of a Compliance Period and at all times during
the continuance of such Event of Default or Compliance Period, wire, or otherwise transfer, in immediately available funds, on
a daily basis to the Agent Payment Account all funds received or deposited into the Blocked Accounts.


 


“Dividing Person” has the
meaning assigned to it in the definition of “Division.”


 


“Division” means the division
of the assets, liabilities and/or obligations of a Person (the “Dividing Person”) among two or more Persons
(whether pursuant to a “plan of division” or similar arrangement), which may or may not include the Dividing Person
and pursuant to which the Dividing Person may or may not survive.


 


“Division Successor” means
any Person that, upon the consummation of a Division of a Dividing Person, holds all or any portion of the assets, liabilities
and/or obligations previously held by such Dividing Person immediately prior to the consummation of such Division. A Dividing Person
which retains any of its assets, liabilities and/or obligations after a Division shall be deemed a Division Successor upon the
occurrence of such Division.


 


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


 


“dollars” or “$”
refers to lawful money of the U.S., unless the context clearly otherwise indicates.


 


“E-Payables Agreement” shall
mean that certain Bank of America Corporate Purchasing Card Agreement, dated as of June 7, 2007, by and among the parties
thereto, including Vitamin Shoppe and Bank of America, N.A.


 


“E-Payables Reserve” shall
mean any Reserves implemented by Agent pursuant to clause (b)(ii) of the definition of Obligations related to the E-Payables
Agreement.


 


“EBITDA” means, with respect
to any Person for any period, the Consolidated Net Income of such Person for such period:


 






    16


     


    

(a)              
increased (without duplication) by the following:


 


(i)                
provision for Taxes based on income or profits or capital, including, without limitation, state franchise, excise
and similar taxes, property taxes and foreign withholding taxes of such Person paid or accrued during such period, including any
penalties and interest relating to any tax examinations, deducted (and not added back) in computing Consolidated Net Income; plus


 


(ii)             
Interest Expense of such Person for such period (including (x) net losses or any obligations under any Hedge Agreement,
(y) bank fees and (z) costs of surety bonds in connection with financing activities, to the extent the same were deducted (and
not added back) in computing Consolidated Net Income); plus


 


(iii)           
Consolidated Depreciation and Amortization Expense of such Person for such period to the extent the same were deducted
(and not added back) in computing Consolidated Net Income; plus


 


(iv)            
any expenses or charges (other than depreciation or amortization expense) related to any equity offering, Investment,
acquisition, disposition or recapitalization permitted hereunder or the incurrence of Indebtedness permitted to be incurred hereunder
(including a refinancing thereof) (whether or not successful), including (A) such fees, expenses or charges related to this Agreement,
the Term Loan Agreement and any other credit facilities, (B) any amendment or other modification of this Agreement, the Term Loan
Agreement and any other credit facilities and (C) the costs and expenses incurred in connection with the Valor Merger on or prior
to the Closing Date, in each case, deducted (and not added back) in computing Consolidated Net Income; plus


 


(v)              
the amount of any restructuring charge or reserve, integration cost, severance expense or other business optimization
expense or cost or any other unusual, non-recurring or extraordinary expense, loss or cost that is deducted (and not added back)
in such period in computing Consolidated Net Income, including, any one-time costs incurred in connection with acquisitions or
divestitures after the Closing Date, costs related to the closure and/or consolidation of facilities and to existing lines of business,
costs related to new product introductions or one-time compensation charges; provided that the aggregate amount of add backs made
pursuant to this clause (a)(v) and clause (a)(vii) below (other than up to $10,000,000 in severance expenses and lease breakage
costs contemplated by the Specified Closing Plan during the term of this Agreement), which shall not be subject to or counted towards
this cap) shall not exceed an amount equal to 15% of EBITDA for such period (and such determination shall be made after the making
of, and after giving effect to, any adjustments pursuant to this clause (a)(v)); plus


 


(vi)            
any other non-cash charges, write-downs, write-offs, expenses, losses or items reducing Consolidated Net Income for
such period including deferred financing costs and other charges written off in connection with any early extinguishment of Indebtedness,
any impairment charges, write-downs or write-offs relating to goodwill, intangible assets, long-lived assets, investments in debt
and equity securities or as a result of a change in law or regulation or the impact of purchase accounting (excluding any such
non-cash charge, write-down or item to the extent it represents an accrual or reserve for a cash expenditure for a future period),
or other items classified by the Borrowers as non-recurring items less other non-cash items of income increasing Consolidated Net
Income (excluding any such non-cash item of income to the extent it represents a receipt of cash in any future period); plus


 






    17


     


    

(vii)         
the amount of “run-rate” cost savings, operating expense reductions and synergies projected by the Borrowers
in good faith to result from actions taken prior to or during or expected to be taken following such period (which cost savings,
operating expense reductions or synergies shall be subject only to certification by an authorized officer of the Borrowers (or
if no applicable officers have been appointed or elected, the sole member or members of the applicable Borrower(s)) and shall be
calculated on a pro forma basis as though such cost savings, operating expense reductions or synergies had been realized on the
first day of such period), net of the amount of actual benefits realized prior to or during such period from such actions; provided
that (1) an authorized officer of the Borrowers (or if no applicable officers have been appointed or elected, the sole member or
members of the applicable Borrower(s)) shall have certified to the Agent that (x) such cost savings, operating expense reductions
or synergies are reasonably identifiable, reasonably attributable to the actions specified and reasonably anticipated to result
from such actions and (y) such actions have been taken or are to be taken within twelve (12) months from the date of such transaction
and (2) the aggregate amount of add backs made pursuant to clause (a)(v) above and this clause (a)(vii) (other than up to $10,000,000
in severance expenses and lease breakage costs contemplated by the Specified Closing Plan during the term of this Agreement, which
shall not be subject to or counted towards this cap) shall not exceed an amount equal to 15% of EBITDA for such period (and such
determination shall be made after the making of, and after giving effect to, any adjustments pursuant to this clause (a)(vii));
plus


 


(viii)       
any costs or expense incurred by the Parent or any of its Subsidiaries pursuant to any management equity plan or
stock option plan or any other management or employee benefit plan or agreement or any stock subscription or shareholder agreement,
to the extent that such cost or expenses are non-cash or otherwise funded with cash proceeds contributed to the capital of the
Parent or any of its Subsidiaries or net cash proceeds of an issuance of Capital Stock (other than disqualified equity interests)
of the Parent or any of its Subsidiaries; plus


 


(ix)            
earnout and contingent consideration obligations (including to the extent accounted for as bonuses or otherwise)
and adjustments thereof and purchase price adjustments to the extent deducted (and not added back) in computing Consolidated Net
Income; plus


 


(x)              
any net loss included in Consolidated Net Income attributable to non-controlling interests pursuant to the application
of Accounting Standards Codification Topic 810-10-45 of the Financial Accounting Standards Board (“FASB”); plus


 


(xi)            
non-cash realized foreign exchange losses resulting from the impact of foreign currency changes on the valuation
of assets or liabilities on the balance sheet of the Loan Parties and their Subsidiaries;


 


(b)              
decreased (without duplication) by the following:


 


(i)                
non-cash gains increasing Consolidated Net Income of such Person for such period, excluding any non-cash gains to
the extent they represent the reversal of an accrual or cash reserve for a potential cash item that reduced EBITDA in any prior
period and any non-cash gains with respect to cash actually received in a prior period so long as such cash did not increase EBITDA
in such prior period; plus


 






    18


     


    

(ii)             
realized foreign exchange income or gains resulting from the impact of foreign currency changes on the valuation
of assets or liabilities on the balance sheet of the Borrowers and their Subsidiaries; plus


 


(iii)           
any amount included in Consolidated Net Income of such Person for such period attributable to non-controlling interests
pursuant to the application of FASB Accounting Standards Codification Topic 810-10-45;


 


(c)              
increased or decreased (without duplication) by, as applicable, any adjustments resulting from the application of
FASB Accounting Standards Codification Topic 460 or any comparable regulation; and


 


(d)              
increased or decreased (without duplication) by any net gain (or loss) from disposed, abandoned or discontinued operations
and any net gain (or loss) on disposal of disposed, discontinued or abandoned operations.


 


In determining EBITDA for any period, on a pro forma basis without
duplication, (A) the consolidated EBITDA of any Person acquired by Parent and or any of its Subsidiaries, all or substantially
all of the assets of a Person, or any business unit, line of business or division of any Person acquired by the Parent or any of
its Subsidiaries during such period (but not the EBITDA of any related Person, property, business or assets to the extent not so
acquired), to the extent not subsequently sold, transferred or otherwise disposed of by the Parent or any of its Subsidiaries during
such period (each such Person, property, business or asset acquired and not subsequently so disposed of, an “Acquired
Entity or Business”), based on the actual acquired EBITDA of such Acquired Entity or Business for such period (including
the portion thereof occurring prior to such acquisition) shall be included, and (B) the EBITDA of any Person or business unit,
line of business or division of any Person sold, transferred, or otherwise disposed of or closed or classified as discontinued
operations by the Parent or any of its Subsidiaries to any Person (other than the Parent or any of its Subsidiaries) during such
period (each such Person, property, business or asset sold, transferred or otherwise disposed of, closed or classified as discontinued
operations by the Parent or any of its Subsidiaries during such period a “Disposed Entity or Business”), based
on the actual EBITDA of such Disposed Entity or Business for such period (including the portion thereof occurring prior to such
disposition) shall be excluded.


 


“ECP” shall mean an “eligible
contract participant” as defined in Section 1(a)(18) of the Commodity Exchange Act and the applicable rules and regulations
issued by the Commodity Futures Trading Commission and/or the Securities Exchange Commission.


 


“Electronic System” means
any electronic system, including e-mail, e-fax, web portal access for such Borrower and any other Internet or extranet-based site,
whether such electronic system is owned, operated or hosted by the Agent or any Issuing Bank and any of its respective Related
Parties or any other Person, providing for access to data protected by passcodes or other security system.


 






    19


     


    

“Eligible Accounts” shall
mean, at any time, the Accounts of a Borrower which Agent determines in its Permitted Discretion are eligible as the basis for
the extension of Loans and the issuance of Letters of Credit. Without limiting Agent’s Permitted Discretion provided herein,
Eligible Accounts shall not include any Account of a Borrower:


 


(a)              
which is not subject to a first priority perfected security interest in favor of Agent;


 


(b)              
which is subject to any lien other than (i) a lien in favor of Agent and (ii) a Permitted Encumbrance or a Lien permitted
pursuant to Section 9.8(s), in each case, which does not have priority over the lien in favor of Agent;


 


(c)              
(i) with respect to which the scheduled due date is more than sixty (60) days after the date of the original invoice
therefor, (ii) which, is unpaid more than ninety (90) days after the date of the original invoice therefor or more than sixty (60)
days after the original due date, therefor (“Overage”) (when calculating the amount under this clause (ii),
for the same Account Debtor, Agent shall include the net amount of such Overage and add back any credits, but only to the extent
that such credits do not exceed the total gross receivables from such Account Debtor, or (iii) which has been written off the books
of such Borrower or otherwise designated as uncollectible;


 


(d)              
which is owing by an Account Debtor for which more than fifty percent (50%) of the Accounts owing from such Account
Debtor and its Affiliates are ineligible hereunder;


 


(e)              
which is owing by an Account Debtor to the extent the aggregate amount of Accounts owing from such Account Debtor
and its Affiliates to (i) such Borrower exceeds ten percent (10%) of the aggregate amount of Eligible Accounts of such Borrower
or (ii) all Borrowers exceeds ten percent (10%) of the aggregate amount of Eligible Accounts of all Borrowers;


 


(f)               
with respect to which any covenant, representation, or warranty contained in this Agreement or any other Financing
Agreement has been breached in any material respect or is not true in any material respect;


 


(g)              
which (i) does not arise from the sale of goods or performance of services in the ordinary course of business, (ii)
is not evidenced by an invoice or other documentation satisfactory to Agent in its Permitted Discretion which has been sent to
the Account Debtor, (iii) represents a progress billing, (iv) is contingent upon such Borrower’s completion of any further
performance, (v) represents a sale on a bill-and-hold, guaranteed sale, sale-and-return, sale on approval, consignment, cash-on-delivery
or any other repurchase or return basis, (vi) relates to payments of interest or (vii) constitutes a Franchisee Receivable, other
than a Franchise Receivable arising after the Closing Date owing by a franchisee that has been approved by Agent in its Permitted
Discretion pursuant to a franchise agreement that has been approved by Agent in its Permitted Discretion;


 


(h)              
for which the goods giving rise to such Account have not been shipped to the Account Debtor or for which the services
giving rise to such Account have not been performed by such Borrower or if such Account was invoiced more than once;


 






    20


     


    

(i)                
with respect to which any check or other instrument of payment has been returned uncollected for any reason;


 


(j)                
which is owed by an Account Debtor which has (i) applied for, suffered, or consented to the appointment of any receiver,
custodian, trustee, or liquidator of its assets, (ii) had possession of all or a material part of its property taken by any receiver,
custodian, trustee or liquidator, (iii) filed, or had filed against it, any request or petition for liquidation, reorganization,
arrangement, adjustment of debts, adjudication as bankrupt, winding-up, or voluntary or involuntary case under any state or federal
bankruptcy laws (other than post-petition accounts payable of an Account Debtor that is a debtor-in-possession under the United
States Bankruptcy Code and reasonably acceptable to Agent), (iv) admitted in writing its inability, or is generally unable to,
pay its debts as they become due, (v) become insolvent, or (vi) ceased operation of its business;


 


(k)              
which is owed by any Account Debtor which has sold all or a substantially all of its assets;


 


(l)                
which is owed by an Account Debtor which (i) does not maintain its chief executive office in the U.S. or Canada or
(ii) is not organized under applicable law of the U.S., any state of the U.S., Canada, or any province of Canada unless, in either
case, such Account is backed by a Letter of Credit acceptable to Agent which is in the possession of, and is directly drawable
by, Agent;


 


(m)            
which is owed in any currency other than U.S. dollars or Canadian dollars;


 


(n)              
which is owed by (i) the government (or any department, agency, public corporation, or instrumentality thereof) of
any country other than the U.S. unless such Account is backed by a Letter of Credit acceptable to Agent which is in the possession
of, and is directly drawable by, Agent, or (ii) the government of the U.S., or any department, agency, public corporation, or instrumentality
thereof, unless the Federal Assignment of Claims Act of 1940, as amended (31 U.S.C. § 3727 et seq. and 41 U.S.C. §
15 et seq.), and any other steps necessary to perfect the lien of Agent in such Account have been complied with to Agent’s
satisfaction;


 


(o)              
which is owed by any Affiliate of any Borrower or any Guarantor or any employee, officer, director, agent or stockholder
of any Borrower, any Guarantor or any of their Affiliates;


 


(p)              
which, for any Account Debtor, exceeds a credit limit determined by Agent in its Permitted Discretion, to the extent
of such excess;


 


(q)              
which is owed by an Account Debtor or any Affiliate of such Account Debtor to which any Borrower or any Guarantor
is indebted, but only to the extent of such indebtedness, or is subject to any security, deposit, progress payment, retainage or
other similar advance made by or for the benefit of an Account Debtor, in each case to the extent thereof;


 


(r)               
which is subject to any counterclaim, deduction, defense, setoff or dispute but only to the extent of any such counterclaim,
deduction, defense, setoff or dispute;


 






    21


     


    

(s)               
which is evidenced by any promissory note, chattel paper, or instrument;


 


(t)                
which is owed by an Account Debtor (i) located in any jurisdiction which requires filing of a “Notice of Business
Activities Report” or other similar report in order to permit such Borrower to seek judicial enforcement in such jurisdiction
of payment of such Account, unless such Borrower has filed such report or qualified to do business in such jurisdiction or (ii)
which is a Sanctioned Person;


 


(u)              
with respect to which such Borrower has made any agreement with the Account Debtor for any reduction thereof, other
than discounts and adjustments given in the ordinary course of business, or any Account which was partially paid and such Borrower
created a new receivable for the unpaid portion of such Account;


 


(v)              
which does not comply in all material respects with the requirements of all applicable laws and regulations, whether
Federal, state or local, including without limitation the Federal Consumer Credit Protection Act, the Federal Truth in Lending
Act and Regulation Z of the Federal Reserve Board;


 


(w)            
which is for goods that have been sold under a purchase order or pursuant to the terms of a contract or other agreement
or understanding (written or oral) that indicates or purports that any Person other than such Borrower has or has had an ownership
interest in such goods, or which indicates any party other than such Borrower as payee or remittance party;


 


(x)              
which was created on cash on delivery terms; or


 


(y)              
which is a Credit Card Receivable;


 


provided that, the aggregate amount of
Eligible Accounts in respect of Franchisee Receivables shall not exceed the amount equal to ten percent (10%) of the Borrowing
Cap at any time.


 


In the event that an Account of a Borrower which was previously
an Eligible Account ceases to be an Eligible Account hereunder, such Borrower or Administrative Borrower shall notify thereof on
and at the time of submission to Agent of the next Borrowing Base Certificate. In determining the amount of an Eligible Account
of a Borrower, the face amount of an Account may, in Agent’s Permitted Discretion, be reduced by, without duplication, to
the extent not reflected in such face amount, (i) the amount of all accrued and actual discounts, claims, credits or credits pending,
promotional program allowances, price adjustments, finance charges or other allowances (including any amount that such Borrower
may be obligated to rebate to an Account Debtor pursuant to the terms of any agreement or understanding (written or oral)) and
(ii) the aggregate amount of all cash received in respect of such Account but not yet applied by such Borrower to reduce the amount
of such Account.


 


“Eligible Credit Card Receivables”
shall mean, the gross amount of Credit Card Receivables of Borrowers that are subject to a valid, first priority and fully perfected
security interest in favor of the Agent for itself and the Secured Parties, which conform to all applicable warranties contained
herein, less, without duplication, (a) the sum of all Credit Card Receivables: (i) for which Agent has not received a Credit Card
Acknowledgment pursuant to Section 9.31 if the Credit Card Agreement exists on the Closing Date (or if the Credit Card Agreement
is entered into after the Closing Date, no later than ninety (90) days after the date of such Credit Card Agreement or such later
date as is acceptable to Agent), and (ii) which are unpaid more than five (5) Business Days after the date of the sale of Inventory
giving rise to such Credit Card Receivable, and (b) amounts owing to Credit Card Issuers or Credit Card Processors in connection
with the Credit Card Agreements.


 






    22


     


    

“Eligible Depository Bank”
means:


 


(a)              
Any Lender or any of its Affiliates;


 


(b)              
Bank of America, N.A.; or


 


(c)              
Any other Person who is a commercial bank or financial institution having total assets in excess of $1,000,000,000;
organized under the laws of any country that is a member of the Basel Accord and the Organization of Economic Cooperation and Development,
or a political subdivision of any such country, so long as such bank or financial institution is acting through a branch or agency
located in the United States.


 


“Eligible Inventory” shall
mean, as to each Borrower, Inventory of such Borrower consisting of finished goods held for resale in the ordinary course of the
business of such Borrower, that satisfy the criteria set forth below as reasonably determined by Agent. Eligible Inventory shall
not include: (a) work-in-process; (b) raw materials; (c) spare parts for Equipment; (d) packaging and shipping materials; (e) supplies
used or consumed in such Borrower’s business; (f) Inventory located (i) at premises other than a premise which is owned or
leased by any Borrower or (ii) in any third party warehouse or in the possession of a bailee (other than a third Party processor)
unless Agent has received, subject to Section 9.31, a Collateral Access Agreement in respect of such premises on terms and
conditions reasonably satisfactory to Agent (Inventory of any Borrower which is in-transit from any location of Borrower permitted
herein to another such location shall be considered Eligible Inventory, provided, that, it otherwise satisfies the criteria for
Eligible Inventory set forth herein and is not in-transit more than ten (10) consecutive days; provided, further, that, the aggregate
amount of Eligible Inventory consisting of in-transit Inventory shall not exceed the amount equal to ten percent (10%) of the Value
of all Inventory of Borrowers at such time); (g) Inventory subject to a security interest or lien in favor of any Person other
than Agent except those permitted in this Agreement that are subject to an intercreditor agreement in form and substance satisfactory
to Agent between the holder of such security interest or lien and Agent and those liens described in clause (j) below;
(h) bill and hold goods; (i) Inventory which is past its expiration date; (j) Inventory that is not subject to the first priority,
valid and perfected security interest of Agent except in the case of those non-consensual statutory liens described in Section 9.8(c)(i)
hereof, liens permitted under Section 9.8(s) so long as such liens are subject to the Intercreditor Agreement, and landlord,
warehouseman or similar liens (i) in respect of which Agent has established a Reserve (if and only to the extent establishment
of a Reserve is permitted by the terms hereof), (ii) for which no Reserve is provided by the terms hereof, or (iii) in respect
of which premises Agent has received a Collateral Access Agreement pursuant to which the landlord, warehouseman or bailee, as applicable,
has either waived or subordinated its lien on terms and conditions reasonably satisfactory to Agent; (k) returned Inventory which
is not held for sale in the ordinary course of business, (l) damaged and/or defective Inventory; (m) Inventory purchased or sold
on consignment, (n) Inventory located outside the United States of America, unless otherwise approved by Agent in writing; provided,
that, Inventory in Canada shall be deemed Eligible Inventory if Agent has a valid, first priority and fully perfected first priority
security interest therein, as determined by Agent, in its sole discretion, provided, that, such Inventory otherwise satisfies the
criteria with respect to Eligible Inventory; (o) Inventory which may become subject to the claims of a supplier pursuant to Section 81.1
of the Bankruptcy and Insolvency Act (Canada), R.S.C. 1985, c.B-3, as amended, or any applicable provincial laws granting revendication
or similar rights to unpaid suppliers; and (p) Inventory which has been acquired from a Sanctioned Person. The criteria for Eligible
Inventory set forth above may only be changed and any new criteria for Eligible Inventory may only be established by Agent in its
good faith based on either: (i) an event, condition or other circumstance arising after the date hereof, or (ii) an event, condition
or other circumstance existing on the date hereof to the extent Agent has no written notice thereof from a Borrower prior to the
date hereof in either case under clause (i) or (ii) which materially and adversely affects or could reasonably
be expected to materially and adversely affect the Inventory, its value or the amount that would be received by Agent from the
sale or other disposition or realization upon such Inventory as determined by Agent in its good faith and commercially reasonable
determination. Any Inventory that is not Eligible Inventory shall nevertheless be part of the Collateral.


 






    23


     


    

“Eligible Transferee” shall
mean (a) any Lender; (b) the parent company of any Lender and/or any Affiliate of such Lender which is at least fifty (50%) percent
owned by such Lender or its parent company; (c) any Person that is engaged in the business of making, purchasing, holding or otherwise
investing in bank loans and similar extensions of credit in the ordinary course of its business and is administered or managed
by a Lender or with respect to any Lender that is a fund which invests in bank loans and similar extensions of credit, any other
fund that invests in bank loans and similar extensions of credit and is managed by the same investment advisor as such Lender or
by an Affiliate of such investment advisor, in each case is approved by Agent and, unless an Event of Default under Section
10.1(a), Section 10.1(g) or Section 10.1(h) has occurred and is continuing at the time any assignment is
effected hereunder, Administrative Borrower (such approval not to be unreasonably withheld, conditioned or delayed by Administrative
Borrower, provided, that, (i) Administrative Borrower’s failure to consent to an assignment to a “distressed
debt” purchaser, a “vulture” fund or other similar assignee or buyer shall not be deemed unreasonable and (ii)
no such consent shall be required in connection with any assignment to another Lender or to an Affiliate of any Lender); and (d)
any other commercial bank, financial institution or “accredited investor” (as defined in Regulation D under the Securities
Act of 1933) approved by Agent (such approval not to be unreasonably withheld, conditioned or delayed) and, unless an Event of
Default under Section 10.1(a), Section 10.1(g) or Section 10.1(h) has occurred and is continuing at the
time any assignment is effected hereunder, Administrative Borrower, provided, that, (i) neither any Borrower nor any Guarantor
or any Affiliate of any Borrower or Guarantor shall qualify as an Eligible Transferee; (ii) no Person to whom any Indebtedness
which is in any way subordinated in right of payment to any other Indebtedness of any Borrower or Guarantor shall qualify as an
Eligible Transferee, except, in each case, as Agent may otherwise specifically agree; and (iii) a competitor of Borrowers shall
not be deemed an “Eligible Transferee” under any circumstances except after the occurrence of either (A) an Event of
Default for non-payment of any principal amount of Obligations owing hereunder or (B) the occurrence of an Event of Default with
respect to any Borrower or Guarantor set forth in Section 10.1(g) or Section 10.1(h) hereof.


 


 


 


 


 


 


 


 


 


 






    24


     


    

“Environmental Events” shall
have the meaning set forth in Section 9.3(b) hereof.


 


“Environmental Laws” shall
mean all foreign, Federal, State and local laws (including common law), rules, codes, licenses, permits (including any conditions
imposed therein), authorizations, legally binding judicial or administrative decisions, injunctions or agreements between Borrower
and any Governmental Authority, (a) relating to pollution and the protection, preservation or restoration of the environment (including
air, water vapor, surface water, ground water, drinking water, drinking water supply, surface land, subsurface land, plant and
animal life or any other natural resource), (b) relating to the exposure of humans to, or the use, storage, recycling, treatment,
generation, manufacture, processing, distribution, transportation, handling, labeling, production, release or disposal, or threatened
release, of hazardous, toxic or dangerous substances, materials, and wastes, or (c) imposing requirements with regard to recordkeeping,
notification, disclosure and reporting respecting hazardous, toxic or dangerous substances, materials, and wastes. The term “Environmental
Laws” includes (i) the Federal Comprehensive Environmental Response, Compensation and Liability Act of 1980, the Federal
Superfund Amendments and Reauthorization Act, the Federal Water Pollution Control Act of 1972, the Federal Clean Water Act, the
Federal Clean Air Act, the Federal Resource Conservation and Recovery Act of 1976 (including the Hazardous and Solid Waste Amendments
thereto), the Federal Solid Waste Disposal and the Federal Toxic Substances Control Act, the Federal Insecticide, Fungicide and
Rodenticide Act, and the Federal Safe Drinking Water Act of 1974, (ii) applicable state counterparts to such laws and (iii) any
common law or equitable doctrine that imposes liability or obligations for injuries or damages due to, or threatened as a result
of, the presence of or exposure to any hazardous, toxic or dangerous substances, materials, and wastes.


 


“Equipment” shall have the
meaning set forth in Article 9 of the UCC and includes, without limitation, as to each Borrower and Guarantor, all of such
Borrower’s and Guarantor’s now owned and hereafter acquired equipment, wherever located, including machinery, data
processing and computer equipment (whether owned or licensed and including embedded software), vehicles, tools, furniture, fixtures,
all attachments, accessions and property now or hereafter affixed thereto or used in connection therewith, and substitutions and
replacements thereof, wherever located.


 


“Equity Commitment Letter”
shall mean that certain letter agreement dated August 7, 2019 (as amended by that certain letter agreement dated December 16, 2019)
by and between Tributum, L.P., a Delaware limited partnership (“Tributum”) and Ultimate Parent pursuant to which
Tributum will provide no less than $60,000,000 in cash equity proceeds to Ultimate Parent, which will be contributed by Ultimate
Parent and its Subsidiaries to Parent on or after the Closing Date.


 


“ERISA” shall mean the United
States Employee Retirement Income Security Act of 1974, as amended, together with all rules, regulations and interpretations thereunder
or related thereto.


 


“ERISA Affiliate” shall mean
any Person required to be aggregated with any Borrower, any Guarantor or any of its or their respective Subsidiaries under Sections 414(b),
414(c), 414(m) or 414(o) of the Code.


 


“ERISA Event” shall mean
(a) any “reportable event”, as defined in Section 4043(c) of ERISA or the regulations issued thereunder,
with respect to a Plan, except for any such event with respect to which notice has been waived pursuant to applicable regulations;
(b) the adoption of any amendment to a Plan that would require the provision of security pursuant to Section 401(a)(29) of
the Code or Section 307 of ERISA; (c) the existence with respect to any Plan of an “accumulated funding deficiency”
(as defined in Section 412 of the Code or Section 302 of ERISA), whether or not waived; (d) the filing pursuant to Section 412
of the Code or Section 303(d) of ERISA of an application for a waiver of the minimum funding standard with respect to any
Plan; (e) the occurrence of a non-exempt “prohibited transaction” with respect to which Borrower, or any of their respective
Subsidiaries is a “disqualified Person” (within the meaning of Section 4975 of the Code); (f) a complete
or partial withdrawal by Borrower, or any ERISA Affiliate from a Multiemployer Plan or a cessation of operations which is treated
as such a withdrawal or notification that a Multiemployer Plan is in reorganization; (g) the filing of a notice of intent to terminate,
the treatment of a Plan amendment as a termination under Section 4041 or 4041A of ERISA, or the commencement of proceedings
by the Pension Benefit Guaranty Corporation to terminate a Plan; (h) an event or condition which might reasonably be expected to
constitute grounds under Section 4042 of ERISA for the termination of, or the appointment of a trustee to administer, any
Plan; (i) the imposition of any liability under Title IV of ERISA, other than the Pension Benefit Guaranty Corporation premiums
due but not delinquent under Section 4007 of ERISA, upon Borrower, or any ERISA Affiliate in an amount that could reasonably
be expected to have a Material Adverse Effect.


 






    25


     


    

“Eurodollar Borrowing” shall
mean a Borrowing of Eurodollar Rate Loans.


 


“Eurodollar Rate Loans” shall
mean any Loan or portion thereof on which interest is payable based on the Adjusted LIBO Rate in accordance with the terms hereof.


 


“Event of Default” shall
mean the occurrence or existence of any event or condition described in Section 10.1 hereof.


 


“Event of Loss” means, with
respect to any property, any of the following: (a) any loss, destruction or damage of such property; or (b) any actual condemnation,
seizure or taking, by exercise of the power of eminent domain or otherwise, of such property, or confiscation of such property
or the requisition of the use of such property; which for the avoidance of doubt, shall not include store closings or liquidations.


 


“Excess Availability” shall
mean, the amount, as determined by Agent, calculated at any date, equal to: (a) the Borrowing Cap minus (b) the Aggregate
Revolving Exposure.


 


“Exchange Act” shall mean
the Securities Exchange Act of 1934, together with all rules, regulations and interpretations thereunder or related thereto.


 


“Excluded Accounts” means
(a) Zero Balance Accounts, (b) Store Accounts, (c) accounts into which government receivables and government reimbursement payments
are deposited, (d) payroll accounts (including accounts used for the disbursement of payroll, payroll taxes and other employee
wage and benefit payments, including 401(k) and other retirement plans, rabbi trusts for deferred compensation and health care
benefits), (e) withholding and trust accounts, escrow and other fiduciary accounts, and (f) Manual Sweeping Accounts.


 


“Excluded Hedge Obligation”
shall mean, with respect to any Borrower or Guarantor, any Hedge Obligation if, and to the extent that, all or a portion of the
guarantee of such Borrower or Guarantor of, or the grant by such Borrower or Guarantor of a security interest to secure, such Hedge
Obligation (or any guarantee thereof) is or becomes illegal under the Commodity Exchange Act or any rule, regulation or order of
the Commodity Futures Trading Commission (or the application or official interpretation of any thereof) (a) by virtue of such Borrower’s
or Guarantor’s failure for any reason to constitute an ECP at the time the guarantee of such Borrower or Guarantor or the
grant of such security interest becomes effective with respect to such Hedge Obligation or (b) in the case of a Hedge Obligation
subject to a clearing requirement pursuant to Section 2(h) of the Commodity Exchange Act (or any successor provision thereto),
because such Borrower or Guarantor is a “financial entity,” as defined in Section 2(h)(7)(C)(i) of the Commodity
Exchange Act (or any successor provision thereto), at the time the guarantee of such Borrower or Guarantor becomes effective with
respect to such related Hedge Obligation. If a Hedge Obligation arises under a master agreement governing more than one swap, such
exclusion shall apply only to the portion of such Hedge Obligation that is attributable to swaps for which such guarantee or security
interest is or becomes illegal.


 






    26


     


    

“Excluded Taxes” means any
of the following Taxes imposed on or with respect to a Recipient or required to be withheld or deducted from a payment to a Recipient:
(a) Taxes imposed on or measured by net income (however denominated), franchise Taxes, and branch profits Taxes, in each case,
(i) imposed as a result of such Recipient being organized under the laws of, or having its principal office or, in the case of
any Lender, its applicable lending office located in, the jurisdiction imposing such Tax (or any political subdivision thereof)
or (ii) that are Other Connection Taxes; (b) in the case of a Lender, U.S. Federal withholding Taxes imposed on amounts payable
to or for the account of such Lender with respect to an applicable interest in a Loan, Letter of Credit or Revolving Commitment
pursuant to a law in effect on the date on which (i) such Lender acquires such interest in the Loan, Letter of Credit or Revolving
Commitment (other than pursuant to an assignment request by the Borrowers under Section 3.6(b)) or (ii) such Lender changes
its lending office, except in each case to the extent that, pursuant to Section 3.5, amounts with respect to such Taxes
were payable either to such Lender's assignor immediately before such Lender acquired the applicable interest in a Loan, Letter
of Credit or Revolving Commitment or to such Lender immediately before it changed its lending office; (c) Taxes attributable to
such Lender’s failure to comply with Section 3.5(f); and (d) any withholding Taxes imposed under FATCA.


 


“Existing Credit Agreement”
shall have the meaning assigned to such term in the recitals to this Agreement.


 


“Existing Pledge Agreements”
shall mean (a) that certain Stock Pledge Agreement dated as of September 25, 2009, by and between Original Parent and Agent, (b)
that certain Amended and Restated Stock Pledge Agreement dated as of October 11, 2013, by and between Vitamin Shoppe and Agent,
(c) that certain Stock Pledge Agreement dated as of August 21, 2014, by and between VS Global and Agent, and (d) that certain Stock
Pledge Agreement, dated as of August 21, 2014, by and between VS Florida and Agent, in each case, as the same may be amended, restated
or otherwise modified from time to time prior to the date hereof.


 


“FATCA” shall mean Sections 1471
through 1474 of the Code, as of the date of this Agreement (or any amended or successor version that is substantively comparable
and not materially more onerous to comply with), any current or future regulations or official interpretations thereof and any
agreement entered into pursuant to Section 1471(b)(1) of the Code and any fiscal or regulatory legislation, rules or practices
adopted pursuant to any intergovernmental agreement, treaty or convention among Governmental Authorities and implementing such
Sections of the Code.


 






    27


     


    

“Federal Funds Effective Rate”
means, for any day, the rate calculated by the NYFRB based on such day’s federal funds transactions by depositary institutions
(as determined in such manner as the NYFRB shall set forth on its public website from time to time) and published on the next succeeding
Business Day by the NYFRB as the effective federal funds rate, provided that, if the Federal Funds Effective Rate as so determined
would be less than zero, such rate shall be deemed to be zero for the purposes of this Agreement.


 


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


 


“Fee Letter” shall mean the
fee letter, dated as of August 7, 2019, by and among Ultimate Parent and Agent, setting forth certain fees payable by Borrowers
to Agent for the benefit of itself and Lenders, as the same now exists or may hereafter be amended, modified, supplemented, extended,
renewed, restated or replaced.


 


“Financing Agreements” shall
mean, collectively, this Agreement, the First Amendment, the
Intercreditor Agreement, the Collateral Documents and all notes, guarantees, security agreements, intercreditor agreements, the
Fee Letter and all other agreements, documents and instruments now or at any time hereafter executed and/or delivered by any Borrower
or Guarantor in connection with this Agreement.


 


“First
Amendment” means that certain Amendment Number One to Second Amended and Restated Loan and Security Agreement dated as of
May 22, 2020, by and among the Borrowers, Parent, the Lenders party thereto and the Agent. 


 


“Fixed Charge Coverage Ratio”
shall mean, as to any Person for any period, the ratio of: (a) EBITDA for such Person and its Subsidiaries minus the unfinanced
portion of Capital Expenditures paid in cash during such period to (b) Fixed Charges, all calculated for any Person on a consolidated
basis in accordance with GAAP.


 


“Fixed Charges” shall mean,
with respect to any Person for any period, the sum of, without duplication, (a) all cash Interest Expense paid during such period
(net of interest income of such Person during such period and excluding, to the extent taken into account in the calculation of
Interest Expense, upfront fees, costs and expenses in respect of this Agreement and any other issuance of Indebtedness permitted
hereunder and the transactions contemplated hereby and thereby), plus (b) all prepayments (other than (i) prepayments and
refinancings with respect to the Permitted Subordinated Indebtedness and the Convertible Notes, in each case to the extent permitted
hereunder, (ii) prepayments made with the proceeds of refinancings of such Indebtedness prepaid to the extent permitted hereunder,
(iii) prepayments made with, and within one-hundred eighty (180) days of receipt of, the net proceeds of new equity capital contributed
after the date of this Agreement, and (iv) prepayments of Indebtedness permitted under Section 9.9(b) required in connection
with any disposition or casualty of assets financed and securing such Indebtedness, which prepayments shall be in an amount not
to exceed the net proceeds received as a result of such disposition or casualty event) and regularly scheduled principal repayments
in respect of Indebtedness for borrowed money and Indebtedness with respect to Capital Leases paid during such period in cash (excluding
the interest component with respect to Indebtedness under Capital Leases), plus (c) all income taxes paid during such period
in cash (net of refunds or tax credits to such Person in respect of income taxes, and excluding income tax on extraordinary or
non-recurring gains or gains from asset sales outside of the ordinary course of business) plus (d) dividends or distributions
paid in cash (including, without limitation, Permitted Tax Distributions), all as determined for any Person on a consolidated basis
and in accordance with GAAP.


 






    28


     


    

“Foreign Lender” shall mean
any Lender that is not a U.S. Person.


 


“Foreign Subsidiary” shall
mean a Subsidiary of Parent that is organized or incorporated under the laws of any jurisdiction outside of the United States of
America; sometimes being referred to herein collectively as “Foreign Subsidiaries”.


 


“Franchisee Receivable” shall
mean an Account of a Borrower owed by an Account Debtor in respect of payment obligations of such Account Debtor under any franchise
agreement arising from the sale of Inventory by a Borrower to a franchisee (excluding, for the avoidance of doubt, franchise fees).


 


“Frequent Buyer Program”
shall mean the Borrowers’ “Healthy Awards” customer loyalty program, which as in effect on the Closing Date is
described at https://www.vitaminshoppe.com/lp/Newhealthyaward.


 


“GAAP” shall mean generally
accepted accounting principles in the United States of America as in effect from time to time as set forth in the opinions and
pronouncements of the Accounting Principles Board and the American Institute of Certified Public Accountants and the statements
and pronouncements of the Financial Accounting Standards Board or such other principles as may be approved by a significant segment
of the accounting profession in the United States (including any principles required by the Securities and Exchange Commission),
that are applicable to the circumstances as of the date of determination, consistently applied. If there occurs after the date
of this Agreement any change in GAAP that affects the calculation of any requirements, terms or covenants set forth in this Agreement
or any other Financing Agreement (whether contained in Section 9.24 or otherwise), Agent and Borrowers shall negotiate
in good faith to amend the provisions of this Agreement and the other Financing Agreements that relate to the calculation of such
requirements, terms and covenants with the intent of having the respective positions of the Lenders and Borrowers after such change
in GAAP conform as nearly as possible to their respective positions as of the date of this Agreement and, until any such amendments
have been agreed upon, the implicated requirements and covenants shall be calculated as if no such change in GAAP has occurred;
provided, that, for the avoidance of doubt, the parties agree that all financial statements required to be delivered hereunder
shall and will be delivered giving effect to any such change in GAAP.


 


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


 


“Goods” shall have the meaning
set forth in Article 9 of the UCC.


 






    29


     


    

“Governmental Authority”
shall mean any nation or government, any state, province, or other political subdivision thereof, any central bank (or similar
monetary or regulatory authority) thereof, and any entity exercising executive, legislative, judicial, regulatory or administrative
functions of government.


 


“Guarantors” shall mean,
collectively, the following (together with their respective successors and assigns): (a) Parent and (b) any other Subsidiary of
Parent that at any time after the date hereof becomes party to a Guaranty in favor of Agent for the benefit of the Secured Parties
or otherwise liable on or with respect to the Obligations (other than Borrowers) (each a “Subsidiary Guarantor”);
each sometimes being referred to herein individually as a “Guarantor”; provided, that, if at any time
after the date hereof, a Guarantor which is directly or indirectly wholly owned by Parent shall own any assets that would constitute
Eligible Inventory if owned by a Borrower, upon Administrative Borrower’s request, such Guarantor shall cease to be a Guarantor
hereunder and shall be deemed a Borrower effective on the date of the confirmation by Agent to Administrative Borrower that (i)
Agent has received such request and that Agent has received an appraisal with respect to such Inventory and conducted a field examination
with respect thereto, the results of which are satisfactory to Agent in good faith, or alternatively, at Agent’s option,
Agent shall have received such information with respect thereto as Agent may in its good faith require and (ii) Agent and each
Lender have received all information and documentation reasonably requested by the Agent and the Lenders for purposes of compliance
with applicable “know your customer” and anti-money laundering rules and regulations, including the USA PATRIOT Act
and the Beneficial Ownership Regulation with respect to such Guarantor.


 


“Guaranty” shall mean (a)
that certain Guaranty Agreement dated as of the Closing Date, by each of Loan Parties from time to time party thereto in favor
of Agent, Lenders and the other Secured Parties, and (b) any other guaranty agreement executed by a Subsidiary of Parent that at
any time after the date hereof becomes a Guarantor under this Agreement in favor of Agent, Lenders and the other Secured Parties,
in each case, as the same may be amended, restated or otherwise modified from time to time.


 


“Hazardous Materials” shall
mean any hazardous, toxic or dangerous substances, materials and wastes, including petroleum hydrocarbons, flammable explosives,
asbestos, urea formaldehyde insulation, radioactive materials, polychlorinated biphenyls, pesticides, herbicides and any other
kind and/or type of pollutants or contaminants, sewage, sludge, industrial slag, solvents and/or any other substances, materials
or wastes that are or become regulated under any Environmental Law (including any that are or become classified as hazardous or
toxic under any Environmental Law).


 


“Hedge Agreement” shall mean
an agreement between any Borrower or Guarantor and a third party (including without limitation a Bank Product Provider) that is
a rate swap agreement, basis swap, forward rate agreement, commodity swap, forward commodity contracts, equity or equity index
swaps or options, bond or bond price or bond index swaps or options, forward bond or forward bond price or forward bond index transactions,
interest rate options, forward foreign exchange agreement, spot foreign exchange agreement, rate cap agreement rate, floor agreement,
rate collar agreement, currency swap agreement, cross-currency rate swap agreement, currency option, any other similar agreement
or any combination of these transactions (including any agreement, contract or transaction that constitutes a “swap”
within the meaning of section 1a(47) of the Commodity Exchange Act and any option to enter into any of the foregoing or a master
agreement for any the foregoing together with all supplements thereto) for the purpose of protecting against or managing exposure
to fluctuations in interest or exchange rates, currency valuations or commodity prices); provided that no phantom stock
or similar plan providing for payments only on account of services provided by current or former directors, officers, employees
or consultants of the Borrowers or their Subsidiaries shall be a Hedge Agreement; sometimes being collectively referred to herein
as “Hedge Agreements”; provided further, however, the definition of Hedge Agreement shall not include
the Convertible Note Hedge and Warrant Transactions.


 






    30


     


    

“Hedge Obligations” of any
Borrower or Guarantor means any and all obligations of such Borrower or Guarantor, whether absolute or contingent and howsoever
and whensoever created, arising, evidenced or acquired (including all renewals, extensions and modifications thereof and substitutions
therefor), under (a) any and all Hedge Agreements, and (b) any and all cancellations, buy backs, reversals, terminations or assignments
of any Hedge Agreement transaction, in each case, solely under Hedge Agreements entered into with a Bank Product Provider and which
are deemed to be Obligations under clause (b)(i) of the definition of Obligations.


 


“Impacted Interest Period”
has the meaning assigned to such term in the definition of “LIBO Rate”.


 


“Increased Reporting Period”
shall mean any period commencing on the first date on which Excess Availability is less than the greater of (a) twenty percent
(20%) of the Borrowing Cap or (b) $20,000,000, in each case for three (3) consecutive days, and continuing until the date that
both (x) Excess Availability exceeds the greater of (i) twenty percent (20%) of the Borrowing Cap or (ii) $20,000,000 for sixty
(60) consecutive days, and (y) no Default or Event of Default then exists and is continuing.


 


“Indebtedness” shall mean,
with respect to any Person, any liability, whether or not contingent, (a) in respect of borrowed money (whether or not the recourse
of the lender is to the whole of the assets of such Person or only to a portion thereof) or evidenced by bonds, notes, debentures
or similar instruments; (b) representing the balance deferred and unpaid of the purchase price of any property or services (except
any such balance that constitutes an account payable to a trade creditor (whether or not an Affiliate) created, incurred, assumed
or guaranteed by such Person in the ordinary course of business of such Person; (c) all obligations as lessee under leases which
have been, or should be, in accordance with GAAP recorded as Capital Leases; (d) any contractual obligation, contingent or otherwise,
of such Person to pay or be liable for the payment of any indebtedness described in this definition of another Person, including,
any such indebtedness, directly or indirectly guaranteed, or any agreement to purchase, repurchase, or otherwise acquire such indebtedness,
obligation or liability or any security therefor, or to provide funds for the payment or discharge thereof, or to maintain solvency,
assets, level of income, or other financial condition; (e) all obligations with respect to redeemable stock and redemption or repurchase
obligations under any Capital Stock or other equity securities issued by such Person; (f) all reimbursement obligations and other
liabilities of such Person with respect to surety bonds (whether bid, performance or otherwise), letters of credit, banker’s
acceptances, drafts or similar documents or instruments issued for such Person’s account other than bonds to stay execution
of a judgment on appeal; (g) all indebtedness of such Person in respect of indebtedness of another Person for borrowed money or
indebtedness of another Person otherwise described in this definition which is secured by any consensual lien, security interest,
collateral assignment, conditional sale, mortgage, deed of trust, or other encumbrance on any asset of such Person, whether or
not such obligations, liabilities or indebtedness are assumed by or are a personal liability of such Person, all as of such time;
(h) all obligations, liabilities and indebtedness of such Person (marked to market) arising under swap agreements, cap agreements
and collar agreements and other agreements or arrangements designed to protect such Person against fluctuations in interest rates
or currency or commodity values or other Hedge Agreements; (i) indebtedness of any partnership or joint venture in which such Person
is a general partner or a joint venturer to the extent such Person is liable therefor as a result of such Person’s ownership
interest in such entity, except to the extent that the terms of such indebtedness expressly provide that such Person is not liable
therefor or such Person has no liability therefor as a matter of law, (j) all sales by such Person (except for sales without recourse
to such Person) of (i) Accounts or General Intangibles for money due or to become due, (ii) Chattel Paper, Instruments or documents
creating or evidencing a right to payment of money or (iii) other receivables whether pursuant to a purchase facility or otherwise,
other than in connection with the disposition of the business operations of such Person relating thereto or a disposition of defaulted
receivables for collection and not as a financing arrangement, and together with any obligation of such Person to pay any discount,
interest, fees, indemnities, penalties, recourse, expenses or other amounts in connection therewith, and (k) the principal and
interest portions of all rental obligations of such Person under any synthetic lease or similar off-balance sheet financing where
such transaction is considered to be indebtedness for borrowed money for tax purposes but is classified as an operating lease in
accordance with GAAP; provided, however, the definition of Indebtedness shall not include the obligations owed with respect to
the Convertible Note Hedge and Warrant Transactions.


 






    31


     


    

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


 


“Indemnitee” shall have the
meaning set forth in Section 11.6 hereof.


 


“Information Certificate”
shall mean the Information Certificate of Borrowers and Guarantor constituting Exhibit B hereto containing material information
with respect to Borrowers and Guarantors, their respective businesses and assets provided by or on behalf of Borrowers and Guarantors
to Agent in connection with the preparation of the Existing Credit Agreement and the other Financing Agreements and the financing
arrangements provided for herein, as amended, modified, replaced or supplemented by that certain Information Certificate delivered
by the Borrowers and Guarantors on the Closing Date.


 


“Instruments” shall have
the meaning set forth in Article 9 of the UCC.


 


“Intellectual Property” shall
mean, as to each Borrower and Guarantor, such Borrower’s and Guarantor’s now owned and hereafter arising or acquired:
patents, patent rights, patent applications (including all inventions and improvements described and claimed therein), copyrights,
works which are the subject matter of copyrights, copyright applications, copyright registrations, trademarks, servicemarks, trade
names, trade dress, trade styles, trademark and service mark applications, and licenses and rights to use any of the foregoing
and all applications, registrations and recordings relating to any of the foregoing as may be filed in the United States Copyright
Office, the United States Patent and Trademark Office or in any similar office or agency of the United States, any State thereof,
any political subdivision thereof or in any other country or jurisdiction, together with all rights and privileges arising under
applicable law with respect to any Borrower’s or Guarantor’s use of any of the foregoing; all extensions, renewals,
reissues, divisions, continuations, and continuations-in-part of any of the foregoing; and payments now or hereafter due or payable
with respect thereto, including, without limitation, damages, claims, and payments for past and future infringement thereof, all
rights to sue for past, present and future infringement of any of the foregoing; inventions, trade secrets, formulae, processes,
compounds, drawings, designs, blueprints, surveys, reports, manuals, and operating standards; goodwill (including any goodwill
associated with any trademark or servicemark, or the license of any trademark or servicemark); customer and other lists in whatever
form maintained; trade secret rights, copyright rights, rights in works of authorship, domain names and internet domain name registration;
software and contract rights relating to computer software programs, in whatever form created or maintained.


 






    32


     


    

“Intercreditor Agreement”
means that certain Intercreditor Agreement dated as of the Closing Date, by and between the Agent and the Term Loan Agent, and
acknowledged by the Borrowers and the Guarantors, as the same may be amended, restated, amended and restated, supplemented, replaced
or otherwise modified from time to time in accordance with the provisions hereof and thereof.


 


“Interest Election Request”
means a request by the Administrative Borrower to convert or continue a Borrowing in accordance with Section 2.12.


 


“Interest Expense” shall
mean, for any period, as to any Person, as determined on a consolidated basis in accordance with GAAP, the total interest expense
of such Person, whether paid or accrued during such period (including the interest component of Capital Leases for such period),
including, discounts in connection with the sale of any Accounts and bank fees, commissions, discounts and other fees and charges
owed with respect to letters of credit, banker’s acceptances or similar instruments, losses, fees, net costs and early termination
costs under Hedge Agreements, amortization or write-off of debt discounts and debt issuance costs and commissions, and other discounts
and other fees and charges associated with Indebtedness.


 


“Interest Payment Date” means
(a) with respect to any ABR Loan, the first Business Day of each calendar quarter and the Maturity Date, and (b) with respect
to any Eurodollar Rate Loan, the last day of each Interest Period applicable to the Borrowing of which such Loan is a part (and,
in the case of a Eurodollar Borrowing with an Interest Period of more than three months' duration, each day prior to the last day
of such Interest Period that occurs at intervals of three months' duration after the first day of such Interest Period) and the
Maturity Date.


 


“Interest Period” means,
with respect to any Eurodollar Borrowing, the period commencing on the date of such Eurodollar Borrowing and ending on the numerically
corresponding day in the calendar month that is one, two, three or six thereafter, as the Administrative Borrower may elect;
provided, that (a) if any Interest Period would end on a day other than a Business Day, such Interest Period shall be extended
to the next succeeding Business Day unless, such next succeeding Business Day would fall in the next calendar month, in which case
such Interest Period shall end on the next preceding Business Day and (b) any Interest Period that commences on the last Business
Day of a calendar month (or on a day for which there is no numerically corresponding day in the last calendar month of such Interest
Period) shall end on the last Business Day of the last calendar month of such Interest Period. For purposes hereof, the date of
a Borrowing initially shall be the date on which such Borrowing is made and thereafter shall be the effective date of the most
recent conversion or continuation of such Borrowing.


 






    33


     


    

“Interpolated Rate” means,
at any time, for any Interest Period, the rate per annum (rounded to the same number of decimal places as the LIBO Screen Rate)
determined by the Agent (which determination shall be conclusive and binding absent manifest error) to be equal to the rate that
results from interpolating on a linear basis between: (a) the LIBO Screen Rate for the longest period (for which the LIBO Screen
Rate is available) that is shorter than the Impacted Interest Period and (b) the LIBO Screen Rate for the shortest period (for
which the LIBO Screen Rate is available) that exceeds the Impacted Interest Period, in each case, at such time; provided,
that if any Interpolated Rate shall be less than zero, such rate shall be deemed to be zero for purposes of this Agreement.


 


“Inventory” shall have the
meaning set forth in Article 9 of the UCC and includes, without limitation, as to each Borrower and Guarantor, all of such
Borrower’s and Guarantor’s now owned and hereafter existing or acquired goods, wherever located, which (a) are leased
by such Borrower or Guarantor as lessor; (b) are held by such Borrower or Guarantor for sale or lease or to be furnished under
a contract of service; (c) are furnished by such Borrower or Guarantor under a contract of service; or (d) consist of raw materials,
work in process, finished goods or materials used or consumed in its business.


 


“Inventory Reserves” shall
mean the reserves described in clauses (i), (ii), (viii), (x), (xi) and (xii) of
the definition of “Reserves”.


 


“Investment Property” shall
have the meaning set forth in Article 9 of the UCC.


 


“Investment Property Control Agreement”
shall mean an agreement in writing, in form and substance reasonably satisfactory to Agent, by and among Agent (and the Term Loan
Agent, if a party), any Borrower or Guarantor (as the case may be) and any securities intermediary, commodity intermediary or other
Person who has custody, control or possession of any Investment Property of such Borrower or Guarantor acknowledging that such
securities intermediary, commodity intermediary or other Person has custody, control or possession of such Investment Property
on behalf of Agent (and the Term Loan Agent, if a party) that it will comply with entitlement orders originated by Agent (or Term
Loan Agent, as applicable) after the occurrence and during the continuance of an Event of Default with respect to such Investment
Property, or other instructions of Agent (or Term Loan Agent, as applicable), and has such other terms and conditions as Agent
may reasonably require.


 


“Issuing Bank” shall mean
Chase.


 


“Landlord Lien States” shall
mean the States of Washington and Virginia and the Commonwealth of Pennsylvania and such other states, provinces or jurisdictions
in which a landlord’s claim for rent (including a portion of rent) has or may have priority by operation of applicable law
over the lien of the Agent on behalf of the Secured Parties in any of the Collateral.


 






    34


     


    

“LC Disbursement” means any
payment made by an Issuing Bank pursuant to a Letter of Credit.


 


“Lenders” shall mean the
financial institutions who are signatories hereto as Lenders and other Persons made a party to this Agreement as a Lender in accordance
with Section 13.7 hereof, and their respective successors and assigns, including the Revolving Lenders; each sometimes
being referred to herein individually as a “Lender”.


 


“Letter of Credit Documents”
shall mean, with respect to any Letter of Credit, such Letter of Credit, any amendments thereto, any documents delivered in connection
therewith, any application therefor, and any agreements, instruments, guarantees or other documents (whether general in application
or applicable only to such Letter of Credit) governing or providing for (a) the rights and obligations of the parties concerned
or at risk or (b) any collateral security for such obligations.


 


“Letter of Credit Limit”
shall mean $10,000,000.


 


“Letter of Credit Obligations”
shall mean, at any time and without duplication, the sum of (a) the aggregate undrawn amount of all Letters of Credit outstanding
at such time, plus (b) the aggregate amount of all drawings under Letters of Credit for which Issuing Bank has not at such
time been reimbursed, plus (c) the aggregate amount of all payments made by each Revolving Lender to Issuing Bank with respect
to such Revolving Lender’s participation in Letters of Credit as provided in Section 2.3 for which Borrowers
have not at such time reimbursed the Revolving Lenders, whether by way of a Revolving Loan or otherwise.


 


“Letter-of-Credit Rights”
shall have the meaning set forth in Article 9 of the UCC.


 


“Letters of Credit” shall
mean all letters of credit (whether documentary or stand-by and whether for the purchase of Inventory, Equipment or otherwise)
issued by an Issuing Bank for the account of any Borrower pursuant to this Agreement or the Existing Credit Agreement, and all
amendments, renewals, extensions or replacements thereof.


 


“Leverage Ratio” shall mean,
for any date of determination, the ratio of: (a) Total Indebtedness as of such date to (b) EBITDA for the most recently completed
Test Period, all calculated for any Person on a consolidated basis in accordance with GAAP.


 


“LIBO Rate” means, with respect
to any Eurodollar Borrowing for any applicable Interest Period or for any ABR Borrowing, LIBO Screen Rate at approximately 11:00
a.m., London time, two (2) Business Days prior to the commencement of such Interest Period; provided that, if the LIBO Screen
Rate shall not be available at such time for such Interest Period (an “Impacted Interest Period”), then the
LIBO Rate shall be the Interpolated Rate, subject to Section 3.4 in the event that the Agent shall conclude that it shall
not be possible to determine such Interpolated Rate (which conclusion shall be conclusive and binding absent manifest error). Notwithstanding
the above, to the extent that “LIBO Rate” or “Adjusted LIBO Rate” is used in connection with an ABR Borrowing,
such rate shall be determined as modified by the definition of Alternate Base Rate.


 


“LIBO Screen Rate” means,
for any day and time, with respect to any Eurodollar Borrowing for any Interest Period or for any ABR Borrowing, the London interbank
offered rate as administered by ICE Benchmark Administration (or any other Person that takes over the administration of such rate
for dollars) for a period equal in length to such Interest Period as displayed on such day and time on pages LIBOR01 or LIBOR02
of the Reuters screen that displays such rate (or, in the event such rate does not appear on a Reuters page or screen, on any successor
or substitute page on such screen that displays such rate, or on the appropriate page of such other information service that publishes
such rate from time to time as selected by the Agent in its reasonable discretion); provided that if the LIBO Screen Rate as so
determined would be less than zero, such rate shall be deemed to zero for the purposes of this Agreement.


 






    35


     


    

“License Agreements” shall
have the meaning set forth in Section 8.11 hereof.


 


“Lien” and “lien”
mean, with respect to any asset, (a) any mortgage, deed of trust, lien, pledge, hypothecation, encumbrance, charge or security
interest in, on or of such asset, (b) the interest of a vendor or a lessor under any conditional sale agreement, capital lease
or title retention agreement (or any financing lease having substantially the same economic effect as any of the foregoing) relating
to such asset and (c) in the case of securities, any purchase option, call or similar right of a third party with respect
to such securities.


 


“Liquidity” means, at any
time, the sum of (a) the aggregate amount of cash of the Loan Parties contained in any deposit account for which such Person has
delivered to the Agent an account control agreement or other documentation reasonably required by the Agent, each in form and substance
reasonably satisfactory to the Agent, pursuant to which (i) the Agent has been granted a lien on and first-priority security
interest in such account and all cash held from time to time therein and (ii) the Agent has been granted control over the
amounts held from time to time therein and (b) any Excess Availability.


 


“Loan Parties” means, collectively,
the Borrowers and the Guarantors and their respective successors and assigns, and the term “Loan Party” shall mean
any one of them or all of them individually, as the context may require.


 


“Loans” shall mean, collectively,
all of the Revolving Loans and “Loan” shall mean any one of the Revolving Loans.


 


“Manual Sweeping Accounts”
shall mean the Deposit Accounts maintained by the Borrowers as of the Closing Date that are identified as “Manual Sweeping
Accounts” on Schedule 8.10 hereto, and any replacement or additional accounts of the Borrowers.


 


“Material Adverse Effect”
shall mean a material adverse effect on (a) the financial condition, business, performance or operations of Borrowers taken as
a whole or of Borrowers and the Guarantors taken as a whole; (b) the legality, validity or enforceability of this Agreement, any
Collateral Document, the Intercreditor Agreement or any of the other material Financing Agreements; (c) the legality, validity,
enforceability, perfection or priority of the security interests and liens of Agent upon the Collateral; (d) the Collateral (taken
as a whole) or its value; (e) the ability of Borrowers (taken as a whole) to repay the Obligations or of Borrowers (taken as a
whole) to perform their obligations under this Agreement or any of the other Financing Agreements as and when to be performed;
or (f) the ability of Agent or any Lender to enforce the Obligations or realize upon the Collateral or otherwise with respect to
the material rights and remedies of Agent and Lenders under this Agreement or any of the other Financing Agreements.


 






    36


     


    

“Material Contract” shall
mean the Term Loan Agreement and any other contract or other agreement (other than the Financing Agreements and the Credit Card
Agreements), whether written or oral, to which any Borrower or Guarantor is a party as to which the breach, nonperformance, cancellation
or failure to renew by any party thereto (unless a replacement Material Contract has been entered into either prior to or contemporaneously
with the date of such termination or cancellation) would have a Material Adverse Effect.


 


“Maturity Date” shall mean
the earliest of (a) the third anniversary of the Closing Date, (b) the date that is ninety-one (91) days prior to the maturity
date of any Indebtedness of any Borrower or Guarantor with an aggregate outstanding principal amount in excess of $5,000,000, excluding
the Term Loan Obligations; provided that this clause (b) shall not apply to the Convertible Notes, if the Borrowers place
the cash proceeds of a substantially concurrent equity contribution received from the holders of Parent’s Capital Stock in
an amount equal to the Convertible Notes Repurchase Amount into a Convertible Notes Escrow on or before January 31, 2020 and the
Convertible Notes Repurchase Amount remains in such Convertible Notes Escrow until such Convertible Notes Repurchase Amount is
used to repurchase, redeem, retire, satisfy and/or defease all then outstanding Convertible Notes in full (for avoidance of doubt,
such repurchases, redemptions, retirements, satisfactions and/or defeasances need not all occur on the same date, so long as sufficient
cash to meet the Convertible Notes Repurchase Amount as of any date remains in the Convertible Notes Escrow on such date) and (c)
any date on which the Revolving Commitments are reduced to zero or otherwise terminated pursuant to the terms hereof.


 


“Multiemployer Plan” shall
mean a “multi-employer plan” as defined in Section 4001(a)(3) of ERISA which is contributed to by any Borrower,
Guarantor or any ERISA Affiliate or with respect to which any Borrower, Guarantor or any ERISA Affiliate may reasonably be expected
to incur any liability.


 


“Net Income” shall mean,
with respect to any specified Person, the net income (loss) of such Person, determined in accordance with GAAP and before any reduction
in respect of preferred stock dividends, excluding, however;


 


(a)              
any gain or loss, together with any related provision for taxes on such gain or loss, realized in connection with
(i) any Asset Sale; (ii) the disposition of any Securities by such Person or any of its Subsidiaries or the extinguishment of any
Indebtedness of such Person or any of its Subsidiaries; and


 


(b)              
any extraordinary gain or loss, together with any related provision for taxes on such extraordinary gain or loss.


 


“Net Proceeds” means, with
respect to any Prepayment Event, (a) the cash proceeds received in respect of such event or transaction (including (i) any cash
received in respect of any non-cash proceeds (including, without limitation, the monetization of notes receivables), but only as
and when received and (ii) in the case of any insurance proceeds, proceeds of a condemnation award or other compensation payments),
net of (b) the sum of all bona fide direct costs, fees and out-of-pocket expenses (including, without limitation, (A) appraisals,
(B) brokerage, legal, advisory, banking, title and recording tax expenses and commissions, (C) income or gains taxes payable by
a Loan Party as a result of any gain recognized in connection with any applicable Asset Sale during the tax period in which the
sale occurs, (D) payment of the outstanding principal amount of, premium or penalty on, and interest on, any Indebtedness (other
than the Indebtedness under the Financing Agreements (as defined in each of this Agreement and the Term Loan Agreement) that is
permitted hereunder, is secured by a lien on the stock or assets in question and is required to be repaid under the terms thereof
as a result of any applicable Asset Sale, (E) [reserved] and (F) a reasonable reserve for any indemnification payments (fixed or
contingent) attributable to seller’s indemnities and representations and warranties to purchaser in respect of any applicable
Asset Sale undertaken by any Loan Party in connection with such Asset Sale (provided that upon release of any such reserve,
the amount released shall be considered Net Proceeds)) paid by any Borrower or Guarantor to third parties (other than Affiliates)
in connection with such event.


 






    37


     


    

“Net Recovery Percentage”
shall mean with respect to finished goods Inventory or raw materials Inventory, as applicable, the fraction, expressed as a percentage,
(a) the numerator of which is the amount equal to the amount of the recovery in respect of the applicable Inventory at such time
on a “net orderly liquidation value” basis as set forth in the most recent acceptable appraisal of such Inventory received
by Agent in accordance with Section 7.3, net of operating expenses, liquidation expenses and commissions, and (b) the
denominator of which is the applicable original cost of the aggregate amount of such Inventory subject to such appraisal.


 


“NYFRB” means the Federal
Reserve Bank of New York.


 


“NYFRB Rate” means, for any
day, the greater of (a) the Federal Funds Effective Rate in effect on such day and (b) the Overnight Bank Funding Rate in effect
on such day (or for any day that is not a Business Day, for the immediately preceding Business Day); provided that if none
of such rates are published for any day that is a Business Day, the term “NYFRB Rate” means the rate for a federal
funds transaction quoted at 11:00 a.m. on such day received by the Agent from a federal funds broker of recognized standing selected
by it; provided, further, that if any of the aforesaid rates as so determined would be less than zero, such rate
shall be deemed to be zero for purposes of this Agreement.


 


“Obligations” shall mean


 


(a)              
any and all Loans, Letter of Credit Obligations and all other obligations, liabilities and indebtedness of every
kind, nature and description owing by any or all of Borrowers and Guarantors to Agent or any Lender, including principal, interest,
charges, fees, costs and expenses, however evidenced, whether as principal, surety, endorser, guarantor or otherwise, arising under
this Agreement or any of the other Financing Agreements, whether now existing or hereafter arising, whether arising before, during
or after the initial or any renewal term of this Agreement or after the commencement of any case with respect to such Borrower
or Guarantor under the United States Bankruptcy Code, the Bankruptcy and Insolvency Act (Canada), the Companies’ Creditors
Arrangement Act (Canada) or any similar statute (including the payment of interest and other amounts which would accrue and become
due but for the commencement of such case, whether or not such amounts are allowed or allowable in whole or in part in such case),
whether direct or indirect, absolute or contingent, joint or several, due or not due, primary or secondary, liquidated or unliquidated,
or secured or unsecured; and


 






    38


     


    

(b)              
for purposes only of Section 5.1 hereof and subject to the priority in right of payment set forth in
Section 6.4 hereof, upon Administrative Borrower’s request (which request may be evidenced by its signature on
the agreement referred to in clause (i) below) and with the prior consent of Agent, all obligations, liabilities and
indebtedness of every kind, nature and description owing by any or all of Borrowers or Guarantors to Agent or any Bank Product
Provider arising under or pursuant to any Bank Products or to Bank of America, N.A. arising under the E-Payables Agreement, in
each case whether now existing or hereafter arising to the extent such obligations, liabilities and indebtedness would not cause
the total amount of the Obligations to exceed the value of the Collateral, provided, that,


 


(i)                
as to any such obligations, liabilities and indebtedness arising under or pursuant to a Hedge Agreement with a Bank
Product Provider, the same shall only be included within the Obligations if upon Agent’s and Administrative Borrower’s
request, Agent shall have entered into an agreement, in form and substance reasonably satisfactory to Agent (provided that
any such agreement between a Borrower and Chase and/or its Affiliates shall be deemed to be acceptable and obligations, liabilities
and indebtedness thereunder shall automatically be included within the Obligations), with the Bank Product Provider that is a counterparty
to such Hedge Agreement, as acknowledged and agreed to by Borrowers and Guarantors, providing for the delivery to Agent by such
counterparty of information with respect to the amount of such obligations and providing for the other rights of Agent and such
Bank Product Provider in connection with such arrangements; provided that solely with respect to any Borrower or Guarantor
that is not an ECP, Excluded Hedge Obligations of any such Borrower or Guarantor shall in any event be excluded from “Obligations”
owing by such Borrower or Guarantor,


 


(ii)             
as to any such obligations, liabilities and indebtedness arising under or pursuant to the E-Payables Agreement, such
obligations, liabilities and indebtedness owing to Bank of America, N.A. thereunder shall constitute Obligations entitled to the
benefits of the security interest of Agent granted hereunder, provided, that (A) such obligations, liabilities and indebtedness
considered Obligations hereunder shall not exceed $20,000,000 in the aggregate at any time outstanding, (B) Administrative Borrower
shall instruct and cause Bank of America, N.A. to deliver to Agent, monthly, a summary of the amount of the obligations, liabilities
and indebtedness owing to Bank of America, N.A. under and pursuant to the E-Payables Agreement as Agent may reasonably request,
(C) Agent may, at its option, establish a Reserve with respect to the amount of the reported obligations, liabilities and indebtedness
owing to Bank of America, N.A. under and pursuant to the E-Payables Agreement and (D) Bank of America, N.A. shall not have any
voting rights under this Agreement or any other Financing Agreement as a result of the existence of Obligations owing to it under
and pursuant to the E-Payables Agreement,


 


(iii)           
Administrative Borrower and any Bank Product Provider (other than Chase and its Affiliates), shall have delivered
written notice to Agent that (A) such Bank Product Provider has entered into a transaction to provide Bank Products to a Borrower
and Guarantor and (B) the obligations arising pursuant to such Bank Products provided to Borrowers and Guarantors constitute Obligations
entitled to the benefits of the security interest of Agent granted hereunder, and Agent shall have accepted such notice in writing,
and


 


(iv)            
in no event shall any Bank Product Provider to whom such obligations, liabilities or indebtedness are owing be deemed
a Lender for purposes hereof to the extent of and as to such obligations, liabilities or indebtedness other than for purposes of
Section 5.1 hereof and other than for purposes of Sections 12.1, 12.2, 12.3(b), 12.6,
12.7, 12.9, 12.12 and 13.6 hereof and in no event shall such obligations be included in the Obligations
to the extent that the effect is that the value of the Collateral (as determined by Agent) is less than the amount of the Obligations
and in no event shall the approval of any such Person be required in connection with the release or termination of any security
interest or lien of Agent.


 






    39


     


    

“Original Parent” shall have
the meaning assigned to such term in the recitals to this Agreement.


 


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


 


“Other Taxes” means all present
or future stamp, court or documentary, intangible, recording, filing or similar Taxes that arise from any payment made under, from
the execution, delivery, performance, enforcement or registration of, from the receipt or perfection of a security interest under,
or otherwise with respect to, any Financing Agreement, except any such Taxes that are Other Connection Taxes imposed with respect
to an assignment (other than an assignment made pursuant to Section 3.6(b)).


 


“Overnight Bank Funding Rate”
means, for any day, the rate comprised of both overnight federal funds and overnight Eurodollar borrowings by U.S.-managed banking
offices of depository institutions (as such composite rate shall be determined by the NYFRB as set forth on its public website
from time to time) and published on the next succeeding Business Day by the NYFRB as an overnight
bank funding rate.


 


“Paid in Full” or “Payment
in Full” means, (a) the payment in full in cash of all outstanding Loans and LC Disbursements, together with accrued
and unpaid interest thereon, (b) the termination, expiration, or cancellation and return of all outstanding Letters of Credit (or
alternatively, with respect to each such Letter of Credit, the furnishing to the Agent of a cash deposit, or at the discretion
of the Agent a backup standby letter of credit satisfactory to the Agent and the Issuing Bank, in an amount equal to 105% of the
Letter of Credit Obligations as of the date of such payment), (c) the payment in full in cash of the accrued and unpaid fees, (d)
the payment in full in cash of all reimbursable expenses and other Obligations (other than Unliquidated Obligations for which no
claim has been made and other obligations expressly stated to survive such payment and termination of this Agreement), together
with accrued and unpaid interest thereon, (e) the termination of all Revolving Commitments, and (f) the termination of the Hedge
Obligations and the Bank Products or entering into other arrangements satisfactory to the Secured Parties counterparties thereto.


 


“Parent” shall mean Valor
Acquisition, LLC, a Delaware limited liability company (successor by merger to Vitamin Shoppe, Inc., a Delaware corporation), and
its successors and assigns.


 






    40


     


    

“Participant” shall mean
any Person that acquires and holds a participation in the interest of any Lender in any of the Loans and Letters of Credit in conformity
with the provisions of Section 13.7 of this Agreement governing participations.


 


“Participant Register” has
the meaning assigned to such term in Section 13.7(e).


 


“Permitted Acquisitions”
shall mean the purchase by a Borrower or Guarantor after the date hereof of all or a substantial portion of all of the assets of
any Person or a business or division of such Person (including pursuant to a merger with such Person or the formation of a wholly
owned Subsidiary solely for such purpose that is merged with such Person) or of all or a majority of the Capital Stock (such assets
or Person being referred to herein as the “Acquired Business”) and in one or a series of transactions that satisfies
each of the following conditions as reasonably determined by Agent:


 


(a)              
Agent shall have received not less than five (5) Business Days’ prior written notice of the proposed acquisition
and such information with respect thereto as Agent may request, in each case with such information to include (i) the proposed
date and amount of the acquisition, (ii) the total purchase price for the assets to be purchased (and the terms of payment of such
purchase price), and (iii) with respect to the purchase of an Acquired Business, the aggregate consideration to be paid in respect
of which exceeds $1,000,000 (each such acquisition being a “Material Permitted Acquisition”), (A) a summary
of the due diligence undertaken by Borrowers in connection with such acquisition (including a quality of earnings report, if one
has been commissioned) and (B) a description of the assets or shares to be acquired,


 


(b)              
With respect to a Material Permitted Acquisition, Agent shall have received: (i) the most recent annual and interim
financial statements with respect to the Acquired Business, (ii) projections for Parent and its Subsidiaries through the Maturity
Date, on a monthly basis for the first year after the acquisition and on an annual basis thereafter, giving pro forma effect to
such acquisition, based on assumptions reasonably satisfactory to Agent and demonstrating pro forma compliance with all financial
covenants set forth in this Agreement, prepared in good faith an in a manner and using such methodology as is consistent with the
most recent financial statements delivered to Agent pursuant to Section 9.6 hereof and in form and substance reasonably
satisfactory to Agent, and (iii) current, updated projections of the amount of the Borrowing Base and Excess Availability for the
twelve (12) month period after the date of such acquisition, in a form reasonably satisfactory to Agent, representing Borrowers’
reasonable best estimate of the future Borrowing Base and Excess Availability for the period set forth therein as of the date not
more than ten (10) days prior to the date of such acquisition, which projections shall have been prepared on the basis of the assumptions
set forth therein which Borrowers believe are fair and reasonable as of the date of preparation in light of current and reasonably
foreseeable business conditions,


 


(c)              
if EBITDA of the Acquired Business for the most recently ended twelve (12) month period for which financial information
is available is negative, then Administrative Borrower shall have provided Agent with projections, in form and substance reasonably
satisfactory to Agent, showing Excess Availability for each month of the twelve (12) month period after the date of such acquisition
of at least $10,000,000,


 






    41


     


    

(d)              
Agent shall have received true, correct and complete copies of all agreements, documents and instruments relating
to such acquisition, which documents, in the case of a Material Permitted Acquisition, shall be reasonably satisfactory to Agent,


 


(e)              
Agent shall have received a certificate of the chief financial officer or chief executive officer of Administrative
Borrower on behalf of Administrative Borrower (or if no such officer has been appointed or elected, the sole member of Administrative
Borrower) certifying to Agent and Lenders as to the matters set forth in this definition,


 


(f)               
Accounts, Credit Card Receivables and Inventory of the Acquired Business shall only be Eligible Accounts, Eligible
Credit Card Receivables, and Eligible Inventory to the extent that (i) such Accounts, Credit Card Receivables and Inventory are
owned by a Borrower, (ii) Agent has conducted and completed a field examination and appraisal with respect thereto and (iii) the
criteria for Eligible Accounts, Eligible Credit Card Receivables, and Eligible Inventory set forth herein are satisfied with respect
thereto in accordance with this Agreement (or such other or additional criteria as Agent may, at its option, establish with respect
thereto in accordance with this Agreement and subject to such Reserves as Agent may establish in connection with the Acquired Business),


 


(g)              
the Acquired Business, if a Person, shall be an operating company that engages in a Permitted Business,


 


(h)              
[Reserved.],


 


(i)                
Agent shall have received all items required by Sections 5.2 and 9.23 in connection with the Acquired
Business to the extent required under such Sections,


 


(j)                
in the case of the acquisition of the Capital Stock of another Person, the board of directors (or other comparable
governing body) of such other Person shall have duly approved such acquisition and such Person shall not have announced that it
will oppose such acquisition or shall not have commenced any action which alleges that such acquisition will violate applicable
law,


 


(k)              
(i) Excess Availability shall have been not less than the greater of (x) fifteen percent (15%) of the Borrowing Cap
and (y) $15,000,000 for the thirty (30) day period ending on the date of consummation of such acquisition, and (ii) the Borrowers
shall have projected Excess Availability of not less than the greater of (x) fifteen percent (15%) of the Borrowing Cap and (y)
$15,000,000 immediately after giving effect to such acquisition and any payments made in respect of such acquisition and for the
succeeding thirty (30) day period thereafter on a pro forma basis using the most recent calculation of the Borrowing Base immediately
prior to such acquisition or payment, and


 


(l)                
no Event of Default shall exist or have occurred as of the date of the acquisition both prior to and after giving
effect to such acquisition and any payment(s) made in respect of such acquisition.


 


“Permitted Business” shall
mean any business engaged in by any of the Borrowers on the date hereof, and any business or other activities that are reasonably
similar, ancillary, complementary or related to, or a reasonable extension, development or expansion of, the businesses in which
the Borrowers are engaged as of the Closing Date.


 






    42


     


    

“Permitted Discretion” shall
mean a determination made in good faith and in the exercise of reasonable (from the perspective of a secured asset-based lender)
business judgment.


 


“Permitted Distribution”
shall mean any payment made in cash in accordance with Section 9.11.


 


“Permitted Encumbrances”
shall mean, collectively, the encumbrances permitted under Section 9.8(b), Section 9.8(c), Section 9.8(d),
Section 9.8(f), Section 9.8(h) and Section 9.8(k); provided that the term “Permitted
Encumbrances” shall not include any lien securing Indebtedness, except with respect to Section 9.8(k).


 


“Permitted Holders” shall
mean (a) Vintage (and its controlled investment funds) and (b) Vintage’s controlling persons who are Brian Kahn and Andrew
Laurence (together with their controlled family trusts and personal investment vehicles).


 


“Permitted Subordinated Indebtedness”
means unsecured Indebtedness of Borrowers; provided, that (a) such Indebtedness does not mature or require any scheduled
payments of principal prior to one hundred eighty (180) days after the Maturity Date in effect on the date of issuance, (b) such
Indebtedness bears no greater than a market interest rate as of the time of its issuance or incurrence (as determined in good faith
by Borrowers), (c) no indenture or other agreement governing such Indebtedness contains (i) maintenance financial covenants or
(ii) covenants or events of default that are more restrictive on Borrowers or any of its subsidiaries than those contained in this
Agreement, (d) after giving effect to the issuance or incurrence of such Indebtedness on a pro forma basis, Borrowers shall be
in compliance with all covenants set forth in this Agreement, (e) the payment of such Indebtedness is subordinated to the Obligations
to the written satisfaction of Agent (as determined in its sole discretion) and (f) there is no scheduled amortization with respect
to such Indebtedness.


 


“Permitted Tax Distributions”
means, for any taxable period or portion thereof in which Parent is a pass through entity (including a disregarded entity or partnership)
for U.S. federal income tax purposes, distributions to the direct or indirect holders of the equity interests of Parent on or prior
to each estimated payment date as well as each other applicable due date to enable such holders to timely make payments of U.S.
federal, state and local income taxes for such taxable period arising solely as a result of the operations of Parent and its Subsidiaries
not to exceed the product of (a) the taxable income (which shall mean the taxable income required to be reported to Parent’s
direct or indirect holders for U.S. federal income tax purposes) attributable to Parent and its Subsidiaries for such period, calculated
(i) with taking into account loss carryforwards of such holders available from losses of such holders attributable to Parent and
its Subsidiaries for prior taxable periods, and (ii) without taking into account any basis step-up after the date hereof (including
under Sections 1012, 732, 734(b), 743(b) or 754 of the Code or similar provisions of state and local law), and (b) 28%.


 






    43


     


    

“Person” or “person”
shall mean any individual, sole proprietorship, partnership, corporation (including any corporation which elects subchapter S
status under the Code), limited liability company, limited liability partnership, business trust, unincorporated association, joint
stock corporation, trust, joint venture or other entity or any government or any agency or instrumentality or political subdivision
thereof.


 


“Plan” shall mean an employee
pension benefit plan (as defined in Section 3(2) of ERISA) which Borrower or any Guarantor or, solely with respect to an employee
benefit plan subject to Title IV of ERISA, an ERISA Affiliate sponsors or to which it contributes, or a Multiemployer Plan.


 


“Pledge Agreement” shall
mean that certain Second Amended and Restated Stock Pledge Agreement dated as of the Closing Date, by and among the Loan Parties
and Agent, as the same may be amended, restated or otherwise modified from time to time.


 


“Post-Closing Equity Contribution”
shall have the meaning set forth in Section 9.29 hereof.


 


“Post-Closing Equity Contribution Deadline”
shall have the meaning set forth in Section 9.29 hereof.


 


“PPSA” shall mean the Personal
Property Security Act as in effect in the Province of Ontario, the Civil Code of Quebec as in effect in the Province of Quebec
or any other Canadian Federal or Provincial statute pertaining to the granting, perfecting, priority or ranking of security interests,
liens, hypothecs on personal property, and any successor statutes, together with any regulations thereunder, in each case as in
effect from time to time. References to sections of the PPSA shall be construed to also refer to any successor sections.


 


“Prepayment Event” means:


 


(a)              
any Borrower or Guarantor shall undertake an Asset Sale which results in Net Proceeds in excess of $250,000 in the aggregate
in any fiscal year;


 


(b)              
any Borrower or Guarantor shall issue or incur Indebtedness (other than any Indebtedness permitted by Section 9.9);


 


(c)              
any Borrower or Guarantor shall issue any Capital Stock (other than any issuances of Capital Stock permitted by Section
9.7); or


 


(d)              
any Borrower or Guarantor shall suffer Events of Loss in excess of $250,000 in the aggregate in any fiscal year.


 


“Prime Rate” shall mean the
rate of interest last quoted by The Wall Street Journal as the “Prime Rate” in the U.S. or, if The Wall Street Journal
ceases to quote such rate, the highest per annum interest rate published by the Federal Reserve Board in Federal Reserve Statistical
Release H.15 (519) (Selected Interest Rates) as the “bank prime loan” rate or, if such rate is no longer quoted therein,
any similar rate quoted therein (as determined by the Agent) or any similar release by the Federal Reserve Board (as determined
by the Agent). Each change in the Prime Rate shall be effective from and including the date such change is publicly announced or
quoted as being effective.


 






    44


     


    

“pro forma basis” means,
with respect to compliance with any test hereunder for an applicable period of measurement, that all Specified Transactions and
the following transactions in connection therewith that have been made during the applicable period of measurement or subsequent
to such period and prior to or simultaneously with the event for which the calculation is made shall be deemed to have occurred
as of the first day of the applicable measurement period with respect to such covenant or condition: (a) income statement items
(whether positive or negative) attributable to the property or Person subject to such Specified Transaction, (i) in the case of
a sale, transfer or other disposition of all or substantially all Capital Stock in the Parent or any of its Subsidiaries or any
division or product line of the Parent or any of its Subsidiaries, shall be excluded, and (ii) in the case of an Investment described
in the definition of the term “Specified Transaction”, shall be included, (b) any retirement of Indebtedness and (c)
any Indebtedness incurred or assumed by the Parent or any of its Subsidiaries in connection with such Specified Transaction, and
assuming all Indebtedness so incurred or assumed to be outstanding shall be deemed to have borne interest (i) in the case of fixed
rate Indebtedness, at the rate applicable thereto or (ii) in the case of floating rate Indebtedness, at the rates which were or
would have been applicable thereto during the period when such Indebtedness was or was deemed to be outstanding.


 


“Promotional Agreements”
shall mean all manufacturer ingredient promotional agreements between any Borrower or Guarantor and any product supplier or a contract
manufacturer pursuant to which, among other things, such Borrower or Guarantor agrees to promote certain ingredients contained
in the products manufactured by such supplier and/or contract manufacturer or the packaging for such products contains certain
Intellectual Property of such supplier or contract manufacturer, and such Borrower or Guarantor is granted an express or implicit
non-exclusive, royalty-free license to use certain Intellectual Property of such supplier or contract manufacturer, as the same
may be amended, modified, supplemented, extended, renewed, restated or replaced.


 


“Pro Rata Share” shall mean
as to any Lender, the fraction (expressed as a percentage) the numerator of which is such Revolving Lender’s Revolving Commitment
and the denominator of which is the aggregate amount of the Revolving Commitments of all Revolving Lenders, as adjusted from time
to time in accordance with the provisions of Section 13.7 hereof; provided, that, if the Revolving Commitments
have terminated, the numerator shall be the unpaid amount of such Revolving Lender’s Revolving Exposure and the denominator
shall be the aggregate amount of Revolving Exposure of all Revolving Lenders.


 


“Push Down Reserve” means,
a reserve implemented by the Agent within three (3) Business Days after written notice is received from the Term Loan Agent (such
written notice, the “Push Down Reserve Notice”) in accordance with the Term Loan Agreement and the Intercreditor
Agreement in an amount equal to the Push Down Reserve Amount, which such notice specifies the amount, if any, that the aggregate
Term Loan Outstandings exceed the Term Loan Borrowing Base (or, Term Loan Borrowing Base II if applicable under the Term Loan Agreement
at the time) in each case, as reflected in the Term Loan Borrowing Base Certificate most recently delivered by the Administrative
Borrower to the Term Loan Agent; provided that (a) the Push Down Reserve will only be implemented up to the Push Down Reserve Amount
at such time and (b) in accordance with the Intercreditor Agreement, such Push Down Reserve may be terminated and/or adjusted from
time to time based on additional Push Down Reserve Notices or monthly reporting certificates delivered by the Term Loan Agent to
the Agent specifying that the aggregate Term Loan Outstandings no longer exceed the Term Loan Borrowing Base (or, Term Loan Borrowing
Base II if applicable under the Term Loan Agreement at the time) then in effect.


 






    45


     


    

“Push Down Reserve Amount”
means the lesser of (a) the amount, if any, that the aggregate Term Loan Outstandings exceed the Term Loan Borrowing Base (or,
Term Loan Borrowing Base II if applicable under the Term Loan Agreement at the time) in each case, as reflected in the Term Loan
Borrowing Base Certificate most recently delivered by the Administrative Borrower to the Term Loan Agent or (b) the amount of Excess
Availability at such time.


 


“Push Down Reserve Notice”
has the meaning assigned to such term in the definition of “Push Down Reserve”.


 


“QFC” has the meaning assigned
to the term “qualified financial contract” in, and shall be interpreted in accordance with, 12 U.S.C. 5390(c)(8)(D).


 


“QFC Credit Support” has
the meaning assigned to it in Section 13.12.


 


“Qualified ECP Guarantor”
shall mean, in respect of any Hedge Obligation, each Borrower or Guarantor that has total assets exceeding $10,000,000 at the time
the relevant guarantee or grant of the relevant security interest becomes effective with respect to such Hedge Obligation or such
other person as constitutes an “eligible contract participant” under the Commodity Exchange Act or any regulations
promulgated thereunder and can cause another person to qualify as an “eligible contract participant” at such time by
entering into a keepwell under Section 1a(18)(A)(v)(II) of the Commodity Exchange Act.


 


“Real Property” shall mean
all now owned and hereafter acquired real property of each Borrower and Guarantor, including leasehold interests, together with
all buildings, structures, and other improvements located thereon and all licenses, easements and appurtenances relating thereto,
wherever located.


 


“Receivables” shall mean
all of the following now owned or hereafter arising or acquired property of each Borrower and Guarantor: (a) all Accounts; (b)
all interest, fees, late charges, penalties, collection fees and other amounts due or to become due or otherwise payable in connection
with any Account; (c) all payment intangibles of such Borrower or Guarantor; (d) letters of credit, indemnities, guarantees, security
or other deposits and proceeds thereof issued payable to any Borrower or Guarantor or otherwise in favor of or delivered to any
Borrower or Guarantor in connection with any Account; or (e) all other Accounts, contract rights, Chattel Paper, Documents, Instruments,
notes, General Intangibles and other forms of obligations owing to any Borrower or Guarantor, whether from the sale and lease of
goods or other property, licensing of any property (including Intellectual Property or other General Intangibles), franchising,
rendition of services or from loans or advances by any Borrower or Guarantor or to or for the benefit of any third Person (including
loans or advances to any Affiliates or Subsidiaries of any Borrower or Guarantor) or otherwise associated with any Accounts, Inventory
or General Intangibles of any Borrower or Guarantor (including choices in action, causes of action, tax refunds, tax refund claims,
any funds which may become payable to any Borrower or Guarantor in connection with the termination of any Plan or other employee
benefit plan and any other amounts payable to any Borrower or Guarantor from any Plan or other employee benefit plan, rights and
claims against carriers and shippers, rights to indemnification, business interruption insurance and proceeds thereof, casualty
or any similar types of insurance and any proceeds thereof and proceeds of insurance covering the lives of employees on which any
Borrower or Guarantor is a beneficiary).


 






    46


     


    

“Recipient” means, as applicable,
(a) the Agent, (b) any Lender and (c) the Issuing Bank, or any combination thereof (as the context requires).


 


“Records” shall mean, as
to each Borrower and Guarantor, all of such Borrower’s and Guarantor’s present and future books of account of every
kind or nature, purchase and sale agreements, invoices, ledger cards, bills of lading and other shipping evidence, statements,
correspondence, memoranda, credit files and other data relating to the Collateral or any Account Debtor, together with the tapes,
disks, diskettes and other data and software storage media and devices, file cabinets or containers in or on which the foregoing
are stored (including any rights of any Borrower or Guarantor with respect to the foregoing maintained with or by any other Person).


 


“Refinanced Indebtedness”
shall have the meaning set forth in Section 9.9(p) hereof.


 


“Register” shall have the
meaning set forth in Section 13.7 hereof.


 


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


 


“Required Conditions” shall
mean, with respect to any Specified Transaction, either (a) Excess Availability exceeds fifteen percent (15%) of the Borrowing
Cap and the Fixed Charge Coverage Ratio is equal to or greater than 1.10 to 1.0, in each case, calculated as of the date of such
Specified Transaction both prior to and after giving effect to such Specified Transaction, on a pro forma basis using the most
recent calculation of the Borrowing Base immediately prior to such Specified Transaction; provided that the pro forma Fixed
Charge Coverage Ratio shall be calculated as of the last Test Period prior to the date of such Specified Transaction for which
financial statements for the fiscal month, fiscal quarter or fiscal year then ended have been (or have been required to be) delivered
pursuant to Section 9.6(a)(i) and Section 9.6(a)(ii), as applicable, or (b) Excess Availability exceeds
the greater of (x) twenty percent (20%) of the Borrowing Cap and (y) $20,000,000 calculated as of the date of such Specified Transaction
both prior to and after giving effect to such Specified Transaction, on a pro forma basis using the most recent calculation of
the Borrowing Base immediately prior to such Specified Transaction.


 


“Required Lenders” shall
mean, at any time, those Lenders whose Pro Rata Shares aggregate fifty percent (50%) or more of the aggregate of the Revolving
Commitments of all Lenders, or if the Revolving Commitments shall have been terminated, Lenders to whom at least fifty percent
(50%) of the then outstanding Obligations are owing.


 


“Requirement of Law” means,
with respect to any Person, (a) the charter, articles or certificate of organization or incorporation and bylaws or operating,
management or partnership agreement, or other organizational or governing documents of such Person and (b) any statute, law (including
common law), treaty, rule, regulation, code, ordinance, order, decree, writ, judgment, injunction or determination of any arbitrator
or court or other Governmental Authority (including Environmental Laws), in each case applicable to or binding upon such Person
or any of its property or to which such Person or any of its property is subject.


 






    47


     


    

“Reserves” shall mean as
of any date of determination, such amounts as Agent may from time to time, establish and revise reasonably and in good faith reducing
the amount of Revolving Loans and Letters of Credit which would otherwise be available to any Borrower under the lending formula(s)
provided for herein:


 


(a)              
to reflect events, conditions, contingencies or risks which, as determined by Agent reasonably and in good faith,
materially and adversely affect, either (i) the Collateral, its value or the amount that might be received by Agent from the sale
or other disposition or realization upon such Collateral, or (ii) the assets or business of any Borrower or Guarantor or (iii)
the security interests and other rights of Agent or any Lender in the Collateral (including the enforceability, perfection and
priority thereof); or


 


(b)              
to reflect Agent’s reasonable and good faith belief that any collateral report or financial information furnished
by or on behalf of any Borrower or Guarantor to Agent is or may have been incomplete, inaccurate or misleading in any material
respect; or


 


(c)              
in respect of any state of facts which Agent believes reasonably and in good faith determines constitutes a Default
or an Event of Default (which reasonable and good faith belief shall be relevant for purposes of this definition regardless of
whether the Agent has explicitly asserted any other rights to which it may be entitled); or


 


(d)              
Push Down Reserves.


 


Without limiting the generality of the foregoing,
Reserves may, at Agent’s option, be established to reflect any of the following:


 


(i)                
Inventory shrinkage,


 


(ii)             
reserves in respect of markdowns and cost variances (pursuant to discrepancies between the purchase order price of
Inventory and the actual cost thereof),


 


(iii)           
past due amounts in respect of sales, use and/or withholding taxes,


 


(iv)            
any amounts which are past due in respect of rental payments, service charges or other amounts which are past due
to (i) lessors of real property other than retail store locations (“Non-Retail Store Locations”) or (ii) consignees,
warehousemen or bailees of Inventory or personal property (“Warehouse Locations”), to the extent Inventory or
Records are located in or on such property (but not in respect of Non-Retail Store Locations or Warehouse Locations (A) where Agent
has received a Collateral Access Agreement executed and delivered by the owner and lessor of such real property that Agent has
acknowledged in writing is in form and substance satisfactory to Agent or (B) which do not (1) contain Records relating to Receivables
or Inventory or (2) in which either no Inventory or Inventory having a Value of less than $250,000 is located, provided,
that, notwithstanding, the foregoing Agent may, at its option, establish Reserves in respect of amounts at any time due or to become
due to the owner and operator of such Non-Retail Store Location and Warehouse Location as Agent shall reasonably determine in the
event that any of the following shall occurred: (A) an Event of Default shall have occurred and be continuing, (B) any Borrower,
Guarantor or Agent shall have received notice of any event of default under (i) the lease with respect to such Non-Retail Store
Location or (ii) the bailee or warehouse agreement with respect to such Warehouse Location or (C) any Borrower or Guarantor has
granted to the lessor, consignee, warehousemen or bailee a consensual security interest or lien upon any assets of such Borrower
or Guarantor (unless such security interest is waived or subordinated to the security interest of Agent on terms and conditions
reasonably satisfactory to Agent),


 






    48


     


    

(v)              
any rental payments, service charges or other amounts owing to lessors of retail store locations,


 


(A)            
which are past due and owing to lessors of retail store locations in states other than Landlord Lien States (but
not in respect of retail store locations where Agent has received a Collateral Access Agreement executed and delivered by the owner
and lessor of such real property that Agent has acknowledged in writing is in form and substance satisfactory to Agent), provided,
that, Agent may, at its option, establish Reserves in respect of amounts at any time due or to become due to the owner and lessor
of such a retail store location as Agent shall reasonably determine in the event that any of the following shall occurred: (1)
an Event of Default shall have occurred and be continuing, (2) any Borrower, Guarantor or Agent shall have received notice of any
event of default under the lease with respect to such location, or (3) any Borrower or Guarantor has granted to the lessor a security
interest or lien upon any assets of such Borrower or Guarantor (unless such security interest is waived or subordinated to the
security interest of Agent on terms and conditions reasonably satisfactory to Agent), and


 


(B)             
which are due or to become due to lessors of retail store locations located in Landlord Lien States (but not in respect
of retail store locations where Agent has received a Collateral Access Agreement executed and delivered by the owner and lessor
of such real property that Agent has acknowledged in writing is in form and substance satisfactory to Agent), provided,
that, the Reserves established pursuant to this clause (v)(B) as to any particular retail store location shall not
exceed at any time the aggregate of such amounts payable for the next two (2) months to the lessors of such retail store locations,
provided, that, such limitation on the amount of the Reserves which may be established by Agent pursuant to this clause (v)(B)
shall only apply so long as: (1) no Event of Default shall have occurred and be continuing, (2) neither a Borrower, Guarantor nor
Agent shall have received notice of any event of default under the lease with respect to such location or (3) any Borrower or Guarantor
has granted a consensual lien or security interest upon any assets of such Borrower or Guarantor (unless such security interest
is waived or subordinated to the security interest of Agent on terms and conditions reasonably satisfactory to Agent),


 


(vi)            
any rental payments, service charges or other amounts which are past due to lessors of personal property,


 


(vii)         
up to fifty (50%) percent of the aggregate amount of (A) merchandise gift certificates, and (B) the dollar value
of Frequent Buyer Program points as accrued by Borrowers in accordance with GAAP,


 






    49


     


    

(viii)       
an adverse change in the number of days of the turnover of Inventory or a material change in the mix of the Inventory
that results in an overall decrease in the value thereof or a material deterioration in its nature or quality that results in an
overall decrease in the value thereof (but only to the extent not addressed by the lending formulas in a manner satisfactory to
Agent),


 


(ix)            
variances between the perpetual inventory records of Borrowers and the results of test counts of Inventory conducted
by Agent or at the request of Agent pursuant to the terms of this Agreement, with respect thereto in excess of the percentage reasonably
acceptable to Agent but only to the extent that such variances are not accounted for as Inventory shrinkage,


 


(x)              
Inventory that may become obsolete, based on prior twelve (12) months expired product expenses or Inventory currently
in retail store locations that was subject to previous store “giveaways” within the prior twelve (12) months,


 


(xi)            
the aggregate amount of deposits, if any, received by any Borrower from its retail customers in respect of unfilled
orders for merchandise,


 


(xii)         
the amount of Canadian Priority Payables, provided, that, any Reserve with respect to clause (b)
of the definition of Canadian Priority Payables shall only be taken in respect of Eligible Inventory located in Canada,


 


(xiii)       
Bank Product Reserve, and


 


(xiv)        
E-Payables Reserve.


 


Agent will not establish new Reserves after the date hereof on account
of any circumstances, conditions, events or contingencies of which Agent has actual knowledge as of the Closing Date. To the extent
Agent may establish new criteria or revise existing criteria (including percentages applied to determine the amount of) for Eligible
Credit Card Receivables, Eligible Accounts, or Eligible Inventory so as to address any circumstances, condition, event or contingency
in a manner reasonably satisfactory to Agent, Agent shall not establish or increase a Reserve for the same purpose. The amount
of any Reserve established or increased by Agent shall have a reasonable relationship to the event, condition or other matter which
is the basis for such Reserve as reasonably determined by Agent in good faith and to the extent that such Reserve is in respect
of amounts that may be payable to third parties or is in respect of Bank Product Reserves, Agent may, at its option, deduct such
Reserve from the Aggregate Revolving Commitments Amount at any time that such limit is less than the amount of the Borrowing Base.
Agent shall provide prior written notice to Administrative Borrower of any material change in the categories of Reserves established
after the date hereof or in the manner such Reserves are calculated or any other change to any item for the calculation thereof.


 


“Revolving Commitment” means,
with respect to each Revolving Lender, the commitment, if any, of such Revolving Lender to make Revolving Loans and to acquire
participations in Letters of Credit, expressed as an amount representing the maximum possible aggregate amount of such Revolving
Lender’s Revolving Exposure hereunder, as such commitment may be reduced or increased from time to time pursuant to (a) Section 2.4
and (b) assignments by or to such Revolving Lender pursuant to Section 13.7. Each Revolving Lender’s Revolving
Commitment as of the Closing Date is the amount set forth opposite such Revolving Lender’s name on Schedule 1
under the caption “Revolving Commitment”.


 






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“Revolving Exposure” means,
with respect to any Revolving Lender at any time, the sum of the outstanding principal amount of such Revolving Lender’s
unpaid Revolving Loans and its outstanding Letter of Credit Obligations.


 


“Revolving Lender” means,
as of any date of determination, a Lender with a Revolving Commitment or, if the Revolving Commitments have terminated or expired,
a Lender with Revolving Exposure.


 


“Revolving Loans” shall mean
the loans now or hereafter made by or on behalf of any Revolving Lender or by Agent for the account of any Revolving Lender on
a revolving basis pursuant to the Credit Facility (involving advances, repayments and readvances) as set forth in Section 2.1,
Section 12.8 and Section 12.11 hereof.


 


“Sanctioned Country” means,
at any time, a country, region or territory which is itself the subject or target of any Sanctions (as of the Closing Date, Crimea,
Cuba, Iran, North Korea, and Syria).


 


“Sanctioned Person” means,
at any time, (a) any Person listed in any Sanctions-related list of designated Persons maintained by the Office of Foreign Assets
Control of the U.S. Department of the Treasury, the U.S. Department of State or other relevant sanctions authority, (b) any Person
operating, organized or resident in a Sanctioned Country, (c) any Person owned or controlled by any such Person or Persons described
in the foregoing clauses (a) or (b) or (d) any Person otherwise the subject of any Sanctions.


 


“Sanctions” means all economic
or financial sanctions or trade embargoes imposed, administered or enforced from time to time by (a) the U.S. government, including
those administered by the Office of Foreign Assets Control of the U.S. Department of the Treasury or the U.S. Department of State,
or (b) any other relevant sanctions authority.


 


“Secured Parties” shall mean,
collectively, (a) Agent, (b) Lenders, (c) the Issuing Bank, and (d) any Bank Product Provider and Bank of America, N.A. (in its
capacity as a party to the E-Payables Agreement); provided, that, (i) as to any Bank Product Provider and as to Bank of
America, N.A., only to the extent of the Obligations owing to such Bank Product Provider and Bank of America, N.A., as provided,
in subsection (b) of the definition of Obligations set forth herein and (ii) such parties are sometimes referred to
herein individually as a “Secured Party”.


 


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


 


“Solvent” shall mean, at
any time with respect to any Person, that at such time such Person (a) is able to pay its debts as they mature and has (and has
a reasonable basis to believe it will continue to have) sufficient capital (and not unreasonably small capital) to carry on its
business consistent with its practices as of the Closing Date, and (b) the assets and properties of such Person at a fair valuation
on a going concern basis (and including as assets for this purpose at a fair valuation all rights of subrogation, contribution
or indemnification arising pursuant to any guarantees given by such Person) are greater than the Indebtedness of such Person, and
including subordinated and contingent liabilities computed at the amount which, such Person has a reasonable basis to believe,
represents an amount which can reasonably be expected to become an actual or matured liability (and including as to contingent
liabilities arising pursuant to any guarantee the face amount of such liability as reduced to reflect the probability of it becoming
a matured liability).


 






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“Special Agent Advances”
shall have the meaning set forth in Section 12.11 hereof.


 


“Specified Closing Plan”
means the model delivered to the Agent prior to the Closing Date with the file name “Project Valor Model v2019-11-25 vF (70mm
JPM & 70mm GACP - L + 900 BPS)” and titled “Project Valor Financial Model”.


 


“Specified Transaction” means
any (a) disposition of all or substantially all the assets of or all the Capital Stock of any Subsidiary of the Parent or of any
business unit, line of business or division of the Parent or any of its Subsidiaries for which historical financial statements
are available, (b) Permitted Acquisitions, (c) Investment that results in a Person becoming a Borrower or Subsidiary, (d) the proposed
incurrence of Permitted Subordinated Indebtedness, or (e) the making of an Investment, dividend or distribution or repurchase of
Capital Stock in respect of which compliance with the Required Conditions or any other financial ratio is by the terms of this
Agreement is required to be calculated on a pro forma basis.


 


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


 


“Store Accounts” shall have
the meaning set forth in Section 6.3; provided that the Store Accounts maintained by the Borrowers as of the
Closing Date are identified as “Store Accounts” on Schedule 8.10 hereto, and any replacement or additional
accounts of the Borrowers.


 


“Subsidiary” or “subsidiary”
shall mean, with respect to any Person, any corporation, limited liability company, limited liability partnership or other limited
or general partnership, trust, association or other business entity of which an aggregate of at least a majority of the outstanding
Capital Stock or other interests entitled to vote in the election of the board of directors of such corporation (irrespective of
whether, at the time, Capital Stock of any other class or classes of such corporation shall have or might have voting power by
reason of the happening of any contingency), managers, trustees or other controlling Persons, or an equivalent controlling interest
therein, of such Person is, at the time, directly or indirectly, owned by such Person and/or one or more subsidiaries of such Person.


 






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“Subsidiary Guarantors” shall
have the meaning assigned to such term in the definition of “Guarantors”.


 


“Supported QFC” has the meaning
assigned to it in Section 13.12.


 


“Supporting Obligations”
shall have the meaning set forth in Article 9 of the UCC.


 


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


 


“Term Loan Agent” means GACP
Finance Co., LLC, in its capacity as “Agent” under the Term Loan Agreement, together with its successor and permitted
assigns.


 


“Term Loan Agreement” means
that certain Loan and Security Agreement, dated as of the Closing Date, among the Borrowers, the Parent, the financial institutions
from time to time party thereto as “Lenders” and the Term Loan Agent, as agent for the Term Loan Lenders, as the same
may be amended, restated, supplemented or otherwise modified from time to time in accordance with the Intercreditor Agreement.


 


“Term Loan Borrowing Base”
shall mean the “Borrowing Base” as defined in the Term Loan Agreement.


 


“Term Loan Borrowing Base II”
shall mean the “Borrowing Base II” as defined in the Term Loan Agreement.


 


“Term Loan Borrowing Base Certificate”
means the Borrowing Base Certificate (as defined in the Term Loan Agreement) from time to time delivered to the Term Loan Agent
in accordance with the terms of the Term Loan Agreement.


 


“Term Loan Documents” means
the “Financing Agreements” as defined in the Term Loan Agreement or the agreements and other documents governing other
Indebtedness incurred under Section 9.9(t).


 


“Term Loan Lender” means
a “Lender” under and as defined in the Term Loan Agreement.


 


“Term Loan Obligations” means
all Indebtedness of the Borrower and the Guarantors incurred or owing under the Term Loan Documents, including all obligations
in respect of the payment of principal, interest, fees, prepayment premiums and indemnification obligations, and any refinancing
of such Indebtedness permitted under this Agreement and under the Intercreditor Agreement; provided that such Indebtedness
is subject to the Intercreditor Agreement.


 


“Term Loan Outstandings”
shall have the meaning assigned such term in the Term Loan Agreement.


 


“Term Loan Priority Collateral”
has the meaning assigned to such term in the Intercreditor Agreement.


 


“Test Period” means the most
recent period of twelve consecutive months of Parent ended on or prior to such time (taken as one accounting period) in respect
of which financial statements for each month or fiscal year period have been (or have been required to be) delivered pursuant to
Section 9.6.


 






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“Total Indebtedness” shall
mean, at any date, the aggregate principal amount of all Indebtedness of the Parent and its Subsidiaries at such date, determined
on a consolidated basis in accordance with GAAP.


 


“Type” when used in reference
to any Revolving Loan or Borrowing, refers to whether the rate of interest on such Revolving Loan, or on the Revolving Loans comprising
such Borrowing, is determined by reference to the Adjusted LIBO Rate or the Alternate Base Rate.


 


“UCC” shall mean the Uniform
Commercial Code as in effect in the State of New York, and any successor statute, as in effect from time to time (except that terms
used herein which are defined in the Uniform Commercial Code as in effect in the State of New York on the date hereof shall continue
to have the same meaning notwithstanding any replacement or amendment of such statute except as Agent may otherwise determine);
provided, that, if, with respect to any financing statement or by reason of any provisions of law, the perfection or the
effect of perfection or non-perfection of the security interests granted to the Agent pursuant to applicable Financing Agreement
is governed by the Uniform Commercial Code as in effect in a jurisdiction of the United States other than the State of New York,
then “UCC” means the Uniform Commercial Code as in effect from time to time in such other jurisdiction for purposes
of the provisions of each Financing Agreement and any financing statement relating to such perfection or effect of perfection or
non-perfection.


 


“Ultimate Parent” shall mean
Franchise Group, Inc., a Delaware corporation (formerly known as Liberty Tax, Inc.).


 


“Unliquidated Obligations”
means, at any time, any Obligations (or portion thereof) that are contingent in nature or unliquidated at such time, including
any Obligation that is: (a) an obligation to reimburse a bank for drawings not yet made under a letter of credit issued by it;
(b) any other obligation (including any guarantee) that is contingent in nature at such time; or (c) an obligation to provide collateral
to secure any of the foregoing types of obligations.


 


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


 


“U.S. Special Resolution Regime”
has the meaning assigned to it in Section 13.12.


 


“Valor Merger” means the
“Merger” as defined in the Valor Merger Agreement as in effect on November 11, 2019 and the other transactions expressly
described therein that are required to consummate the Merger.


 


“Valor Merger Agreement”
means that certain Agreement and Plan of Merger, dated as of August 7, 2019, by and among Ultimate Parent, Parent, and Original
Parent, as amended by that certain First Amendment to Agreement and Plan of Merger dated as of November 11, 2019.


 


“Value” shall mean, as reasonably
determined by Agent in good faith, with respect to Inventory, the lower of (a) cost determined on the weighted average cost basis
in accordance with GAAP or (b) market value, provided, that, for purposes of the calculation of the Borrowing Base, (i)
the Value of the Inventory shall not include: (A) the portion of the value of Inventory equal to the profit earned by any Affiliate
on the sale thereof to any Borrower unless the sale by such Affiliate is a bona fide arm’s length transaction consistent
with the most recent appraisal received and accepted by Agent for the Inventory and consistent with the prices previously paid
by such Borrower in comparable dealings with non-Affiliates, or (B) write-ups or write-downs in value with respect to currency
exchange rates and (ii) notwithstanding anything to the contrary contained herein, the cost of the Inventory shall be computed
in the same manner and consistent with the most recent appraisal of the Inventory received and accepted by Agent prior to the date
hereof, if any.


 






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“VAT” shall mean Value Added
Tax imposed in Canada or any other jurisdiction and any equivalent or similar tax applicable in any jurisdiction and including
any goods and services tax.


 


“Vintage” shall mean Vintage
Capital Management LLC, a Delaware limited liability company.


 


“Vitamin Shoppe” shall mean
Vitamin Shoppe Industries LLC, a New York limited liability company, and its successors and assigns.


 


“Voting Stock” shall mean
with respect to any Person, (a) one (1) or more classes of Capital Stock of such Person having general voting powers to elect at
least a majority of the board of directors, managers or trustees of such Person, irrespective of whether at the time Capital Stock
of any other class or classes have or might have voting power by reason of the happening of any contingency, and (b) any Capital
Stock of such Person convertible or exchangeable without restriction at the option of the holder thereof into Capital Stock of
such Person described in clause (a) of this definition.


 


“VS Florida” shall mean Vitamin
Shoppe Florida, LLC, a Delaware limited liability company (f/k/a FDC Vitamins, LLC), and its successors and assigns.


 


“VS Global” shall mean Vitamin
Shoppe Global, LLC, a Delaware limited liability company, and its successors and assigns.


 


“VS Mariner” shall mean Vitamin
Shoppe Mariner, LLC, a Delaware limited liability company, and its successors and assigns.


 


“VSPS” shall mean Vitamin
Shoppe Procurement Services, LLC, a Delaware limited liability company, and its successors and assigns.


 


“Zero Balance Accounts” shall
mean Deposit Accounts in which a balance of zero is maintained by the depository institution at all times by automatically transferring
funds from a master Deposit Account to such Zero Balance Account in an amount only large enough to cover checks presented and other
debits to such account, such that any such Zero Balance Account maintains an overnight balance of zero dollars at all times.


 



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		Section 2.	CREDIT FACILITIES



 


2.1             
Revolving Loans.


 


(a)              
Subject to and upon the terms and conditions contained herein, each Revolving Lender severally (and not jointly)
agrees to make its Pro Rata Share of Revolving Loans to each Borrower from time to time in amounts requested by such Borrower (or
Administrative Borrower on behalf of such Borrower) in an aggregate principal amount outstanding at any one time that will not
result in such Revolving Lender’s Pro Rata Share of the aggregate amount of Revolving Loans and Letter of Credit Obligations
then outstanding exceeding such Revolving Lender’s Revolving Commitment. Subject to and upon the terms and conditions contained
herein, each Revolving Loan shall be comprised entirely of ABR Loans or Eurodollar Rate Loans as each Borrower (or Administrative
Borrower on behalf of such Borrower) may from time to time request in accordance herewith, provided that all Revolving Loans
made on the date hereof must be made as ABR Loans but may be converted into Eurodollar Rate Loans in accordance with Section 3.1(b)
hereof.


 


(b)              
To the extent that any facts or circumstances (i) have led to Agent establishing a Reserve pursuant to one provision
of this Agreement, Agent shall not establish any Reserves based on the same such facts or circumstances pursuant to any other provision
of this Agreement, and (ii) were taken into account in calculating any component of the Borrowing Base, Agent shall not establish
any Reserves based on the same such facts or circumstances.


 


(c)              
Except in Agent’s discretion, with the consent of all Revolving Lenders, or as otherwise provided in Section 12.8
or Section 12.11 herein, the Aggregate Revolving Exposure any time shall not exceed the Borrowing Cap at such time.


 


(d)              
In the event that the Aggregate Revolving Exposure at any time exceeds the Borrowing Cap at such time, (i) such event
shall not limit, waive or otherwise affect any rights of Agent or Lenders in such circumstances or on any future occasions and
(ii) Borrowers shall immediately repay to Agent the entire amount of any such excess.


 


2.2             
[Reserved].


 


2.3             
Letters of Credit.


 


(a)              
Subject to and upon the terms and conditions contained herein and in the Letter of Credit Documents, at the request
of a Borrower (or Administrative Borrower on behalf of such Borrower), Agent agrees to cause Issuing Bank to issue, and Issuing
Bank agrees to issue, for the account of such Borrower one or more Letters of Credit, for the ratable risk of each Revolving Lender
according to its Pro Rata Share of Revolving Loans, containing terms and conditions acceptable to Agent and Issuing Bank. In the
event of any inconsistency between the terms and conditions of this Agreement and the terms and conditions of any form of letter
of credit application or other agreement submitted by the Borrowers to, or entered into by the Borrowers with, Issuing Bank relating
to any Letter of Credit, the terms and conditions of this Agreement shall control. Notwithstanding anything herein to the contrary,
the Issuing Bank shall have no obligation hereunder to issue, and shall not issue, any Letter of Credit the proceeds of which would
be made available to any Person (i) to fund any activity or business of or with any Sanctioned Person, or in any country or territory
that, at the time of such funding, is the subject of any Sanctions or (ii) in any manner that would result in a violation of any
Sanctions by any party to this Agreement.


 






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(b)              
The Borrower requesting such Letter of Credit (or Administrative Borrower on behalf of such Borrower) shall hand
deliver or facsimile (or transmit by electronic communication, if arrangements for doing so have been approved by the Issuing Bank)
to Issuing Bank and Agent (prior to 10:00 a.m., New York time, at least three Business Days prior to the requested date of
issuance, amendment, renewal or extension) a notice requesting the issuance of a Letter of Credit, or identifying the Letter of
Credit to be amended, renewed or extended, and specifying the date of issuance, amendment, renewal or extension (which shall be
a Business Day), the date on which such Letter of Credit is to expire (which shall comply with paragraph (c) of this
Section), the amount of such Letter of Credit, the name and address of the beneficiary thereof and such other information as shall
be reasonably necessary to prepare, amend, renew or extend such Letter of Credit. The form and terms of the proposed Letter of
Credit shall be reasonably satisfactory to Agent and Issuing Bank, and as of the date of issuance, no order of any court, arbitrator
or other Governmental Authority shall purport by its terms to enjoin or restrain money center banks relevant to the proposed issuance
generally from issuing letters of credit of the type and in the amount of the proposed Letter of Credit, and no law, rule or regulation
applicable to money center banks generally and no request or directive (whether or not having the force of law) from any Governmental
Authority with jurisdiction over money center banks relevant to the proposed issuance generally shall prohibit, or request that
Issuing Bank refrain from, the issuance of letters of credit generally or the issuance of such Letter of Credit. If requested by
Issuing Bank, the applicable Borrower also shall submit a letter of credit application on Issuing Bank’s standard form in
connection with any request for a Letter of Credit. A Letter of Credit shall be issued, amended, renewed or extended only if (and
upon issuance, amendment, renewal or extension of each Letter of Credit the Borrowers shall be deemed to represent and warrant
that), after giving effect to such issuance, amendment, renewal or extension (i) the Letter of Credit Obligations with respect
to stand-by Letters of Credit shall not exceed the Letter of Credit Limit, (ii) the terms and conditions of Section 2.1
hereof shall be satisfied, and (iii) Excess Availability, prior to giving effect to any Reserves with respect to such Letter of
Credit, on the date of the proposed issuance of any Letter of Credit shall be equal to or greater than: (A) if the proposed Letter
of Credit is for the purpose of purchasing Eligible Inventory and the documents of title with respect thereto are consigned to
Issuing Bank, the sum of (1) the percentage equal to one hundred (100%) percent minus the then applicable percentage with
respect to Eligible Inventory set forth in the definition of the term Borrowing Base multiplied by the Value of such Eligible Inventory,
plus (2) freight, taxes, duty and other amounts which Agent estimates must be paid in connection with such Inventory upon
arrival and for delivery to one of such Borrower’s locations for Eligible Inventory within the United States of America or
Canada and (B) if the proposed Letter of Credit is for any other purpose or the documents of title are not consigned to Issuing
Bank in connection with a Letter of Credit for the purpose of purchasing Inventory, an amount equal to one hundred (100%) percent
of the Letter of Credit Obligations with respect thereto. Effective on the issuance of each Letter of Credit, Reserves shall be
established in the applicable amount set forth in Section 2.3(b)(iii)(A) or Section 2.3(b)(iii)(B).


 


(c)              
Each Letter of Credit shall expire at or prior to the close of business on the earlier of (i) the date one year after
the date of the issuance of such Letter of Credit (or, in the case of any renewal or extension thereof, one year after such renewal
or extension) unless otherwise agreed by the Issuing Bank and (including automatic or “evergreen” renewal) and (ii)
the date that is five (5) Business Days prior to the Maturity Date.


 






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(d)              
Except in Agent’s discretion, with the consent of all Revolving Lenders, the amount of all outstanding Letter
of Credit Obligations with respect to stand-by Letters of Credit shall not at any time exceed the Letter of Credit Limit.


 


(e)              
If Issuing Bank shall make any payment in respect of a Letter of Credit, Borrowers shall reimburse such payment by
paying to Agent an amount equal to such payment not later than 2:00 p.m., New York time, on the date that such payment is
made, if Administrative Borrower shall have received notice of such payment prior to 10:00 a.m., New York time, on such date,
or, if such notice has not been received by Administrative Borrower prior to such time on such date, then not later than 2:00 p.m.,
New York time, on (i) the Business Day that Administrative Borrower receives such notice, if such notice is received prior to 10:00 a.m.,
New York time, on the day of receipt, or (ii) the Business Day immediately following the day that Administrative Borrower receives
such notice, if such notice is not received prior to such time on the day of receipt. Each drawing under any Letter of Credit or
other amount payable in connection therewith when due shall constitute a request by the Borrower for whose account such Letter
of Credit was issued to Agent for a ABR Loan in the amount of such drawing or other amount then due, and shall be made by Agent
on behalf of Revolving Lenders as a Revolving Loan (or Special Agent Advance, as the case may be) (which Revolving Loan shall be
deemed to reimburse the Issuing Bank for such amount due). The date of such Revolving Loan shall be the date of the drawing or
as to other amounts, the due date therefor. Any payments made by or on behalf of Agent or any Revolving Lender to Issuing Bank
and/or related parties in connection with any Letter of Credit shall constitute additional Revolving Loans to such Borrower pursuant
to this Section 2 (or Special Agent Advances as the case may be).


 


(f)               
Borrowers’ joint and several obligation to reimburse Issuing Bank for any payment under any Letter of Credit
as provided in paragraph (e) of this Section shall be absolute, unconditional and irrevocable, and shall be performed
strictly in accordance with the terms of this Agreement under any and all circumstances whatsoever and irrespective of (i) any
lack of validity or enforceability of any Letter of Credit or this Agreement, or any term or provision therein, (ii) any draft
or other document presented under a Letter of Credit proving to be forged, fraudulent or invalid in any respect or any statement
therein being untrue or inaccurate in any respect, (iii) payment by Issuing Bank under a Letter of Credit against presentation
of a draft or other document that does not comply with the terms of such Letter of Credit, or (iv) any other event or circumstance
whatsoever, whether or not similar to any of the foregoing, that might, but for the provisions of this Section, constitute a legal
or equitable discharge of, or provide a right of setoff against, Borrowers’ obligations hereunder. Neither Agent, Revolving
Lenders nor Issuing Bank, nor any of their Related Parties, shall have any liability or responsibility by reason of or in connection
with the issuance or transfer of any Letter of Credit or any payment or failure to make any payment thereunder (irrespective of
any of the circumstances referred to in the preceding sentence), or any error, omission, interruption, loss or delay in transmission
or delivery of any draft, notice or other communication under or relating to any Letter of Credit (including any document required
to make a drawing thereunder), any error in interpretation of technical terms or any consequence arising from causes beyond the
control of Issuing Bank; provided that the foregoing shall not be construed to excuse Issuing Bank from liability to Borrowers
to the extent of any direct damages (as opposed to consequential damages, claims in respect of which are hereby waived by Borrowers
to the extent permitted by applicable law) suffered by any Borrower that are caused by Issuing Bank’s failure to exercise
care when determining whether drafts and other documents presented under a Letter of Credit comply with the terms thereof. The
parties hereto expressly agree that, in the absence of gross negligence, bad faith, or willful misconduct on the part of Issuing
Bank (as finally determined by a court of competent jurisdiction), Issuing Bank shall be deemed to have exercised care in each
such determination. In furtherance of the foregoing and without limiting the generality thereof, the parties agree that, with respect
to documents presented which appear on their face to be in substantial compliance with the terms of a Letter of Credit, Issuing
Bank may, in its sole discretion, either accept and make payment upon such documents without responsibility for further investigation,
regardless of any notice or information to the contrary, or refuse to accept and make payment upon such documents if such documents
are not in strict compliance with the terms of such Letter of Credit.


 






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(g)              
Borrowers and Guarantors shall indemnify and hold Agent and Lenders harmless from and against any and all losses,
claims, damages, liabilities, costs and expenses which Agent or any Lender may suffer or incur in connection with any Letter of
Credit and any documents, drafts or acceptances relating thereto, including any losses, claims, damages, liabilities, costs and
expenses due to any action taken by Issuing Bank or correspondent with respect to any Letter of Credit, except for such losses,
claims, damages, liabilities, costs or expenses that are a direct result of the gross negligence, bad faith or willful misconduct
of Agent or any Lender. Each Borrower and Guarantor assumes all risks with respect to the acts or omissions of the drawer under
or beneficiary of any Letter of Credit and for such purposes the drawer or beneficiary shall be deemed such Borrower’s agent.
Each Borrower and Guarantor assumes all risks for, and agrees to pay, all foreign, Federal, State and local taxes, duties and levies
relating to any goods subject to any Letter of Credit or any documents, drafts or acceptances thereunder. Each Borrower and Guarantor
hereby releases and holds Agent and Lenders harmless from and against any acts, waivers, errors, delays or omissions with respect
to or relating to any Letter of Credit, except for the gross negligence, bad faith or willful misconduct of Agent or any Lender.
The provisions of this Section 2.3(g) shall survive the payment of Obligations and the termination of this Agreement.


 


(h)              
At any time after the occurrence and during the continuance of an Event of Default,


 


(i)                
in connection with Inventory purchased pursuant to any Letter of Credit, Borrowers and Guarantors shall, at Agent’s
reasonable request, instruct all suppliers, carriers, forwarders, customs brokers, warehouses or others receiving or holding cash,
checks, Inventory, documents or instruments in which Agent holds a security interest that upon Agent’s request, such items
are to be delivered to Agent and/or subject to Agent’s order, and if they shall come into such Borrower’s or Guarantor’s
possession, to deliver them, upon Agent’s reasonable request, to Agent in their original form; and


 


(ii)             
within three (3) Business Days that Administrative Borrower receives notice from Agent or Required Lenders demanding
the deposit of cash collateral pursuant to this paragraph, Borrowers shall deposit in an account with Agent, in the name of Agent
and for the benefit of the Revolving Lenders (the “LC Collateral Account”), an amount in cash equal to 105%
of the Letter of Credit Obligations as of such date plus accrued and unpaid interest thereon; provided that the obligation
to deposit such cash collateral shall become effective immediately, and such deposit shall become immediately due and payable,
without demand or other notice of any kind, upon the occurrence of any Event of Default with respect to any Borrower described
in clause (g) or (h) of Section 10.1. Such deposit shall be held by Agent as collateral for the
payment and performance of the Letter of Credit Obligations. Agent shall have exclusive dominion and control, including the exclusive
right of withdrawal, over such account for so long as the Event of Default which triggered the requirement for such funds to be
deposited is continuing and Borrowers hereby grant Agent a security interest in the LC Collateral Account. Other than any interest
earned on the investment of such deposits, which investments shall be made at the option and sole but reasonable discretion of
Agent and at Borrowers’ risk and expense, such deposits shall not bear interest. Interest or profits, if any, on such investments
shall accumulate in such account. Moneys in such account shall be applied by Agent to reimburse Issuing Bank for any draws under
any Letter of Credit for which it has not been reimbursed and, to the extent not so applied, shall be held for the satisfaction
of the reimbursement obligations of Borrowers for the Letter of Credit Obligations at such time or, if the maturity of the Loans
has been accelerated (but subject to the consent of Revolving Lenders with Letter of Credit Obligations representing greater than
50% of the total Letter of Credit Obligations), be applied to satisfy other Obligations. If Borrowers are required to provide an
amount of cash collateral hereunder as a result of the occurrence of an Event of Default, such amount (to the extent not applied
as aforesaid) shall be returned to Borrowers within three Business Days after all such Events of Default have been cured or waived.


 






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Except as otherwise provided herein, Agent shall
not exercise any such rights pursuant to this clause so long as no Event of Default shall have occurred and be continuing. Borrowers
and Guarantors shall, at Agent’s reasonable request, designate Issuing Bank with respect to a Letter of Credit as the consignee
on all bills of lading and other negotiable and non-negotiable documents under such Letter of Credit.


 


(i)                
Each Borrower and Guarantor hereby irrevocably authorizes and directs Issuing Bank to name such Borrower or Guarantor
as the account party therein and to deliver to Agent all instruments, documents and other writings and property received by Issuing
Bank pursuant to the Letter of Credit and to accept and rely upon Agent’s instructions and agreements with respect to all
matters arising in connection with the Letter of Credit or the Letter of Credit Documents with respect thereto. Nothing contained
herein shall be deemed or construed to grant any Borrower or Guarantor any right or authority to pledge the credit of Agent or
any Revolving Lender in any manner. Borrowers and Guarantors shall be bound by any reasonable interpretation made in good faith
by Agent or Issuing Bank under or in connection with any Letter of Credit or any documents, drafts or acceptances thereunder, notwithstanding
that such interpretation may be inconsistent with any instructions of any Borrower or Guarantor.


 


(j)                
Immediately upon the issuance or amendment of any Letter of Credit, each Revolving Lender shall be deemed to have
irrevocably and unconditionally purchased and received, without recourse or warranty, an undivided interest and participation to
the extent of such Revolving Lender’s Pro Rata Share of the liability with respect to such Letter of Credit and the obligations
of Borrowers with respect thereto (including all Letter of Credit Obligations with respect thereto). Each Revolving Lender shall
absolutely, unconditionally and irrevocably assume, as primary obligor and not as surety, and be obligated to pay to Issuing Bank
therefor and discharge when due, its Pro Rata Share of all of such obligations arising under such Letter of Credit. Without limiting
the scope and nature of each Revolving Lender’s participation in any Letter of Credit, to the extent that Issuing Bank has
not been reimbursed or otherwise paid as required hereunder or under any such Letter of Credit, each such Revolving Lender shall
pay to Issuing Bank its Pro Rata Share of such unreimbursed drawing or other amounts then due to Issuing Bank in connection therewith.


 






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(k)              
The obligations of Borrowers to pay Letter of Credit Obligations and the obligations of Revolving Lenders to make
payments to Agent for the account of Issuing Bank with respect to Letters of Credit shall be absolute, unconditional and irrevocable
and shall be performed strictly in accordance with the terms of this Agreement under any and all circumstances, whatsoever, notwithstanding
the occurrence or continuance of any Default, Event of Default, the failure to satisfy any other condition set forth in Section
4 or any other event or circumstance. If such amount is not made available by a Revolving Lender when due, Agent shall be entitled
to recover such amount on demand from such Revolving Lender with interest thereon, for each day from the date such amount was due
until the date such amount is paid to Agent at the Interest Rate then payable by any Borrower in respect of Revolving Loans that
are Prime Rate Loans. Any such reimbursement shall not relieve or otherwise impair the obligation of Borrowers to reimburse Issuing
Bank under any Letter of Credit or make any other payment in connection therewith.


 


(l)                
If Issuing Bank shall make any payment under any Letter of Credit, then, unless Borrowers shall reimburse such payment
in full on the date such payment is made, the unpaid amount thereof shall bear interest, for each day from and including the date
such payment is made to but excluding the date that the Borrowers reimburse such payment including a reimbursement pursuant to
any ABR Loan made by Agent in accordance with paragraph (e) of this Section, at the rate per annum then applicable
to ABR Loans; provided that, if Borrowers fail to reimburse such payment when due pursuant to paragraph (e)
of this Section, then Agent may, at its option, and Agent shall, at the direction of the Required Lenders, increase the Applicable
Margin otherwise used to calculate the interest rate for ABR Loans by two (2%) percent per annum; provided that such increased
Applicable Margins shall only apply to such unpaid amount and not to any other Obligations, outstanding hereunder. Interest accrued
pursuant to this paragraph shall be for the account of Issuing Bank, except that interest accrued on and after the date of payment
by any Revolving Lender pursuant to paragraph (e) of this Section to reimburse Issuing Bank shall be for the account
of such Revolving Lender to the extent of such payment.


 


(m)            
Issuing Bank may be replaced at any time by written agreement among the Administrative Borrower, Agent, the replaced
Issuing Bank and the successor Issuing Bank. Agent shall notify Lenders of any such replacement of Issuing Bank. At the time any
such replacement shall become effective, Borrowers shall pay all unpaid fees accrued for the account of the replaced Issuing Bank
as described in Section 3.2(b) hereof. From and after the effective date of any such replacement, (i) the successor
Issuing Bank shall have all the rights and obligations of Issuing Bank under this Agreement with respect to Letter of Credit to
be issued thereafter and (ii) references herein to the term “Issuing Bank” shall be deemed to refer to such
successor or to any previous Issuing Bank, or to such successor and all previous Issuing Banks, as the context shall require. After
the replacement of an Issuing Bank hereunder, the replaced Issuing Bank shall remain a party hereto and shall continue to have
all the rights and obligations of an Issuing Bank under this Agreement with respect to Letters of Credit issued by it prior to
such replacement, but shall not be required to issue additional Letters of Credit.


 






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2.4             
Termination, Reductions or Increases of Aggregate Revolving Commitment Amounts.


 


(a)              
The Borrowers may at any time terminate the Revolving Commitments upon the Payment in Full of the Obligations.


 


(b)              
The Borrowers may from time to time reduce the Revolving Commitments; provided that (i) each reduction of
the Revolving Commitments shall be in an amount that is an integral multiple of $1,000,000 and not less than $5,000,000 and (ii)
the Borrowers shall not terminate or reduce the Revolving Commitments if, after giving effect to any concurrent prepayment of the
Revolving Loans in accordance with Section 2.4(e) and Section 2.9, the Aggregate Revolving Exposure would exceed
the Borrowing Cap then in effect.


 


(c)              
The Borrowers shall notify Agent of any election to terminate or reduce the Aggregate Revolving Commitment Amounts
pursuant to Section 2.4(a) or (b), as applicable, at least three (3) Business Days prior to the effective date of
such termination or reduction, specifying such election and the effective date thereof; provided that the Borrowers shall
not reduce the Aggregate Revolving Commitment Amounts if, after giving effect to any concurrent prepayment of the Loans in accordance
with Section 2.4(e) and/or 2.9, the Aggregate Revolving Exposure then outstanding would exceed the Borrowing Cap.
Promptly following receipt of any such notice, Agent shall advise the Lenders of the contents thereof. Each notice delivered by
the Borrowers pursuant to this Section 2.4(c) shall be irrevocable; provided that a notice of termination of
the Aggregate Revolving Commitment Amounts may state that such notice is conditioned upon the effectiveness of other credit facilities,
in which case such notice may be revoked by Administrative Borrower (by notice to Agent on or prior to the specified effective
date) if such condition is not satisfied. Any termination or reduction of the Aggregate Revolving Commitment Amounts shall be permanent
and may not be reinstated. Each reduction of the Aggregate Revolving Commitment Amounts shall be made ratably among the Lenders
in accordance with each Lender’s Pro Rata Share.


 


(d)              
Increase of Aggregate Revolving Commitment Amounts.


 


(i)                
The Borrowers shall have the right to increase the Revolving Commitments by obtaining additional Revolving Commitments,
either from one or more of the Lenders or another lending institution; provided that (A) any such request for an increase
shall be in a minimum amount of $5,000,000, (B) the Administrative Borrower, on behalf of the Borrowers, may make a maximum of
four (4) such requests, (C) after giving effect thereto, the sum of the total of the additional Revolving Commitments added pursuant
to this Section 2.4(d) does not exceed $20,000,000, (D) the Agent and the Issuing Bank have approved any such new Lender,
such approvals not to be unreasonably withheld, (E) any such new Lender assumes all of the rights and obligations of a “Lender”
hereunder, (F) the procedures described in Section 2.4(d)(ii) below have been satisfied and (G) the Agent shall be satisfied
that such increase in the Revolving Commitments and all Loans or Letters of Credit that could be incurred or issued thereunder
is permitted under the Intercreditor Agreement and the Term Loan Agreement, each as in effect at such time. Nothing contained in
this Section 2.4(d) shall constitute, or otherwise be deemed to be, a commitment on the part of any Lender to increase its
Revolving Commitment hereunder at any time.


 






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(ii)             
Any amendment hereto for such an increase or addition shall be in form and substance reasonably satisfactory to the
Agent and shall only require the written signatures of the Agent, the Borrowers and each Lender being added or increasing its Revolving
Commitment. As a condition precedent to such an increase or addition, the Borrowers shall deliver to the Agent (A) a certificate
of each Loan Party signed by an authorized officer of such Loan Party (1) certifying and attaching the resolutions adopted by such
Loan Party approving or consenting to such increase, and (2) in the case of the Borrowers, certifying that, before and after giving
effect to such increase or addition, (x) the representations and warranties contained in Section 8 and the other Financing
Agreements are true and correct in all material respects (without duplication of any materiality qualification applicable thereto),
except to the extent that such representations and warranties specifically refer to an earlier date, in which case they are true
and correct in all material respects as of such earlier date and (y) no Default or Event of Default exists, and (B) legal opinions
and documents consistent with those delivered on the Closing Date, to the extent requested by the Agent. If the Borrowers elect
to increase the Aggregate Revolving Commitment Amounts by increasing the Revolving Commitment of a Lender, the Borrowers and such
Lender shall execute and deliver to the Agent an agreement substantially in the form of Exhibit F (a “Commitment
Increase Agreement”) or in such other form, including an amendment to this Agreement, otherwise acceptable to the Agent.
If the Borrowers elect to increase the Aggregate Revolving Commitment Amounts by causing an additional Lender to become a party
to this Agreement and there is no increased Revolving Commitment by an existing Lender, then the Borrowers and such additional
Lender shall execute and deliver to the Agent an agreement substantially in the form of Exhibit G (an “Additional
Lender Agreement”) or in such other form, including an amendment to this Agreement, otherwise acceptable to the Agent.
Each such additional Lender shall submit to the Agent an Administrative Questionnaire and a processing and recordation fee of $3,500.
The Borrowers shall, if requested by the additional Lender, deliver a promissory note payable to such additional Lender in a principal
amount equal to its Revolving Commitment, and otherwise duly completed.


 


(iii)           
On the effective date of any such increase or addition, (A) any Lender increasing (or, in the case of any newly added
Lender, extending) its Revolving Commitment shall make available to the Agent such amounts in immediately available funds as the
Agent shall determine, for the benefit of the other Lenders, as being required in order to cause, after giving effect to such increase
or addition and the use of such amounts to make payments to such other Lenders, each Lender’s portion of the outstanding
Revolving Loans of all the Lenders to equal its revised Pro Rata Share of such outstanding Revolving Loans, and the Agent shall
make such other adjustments among the Lenders with respect to the Revolving Loans then outstanding and amounts of principal, interest,
commitment fees and other amounts paid or payable with respect thereto as shall be necessary, in the opinion of the Agent, in order
to effect such reallocation and (B) the Borrowers shall be deemed to have repaid and reborrowed all outstanding Revolving Loans
as of the date of any increase (or addition) in the Revolving Commitments (with such reborrowing to consist of the Types of Revolving
Loans, with related Interest Periods if applicable, specified in a notice delivered by the Administrative Borrower, in accordance
with the requirements of Section 3.7). The deemed payments made pursuant to clause (B) of the immediately preceding
sentence shall be accompanied by payment of all accrued interest on the amount prepaid and, in respect of each Eurodollar Rate
Loan, shall be subject to indemnification by the Borrowers pursuant to the provisions of Section 3.7 if the deemed payment
occurs other than on the last day of the related Interest Periods. Within a reasonable time after the effective date of any increase
or addition, the Agent shall, and is hereby authorized and directed to, revise Schedule 1 to reflect such increase or addition
and such revised Schedule 1 shall replace the old Schedule 1 and become part of this Agreement.


 






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(iv)            
Upon its receipt of a duly completed and executed Additional Lender Agreement or Commitment Increase Agreement, as
applicable, and the satisfaction of each other condition to the applicable increase in the Aggregate Revolving Commitment Amounts
in accordance with Section 2.4(d)(i) and (ii), Agent shall accept such Revolving Commitment Increase Certificate
and record, within three (3) Business Days, the information contained therein in the Register required to be maintained by Agent
pursuant to Section 13.7(b). No increase in the Aggregate Revolving Commitment Amounts shall be effective for purposes
of this Agreement unless it has been recorded in the Register as provided in this Section 2.4(d)(iv).


 


(e)              
Mandatory Prepayment Related to Reduction of Aggregate Revolving Commitment Amounts. If, after giving effect
to any termination or reduction of the Aggregate Revolving Commitment Amounts pursuant to Section 2.4(a) or (b),
the Aggregate Revolving Exposure exceeds the total Revolving Commitments, then the Borrowers shall (i) prepay the Loans as provided
in Section 2.9 on the date of such termination or reduction in an aggregate principal amount equal to such excess,
and (ii) if any excess remains after prepaying all of the Loans as a result of a Letter of Credit Obligation, pay to Agent on behalf
of the Lenders an amount equal to such excess to be held as cash collateral as provided in Section 2.3(h).


 


2.5             
Revolving Commitments. The aggregate amount of each Revolving Lender’s Pro Rata Share of the Revolving
Loans and Letter of Credit Obligations shall not exceed the amount of such Revolving Lender’s Revolving Commitment, as the
same may from time to time be amended in accordance with the provisions hereof.


 


2.6             
Bank Products. The Loan Parties, or any of their Subsidiaries, may (but no such Person is required to) request
that the Bank Product Providers provide or arrange for such Person to obtain Bank Products from Bank Product Providers, and each
Bank Product Provider may, in its sole discretion, provide or arrange for such Person to obtain the requested Bank Products. The
Loan Parties and any of their Subsidiaries that obtain Bank Products shall indemnify and hold Agent, each Lender and their respective
Affiliates harmless from any and all obligations now or hereafter owing to any other Person by any Bank Product Provider in connection
with any Bank Products other than for gross negligence or willful misconduct on the part of any such indemnified Person. This Section 2.6
shall survive the payment of the Obligations and the termination of this Agreement. Borrower and its Subsidiaries acknowledge and
agree that the obtaining of Bank Products from Bank Product Providers (a) is in the sole discretion of such Bank Product Provider,
and (b) is subject to all rules and regulations of such Bank Product Provider. Upon the request by the Loan Parties and the acceptance
by such Bank Product Provider in the first sentence of this Section 2.6, such Bank Product Provider shall be deemed
a party hereto for purposes of any reference in a Financing Agreement to the parties for whom Agent is acting, provided,
that, the rights of such Bank Product Provider hereunder and under any of the other Financing Agreements shall consist exclusively
of such Bank Product Provider’s right to share in payments and collections out of the Collateral as set forth herein. Each
Lender or Affiliate thereof providing Bank Products for, or having Hedge Agreements with, any Loan Party or any Subsidiary of a
Loan Party shall deliver to Agent, promptly after entering into such Hedge Agreement or Bank Product, written notice setting forth
the aggregate amount of all Hedge Obligations or Obligations arising under or pursuant to any Bank Products of such Loan Party
or Subsidiary to such Lender or Affiliate (whether matured or unmatured, absolute or contingent). In addition, each such Lender
or Affiliate thereof shall deliver to Agent, from time to time after a significant change therein or upon a request therefor, a
summary of the amounts due or to become due in respect of such Hedge Obligations and Obligations arising under or pursuant to any
Bank Products. The most recent information provided to Agent shall be used in determining the amounts to be applied in respect
of such Hedge Obligations and/or Obligations arising under or pursuant to any Bank Products pursuant to Section 6.4(a) and
which tier of the waterfall, contained in Section 6.4(a), such Hedge Obligations and/or Obligations arising under or pursuant
to any Bank Products will be placed.


 






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2.7             
Joint and Several Liability. Borrowers shall be liable for all Obligations due to Agent, Issuing Bank and
Secured Parties under this Agreement, regardless of which Borrower actually receives the Loans, Letters of Credit or other extensions
of credit hereunder or the amount of such Loans received or the manner in which Agent accounts for such Loans, Letters of Credit
or other extensions of credit on its books and records. The Obligations with respect to Loans and Letters of Credit or other extensions
of credit made to a Borrower, and the Obligations arising as a result of the joint and several liability of a Borrower hereunder,
with respect to Loans and Letters of Credit or other extensions of credit made to the other Borrowers hereunder, shall be separate
and distinct obligations, but all such Obligations shall be primary obligations of all Borrowers. The Obligations arising as a
result of the joint and several liability of a Borrower hereunder with respect to Loans, Letters of Credit or other extensions
of credit made to the other Borrowers hereunder shall, to the fullest extent permitted by law, be unconditional irrespective of
(a) the validity or enforceability, avoidance or subordination of the Obligations of the other Borrowers or of any promissory note
or other document evidencing all or any part of the Obligations of the other Borrowers, (b) the absence of any attempt to collect
the Obligations from the other Borrowers, any Guarantor or any other security therefor, or the absence of any other action to enforce
the same, (c) the failure by Agent to take any steps to perfect and maintain its security interest in, or to preserve its rights
and maintain its security or collateral for the Obligations of the other Borrowers and Guarantors, (d) the election of Agent in
any proceeding instituted under the Bankruptcy Code, of the application of Section 1111(b)(2) of the Bankruptcy Code, (e)
the disallowance of all or any portion of the claim(s) of Agent for the repayment of the Obligations of the other Borrowers and
Guarantors under Section 502 of the Bankruptcy Code, or (f) any other circumstances which might constitute a legal or equitable
discharge or defense of any obligor, other than the payment of the Obligations and the willful misconduct, bad faith or gross negligence
of Agent, any Issuing Bank or Lenders as determined pursuant to a final, non-appealable order of a court of competent jurisdiction.
With respect to the Obligations arising as a result of the joint and several liability of a Borrower hereunder with respect to
Loans, Letters of Credit or other extensions of credit made to the other Borrowers hereunder, each Borrower and Guarantor waives,
until the Obligations shall have been paid in full in immediately available funds and this Agreement shall have been terminated,
any right to enforce any right of subrogation or any remedy which Agent now has or may hereafter have against Borrowers and Guarantors,
any endorser or any guarantor of all or any part of the Obligations, and any benefit of, and any right to participate in, any security
or collateral given to Agent. Upon any Event of Default and for so long as the same is continuing, Agent may proceed directly and
at once, without notice, against any Borrower or Guarantor to collect and recover the full amount, or any portion of the Obligations,
without first proceeding against the other Borrowers or any other Person, or against any security or collateral for the Obligations.
Each Borrower and Guarantor consents and agrees that Agent and Lenders shall be under no obligation to marshal any assets in favor
of Borrower(s) or Guarantors against or in payment of any or all of the Obligations.


 






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2.8             
Defaulting Lenders. Notwithstanding any provision of this Agreement to the contrary, if any Revolving Lender
becomes a Defaulting Lender, then the following provisions shall apply for so long as such Revolving Lender is a Defaulting Lender:


 


(a)              
fees shall cease to accrue on the unfunded portion of the Revolving Commitment of such Defaulting Lender pursuant
to Section 3.2(a);


 


(b)              
the Revolving Commitment and the Pro Rata Share of the then outstanding Obligations of such Defaulting Lender shall
not be included in determining whether all Lenders or the Required Lenders have taken or may take any action hereunder (including
any consent to any amendment or waiver pursuant to Section 11.4), provided that any waiver, amendment or modification
requiring the consent of all Lenders or each affected Lender which affects such Defaulting Lender disproportionately than other
affected Lenders shall require the consent of such Defaulting Lender;


 


(c)              
if any Letter of Credit Obligation exists at the time a Revolving Lender becomes a Defaulting Lender then:


 


(i)                
all or any part of the Letter of Credit Obligations shall be reallocated among the Revolving Lenders (other than
those that are also Defaulting Lenders) in accordance with their respective Pro Rata Share of Revolving Loans but only to the extent
(x) the sum of all Revolving Lenders’ (other than those that are also Defaulting Lenders) Pro Rata Share of the then
outstanding Obligations consisting of Revolving Loans plus such Defaulting Lender’s Letter of Credit Obligations does
not exceed the total of all Revolving Lenders’ (other than those that are also Defaulting Lenders) Commitments and (y) the
conditions set forth in Section 4.2 are satisfied at such time;


 


(ii)             
if the reallocation described in clause (i) above cannot, or can only partially, be effected, Borrowers
shall within three (3) Business Days following notice by Agent cash collateralize such Defaulting Lender’s pro rata share
of the Letter of Credit Obligations (after giving effect to any partial reallocation pursuant to clause (i) above)
in accordance with the procedures set forth in Section 2.3(h)(i) for so long as such Letter of Credit Obligation are
outstanding;


 


(iii)           
if Borrowers cash collateralize any portion of such Defaulting Lender’s pro rata share of the Letter of Credit
Obligations pursuant to Section 2.8(c), Borrowers shall not be required to pay any fees to such Defaulting Lender pursuant
to Section 3.2 with respect to such Defaulting Lender’s Letter of Credit Obligations during the period such Defaulting
Lender’s pro rata share of the Letter of Credit Obligations is cash collateralized;


 






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(iv)            
if the Letter of Credit Obligations of the non-Defaulting Lenders is reallocated pursuant to Section 2.8(c),
then the fees payable to the Revolving Lenders pursuant to Section 3.2 shall be adjusted in accordance with such non-Defaulting
Lenders’ Pro Rata Share; and


 


(v)              
if any Defaulting Lender’s Letter of Credit Obligations are neither cash collateralized nor reallocated pursuant
to Section 2.8(c), then, without prejudice to any rights or remedies of the Issuing Bank or any Lender hereunder, all
facility fees that otherwise would have been payable to such Defaulting Lender (solely with respect to the portion of such Defaulting
Lender’s Commitment that was utilized by such Letter of Credit Obligations) and letter of credit fees payable under Section 3.2
with respect to such Defaulting Lender’s pro rata share of the Letter of Credit Obligations shall be payable to the Issuing
Bank until such pro rata share of the Letter of Credit Obligations is cash collateralized and/or reallocated;


 


(d)              
the Issuing Bank shall not be required to issue, amend or increase any Letter of Credit, unless it is satisfied that
the related exposure will be 100% covered by the Commitments of the Revolving Lenders (other than those that are also Defaulting
Lenders) and/or cash collateral will be provided by Borrowers in accordance with Section 2.8(c), and participating
interests in any such newly issued or increased Letters of Credit shall be allocated among Revolving Lenders (other than those
that are also Defaulting Lenders) in a manner consistent with Section 2.8(c)(i) (and Defaulting Lenders shall not participate
therein);


 


(e)              
in the event and on the date that each of Agent, Borrowers and the Issuing Bank agrees that a Defaulting Lender has
adequately remedied all matters that caused such Lender to be a Defaulting Lender, then the Letter of Credit Obligations of the
other Revolving Lenders shall be readjusted to reflect the inclusion of such Revolving Lender’s Revolving Commitment and
on such date such Revolving Lender shall purchase at par such of the Revolving Loans and Letter of Credit Obligations of the other
Revolving Lenders as Agent shall determine may be necessary in order for such Revolving Lender to hold such Revolving Loans in
accordance with its Pro Rata Share of Revolving Loans; and


 


(f)               
Agent shall not be obligated to transfer to a Defaulting Lender any payments received by Agent for the Defaulting
Lender’s benefit, nor shall a Defaulting Lender be entitled to the sharing of any payments hereunder (including any principal,
interest or fees). Amounts payable to a Defaulting Lender shall instead be paid to or retained by Agent. Agent may hold and, in
its discretion, relend to a Borrower the amount of all such payments received or retained by it for the account of such Defaulting
Lender. The operation of this Section shall not be construed to increase or otherwise affect the Revolving Commitment of any Revolving
Lender, or relieve or excuse the performance by any Borrower or Guarantor of their duties and obligations hereunder.


 


2.9             
Prepayment of Loans.


 


(a)              
Borrowers shall have the right at any time and from time to time to prepay any Loan in whole or in part, subject
to prior notice in accordance with paragraph (b) of this Section;


 






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(b)              
Administrative Borrower shall notify Agent by telephone (confirmed by facsimile) of any prepayment hereunder (i)
in the case of prepayment of a Eurodollar Rate Loan, not later than 11:00 a.m., New York time, three Business Days before the date
of prepayment or (ii) in the case of prepayment of an ABR Loan, not later than 11:00 a.m., New York time, one Business Day before
the date of prepayment. Each such notice shall be irrevocable and shall specify the prepayment date and the principal amount of
each Loan or portion thereof to be prepaid. Promptly following receipt of any such notice relating to a Loan, Agent shall advise
the Lenders of the contents thereof. Each prepayment of the Revolving Loans shall be applied ratably to the Revolving Loans. Prepayments
shall be accompanied by accrued interest to the extent required by Section 3.1.


 


(c)              
In the event and on each occasion that any Net Proceeds are received by or on behalf of any Loan Party or any Subsidiary
of a Loan Party in respect of any Prepayment Event, then, subject to the Intercreditor Agreement, (A) the Administrative Borrower
shall promptly notify the Agent in writing of such Prepayment Event (including the amount of the estimated Net Proceeds to be received
by a Borrower or a Guarantor thereof) and (B) within five (5) Business Days (or immediately in the case of any issuance or incurrence
of Indebtedness or the issuance of Capital Stock, as the case may be) after receipt by any Borrower or Guarantor of any Net Proceeds
of such Prepayment Event, the Administrative Borrower shall deliver, or cause to be delivered, an amount equal to 100% of such
Net Proceeds to the Agent to, subject to the Intercreditor Agreement, prepay the Obligations and cash collateralize the LC Exposure
as set forth in Section 2.3(h); provided that any Net Proceeds attributable to the Term Loan Priority Collateral
shall be applied in accordance with the Term Loan Documents, and provided further, that the Loan Parties shall be permitted
to apply such Net Proceeds (or any portion thereof) from Events of Loss to replace, repair, restore or rebuild the assets subject
to an Event of Loss or to purchase or construct other assets useful in the business of the Loan Parties, provided that (i)
no Event of Default has occurred and is continuing and (ii) any such Net Proceeds arising from such Event of Loss not (x)
used to so replace, repair, restore or rebuild the assets subject to such Event of Loss, or to purchase or construct other assets
useful in the business of the Loan Parties following such Event of Loss, within 180 days after the receipt of such Net Proceeds,
or (y) committed to be used to so replace, repair, restore or rebuild the assets subject to such Event of Loss, or to purchase
or construct other assets useful in the business of the Loan Parties following such Event of Loss, within 180 days after the receipt
of such Net Proceeds, and subsequently used as so committed within 180 days after the end of such initial 180-day period, in each
case (as to clauses (x) and (y)), shall be applied to the prepayment of the Obligations and cash collateralize the LC Exposure
as set forth in Section 2.3(h) in an aggregate amount equal to 100% of such Net Proceeds.


 


2.10         
Loans and Borrowings.


 


(a)              
Each Loan shall be made as part of a Borrowing consisting of Loans of the same Type made by the Lenders ratably in
accordance with their respective Revolving Commitments. The failure of any Lender to make any Loan required to be made by it shall
not relieve any other Lender of its obligations hereunder; provided that the Commitments of the Lenders are several and
no Lender shall be responsible for any other Lender’s failure to make Loans as required.


 






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(b)              
Subject to Section 3.4, each Borrowing and shall be comprised entirely of ABR Loans or Eurodollar Rate
Loans as the Administrative Borrower may request in accordance herewith. Each Lender at its option may make any Eurodollar Rate
Loan by causing any domestic or foreign branch or Affiliate of such Lender to make such Loan (and in the case of an Affiliate,
the provisions of Sections 3.3, 3.4, 3.5 and 3.6 shall apply to such Affiliate to the same extent as
to such Lender); provided that any exercise of such option shall not affect the obligation of the Borrowers to repay such
Loan in accordance with the terms of this Agreement.


 


(c)              
At the commencement of each Interest Period for any Eurodollar Borrowing, such Borrowing shall be in an aggregate
amount that is an integral multiple of $500,000 and not less than $3,000,000. ABR Borrowings may be in any amount. Borrowings of
more than one Type may be outstanding at the same time; provided that there shall not at any time be more than a total of
six (6) Eurodollar Borrowings outstanding.


 


(d)              
Notwithstanding any other provision of this Agreement, the Administrative Borrower shall not be entitled to request,
or to elect to convert or continue, any Borrowing if the Interest Period requested with respect thereto would end after the Maturity
Date.


 


2.11         
Requests for Borrowings.


 


(a)              
To request a Borrowing, the Administrative Borrower shall notify the Agent of such request either in writing (delivered
by hand or fax) by delivering a Borrowing Request signed by a Authorized Officer of the Administrative Borrower or through Electronic
System if arrangements for doing so have been approved by the Agent not later than (a) in the case of a Eurodollar Borrowing, 2:00
p.m., New York time, three (3) Business Days before the date of the proposed Borrowing or (b) in the case of an ABR Borrowing,
1:00 p.m., New York time, on the date of the proposed Borrowing; provided that any such notice of an ABR Borrowing to finance
the reimbursement of an LC Disbursement as contemplated by Section 2.3(e) may be given not later than 10:00 a.m., New
York time, on the date of such proposed Borrowing. Each such Borrowing Request shall be irrevocable. Each such written (or if permitted,
telephonic) Borrowing Request shall specify the following information:


 


(i)                
the name of the applicable Borrower(s);


 


(ii)             
the aggregate amount of the requested Borrowing and a breakdown of the separate wires comprising such Borrowing;


 


(iii)           
the date of such Borrowing, which shall be a Business Day;


 


(iv)            
whether such Borrowing is to be an ABR Borrowing or a Eurodollar Borrowing; and


 


(v)              
in the case of a Eurodollar Borrowing, the initial Interest Period to be applicable thereto, which shall be a period
contemplated by the definition of the term “Interest Period.”


 


If no election as to the Type of Borrowing is
specified, then the requested Borrowing shall be an ABR Borrowing. If no Interest Period is specified with respect to any requested
Eurodollar Borrowing, then the applicable Borrower(s) shall be deemed to have selected an Interest Period of one month's duration.
Promptly following receipt of a Borrowing Request in accordance with this Section, the Agent shall advise each Lender of the details
thereof and of the amount of such Lender's Loan to be made as part of the requested Borrowing.


 






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2.12         
Interest Elections.


 


(a)              
Each Borrowing initially shall be of the Type specified in the applicable Borrowing Request and, in the case of a
Eurodollar Borrowing, shall have an initial Interest Period as specified in such Borrowing Request. Thereafter, the Administrative
Borrower may elect to convert such Borrowing to a different Type or to continue such Borrowing and, in the case of a Eurodollar
Borrowing, may elect Interest Periods therefor, all as provided in this Section. The Administrative Borrower may elect different
options with respect to different portions of the affected Borrowing, in which case each such portion shall be allocated ratably
among the Lenders holding the Loans comprising such Borrowing, and the Loans comprising each such portion shall be considered a
separate Borrowing.


 


(b)              
To make an election pursuant to this Section, the Administrative Borrower shall notify the Agent of such election
either in writing (delivered by hand or fax) by delivering an Interest Election Request signed by a Authorized Officer of the Administrative
Borrower or through Electronic System if arrangements for doing so have been approved by the Agent by the time that a Borrowing
Request would be required under Section 2.11 if the Borrowers were requesting a Borrowing of the Type resulting from such
election to be made on the effective date of such election. Each such Interest Election Request shall be irrevocable.


 


(c)              
Each written Interest Election Request (including requests submitted through Electronic System) shall specify the
following information:


 


(i)                
the name of the applicable Borrower and the Borrowing to which such Interest Election Request applies and, if different
options are being elected with respect to different portions thereof, the portions thereof to be allocated to each resulting Borrowing
(in which case the information to be specified pursuant to clauses (iii) and (iv) below shall be specified for each resulting Borrowing);


 


(ii)             
the effective date of the election made pursuant to such Interest Election Request, which shall be a Business Day;


 


(iii)           
whether the resulting Borrowing is to be an ABR Borrowing or a Eurodollar Borrowing; and


 


(iv)            
if the resulting Borrowing is a Eurodollar Borrowing, the Interest Period to be applicable thereto after giving effect
to such election, which shall be a period contemplated by the definition of the term “Interest Period”.


 


If any such Interest Election Request requests a Eurodollar Borrowing
but does not specify an Interest Period, then the Borrowers shall be deemed to have selected an Interest Period of one month's
duration.


 






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(d)              
Promptly following receipt of an Interest Election Request, the Agent shall advise each Lender of the details thereof
and of such Lender's portion of each resulting Borrowing.


 


(e)              
If the Administrative Borrower fails to deliver a timely Interest Election Request with respect to a Eurodollar Borrowing
prior to the end of the Interest Period applicable thereto, then, unless such Borrowing is repaid as provided herein, at the end
of such Interest Period such Borrowing shall be converted to an ABR Borrowing. Notwithstanding any contrary provision hereof, if
an Event of Default has occurred and is continuing and the Agent, at the request of the Required Lenders, so notifies the Administrative
Borrower, then, so long as an Event of Default is continuing (i) no outstanding Borrowing may be converted to or continued as a
Eurodollar Borrowing and (ii) unless repaid, each Eurodollar Borrowing shall be converted to an ABR Borrowing at the end of the
Interest Period applicable thereto.


 


		Section 3.	INTEREST AND FEES



 


3.1             
Interest Payments.


 


(a)              
The Loans comprising ABR Borrowings shall bear interest at the Alternate Base Rate plus the Applicable Margin.


 


(b)              
The Loans comprising each Eurodollar Borrowing shall bear interest at the Adjusted LIBO Rate for the Interest Period
in effect for such Borrowing plus the Applicable Margin.


 


(c)              
Notwithstanding the foregoing, (i) during the occurrence and continuance of an Event of Default, the Agent or the
Required Lenders may, at their option, by notice to the Administrative Borrower, declare that (A) all Loans shall bear interest
at 2% plus the rate otherwise applicable to such Loans as provided in the preceding paragraphs of this Section and (B) in the case
of any other amount outstanding hereunder, such amount shall accrue at 2% plus the rate applicable to such fee or other obligation
as provided hereunder and (ii) during the occurrence and continuance of an Event of Default described in Section 10.1(a),
Section 10.1(g) or Section 10.1(h), (A) all Loans shall bear interest at 2% plus the rate otherwise applicable
to such Loans as provided in the preceding paragraphs of this Section and (B) in the case of any other amount outstanding hereunder,
such amount shall accrue at 2% plus the rate applicable to such fee or other obligation as provided hereunder, in each case under
this clause (c) without presentment, demand, protest or other notice of any kind, all of which are hereby waived by each Borrower
and Guarantor for the period from and after the date of the occurrence of such Event of Default and for so long as such Event of
Default is continuing.


 


(d)              
Accrued interest on each Loan (for ABR Loans, accrued through the last day of the prior calendar month) shall be
payable in arrears on each Interest Payment Date for such Loan and upon termination of the Revolving Commitments; provided
that (i) interest accrued pursuant to paragraph (c) of this Section shall be payable on demand, (ii) in the event of any repayment
or prepayment of any Loan (other than a prepayment of an ABR Loan prior to the Maturity Date), accrued interest on the principal
amount repaid or prepaid shall be payable on the date of such repayment or prepayment and (iii) in the event of any conversion
of any Eurodollar Rate Loan prior to the end of the current Interest Period therefor, accrued interest on such Loan shall be payable
on the effective date of such conversion.


 






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(e)              
All interest hereunder shall be computed on the basis of a year of 360 days, except that interest computed by reference
to the Alternate Base Rate shall be computed on the basis of a year of 365 days (or 366 days in a leap year), and in each case
shall be payable for the actual number of days elapsed (including the first day but excluding the last day). The applicable Alternate
Base Rate, Adjusted LIBO Rate or LIBO Rate shall be determined by the Agent, and such determination shall be conclusive absent
manifest error.


 


3.2             
Fees.


 


(a)              
Borrowers shall pay to Agent, for the account of Revolving Lenders, monthly an unused line fee at a rate equal to
one-quarter percent (0.25%) per annum calculated upon the amount by which the Aggregate Revolving Commitment Amounts exceeds the
average daily principal balance of the outstanding Revolving Loans and Letters of Credit during the immediately preceding month
(or part thereof), in which case it shall be calculated on the basis of days actually elapsed during such month) while this Agreement
is in effect and for so long thereafter as any of the Obligations (other than indemnities and contingent Obligations which survive
the termination of this Agreement and the other Financing Agreements) are outstanding, which fee shall be payable on the first
day of each month in arrears.


 


(b)              
In the case of all Letters of Credit, Borrowers shall pay to Agent, for the account of Revolving Lenders, a fee at
a rate equal to Applicable Margin for Eurodollar Rate Loans (then in effect) per annum on the average daily maximum amount available
to be drawn under all of such Letters of Credit for the immediately preceding month (or part thereof), in which case it shall be
calculated on the basis of days actually elapsed during such month) payable in arrears as of the first day of each succeeding month,
computed for each day from the date of issuance to the date of expiration; except that Borrowers shall pay, at Agent’s option,
with notice, such fee at a rate two (2%) percent greater than the otherwise applicable rate on such average daily maximum amount
for: (i) the period from and after the date of termination or non-renewal of this Agreement until Revolving Lenders have received
full and final payment of all Obligations (other than contingent Obligations not yet accrued) notwithstanding entry of a judgment
against any Borrower or Guarantor and (ii) the period from and after the date of the occurrence of an Event of Default for so long
as such Event of Default is continuing. Such letter of credit fees shall be calculated on the basis of a three hundred sixty (360)
day year and actual days elapsed and the obligation of Borrowers to pay such fee shall survive the termination or non-renewal of
this Agreement. In addition to the letter of credit fees provided above, Borrowers shall pay to Issuing Bank for its own account
(without sharing with Lenders), a letter of credit fronting fee equal to one-quarter of one (1/4%) percent (on a per annum basis)
calculated upon the daily outstanding balance of the Letter of Credit Obligations for the immediately preceding month (or part
thereof), payable in arrears as of the first day of each succeeding month and negotiation fees agreed to by Borrowers and Issuing
Bank from time to time and the customary charges from time to time of Issuing Bank with respect to the issuance, amendment, transfer,
administration, cancellation and conversion of, and drawings under, such Letters of Credit.


 






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(c)              
Borrowers shall pay to Agent the other fees and amounts set forth in the Fee Letter in the amounts and at the times
specified therein. To the extent payment in full of the applicable fee is received by Agent from Borrowers on or about the date
hereof, Agent shall pay to each Lender its share of such fees in accordance with the terms of the arrangements of Agent with such
Lender.


 


3.3             
Increased Costs.


 


(a)              
If any Change in Law shall:


 


(i)                
impose, modify or deem applicable any reserve, special deposit, liquidity or similar requirement (including any compulsory
loan requirement, insurance charge or other assessment) against assets of, deposits with or for the account of, or credit extended
by, any Lender (except any such reserve requirement reflected in the Adjusted LIBO Rate) or the Issuing Bank;


 


(ii)             
impose on any Lender or the Issuing Bank or the London interbank market any other condition, cost or expense (other
than Taxes) affecting this Agreement or Loans made by such Lender or any Letter of Credit or participation therein; or


 


(iii)           
subject any Recipient to any Taxes (other than (A) Indemnified Taxes covered by Section 3.5 or (B) Excluded
Taxes) on its loans, loan principal, letters of credit, commitments, or other obligations, or its deposits, reserves, other liabilities
or capital attributable thereto;


 


and the result of any of the foregoing shall be to increase the
cost to such Lender or such other Recipient of making, continuing, converting into or maintaining any Loan (or of maintaining its
obligation to make any such Loan) or to increase the cost to such Lender, the Issuing Bank or such other Recipient of participating
in, issuing or maintaining any Letter of Credit or to reduce the amount of any sum received or receivable by such Lender, the Issuing
Bank or such other Recipient hereunder (whether of principal, interest or otherwise), then the Borrowers will pay to such Lender,
the Issuing Bank or such other Recipient, as the case may be, such additional amount or amounts as will compensate such Lender,
the Issuing Bank or such other Recipient, as the case may be, for such additional costs incurred or reduction suffered.


 


(b)              
If any Lender or the Issuing Bank determines that any Change in Law regarding capital or liquidity requirements has
or would have the effect of reducing the rate of return on such Lender's or the Issuing Bank's capital or on the capital of such
Lender's or the Issuing Bank's holding company, if any, as a consequence of this Agreement, the Commitments of, or the Loans made
by, or participations in Letters of Credit held by, such Lender, or the Letters of Credit issued by the Issuing Bank, to a level
below that which such Lender or the Issuing Bank or such Lender's or the Issuing Bank's holding company could have achieved but
for such Change in Law (taking into consideration such Lender's or the Issuing Bank's policies and the policies of such Lender's
or the Issuing Bank's holding company with respect to capital adequacy and liquidity), then from time to time the Borrowers will
pay to such Lender or the Issuing Bank, as the case may be, such additional amount or amounts as will compensate such Lender or
the Issuing Bank or such Lender's or the Issuing Bank's holding company for any such reduction suffered.


 






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(c)              
A certificate of a Lender or the Issuing Bank setting forth the amount or amounts necessary to compensate such Lender
or the Issuing Bank or its holding company, as the case may be, as specified in paragraph (a) or (b) of this Section shall
be delivered to the Agent and shall be conclusive absent manifest error. The Borrowers shall pay such Lender or the Issuing Bank,
as the case may be, the amount shown as due on any such certificate within ten (10) days after receipt thereof.


 


(d)              
Failure or delay on the part of any Lender or the Issuing Bank to demand compensation pursuant to this Section shall
not constitute a waiver of such Lender's or the Issuing Bank's right to demand such compensation; provided that the Borrowers
shall not be required to compensate a Lender or the Issuing Bank pursuant to this Section for any increased costs or reductions
incurred more than 270 days prior to the date that such Lender or the Issuing Bank, as the case may be, notifies the Administrative
Borrower of the Change in Law giving rise to such increased costs or reductions and of such Lender's or the Issuing Bank's intention
to claim compensation therefor; provided further that, if the Change in Law giving rise to such increased costs or reductions
is retroactive, then the 270-day period referred to above shall be extended to include the period of retroactive effect thereof.


 


3.4             
Alternate Rate of Interest; Illegality.


 


(a)              
If prior to the commencement of any Interest Period for a Eurodollar Borrowing:


 


(i)                
the Agent determines (which determination shall be conclusive and binding absent manifest error) that adequate and
reasonable means do not exist for ascertaining the Adjusted LIBO Rate or the LIBO Rate, as applicable (including, without limitation,
by means of an Interpolated Rate or because the LIBO Screen Rate is not available or published on a current basis) for such Interest
Period; or


 


(ii)             
the Agent is advised by the Required Lenders that the Adjusted LIBO Rate or the LIBO Rate, as applicable, for such
Interest Period will not adequately and fairly reflect the cost to such Lenders (or Lender) of making or maintaining their Loans
(or its Loan) included in such Borrowing for such Interest Period;


 


then the Agent shall give notice thereof to the
Administrative Borrower and the Lenders through Electronic System as provided in Section 13.3 as promptly as practicable
thereafter and, until the Agent notifies the Borrower and the Lenders that the circumstances giving rise to such notice no longer
exist, (A) any Interest Election Request that requests the conversion of any Borrowing to, or continuation of any Borrowing as,
a Eurodollar Borrowing shall be ineffective and any such Eurodollar Borrowing shall be repaid or converted into an ABR Borrowing
on the last day of the then current Interest Period applicable thereto, and (B) if any Borrowing Request requests a Eurodollar
Borrowing, such Borrowing shall be made as an ABR Borrowing.


 


(b)              
If any Lender determines that any Requirement of Law has made it unlawful, or if any Governmental Authority has asserted
that it is unlawful, for any Lender or its applicable lending office to make, maintain, fund or continue any Eurodollar Borrowing,
or any Governmental Authority has imposed material restrictions on the authority of such Lender to purchase or sell, or to take
deposits of, dollars in the London interbank market, then, on notice thereof by such Lender to the Administrative Borrower through
the Agent, any obligations of such Lender to make, maintain, fund or continue Eurodollar Rate Loans or to convert ABR Borrowings
to Eurodollar Borrowings will be suspended until such Lender notifies the Agent and the Administrative Borrower that the circumstances
giving rise to such determination no longer exist. Upon receipt of such notice, the Borrowers will upon demand from such Lender
(with a copy to the Agent), either convert or prepay all Eurodollar Borrowings of such Lender to ABR Borrowings, either on the
last day of the Interest Period therefor, if such Lender may lawfully continue to maintain such Eurodollar Borrowings to such day,
or immediately, if such Lender may not lawfully continue to maintain such Loans. Upon any such conversion or prepayment, the Borrowers
will also pay accrued interest on the amount so converted or prepaid.


 






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(c)              
If at any time the Agent determines (which determination shall be conclusive absent manifest error) that (i) the
circumstances set forth in clause (a)(i) have arisen and such circumstances are unlikely to be temporary or (ii) the circumstances
set forth in clause (a)(i) have not arisen but either (w) the supervisor for the administrator of the LIBO Screen Rate has made
a public statement that the administrator of the LIBO Screen Rate is insolvent (and there is no successor administrator that will
continue publication of the LIBO Screen Rate), (x) the administrator of the LIBO Screen Rate has made a public statement identifying
a specific date after which the LIBO Screen Rate will permanently or indefinitely cease to be published by it (and there is no
successor administrator that will continue publication of the LIBO Screen Rate), (y) the supervisor for the administrator of the
LIBO Screen Rate has made a public statement identifying a specific date after which the LIBO Screen Rate will permanently or indefinitely
cease to be published or (z) the supervisor for the administrator of the LIBO Screen Rate or a Governmental Authority having jurisdiction
over the Agent has made a public statement identifying a specific date after which the LIBO Screen Rate may no longer be used for
determining interest rates for loans, then the Agent and the Administrative Borrower shall endeavor to establish an alternate rate
of interest to the LIBO Rate that gives due consideration to the then prevailing market convention for determining a rate of interest
for syndicated loans in the United States at such time, and shall enter into an amendment to this Agreement to reflect such alternate
rate of interest and such other related changes to this Agreement as may be applicable (but for the avoidance of doubt, such related
changes shall not include a reduction of the Applicable Margin). Notwithstanding anything to the contrary in Section 9.02, such
amendment shall become effective without any further action or consent of any other party to this Agreement so long as the Agent
shall not have received, within five (5) Business Days of the date notice of such alternate rate of interest is provided to the
Lenders, a written notice from the Required Lenders stating that such Required Lenders object to such amendment. Until an alternate
rate of interest shall be determined in accordance with this clause (c) (but, in the case of the circumstances described in clause
(ii)(w), clause (ii)(x) or clause (ii)(y) of the first sentence of this Section 3.4(c), only to the extent the LIBO Screen
Rate for such Interest Period is not available or published at such time on a current basis), (x) any Interest Election Request
that requests the conversion of any Borrowing to, or continuation of any Borrowing as, a Eurodollar Borrowing shall be ineffective
and any such Eurodollar Borrowing shall be repaid or converted into an ABR Borrowing on the last day of the then current Interest
Period applicable thereto, and (y) if any Borrowing Request requests a Eurodollar Borrowing, such Borrowing shall be made as an
ABR Borrowing; provided that, if such alternate rate of interest shall be less than zero, such rate shall be deemed to be
zero for the purposes of this Agreement.


 






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3.5             
Withholding of Taxes; Gross-Up.


 


(a)              
Payment Free of Taxes. Any and all payments by or on account of any obligation of any Loan Party under any
Financing Agreement shall be made without deduction or withholding for any Taxes, except as required by applicable law. If any
applicable law (as determined in the good faith discretion of an applicable withholding agent) requires the deduction or withholding
of any Tax from any such payment by a withholding agent, then the applicable withholding agent shall be entitled to make such deduction
or withholding and shall timely pay the full amount deducted or withheld to the relevant Governmental Authority in accordance with
applicable law and, if such Tax is an Indemnified Tax, then the sum payable by the applicable Loan Party shall be increased as
necessary so that after such deduction or withholding has been made (including such deductions and withholdings applicable to additional
sums payable under this Section 3.5) the applicable Recipient receives an amount equal to the sum it would have received
had no such deduction or withholding been made.


 


(b)              
Payment of Other Taxes by the Loan Parties. The Loan Parties shall timely pay to the relevant Governmental
Authority in accordance with applicable law, or at the option of the Agent timely reimburse it for, Other Taxes.


 


(c)              
Evidence of Payment. As soon as practicable after any payment of Taxes by any Loan Party to a Governmental
Authority pursuant to this Section 3.5, such Loan Party shall deliver to the Agent the original or a certified copy of a
receipt issued by such Governmental Authority evidencing such payment, a copy of the return reporting such payment or other evidence
of such payment reasonably satisfactory to the Agent.


 


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


 


(e)              
Indemnification by the Lenders. Each Lender shall severally indemnify the Agent, within ten (10) days after
demand therefor, for (i) any Indemnified Taxes attributable to such Lender (but only to the extent that any Loan Party has not
already indemnified the Agent for such Indemnified Taxes and without limiting the obligation of the Loan Parties to do so) and
(ii) any Excluded Taxes attributable to such Lender, in each case, that are payable or paid by the Agent in connection with any
Financing Agreement, and any reasonable expenses arising therefrom or with respect thereto, whether or not such Taxes were correctly
or legally imposed or asserted by the relevant Governmental Authority. A certificate as to the amount of such payment or liability
delivered to any Lender by the Agent shall be conclusive absent manifest error. Each Lender hereby authorizes the Agent to setoff
and apply any and all amounts at any time owing to such Lender under any Financing Agreement or otherwise payable by the Agent
to such Lender from any other source against any amount due to the Agent under this paragraph (e).


 






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(f)               
Status of Lenders.


 


(i)                
Any Lender that is entitled to an exemption from or reduction of withholding Tax with respect to payments made under
any Financing Agreement shall deliver to the Administrative Borrower and the Agent, at the time or times reasonably requested by
the Administrative Borrower or the Agent, such properly completed and executed documentation reasonably requested by the Administrative
Borrower or the Agent as will permit such payments to be made without withholding or at a reduced rate of withholding. In addition,
any Lender, if reasonably requested by the Administrative Borrower or the Agent, shall deliver such other documentation prescribed
by applicable law reasonably requested by the Administrative Borrower or the Agent as will enable the Borrowers or the Agent to
determine whether or not such Lender is subject to backup withholding or information reporting requirements. Notwithstanding anything
to the contrary in the preceding two sentences, the completion, execution and submission of such documentation (other than such
documentation set forth in Section 3.5(f)(ii)(A), (ii)(B) and (ii)(D) below) shall not be required if in the
Lender's reasonable judgment such completion, execution or submission would subject such Lender to any material unreimbursed cost
or expense or would materially prejudice the legal or commercial position of such Lender.


 


(ii)             
Without limiting the generality of the foregoing,


 


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


 


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


 


(1)              
in the case of a Foreign Lender claiming the benefits of an income tax treaty to which the United States is a party
(x) with respect to payments of interest under any Financing Agreement, an executed copy of IRS Form W-8BEN or IRS Form W-8BEN-E,
as applicable, establishing an exemption from, or reduction of, U.S. federal withholding Tax pursuant to the “interest”
article of such tax treaty and (y) with respect to any other applicable payments under any Financing Agreement, IRS Form W-8BEN
or IRS Form W-8BEN-E, as applicable, establishing an exemption from, or reduction of, U.S. federal withholding Tax pursuant to
the “business profits” or “other income” article of such tax treaty;


 






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(2)              
in the case of a Foreign Lender claiming that its extension of credit will generate U.S. effectively connected income,
an executed copy of IRS Form W-8ECI;


 


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


 


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


 


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


 


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


 






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


 


(g)              
Treatment of Certain Refunds. If any party determines, in its sole discretion exercised in good faith, that
it has received a refund of any Taxes as to which it has been indemnified pursuant to this Section (including by the payment of
additional amounts pursuant to this Section), it shall pay to the indemnifying party an amount equal to such refund (but only to
the extent of indemnity payments made under this Section with respect to the Taxes giving rise to such refund), net of all out-of-pocket
expenses (including Taxes) of such indemnified party and without interest (other than any interest paid by the relevant Governmental
Authority with respect to such refund). Such indemnifying party, upon the request of such indemnified party, shall repay to such
indemnified party the amount paid over pursuant to this paragraph (g) (plus any penalties, interest or other charges imposed by
the relevant Governmental Authority) in the event that such indemnified party is required to repay such refund to such Governmental
Authority. Notwithstanding anything to the contrary in this paragraph (g), in no event will the indemnified party be required to
pay any amount to an indemnifying party pursuant to this paragraph (g) the payment of which would place the indemnified party in
a less favorable net after-Tax position than the indemnified party would have been in if the Tax subject to indemnification and
giving rise to such refund had not been deducted, withheld or otherwise imposed and the indemnification payments or additional
amounts giving rise to such refund had never been paid. This paragraph (g) shall not be construed to require any indemnified party
to make available its Tax returns (or any other information relating to its Taxes that it deems confidential) to the indemnifying
party or any other Person.


 


(h)              
Survival. Each party's obligations under this Section shall survive the resignation or replacement of the
Agent or any assignment of rights by, or the replacement of, a Lender, the termination of the Commitments and the repayment, satisfaction
or discharge of all obligations under any Financing Agreement (including the Payment in Full of the Obligations).


 


(i)                
Defined Terms. For purposes of this Section 3.5, the term “Lender” includes any Issuing
Bank.


 


(j)                
FATCA Status. For purposes of determining withholding Taxes imposed under FATCA under this Agreement, each
Borrower and Agent shall treat (and the Lenders hereby authorize the Agent to treat) each Loan and this Agreement as not qualifying
as a “grandfathered obligation” within the meaning of Section 1.1471-2(b)(2)(i) of the United States Treasury Regulations.


 


3.6             
Mitigation of Obligations; Replacement of Lenders.


 


(a)              
If any Lender requests compensation under Section 3.3, or if the Borrowers are required to pay any Indemnified
Taxes or additional amounts to any Lender or any Governmental Authority for the account of any Lender pursuant to Section 3.5,
then such Lender shall use reasonable efforts to designate a different lending office for funding or booking its Loans hereunder
or to assign its rights and obligations hereunder to another of its offices, branches or affiliates, if, in the judgment of such
Lender, such designation or assignment (i) would eliminate or reduce amounts payable pursuant to Section 3.3 or 3.5,
as the case may be, in the future and (ii) would not subject such Lender to any unreimbursed cost or expense and would not otherwise
be disadvantageous to such Lender. The Borrowers hereby agree to pay all reasonable costs and expenses incurred by any Lender in
connection with any such designation or assignment.


 






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(b)              
If any Lender requests compensation under Section 3.3, or if the Borrowers are required to pay any
Indemnified Taxes or additional amounts to any Lender or any Governmental Authority for the account of any Lender pursuant to Section 3.5,
or if any Lender becomes a Defaulting Lender, then the Borrowers may, at their sole expense and effort, upon notice to such Lender
and the Agent, require such Lender to assign and delegate, without recourse (in accordance with and subject to the restrictions
contained in Section 13.7), all its interests, rights (other than its existing rights to payments pursuant to Section
3.3 or 3.5) and obligations under this Agreement and other Financing Agreements to an assignee that shall assume such
obligations (which assignee may be another Lender, if a Lender accepts such assignment); provided that (i) the Borrowers
shall have received the prior written consent of the Agent (and in circumstances where its consent would be required under Section
13.7, the Issuing Bank), which consent shall not unreasonably be withheld, (ii) such Lender shall have received payment of
an amount equal to the outstanding principal of its Loans and participations in LC Disbursements, accrued interest thereon, accrued
fees and all other amounts payable to it hereunder, from the assignee (to the extent of such outstanding principal and accrued
interest and fees) or the Borrowers (in the case of all other amounts) and (iii) in the case of any such assignment resulting
from a claim for compensation under Section 3.3 or payments required to be made pursuant to Section 3.5, such assignment
will result in a reduction in such compensation or payments. A Lender shall not be required to make any such assignment and delegation
if, prior thereto, as a result of a waiver by such Lender or otherwise, the circumstances entitling the Borrowers to require such
assignment and delegation cease to apply. Each party hereto agrees that (x) an assignment required pursuant to this paragraph may
be effected pursuant to an Assignment and Assumption executed by the Administrative Borrower, the Agent and the assignee, and (y)
the Lender required to make such assignment need not be a party thereto in order for such assignment to be effective and shall
be deemed to have consented to an be bound by the terms thereof; provided that, following the effectiveness of any such
assignment, the other parties to such assignment agree to execute and deliver such documents necessary to evidence such assignment
as reasonably requested by the applicable Lender, provided that any such documents shall be without recourse to or warranty
by the parties thereto.


 


3.7             
Break Funding Payments. In the event of (a) the payment of any principal of any Eurodollar Rate Loan other
than on the last day of an Interest Period applicable thereto (including as a result of an Event of Default or as a result of any
prepayment pursuant to Section 2.1(d), 2.4(e) or 2.9, (b) the conversion of any Eurodollar Rate Loan other
than on the last day of the Interest Period applicable thereto, (c) the failure to borrow, convert, continue or prepay any Eurodollar
Rate Loan on the date specified in any notice delivered pursuant hereto, or (d) the assignment of any Eurodollar Rate Loan
other than on the last day of the Interest Period applicable thereto as a result of a request by the Administrative Borrower pursuant
to Section 3.6, then, in any such event, the Borrowers shall compensate each Lender for the loss, cost and expense
attributable to such event. In the case of a Eurodollar Rate Loan, such loss, cost or expense to any Lender shall be deemed to
include an amount determined by such Lender to be the excess, if any, of (i) the amount of interest which would have accrued on
the principal amount of such Eurodollar Rate Loan had such event not occurred, at the Adjusted LIBO Rate that would have been applicable
to such Eurodollar Rate Loan, for the period from the date of such event to the last day of the then current Interest Period therefor
(or, in the case of a failure to borrow, convert or continue, for the period that would have been the Interest Period for such
Eurodollar Rate Loan), over (ii) the amount of interest which would accrue on such principal amount for such period at the interest
rate which such Lender would bid were it to bid, at the commencement of such period, for dollar deposits of a comparable amount
and period from other banks in the eurodollar market. A certificate of any Lender setting forth any amount or amounts that such
Lender is entitled to receive pursuant to this Section shall be delivered to the Administrative Borrower and shall be conclusive
absent manifest error. The Borrowers shall pay such Lender the amount shown as due on any such certificate within ten (10) days
after receipt thereof.


 



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		Section 4.	CONDITIONS PRECEDENT



 


4.1             
Conditions Precedent to Effectiveness. The effectiveness of this Agreement and the obligation of Lenders to
make and/or continue to make Loans under this Agreement and of the Issuing Bank to issue Letters of Credit hereunder is subject
to the satisfaction of, or waiver (in accordance with Section 11.4) of, each of the following conditions precedent:


 


(a)              
Counterparts. Agent (or its counsel) shall have been provided with executed counterparts of this Agreement
duly executed and delivered by the Loan Parties and the Lenders.


 


(b)              
Officer’s Certificates. Agent shall have received (i) a certificate of each Loan Party (including
Parent), dated as of the Closing Date and executed by its secretary, assistant secretary or other appropriate officer, which shall
(ii) certify the resolutions of its board of directors, members or other governing body authorizing the execution, delivery
and performance of this Agreement and the other Financing Agreements to which it is a party, (iii) identify by name and title
and bear the signatures of the Authorized Officers and any other officers of such Loan Party authorized to sign the Financing Agreements
to which it is a party, and (iv) contain appropriate attachments, including the certificate or articles of incorporation or
formation (or equivalent constitutional documents) of each Loan Party certified by the relevant authority of the jurisdiction of
organization of such Loan Party and a true and correct copy of its bylaws or operating, limited liability company or partnership
agreement (or equivalent governing documents), and (v) a good standing certificate or equivalent certification for each Loan
Party from its jurisdiction of organization as of a recent date.


 


(c)              
[Reserved].


 


(d)              
[Reserved].


 


(e)              
Information Certificate. Agent shall have received an executed copy of an updated Information Certificate
with respect to each of the Loan Parties and their Subsidiaries dated as of the Closing Date.


 


(f)               
Closing Certificate. Agent shall have received a duly executed certificate from an Authorized Officer of the
Administrative Borrower certifying that (i) the conditions precedent set forth in clauses (k), (m), (p)
and (q) of this Section 4.1 have been satisfied as of the Closing Date, and (ii) attached to such certificate
is a true, correct and complete copy of the Valor Merger Agreement (which shall not have been amended, changed, modified, supplemented
or had its terms waived in a manner other than as set forth in clause (p) of this Section 4.1) and all amendments,
exhibits and schedules thereto and other material agreements and instruments executed and delivered in connection therewith.


 






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(g)              
Solvency Certificate. Agent shall have received a duly executed certificate from an Authorized Officer of
the Administrative Borrower certifying that the Loan Parties, taken as a whole, are Solvent and will continue to be Solvent immediately
after giving effect to this Agreement, the Valor Merger, the incurrence of the Term Loan Obligations, the payment of all fees and
expenses to be paid by the Loan Parties in connection with any of the foregoing, and the other transactions to be consummated in
connection with the foregoing (referred to in this Section 4.1, collectively, as the “Valor Merger Transactions”).


 


(h)              
Opinions of Counsel. Agent shall have received customary written opinions of (i) Willkie Farr & Gallagher
LLP, special counsel to the Loan Parties, and (ii) Foley & Lardner LLP, special Florida counsel to the Loan Parties, addressed,
in each case, to Agent, the Issuing Bank, the Lenders and the other holders of the Obligations.


 


(i)                
Fees and Expenses. The Lenders and Agent shall have received all fees required to be paid, including fees
payable pursuant to the Fee Letter, and all costs and expenses required to be paid by the Loan Parties pursuant to Section 9.22
for which invoices have been presented to the Administrative Borrower at least three (3) Business Days prior to the Closing
Date (including, without limitation, the reasonable fees, disbursements and other charges of Vinson & Elkins LLP, counsel to
Agent), on or before the Closing Date.


 


(j)                
Lien Searches. Agent shall have received the results of a recent lien search in each jurisdiction where the
Loan Parties are organized and where the assets of the Loan Parties are located, and such search shall reveal no liens on any of
the assets of the Loan Parties except for liens permitted by Section 9.8, or discharged on or prior to the Closing
Date pursuant to a pay-off letter or other documentation satisfactory to Agent.


 


(k)              
Merger Agreement Representations and Specified Representations. The Acquisition Agreement Representations
and the Specified Representations (each as defined in the 2019 Commitment Letter) shall be true and correct in all material respects
(without duplication of any materiality qualifier applicable thereto) on and as of the Closing Date.


 


(l)                
[Reserved].


 


(m)            
Closing Liquidity. Agent shall have received a duly completed written calculation in form and substance reasonably
acceptable to the Agent, dated as of Closing Date, certified by an Authorized Officer of the Administrative Borrower, which shall
evidence that after giving effect to all Valor Merger Transactions and the other transactions contemplated to be effective on the
Closing Date, including all Borrowings to be made on the Closing Date, on a pro forma basis, Liquidity shall not be less than $25,000,000.


 






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(n)              
Term Loan Facility. Agent shall have received (a) evidence reasonably satisfactory to it that (i) each
of the conditions precedent (other than the effectiveness of this Agreement) for the effectiveness of the Term Loan Agreement has
been, or contemporaneously with the effectiveness of this Agreement will be, satisfied or waived and (ii) substantially contemporaneously
with the effectiveness of the Term Loan Agreement the Lenders (as defined in the Term Loan Agreement) will fund to the Borrowers
loan proceeds in an aggregate gross principal amount equal to $70,000,000 pursuant to the terms of the Term Loan Agreement and
(b) executed copies of the Term Loan Agreement and all material Term Loan Documents, each of which shall be in form and substance
reasonably satisfactory to Agent.


 


(o)              
Pledged Capital Stock; Stock Powers; Pledged Notes. The Term Loan Agent shall have received (i) if applicable,
the certificates representing the Capital Stock pledged pursuant to the Pledge Agreement, together with an undated stock power
for each such certificate executed in blank by an Authorized Officer of the pledgor thereof and (ii) each promissory note
(if any) pledged to Agent pursuant to this Agreement, endorsed (without recourse) in blank (or accompanied by an executed transfer
form in blank) by the pledgor thereof.


 


(p)              
The Valor Merger. The Valor Merger shall have been, or shall substantially concurrently with the effectiveness
of this Agreement be, consummated in accordance with the terms of the Valor Merger Agreement as in effect on August 7, 2019
without giving effect to any amendment (other than the First Merger Agreement Amendment), change, modification, supplement or waiver
of any provision thereof, in each case, in any manner that is materially adverse to the interests of the Lenders and Agent without
the prior written consent (not to be unreasonably withheld, delayed or conditioned) of the Lenders and Agent (it being understood
that (i) any increase in the consideration for the Valor Merger shall not be deemed to be materially adverse to the interests
of the Lenders and Agent so long as such increase in consideration (A) is pursuant to any purchase price or similar adjustment
provisions set forth in the Valor Merger Agreement as in effect on August 7, 2019 or (B) is not funded with additional
Indebtedness, (ii) the following decreases in the consideration for the Valor Merger shall not be deemed to be materially
adverse to the interests of the Lenders and Agent: (A) decreases pursuant to any purchase price or similar adjustment provisions
set forth in the Valor Merger Agreement as in effect on August 7, 2019 and (B) decreases to the extent they are applied
to reduce the amount of Indebtedness issued under the Term Loan Agreement and the equity contribution described in clause (v)
of this Section 4.1 on a pro rata basis, (iii) any change in third party beneficiary rights applicable to the Lenders
or Agent or in the governing law without the prior written consent of the Lenders and Agent shall be deemed to be materially adverse
to the interests of the Lenders and Agent, and (iv) any modification to the definition of “Company Material Adverse
Effect” (as defined in the Valor Merger Agreement as in effect on August 7, 2019) without the prior written consent
of the Agent shall be deemed to be materially adverse to the interests of the Lenders and Agent).


 


(q)              
No Company Material Adverse Effect. No “Company Material Adverse Effect” (as defined in the Valor
Merger Agreement as in effect on August 7, 2019) shall have occurred since the date of the Valor Merger Agreement.


 


(r)               
Indebtedness. No Loan Party shall have any outstanding Indebtedness for borrowed money other than Indebtedness
permitted under Section 9.9.


 






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(s)               
“Know Your Customer”; USA PATRIOT ACT. (i) Agent and the Lenders shall have received, at
least three (3) Business Days prior to the Closing Date, all documentation and other information regarding the Loan Parties
requested in connection with applicable “know your customer” and anti-money laundering rules and regulations, including
the USA PATRIOT ACT, to the extent reasonably requested in writing of the Loan Parties at least ten (10) Business Days prior to
the Closing Date and (ii) to the extent any Loan Party qualifies as a “legal entity customer” under the Beneficial
Ownership Regulation, at least three (3) Business Days prior to the Closing Date, any Lender that has requested, a Beneficial
Ownership Certification in relation to each Loan Party shall have received such Beneficial Ownership Certification.


 


(t)                
Intercreditor Agreement. Agent shall have received a copy of the Intercreditor Agreement executed by the Term
Loan Agent and the Loan Parties and which shall be in form and substance reasonably satisfactory to Agent.


 


(u)              
Amended and Restated Guaranty. Agent shall have received a Guaranty in form and substance reasonably satisfactory
to Agent and executed by each of the Loan Parties.


 


(v)              
Equity Contribution. Agent shall have received evidence satisfactory to it that Ultimate Parent and/or the
Permitted Holders shall have contributed, directly or indirectly, cash equity contributions to Parent and its Subsidiaries (in
the form of (i) common equity or (ii) pay-in-kind preferred equity reasonably satisfactory to Agent) in an aggregate
amount of not less than $30,000,000 (the “Closing Date Equity Contribution”).


 


(w)            
Borrowing Notice. Agent shall have received a Borrowing Request executed by an Authorized Officer of the Administrative
Borrower in accordance with Section 2.11 with respect to any Borrowings to be made on the Closing Date.


 


Notwithstanding anything in this Section 4.1 to the contrary,
the Borrowers shall be deemed to have made all representations and warranties herein and the other Financing Agreements on the
Closing Date.


 


4.2             
Conditions Precedent to All Loans and Letters of Credit. The obligation of Lenders to make the Loans (other
than the initial Loans to be made on the Closing Date, or of Issuing Bank to issue any Letter of Credit, including the initial
Letters of Credit, is subject to the further satisfaction of, or waiver of, immediately prior to or concurrently with the making
of each such Loan or the issuance of such Letter of Credit of each of the following conditions precedent:


 


(a)              
all representations and warranties contained herein and in the other Financing Agreements shall be true and correct
in all material respects with the same effect as though such representations and warranties had been made on and as of the date
of the making of each such Loan or providing each such Letter of Credit and after giving effect thereto, except to the extent that
such representations and warranties expressly relate solely to an earlier date (in which case such representations and warranties
shall have been true and accurate on and as of such earlier date);


 


(b)              
no Default or Event of Default shall exist or have occurred and be continuing on and as of the date of the making
of such Loan or providing each such Letter of Credit and immediately after giving effect thereto; and


 






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(c)              
after giving effect to any Revolving Loan or the issuance of any Letter of Credit, Excess Availability is not less
than zero;


 


Each Loan made after the Closing Date and each issuance, increase,
renewal or extension (other than automatic renewals and extensions of evergreen Letters of Credit) of a Letter of Credit shall
be deemed to constitute a representation and warranty by Borrowers on the date thereof as to the matters specified in paragraphs (a),
(b), and (c) of this Section.


 


		Section 5.	GRANT AND PERFECTION OF SECURITY INTEREST



 


5.1             
Grant of Security Interest. To secure payment and performance of all Obligations, each Borrower and Guarantor,
including Parent, hereby grants to Agent, for itself and the benefit of the Secured Parties, a continuing security interest in,
a lien upon, and a right of set off against, as security, all of the following personal property and fixtures, and interests in
personal property and fixtures, of each Borrower and Guarantor, whether now owned or hereafter acquired or existing, and wherever
located (together with all other collateral security for the Obligations at any time granted to or held or acquired by Agent or
any Secured Party, collectively, the “Collateral”), including:


 


(a)              
all Accounts;


 


(b)              
all General Intangibles;


 


(c)              
all Intellectual Property and all rights to registration of any domain name;


 


(d)              
all Goods, including but not limited to, Inventory and Equipment;


 


(e)              
all Chattel Paper, including, all tangible and electronic Chattel Paper;


 


(f)               
all Instruments, including, all promissory notes;


 


(g)              
all Documents;


 


(h)              
all Deposit Accounts;


 


(i)                
all letters of credit, banker’s acceptances and similar instruments and including all Letter-of-Credit Rights;


 


(j)                
all Supporting Obligations and all present and future liens, security interests, rights, remedies, title and interest
in, to and in respect of Receivables and other Collateral, including (i) rights and remedies under or relating to guaranties, contracts
of suretyship, letters of credit and credit and other insurance related to the Collateral, (ii) rights of stoppage in transit,
replevin, repossession, reclamation and other rights and remedies of an unpaid vendor, lienor or secured party, (iii) Goods described
in invoices, documents, contracts or instruments with respect to, or otherwise representing or evidencing, Receivables or other
Collateral, including returned, repossessed and reclaimed Goods, and (iv) deposits by and property of Account Debtors or other
Persons securing the obligations of Account Debtors;


 






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(k)              
all (i) Investment Property (including, but not limited to, Securities, whether certificated or uncertificated, Securities
accounts, Security entitlements, commodity contracts or commodity accounts) and (ii) monies, credit balances, deposits and other
property of any Borrower or Guarantor now or hereafter held or received by or in transit to Agent, any Lender or its Affiliates
or at any other depository or other institution from or for the account of any Borrower or Guarantor, whether for pledge, custody,
transmission, collection or otherwise;


 


(l)                
all commercial tort claims, including, those identified in Schedule 5.2(g) hereto;


 


(m)            
to the extent not otherwise described above, all Receivables;


 


(n)              
all Records; and


 


(o)              
all accessions to, substitutions for and replacements, products and proceeds of the foregoing, in any form, including
insurance proceeds and all claims against third parties for loss or damage to or destruction of or other involuntary conversion
of any kind or nature of any or all of the other Collateral.


 


Notwithstanding anything herein to the contrary,
in no event shall the Collateral include, and Borrowers and Guarantors shall not be deemed to have granted a security interest
in, (i) any personal (other than Accounts, Inventory and Intellectual Property) and Real Property, fixtures and interest of any
Borrower or Guarantor which are not assignable or are incapable of being encumbered as a matter of law (after giving effect to
Sections 9-406, 9-407, 9-408 or 9-409 of the UCC (or any successor provision or provisions) of any relevant jurisdiction or any
other applicable law), except for the products and proceeds thereof, (ii) any Borrower’s or Guarantor’s rights or interests
in any license, contract or agreement with respect to Intellectual Property (which is not owned by such Borrower or Guarantor)
to which such Borrower or Guarantor is a party or any of its rights or interests thereunder to the extent, but only to the extent,
that such a grant would, under applicable law, result in a breach of the terms of, or constitute a default under any license, contract
or agreement to which such Borrower or Guarantor is a party (after giving effect to Sections 9-406, 9-407, 9-408 or 9-409 of the
UCC (or any successor provision or provisions) of any relevant jurisdiction or any other applicable law) (except for the products
and proceeds thereof); provided, however, upon the ineffectiveness, lapse or termination of any such provision, the
Collateral shall include, and such Borrower or Guarantor shall be deemed to have granted a security interest in, all such rights
and interests as if such provision had never been in effect, and (iii) the Capital Stock of any Foreign Subsidiary to the extent
that such Capital Stock constitutes more than sixty-five percent (65%) of the Voting Stock of all classes of the Capital Stock
of such Foreign Subsidiary that are entitled to vote, except for the products and proceeds thereof as long as such products or
proceeds do not cause the aggregate amount of the Voting Stock of such Foreign Subsidiary part of the Collateral to exceed at any
time sixty-five percent (65%) of the Voting Stock of all classes of the Capital Stock of such Foreign Subsidiary. Notwithstanding
the foregoing, the Collateral shall exclude any rights to any Intellectual Property, or License Agreements that would be cancelled
or rendered invalid or unenforceable under applicable law by the grant of a security interest created pursuant to the terms of
this Agreement, for as long as such prohibition or reason for invalidity under applicable law exists, except for the products and
proceeds thereof. If any Borrower or Guarantor is required to deliver an estoppel letter with respect to any leasehold to the landlord
party to such lease (or to the mortgagor of such landlord), the Collateral shall also exclude any rights to such leasehold to the
extent necessary to permit such Borrower or Guarantor to certify that such leasehold is not subject to any assignment or hypothecation,
and solely for purposes of such estoppel letter.


 






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5.2             
Perfection of Security Interests.


 


(a)              
Each Borrower and Guarantor irrevocably and unconditionally authorizes Agent (or its agent) to file at any time and
from time to time such financing statements with respect to the Collateral naming Agent or its designee as the secured party and
such Borrower or Guarantor as debtor, as Agent may reasonably require, and including any other information with respect to such
Borrower or Guarantor or otherwise required by part 5 of Article 9 of the Uniform Commercial Code of such jurisdiction
or under the PPSA, as Agent may reasonably determine, together with any amendment and continuations with respect thereto, which
authorization shall apply to all financing statements filed on, prior to or after the date hereof. Any such financing statements
may indicate the Collateral as (i) all assets of the debtor or words of similar effect, regardless of whether any particular asset
comprised in the Collateral falls within the scope of Article 9 of the UCC of such jurisdiction or under the PPSA, or (ii)
by any other description which reasonably approximates the description contained herein. Each Borrower and Guarantor hereby ratifies
and approves all financing statements naming Agent or its designee as secured party and such Borrower or Guarantor, as the case
may be, as debtor with respect to the Collateral (and any amendments with respect to such financing statements) filed by or on
behalf of Agent prior to the date hereof and ratifies and confirms the authorization of Agent to file such financing statements
(and amendments, if any). Each Borrower and Guarantor hereby authorizes Agent to adopt on behalf of such Borrower and Guarantor
any symbol required for authenticating any electronic filing. In the event that the description of the collateral in any financing
statement naming Agent or its designee as the secured party and any Borrower or Guarantor as debtor includes assets and properties
of such Borrower or Guarantor that do not at any time constitute Collateral, whether hereunder, under any of the other Financing
Agreements or otherwise, the filing of such financing statement shall nonetheless be deemed authorized by such Borrower or Guarantor
to the extent of the Collateral included in such description and it shall not render the financing statement ineffective as to
any of the Collateral or otherwise affect the financing statement as it applies to any of the Collateral, provided, that,
the inclusion of the description of assets and properties of such Borrower or Guarantor that do not constitute Collateral in any
financing statement shall not be deemed a grant of a security interest in such asset of such Borrower or Guarantor in favor of
Agent and Secured Parties. In no event shall any Borrower or Guarantor at any time file, or permit or cause to be filed, any correction
statement or termination statement with respect to any financing statement (or amendment or continuation with respect thereto)
naming Agent or its designee as secured party and such Borrower or Guarantor as debtor without the prior written consent of Agent.
Each Borrower and Guarantor acknowledges that it is not authorized to file any financing statement, amendment, termination statement
or correction statement with respect to any financing statement without the prior written consent of Agent.


 


(b)              
Each Borrower and Guarantor does not have any Chattel Paper (whether tangible or electronic) or Instruments as of
the Closing Date, except as set forth in the Information Certificate. In the event that any Borrower or Guarantor shall be entitled
to or shall receive any Chattel Paper or Instrument after the date hereof, which together with all other Chattel Paper or Instruments
that Borrower has become entitled to or has received after the date hereof has an aggregate fair market value in excess of $100,000,
Borrowers and Guarantors shall promptly notify Agent thereof in writing. Promptly upon the receipt thereof by or on behalf of any
Borrower or Guarantor (including by any agent or representative), such Borrower or Guarantor shall deliver, or cause to be delivered
to Agent, all such tangible Chattel Paper and Instruments that such Borrower or Guarantor has or may at any time acquire, accompanied
by such instruments of transfer or assignment duly executed in blank as Agent may from time to time specify, in each case except
as Agent may otherwise agree. At Agent’s option, each Borrower and Guarantor shall, or Agent may at any time on behalf of
any Borrower or Guarantor, cause the original of any such Instrument or Chattel Paper with an aggregate fair market value in excess
of $100,000, to be conspicuously marked in a form and manner acceptable to Agent with the following legend referring to Chattel
Paper or Instruments as applicable: “This [chattel paper] [instrument] is subject to the security interest
of JPMorgan Chase Bank, N.A., and any sale, transfer, assignment or encumbrance of this [chattel paper] [instrument]
violates the rights of such secured party.”


 






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(c)              
In the event that any Borrower or Guarantor shall at any time hold or acquire an interest in any electronic Chattel
Paper or any “transferable record” (as such term is defined in Section 201 of the Federal Electronic Signatures
in Global and National Commerce Act or in Section 16 of the Uniform Electronic Transactions Act as in effect in any relevant
jurisdiction, or any similar or successor act, law or statute) which together with all other electronic Chattel Paper or “transferable
record” that Borrower has become entitled to or has received after the date hereof has an aggregate fair market value in
excess of $100,000, such Borrower or Guarantor shall promptly notify Agent thereof in writing. Promptly upon Agent’s request,
such Borrower or Guarantor shall take, or cause to be taken, such actions as Agent may request to give Agent control of such electronic
Chattel Paper under Section 9-105 of the UCC and control of such transferable record under Section 201 of the Federal
Electronic Signatures in Global and National Commerce Act or, as the case may be, Section 16 of the Uniform Electronic Transactions
Act, as in effect in such jurisdiction, or any similar or successor act, law or statute.


 


(d)              
Each Borrower and Guarantor does not have any Deposit Accounts as of the Closing Date, except (x) Store Accounts
or (y) as set forth in the Information Certificate. Borrowers and Guarantors shall not, directly or indirectly, after the
date hereof open, establish or maintain any Deposit Account unless each of the following conditions is satisfied: (i) Agent shall
have received not less than five (5) Business Days prior written notice of the intention of any Borrower or Guarantor to open or
establish such account which notice shall specify in reasonable detail and specificity reasonably acceptable to Agent the name
of the account, the owner of the account, the name and address of the bank at which such account is to be opened or established,
the individual at such bank with whom such Borrower or Guarantor is dealing and the purpose of the account, (ii) the bank where
such account is opened or maintained shall be an Eligible Depository Bank or shall be reasonably acceptable to Agent, and (iii)
within fifteen (15) Business Days after the opening of such Deposit Account, such Borrower or Guarantor shall as Agent may reasonably
specify either (A) deliver to Agent a Deposit Account Control Agreement with respect to such Deposit Account duly authorized, executed
and delivered by such Borrower or Guarantor and the bank at which such Deposit Account is opened and maintained or (B) arrange
for Agent to become the customer of the bank with respect to the Deposit Account on terms and conditions reasonably acceptable
to Agent; provided, that to the extent a Deposit Account Control Agreement has not been delivered to Agent as of the Closing
Date for any Deposit Account in existence at such time, Borrowers shall deliver a Deposit Account Control Agreement for such Deposit
Account pursuant to Section 9.31. The terms of this subsection (d) shall not apply to Excluded Accounts. Agent
shall not exercise control over any Deposit Account until an Event of Default has occurred or a Compliance Period has commenced,
and thereafter for only so long as it is continuing; and Agent shall cease to exercise control over any Deposit Accounts at such
time as no Event of Default and no Compliance Period is then continuing.


 






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(e)              
No Borrower or Guarantor owns or holds, directly or indirectly, beneficially or as record owner or both, any Investment
Property, as of the Closing Date, or have any investment account, Securities account, commodity account or other similar account
with any bank or other financial institution or other securities intermediary or commodity intermediary as of the Closing Date,
in each case except as set forth in the Information Certificate.


 


(i)                
In the event that any Borrower or Guarantor shall be entitled to or shall at any time after the date hereof hold
or acquire any certificated Securities, which together with all other certificated Securities that Borrower holds or acquires an
interest in after the date hereof have an aggregate fair market value in excess of $100,000, such Borrower or Guarantor shall promptly
endorse, assign and deliver the same to Agent, accompanied by such instruments of transfer or assignment duly executed in blank
as Agent may from time to time specify. If any Securities, now or hereafter acquired by any Borrower or Guarantor are uncertificated
and are issued to such Borrower or Guarantor or its nominee directly by the issuer thereof, and such Securities together with all
other such Securities acquired by Borrower have an aggregate fair market value in excess of $100,000, such Borrower or Guarantor
shall immediately notify Agent thereof and shall as Agent may reasonably specify, either (A) cause the issuer to agree to comply
with instructions from Agent as to such Securities, without further consent of any Borrower or Guarantor or such nominee (it being
understood that Agent shall not give any such issuer any such instructions unless an Event of Default has occurred and is continuing),
or (B) arrange for Agent to become the registered owner of the Securities.


 


(ii)             
Borrowers and Guarantors shall not, directly or indirectly, after the date hereof open, establish or maintain any
investment account, securities account, commodity account or any other similar account (other than a Deposit Account) with any
securities intermediary or commodity intermediary unless each of the following conditions is satisfied: (A) Agent shall have received
not less than five (5) Business Days prior written notice of the intention of such Borrower or Guarantor to open or establish such
account which notice shall specify in reasonable detail and specificity reasonably acceptable to Agent the name of the account,
the owner of the account, the name and address of the securities intermediary or commodity intermediary at which such account is
to be opened or established, the individual at such intermediary with whom such Borrower or Guarantor is dealing and the purpose
of the account, (B) the securities intermediary or commodity intermediary (as the case may be) where such account is opened or
maintained shall be acceptable to Agent, and (C) within fifteen (15) Business Days after the opening of such investment account,
securities account or other similar account with a securities intermediary or commodity intermediary, such Borrower or Guarantor
shall as Agent may specify either (1) execute and deliver, and cause to be executed and delivered to Agent, an Investment Property
Control Agreement with respect thereto duly authorized, executed and delivered by such Borrower or Guarantor and such securities
intermediary or commodity intermediary or (2) arrange for Agent or ABL Agent to become the entitlement holder with respect to such
Investment Property on terms and conditions reasonably acceptable to Agent; provided, that to the extent an Investment Property
Control Agreement has not been delivered to Agent as of the Closing Date for any investment account, securities account or other
similar account with a securities intermediary or commodity intermediary in existence at such time, Borrowers shall deliver an
Investment Property Control Agreement pursuant to Section 9.31. Agent shall not exercise control over any investment account,
securities account, commodity account or other similar account (other than any Deposit Accounts which shall be governed by Section 5.2(d)
above) unless an Event of Default has occurred or a Compliance Period has commenced, and thereafter for only so long as it is continuing;
and Agent shall cease to exercise control over any investment account, securities account, commodity account or other similar account
at such time as no Event of Default and no Compliance Period is then continuing.


 






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(f)               
Borrowers and Guarantors are not the beneficiary or otherwise entitled to any right to payment under any letter of
credit, banker’s acceptance or similar instrument as of the Closing Date, except as set forth in the Information Certificate.
In the event that any Borrower or Guarantor shall be entitled to or shall receive any right to payment under any letter of credit,
banker’s acceptance or any similar instrument, whether as beneficiary thereof or otherwise after the date hereof, which together
with all other letters of credit, banker’s acceptances and similar instruments that Borrower has become entitled to or has
received after the date hereof has an aggregate fair market value in excess of $100,000, such Borrower or Guarantor shall promptly
notify Agent thereof in writing. Such Borrower or Guarantor shall promptly, as Agent may reasonably specify, either (i) deliver,
or cause to be delivered to Agent, with respect to any such letter of credit, banker’s acceptance or similar instrument,
the written agreement of the issuer and any other nominated Person obligated to make any payment in respect thereof (including
any confirming or negotiating bank), in form and substance reasonably satisfactory to Agent, consenting to the assignment of the
proceeds of the letter of credit to Agent by such Borrower or Guarantor and agreeing to make all payments thereon directly to Agent
or as Agent may otherwise direct upon the occurrence and during the continuance of an Event of Default or (ii) cause Agent to become,
at Borrowers’ expense, the transferee beneficiary of the letter of credit, banker’s acceptance or similar instrument
(as the case may be) upon the occurrence and during the continuance of an Event of Default).


 


(g)              
Except as set forth in Schedule 5.2(g) hereto, on the date hereof, Borrowers and Guarantors do not have
any commercial tort claims with respect to which the amount claimed exceeds $250,000 and either a written demand therefor has been
made or legal action has commenced. In the event that any Borrower or Guarantor shall at any time after the date hereof have any
commercial tort claims with respect to which the amount claimed exceeds $250,000 and either a written demand therefor has been
made or legal action has commenced, or if any Event of Default exists, upon Agent’s request, if any Borrower or Guarantor
has any commercial tort claims, such Borrower or Guarantor shall promptly notify Agent thereof in writing, which notice shall (i)
set forth in reasonable detail the basis for and nature of such commercial tort claim and (ii) include the express grant by such
Borrower or Guarantor to Agent of a security interest in such commercial tort claim (and the proceeds thereof). In the event that
such notice does not include such grant of a security interest, the sending thereof by such Borrower or Guarantor to Agent shall
be deemed to constitute such grant to Agent. Upon the sending of such notice, any commercial tort claim described therein shall
constitute part of the Collateral and shall be deemed included therein. Without limiting the authorization of Agent provided in
Section 5.2(a) hereof or otherwise arising by the execution by such Borrower or Guarantor of this Agreement or any
of the other Financing Agreements, Agent is hereby irrevocably authorized from time to time and at any time to file such financing
statements naming Agent or its designee as secured party and such Borrower or Guarantor as debtor, or any amendments to any financing
statements, covering any such commercial tort claim as Collateral. In addition, each Borrower and Guarantor shall promptly upon
Agent’s reasonable request, execute and deliver, or cause to be executed and delivered, to Agent such other agreements, documents
and instruments as Agent may require in connection with such commercial tort claim.


 






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(h)              
Borrowers and Guarantors do not have any Goods, documents of title or other Collateral in the custody, control or
possession of a third party as of the Closing Date, except as set forth in the Information Certificate and except for Goods located
in the United States (and Goods located in Canada, so long as Agent has received prior notification thereof and Borrowers have
taken all action reasonably requested by Agent to perfect the security interest of Agent and Secured Parties therein) in transit
to a location of a Borrower or Guarantor permitted herein in the ordinary course of business of such Borrower or Guarantor in the
possession of any carrier transporting such Goods. In the event that any Goods covered by documents of title or other Collateral
with a fair market value in excess of $250,000 are at any time after the date hereof in the custody, control or possession of any
other Person not referred to in the Information Certificate or such carriers, Borrowers and Guarantors shall promptly notify Agent
thereof in writing. Promptly upon Agent’s reasonable request, Borrowers and Guarantors shall deliver to Agent a Collateral
Access Agreement, subject to Section 9.31 hereof, duly authorized, executed and delivered by such Person and the Borrower
or Guarantor that is the owner of such Collateral, except where the fair market value of the Collateral involved is less than $250,000
so long as the aggregate Value of all Collateral located at such locations without a Collateral Access Agreement shall not exceed
$2,000,000.


 


(i)                
Each Borrower and Guarantor will use commercially reasonable efforts to maintain the Intellectual Property owned
by it, defend the Intellectual Property against the claims of all persons, and will maintain and renew all registrations of the
Intellectual Property, if applicable; provided, that, Borrowers and Guarantors shall not be required to maintain, defend
or renew any Intellectual Property which is not material to the Borrowers’ business or has no material economic value. If
any trademark is material to the conduct of any Borrower’s or Guarantor’s business or has material economic value,
such Borrower or Guarantor, as the case may be, shall not permit the expiration or abandonment of such trademark without the prior
written consent of Agent (which consent shall not be unreasonably withheld). If, before the Obligations have been satisfied in
full and the Financing Agreements have been terminated, any Borrower or Guarantor shall obtain or acquire any new trademark registration
or file or acquire any new trademark application, Administrative Borrower shall give Agent notice thereof in the compliance certificate
delivered to Agent pursuant to Section 9.6(a)(i) hereof.


 


(i)                
Until the Obligations shall have been Paid in Full and the Financing Agreements have been terminated (other than
indemnification and other contingent obligations not yet accrued at such time), each Borrower and Guarantor shall use commercially
reasonable efforts to preserve and maintain all rights in the trademarks and the other Intellectual Property; provided,
that Borrowers and Guarantors are not required to preserve or maintain any trademarks which are not material to the Borrowers’
business or have no material economic value. Any expenses incurred in connection with such actions shall be borne by Borrowers.


 






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(ii)             
Borrowers and Guarantors shall not expressly abandon any right to file a trademark, copyright or patent application
or registration for any trademark, copyright or patent, or abandon any pending trademark, copyright or patent application or registration
without the prior written consent of Agent (which consent shall not be unreasonably withheld), except to the extent that the trademark,
copyright or patent covered by such application or registration is not material to the Borrowers’ business or has no material
economic value.


 


(j)                
Subject to Section 9.2 hereof, Borrowers and Guarantors shall take any other actions reasonably requested
by Agent from time to time to cause the attachment, perfection and first priority of, and the ability of Agent to enforce, the
security interest of Agent in any and all of the Collateral, including, (i) executing, delivering and, where appropriate, filing
financing statements and amendments relating thereto under the UCC, the PPSA or other applicable law, to the extent, if any, that
any Borrower’s or Guarantor’s signature thereon is required therefor, (ii) upon Agent’s request after the occurrence
and during the continuance of an Event of Default, causing Agent’s name to be noted as secured party on any certificate of
title for a titled good if such notation is a condition to attachment, perfection or priority of, or ability of Agent to enforce,
the security interest of Agent in such Collateral, (iii) complying with any provision of any statute, regulation or treaty of the
United States or Canada as to any Collateral if compliance with such provision is a condition to attachment, perfection or priority
of, or ability of Agent to enforce, the security interest of Agent in such Collateral, (iv) obtaining the required consents and
approvals of any Governmental Authority or third party, including, any consent of any licensor, lessor or other Person obligated
on Collateral, and taking all actions required by other law, as applicable in any relevant jurisdiction.


 


		Section 6.	COLLECTION AND ADMINISTRATION



 


6.1             
Borrowers’ Loan Accounts. Agent shall maintain one or more loan account(s) on its books in which shall
be recorded (a) all Loans, Letters of Credit and other Obligations and the Collateral, (b) all payments made by or on behalf of
any Borrower or Guarantor and (c) all other appropriate debits and credits as provided in this Agreement, including fees, charges,
costs, expenses and interest. All entries in the loan account(s) shall be made in accordance with Agent’s customary practices
as in effect from time to time and shall be deemed conclusive absent manifest error or omissions.


 


6.2             
Statements. Agent may from time to time provide the Borrowers with account statements or invoices with respect
to any of the Obligations (the “Statements”). Agent is under no duty or obligation to provide Statements, which, if
provided, will be solely for the Borrowers’ convenience. Statements may contain estimates of the amounts owed during the
relevant billing period, whether of principal, interest, fees or other Obligations. If the Borrowers pay the full amount indicated
on a Statement on or before the due date indicated on such Statement, the Borrowers shall not be in default of payment with respect
to the billing period indicated on such Statement; provided, that acceptance by Agent, on behalf of the Lenders, of any
payment that is less than the total amount actually due at that time (including but not limited to any past due amounts) shall
not constitute a waiver of Agent’s or the Lenders’ right to receive payment in full at another time.


 






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6.3             
Collection of Accounts.


 


(a)              
Each Borrower and Guarantor shall establish and maintain, at its expense, deposit account arrangements and merchant
payment arrangements with the banks set forth on Schedule 8.10 hereto and subject to Section 5.2(d) hereof
such other banks as such Borrower or Guarantor may hereafter select. The banks set forth on Schedule 8.10 hereto constitute
all of the banks with which Borrowers and Guarantors have deposit account arrangements and merchant payment arrangements as of
the Closing Date and identifies each of the Deposit Accounts at such banks that are used solely for receiving store receipts from
a retail store location of a Borrower (together with any other Deposit Accounts at any time established or used by any Borrower
for receiving such store receipts from any retail store location, collectively, the “Store Accounts” and each
individually, a “Store Account”) or otherwise describes the nature of the use of such Deposit Account by such
Borrower or Guarantor.


 


(i)                
Each Borrower shall deposit all proceeds from sales of Inventory in every form, including, without limitation, cash,
checks, credit card sales drafts, credit card sales or charge slips or receipts and other forms of daily store receipts, from each
retail store location of such Borrower into the Store Account of such Borrower used solely for such purpose in accordance with
the current and prior practices of such Borrower, but in any event no less frequently than once every three (3) Business Days;
provided, that, each retail store of a Borrower may retain in such store funds of up to $10,000 immediately after each deposit
of funds from such store into the applicable Store Account. All such funds deposited into the Store Accounts shall be sent by wire
transfer or other electronic funds transfer on each Business Day to the Blocked Accounts as provided in Section 6.3(a)(ii)
below, except for (A) nominal amounts which are required to be maintained in such Store Accounts under the terms of such Borrower’s
arrangements with the bank at which such Store Accounts are maintained or (B) with respect to funds deposited in Manual Sweeping
Accounts, which shall be sent to the Blocked Accounts not less than twice every week (and which amounts, together with all amounts
held at the retail store locations and not yet deposited in the Store Accounts and amounts in Store Accounts, shall not in the
aggregate exceed $3,500,000 at any one time, except (1) to the extent from time to time additional amounts may be held in the retail
stores or the Store Accounts on Saturday, Sunday or other days where the applicable depository bank is closed, which additional
amounts are to be, and shall be, transferred on the next Business Day to the Blocked Accounts, and (2) except as Agent may otherwise
agree).


 


(ii)             
Each Borrower shall establish and maintain, at its expense, Deposit Accounts with such banks as are reasonably acceptable
to Agent (the “Blocked Accounts”) into which each Borrower shall promptly either cause all amounts on deposit
in the Store Accounts of such Borrower to be sent as provided in Section 6.3(a)(i) above or shall itself deposit or
cause to be deposited all proceeds of Collateral, including all proceeds from sales of Inventory, all amounts payable to each Borrower
from Credit Card Issuers and Credit Card Processors, and all other proceeds of Collateral. Subject to Section 9.26, any
Eligible Depository Bank shall be deemed acceptable to Agent.


 






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(iii)           
Borrowers and Guarantors shall deliver, or cause to be delivered to Agent a Deposit Account Control Agreement duly
authorized, executed and delivered by each bank where a Blocked Account is maintained as provided in Section 5.2 hereof.
Without limiting any other rights or remedies of Agent or Lenders, Agent may, at its option, and shall (at the direction of Required
Lenders), instruct the depository banks at which the Blocked Accounts are maintained to transfer all available funds received or
deposited into the Blocked Accounts to the Agent Payment Account at any time that an Event of Default is continuing or a Compliance
Period is continuing and Agent shall send to Administrative Borrower a copy of any such written instruction sent by Agent to the
depository bank promptly thereafter. At all times that Agent shall have notified any depository bank to transfer funds from a Blocked
Account to the Agent Payment Account, all payments made to such Blocked Accounts, whether in respect of the Receivables, as proceeds
of Inventory or other Collateral or otherwise shall be treated as payments to Agent in respect of the Obligations and therefore
shall constitute the property of Agent and Lenders to the extent of the then outstanding Obligations.


 


(b)              
Borrowers shall make each payment or prepayment required to be made by them hereunder (whether of principal, interest,
fees or reimbursement of LC Disbursements, or of amounts payable under Sections 3.3, 3.5 or 3.7, or otherwise)
prior to 2:00 p.m., New York time, on the date when due or the date fixed for any prepayment hereunder, in immediately available
funds, without setoff, recoupment or counterclaim. Any amounts received after such time on any date may, in the discretion of Agent,
be deemed to have been received on the next succeeding Business Day for purposes of calculating interest thereon. All such payments
shall be made to Agent in the Agent Payment Account, except payments to be made directly to the Issuing Bank as expressly provided
herein and except that payments pursuant to Sections 3.3, 3.5, 3.7 and 9.22 shall be made directly
to the Persons entitled thereto. Agent shall distribute any such payments received by it for the account of any other Person to
the appropriate recipient promptly following receipt thereof. Unless otherwise provided for herein, if any payment hereunder shall
be due on a day that is not a Business Day, the date for payment shall be extended to the next succeeding Business Day, and, in
the case of any payment accruing interest, interest thereon shall be payable for the period of such extension. All payments hereunder
shall be made in dollars.


 


(c)              
Upon the occurrence and during the continuance of an Event of Default or upon the commencement of any Compliance
Period and during any Compliance Period, Parent and its shareholders, directors, employees, agents, each Borrower and Guarantor
and their respective employees, agents and Subsidiaries or other Affiliates shall receive and promptly remit to Agent, as the property
of Agent, any monies, checks, notes, drafts or any other payment relating to and/or proceeds of Accounts or other Collateral which
come into their possession or under their control and promptly upon receipt thereof, shall deposit or cause the same to be deposited
in the Blocked Accounts, or remit the same or cause the same to be remitted, in kind, to Agent. In no event shall the same be commingled
with any Borrower’s or Guarantor’s own funds. Borrowers agree to reimburse Agent on demand for any amounts owed or
paid to any bank or other financial institution at which a Blocked Account or any other Deposit Account or investment account is
established or any other bank, financial institution or other Person involved in the transfer of funds to or from the Blocked Accounts
arising out of Agent’s payments to or indemnification of such bank, financial institution or other Person. The obligations
of Borrowers to reimburse Agent for such amounts pursuant to this Section 6.3 shall survive the termination or non-renewal
of this Agreement.


 






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6.4             
Payments.


 


(a)              
All Obligations shall be payable to the Agent Payment Account as provided in Section 6.3 or such other
place as Agent may designate from time to time. Agent shall apply payments received or collected from any Borrower or Guarantor
or for the account of any Borrower or Guarantor (including the monetary proceeds of collections or of realization upon any Collateral)
as follows:


 


(i)                
first, to pay any fees, indemnities or expense reimbursements then due to Agent from any Borrower or Guarantor;


 


(ii)             
second, to pay any fees, indemnities, or expense reimbursements then due to Lenders from any Borrower or Guarantor;


 


(iii)           
third, to pay interest due in respect of any Loans (and including any Special Agent Advances);


 


(iv)            
fourth, to pay or prepay principal in respect of Special Agent Advances;


 


(v)              
fifth, to pay or prepay principal in respect of the Loans and to pay or prepay Hedge Obligations then due
(up to the amount of any then effective Reserve established in respect of such Obligations), on a pro rata basis;


 


(vi)            
sixth, to pay or prepay any other Obligations whether or not then due, in such order and manner as Agent determines
or at any time that an Event of Default has occurred and is continuing to be held as cash collateral in connection with any Letter
of Credit Obligations or other contingent Obligations (but not including for this purpose any such other contingent Obligations
arising under or pursuant to any Bank Products); and


 


(vii)         
seventh, at any time that an Event of Default has occurred and is continuing to pay or prepay any Obligations
arising under or pursuant to any Bank Products (other than to the extent provided for above) or to Bank of America, N.A. pursuant
to the E-Payables Agreement on a pro rata basis. Bank of America, N.A. shall not have any voting rights under this Agreement or
any other Financing Agreement as a result of the existence of Obligations owing to it under and pursuant to the E-Payables Agreement.


 


Notwithstanding anything to the contrary contained
in this Agreement, (A) unless so directed by Administrative Borrower or if an Event of Default exists, Agent shall not apply any
payments which it receives to any Loans that are Eurodollar Rate Loans except on the expiration date of the Interest Period applicable
to any such Loans that are Eurodollar Rate Loans and if payments are received or collected from Borrower that otherwise would be
applied to Eurodollar Rate Loans, provided no Event of Default or Compliance Period exists, Administrative Borrower may instruct
Agent to remit such funds to Administrative Borrower, otherwise, such payments shall be held by Agent and shall bear interest at
the NYFRB Rate per annum commencing on the second Business Day following the date such payments are received or collected from
Borrowers and continuing through the date such payments are applied to the Obligations, which shall be upon the expiration of the
first Interest Period after receipt or collection of such payments, to the extent of the principal amount of the applicable Eurodollar
Rate Loan or otherwise, in Agent’s sole discretion, remitted to Administrative Borrower and (B) to the extent any Borrower
uses any proceeds of the Loans or Letters of Credit to acquire rights in or the use of any Collateral or to repay any Indebtedness
used to acquire rights in or the use of any Collateral, payments in respect of the Obligations shall be deemed applied first to
the Obligations arising from Loans and Letter of Credit Obligations that were not used for such purposes and second to the Obligations
arising from Loans and Letter of Credit Obligations the proceeds of which were used to acquire rights in or the use of any Collateral
in the chronological order in which such Borrower acquired such rights in or the use of such Collateral. Notwithstanding the foregoing,
amounts received from any Borrower or any Guarantor that is not an ECP shall not be applied to any Excluded Hedge Obligations (it
being understood, that in the event that any amount is applied to the Obligations other than Excluded Hedge Obligations as a result
of this clause, Agent shall make such adjustments as it determines are appropriate to distributions pursuant to the “fifth”
step and the “seventh” step, in each case as set forth above, from amounts received from an ECP to ensure, as
nearly as possible, that the proportional aggregate recoveries with respect to the Obligations described in the “fifth”
step and the “seventh” step above by the holders of any Excluded Hedge Obligations are the same as the proportional
aggregate recoveries with respect to other Obligations pursuant to the “fifth” step and the “seventh”
step above).


 






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(b)              
During the continuance of an Event of Default, at the election of Agent, all payments of principal, interest, LC
Disbursements, fees, premiums, reimbursable expenses (including, without limitation, all reimbursement for fees, costs and expenses
pursuant to Section 9.22), and other sums payable under the Financing Agreements, may be paid from the proceeds of Borrowings
made hereunder whether made following a request by the Administrative Borrower pursuant to Section 2.11 or a deemed request
as provided in this Section or may be deducted from any deposit account of any Borrower maintained with Agent. The Borrowers hereby
irrevocably authorize, during the continuance of an Event of Default, (i) Agent to make a Borrowing for the purpose of paying each
payment of principal, interest and fees as it becomes due hereunder or any other amount due under the Financing Agreements and
agrees that all such amounts charged shall constitute Loans and that all such Borrowings shall be deemed to have been requested
pursuant to Section 2.11 and (ii) Agent to charge any deposit account of any Borrower maintained with Agent for each payment
of principal, interest and fees as it becomes due hereunder or any other amount due under the Financing Agreements.


 


(c)              
Unless Agent shall have received, prior to any date on which any payment is due to Agent for the account of the Lenders
or the Issuing Bank pursuant to the terms hereof or any other Financing Agreement, notice from the Administrative Borrower that
the Borrowers will not make such payment, Agent may assume that the Borrowers have made such payment on such date in accordance
herewith and may, in reliance upon such assumption, distribute to the Lenders or the Issuing Bank, as the case may be, the amount
due. In such event, if the Borrowers have not in fact made such payment, then each of the Lenders or the Issuing Bank, as the case
may be, severally agrees to repay to Agent forthwith on demand the amount so distributed to such Lender or Issuing Bank with interest
thereon, for each day from and including the date such amount is distributed to it but excluding the date of payment to Agent,
at the greater of the NYFRB Rate and a rate determined by Agent in accordance with banking industry rules on interbank compensation.


 






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(d)              
Borrowers shall make all payments to Agent and Lenders on the Obligations free and clear of, and without deduction
or withholding for or on account of, any setoff, counterclaim, defense, restrictions or conditions of any kind. If after receipt
of any payment of, or proceeds of Collateral applied to the payment of, any of the Obligations, Agent, any Lender or Issuing Bank
is required to surrender or return such payment or proceeds to any Person for any reason, then the Obligations intended to be satisfied
by such payment or proceeds shall be reinstated and continue and this Agreement shall continue in full force and effect as if such
payment or proceeds had not been received by Agent or such Lender. Borrowers and Guarantors shall be liable to pay to Agent and
Lenders, and do hereby indemnify and hold Agent and Lenders harmless for the amount of any payments or proceeds so surrendered
or returned and to the extent thereof. This Section 6.4(d) shall remain effective notwithstanding any contrary action which
may be taken by Agent or any Lender in reliance upon such payment or proceeds. This Section 6.4 shall survive the payment
of the Obligations and the termination of this Agreement.


 


6.5             
[Reserved].


 


6.6             
Authorization to Make Loans. Agent and Lenders are authorized to make the Loans and Issuing Bank is authorized
to issue Letters of Credit based upon telephonic or other instructions received from anyone purporting to be an Authorized Officer
of Administrative Borrower or any Borrower or other authorized Person or, at the discretion of Agent, if such Loans are necessary
to satisfy any Obligations; provided, that, Agent and Lenders shall direct the Loans only into the Funding Accounts and
those accounts of Borrowers authorized in writing by an Authorized Officer. The foregoing sentence notwithstanding, if Agent or
a Lender makes a Loan into an account of any Borrower designated by a Person who no longer is an Authorized Officer and Agent did
not receive prior written notice that such Person is no longer an Authorized Officer, such Loan will still be considered an Obligation
hereunder. All Loans and Letters of Credit under this Agreement shall be conclusively presumed to have been made to, and at the
request of and for the benefit of, any Borrower or Guarantor when deposited to the credit of any Borrower or Guarantor or otherwise
disbursed or established in accordance with the instructions of any Borrower or Guarantor or in accordance with the terms and conditions
of this Agreement.


 


6.7             
Use of Proceeds.


 


(a)              
Borrowers shall use the initial proceeds of the Revolving Loans and Letters of Credit hereunder only for costs, expenses
and fees in connection with the preparation, negotiation, execution and delivery of this Agreement and the other Financing Agreements
and consummation of any other permitted transactions contemplated hereby which will take place on or about the date hereof and
costs, expenses and fees in connection with the preparation, negotiation, execution and delivery of this Agreement and the other
Financing Agreements. All other Revolving Loans made or Letters of Credit provided to or for the benefit of any Borrower pursuant
to the provisions hereof shall be used by such Borrower only to finance Permitted Acquisitions and for general operating, working
capital and other proper corporate purposes of such Borrower (including the intercompany funding of Borrowers and Guarantors and
to fund a portion of the consideration, fees and expenses in respect of the Valor Merger) not otherwise prohibited by the terms
hereof. None of the proceeds of any Loans or Letters of Credit will be used, directly or indirectly, for the purpose of purchasing
or carrying any margin security or for the purposes of reducing or retiring any Indebtedness which was originally incurred to purchase
or carry any margin security or for any other purpose which might cause any of the Loans to be considered a “purpose credit”
within the meaning of Regulation U of the Federal Reserve Board, as amended.


 






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(b)              
No Borrower will request any Loan or Letter of Credit, and no Borrower or Guarantor shall use, and each Borrower
and Guarantor shall procure that its Subsidiaries and its and their respective directors, officers, employees and agents shall
not use, the proceeds of any Loan or Letter of Credit (i) in furtherance of an offer, payment, promise to pay, or authorization
of the payment or giving of money, or anything else of value, to any Person in violation of any Anti-Corruption Laws, (ii) for
the purpose of funding, financing or facilitating any activities, business or transaction of or with any Sanctioned Person, or
in any Sanctioned Country, to the extent that such activities, businesses or transaction would be prohibited by applicable Sanctions,
or (iii) in any manner that would result in the violation of any Sanctions applicable to any party hereto.


 


6.8             
Appointment of Administrative Borrower as Agent for Requesting Loans and Receipts of Loans and Statements.


 


(a)              
Each Borrower hereby irrevocably appoints Vitamin Shoppe as Administrative Borrower and, as such, constitutes Administrative
Borrower as its agent and attorney-in-fact to request and receive Loans and Letters of Credit pursuant to this Agreement and the
other Financing Agreements from Agent or any Lender in the name or on behalf of such Borrower. Agent and Lenders may disburse the
Loans to such bank account of Administrative Borrower or a Borrower or otherwise make such Loans to a Borrower and provide such
Letter of Credit to a Borrower as Administrative Borrower may designate or direct, without notice to any other Borrower or Guarantor.
Notwithstanding anything to the contrary contained herein, Agent may at any time and from time to time require that Loans to or
for the account of any Borrower be disbursed directly to an operating account of such Borrower.


 


(b)              
Administrative Borrower hereby accepts the appointment by Borrowers to act as the agent and attorney-in-fact of Borrowers
pursuant to this Section 6.8. Administrative Borrower shall have and may exercise such powers under the Financing Agreements
as are specifically delegated to Administrative Borrower by the terms of each thereof, including, but not limited to ensuring that
the disbursement of any Loans to each Borrower requested by or paid to or for the account of a Borrower, or the issuance of any
Letter of Credit for a Borrower hereunder, shall be paid to or for the account of such Borrower, together with such powers as are
reasonably incidental thereto.


 


(c)              
Each Borrower and other Guarantor hereby irrevocably appoints and constitutes Administrative Borrower as its agent
to receive statements on account and all other notices from Agent and Lenders with respect to the Obligations or otherwise under
or in connection with this Agreement and the other Financing Agreements.


 


(d)              
Any notice, election, representation, warranty, agreement or undertaking by or on behalf of any other Borrower or
any Guarantor by Administrative Borrower shall be deemed for all purposes to have been made by such Borrower or Guarantor, as the
case may be, and shall be binding upon and enforceable against such Borrower or Guarantor to the same extent as if made directly
by such Borrower or Guarantor.


 






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(e)              
The Administrative Borrower may execute any of its duties as the Administrative Borrower hereunder and under any
other Financing Agreements by or through Authorized Officers.


 


(f)               
No purported termination of the appointment of Administrative Borrower as agent as aforesaid shall be effective,
except after ten (10) days’ prior written notice to Agent.


 


6.9             
Pro Rata Treatment. Except to the extent otherwise provided in this Agreement or as otherwise agreed by Lenders:
(a) the making and conversion of Revolving Loans shall be made among the Revolving Lenders based on their respective Pro Rata Shares
as to the Revolving Loans and (b) each payment on account of any Obligations to or for the account of one or more of Lenders in
respect of any Obligations due on a particular day shall be allocated among the Lenders entitled to such payments based on their
respective Pro Rata Shares of such Loans, as applicable, and shall be distributed accordingly.


 


6.10         
Sharing of Payments, Etc6.11.


 


(a)              
Each Borrower and Guarantor agrees that, in addition to (and without limitation of) any right of setoff, banker’s
lien or counterclaim Agent or any Lender may otherwise have, each Lender shall be entitled, at its option (but subject, as among
Agent and Lenders, to the provisions of Section 12.3(b) hereof), to offset balances held by it for the account of such
Borrower or Guarantor at any of its offices, in dollars or in any other currency, against any principal of or interest on any Loans
owed to such Lender or any other amount payable to such Lender hereunder, that is not paid when due (regardless of whether such
balances are then due to such Borrower or Guarantor), in which case it shall promptly notify Administrative Borrower and Agent
thereof; provided, that, such Lender’s failure to give such notice shall not affect the validity thereof.


 


(b)              
If, except as otherwise expressly provided herein, any Lender shall, by exercising any right of setoff or counterclaim
or otherwise, obtain payment in respect of any principal of or interest on any of its Loans or participations in LC Disbursements
resulting in such Lender receiving payment of a greater proportion of the aggregate amount of its Loans and participations in LC
Disbursements and accrued interest thereon than the proportion received by any other similarly situated Lender, then the Lender
receiving such greater proportion shall purchase (for cash at face value) participations in the Loans and participations in LC
Disbursements of other Lenders to the extent necessary so that the benefit of all such payments shall be shared by all such Lenders
ratably in accordance with their respective Pro Rata Shares; provided that (i) if any such participations are purchased
and all or any portion of the payment giving rise thereto is recovered, such participations shall be rescinded and the purchase
price restored to the extent of such recovery, without interest, and (ii) the provisions of this paragraph shall not be construed
to apply to any payment made by the Borrowers pursuant to and in accordance with the express terms of this Agreement or any payment
obtained by a Lender as consideration for the assignment of or sale of a participation in any of its Loans or participations in
LC Disbursements to any assignee or participant, other than to the Borrowers or any Subsidiary or Affiliate thereof (as to which
the provisions of this paragraph shall apply). Each Borrower consents to the foregoing and agrees, to the extent it may effectively
do so under applicable law, that any Lender acquiring a participation pursuant to the foregoing arrangements may exercise against
such Borrower rights of setoff and counterclaim with respect to such participation as fully as if such Lender were a direct creditor
of such Borrower in the amount of such participation.


 






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(c)              
Each Borrower and Guarantor agrees that any Lender purchasing a participation (or direct interest) as provided in
this Section may exercise, in a manner consistent with this Section, all rights of setoff, banker’s lien, counterclaim or
similar rights with respect to such participation as fully as if such Lender were a direct holder of Loans or other amounts (as
the case may be) owing to such Lender in the amount of such participation.


 


(d)              
Nothing contained herein shall require any Lender to exercise any right of setoff, banker’s lien, counterclaims
or similar rights or shall affect the right of any Lender to exercise, and retain the benefits of exercising, any such right with
respect to any other Indebtedness or obligation of any Borrower or Guarantor. If, under any applicable bankruptcy, insolvency or
other similar law, any Lender receives a secured claim in lieu of a setoff to which this Section applies, such Lender shall, to
the extent practicable, assign such rights to Agent for the benefit of Secured Parties and, in any event, exercise its rights in
respect of such secured claim in a manner consistent with the rights of Lenders entitled under this Section to share in the benefits
of any recovery on such secured claim.


 


6.12         
Settlement Procedures.


 


(a)              
In order to administer the Credit Facility in an efficient manner and to minimize the transfer of funds between Agent
and Lenders, Agent may, at its option, subject to the terms of this Section, make available, on behalf of Lenders, the full amount
of the Revolving Loans requested or charged to any Borrower’s loan account(s) or otherwise to be advanced by Lenders pursuant
to the terms hereof, without requirement of prior notice to Lenders of the proposed Revolving Loans.


 


(b)              
With respect to all Revolving Loans made by Agent on behalf of Lenders as provided in this Section, the amount of
each Lender’s Pro Rata Share of the outstanding Revolving Loans shall be computed weekly, and shall be adjusted upward or
downward on the basis of the amount of the outstanding Revolving Loans as of 5:00 p.m. New York time on the Business Day immediately
preceding the date of each settlement computation; provided, that, Agent retains the absolute right at any time or from
time to time to make the above described adjustments at intervals more frequent than weekly, but in no event more than twice in
any week. Agent shall deliver to each of the Lenders after the end of each week, or at such lesser period or periods as Agent shall
determine, a summary statement of the amount of outstanding Revolving Loans for such period (such week or lesser period or periods
being hereinafter referred to as a “Settlement Period”). If the summary statement is sent by Agent and received
by a Lender prior to 11:00 a.m. New York time, then such Lender shall make the settlement transfer described in this Section
by no later than 3:00 p.m. New York time on the same Business Day and if received by a Lender after 11:00 a.m. New York
time, then such Lender shall make the settlement transfer by not later than 3:00 p.m. New York time on the next Business Day
following the date of receipt. If, as of the end of any Settlement Period, the amount of a Lender’s Pro Rata Share of the
outstanding Revolving Loans is more than such Lender’s Pro Rata Share of the outstanding Revolving Loans as of the end of
the previous Settlement Period, then, if the summary statement is prepared and delivered to Lenders by Agent prior to 11:00 a.m.
New York City time, then Agent shall make the transfer described in this Section by no later than 3:00 p.m. New York City time
on the same Business Day and if prepared and delivered to Lenders by Agent after 11:00 a.m. New York City time, then Agent
shall make the transfer by no later than 3:00 p.m. New York City time on the next Business Day following the date of receipt,
then such Lender shall forthwith (but in no event later than the time set forth in the preceding sentence) transfer to Agent by
wire transfer in immediately available funds the amount of the increase. Alternatively, if the amount of a Lender’s Pro Rata
Share of the outstanding Revolving Loans in any Settlement Period is less than the amount of such Lender’s Pro Rata Share
of the outstanding Revolving Loans for the previous Settlement Period, Agent shall forthwith transfer to such Lender by wire transfer
in immediately available funds the amount of the decrease. The obligation of each of the Lenders to transfer such funds and effect
such settlement shall be irrevocable and unconditional and without recourse to or warranty by Agent. Agent and each Lender agrees
to mark its books and records at the end of each Settlement Period to show at all times the dollar amount of its Pro Rata Share
of the outstanding Revolving Loans and Letters of Credit. Each Lender shall only be entitled to receive interest on its Pro Rata
Share of the Revolving Loans to the extent such Revolving Loans have been funded by such Lender. Because the Agent on behalf of
Lenders may be advancing and/or may be repaid Revolving Loans prior to the time when Lenders will actually advance and/or be repaid
such Revolving Loans, interest with respect to Revolving Loans shall be allocated by Agent in accordance with the amount of Revolving
Loans actually advanced by and repaid to each Lender and the Agent and shall accrue from and including the date such Revolving
Loans are so advanced to but excluding the date such Revolving Loans are either repaid by Borrowers or actually settled with the
applicable Lender as described in this Section.


 






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(c)              
To the extent that Agent has made any such amounts available and the settlement described above shall not yet have
occurred, upon repayment of any Revolving Loans by a Borrower, Agent may apply such amounts repaid directly to any amounts made
available by Agent pursuant to this Section. In lieu of weekly or more frequent settlements, Agent may, at its option, at any time
require each Lender to provide Agent with immediately available funds representing its Pro Rata Share of each Revolving Loan, prior
to Agent’s disbursement of such Revolving Loan to a Borrower (or Administrative Borrower on behalf of such Borrower). In
such event, all Revolving Loans under this Agreement shall be made by the Lenders simultaneously and proportionately to their Pro
Rata Shares of Loans. No Lender shall be responsible for any default by any other Lender in the other Lender’s obligation
to make a Revolving Loan requested hereunder nor shall the Commitment of any Lender be increased or decreased as a result of the
default by any other Lender in the other Lender’s obligation to make a Revolving Loan hereunder.


 


(d)              
If Agent is not funding a particular Revolving Loan to a Borrower (or Administrative Borrower for the benefit of
such Borrower) pursuant to Sections 6.11(a) and 6.11(b) above on any day, but is requiring each Lender to provide
Agent with immediately available funds on the date of such Revolving Loan as provided in Section 6.11(c) above, Agent
may assume that each Lender will make available to Agent such Lender’s Pro Rata Share of the Revolving Loan requested or
otherwise made on such day and Agent may, in its discretion, but shall not be obligated to, cause a corresponding amount to be
made available to or for the benefit of such Borrower on such day. If Agent makes such corresponding amount available to a Borrower
and such corresponding amount is not in fact made available to Agent by such Lender, Agent shall be entitled to recover such corresponding
amount on demand from such Lender together with interest thereon for each day from the date such payment was due until the date
such amount is paid to Agent at the NYFRB Rate for each day during such period (as published by the Federal Reserve Bank of New
York or at Agent’s option based on the arithmetic mean determined by Agent of the rates for the last transaction in overnight
Federal funds arranged prior to 9:00 a.m. (New York City time) on that day by each of the three leading brokers of Federal
funds transactions in New York City selected by Agent) and if such amounts are not paid within three (3) days of Agent’s
demand, at the highest interest rate provided for in Section 3.1 hereof applicable to ABR Loans. During the period
in which such Lender has not paid such corresponding amount to Agent, notwithstanding anything to the contrary contained in this
Agreement or any of the other Financing Agreements, the amount so advanced by Agent to or for the benefit of any Borrower shall,
for all purposes hereof, be a Revolving Loan made by Agent for its own account. Upon any such failure by a Lender to pay Agent,
Agent shall promptly thereafter notify Administrative Borrower of such failure and Borrowers shall pay such corresponding amount
to Agent for its own account within five (5) Business Days of Administrative Borrower’s receipt of such notice, which shall
constitute a payment on account of Obligations.


 






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(e)              
Nothing in this Section or elsewhere in this Agreement or the other Financing Agreements shall be deemed to require
Agent to advance funds on behalf of any Lender or to relieve any Lender from its obligation to fulfill its Commitment hereunder
or to prejudice any rights that any Borrower may have against any Lender as a result of any default by any Lender hereunder in
fulfilling its Commitment.


 


6.13         
Obligations Several; Independent Nature of Lenders’ Rights. The obligation of each Lender hereunder
is several, and no Lender shall be responsible for the obligation or Commitment of any other Lender hereunder. Nothing contained
in this Agreement or any of the other Financing Agreements and no action taken by the Lenders pursuant hereto or thereto shall
be deemed to constitute the Lenders to be a partnership, an association, a joint venture or any other kind of entity. The amounts
payable at any time hereunder to each Lender shall be a separate and independent debt, and subject to Section 12.3
hereof, each Lender shall be entitled to protect and enforce its rights arising out of this Agreement and it shall not be necessary
for any other Lender to be joined as an additional party in any proceeding for such purpose.


 


		Section 7.	COLLATERAL REPORTING AND COVENANTS



 


7.1             
Collateral Reporting.


 


(a)              
Borrowers and Guarantors shall maintain complete and accurate books and records in all material respects with respect
to the Collateral owned by it. Borrowers and Guarantors shall provide Agent with the following documents in a form reasonably satisfactory
to Agent:


 


(i)                
(A) promptly after the end of (but in no event more than fifteen (15) Business Days thereafter) (x) each fiscal quarter
or (y) each fiscal month to the extent that aggregate sum of the Loans and Letters of Credit outstanding are greater than $20,000,000
at any time during the thirty days prior to the last day of such fiscal month, in each case, so long as no Event of Default has
occurred and is continuing and no Increased Reporting Period is then in effect, a Borrowing Base Certificate setting forth the
calculation of the Borrowing Base as of the last Business Day of the immediately preceding fiscal month for monthly reporting (or
the last Business Day of the immediately preceding fiscal quarter for quarterly reporting) and (B) no more than three (3) Business
Days following the last Business Day of each calendar week at any time an Event of Default has occurred and is continuing or an
Increased Reporting Period is then in effect, a Borrowing Base Certificate setting forth the calculation of the Borrowing Base
as of the last Business Day of the immediately preceding calendar week, in each case, duly completed and executed by the chief
financial officer, vice president of finance, treasurer, controller or other similar financial officer of Administrative Borrower,
together with all schedules required pursuant to the terms of the Borrowing Base Certificate duly completed, including but not
limited to an inventory summary report by category as determined by Borrowers in accordance with their current and prior inventory
management policies (and upon Agent’s reasonable request, upon the occurrence and during the continuance of an Event of Default
letter of credit inventory summary) and identifying where such Inventory is located;


 






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(ii)             
promptly after the end of (but in no event more than fifteen (15) Business Days thereafter) (x) each fiscal quarter
or (y) each fiscal month to the extent that aggregate sum of the Loans and Letters of Credit outstanding are greater than $20,000,000
at any time during the thirty days prior to the last day of such fiscal month, in each case, so long as no Event of Default has
occurred and is continuing and no Increased Reporting Period is then in effect (and more frequently as Agent may reasonably require
at any time an Event of Default has occurred and is continuing or an Increased Reporting Period is then in effect), a schedule
and aging of the Borrowers’ accounts payable, delivered electronically in a text formatted file acceptable to Agent;


 


(iii)           
promptly after the end of (but in no event more than fifteen (15) Business Days thereafter) (x) each fiscal quarter
or (y) each fiscal month to the extent that the aggregate sum of the Loans and Letters of Credit outstanding are greater than $20,000,000
at any time during the thirty days prior to the last day of such fiscal month, in each case, so long as no Event of Default has
occurred and is continuing and no Increased Reporting Period is then in effect (and more frequently as Agent may reasonably require
at any time an Event of Default has occurred and is continuing or an Increased Reporting Period is then in effect), inventory summary
reports by location and category of Inventory (including the amounts of Inventory and the aggregate value thereof at each retail
store location and at premises of warehouses or other third parties or is consigned Inventory); and


 


(iv)            
in connection with the delivery of the financial statements pursuant to Section 9.6(a)(i) and Section 9.6(a)(ii),
a compliance certificate by the chief financial officer, vice president of finance, treasurer or controller or other similar financial
or senior officer of Administrative Borrower (or if no such officer has been appointed or elected, the sole member of Administrative
Borrower) consisting of: (1) a statement confirming there are no material past due amounts owing to owners and lessors of leased
premises (including retail store locations), warehouses, fulfillment centers, processors, custom brokers, freight forwarders and
other third parties from time to time in possession of any Collateral having a Value equal to or greater than $250,000, (2) the
addresses of all new retail store or distribution center locations of Borrowers and Guarantors opened and existing retail store
or distribution center locations closed or sold, in each case since the date of the most recent certificate delivered to Agent
containing the information required under this clause, (3) a list of any new Deposit Account established by any Borrower or Guarantor
with any bank or other financial institution, including the Borrower or Guarantor in whose name the account is maintained, the
account number, the name and address of the financial institution at which such account is maintained, the purpose of such account
and, if any, the amount held in such account on or about the date of such compliance certificate, and (4) a statement that all
sales and use taxes have been paid when due as of the date of the compliance certificate, except as specifically described in such
compliance certificate and except where the non-payment of such sales and use taxes involves an aggregate amount of less than $200,000.


 






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(b)              
Upon Agent’s reasonable request, Borrowers shall provide Agent with the following documents in a form reasonably
satisfactory to Agent: (i) perpetual inventory summary reports by sku for each retail store location, (ii) summary reports on sales
and use tax collections, deposits and payments, including monthly sales and use tax accruals, (iii) a report of aggregate credit
card sales for the requested period, including the amount of the chargebacks, fees, and credits with respect thereto and providing
an aging of such related Receivables identifying those outstanding more than five (5) Business Days since the sale date giving
rise thereto, and (iv) true, correct and complete copies of all agreements, documents and instruments relating to any Permitted
Acquisition which Agent has not otherwise received; and


 


(c)              
Upon Agent’s reasonable request, Borrowers shall provide such other reports as to the Collateral as Agent shall
reasonably request from time to time. If any Borrower’s or Guarantor’s records or reports of the Collateral are prepared
or maintained by an accounting service, contractor, shipper or other agent, such Borrower and Guarantor hereby irrevocably authorizes
such service, contractor, shipper or agent to deliver such records, reports, and related documents to Agent and to follow Agent’s
instructions with respect to further reasonable services, in each case, at any time that an Event of Default has occurred and is
continuing.


 


7.2             
Accounts Covenants.


 


(a)              
Borrowers shall notify Agent promptly of the assertion of any claims, offsets, defenses or counterclaims by any Account
Debtor, Credit Card Issuer or Credit Card Processor or any disputes with any of such Persons or any settlement, adjustment or compromise
thereof, to the extent any of the foregoing exceeds $500,000 in any one case or $2,000,000 in the aggregate. No credit, discount,
allowance or extension or agreement for any of the foregoing shall be granted to any Account Debtor, Credit Card Issuer or Credit
Card Processor except in the ordinary course of a Borrower’s business in accordance with the current and prior practices
of such Borrower. So long as an Event of Default has occurred and is continuing, no Borrower shall, without the prior written consent
of Agent, settle, adjust or compromise any material claim, offset, counterclaim or dispute with any Account Debtor, Credit Card
Issuer or Credit Card Processor. At any time that an Event of Default has occurred and is continuing, Agent shall, at its option,
have the exclusive right to approve, settle, adjust or compromise any claim, offset, counterclaim or dispute with Account Debtors,
Credit Card Issuers or Credit Card Processors or grant any credits, discounts or allowances.


 


(b)              
Each Borrower shall notify Agent promptly of: (i) any notice of a material default by such Borrower under any of
the Credit Card Agreements, (ii) of any default by such Borrower which has a reasonable likelihood of resulting in the Credit Card
Issuer or Credit Card Processor ceasing to make payments or suspending payments to such Borrower, and (iii) any notice from any
Credit Card Issuer or Credit Card Processor that such Person is ceasing or suspending, or will or may cease or suspend, any present
or future payments due or to become due to any Borrower from such Person, or that such Person is terminating or will or may terminate
any of the Credit Card Agreements.


 






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(c)              
Agent shall have the right at any time or times, in Agent's name or in the name of a nominee of Agent, to verify
the validity, amount or any other matter relating to any Receivables or other Collateral, by mail, telephone, facsimile transmission
or otherwise.


 


7.3             
Inventory Covenants. With respect to the Inventory: (a) each Borrower and Guarantor shall at all times maintain
inventory records reasonably satisfactory to Agent, keeping correct and accurate records itemizing and describing the kind, type,
quality and quantity of Inventory, such Borrower’s or Guarantor’s cost therefor and daily withdrawals therefrom and
additions thereto; (b) Borrowers and Guarantors shall conduct physical counts of the Inventory (excluding Inventory located in
retail stores that have not been open for more than twelve (12) months) either through periodic cycle counts or wall to wall counts,
so that all Inventory located at distribution centers and retail stores that have been open for more than twelve months is subject
to such counts at least once each year but at any time or times as Agent may request upon the occurrence and during the continuance
of an Event of Default, and promptly following such physical counts of the Inventory (whether through periodic cycle counts or
wall to wall counts) shall supply Agent with a report in the form and with such specificity as may be reasonably satisfactory to
Agent concerning such physical count; (c) Borrowers and Guarantors shall not remove any Inventory from the locations set forth
or permitted herein, without the prior written consent of Agent, except (i) for sales of Inventory in the ordinary course of its
business, (ii) for sales, returns and exchanges of Inventory to manufacturers and suppliers in the ordinary course of business;
(iii) to move Inventory directly from one location set forth or permitted herein to another such permitted location and (iv) for
Inventory shipped from the manufacturer thereof to such Borrower or Guarantor which is in transit to the locations set forth or
permitted herein; (d) upon Agent’s request, Borrowers shall, at their expense, no more than one (1) time in any twelve (12)
month period (or one (1) additional time in any twelve (12) month period as Agent may request and at Borrowers’ expense if
Excess Availability is less than the greater of (x) 20% of the Borrowing Cap and (y) $20,000,000 at any time during such period),
but at any time or times as Agent may reasonably request upon the occurrence and during the continuance of an Event of Default
or if there is a Material Adverse Effect (at Borrowers’ sole expense), deliver or cause to be delivered to Agent written
appraisals as to the Inventory in form, scope and methodology reasonably acceptable to Agent and by an appraiser reasonably acceptable
to Agent, addressed to Agent and Lenders and upon which Agent and Lenders are expressly permitted to rely; (e) Borrowers and Guarantors
shall produce, use, store and maintain the Inventory with all reasonable care and caution and in accordance with applicable standards
of any insurance and in conformity with applicable laws (including, to the extent applicable, the requirements of the Federal Fair
Labor Standards Act of 1938, as amended and all rules, regulations and orders related thereto); (f) none of the Inventory or other
Collateral constitutes farm products or the proceeds thereof; (g) as between Agent and Secured Parties and Borrowers and Guarantors,
each Borrower and Guarantor assumes all responsibility and liability arising from or relating to the production, use, sale or other
disposition of the Inventory; (h) Borrowers and Guarantors shall not sell Inventory to any customer on approval, or any other basis
which entitles the customer to return or may obligate any Borrower or Guarantor to repurchase such Inventory other than returns
and exchanges of Inventory from customers in the ordinary course business of such Borrower or Guarantor consistent with the then
current return policy of such Borrower or Guarantor; (i) Borrowers and Guarantors shall keep the Inventory in good and marketable
condition; and (j) Borrowers and Guarantors shall not, without prior written notice to Agent or the specific identification of
such Inventory in a report with respect thereto provided by Administrative Borrower to Agent pursuant to Section 7.1(a)
hereof, acquire or accept any Inventory on consignment or approval except for (x) magazines, stationery and greeting cards,
and (y) perishable food stuffs of a de minimus value.


 






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7.4             
Equipment and Real Property Covenants. With respect to the Equipment and Real Property: (a) upon Agent’s
request, Borrowers and Guarantors shall, at their expense, no more than one (1) time as Agent may request upon the occurrence and
during the continuance of an Event of Default, deliver or cause to be delivered to Agent written appraisals as to the Equipment
and/or the fee owned Real Property in form, scope and methodology reasonably acceptable to Agent and by an appraiser reasonably
acceptable to Agent, addressed to Agent and upon which Agent is expressly permitted to rely; (b) Borrowers and Guarantors shall
keep the Equipment in good order, repair, running and marketable condition (ordinary wear and tear and casualty and condemnation
excepted); (c) Borrowers and Guarantors shall use the Equipment with all reasonable care and caution and in accordance with applicable
standards of any insurance and in conformity with all applicable laws except where the failure to so use would not result in a
Material Adverse Effect; (d) the Equipment is and shall be used in the business of Borrowers and Guarantors and not for personal,
family, household or farming use; (e) Borrowers and Guarantors shall not remove any Equipment from the locations set forth or permitted
herein, except to the extent necessary to have any Equipment repaired or maintained in the ordinary course of its business or to
move Equipment directly from one location set forth or permitted herein to another such location and except for the movement of
motor vehicles used by or for the benefit of such Borrower or Guarantor in the ordinary course of business; (f) the Equipment is
now and shall remain personal property and Borrowers and Guarantors shall not permit any part of the Equipment to be or become
a part of or affixed to real property except where the failure to do so would not have a Material Adverse Effect; and (g) each
Borrower and Guarantor assumes all responsibility and liability arising from the use of the Equipment and Real Property.


 


7.5             
Delivery of Instruments, Chattel Paper and Documents.In the event that any Borrower or Guarantor shall
be entitled to or shall at any time after the date hereof hold or acquire any Chattel Paper or Instruments constituting Collateral
or any Documents evidencing or constituting Collateral which together with all other Chattel Paper, Instruments and Documents that
Borrower or Guarantor holds or acquires an interest in after the date hereof have an aggregate fair market value in excess of $500,000,
such Borrower or Guarantor shall promptly deliver to Agent any such Chattel Paper, Instruments and/or Documents along with such
other documents as Agent may reasonably require pursuant to which such Borrower or Guarantor will pledge such additional Collateral.
Such Borrower or Guarantor herby authorizes Agent to attach such supplemental documents to this Agreement and agrees that all additional
Collateral owned by it set forth in such supplemental documents shall be considered to be part of the Collateral.


 


7.6             
Intellectual Property Appraisal. Upon the occurrence of an Event of Default and during the continuance thereof,
Borrowers shall, at their expense, no more than one (1) time as Agent may request upon the occurrence and during the continuance
of an Event of Default, deliver or cause to be delivered to Agent written reports or appraisals as to the Intellectual Property
in form, scope and methodology reasonably acceptable to Agent and Lenders and by an appraiser reasonably acceptable to Agent, addressed
to Agent and Lenders and upon which Agent and Lenders are expressly permitted to rely.


 






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7.7             
Power of Attorney.


 


(a)              
Each Borrower and Guarantor hereby irrevocably designates and appoints Agent (and all Persons reasonably designated
by Agent) as such Borrower’s and Guarantor’s true and lawful attorney-in-fact, and authorizes Agent, in such Borrower’s,
Guarantor’s or Agent’s name, to: (i) at any time an Event of Default has occurred and is continuing (A) demand payment
on Receivables or other Collateral, (B) clear Inventory the purchase of which was financed with Letters of Credit through U.S.
Customs or foreign export control authorities in any Borrower’s or Guarantor’s name, Agent’s name or the name
of Agent’s designee, and to sign and deliver to customs officials powers of attorney in such Borrower’s or Guarantor’s
name for such purpose, and to complete in Borrower’s, Guarantor’s or Agent’s name, any order, sale or transaction,
obtain the necessary documents in connection therewith and collect the proceeds thereof, (C) enforce payment of Receivables by
legal proceedings or otherwise, (D) exercise all of such Borrower’s or Guarantor’s rights and remedies to collect any
Receivable or other Collateral, (E) in a commercially reasonable manner, sell or assign any Receivable upon such terms, for such
amount and at such time or times as the Agent deems advisable, (F) settle, adjust, compromise, extend or renew an Account, (G)
discharge and release any Receivable, (H) prepare, file and sign such Borrower’s or Guarantor’s name on any proof of
claim in bankruptcy or other similar document against an Account Debtor or other such Borrower or Guarantor in respect of any Receivables
or other Collateral, (I) notify the post office authorities to change the address for delivery of remittances from Account Debtors
or other Borrowers or Guarantors in respect of Receivables or other proceeds of Collateral to an address designated by Agent, and
open and dispose of all mail addressed to any Borrower or Guarantor and handle and store all mail relating to the Collateral, provided,
that Agent shall turn over to such Borrower or Guarantor any such mail that that does not constitute a remittance from an Account
Debtor or other Borrower or Guarantor in respect of Receivables or other proceeds of Collateral; (J) do all acts and things which
are necessary, in Agent’s determination, to fulfill such Borrower’s or Guarantor’s obligations under this Agreement
and the other Financing Agreements and (K) subject to the Intercreditor Agreement, with respect to Intellectual Property, execute,
deliver and record, any and all agreements, instruments, documents and papers to evidence the Agent’s security interest in
such Intellectual Property and the goodwill and general intangibles of Borrowers and Guarantors relating thereto or represented
thereby, assign any Intellectual Property or license, throughout the world, (ii) at any time an Event of Default has occurred and
is continuing and during any Compliance Period, (A) have access to any lockbox or postal box into which remittances from Account
Debtors or other Borrowers or Guarantors in respect of Receivables or other proceeds of Collateral are sent or received, (B) endorse
such Borrower’s or Guarantor’s name upon any items of payment in respect of Receivables or constituting Collateral
or otherwise received by Agent and any Lender and deposit the same in Agent’s account for application to the Obligations,
(C) take control in any manner of any item of payment in respect of Receivables or constituting collateral or otherwise received
in or for deposit in the Blocked Accounts or otherwise received by Agent or any Lender, (D) to file a carbon, photographic or other
reproduction of this Agreement or any financing statement with respect to the Collateral as a financing statement and to file any
other financing statement or amendment of a financing statement (which does not add new collateral or add a debtor) in such offices
as Agent in its sole discretion deems necessary or desirable to perfect and to maintain the perfection and priority of Agent’s
security interest in the Collateral, (E) to contact and enter into one or more agreements with the issuers of uncertificated Securities
which are Collateral or with securities intermediaries holding Collateral as may be necessary or advisable to give Agent Control
over such Collateral, (F) to demand payment or enforce payment of the Receivables in the name of Agent or such Borrower or Guarantor
and to endorse any and all checks, drafts, and other instruments for the payment of money relating to the Receivables, (G) to sign
such Borrower’s or Guarantor’s name on any invoice or bill of lading relating to the Receivables, drafts against any
Account Debtor of the Borrower or Guarantor, assignments and verifications of Receivables, (H) to settle, adjust, compromise, extend
or renew the Receivables, (I) to settle, adjust or compromise any legal proceedings brought to collect Receivables, (J) to prepare,
file and sign such Borrower’s or Guarantor’s name on any notice of Lien, assignment or satisfaction of Lien or similar
document in connection with the Receivables, and (K) to change the address for delivery of mail addressed to such Borrower or Guarantor
to such address as Agent may designate and to receive, open and dispose of all mail addressed to such Borrower or Guarantor, (iii)
at any time to (A) endorse Borrower’s name upon any Chattel Paper, document, Instrument, invoice, or similar document or
agreement relating to any Receivable or any Goods pertaining thereto or any other Collateral, including any warehouse or other
receipts, or bills of lading and other negotiable or non-negotiable documents, and (B) sign such Borrower’s or Guarantor’s
name on any verification of Receivables and notices thereof to Account Debtors or any secondary Guarantors or other Guarantors
in respect thereof. Such Borrower or Guarantor agrees to reimburse Agent on demand for any payment made or any expense incurred
by Agent in connection with any of the foregoing; provided that, this authorization shall not relieve such Borrower or Guarantor
of any of its obligations under this Agreement. All acts of said attorney or designee are hereby ratified and approved. The powers
conferred on Agent, for the benefit of the Agent and Lenders under this Section 7.7 are solely to protect Agent’s
interests in the Collateral and shall not impose any duty upon Agent or any Lender to exercise any such powers. Each Borrower and
Guarantor hereby releases Agent and Lenders and their respective officers, employees and designees from any liabilities arising
from any act or acts under this power of attorney and in furtherance thereof, whether of omission or commission, except as a result
of Agent’s or any Lender’s own gross negligence or willful misconduct.


 






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(b)              
Nature of Appointment; Limitation of Duty. THE APPOINTMENT OF AGENT AS PROXY AND ATTORNEY-IN-FACT IN THIS
SECTION 7.7 IS COUPLED WITH AN INTEREST AND SHALL BE IRREVOCABLE UNTIL THE DATE ON WHICH THIS AGREEMENT IS TERMINATED
IN ACCORDANCE WITH SECTION 13. NOTWITHSTANDING ANYTHING CONTAINED HEREIN, NEITHER AGENT, NOR ANY LENDER, NOR ANY OF
THEIR RESPECTIVE AFFILIATES, OFFICERS, DIRECTORS, EMPLOYEES, AGENTS OR REPRESENTATIVES SHALL HAVE ANY DUTY TO EXERCISE ANY RIGHT
OR POWER GRANTED HEREUNDER OR OTHERWISE OR TO PRESERVE THE SAME AND SHALL NOT BE LIABLE FOR ANY FAILURE TO DO SO OR FOR ANY DELAY
IN DOING SO, EXCEPT IN RESPECT OF DAMAGES ATTRIBUTABLE SOLELY TO THEIR OWN GROSS NEGLIGENCE OR WILLFUL MISCONDUCT AS FINALLY DETERMINED
BY A COURT OF COMPETENT JURISDICTION; PROVIDED THAT, IN NO EVENT SHALL THEY BE LIABLE FOR ANY PUNITIVE, EXEMPLARY, INDIRECT
OR CONSEQUENTIAL DAMAGES.


 


 


 


 


 


 


 


 


 


 


 


 


 






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7.8             
Right to Cure. Agent may, at its option, upon written notice to Administrative Borrower, (a) cure any default
by any Borrower or Guarantor under any material agreement with a third party that materially and adversely affects the Collateral,
its value or the ability of Agent to collect, sell or otherwise dispose of the Collateral or the rights and remedies of Agent or
any Lender therein or the ability of any Borrower or Guarantor to perform its obligations hereunder or under any of the other Financing
Agreements, (b) pay or bond on appeal any judgment entered against any Borrower or Guarantor, (c) discharge taxes, liens, security
interests or other encumbrances at any time levied on or existing with respect to the Collateral and (d) pay any amount, incur
any expense or perform any act which, in Agent’s reasonable judgment, is necessary or appropriate to preserve, protect, insure
or maintain the Collateral and the rights of Agent and Lenders with respect thereto. Agent may add any amounts so expended to the
Obligations and charge any Borrower’s account therefor, such amounts to be repayable by Borrowers on demand. Agent and Lenders
shall be under no obligation to effect such cure, payment or bonding and shall not, by doing so, be deemed to have assumed any
obligation or liability of any Borrower or Guarantor. Any payment made or other action taken by Agent or any Lender under this
Section shall be without prejudice to any right to assert an Event of Default hereunder and to proceed accordingly.


 


7.9             
Access to Premises. From time to time as reasonably requested by Agent, at the cost and expense (subject to
Section 9.22 hereof) of Borrowers, (a) Agent or its designee shall have reasonable access, so as (if no Event of Default
has occurred and is continuing) not to interfere with the operations of such Borrower or Guarantor to all of each Borrower’s
and Guarantor’s premises during normal business hours and after notice to Administrative Borrower, or at any time and without
notice to any Borrower or any Guarantor if an Event of Default has occurred and is continuing, for the purposes of inspecting,
verifying and auditing the Collateral and all of each Borrower’s and Guarantor’s leases, books and records, including
the Records, and (b) each Borrower and Guarantor shall promptly furnish to Agent such copies of such leases, books and records
or extracts therefrom as Agent may request (subject to the confidentiality agreement set forth in Section 13.5 hereof),
and Agent or any Lender or Agent’s designee may use during normal business hours such of any Borrower’s and Guarantor’s
personnel, Equipment, supplies and premises as may be reasonably necessary for the foregoing (and as will not materially interfere
with the business of the Loan Parties) and if an Event of Default has occurred and is continuing for the collection of Receivables
and realization of other Collateral. Borrowers and Guarantors further agree that during the course of such on-site Record examinations;
Agent may review reports by retail store location of sales and operating profits of Borrowers and Guarantors, but may not make
copies of such reports or remove them from such Borrower’s or Guarantor’s premises.


 


		Section 8.	REPRESENTATIONS AND WARRANTIES



 


Each Borrower and Guarantor hereby represents
and warrants to Agent, Lenders and Issuing Bank the following, the truth and accuracy of which are a continuing condition of the
making of Loans and Issuing Bank’s providing of Letters of Credit:


 


8.1             
Corporate Existence, Power and Authority. Each Borrower and Guarantor is a corporation duly organized and
in good standing under the laws of its jurisdiction of incorporation and is duly qualified as a foreign corporation and in good
standing in all states or other jurisdictions where the nature and extent of the business transacted by it or the ownership of
assets makes such qualification necessary, except for those other jurisdictions in which the failure to so qualify would not have
a Material Adverse Effect. The execution, delivery and performance of this Agreement, the other Financing Agreements and the transactions
contemplated hereunder and thereunder (a) are all within each Borrower’s and Guarantor’s company powers, (b) have been
duly authorized, (c) are not in contravention of law or the terms of any Borrower’s or Guarantor’s certificate of formation,
operating agreement, or other organizational documentation, or any indenture, agreement or undertaking to which any Borrower or
Guarantor is a party or by which any Borrower or Guarantor or its property are bound and (d) will not result in the creation or
imposition of, or require or give rise to any obligation to grant, any lien, security interest, charge or other encumbrance upon
any property of any Borrower or Guarantor, except, (i) with respect to (c) above, where such contravention of law would not have
a Material Adverse Effect and (ii) with respect to (d) above, the creation of the security interest in the Collateral in favor
of Agent and Secured Parties pursuant to the terms of the Financing Agreements. This Agreement and the other Financing Agreements
to which any Borrower or Guarantor is a party constitute legal, valid and binding obligations of such Borrower and Guarantor enforceable
in accordance with their respective terms except as such enforceability may be limited by bankruptcy, insolvency, moratorium or
similar laws limiting creditors’ rights generally or by general equitable principles.


 






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8.2             
Name; State of Organization; Chief Executive Office; Collateral Locations.


 


(a)              
The exact legal name of each Borrower and Guarantor is as set forth on the signature page of this Agreement and in
the Information Certificate. No Borrower or Guarantor has, during the five years prior to the Closing Date, been known by or used
any other corporate or fictitious name or been a party to any merger or consolidation, or acquired all or substantially all of
the assets of any Person, or acquired any of its property or assets out of the ordinary course of business, except as set forth
in the Information Certificate.


 


(b)              
Each Borrower and Guarantor is an organization of the type and organized in the jurisdiction set forth in the Information
Certificate. The Information Certificate accurately sets forth the organizational identification number of each Borrower and Guarantor
or accurately states that such Borrower or Guarantor has none and accurately sets forth the federal employer identification number
of each Borrower and Guarantor.


 


(c)              
The chief executive office and mailing address of each Borrower and Guarantor and each Borrower’s and Guarantor’s
Records concerning Accounts are located only at the address identified as such in Schedule 8.2 hereto and its only
other places of business and the only other locations of Collateral, if any, are the addresses set forth in Schedule 8.2
hereto, subject to the rights of any Borrower or Guarantor to establish new locations in accordance with Section 9.2
below. The Information Certificate correctly identifies, as of the Closing Date, any of such locations which are not owned by a
Borrower or Guarantor and sets forth the owners and/or operators of all locations which are not retail store locations.


 


8.3             
Financial Statements; No Material Adverse Change. All financial statements relating to any Borrower or Guarantor
which have been or may hereafter be delivered by any Borrower or Guarantor to Agent and Lenders have been prepared in accordance
with GAAP (except as otherwise disclosed in any notes thereto and as indicated in the notes thereto and as to any interim financial
statements, to the extent such statements are subject to normal year-end adjustments and do not include any notes) and fairly present
in all material respects the financial condition and the results of operation of such Borrower and Guarantor as at the dates and
for the periods set forth therein. Except as disclosed in any interim financial statements furnished by Borrowers and Guarantors
to Agent prior to the date of this Agreement, there has been no act, condition or event which has had or is reasonably likely to
have a Material Adverse Effect since the date of the most recent audited financial statements of any Borrower or Guarantor furnished
by any Borrower or Guarantor to Agent prior to the date of this Agreement.


 






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8.4             
Priority of Liens; Title to Properties. Upon the filing of the UCC financing statements required pursuant
to the Financing Agreements and the recording of security agreements with the United States Patent and Trademark Office within
fifteen (15) days of the date hereof and United States Copyright Office within fifteen (15) days of the date hereof, the security
interests and liens granted to Agent under this Agreement and the other Financing Agreements shall constitute valid and perfected
liens and security interests in and upon the Collateral in accordance with the terms hereof and with the priority required by the
Financing Agreements, subject only to the liens indicated on Schedule 8.4 hereto and the other liens permitted under
Section 9.8 hereof (a) except for Borrower’s money, and vehicles and other assets the perfection of a security
interest in which is governed by Section 9-303 of the Uniform Commercial Code, (b) subject to, with respect to Deposit Accounts,
Section 5.2(d) hereof; and (c) with respect to Intellectual Property, only if and to the extent perfection may be achieved
by the filing of security interests in the United States Patent and Trademark Office and United States Copyright Office), except
that additional filings may have to be made in the United States Patent and Trademark Office and United States Copyright Office,
as applicable, to perfect the security interest and lien of Agent in any issuances, registrations, or applications for registration
of any Intellectual Property acquired by any Borrower or Guarantor after the date hereof. Each Borrower and Guarantor has good
and marketable fee simple title to or valid leasehold interests in all of its Real Property and good, valid and merchantable title
to, or a license, option or other right to use, all of its other properties and assets subject to no liens, mortgages, pledges,
security interests, charges or other encumbrances of any kind, except those granted to Agent and such others as are specifically
listed on Schedule 8.4 hereto or permitted under Section 9.8 hereof.


 


8.5             
Tax Returns. Each Borrower and Guarantor has filed, or caused to be filed, in a timely manner (including any
extensions) all Federal income tax returns and all other material tax returns, reports and declarations which are required to be
filed by it. All information in such tax returns, reports and declarations is complete and accurate in all material respects. Each
Borrower and Guarantor has paid or caused to be paid all taxes due and payable or claimed due and payable in any assessment received
by it, except taxes (a) the validity or amount of which are being contested in good faith by appropriate proceedings diligently
pursued and available to such Borrower or Guarantor and with respect to which adequate reserves have been set aside on its books
or (b) the non-payment of which could not reasonably be expected to have a Material Adverse Effect. Adequate provision has been
made for the payment of all accrued and unpaid material Federal, State, county, local, foreign and other taxes whether or not yet
due and payable and whether or not disputed.


 


8.6             
Litigation. Except as set forth on Schedule 8.6 hereto, there is no investigation, action, suit,
proceeding or claim by any Governmental Authority or Person pending, or to the best of any Borrower’s or Guarantor’s
knowledge threatened in writing, against or affecting any Borrower or Guarantor, its or their assets or business, or against or
affecting any transactions contemplated by this Agreement that (i) is not covered by insurance (except for normal deductibles)
as to which there is a reasonable possibility of an adverse determination that, if adversely determined, could reasonably be expected,
individually or in the aggregate, to result in a Material Adverse Effect, or (ii) involves any challenge to the validity or enforceability
of any material provision of any Financing Agreement (including, without limitation, any provision relating to the Borrowers’
or Guarantors’ obligations to repay the Obligations or any provision relating to the validity or perfection of any lien created
by any Financing Agreement).


 






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8.7             
Compliance with Other Agreements and Applicable Laws. Borrowers and Guarantors are not in default in any respect
under, or in violation in any material respect of any the terms of, any agreement, contract, instrument, lease or other commitment
to which it is a party or by which it or any of its assets are bound which could reasonably be expected to have a Material Adverse
Effect. Except as could not reasonably be expected to have a Material Adverse Effect, Borrowers and Guarantors are in compliance
with the requirements of all applicable laws, rules, regulations and orders of any Governmental Authority relating to their businesses.


 


8.8             
Environmental Compliance.


 


(a)              
Except as would not reasonably be expected to have a Material Adverse Effect, (i) Borrowers, Guarantors and any Subsidiary
of any Borrower or Guarantor have not generated, used, stored, treated, transported, manufactured, handled, produced or disposed
of any Hazardous Materials, on or off its premises (whether or not owned by it) in any manner which at any time violates in any
material respect any applicable Environmental Law or any permit issued to Borrower under Environmental Law, and (ii) the operations
of Borrowers, Guarantors and any Subsidiary of any Borrower or Guarantor complies in all material respects with all Environmental
Laws and all permits issued to Borrowers and Guarantors under Environmental Law.


 


(b)              
Except as would not reasonably be expected to have a Material Adverse Effect, there has been no investigation by
any Governmental Authority or any proceeding, complaint, order, directive, claim, citation or notice by any Governmental Authority
or any other Person nor is any pending or to the best of any Borrower’s or Guarantor’s knowledge threatened, with respect
to any non compliance with or violation of the requirements of any Environmental Law by any Borrower or Guarantor and any Subsidiary
of any Borrower or Guarantor or the release, spill or discharge, threatened or actual, of any Hazardous Material or the generation,
use, storage, treatment, transportation, manufacture, handling, production or disposal of any Hazardous Materials by any Borrower
or Subsidiary of Borrower or any other environmental matter involving Borrower or any Subsidiary of Borrower.


 


(c)              
Except as would not reasonably be expected to have a Material Adverse Effect, Borrowers, Guarantors and their Subsidiaries
have no material liability (contingent or otherwise) in connection with a release, spill or discharge, threatened or actual, of
any Hazardous Materials or the generation, use, storage, treatment, transportation, manufacture, handling, production or disposal
of any Hazardous Materials.


 


(d)              
Except as would not reasonably be expected to have a Material Adverse Effect, Guarantors and their Subsidiaries have
all permits required to be obtained or filed in connection with the operations of Borrowers and Guarantors under any Environmental
Law and all of such licenses, certificates, approvals or similar authorizations and other permits are valid and in full force and
effect.


 






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(e)              
This Section 8.8 sets forth the sole representations and warranties of Borrower with respect to Environmental
Laws and Hazardous Materials and, notwithstanding any other provision in this Agreement to the contrary, no other representation
or warranty is made in this Agreement with respect to environmental matters.


 


8.9             
Employee Benefits.


 


(a)              
Except as could not reasonably be expected to have a Material Adverse Effect, each Plan has been established, maintained,
funded, operated and administrated in compliance in all material respects with the applicable provisions of ERISA, the Code and
other Federal or State law and each Plan which is intended to qualify under Section 401(a) of the Code has received a favorable
determination letter (or a favorable opinion letter) from the Internal Revenue Service or is still within the remedial amendment
period (as defined in Section 401(b) of the Code) to obtain a favorable determination letter and, to the best of each Borrower’s
and Guarantor’s knowledge, nothing has occurred that could reasonably be expected to cause the revocation of such letter
or the unavailability of reliance on such letter. Each Borrower and Guarantor and its respective ERISA Affiliates have made all
required contributions to any Plan subject to Section 412 of the Code, and no application for a funding waiver or an extension
of any amortization period pursuant to Section 412 of the Code has been made with respect to any such Plan.


 


(b)              
Except as could not reasonably be expected to have a Material Adverse Effect, (i) there are no pending, or to the
best of each Borrower’s and Guarantor’s knowledge, threatened claims, actions or lawsuits, or action by any Governmental
Authority, with respect to any Plan, and (ii) there has been no non-exempt prohibited transaction under Section 406 of ERISA or
violation of the fiduciary responsibility rules under Section 404(a)(1) of ERISA with respect to any Plan.


 


(c)              
Except as could not reasonably be expected to have a Material Adverse Effect, (i) no ERISA Event has occurred or
is reasonably expected to occur; (ii) the current value of the assets of each Plan (determined in accordance with the assumptions
used for funding such Plan pursuant to Section 412 of the Code) are not exceeded by such Plan’s liabilities under Section 4001(a)(16)
of ERISA in an amount that could reasonably be expected to have a Material Adverse Effect; (iii) no Borrower or Guarantor nor any
of its respective ERISA Affiliates have incurred nor do any of them reasonably expect to incur any liability under Title IV
of ERISA with respect to any Plan (other than premiums due and not delinquent under Section 4007 of ERISA); (iv) neither Borrower
nor any of its ERISA Affiliates have incurred nor do any of them reasonably expect to incur any liability (and no event has occurred
which, with the giving of notice under Section 4219 of ERISA, would result in such liability) under Section 4201 or 4243
of ERISA with respect to a Multiemployer Plan; (v) neither Borrower nor any of its ERISA Affiliates has engaged in a transaction
that would be subject to Section 4069 or 4212(c) of ERISA; and (vi) no Plan is a “welfare benefit plan” (as defined
in Section 3(1) of ERISA that provides post-termination or retiree life insurance, health or other welfare benefits to any person,
except pursuant to Section 4980B of the Code or any other applicable law and with respect to which the recipient pays the full
premium cost of such coverage.


 






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8.10         
Bank Accounts. All of the Deposit Accounts, investment accounts or other accounts in the name of or used by
any Borrower or Guarantor maintained at any bank or other financial institution are set forth in Schedule 8.10 hereto,
subject to the right of each Borrower and Guarantor to establish new accounts in accordance with Section 5.2 hereof.


 


8.11         
Intellectual Property. . Each Borrower and Guarantor owns or licenses or otherwise has the right to use all
Intellectual Property necessary for the operation of its business as presently conducted (collectively, “IP Rights”).
On the Closing Date, no Borrower or Guarantor owns any Intellectual Property registered, or subject to pending applications, in
the United States Patent and Trademark Office or any similar office or agency in the United States, any State thereof, any political
subdivision thereof or in any other country, other than those described in Schedule 8.11(a) hereto and, as of the Closing
Date, has not granted any licenses with respect to any Intellectual Property that is material to the conduct of such Borrower’s
or Guarantor’s business other than as set forth in Schedule 8.11(b) hereto. Each Borrower and Guarantor is the
sole and exclusive owner of the entire and unencumbered right, title, and interest in and to all Intellectual Property used in
the operation of its business, or, in the case of licenses and options granted to such Borrower or Guarantor with respect to Intellectual
Property owned by other Persons, each Borrower or Guarantor, as the case may be, has a valid and enforceable license, option or
other right, as the case may be, to use such Intellectual Property; and except as could not reasonably be expected to have a Material
Adverse Effect, the Intellectual Property owned by each Borrower or Guarantor is valid, subsisting, unexpired (except as the result
of the expiration of patents and copyrights at the end of their statutory term), and enforceable and has not been abandoned or
adjudged invalid or unenforceable, in whole or part. Except as described in Schedule 8.11(c) hereto, to each Borrowers’
and Guarantor’s knowledge, no event has occurred which could reasonably be expected to result in after notice or passage
of time or both, the revocation, suspension or termination of Intellectual Property rights included in the Collateral, the revocation,
suspension or termination of which could reasonably be expected to have a Material Adverse Effect. To the best of each Loan Party’s
knowledge, except as could not reasonably be expected to have a Material Adverse Effect, no IP Rights, advertising, product, process,
method, substance, part or other material used by any Loan Party or any Subsidiary in the operation of their respective businesses
as currently conducted infringes upon any rights held by any Person. No written claim or litigation regarding any of the IP Rights,
is pending or, to the knowledge of any Loan Party, threatened against any Loan Party or Subsidiary. Schedule 8.11(d)
hereto sets forth all of the agreements or other arrangements of Borrowers and Guarantors pursuant to which Borrower has a license,
option, or other right to use any trademarks, logos, designs or other intellectual property that is material to such Borrower’s
or Guarantor’s business and owned by another Person as in effect on the Closing Date (collectively, together with such agreements
or other arrangements as may be entered into by any Borrower or Guarantor after the Closing Date, collectively, the “License
Agreements” and individually, a “License Agreement”). No material trademark, service mark, copyright
or other Intellectual Property at any time used by a Borrower which is owned by another Person, or owned by any Borrower or Guarantor
subject to any security interest, lien, collateral assignment, pledge or other encumbrance in favor of any Person other than Agent,
is affixed to any Eligible Inventory, except (x) as set forth in any Promotional Agreement, (y) to the extent permitted
under the terms of the License Agreements listed on Schedule 8.11(d) hereto or (z) to the extent the sale of Inventory
to which such Intellectual Property is affixed is permitted to be sold by any Borrower or Guarantor under applicable law (including
the United States Copyright Act of 1976). As of the Closing Date, no Borrower or Guarantor licenses any Intellectual Property,
except pursuant to the Promotional Agreements.


 






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8.12         
Subsidiaries; Capitalization; Solvency.


 


(a)              
Each Borrower and Guarantor does not have any direct or indirect Subsidiaries and is not engaged in any joint venture
or partnership except as set forth in Schedule 8.12 hereto and except as may be acquired, formed or entered into in
connection with a Permitted Acquisition or otherwise and in accordance with Section 9.20 hereof.


 


(b)              
Each Borrower and Guarantor is the record and beneficial owner of all of the issued and outstanding shares of Capital
Stock of each of the Subsidiaries listed on Schedule 8.12 hereto as being owned by such Borrower or Guarantor and except
as described on Schedule 8.12 hereto, there are no proxies, irrevocable or otherwise, with respect to such shares and
no equity Securities of any of the Subsidiaries are or may become required to be issued by reason of any options, warrants, rights
to subscribe to, calls or commitments of any kind or nature and there are no contracts, commitments, understandings or arrangements
by which any Subsidiary is or may become bound to issue additional shares of its Capital Stock or Securities convertible into or
exchangeable for such shares.


 


(c)              
As of the Closing Date, the issued and outstanding shares of Capital Stock of each Borrower and Subsidiary Guarantor
are directly and beneficially owned and held by the Persons indicated in the Information Certificate, and in each case all of such
shares have been duly authorized and are fully paid and non-assessable, free and clear of all claims, liens, pledges and encumbrances
of any kind, except for liens created hereunder and under the other Financing Agreements or as permitted by Section 9.8
hereof.


 


(d)              
The Loan Parties taken as a whole, are Solvent and will continue to be Solvent immediately after giving effect to
the creation of the Obligations, the granting of security interests of Agent and the other transactions contemplated hereunder,
or in connection with any of the foregoing.


 


8.13         
Labor Disputes.


 


(a)              
Set forth on Schedule 8.13 hereto is a list of all collective bargaining or similar agreements between
or applicable to each Borrower and Guarantor and any union, labor organization or other bargaining agent in respect of the employees
of any Borrower or Guarantor in force on the Closing Date.


 


(b)              
Except as could not reasonably be expected to have a Material Adverse Effect, (i) there is no unfair labor practice
complaint pending against any Borrower or Guarantor or, to the best of any Borrower’s or Guarantor’s knowledge, threatened
against it, before the National Labor Relations Board, and no grievance or significant arbitration proceeding arising out of or
under any collective bargaining agreement is pending on the Closing Date against any Borrower or Guarantor or, to best of any Borrower’s
or Guarantor’s knowledge, threatened against it, (ii) there is no strike, labor dispute, slowdown or stoppage is pending
against any Borrower or Guarantor or, to the best of any Borrower’s or Guarantor’s knowledge, threatened against any
Borrower or Guarantor, and (iii) each Borrower and Guarantor is in compliance with all applicable laws and orders with respect
to employment (including applicable laws regarding wage and hour requirements, immigration status, discrimination in employment,
employee health and safety, and collective bargaining).


 






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8.14         
Restrictions on Subsidiaries. Except for restrictions contained in this Agreement, the other Financing Agreements
or any other agreement with respect to Indebtedness of any Borrower or Guarantor permitted hereunder, there are no contractual
restrictions binding on any Subsidiary of any Borrower or Guarantor which prohibit or otherwise materially restrict (unless permitted
pursuant to Section 9.16) (a) the transfer of cash or other assets (i) between any Borrower or Guarantor and any of
its or their Subsidiaries or (ii) between any Subsidiaries of any Borrower or Guarantor or (b) the ability of any Borrower or Guarantor
or any of its or their Subsidiaries to incur Indebtedness or grant security interests to Agent or any Lender in the Collateral.


 


8.15         
Material Contracts. Schedule 8.15 hereto sets forth all Material Contracts to which any Borrower
or Guarantor is a party or is bound as of the Closing Date. Borrowers and Guarantors have delivered true, correct and complete
copies of such Material Contracts to Agent on or before the date hereof. Borrowers and Guarantors are not in breach or in default
in any material respect of or under any Material Contract and have not received any notice of the intention of any other party
thereto to terminate any Material Contract except as would not result in a Material Adverse Effect.


 


8.16         
Credit Card Agreements. Set forth in Schedule 8.16 hereto is a correct and complete list of all
of the Credit Card Agreements existing as of the Closing Date between or among any Borrower, Guarantor or any of its Subsidiaries,
the Credit Card Issuers and/or the Credit Card Processors. The Credit Card Agreements constitute all of such agreements necessary
for each Borrower to operate its business as presently conducted with respect to credit cards and debit cards and no Receivables
of any Borrower arise from purchases by customers of Inventory with credit cards or debit cards, other than those which are issued
by Credit Card Issuers with whom such Borrower has entered into one of the Credit Card Agreements set forth on Schedule 8.16
hereto or with whom such Borrower has entered into a Credit Card Agreement in accordance with Section 9.18 hereof.
Each of the Credit Card Agreements constitutes the legal, valid and binding obligations of the Borrower that is party thereto and
to the best of each Borrower’s and Guarantor’s knowledge, the other parties thereto, enforceable in accordance with
their respective terms and is in full force and effect. Except as could not reasonably be expected to (a) have a Material Adverse
Effect or (b) result in the cessation of the transfer of payments under any Credit Card Agreement to Blocked Accounts as required
under this Agreement, no default or event of default, or act, condition or event which after notice or passage of time or both,
would constitute a material default or a material event of default under any of the Credit Card Agreements has occurred and is
continuing. The applicable Borrower and the other parties thereto have complied with all of the terms and conditions of the Credit
Card Agreements to the extent necessary for such Borrower to be entitled to receive all payments thereunder which constitute proceeds
of Eligible Credit Card Receivables. As of the Closing Date, Borrowers have delivered, or caused to be delivered to Agent, true,
correct and complete copies of all of the Credit Card Agreements.


 






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8.17         
Investment Company Status. No Borrower or Guarantor nor any of their Subsidiaries is an “investment
company” as defined in, or subject to regulation under, the Investment Company Act of 1940.


 


8.18         
Accuracy and Completeness of Information. All information furnished by or on behalf of any Borrower or Guarantor
in writing to Agent or any Lender in connection with this Agreement or any of the other Financing Agreements or any transaction,
when taken as a whole, contemplated hereby or thereby, including all information on the Information Certificate is true and correct
in all material respects on the date as of which such information is dated or certified and does not omit any material fact necessary
in order to make such information not materially misleading. Since the date of the most recently delivered audited financial statements,
described in Section 8.3, no event or circumstance has occurred which has had or could reasonably be expected to have
a Material Adverse Effect, which has not been fully and accurately disclosed to Agent in writing prior to the date hereof. As of
the Closing Date, to the best knowledge of any Borrower, the information included in the Beneficial Ownership Certification provided
on or prior to the Closing Date to any Lender in connection with this Agreement is true and correct in all respects as of the date
so furnished.


 


8.19         
Survival of Warranties; Cumulative. All representations and warranties contained in this Agreement or any
of the other Financing Agreements shall survive the execution and delivery of this Agreement and shall be deemed to have been made
again to Agent and Lenders on the date of each additional borrowing or other credit accommodation hereunder and shall be conclusively
presumed to have been relied on by Agent and Lenders regardless of any investigation made or information possessed by Agent or
any Lender. The representations and warranties set forth herein shall be cumulative and in addition to any other representations
or warranties which any Borrower or Guarantor shall now or hereafter give, or cause to be given, to Agent or any Lender.


 


8.20         
Reaffirmation of Financing Documents. Each Borrower and Guarantor hereby confirms its respective pledges,
grants of security interests and other obligations, as applicable, under the Existing Credit Agreement and under each Existing
Pledge Agreement to which it is a party, and agrees that such pledges, grants of security interests and other obligations are not
impaired or affected in any manner whatsoever (except as amended hereby or by the Pledge Agreement) and shall continue to be in
full force and effect and shall continue to secure all the Obligations, as amended, increased and/or extended pursuant to this
Agreement. Each Guarantor hereby confirms its respective guarantees under and subject to the terms of the Guaranty to which such
Guarantor is a party, and agrees that such guarantees and other obligations, and the terms of the Guaranty to which it is a party,
are not impaired or affected in any manner whatsoever (except as amended hereby) and shall continue to be in full force and effect
and shall continue to guarantee all of the Obligations, as amended, increased and/or extended pursuant to this Agreement. Each
Borrower and Guarantor hereby further confirms that each other Financing Agreement to which it is a party is and shall continue
to be in full force and effect and the same are hereby ratified and confirmed in all respects (except as expressly amended hereby
or by any other Financing Agreement entered into in connection with this Agreement).


 


8.21         
Anti-Corruption Laws and Sanctions. Each Borrower or Guarantor, their respective Subsidiaries and their respective
officers and directors and, to the knowledge of such Borrower or Guarantor, its employees and agents, are in compliance with Anti-Corruption
Laws and applicable Sanctions in all material respects and are not knowingly engaged in any activity that would reasonably be expected
to result in any Borrower or Guarantor being designated as a Sanctioned Person. None of (a) any Borrower or Guarantor, any Subsidiary
or any of their respective directors or officers, or (b) to the knowledge of any such Borrower or Guarantor or Subsidiary, any
employee or agent of such Borrower or Guarantor or any Subsidiary that will act in any capacity in connection with or benefit from
the Credit Facility established hereby, is a Sanctioned Person. No Loan or Letter of Credit, use of proceeds or other transaction
contemplated by this Agreement or the other Financing Agreements will violate Anti-Corruption Laws or applicable Sanctions.


 






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8.22         
Regulatory Compliance.


 


(a)              
Each Borrower and Subsidiary Guarantor possesses all licenses, permits and registrations that are required to be
obtained for the operation of its business subject to renewal in the ordinary course of business, except where the failure to possess
such licenses, permits and registrations would not reasonably be expected, individually or in the aggregate, to have a Material
Adverse Effect. All such licenses, permits and registrations are in full force and effect, and there are no actions pending or
threatened in writing or, to each Borrower’s or Subsidiary Guarantor’s knowledge, otherwise threatened by any Governmental
Authority that seek the revocation, cancellation, suspension or adverse modification thereof, except as would not reasonably be
expected, individually or in the aggregate, to have a Material Adverse Effect. Each Borrower or Subsidiary Guarantor is in compliance
with all such licenses, permits and registrations, except for such non-compliance as would not reasonably be expected, individually
or in the aggregate, to have a Material Adverse Effect.


 


(b)              
Each Borrower and Subsidiary Guarantor is in compliance with, and at all times during the last three (3) years has
complied in all respects with, the Federal Food, Drug and Cosmetic Act (“FDCA”) and all regulations promulgated
thereunder and with all other laws enforced by the Food and Drug Administration (“FDA”), except for such non-compliance
as would not reasonably be expected, individually or in the aggregate, to have a Material Adverse Effect. Each Borrower and Subsidiary
Guarantor has in effect Standard Operating Procedures governing, for its private label products, recalls, product ingredient safety
reviews and regulatory filings, product claims and claim substantiation, adverse event reporting and complaint handlings. To each
Borrower’s and Subsidiary Guarantor’s knowledge, during the three (3) years prior to the Closing Date, products sold
by such Borrower or Subsidiary Guarantor were not adulterated or misbranded as defined in the applicable provisions of the FDCA
and relevant regulations; except to the extent that the liability to the Borrowers and Subsidiary Guarantors that could reasonably
be expected to result from such adulterations or misbrandings would not, in the aggregate, reasonably be expected to have a Material
Adverse Effect.


 


(c)              
No Borrower or Subsidiary Guarantor has received any written or oral notice from the FDA during the three (3) years
prior to the Closing Date of any material violation or alleged material violation of the FDCA, except to the extent that the liability
to the Borrowers and Subsidiary Guarantors that could reasonably be expected to result from such violations and alleged violations
would not, in the aggregate, reasonably be expected to have a Material Adverse Effect. No Borrower or Subsidiary Guarantor has
received any written or oral notice during the last three (3) years that the products it has sold have been the subject of any
warning letter, notice of violation, seizure, recall, injunction, regulatory enforcement action, or criminal action issued, initiated,
threatened in writing, or to any Borrower’s or Subsidiary Guarantor’s knowledge, otherwise threatened by the FDA or
any comparable Governmental Authority, except to the extent that the liability to the Borrowers and Subsidiary Guarantors that
could reasonably be expected to result from the foregoing would not, in the aggregate, reasonably be expected to have a Material
Adverse Effect. As of the Closing Date, no Borrower or Subsidiary Guarantor has any open product recalls; except to the extent
that the liability to the Borrowers and Subsidiary Guarantors that could reasonably be expected to result from such open product
recalls would not, in the aggregate, reasonably be expected to have a Material Adverse Effect.


 






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(d)              
In the three (3) years prior to the Closing Date, each Borrower and Subsidiary Guarantor has been in compliance with
the Federal Trade Commission Act with respect to the advertising and promotion, product descriptions, and claims for the products
it sells, except to the extent that such non-compliance would not reasonably be expected, individually or in the aggregate, to
have a Material Adverse Effect. No Borrower or Subsidiary Guarantor has received written notice of and, to each Borrower’s
and Subsidiary Guarantor’s knowledge, there is no written claim filed by the Federal Trade Commission against such Borrower
or Subsidiary Guarantor, alleging any violation of any of the laws implemented by it, except to the extent that such violations
would not reasonably be expected, individually or in the aggregate, to have a Material Adverse Effect.


 


(e)              
To each Borrower’s or Subsidiary Guarantor’s knowledge, during the past three (3) years, all products
sold by such Borrower or Subsidiary Guarantor were manufactured in compliance with, as applicable, FDA current Good Manufacturing
Practice regulations set forth at 21 C.F.R. Parts 110 and 111 and FDA Hazard Analysis and Critical Control Point systems and acidified
food process requirements, where relevant, except for such non-compliance that would not reasonably be expected, individually or
in the aggregate, to have a Material Adverse Effect.


 


		Section 9.	AFFIRMATIVE AND NEGATIVE COVENANTS



 


Until the Obligations have been Paid in Full,
each Borrower and each Guarantor on behalf of themselves and their Subsidiaries covenants and agrees, jointly and severally with
all of the other Borrowers and Guarantors and the Lenders, to the covenants contained in this Section 9; provided
that, notwithstanding anything to the contrary in this Section 9, all references to the defined terms “Subsidiaries”
or “Subsidiary” in this Section 9 shall exclude any Foreign Subsidiary.


 


9.1             
Maintenance of Existence.


 


(a)              
Except as permitted by Section 9.7, each Borrower and Guarantor shall at all times preserve, renew and
keep in full force and effect its corporate existence and material rights and franchises with respect thereto and maintain in full
force and effect all material governmental licenses, trademarks, tradenames, approvals, authorizations, leases, contracts and permits
necessary to carry on the business as presently conducted, except where the failure to so preserve, renew or keep in full force
and effect would not result in a Material Adverse Effect.


 






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(b)              
No Borrower or Guarantor shall change its name, type of organization, jurisdiction of organization or other legal
structure unless each of the following conditions is satisfied: (i) Agent shall have received not less than thirty (30) days prior
written notice from Administrative Borrower of such proposed change (or such shorter notice period as the Agent may agree to in
its reasonable discretion), which notice shall accurately set forth the new name; (ii) Agent shall have received a copy of the
amendment to the certificate of formation of such Borrower or Guarantor providing for the name change certified by the Secretary
of State of the jurisdiction of incorporation or organization of such Borrower or Guarantor as soon as it is available; and (iii)
Agent shall have acknowledged in writing that either (A) such change will not adversely affect the validity, perfection or priority
of Agent’s security interest in the Collateral, or (B) any action reasonably necessary to continue the perfection of any
liens in favor of Agent, on behalf of Lenders, has been completed.


 


(c)              
No Borrower or Guarantor shall change its chief executive office or its mailing address or organizational identification
number (or if it does not have one, shall not acquire one) unless Agent shall have received not less than thirty (30) days’
prior written notice from Administrative Borrower of such proposed change, which notice shall set forth such information with respect
thereto as Agent may require and Agent shall have received such agreements as Agent may reasonably require in connection therewith.


 


9.2             
New Collateral Locations. Each Borrower and Guarantor may only open new locations within the United States.
Borrower or Guarantor shall (a) give Agent ten (10) days prior written notice of the intended opening of any such new location
at which Collateral will be located (other than with respect to the opening of a retail store location for which no notice shall
be required) and (b) execute and deliver, or cause to be executed and delivered, to Agent such agreements, documents, and instruments
as Agent may deem reasonably necessary or desirable to protect its interests in the Collateral held at such location; except, that,
if (i) such new location is a retail store location, or (ii) the fair market value of all of the Collateral located at such location
is less than $250,000; provided that the aggregate Value of all Collateral located at such locations shall not exceed $2,000,000,
no Collateral Access Agreement will be required by Agent.


 


9.3             
Compliance with Laws, Regulations, Etc.


 


(a)              
Except as could not reasonably be expected to cause a Material Adverse Effect, each Borrower and Guarantor shall,
and shall cause any Subsidiary to, at all times, comply in all material respects with all laws, rules, regulations, licenses, approvals,
orders and other permits applicable to it and duly observe all applicable requirements of any foreign, Federal, State or local
Governmental Authority, the Code, the Fair Labor Standards Act of 1938, as amended, all Federal, State and local statutes, regulations,
rules and orders pertaining to sales of consumer goods (including the Federal Trade Commission Act of 1914, as amended, and all
regulations, rules and orders promulgated thereunder, and the Federal Food, Drug, and Cosmetic Act, as amended, and all regulations,
rules, guidance and orders promulgated thereunder) and all statutes, rules, regulations, orders, permits and stipulations relating
to environmental pollution and employee health and safety, including all of the Environmental Laws.


 






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(b)              
Administrative Borrower shall give written notice to Agent promptly upon any Borrower’s or Guarantor’s
receipt of any notice of the following, except if the condition giving rise to such notice could not reasonably be expected to
have a Material Adverse Effect (collectively, “Environmental Events”), (i) the occurrence of any event involving
the unpermitted release, spill or discharge, threatened or actual, of any Hazardous Material by any Borrower or Guarantor or (ii)
any investigation, proceeding, complaint, order, directive, claims, citation or notice with respect to: (A) any non-compliance
with or violation of any Environmental Law by any Borrower or Guarantor or (B) the release, spill or discharge, threatened or actual,
of any Hazardous Material by any Borrower or Guarantor (as applicable) other than in the ordinary course of business and other
than as permitted under any applicable Environmental Law. Copies of all non-privileged environmental surveys, audits, assessments,
feasibility studies and results of remedial investigations conducted in connection with an Environmental Event shall be promptly
furnished, or caused to be furnished, by such Borrower or Guarantor to Agent. Each Borrower and Guarantor shall take prompt action
to respond to any material non-compliance with any of the Environmental Event Events
and shall regularly report to Agent on such response.


 


(c)              
Without limiting the generality of the foregoing, whenever Agent reasonably determines that there is material non-compliance,
or any condition which requires any action by or on behalf of any Borrower or Guarantor in order to avoid any non compliance, with
any Environmental Law except with respect to such non-compliance that could not reasonably be expected to have a Material Adverse
Effect, Borrowers shall, at Agent’s reasonable request and Borrowers’ expense: (i) cause an independent environmental
consultant reasonably acceptable to Agent to conduct such tests of the site where non-compliance or alleged non compliance with
such Environmental Laws (including sampling and analysis, if necessary) has occurred as to such non-compliance and prepare and
deliver to Agent a report as to such non-compliance setting forth the results of such tests, a proposed plan for responding to
any environmental problems described therein, and an estimate of the costs thereof and (ii) provide to Agent a supplemental report
of such consultant whenever the scope of such non-compliance, or such Borrower’s or Guarantor’s response thereto or
the estimated costs thereof, shall change in any material respect.


 


(d)              
Each Borrower and Guarantor shall indemnify and hold harmless Agent and Lenders and their respective directors, officers,
employees, agents, invitees, representatives, successors and assigns, from and against any and all losses, claims, damages, liabilities,
costs, and expenses (including reasonable attorneys’ fees and expenses) directly or indirectly arising out of or attributable
to the use, generation, manufacture, reproduction, storage, release, threatened release, spill, discharge, disposal or presence
of a Hazardous Material on any property of a Borrower or resulting from a Borrower’s conduct, including the costs of any
required or necessary repair, cleanup or other remedial work with respect to any property of any Borrower or Guarantor and the
preparation and implementation of any closure, remedial or other required plans relating to such Hazardous Materials except to
the extent such losses, claims, damages, liabilities, costs, and expenses arise out of or are attributable to the gross negligence,
bad faith or willful misconduct of Agent or any Lender. All indemnifications in this Section 9.3 shall survive the
payment of the Obligations and the termination of this Agreement.


 


9.4             
Payment of Taxes and Claims. Each Borrower and Guarantor shall, and shall cause any Subsidiary to, duly pay
and discharge all taxes, assessments, contributions and governmental charges upon or against it or its properties or assets, except
for taxes (a) the validity or amount of which are being contested in good faith by appropriate proceedings diligently pursued and
available to such Borrower, Guarantor or such Subsidiary, as the case may be, and with respect to which adequate reserves have
been set aside on its books or (b) the non-payment of which could not reasonably be expected to have a Material Adverse Effect.


 






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9.5             
Insurance. Each Borrower and Guarantor shall, and shall cause any Subsidiary to, at all times, maintain with
financially sound and reputable insurers insurance with respect to the Collateral against loss or damage and all other insurance
of the kinds and in the amounts customarily insured against or carried by companies of established reputation engaged in the same
or similar businesses and similarly situated. Such policies of insurance shall be reasonably satisfactory to Agent as to form,
amount and insurer. Borrowers and Guarantor shall pay all premiums on any such insurance when due. Borrowers and Guarantors shall
furnish certificates, policies or endorsements to Agent as Agent shall reasonably require as proof of such insurance, and, if any
Borrower or Guarantor fails to do so, in the case of endorsements, subject to Section 9.31, Agent is authorized, but not
required, to obtain such insurance at the expense of Borrowers, provided, however, that by purchasing such insurance,
Agent shall not be deemed to have waived any Default arising from any Borrower’s or Guarantor’s failure to maintain
such insurance or pay any premiums therefor. All such insurance policies shall provide for at least thirty (30) days prior written
notice to Agent of any cancellation, amendment or reduction of coverage and that Agent may act as attorney for each Borrower and
Guarantor in obtaining, and at any time an Event of Default has occurred and is continuing, adjusting, settling, amending and canceling
such insurance. Borrowers and Guarantors shall cause Agent to be named as a loss payee and/or an additional insured, as applicable
(but without any liability for any premiums) under all casualty and property insurance policies (but not any business interruption
insurance policies) and, subject to Section 9.31, Borrowers and Guarantors shall obtain non-contributory lender’s
loss payable endorsements to all property and casualty insurance policies in form and substance reasonably satisfactory to Agent,
which provide that all proceeds thereunder with respect to any Collateral shall be payable to Agent, and that no such insurance
shall be affected by any act or neglect of the insured or owner of the property described in such policy. Except upon (a) the occurrence
and during the continuance of an Event of Default, or (b) during a Compliance Period solely to the extent the insurance proceeds
relate to any Collateral which at the time of loss was included in the calculation of the Borrowing Base, insurance proceeds may
be applied by Borrower in its discretion to the repair or replacement of any lost or damaged Collateral that gave rise to such
insurance proceeds so long as (i) in the context of replacing lost or damaged Collateral, the insurance proceeds are used to replace
such lost or damaged Collateral with like Collateral, and (ii) such repair or replacement is completed within one hundred eighty
(180) days of the receipt of insurance proceeds, or if Borrower commits in writing to undertake such repair or replacement within
such one hundred eighty (180) day period, within two hundred seventy (270) days of the date of the receipt of insurance proceeds.
Such lender’s loss payable endorsements shall specify that the proceeds of such insurance shall be payable to Agent, for
itself and the ratable benefit of the Secured Parties, Lenders and the Bank Product Providers, as its interests may appear and
further specify that Agent and Lenders shall be paid regardless of any act or omission by any Borrower, Guarantor or any of its
or their Affiliates. Without limiting any other rights of Agent or Lenders, and subject to Borrowers’ right to otherwise
use insurance proceeds as provided in this Section 9.5, any insurance proceeds received by Agent at any time may be
applied to payment of the Obligations, whether or not then due, in any order and in such manner as Agent may determine. Upon application
of such proceeds to the Revolving Loans, Revolving Loans may be available subject and pursuant to the terms hereof to be used for
the costs of repair or replacement of the Collateral lost or damages resulting in the payment of such insurance proceeds.


 






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9.6             
Financial Statements and Other Information.


 


(a)              
Each Borrower and Guarantor shall, and shall cause any Subsidiary to, keep proper books and records in which true
and complete entries shall be made of all dealings or transactions of or in relation to the Collateral and the business of such
Borrower, Guarantor and its Subsidiaries in accordance with GAAP. Borrowers and Guarantors shall promptly furnish to Agent and
Lenders all such financial and other information as Agent shall reasonably request relating to the Collateral and the assets, business
and operations of Borrowers and Guarantors, and Borrower shall notify the auditors and accountants of Borrowers and Guarantors
that Agent is authorized to obtain such information directly from them. Without limiting the foregoing, Administrative Borrower
shall furnish or cause to be furnished to Agent, the following:


 


(i)                
within forty-five (45) days after the end of each fiscal quarter, quarterly unaudited consolidated financial statements
and unaudited consolidating financial statements (including in each case balance sheets, statements of income and loss, and statements
of cash flow), all in reasonable detail, fairly presenting in all material respects the financial position and the results of the
operations of Parent and its Subsidiaries as of the end of and through such fiscal quarter, certified to be correct in all material
respects by the chief financial officer, treasurer, or other similar officer of Administrative Borrower, subject to normal year-end
adjustments and accompanied by a compliance certificate substantially in the form of Exhibit C hereto, along with a schedule
in form reasonably satisfactory to Agent of the calculations used in determining the Fixed Charge Coverage Ratio as of the end
of such quarter; provided that, during an Increased Reporting Period, Borrowers shall deliver monthly financial statements
along with a compliance certificate substantially in the form of Exhibit C hereto within thirty (30) days after the end
of each fiscal month, and


 


(ii)             
within ninety (90) days after the end of each fiscal year, audited consolidated financial statements and unaudited
consolidating financial statements of Parent and its Subsidiaries (including in each case balance sheets, statements of income
and loss, statements of cash flow and statements of shareholders’ equity), and the accompanying notes thereto, all in reasonable
detail, fairly presenting in all material respects the financial position and the results of the operations of Parent and its Subsidiaries
as of the end of and for such fiscal year, together with the unqualified opinion of independent certified public accountants with
respect to the audited consolidated financial statements, which accountants shall be an independent accounting firm selected by
Administrative Borrower and reasonably acceptable to Agent, that such audited consolidated financial statements have been prepared
in accordance with GAAP, and present fairly in all material respects the results of operations and financial condition of Parent
and its Subsidiaries as of the end of and for the fiscal year then ended, and accompanied by a compliance certificate substantially
in the form of Exhibit C hereto, and


 


(iii)           
(A) at such time as available, but in no event later than thirty (30) days after the end of each fiscal year (commencing
with the fiscal year of Borrowers ending December 31, 2019), projected consolidated financial statements (including in each
case, forecasted balance sheets and statements of income and loss, statements of cash flow, and projected Borrowing Base availability)
of Parent and its Subsidiaries for the next fiscal year, all in reasonable detail, and in a format consistent with the projections
delivered by Borrowers to Agent prior to the date hereof, together with such supporting information as Agent may reasonably request.
Such projected financial statements shall be prepared on a monthly basis for the next succeeding year. Such projections shall represent
the reasonable best estimate by Administrative Borrower of the future financial performance of Parent and its Subsidiaries for
the periods set forth therein and shall have been prepared on the basis of the assumptions set forth therein which Administrative
Borrower believes is fair and reasonable as of the date of preparation in light of current and reasonably foreseeable business
conditions (it being understood that actual results may differ from those set forth in such projected financial statements), and


 






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(B)             
at such time as the aggregate amount of consideration paid by Borrowers and Guarantors in respect of Permitted Acquisitions
equals or exceeds $7,500,000 since the date that the last projections were received by Agent pursuant to Section 9.6(a)(iii)(A)
hereof or this Section 9.6(a)(iii)(B), or in conjunction with a Material Permitted Acquisition, Administrative Borrower
shall deliver updated (from the date of the last projections received) projected financial statements, in form and substance as
required in Section 9.6(a)(iii)(A) hereof.


 


(b)              
Administrative Borrower shall, and shall cause the other Borrower(s) to notify Administrative Borrower so that it
may, promptly notify Agent in writing of the details of (i) any loss, damage, investigation, action, suit, proceeding or claim
relating to Collateral having a value of more than $1,000,000 or which if adversely determined would result in a Material Adverse
Effect, (ii) any Material Contract being terminated or materially amended or any new Material Contract entered into (in which event
Administrative Borrower shall provide Agent with a copy of such Material Contract to the extent permitted by any applicable confidentiality
provisions contained in such Material Contract, provided, that, Borrowers shall use commercially reasonable efforts to get
any appropriate consent necessary to provide Agent with such a copy), (iii) any order, judgment or decree in excess of $1,000,000
shall have been entered against any Borrower or Guarantor any of its or their properties or assets, (iv) any notification of a
material violation of laws or regulations received by any Borrower or Guarantor from a Governmental Authority, (v) any ERISA Event
that could be reasonably expected to have a Material Adverse Effect, and (vi) the occurrence of any Default or Event of Default.


 


(c)              
Promptly after the sending or filing thereof, Administrative Borrower shall send to Agent copies of (i) all reports
and registration statements which Ultimate Parent or any of its Subsidiaries files with the Securities Exchange Commission, any
national or foreign securities exchange or the National Association of Securities Dealers, Inc., and such other reports as Agent
may hereafter specifically identify to Administrative Borrower that Agent will require be provided to Agent, (ii) all press releases
and (iii) all other statements concerning material changes or developments in the material business of a Borrower or Guarantor
made available by any Borrower or Guarantor to the public.


 


(d)              
Administrative Borrower shall furnish or cause to be furnished to Agent such budgets, forecasts, projections and
other information respecting the Collateral and the business of Borrowers and Guarantors, as Agent may, from time to time, reasonably
request. Agent is hereby authorized to deliver a copy of any financial statement or any other information relating to the business
of Borrowers and Guarantors to any court or other Governmental Authority or to any Lender or Participant or prospective Lender
or Participant or any Affiliate of any Lender or Participant. Each Borrower and Guarantor hereby irrevocably authorizes and directs
all accountants or auditors to deliver to Agent, at Borrowers’ expense and without affecting any confidentiality obligations
of such accountants and auditors to Persons other than Agent, copies of the financial statements of any Borrower and Guarantor
and any reports or management letters prepared by such accountants or auditors on behalf of any Borrower or Guarantor and to disclose
to Agent and Lenders such information as they may have regarding the business of any Borrower and Guarantor. Any documents, schedules,
invoices or other papers delivered to Agent or any Lender may be destroyed or otherwise disposed of by Agent or such Lender one
(1) year after the same are delivered to Agent or such Lender, except as otherwise designated by Administrative Borrower to Agent
or such Lender in writing.


 






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(e)              
Administrative Borrower shall furnish to Agent all material notices or demands in connection with Indebtedness incurred
pursuant to Section 9.9(e), Section 9.9(g), Section 9.9(j) and Section 9.9(q) and
the loans and advances made pursuant to Section 9.10(i), in each case either received by any Borrower or Guarantor
or on its behalf promptly after the receipt thereof, or sent by any Borrower or Guarantor or on its behalf concurrently with the
sending thereof, as the case may be.


 


(f)               
Administrative Borrower shall furnish to Agent, promptly, but in any event within one (1) Business Day after the
furnishing, receipt or execution thereof, copies of (i) any amendment, waiver, consent or other written modification of the Term
Loan Documents, (ii) any notice of default or any notice related to the exercise of remedies under the Term Loan Documents, and
(iii) any other material notice, certificate or other information or document provided to, or received from, the Term Loan Agent
or the Term Loan Lenders.


 


(g)              
Administrative Borrower shall furnish to Agent concurrently with any delivery thereof to the Term Loan Agent, each
Term Loan Borrowing Base Certificate and supporting information in connection therewith and any other additional reports related
thereto that are delivered to the Term Loan Agent.


 


(h)              
Administrative Borrower shall furnish promptly following any request therefor, (i) such other information regarding
the operations, material changes in ownership of Capital Stock, business affairs and financial condition of any Borrower or Guarantor,
or compliance with the terms of this Agreement, as the Agent or any Lender may reasonably request, and (ii) information and documentation
reasonably requested by the Agent or any Lender for purposes of compliance with applicable “know your customer” and
anti-money laundering rules and regulations, including the USA PATRIOT Act and the Beneficial Ownership Regulation.


 


(i)                
Administrative Borrower shall promptly furnish to any Lender any change in the information provided in the Beneficial
Ownership Certification delivered to such Lender that would result in a change to the list of beneficial owners identified in such
certification.


 


(j)                
Administrative Borrower shall furnish to Agent copies of (i) any franchise agreements not previously delivered to
Agent prior to any related Franchise Receivables being included in the Borrowing Base and (ii) any material amendments or modifications
to any franchise agreement to which any Franchise Receivables included in the Borrowing Base are attributable.


 






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9.7             
Sale of Assets, Consolidation, Merger, Dissolution, Etc. Borrowers and Guarantors shall not and shall not
permit any Subsidiary to, directly or indirectly, (a) merge into or with or consolidate with any other Person or permit any other
Person to merge into or with or consolidate with it; provided, however, upon prior written notice to Agent:


 


(i)                
a Subsidiary (other than a Borrower) may merge into or with or consolidate with or dissolve or liquidate into another
Subsidiary;


 


(ii)             
Original Parent may merge into Parent on the Closing Date in accordance with the Valor Merger Agreement;


 


(iii)           
a Subsidiary may merge into or with or consolidate with or dissolve or liquidate into a Borrower or Guarantor (other
than Parent), and a Borrower may merge into or with or consolidate with or dissolve or liquidate into another Borrower so long
as (A) a Borrower (in the case of any such event involving a Borrower) or Guarantor (other than Parent) is the surviving entity
with respect thereto and such Borrower or Guarantor has otherwise complied with Section 9.1(b) of this Agreement (if
applicable) and all other terms of this Agreement, (B) no Default or Event of Default then exists or would occur as a result thereof,
(C) no liens, other than those permitted under the terms of this Agreement or the other Financing Agreement with regard to any
Borrower or Guarantor, on the assets of such Subsidiary then exist, and (D) such Borrower or Guarantor would not, as a result of
such transaction and upon consummation thereof, be liable for any Indebtedness or other obligations of such Subsidiary, other than
Indebtedness or other obligations which are permitted under the terms of this Agreement and the other Financing Agreements with
regard to a Borrower or Guarantor; and


 


(iv)            
a Guarantor or Borrower may merge into or with or consolidate with or dissolve or liquidate into a Borrower so long
as (A) a Borrower is the surviving entity with respect thereto and continues to be an organization of the type, domiciled in the
state and bearing the same corporate name as existed prior to such merger or consolidation, (B) no Default or Event of Default
then exists or would occur, (C) no liens, other than those permitted under the terms of this Agreement with regard to such Borrower,
on the assets of such Guarantor then exist, and (D) such Borrower would not, as a result of such transaction, be liable for any
Indebtedness or other obligations of such Guarantor or other Borrower, other than Indebtedness or other obligations which are permitted
under the terms of this Agreement with regard to such Borrower.


 


(b)              
sell, issue, assign, lease, license, transfer, abandon or otherwise dispose of any Capital Stock or any of its assets
to any other Person (whether by Division or otherwise) (or agree to do any of the foregoing unless the terms of such agreement
provide that: (i) Agent’s written consent is a condition to consummation of the prohibited action, or (ii) Payment in Full
of the Obligations and termination of this Agreement is a
condition to consummation of the prohibited action), except for:


 


(A)            
sales of Inventory in the ordinary course of business,


 


(B)             
returns and exchanges of Inventory to vendors in the ordinary course of business of a Borrower on terms and conditions
consistent with the current or prior practices of such Borrower;


 






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(C)             
the sale or other disposition of assets (other than Collateral and other than assets subject to clause (D)
of this Section below) by a Borrower or Guarantor or any Subsidiary in the ordinary course of its business that are no longer necessary
or required, worn out, non-core or obsolete, in the conduct of such Borrower’s or Guarantor’s business;


 


(D)            
sales or other dispositions by any Borrower or Guarantor or any Subsidiary of assets in connection with the closing
or sale of a retail store location (the closure of a store is not in and of itself the disposition of assets), warehouse, distribution
center or corporate office of such Borrower, Guarantor or Subsidiary in the ordinary course of business of such Borrower, Guarantor
or Subsidiary, which sale or disposition consists of leasehold interests in the premises of such store or distribution center,
the Equipment and fixtures located at such premises and the books and records relating exclusively and directly to the operations
of such store or distribution center; provided, that, as to each and all such sales and closings, (1) Agent shall have received
written notice of such sale or closing in accordance with Section 7.1(a) hereof, (2) after giving effect thereto, no
Default or Event of Default shall have occurred and be continuing, and (3) such sale shall be on commercially reasonable prices
and terms in a bona fide arm’s length transaction, (4) all Net Proceeds thereof shall be subject to Section 2.9(c),
and (5) in connection with the closure of any retail store locations pursuant to a plan where the aggregate Value of Inventory
in all such stores is greater than $10,000,000, the Loan Parties shall solicit, on a competitive basis, reasonably detailed proposals
from potential Liquidation Agents and the Loan Parties shall retain an independent, nationally recognized, professional retail
inventory liquidation firm that provides full liquidation services reasonably acceptable to the Agent (the “Liquidation
Agent”) (which for the avoidance of doubt, shall be subject to maintenance of “Chinese walls” between any
Affiliate of the Agent submitting such proposal as a potential Liquidation Agent and the Agent),


 


(E)             
in addition to the dispositions permitted in subclause (D) above, the sale or other disposition of Equipment
(including worn-out, non-core or obsolete Equipment or Equipment no longer used or useful in the business of such Borrower or Guarantor)
so long as the value of such Equipment sold in any fiscal year is equal to or less than the value of all Equipment acquired in
such year,


 


(F)             
the grant by any Borrower or Guarantor after the date hereof of a non-exclusive or exclusive license to any Person
for the use of commercially reasonable terms of Intellectual Property in the ordinary course of business, so long as no Event of
Default has occurred and is continuing at the time of the execution and delivery of the subject license or sublicense; provided,
however, (1) any such licenses or sublicenses, if exclusive, are for commercially reasonable periods of time and have commercially
reasonable geographical limitations, (2) if any such license or sublicense is for use within the United States or in any territory
or possession thereof, then, after giving effect to such license, such Borrower or Guarantor must retain sufficient rights to use
its Intellectual Property as to enable such Borrower or Guarantor to continue to conduct the material aspects of its business in
the ordinary course; (3) any such licenses or sublicenses are on commercially reasonable terms to such Borrower or Guarantor pursuant
to bona fide arm’s length transactions, (4) any such licenses or sublicenses do not impair in any material respect the value
(to Borrower, Agent or Lenders) of the Intellectual Property or the Collateral as a whole or the marketability of the Intellectual
Property or the Collateral taken as a whole, and (5) any such licenses or sublicenses do not otherwise materially and adversely
affect the potential realization by Agent and Lenders of the value of the Intellectual Property or the Collateral taken as a whole
when exercising their remedies under the terms of this Agreement and applicable law,


 






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(G)            
sales, transfers and dispositions of assets of (1) a Borrower to another Borrower, or (2) by a Guarantor to a Borrower
or another Guarantor (other than Parent (other than assets the Parent is permitted to own pursuant to Section 9.29),
provided, that, in each case such transfer is otherwise consummated (and the lien and security interest of Agent and Secured
Parties continues in such assets) in accordance with the terms of this Agreement and the other Financing Agreements,


 


(H)            
the issuance and sale by any Borrower or Guarantor of Capital Stock of such Borrower or Guarantor after the date
hereof; provided, that, (1) Agent shall have received not less than ten (10) Business Days’ prior written notice of
such issuance and sale by such Borrower, Guarantor or Subsidiary, which notice shall specify whether such shares are to be sold
pursuant to a public offering or if not a public offering, then the parties to whom such shares are to be sold, the terms of such
sale, the total amount which it is anticipated will be realized from the issuance and sale of such stock and the net cash proceeds
which it is anticipated will be received by such Borrower or Guarantor from such sale, (2) such Borrower or Guarantor shall not
be required to pay any cash dividends or repurchase or redeem such Capital Stock or make any other payments in respect thereof,
(3) the terms of such Capital Stock, and the terms and conditions of the purchase and sale thereof, shall not include any terms
that include any limitation on the right of any Borrower to request or receive Loans or Letters of Credit or the right of any Borrower
and Guarantor to amend or modify any of the terms and conditions of this Agreement or any of the other Financing Agreements or
otherwise in any way relate to or affect the arrangements of Borrowers and Guarantors with Agent and Lenders or are more restrictive
or burdensome to any Borrower or Guarantor than the terms of any Capital Stock in effect on the date hereof, (4) except as Agent
may otherwise agree in writing, upon the occurrence and continuance of an Event of Default or during a Compliance Period, all of
the proceeds of the sale and issuance of such Capital Stock shall be paid to Agent for application to the Obligations in accordance
with Section 6.4(a) or at Agent’s option, to be held as cash collateral for the Obligations provided,
that, in no event shall any Borrower or Guarantor issue any Capital Stock which would result in a Change of Control or other Event
of Default; provided, further, that conditions (1) through (3) above shall not apply to issuances and sales of Capital Stock by
any Borrower or Guarantor to any other Borrower or Guarantor (so long as such issued Capital Stock is pledged as Collateral),


 


(I)               
the issuance of Capital Stock in connection with the Closing Date Equity Contribution or the Post-Closing Equity
Contribution,


 


(J)               
the abandonment, non-renewal, failure to maintain, cancellation or sale, transfer or other disposition of Intellectual
Property which is not material to the conduct of any Borrower’s or Guarantor’s business and which has no material economic
value, and


 


(K)            
leases and subleases and other agreements related to Real Property in the ordinary course of business;


 






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(L)             
the transactions permitted under Sections 9.9, 9.10(h), 9.12 and 9.19 hereof,


 


(M)           
dispositions of cash and Cash Equivalents subject to compliance with Section 9.10(b) hereof, and


 


(N)            
in addition to the sales and dispositions permitted in clauses (A) through (M) of this Section 9.6(b),
the sale or other disposition of assets (other than Accounts and Inventory) with an aggregate fair market value not in excess of
$20,000,000 for all such assets disposed of in any fiscal year of Borrowers or as Agent may otherwise agree.


 


In connection with any disposition set forth
in Section 9.7(b) hereof, Agent shall (and is hereby irrevocably authorized by Lenders to) upon the request of Administrative
Borrower and at Borrowers’ expense, (1) upon the sale or other disposition of any Collateral permitted under Section 9.7(b)
hereof, release such Collateral from the lien of Agent hereunder, and (2) in connection with the transactions described in clause (i),
deliver to Administrative Borrower a UCC-3 partial release (or other appropriate instrument, as the case may be) in form and substance
reasonably satisfactory to Agent, as may be necessary to evidence the release of the lien in favor of Agent upon any Collateral
to the extent such Collateral is sold, transferred or otherwise disposed of in accordance with Section 9.7(b) hereof;
provided, that, (a) Administrative Borrower certifies to Agent, Issuing Bank and Lenders in writing that such sale, disposition
or other transaction is being consummated in accordance with the terms of this Agreement (and Agent, Issuing Bank and Lenders may
rely conclusively upon such certificate without any further inquiry) and such release shall only be effective upon the consummation
of such transaction, sale or other disposition, (b) Agent shall not be required to execute any such document on terms which, in
Agent’s opinion, would expose Agent to liability to any third Person or create any obligations or entail any consequence
to Agent, Issuing Bank or Lenders other than the release of such Obligor or such lien without recourse or warranty, and (c) such
release shall not in any manner discharge, affect or impair the Obligations of any Person not released or any lien upon (or obligations
of obligors in respect of) the Collateral retained by such Borrower or Guarantor;


 


(c)              
wind up, liquidate or dissolve, except (i) as permitted in clause (a) above or (ii) if such Person is
a Subsidiary of any Borrower with assets having an aggregate fair market value of less than or equal to $100,000;


 


(d)              
consummate a Division as a Dividing Person without the prior written consent of the Agent. Without limiting the foregoing,
if any Borrower or Guarantor that is a limited liability company consummates a Division (with or without the prior consent of the
Agent as required above), each Division Successor shall be required to comply with the obligations set forth in Section 9.23
and the other further assurances obligations set forth in the Financing Agreements and become a Borrower or Guarantor, as applicable,
under this Agreement and the other Financing Agreements.


 


9.8             
Encumbrances. Each Borrower and Guarantor shall not, and shall not permit any Subsidiary to, create, incur,
assume or suffer to exist any security interest, mortgage, pledge, lien, charge or other encumbrance of any nature whatsoever on
any of its assets or properties, including the Collateral, or file or permit the filing of, or permit to remain in effect, any
financing statement or other similar notice of any security interest or lien with respect to any such assets or properties, except:


 






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(a)              
the security interests and liens of Agent for itself and the benefit of the Secured Parties and the rights of setoff
of Secured Parties provided for herein or under applicable law;


 


(b)              
liens securing the payment of taxes, assessments or other governmental charges or levies either not yet delinquent
or the validity or amount of which are being contested in good faith by appropriate proceedings diligently pursued and available
to such Borrower, or Guarantor or Subsidiary, as the case may be and with respect to which adequate reserves have been set aside
on its books;


 


(c)              
non-consensual statutory liens (including without limitation, landlords’, carriers’, warehousemen’s,
mechanics, materialmen’s or other like liens but excluding liens securing the payment of taxes) arising in the ordinary course
of such Borrower’s, Guarantor’s or Subsidiary’s business to the extent: (i) such liens secure Indebtedness which
is not overdue or (ii) such liens secure Indebtedness relating to claims or liabilities which are fully insured and being defended
at the sole cost and expense and at the sole risk of the insurer or being contested in good faith by appropriate proceedings diligently
pursued and available to such Borrower, Guarantor or such Subsidiary, in each case prior to the commencement of foreclosure or
other similar proceedings and with respect to which adequate reserves have been set aside on its books;


 


(d)              
zoning restrictions, building codes, easements, licenses, covenants, land use laws, and other restrictions affecting
the use of Real Property and other similar matters of record affecting title to Real Property which do not interfere in any material
respect with the use of such Real Property or ordinary conduct of the business of such Borrower, Guarantor or such Subsidiary as
presently conducted thereon or materially impair the value of the Real Property which may be subject thereto;


 


(e)              
purchase money security interests in Equipment (including Capital Leases) and purchase money mortgages on Real Property
to secure Indebtedness permitted under Section 9.9(b) hereof;


 


(f)               
pledges and deposits of cash by any Borrower or Guarantor or Subsidiary after the date hereof in the ordinary course
of business in connection with workers’ compensation, unemployment insurance and other types of social security benefits
consistent with the current or prior practices of such Borrower or Guarantor;


 


(g)              
liens or rights of setoff against credit balances of Borrowers, Guarantors or any of their Subsidiaries with Credit
Card Issuers or Credit Card Processors or amounts owing by such Credit Card Issuers or Credit Card Processors to Borrower in the
ordinary course of business, but not liens on or rights of setoff against any other property or assets of Borrowers, pursuant to
the Credit Card Agreements to secure the obligations of Borrowers to the Credit Card Issuers or Credit Card Processors as a result
of fees and chargebacks;


 


(h)              
pledges and deposits of cash by any Borrower or Guarantor or Subsidiary after the date hereof to secure the performance
of tenders, bids, leases, trade contracts, statutory obligations and other similar obligations in each case (1) in the ordinary
course of business of such Borrower, Guarantor or Subsidiary and (2) other than for the repayment of Indebtedness;


 






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(i)                
liens arising from (i) operating leases and the precautionary UCC and PPSA financing statement or fixture filings
in respect thereof and (ii) Equipment or other materials which are not owned by any Borrower, Guarantor or Subsidiary located on
the premises of such Borrower, Guarantor or Subsidiary (but not in connection with, or as part of, the financing thereof) from
time to time in the ordinary course of business of such Borrower, Guarantor or Subsidiary and the precautionary UCC financing statement
or fixture filings in respect thereof;


 


(j)                
deposits of cash with the owner or lessor of premises leased and operated by any Borrower, Guarantor or Subsidiary
in the ordinary course of the business of such Borrower, Guarantor or Subsidiary to secure the performance by such Borrower, Guarantor
or Subsidiary of its obligations under the terms of the Real Property lease for such premises;


 


(k)              
judgments and other similar liens arising in connection with court proceedings that do not constitute an Event of
Default, provided, that, (i) such liens are being contested in good faith and by appropriate proceedings diligently pursued,
(ii) adequate reserves or other appropriate provision, if any, as are required by GAAP have been made therefor, (iii) a stay of
enforcement of any such liens is in effect and (iv) Agent may establish Reserves with respect thereto;


 


(l)                
security interests in assets of a Borrower, Guarantor or Subsidiary existing at the time such Borrower, Guarantor
or Subsidiary is acquired pursuant to a Permitted Acquisition after the date hereof; provided, that, each of the following
conditions is satisfied as determined by Agent: (i) such security interests were not granted and did not arise in connection with,
or in anticipation or contemplation of, such Permitted Acquisition, (ii) the assets subject to such security interests do not include
any assets of the type or categories that constitute Collateral other than Equipment or Real Property and do not apply to any assets
or properties of any Borrower or other Guarantor other than Equipment and Real Property of the Borrower, Guarantor or Subsidiary
so acquired, (iii) the Indebtedness secured by such assets is permitted under Section 9.9(h) hereof;


 


(m)            
other liens not otherwise permitted under any other subsection of this Section 9.8, other liens with respect
to property or assets of any Borrower, Guarantor or Subsidiary; provided that the aggregate principal amount of the Indebtedness
or other obligations secured by such liens does not exceed $1,000,000 at any time outstanding;


 


(n)              
liens or security interests arising by law or granted by any Borrower or any Guarantor in favor of a lessor, landlord,
consignee, warehouseman or bailee of a retail store location, Non-Retail Store Location or Warehouse Location, as applicable, on
personal property and/or trade fixtures owned by any Borrower or Guarantor located at such locations granted pursuant to a lease
agreement between such Borrower or Guarantor and such lessor, landlord, consignee, warehouseman or bailee, as applicable, entered
into in the ordinary course of business, in each case granted to secure obligations owed by such Borrower or Guarantor with respect
to any rental payments, service charges or other amounts owing to such lessor, landlord, consignee, warehouseman or bailee, as
applicable, pursuant to such lease agreement; provided, that, in the event that Administrative Borrower does not obtain
a Collateral Access Agreement with respect to such locations, Agent at its option, may establish a Reserve with respect to each
such location in respect of amounts at any time due or to become due to the lessor, landlord, consignee, warehouseman or bailee,
as applicable, of such location as Agent shall reasonably determine but in no event shall any Reserve with respect to rent be maintained
in respect of any location for which a Collateral Access Agreement has been delivered to Agent;


 






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(o)              
[reserved];


 


(p)              
liens incurred by any Borrower or Guarantor on any unearned premiums paid by any Borrower or Guarantor or any return
of the premium for such policy; pursuant to the Indebtedness described in Section 9.9(j) hereof;


 


(q)              
the security interests and liens set forth on Schedule 8.4 hereto;


 


(r)               
[reserved]; and


 


(s)               
liens securing the Term Loan Obligations to the extent permitted to be incurred pursuant to Section 9.9(t);
provided that such liens are at all times subject to the Intercreditor Agreement.


 


For the avoidance of doubt, for purposes of this Agreement, “encumbrance”
shall not be deemed to include licenses of Intellectual Property which are otherwise permitted under the terms of this Agreement.


 


9.9             
Indebtedness. Each Borrower and Guarantor shall not, and shall not permit any Subsidiary to, incur, create,
assume, become or be liable in any manner with respect to, or permit to exist, any Indebtedness, or guarantee, assume, endorse,
or otherwise become responsible for (directly or indirectly), the Indebtedness, performance, obligations or dividends of any other
Person, except:


 


(a)              
the Obligations;


 


(b)              
purchase money Indebtedness (including Capital Leases) arising after the date hereof to the extent secured by purchase
money security interests in Equipment (including Capital Leases) and purchase money mortgages on Real Property not to exceed $10,000,000
in the aggregate at any time outstanding so long as such security interests and mortgages do not apply to any property of such
Borrower, Guarantor or Subsidiary other than the Equipment or Real Property so acquired, and the Indebtedness secured thereby does
not exceed the cost of the Equipment or Real Property so acquired, as the case may be;


 


(c)              
guarantees by any Borrower or Guarantor or other Subsidiary of the Indebtedness or other obligations of any other
Borrowers or Guarantors so long as such Indebtedness is otherwise permitted under this Section 9.9 and such other obligations
are not prohibited by the terms of this Agreement;


 


(d)              
the Indebtedness of any Borrower, Guarantor or other Subsidiary to any other Borrower or Guarantor or other Subsidiary
arising after the date hereof pursuant to loans by any Borrower or Guarantor permitted under Sections 9.10(g), 9.10(h),
and 9.10(i) hereof;


 






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(e)              
unsecured Indebtedness of any Borrower, Guarantor or Subsidiary arising after the date hereof to any third Person
(but not to any other Borrower or Guarantor), provided, that, each of the following conditions is satisfied as determined
by Agent: (i) such Indebtedness shall be on terms and conditions acceptable to Agent and shall be subject and subordinate in right
of payment to the right of Agent and Lenders to receive the prior payment and satisfaction in full payment of all of the Obligations
pursuant to the terms of an intercreditor and subordination agreement between Agent and such third party, in form and substance
satisfactory to Agent, (ii) Agent shall have received not less than ten (10) days prior written notice of the intention of such
Borrower or Guarantor to incur such Indebtedness, which notice shall set forth in reasonable detail satisfactory to Agent the amount
of such Indebtedness, the Person or Persons to whom such Indebtedness will be owed, the interest rate, the schedule of repayments
and maturity date with respect thereto and such other information as Agent may request with respect thereto, (iii) Agent shall
have received true, correct and complete copies of all agreements, documents and instruments evidencing or otherwise related to
such Indebtedness, (iv) except as Agent may otherwise agree in writing, upon the occurrence and continuance of an Event of Default
or during a Compliance Period, all of the cash proceeds of such loans or other accommodations incurred during the occurrence of
such Event of Default or during such Compliance Period shall be, subject to the Intercreditor Agreement, paid to Agent for application
to the Obligations in such order and manner as Agent may determine or at Agent’s option, to be held as cash collateral for
the Obligations, (v) in no event shall the aggregate principal amount of such Indebtedness incurred during the term of this Agreement
exceed $5,000,000, (vi) as of the date of incurring such Indebtedness and after giving effect thereto, no Default or Event of Default
shall have occurred and be continuing, and (vii) such Borrower and Guarantor shall not, directly or indirectly, (A) amend, modify,
alter or change the terms of such Indebtedness or any agreement, document or instrument related thereto, except, that, such Borrower
or Guarantor may, after prior written notice to Agent, amend, modify, alter or change the terms thereof so as to extend the maturity
thereof, or defer the timing of any payments in respect thereof, or to forgive or cancel any portion of such Indebtedness (other
than pursuant to payments thereof), or to reduce the interest rate or any fees in connection therewith, or (B) redeem, retire,
defease, purchase or otherwise acquire such Indebtedness (except as permitted by Section 9.24), or set aside or otherwise
deposit or invest any sums for such purpose, in each case without the written consent of Agent;


 


(f)               
Indebtedness of any Borrower, Guarantor or any of their Subsidiaries entered into in the ordinary course of business
pursuant to a Hedge Agreement; provided, that, (i) such arrangements are not for speculative purposes, and (ii) such Indebtedness
shall be unsecured, except to the extent such Indebtedness constitutes part of the Obligations arising under or pursuant to Hedge
Agreements with any Bank Product Provider that are secured under the terms hereof or except to the extent secured by pledges or
deposits of cash as permitted under Section 9.8 hereof;


 


(g)              
the Indebtedness set forth on Schedule 9.9 hereto; provided, that, (i) Borrowers and Guarantors
may only make regularly scheduled payments of principal and interest in respect of such Indebtedness in accordance with the terms
of the agreement or instrument evidencing or giving rise to such Indebtedness as in effect on the date hereof, and (ii) Borrowers
and Guarantors shall not, directly or indirectly, (A) amend, modify, alter or change the terms of such Indebtedness or any agreement,
document or instrument related thereto as in effect on the date hereof except, that, Borrowers and Guarantors may, after prior
written notice to Agent, amend, modify, alter or change the terms thereof so as to extend the maturity thereof, or defer the timing
of any payments in respect thereof, or to forgive or cancel any portion of such Indebtedness (other than pursuant to payments thereof),
or to reduce the interest rate or any fees in connection therewith, or (B) redeem, retire, defease, purchase or otherwise acquire
such Indebtedness, or set aside or otherwise deposit or invest any sums for such purpose;


 






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(h)              
Indebtedness of a Borrower, Guarantor or Subsidiary existing at the time such Borrower, Guarantor or Subsidiary is
acquired pursuant to a Permitted Acquisition; provided, that, each of the following conditions is satisfied as reasonably
determined by Agent: (i) such Indebtedness was not incurred in connection with, or in anticipation or contemplation of, such Permitted
Acquisition, (ii) such Indebtedness is not secured by any assets of any Borrower or Guarantor other than Equipment or Real Property
of the Borrower or Guarantor so acquired, (iii) no other Borrower or Guarantor shall have any obligation or liability in respect
of such Indebtedness except as otherwise permitted hereof, (iv) if the amount of such Indebtedness is greater than $1,000,000,
it shall be on terms and conditions reasonably acceptable to Agent, and (v) the aggregate amount of such Indebtedness pursuant
to all Permitted Acquisitions shall not exceed $2,000,000 at any time outstanding;


 


(i)                
unsecured Indebtedness of the Parent evidenced by the Convertible Notes not to exceed the aggregate principal amount
thereof outstanding on the Closing Date;


 


(j)                
Indebtedness of Borrowers and Guarantors and their Subsidiaries in connection with the financing of insurance premiums
in respect of unearned premiums payable on certain insurance policies maintained by Borrower, provided, that, (i) in no
event shall the total amount of such Indebtedness outstanding at any time exceed $4,000,000, and (ii) such Indebtedness shall be
unsecured except to the extent of any unearned premiums paid by any Borrower or Guarantor or any return of the premium for such
policy;


 


(k)              
unsecured Indebtedness in respect of workers’ compensation claims, self insurance obligations, bankers acceptances,
performance, surety bonds and other similar obligations in the ordinary course of business;


 


(l)                
other unsecured Indebtedness of any Borrower, Guarantor or Subsidiary, in an
aggregate outstanding principal amount that at the time of, and after giving effect to, the incurrence thereof, together with any
refinancing Indebtedness in respect thereof, would not exceed $25,000,000;


 


(m)            
unsecured Indebtedness arising from the honoring by a bank or other financial institution of a check, draft or similar
instrument inadvertently drawn against insufficient funds, so long as such Indebtedness is repaid within five (5) Business Days,


 


(n)              
unsecured Indebtedness resulting from agreements to provide for working capital adjustments of purchase price, earnouts
or other similar obligations incurred in connection with Permitted Acquisitions, provided, that, such Indebtedness shall
be on terms and conditions reasonably acceptable to Agent and shall be subject and subordinate in right of payment to the right
of Agent and Lenders to receive the prior payment and satisfaction in full payment of all of the Obligations pursuant to the terms
of a subordinations agreement between Agent and such third party, in form and substance reasonably satisfactory to Agent,


 






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(o)              
the Indebtedness of any Borrower or Guarantor to any other Borrower or Guarantor arising after the date hereof pursuant
to Investments consisting of loans and advances permitted under Section 9.10(c) hereof, provided, that, as to
any such Indebtedness at any time owing by a Borrower to a Guarantor or another Borrower, (i) the Indebtedness arising pursuant
to such Investment shall be subject to, and subordinate in right of payment to, the right of Agent and Lenders to receive the prior
final payment and satisfaction in full of all of the Obligations on terms and conditions acceptable to Agent, and (ii) any such
Indebtedness arising pursuant to any such loan shall not be evidenced by a promissory note or other instrument, unless the single
original of such note or other instrument is promptly delivered to Agent upon its request to hold as part of the Collateral, with
such endorsement and/or assignment by the payee of such note or other instrument as Agent may require,


 


(p)              
Indebtedness incurred to refinance Indebtedness incurred pursuant to subsections (a), (b), (c),
(d), (e), (f), (g), (h), (i), (j), (l), (s) or (t) of this Section 9.9
(or this subsection (p)) (such Indebtedness being refinanced being referred to herein as the “Refinanced Indebtedness”)
so long as (i) such Indebtedness continues to comply with all provisions of such subsections (a), (b), (c),
(d), (e), (f), (g), (h), (i), (j), (l), (s) or (t) as applicable, (ii)
the incurrence of such Indebtedness would not otherwise cause a Default or Event of Default to occur, and (iii) the terms of such
Indebtedness (including subordination terms, if applicable) are not on terms which, taken as a whole, are materially more adverse
to Borrowers, Guarantors, Agent or any Lender than the Refinanced Indebtedness, (iv) the principal amount of such Indebtedness
as refinanced does not exceed the outstanding principal balance of the Refinanced Indebtedness plus costs, fees, expenses, and
accrued interest, and (v) the final maturity date of such refinancing Indebtedness is a maturity date that is not earlier than
ninety days after the scheduled Maturity Date,


 


(q)       [reserved];


 


(q)              
Indebtedness of any Affiliated Lender (as defined in the Term Loan Agreement)
arising in connection with the Affiliated Lender Loan Holdings (as defined in the Term Loan Agreement);


 


(r)               
[reserved];


 


(s)               
Permitted Subordinated Indebtedness; provided that (i) the Leverage Ratio for the Borrowers and Guarantors,
calculated, on a pro forma basis, as of the last Test Period prior to the date of effectiveness of the incurrence of such Permitted
Subordinated Indebtedness for which financial statements for the fiscal month, fiscal quarter or fiscal year then ended have been
(or have been required to be) delivered pursuant to Section 9.6(a)(i) and Section 9.6(a)(ii), as applicable,
both prior to and after giving effect to such Permitted Subordinated Indebtedness, is no greater than 2.50 to 1.00 and (ii) no
Default or Event of Default shall have occurred and be continuing; and


 


(t)                
the Term Loan Obligations; provided that (i) the aggregate principal amount of the Term Loan Obligations does
not exceed at any one time outstanding the Term Loan Cap Amount (as defined in the Intercreditor Agreement) and (ii) the Term Loan
Obligations and the Liens securing the Term Loan Obligations are at all times subject to the terms of the Intercreditor Agreement.


 






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Notwithstanding anything in this Section 9.9 to the contrary,
(x) the aggregate amount of any refinancing Indebtedness incurred pursuant to subsection (p) of this Section 9.9 in respect
of Refinanced Indebtedness originally incurred under subsections (b), (e), (h), (i), (j), (l), (s) or (t) shall be subject to,
and shall continue to count towards, the dollar limitations applicable to Indebtedness set forth in the applicable subsection pursuant
to which the Refinanced Indebtedness was incurred and (y) Term Loan Obligations may only be incurred under Section 9.9(t).


 


9.10         
Loans, Investments, Etc. Each Borrower and Guarantor shall not, and shall not permit any Subsidiary to, directly
or indirectly, purchase, hold or acquire (including pursuant to any merger with any Person that was not a wholly owned Subsidiary
immediately prior to such merger) any Capital Stock, evidences of Indebtedness or other Securities (including any option, warrant
or other right to acquire any of the foregoing) of, make or permit to exist any loans or advances to, or make or permit to exist
any investment or any other interest in, any other Person, or purchase or otherwise acquire (in one transaction or a series of
transactions) any assets of any other Person constituting a business unit or all or a substantial part of the assets or property
of any other Person (whether through purchase of assets, merger or otherwise), or form or acquire any Subsidiaries, or agree to
do any of the foregoing (each of the foregoing an “Investment”), except:


 


(a)              
the endorsement of instruments for collection or deposit in the ordinary course of business;


 


(b)              
Investments in cash or Cash Equivalents; provided, that, the terms and conditions of Section 5.2
and Section 6.3 hereof shall have been satisfied with respect to the Deposit Account, investment account or other account
in which such cash or Cash Equivalents are held;


 


(c)              
(i) the existing equity Investments of each Borrower and Guarantor as of the Closing Date in its Subsidiaries, provided,
that, no Borrower or Guarantor shall have any further obligations or liabilities to make any capital contributions or other additional
investments or other payments to or in or for the benefit of any of such Subsidiaries;


 


(ii)             
a Borrower or Guarantor may form a Subsidiary, provided, that,


 


(A)            
Agent shall have received promptly upon any such formation or acquisition all of the agreements, documents and instruments
required by the terms of Sections 5.2 and 9.23 hereof,


 


(B)             
as of the date of the organization, formation or acquisition of any such Subsidiary and immediately after giving
effect thereto, no Event of Default shall have occurred and be continuing, and


 


(C)             
in the event that Administrative Borrower requests that any such new Subsidiary that is directly or indirectly wholly
owned by Parent be designated a Borrower hereunder, in no event shall any Inventory, Accounts or Credit Card Receivables of such
Subsidiary be deemed Eligible Inventory, Eligible Accounts or Eligible Credit Card Receivables until Agent shall have conducted
a field examination and appraisal with respect to such assets and the results of such field examination, appraisal, and other due
diligence shall be reasonably satisfactory to Agent, and then only to the extent the criteria for Eligible Inventory, Eligible
Accounts and Eligible Credit Card Receivables set forth herein are satisfied with respect thereto (as such criteria may be reasonably
modified by Agent to reflect the results of Agent’s field examination and appraisal including any separate advance percentage
with respect to such Credit Card Receivables as Agent may reasonably determine); and


 






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(D)            
such Subsidiary shall be an operating company that engages in a Permitted Business or an operating company or a holding
company formed to make a Permitted Acquisition.


 


(d)              
Investments by a Borrower or Guarantor in another Borrower or Guarantor, in each case after the date hereof, provided,
that, (i) to the extent that such Investment gives rise to any Indebtedness, such Indebtedness is permitted hereunder, and (ii)
to the extent that such Investment gives rise to the issuance of any shares of Capital Stock, such issuance is permitted hereunder;


 


(e)              
loans and advances by any Borrower, Guarantor or Subsidiary to employees of such Borrower or Guarantor not to exceed
the principal amount of $500,000 in the aggregate at any time outstanding;


 


(f)               
stock or obligations issued to any Borrower, Guarantor or Subsidiary by any Person (or the representative of such
Person) in respect of Indebtedness of such Person owing to such Borrower or Guarantor in connection with the insolvency, bankruptcy,
receivership or reorganization of such Person or a composition or readjustment of the debts of such Person; provided, that,
the original of any such stock or instrument evidencing such obligations shall be promptly delivered to Agent, upon Agent’s
request, together with such stock power, assignment or endorsement by such Borrower or Guarantor as Agent may request;


 


(g)              
obligations of Account Debtors to any Borrower, Guarantor or Subsidiary arising from Accounts which are past due
whether or not evidenced by a promissory note made by such Account Debtor payable to such Borrower or Guarantor; provided,
that, promptly upon the receipt of the original of any such promissory note by such Borrower or Guarantor, such promissory note
shall be endorsed to the order of Agent by such Borrower or Guarantor and promptly delivered to Agent as so endorsed;


 


(h)              
loans by a Borrower or Guarantor or Subsidiary to another Borrower or Guarantor after the date hereof, provided,
that,


 


(i)                
as to all of such loans, (A) the Indebtedness arising pursuant to any such loan shall not be evidenced by a promissory
note or other instrument, unless the single original of such note or other instrument is promptly delivered to Agent upon its request
to hold as part of the Collateral, with such endorsement and/or assignment by the payee of such note or other instrument as Agent
may require, (B) as of the date of any such loan and after giving effect thereto, the Borrower or Guarantor making such loan shall
be Solvent, and (C) as of the date of any such loan and after giving effect thereto, no Default or Event of Default shall have
occurred and be continuing, and


 






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(ii)             
as to loans by a Guarantor or Subsidiary to a Borrower, (A) the Indebtedness arising pursuant to such loan shall
be subject to, and subordinate in right of payment to, the right of Agent and Lenders to receive the prior final payment and satisfaction
in full of all of the Obligations on terms and conditions reasonably acceptable to Agent, (B) promptly upon Agent’s request,
Agent shall have received a subordination agreement, in form and substance reasonably satisfactory to Agent, providing for the
terms of the subordination in right of payment of such Indebtedness of such Borrower to the prior final payment and satisfaction
in full of all of the Obligations, duly authorized, executed and delivered by such Guarantor and such Borrower, and (C) such Borrower
shall not, directly or indirectly make, or be required to make, any payments in respect of such Indebtedness owing to any Subsidiary
that is not a Borrower or Guarantor prior to the end of the then current term of this Agreement.


 


(i)                
the loans and advances set forth on Schedule 9.10 hereto; provided, that, as to such loans and
advances, Borrowers and Guarantors shall not, directly or indirectly, amend, modify, alter or change the terms of such loans and
advances or any agreement, document or instrument related thereto;


 


(j)                
other Investments or loans by a Borrower or Guarantor; provided, that, at the time of making any such Investment
and immediately after giving effect thereto (i) the Required Conditions shall have been satisfied and (ii) no Event of Default
shall have occurred and be continuing;


 


(k)              
Permitted Acquisitions;


 


(l)                
Investments by any Borrower or Guarantor in any Foreign Subsidiary, or acquisitions by any Borrower or Guarantor
of any foreign Acquired Business; provided, that, at the time of making any such Investment and immediately after giving
effect thereto (i) the Required Conditions shall have been satisfied and (ii) no Event of Default shall have occurred and be continuing;


 


(m)            
other Investments by Borrowers and Guarantors and their Subsidiaries not otherwise permitted pursuant to subsections (a)
through (l) of this Section 9.10, including, without limitation, any Investments by such Borrower or Guarantor in any
Foreign Subsidiary, provided, that, (i) the aggregate outstanding amount of all such Investments (valued at cost) shall
not exceed $5,000,000 at any time (in each case determined without regard to any write-downs or write offs), and (ii) at the time
of making any such Investment and immediately after giving effect thereto no Event of Default shall have occurred and be continuing;and


 


(n)              
the Convertible Note Hedge and Warrant Transactions.;
and


 


(o)              
the acquisition of the Affiliated Lender Loan Holdings (as defined in the
Term Loan Agreement) by any Affiliated Lender (as defined in the Term Loan Agreement).


 


9.11         
Dividends and Redemptions. Each Borrower and Guarantor shall not, directly or indirectly, declare or pay any
dividends on account of any shares of class of any Capital Stock of such Borrower or Guarantor now or hereafter outstanding, or
set aside or otherwise deposit or invest any sums for such purpose, or redeem, retire, defease, purchase or otherwise acquire any
shares of any class of Capital Stock (or set aside or otherwise deposit or invest any sums for such purpose) for any consideration
or apply or set apart any sum, or make any other distribution (by reduction of capital or otherwise) in respect of any such shares
or agree to do any of the foregoing, except that:


 






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(a)              
any Borrower or Guarantor may declare and pay such dividends or redeem, retire, defease, purchase or otherwise acquire
any shares of any class of Capital Stock for consideration in the form of shares of Capital Stock (other than capital stock described
in clause (e) of the definition of “Indebtedness”);


 


(b)              
Borrowers and Guarantors may pay dividends or make distributions to the extent of payments permitted in Section 9.12
below (other than clause (b)(iii) thereof);


 


(c)              
any Subsidiary of a Borrower or Guarantor may pay dividends or make distributions (directly or indirectly) to a Borrower
or Guarantor;


 


(d)              
for any fiscal quarter ending after June 27, 2020, Parent
may pay cash dividends to its shareholders from legally available funds therefor, provided, that, (i) the Required Conditions
have been satisfied and (ii) no Default or Event of Default shall have occurred and be continuing as of the date of any such payment
and after giving effect to such payment;


 


(e)              
Parent may repurchase Capital Stock of Parent, including, without limitation, (i) pursuant to the Convertible Note
Hedge and Warrant Documents) and (ii) Capital Stock held by or to be issued to current or former employees, directors and officers
pursuant to or in connection with any employee stock ownership, option or other equity compensation plan thereof or pursuant to
any employment or consulting arrangement or equity subscription agreement, shareholders agreement or similar agreement, provided,
that, in each case, (A) the Required Conditions have been satisfied as of the date of any such payment and (B) no Default or Event
of Default shall have occurred and be continuing as of the date of any such payment and after giving effect to such payment; and


 


(f)               
Parent may make Permitted Tax Distributions so long as no Event of Default pursuant to Sections 10.1(a)(i),
10.1(g) or 10.1(h) has occurred and is continuing or would result therefrom


 


9.12         
Transactions with Affiliates. Each Borrower and Guarantor shall not, directly or indirectly:


 


(a)              
purchase, acquire or lease any property from, or sell, transfer or lease any property or provide services to, any
officer, director or other Affiliate of such Borrower or Guarantor (other than another Borrower or Guarantor), except:


 


(i)                
in the ordinary course of (except with respect to transactions permitted under Sections 9.7, 9.8,
9.9, 9.10 or 9.11) and pursuant to the reasonable requirements of such Borrower’s or Guarantor’s
business (as the case may be) and upon fair and reasonable terms no less favorable to such Borrower or Guarantor than such Borrower
or Guarantor would obtain in a comparable arm’s length transaction with an unaffiliated Person;


 






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(ii)             
transactions permitted under Section 9.7(a) hereof;


 


(iii)           
transactions permitted under Section 9.12(b) hereof;


 


(iv)            
transactions between any Borrower and/or Guarantor and any other Borrower and/or Guarantor, provided, that,
in each case such transaction is in accordance with the terms of this Agreement and the other Financing Agreements;


 


(v)              
any Indebtedness permitted by Section 9.9(c), (d), and (o);


 


(vi)            
any Investments in a Subsidiary, or joint venture permitted by Section 9.10; and


 


(vii)         
issuances of Capital Stock.


 


(b)              
make any payments (whether by dividend, loan or otherwise) of management, consulting or other fees for management
or similar services, or of any Indebtedness owing to any officer, employee, shareholder, director or any other Affiliate of such
Borrower or Guarantor, except


 


(i)                
reasonable compensation to officers, employees and directors for services rendered to such Borrower or Guarantor
and reimbursement of expenses in the ordinary course of business of such Borrower or Guarantor;


 


(ii)             
payments to any Person that owns, directly or indirectly, 100% of the Capital Stock of Parent for actual and necessary
reasonable out-of-pocket legal and accounting, insurance, marketing, payroll and similar types of services (other than management
or sponsor fees) paid by such Person on behalf of such Borrower or Guarantor, in the ordinary course of their respective businesses
or as the same may be directly attributable to such Borrower or Guarantor, provided, that, the aggregate amount of all such
payments in any fiscal year shall not exceed $3,000,000; and


 


(iii)           
payments permitted under Section 9.24 hereof.


 


For the avoidance of doubt, the payment of Permitted Tax Distributions
shall not be subject to this Section 9.12.


 


9.13         
Compliance with ERISA. Except as could not reasonably be expected to have a Material Adverse Effect, each
Borrower and Guarantor shall, and shall with respect to any Plan cause each of its ERISA Affiliates, to: (a) maintain each Plan
in compliance in all material respects with the applicable provisions of ERISA, the Code and other Federal and State law; (b) cause
each Plan which is qualified under Section 401(a) of the Code to maintain such qualification; (c) not terminate any Plan so
as to incur any material liability to the Pension Benefit Guaranty Corporation; (d) not allow or suffer to exist any non-exempt
“prohibited transaction” (within the meaning of Section 4975 of the Code) which would be reasonably likely
to subject Borrower or any ERISA Affiliate to a material tax or penalty or other liability on prohibited transactions imposed under
Section 4975 of the Code or ERISA; (e) make all required contributions to any Plan under Section 302 of ERISA, Section 412
of the Code or the terms of such Plan; (f) not allow or suffer to exist any “accumulated funding deficiency”
(as defined in Section 412 of the Code or Section 302 of ERISA), whether or not waived, with respect to any Plan; or
(g) allow or suffer to exist any occurrence of a “reportable event” (as defined in Section 4043(c) of ERISA
or the regulations issued thereunder, except for any such event with respect to which notice has been waived pursuant to applicable
regulations) or any other event or condition which presents a material risk of termination by the Pension Benefit Guaranty Corporation
of any Plan that is a single employer plan, which termination could reasonably be expected to result in any material liability
to any Borrower or Guarantor.


 






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9.14         
Fiscal Year. Each Borrower and Guarantor shall, for financial reporting purposes, cause its fiscal year, and
the fiscal year of each of its Subsidiaries (including any Foreign Subsidiary) to end on the last Saturday of December of
each calendar year (except for 53-week years). In no event shall any Borrower or Guarantor thereafter change its fiscal year.


 


9.15         
Change in Business. Each Borrower and Guarantor shall not engage in any business other than the Permitted
Business.


 


9.16         
Limitation of Restrictions Affecting Subsidiaries. Each Borrower and Guarantor (other than Parent) shall not,
directly, or indirectly, create or otherwise cause or suffer to exist any encumbrance or restriction which prohibits or materially
limits the ability of any Subsidiary of such Borrower or Guarantor to (a) pay dividends or make other distributions or pay any
Indebtedness owed to such Borrower or Guarantor or any Subsidiary of such Borrower or Guarantor, (b) make loans or advances to
such Borrower or Guarantor or any Subsidiary of such Borrower or Guarantor, (c) transfer any of its properties or assets to such
Borrower or Guarantor or any Subsidiary of such Borrower or Guarantor, or (d) create, incur, assume or suffer to exist any lien
upon any of its property, assets or revenues, whether now owned or hereafter acquired, other than encumbrances and restrictions
arising under (i) applicable law, (ii) this Agreement or the Term Loan Agreement, (iii) customary provisions restricting subletting
or assignment of any lease (or hypothecation thereof) governing a leasehold interest of such Borrower or Guarantor or any Subsidiary
of such Borrower or Guarantor, (iv) customary restrictions on dispositions of real property interests found in reciprocal easement
agreements of such Borrower or Guarantor or any Subsidiary of such Borrower or Guarantor, (v) any agreement relating to permitted
Indebtedness incurred by a Subsidiary of such Borrower or Guarantor prior to the date on which such Subsidiary was acquired by
such Borrower or such Guarantor and outstanding on such acquisition date, (vi) the extension or continuation of contractual obligations
in existence on the date hereof and otherwise permitted hereunder; provided, that, any such encumbrances or restrictions
contained in such extension or continuation are no less favorable to Agent and Lenders than those encumbrances and restrictions
under or pursuant to the contractual obligations so extended or continued, (vii) any agreement related to an otherwise permitted
refinancing of Indebtedness permitted under the terms of this Agreement, and (viii) Indebtedness permitted to be incurred under
the terms of this Agreement with terms no more restrictive than those set forth herein.


 


9.17         
[Reserved].


 






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9.18         
Credit Card Agreements. Each Borrower shall (a) observe and perform in all material respects all material
terms, covenants, conditions and provisions of the Credit Card Agreements to be observed and performed by it at the times set forth
therein; and (b) not do or permit, suffer or refrain from doing anything, as a result of which there could be a default or breach
of any of the terms of the Credit Card Agreements and at all times maintain in full force and effect the Credit Card Agreements
and not terminate, cancel, surrender, modify, amend, waive or release any of the Credit Card Agreements, or consent to or permit
to occur any of the foregoing; except, that, any Borrower may terminate or cancel any of the Credit Card Agreements in the ordinary
course of the business of such Borrower; provided, that, such Borrower shall give Agent not less than ten (10) days prior
written notice of its intention to so terminate or cancel any of the Credit Card Agreements; (c) not enter into any new Credit
Card Agreements with any new Credit Card Issuer unless (i) Agent shall have received not less than ten (10) days prior written
notice of the intention of such Borrower to enter into such agreement (together with such other information with respect thereto
as Agent may reasonably request) and (ii) such Borrower delivers, or causes to be delivered to Agent, subject to Section 9.31,
a Credit Card Acknowledgment in favor of Agent, (d) give Agent prompt written notice of any Credit Card Agreement or material amendment
or other material modification of any Credit Card Agreement entered into by such Borrower after the date hereof, together with
a true, correct and complete copy thereof and such other information with respect thereto as Agent may reasonably request; (e)
furnish to Agent, promptly upon the request of Agent, such material information and evidence as Agent may require from time to
time concerning the observance, performance and compliance by such Borrower or the other party or parties thereto with the terms,
covenants or provisions of the Credit Card Agreements, and (f) not modify in any material respect any payment instruction given
by Agent to any Credit Card Issuer or Credit Card Processor provided for in any Credit Card Acknowledgment to the extent given
in accordance with the terms thereof or otherwise direct the remittance of payments under any Credit Card Agreement to any account
other than the Blocked Accounts.


 


9.19         
License Agreements.


 


(a)              
Except as could not reasonably be expected to have a Material Adverse Effect, Borrower shall (i) promptly and faithfully
observe and perform all of the material terms, covenants, conditions and provisions of the material License Agreements to which
it is a party to be observed and performed by it, at the times set forth therein, if any, (ii) not do, permit, suffer or refrain
from doing anything that could reasonably be expected to result in a default under or breach of any of the terms of any material
License Agreement, (iii) not cancel, surrender, modify, amend, waive or release any material License Agreement in any material
respect or any term, provision or right of the licensee thereunder in any material respect, or consent to or permit to occur any
of the foregoing except as permitted pursuant to Section 9.19(b) below, (iv) give Agent prompt written notice of any
material License Agreement (other than Promotional Agreements or licenses by a Borrower, Guarantor or any of their Subsidiaries
to a private label manufacturer entered into in the ordinary course of business for the production of Inventory on behalf of a
Borrower or “click through” licenses to website hosts or providers in connection with on-line purchasing or licenses
to a Borrower by a customer to use such customer’s trademarks or service marks for purposes of goods or services provided
by such Borrower to or for such customer or licenses for commercially available off the shelf software) entered into by any Borrower,
Guarantor or any of their Subsidiaries after the date hereof, together with (A) either (x) a description of such License Agreement
listing the Intellectual Property subject thereto, the name and address of the parties thereto, the term of the license arrangement
and the products and territory subject to such license, or (y) a true, correct and complete copy of such License Agreement,
and (B) such other information with respect thereto as Agent may reasonably request (subject to any obligation of confidentiality
contained therein), (v) give Agent prompt written notice of any notice of default sent to another party to a material License Agreement
by Borrower of any material breach of any obligation, or any default, by any party under any material License Agreement, and deliver
to Agent (promptly upon the receipt thereof by Borrower in the case of a notice to Borrower and concurrently with the sending thereof
in the case of a notice from Borrower) a copy of each notice of default and every other notice and other communication received
or delivered by Borrower in connection with any material License Agreement which relates to the right of Borrower to continue to
use the property subject to such License Agreement, and (vi) furnish to Agent, promptly upon the request of Agent, such information
and evidence as Agent may reasonably require from time to time concerning the observance, performance and compliance by Borrower
or the other party or parties thereto with the material terms, covenants or provisions of any material License Agreement.


 






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(b)              
Except as could not reasonably be expected to have a Material Adverse Effect, each Borrower will either exercise
any option to renew or extend the term of each material License Agreement to which it is a party in such manner as will cause the
term of such material License Agreement to be effectively renewed or extended for the period provided by such option.


 


9.20         
Foreign Assets Control Regulations, Etc. None of the requesting or borrowing of the Loans or the requesting
or issuance, extension or renewal of any Letter of Credit or the use of the proceeds of any thereof will violate the Trading With
the Enemy Act (50 U.S.C. §1 et seq., as amended) (the “Trading With the Enemy Act”) or any of the
foreign assets control regulations of the United States Treasury Department (31 C.F.R., Subtitle B, Chapter V, as
amended) (the “Foreign Assets Control Regulations”) or any enabling legislation or executive order relating
thereto (including, but not limited to (a) Executive order 13224 of September 21, 2001 Blocking Property and Prohibiting
Transactions With Persons Who Commit, Threaten to Commit, or Support Terrorism (66 Fed. Reg. 49079 (2001)) (the “Executive
Order”) and (b) the Uniting and Strengthening America by Providing Appropriate Tools Required to Intercept and Obstruct
Terrorism Act of 2001 (Public Law 107-56)). None of
Borrowers or any of their Subsidiaries or other Affiliates is or will become a “blocked person” as described
in the Executive Order, the Trading with the Enemy Act or the Foreign Assets Control Regulations or engages or will engage in any
dealings or transactions, or be otherwise associated, with any such “blocked person”.


 


9.21         
After Acquired Real Property. If any Borrower or Guarantor hereafter acquires fee simple title to any Real
Property, such Real Property and related fixtures or other property is adjacent to, contiguous with or necessary or related to
or used in connection with any Real Property then subject to a mortgage in favor of Agent, or if such Real Property is not adjacent
to, contiguous with or related to or used in connection with such Real Property, then if such Real Property, at any location (or
series of adjacent, contiguous or related locations, and regardless of the number of parcels) has a fair market value in an amount
equal to or greater than $1,000,000 (or if a Default or Event of Default has occurred and is continuing, then regardless of the
fair market value of such assets), and excluding any Real Property subject to a lien permitted under Sections 9.8(e)
and 9.8(l) hereof, without limiting any other rights of Agent or any Lender, or duties or obligations of any Borrower or
Guarantor, promptly as reasonably practical upon Agent’s request, such Borrower or Guarantor shall execute and deliver to
Agent a mortgage, deed of trust or deed to secure debt, as Agent may determine, in form and substance reasonably satisfactory to
Agent and in form appropriate for recording in the real estate records of the jurisdiction in which such Real Property or other
property is located granting to Agent a first lien and mortgage on and security interest in such Real Property, fixtures or other
property (except for liens permitted under Section 9.8 hereof) or as otherwise consented to in writing by Agent) and
such other agreements, documents and instruments as Agent may reasonably require in connection therewith.


 






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9.22         
Costs and Expenses. Borrowers and Guarantors shall pay to Agent on demand all costs, expenses and filing fees
paid or payable in connection with the preparation, negotiation, execution, delivery, recording, syndication, administration, collection,
liquidation, enforcement and defense of the Obligations, Agent’s rights in the Collateral, this Agreement, the other Financing
Agreements and all other documents related hereto or thereto, including any amendments, supplements or consents which may hereafter
be contemplated (whether or not executed) or entered into in respect hereof and thereof, including: (a) all costs and expenses
of filing or recording (including UCC and PPSA financing statement filing fees, if applicable); (b) costs and expenses and fees
for insurance premiums, environmental audits, title insurance premiums, surveys, assessments, engineering reports and inspections,
appraisal fees and search fees, background checks, costs and expenses of remitting loan proceeds, collecting checks and other items
of payment, and establishing and maintaining the Blocked Accounts, together with Agent’s customary charges and fees with
respect thereto; (c) charges, fees or expenses charged by any Issuing Bank in connection with any Letter of Credit; (d) costs and
expenses of preserving and protecting the Collateral; (e) costs and expenses paid or incurred in connection with obtaining payment
of the Obligations, enforcing the security interests and liens of Agent, selling or otherwise realizing upon the Collateral, and
otherwise enforcing the provisions of this Agreement and the other Financing Agreements or defending any claims made or threatened
against Agent or any Lender arising out of the transactions contemplated hereby and thereby (including preparations for and consultations
concerning any such matters); (f) after an Event of Default has occurred and is continuing, reasonable attorneys’ fees of
any Lender incurred in connection with obtaining payment of the Obligations, enforcing the security interests and liens of Agent,
selling or otherwise realizing upon the Collateral, and otherwise enforcing the provisions of this Agreement and the other Financing
Agreements or defending any claims made or threatened against Agent or any Lender arising out of the transactions contemplated
hereby and thereby (including preparations for and consultations concerning any such matters); (g) all out-of-pocket expenses and
costs heretofore and from time to time hereafter incurred by Agent during the course of periodic field examinations of the Collateral
and such Borrower’s or Guarantor’s operations, plus a per diem charge at Agent’s then standard rate for
Agent’s examiners in the field and office for no more than two (2) periodic field exams during a consecutive twelve (12)
month period; provided, that, unless an Event of Default shall have occurred and is continuing or a Material Adverse Effect
has occurred, only one (1) periodic field exam will be conducted at the Borrowers’ expense during such consecutive twelve
(12) month period unless Excess Availability is less than the greater of (x) 20% of the Borrowing Cap and (y) $20,000,000 at any
time during such period, in which case one (1) additional field exam in such twelve (12) month period as Agent may request shall
be at Borrowers’ expense; and (h) the reasonable fees and disbursements of counsel (including legal assistants) to Agent
in connection with any of the foregoing. Additionally, there shall be no limitation on the number or frequency of field exams if
an Event of Default or a Material Adverse Effect has occurred and is continuing, and the Borrowers shall be responsible for the
costs and expenses of any such field exams conducted while an Event of Default or a Material Adverse Effect has occurred and is
continuing.


 






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9.23         
Further Assurances.


 


(a)              
In the case of the formation or acquisition by a Borrower or Guarantor of any Subsidiary (other than a Foreign Subsidiary)
after the date hereof, as to any such Subsidiary, (i) the Borrower or Guarantor forming such Subsidiary shall cause any such Subsidiary
to execute and deliver to Agent, the following (each in form and substance reasonably satisfactory to Agent), (A) a Guaranty pursuant
to which such Subsidiary gives an absolute and unconditional guarantee of the payment of the Obligations or a joinder or assumption
agreement to an existing Guaranty, in each case in form and substance reasonably satisfactory to Agent, (B) a security agreement
substantially in the form of the security provisions herein granting to Agent a first security interest and lien (except as otherwise
consented to in writing by Agent) upon all of the assets of any such Subsidiary to the extent such assets constitute Collateral
hereunder and subject to and in accordance with the terms hereof, (C) a joinder to the Intercreditor Agreement acknowledging the
lien priorities granted thereby and (D) such other agreements, documents and instruments as Agent may require in connection with
the documents referred to above in order to make such Subsidiary a party to this Agreement as a “Borrower” (to
the extent directly or indirectly wholly owned by Parent) or as a “Guarantor” as Agent may determine, including,
but not limited to, supplements and amendments hereto, a Borrower Joinder Agreement with respect to a Subsidiary that is to become
a party hereto as a “Borrower”, an assumption agreement with respect to an existing Guaranty, an authorization to file
UCC and PPSA financing statements, Collateral Access Agreements (subject to the requirements of Section 9.2 hereof)
and other consents, waivers, acknowledgments and other agreements from third persons which Agent may deem necessary or desirable
in order to permit, protect and perfect its security interests in and liens upon the assets purchased, corporate resolutions and
other organization and authorizing documents of such Person, and favorable opinions of counsel to such person and (ii) the Borrower
or Guarantor forming such Subsidiary shall (A) execute and deliver to Agent, a supplement to this Agreement to which it is a party,
in form and substance reasonably satisfactory to Agent, granting to Agent a pledge of and lien on all of the issued and outstanding
shares of Capital Stock of any such Subsidiary (but no more than 65% of the Voting Stock of any Foreign Subsidiary) with the lien
priority required by the Financing Agreements, and (B) deliver the original stock certificates evidencing such shares of Capital
Stock (or such other evidence as may be issued in the case of a limited liability company), together with stock powers with respect
thereto duly executed in blank (or the equivalent thereof in the case of a limited liability company in which such interests are
certificated, or otherwise take such actions as Agent shall require with respect to Agent’s security interests therein).


 


(b)              
In the case of an acquisition of assets (other than Capital Stock and Real Property) by a Borrower or Guarantor after
the date hereof, Agent shall have received, in form and substance reasonably satisfactory to Agent, (i) evidence that Agent has
valid and perfected security interests in and liens upon all purchased assets to the extent such assets constitute Collateral hereunder
and subject to and in accordance with the terms hereof, and (ii) subject to Section 9.2 hereof, all Collateral Access
Agreements and other consents, waivers, acknowledgments and other agreements from third persons which Agent may deem necessary
or desirable in order to permit, protect and perfect its security interests in and liens upon the assets purchased, (iii) in the
case of a Material Permitted Acquisition, at the option of Agent, the agreement of the seller consenting to the collateral assignment
by the Borrower or Guarantor purchasing such assets of all rights and remedies and claims for damages of such Borrower or Guarantor
relating to the Collateral (including, without limitation, any bulk sales indemnification) under the agreements, documents and
instruments relating to such acquisition and (iv) such other agreements, documents and instruments as Agent may require in connection
with the documents referred to above, including, but not limited to, supplements and amendments hereto, corporate resolutions and
other organization and authorizing documents and favorable opinions of counsel to such person.


 






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(c)              
At the request of Agent at any time and from time to time, Borrowers and Guarantors shall, at their expense, duly
execute and deliver, or cause to be duly executed and delivered, such further agreements, documents and instruments, and do or
cause to be done such further acts as may be necessary or proper to evidence, perfect, maintain and enforce the security interests
and the priority thereof in the Collateral and to otherwise effectuate the provisions or purposes of this Agreement or any of the
other Financing Agreements. Agent may at any time and from time to time request a certificate from an officer of any Borrower or
Guarantor representing that all conditions precedent to the making of Revolving Loans and providing Letters of Credit contained
herein are satisfied. In the event of such request by Agent, Agent and Lenders may, at Agent’s option, cease to make any
further Revolving Loans or provide any further Letters of Credit until Agent has received such certificate and, in addition, Agent
has determined that such conditions are satisfied.


 


(d)              
The Borrowers will cause any Person guaranteeing Term Loan Obligations to contemporaneously become a Guarantor of
the Obligations in accordance with Section 9.23(a).


 


9.24         
Permitted Payments of Indebtedness. No Borrower and no Guarantor will, nor will it permit any Subsidiary to,
make, directly or indirectly, any payment or other distribution (whether in cash, Securities or other property) of or in respect
of principal of or interest on any Indebtedness (other than Indebtedness between any Borrower or Guarantor and Indebtedness permitted
under Sections 9.9(j), 9.9(k), or 9.9(m), or any payment or other distribution (whether in cash, Securities
or other property), including any sinking fund or similar deposit, on account of the purchase, redemption, retirement, acquisition,
cancellation or termination of any such Indebtedness, except:


 


(a)              
payment of Indebtedness created under the Financing Agreements;


 


(b)              
payment of regularly scheduled interest (including, for the avoidance of doubt, regularly scheduled interest payments
required under the Term Loan Agreement) and principal payments as and when due in respect of any Indebtedness permitted under Section 9.9,
other than (i) payments in respect of subordinated Indebtedness prohibited by the subordination provisions thereof and (ii) payments
of principal outstanding under the Term Loan Agreement;


 


(c)              
refinancings of Indebtedness to the extent permitted by Section 9.9(p);


 


(d)              
payment of secured Indebtedness permitted under Section 9.9(b) that becomes due as a result of any sale
or transfer of, or casualty, condemnation or taking with respect to, the property or assets securing such Indebtedness;


 






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(e)              
optional prepayments of Indebtedness (other than with respect to Permitted Subordinated Indebtedness); provided,
that (i) the Required Conditions are satisfied and (ii) no Default or Event of Default shall have occurred and be continuing as
of the date of such prepayment;


 


(f)               
the repurchase, redemption or defeasance of the Convertible Notes; provided that such repurchase, redemption or defeasance
is funded solely with (i) the cash proceeds of a substantially concurrent equity contribution received by Parent from the holders
of its Capital Stock and/or (ii) amounts on deposit in the Convertible Notes Escrow that were previously funded with the cash proceeds
of an equity contribution received by Parent from the holders of its Capital Stock;


 


(g)              
optional prepayments of Permitted Subordinated Indebtedness (subject to the terms of an intercreditor subordination
agreement in form and substance acceptable to Agent in its sole reasonable discretion) so long as (i) the Required Conditions are
satisfied and (ii) no Default or Event of Default shall have occurred and be continuing as of the date of such prepayment;


 


(h)              
mandatory prepayments of principal outstanding under the Term Loan Agreement to the extent required under Section
2.2(b) of the Term Loan Agreement as in effect on the Closing Date, together with accrued and unpaid interest thereon and any prepayment
premiums required in connection therewith; and


 


(i)                
payments of principal outstanding under the Term Loan Agreement as required under Section 2.2(a) of the Term Loan
Agreement as in effect on the Closing Date; provided that (i) pro forma Liquidity is equal to or greater than $10,000,000
calculated as of the date of such payment both prior to and after giving effect to such payment, on a pro forma basis using the
most recent calculation of the Borrowing Base immediately prior to such payment and (ii) no Default or Event of Default shall have
occurred and be continuing as of the date of such payment.


 


9.25         
Commodity Exchange Act Keepwell Provisions. Each Qualified ECP Guarantor hereby absolutely, unconditionally
and irrevocably undertakes to provide such funds or other support as may be needed from time to time by each other Borrower or
Guarantor in order for each such other Borrower or Guarantor to honor its obligations under this Agreement and the other Financing
Agreements including Hedge Obligations (provided, however, that each Qualified ECP Guarantor shall only be liable under this Section 9.25
for the maximum amount of such liability that can be hereby incurred without rendering its obligations under this Section 9.25,
or otherwise under this Agreement or any other Financing Agreement, voidable under applicable law relating to fraudulent conveyance
or fraudulent transfer, and not for any greater amount). The obligations of each Qualified ECP Guarantor under this Section 9.25
shall remain in full force and effect until all Obligations are paid in full to the Lenders and Agent, and all of the Lenders’
Revolving Commitments are terminated. Each Qualified ECP Guarantor intends that this Section 9.25 constitute, and this
Section 9.25 shall be deemed to constitute, a “keepwell, support, or other agreement” for the benefit of
each other Borrower and each other Guarantor for all purposes of Section 1a(18)(A)(v)(II) of the Commodity Exchange Act.


 






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9.26         
Disbursement Cash Management Systems. Each of Borrowers, Guarantors and each of their Subsidiaries will maintain
Chase as its principal depository bank for its disbursement business, including for the maintenance of operating, administrative,
cash management, collection activity and other deposit accounts for the conduct of its disbursement business.


 


9.27         
Amendments to Term Loan Documents. The Borrowers and the Guarantors will not amend, waive, modify or supplement
or consent to any amendment, waiver, modification or supplement of any Term Loan Documents, if such amendment, waiver or other
modification would contravene any provision of the Intercreditor Agreement.


 


9.28         
Valor Merger. Notwithstanding anything to the contrary contained in this Agreement, no provision of this Agreement
shall prohibit the consummation of the Valor Merger in accordance with the terms of the Valor Merger Agreement on the Closing Date.


 


9.29         
Parent Holding Company Status. With respect to Parent, engage in any business or activity, hold any assets
or incur any Indebtedness or other liabilities, other than (i) its ownership of the Capital Stock in the Borrowers, intercompany
notes permitted hereunder, cash and Cash Equivalents, notes of officers, directors and employees permitted hereunder, and all other
assets incidental to its ownership of Capital Stock in the Borrowers, or related to the management of its investment in the other
Loan Parties, (ii) maintaining its corporate existence, (iii) participating in Tax, accounting, corporate, housekeeping
and other administrative activities as a holding company or as a member of the consolidated group of companies including the Loan
Parties, (iv) executing, delivering and performing its rights and obligations under the Financing Agreements, the Term Loan
Documents and any documents and agreements governing any Permitted Acquisitions or Investments permitted hereunder to which it
is a party, including, for the avoidance of doubt (and to the extent permitted hereunder and otherwise in accordance herewith),
the formation, maintenance, merger, amalgamation, consolidation, liquidation or dissolution of a Subsidiary in connection with
a Permitted Acquisition or Investment permitted hereunder, (v) making any Permitted Distribution hereunder and any other payments
permitted to be made by Parent pursuant to Section 9.12 hereunder, (vi) purchasing or acquiring Capital Stock of the
Borrowers, (vii) making capital contributions to the other Loan Parties, (viii) executing, delivering and performing
its rights and obligations under any employment agreements and any documents related thereto, (ix) the buyback and sales of equity
from or to officers, directors, managers and employees of Parent and its Subsidiaries and other persons in accordance with Section 9.11,
(xiii) transactions expressly described in this Agreement as involving Parent and permitted under this Agreement, (xiv) retaining
employees and consultants, (xv) making filings, (xvi) issuing financial statements, (xvii) administering employee benefit and other
equity programs, (xviii) maintaining directors and officers insurance, (xviii) issuing and selling Capital Stock and accepting
capital contributions (to the extent otherwise permitted under this Agreement), (xix) opening bank accounts, (xx) engaging counsel,
auditors and financial advisors, and (xxi) xxi)
acquiring, holding and otherwise acting with respect to the Affiliated Lender Loan Holdings (as defined in the Term Loan Agreement),
and (xxii) activities incidental to the business or activities described in clauses (i)-(xx(i)-(xxi)
above.


 


9.30         
Post-Closing Equity Contribution and Fundamental Change Company Notice.


 






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(a)              
On or prior to January 31, 2020 (or such later date that Agent may agree to in its sole discretion) (the “Post-Closing
Equity Contribution Deadline”), the Permitted Holders shall have contributed (or caused to be contributed), directly
or indirectly, cash equity contributions (the “Post-Closing Equity Contribution”) to Ultimate Parent or Parent
(in the form of (i) common equity or (ii) pay-in-kind preferred equity reasonably satisfactory to Agent) in an aggregate
amount of not less than $60,000,000. The proceeds of the Post-Closing Equity Contribution shall be deposited and maintained in
either (i) the Convertible Notes Escrow or (ii) another Deposit Account reasonably acceptable to the Agent and the Term Loan Agent
that is subject to a Deposit Account Control Agreement, and such proceeds may be used to redeem, convert or otherwise repurchase
or repay the Convertible Notes (or to fund the Convertible Notes Escrow for such purposes), or, after the Convertible Notes have
been redeemed in full, for other general corporate purposes.


 


(b)              
 Parent shall deliver a Fundamental Change Company Notice (as defined in the Convertible Note Indenture) with respect
to the Valor Merger to all holders of Convertible Notes and the trustee under the Convertible Note Indenture not later than the
date that is twenty days following the Closing Date. Such Fundamental Change Company Notice shall (i) provide that the Fundamental
Change Repurchase Date (as defined in the Convertible Note Indenture) shall be the date that is 35 calendar days following the
date of the Fundamental Change Company Notice and (ii) otherwise be in accordance with the terms of the Convertible Note Indenture.


 


9.31         
Post-Closing Obligations. Borrowers shall deliver, or cause to be delivered, to Agent each of the agreements,
documents, instruments and other items set forth on Schedule 9.31 hereto, in each case within the periods provided for therein
(subject, in each case, to Agent’s right to extend such period in its sole discretion).


 


		Section 10.	EVENTS OF DEFAULT AND REMEDIES



 


10.1         
Events of Default. The occurrence or existence of any one or more of the following events are referred to
herein individually as an “Event of Default”, and collectively as “Events of Default”:


 


(a)              
(i) any Borrower fails to make any principal payment (including any payment required under Section 2.9(c)) after
the same becomes due and payable, or any Borrower fails to pay any of the other Obligations (other than with respect to principal
payments) within two (2) Business Days after the same becomes due and payable, (ii) any Borrower or Guarantor fails to perform
any of the covenants contained in Sections 9.7, 9.8, 9.9, 9.10, 9.11, 9.12, 9.27,
9.29, 9.30, or 9.31 of this Agreement (iii) any Borrower or Guarantor fails to perform any of the covenants contained
in Sections 9.1(a), 9.2, 9.3, 9.4, 9.5, 9.13, 9.16, 9.18, 9.20,
9.22, 9.25, or 9.26 of this Agreement and such failure shall continue for five (5) Business Days; provided,
that, such five (5) Business Day period shall not apply in the case of: (A) any failure to observe any such covenant which is not
capable of being cured at all or within such five (5) Business Day period or which has been the subject of a prior failure within
a six (6) month period or (B) an intentional breach by Borrower or any Guarantor of any such covenant or (iv) any Borrower or Guarantor
fails to perform any of the terms, covenants, conditions or provisions contained in this Agreement or any of the other Financing
Agreements other than those described in Sections 10.1(a)(i) and 10.1(a)(ii) above and Section 10.1(m)
below and such failure shall continue unremedied for thirty (30) days after the earlier of (C) notice thereof from the Agent or
(D) any Borrower’s or Guarantor’s knowledge of such breach;


 






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(b)              
any representation or warranty made by any Borrower or Guarantor to Agent or any Secured Party in this Agreement,
the other Financing Agreements or any other written agreement, schedule, confirmatory assignment or otherwise shall when made or
deemed made be false or misleading in any material respect;


 


(c)              
any Guarantor revokes or terminates or attempts to revoke or terminate any guarantee in favor of Agent or any Lender;


 


(d)              
any judgment for the payment of money is rendered against any Borrower or Guarantor in excess of $2,500,000 in the
aggregate (to the extent not covered by insurance) and shall remain undischarged or unvacated for a period in excess of thirty
(30) days or execution shall at any time not be effectively stayed, or any judgment other than for the payment of money, or injunction,
attachment, garnishment or execution is rendered against any Borrower or Guarantor which would result in a Material Adverse Effect;


 


(e)              
[Reserved];


 


(f)               
any Borrower or Guarantor makes a general assignment for the benefit of creditors, makes or sends notice of a bulk
transfer or calls a meeting of its creditors or principal creditors in connection with a moratorium or adjustment of the Indebtedness
due to them;


 


(g)              
a case or proceeding under the bankruptcy laws of the United States of America now or hereafter in effect or under
any insolvency, reorganization, receivership, readjustment of debt, dissolution or liquidation law or statute of any jurisdiction
now or hereafter in effect (whether at law or in equity) is filed against any Borrower or Guarantor or all or any substantial part
of its properties and such petition or application is not dismissed within sixty (60) days after the date of its filing or any
Borrower or Guarantor by corporate action shall file any answer admitting or not contesting such petition or application or indicates
its consent to, acquiescence in or approval of, any such action or proceeding or the relief requested is granted sooner;


 


(h)              
a case or proceeding under the bankruptcy laws of the United States of America now or hereafter in effect or under
any insolvency, reorganization, receivership, readjustment of debt, dissolution or liquidation law or statute of any jurisdiction
now or hereafter in effect (whether at a law or equity) is filed by any Borrower or Guarantor or for all or any substantial part
of its property;


 


(i)                
any default in respect of the Term Loan Obligations or any other Indebtedness of any Borrower or Guarantor, the effect
of which default is to cause, or to permit the holder or beneficiary of such Indebtedness to cause, with the giving of notice if
required, such Indebtedness to become due prior to its stated maturity (other than Indebtedness owing to Agent and Lenders hereunder),
in any case in an amount in excess of $2,500,000, which default continues for more than the applicable cure period, if any, with
respect thereto; provided that (x) this clause shall not apply to secured Indebtedness that becomes due as a result of the
voluntary sale or transfer of the property or assets securing such Indebtedness, if such sale or transfer is permitted hereunder
and (y) any such default (other than a default in respect of the Term Loan Obligations) is unremedied and is not waived by the
holders of such Indebtedness prior to any termination of all of the Revolving Commitments and acceleration of all of the Loans
pursuant to this Section 10.1;


 






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(j)                
any material provision hereof or of any of the other Financing Agreements shall for any reason cease to be valid,
binding and enforceable with respect to any party hereto or thereto (other than Agent) in accordance with its terms, or any such
party shall challenge the enforceability hereof or thereof, or shall assert in writing, or take any action or fail to take any
action based on the assertion that any provision hereof or of any of the other Financing Agreements has ceased to be or is otherwise
not valid, binding or enforceable in accordance with its terms, or any security interest provided for herein or in any of the other
Financing Agreements shall cease to be a valid and perfected first priority (subject only to Permitted Encumbrances and Liens permitted
under Section 9.8(s)) security interest in any of the Collateral purported to be subject thereto (except as expressly otherwise
permitted herein or therein);


 


(k)              
an ERISA Event shall occur which results in liability of any Borrower or Guarantor in an amount which could reasonably
be expected to have a Material Adverse Effect;


 


(l)                
any Change of Control;


 


(m)            
fails at any time to comply with Section 6.7(b) of this Agreement;


 


(n)              
any Credit Card Issuer or Credit Card Processor (i) withholds payment of amounts otherwise payable to any Borrower
or Guarantor to fund a reserve account or otherwise hold as collateral, or shall require any Borrower or Guarantor to pay funds
into a reserve account or for such Credit Card Issuer or Credit Card Processor to otherwise hold as collateral, or any Borrower
or Guarantor shall provide a letter of credit to or in favor of such Credit Card Issuer or Credit Card Processor such that in the
aggregate all of such funds in the reserve account, other amounts held as collateral and the amount of such letters of credit shall
exceed an aggregate for all Borrowers and Guarantors of $1,000,000, or (ii) shall debit or deduct any amounts from any Deposit
Account of any Borrower or Guarantor or (iii) shall send notice to a Borrower or Guarantor that it is ceasing to make or suspending
payments to such Borrower or Guarantor of amounts due or to become due to any Borrower or Guarantor or (iv) shall send notice to
any Borrower that it is terminating its arrangements with such Borrower or Guarantor or such arrangements, except where (A) the
loss of services by a Credit Card Issuer or Credit Card Processor would not result in non-payment of amounts due to any Borrower
or could not reasonably be expected to cause a Material Adverse Effect or (B) such Borrower or Guarantor shall have entered into
arrangements with another Credit Card Issuer or Credit Card Processor, as the case may be, within forty-five (45) days after the
date of any such notice; [or]


 


(o)              
the Intercreditor Agreement shall for any reason, except to the extent permitted by the terms thereof, cease to be
in full force and effect and valid, binding and enforceable in accordance with its terms against any Borrower, any Guarantor, the
Term Loan Agent, any Term Loan Lender, or any other party thereto, or shall be repudiated by any of them, or cease to establish
the relative lien priorities required or purported thereby, or any Borrower, any Guarantor, the Term Loan Agent, any Term Loan
Lender, or any of their respective Affiliates shall so state in writing; or


 






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(p)              
the Equity Commitment Letter shall for any reason cease to be in full force and effect and valid, binding and enforceable
in accordance with its terms against Tributum before the funding of the full Convertible Notes Repurchase Amount into the Convertible
Notes Escrow.


 


10.2         
Remedies.


 


(a)              
At any time an Event of Default exists or has occurred and is continuing, Agent and Lenders shall have all rights
and remedies provided in this Agreement, the other Financing Agreements, the UCC, PPSA, and other applicable law, all of which
rights and remedies may be exercised without notice to or consent by any Borrower or Guarantor, except as such notice or consent
is expressly provided for hereunder or required by applicable law. All rights, remedies and powers granted to Agent and Lenders
hereunder, under any of the other Financing Agreements, the UCC, PPSA or other applicable law, are cumulative, not exclusive and
enforceable, in Agent’s discretion, alternatively, successively, or concurrently on any one or more occasions, and shall
include, without limitation, the right to apply to a court of equity for an injunction to restrain a breach or threatened breach
by any Borrower or Guarantor of this Agreement or any of the other Financing Agreements. Subject to Section 12 hereof,
Agent may, and at the direction of the Required Lenders shall, at any time or times, proceed directly against any Borrower or Guarantor
to collect the Obligations without prior recourse to the Collateral.


 


(b)              
Without limiting the foregoing, at any time an Event of Default has occurred and is continuing, Agent may, in its
discretion, and upon the direction of the Required Lenders, shall (i) accelerate the payment of all Obligations and demand immediate
payment thereof to Agent, for itself and the benefit of the Secured Parties (provided, that, upon the occurrence of any
Event of Default described in Sections 10.1(g) and 10.1(h), all Obligations shall automatically become immediately
due and payable), (ii) with or without judicial process or the aid or assistance of others, enter upon any premises on or in which
any of the Collateral may be located and take possession of the Collateral or complete processing, manufacturing and repair of
all or any portion of the Collateral, (iii) require any Borrower or Guarantor, at Borrowers’ expense, to assemble and make
available to Agent any part or all of the Collateral at any place and time designated by Agent, (iv) collect, foreclose, receive,
appropriate, setoff and realize upon any and all Collateral, (v) remove any or all of the Collateral from any premises on or in
which the same may be located for the purpose of effecting the sale, foreclosure or other disposition thereof or for any other
purpose, (vi) sell, lease, transfer, assign, deliver or otherwise dispose of any and all Collateral (including entering into contracts
with respect thereto, public or private sales at any exchange, broker’s board, at any office of Agent or elsewhere) at such
prices or terms as Agent may deem reasonable, for cash, upon credit or for future delivery, with the Agent having the right to
purchase the whole or any part of the Collateral at any such public sale, all of the foregoing being free from any right or equity
of redemption of any Borrower or Guarantor, which right or equity of redemption is hereby expressly waived and released by Borrowers
and Guarantors and/or (vii) give notice of sole control or any other instruction under any Deposit Account Control Agreement, (viii)
terminate this Agreement. If any of the Collateral is sold or leased by Agent upon credit terms or for future delivery, the Obligations
shall not be reduced as a result thereof until payment therefor is finally collected by Agent. If notice of disposition of Collateral
is required by law, ten (10) days prior notice by Agent to Administrative Borrower designating the time and place of any public
sale or the time after which any private sale or other intended disposition of Collateral is to be made, shall be deemed to be
reasonable notice thereof and Borrowers and Guarantors waive any other notice. In the event Agent institutes an action to recover
any Collateral or seeks recovery of any Collateral by way of prejudgment remedy, each Borrower and Guarantor waives the posting
of any bond which might otherwise be required. At any time an Event of Default exists or has occurred and is continuing, upon Agent’s
request, Borrowers will either, as Agent shall specify, furnish cash collateral to the Issuing Bank to be used to secure and fund
Agent’s reimbursement obligations to the Issuing Bank in connection with any Letter of Credit Obligations or furnish cash
collateral to Agent for the Letter of Credit Obligations. Such cash collateral shall be in the amount equal to one hundred five
(105%) percent of the amount of the Letter of Credit Obligations plus the amount of any fees and expenses payable in connection
therewith through the end of the latest expiration date of such Letter of Credit Obligations. Agent shall have no obligation to
clean-up or otherwise prepare the Collateral for sale. Agent and each Lender shall use reasonable care with respect to the Collateral
in its possession or under its control.The Agent shall be deemed to have exercised reasonable care in the custody and preservation
of Collateral in its possession if such Collateral is accorded treatment substantially equal to that which the Agent accords its
own property. Neither Agent nor any Lender shall have any other duty as to any Collateral in its possession or control or in the
possession or control of any agent or nominee of Agent or such Lender, or any income thereon or as to the preservation of rights
against prior parties or any other rights pertaining thereto.


 






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(c)              
At any time or times that an Event of Default has occurred and is continuing, Agent may, in its discretion, and upon
the direction of the Required Lenders, Agent shall, enforce the rights of any Borrower or any Guarantor against any Account Debtor,
secondary obligor or other obligor in respect of any of the Accounts or other Receivables. Without limiting the generality of the
foregoing, Agent may, in its discretion, and upon the direction of the Required Lenders, Agent shall, at such time or times (i)
notify any or all Account Debtors, secondary obligors or other obligor in respect thereof that the Receivables have been assigned
to Agent and that Agent has a security interest therein and Agent may direct any or all Account Debtors, secondary obligors and
other obligors to make payment of Receivables directly to Agent, (ii) extend the time of payment of, compromise, settle or adjust
for cash, credit, return of merchandise or otherwise, and upon any terms or conditions, any and all Receivables or other obligations
included in the Collateral and thereby discharge or release the Account Debtor or any secondary obligors or other obligors in respect
thereof without affecting any of the Obligations, (iii) demand, collect or enforce payment of any Receivables or such other obligations,
but without any duty to do so, and Agent and Lenders shall not be liable for any failure to collect or enforce the payment thereof
nor for the negligence of its agents or attorneys with respect thereto and (iv) take whatever other action Agent may deem necessary
or desirable for the protection of its interests and the interests of Lenders. At any time that an Event of Default exists or has
occurred and is continuing, at Agent’s request, all invoices and statements sent to any Account Debtor shall state that the
Accounts and such other obligations have been assigned to Agent and are payable directly and only to Agent and any Borrower shall
deliver to Agent such originals of documents evidencing the sale and delivery of goods or the performance of services giving rise
to any Accounts as Agent may require. In the event any Account Debtor returns Inventory when an Event of Default exists or has
occurred and is continuing, Borrower shall, upon Agent’s request, hold the returned Inventory in trust for Agent, segregate
all returned Inventory from all of its other property, dispose of the returned Inventory solely according to Agent’s instructions,
and not issue any credits, discounts or allowances with respect thereto without Agent’s prior written consent.


 


 


 


 


 


 


 


 


 


 


 


 


 






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(d)              
To the extent that applicable law imposes duties on Agent or any Lender to exercise remedies in a commercially reasonable
manner (which duties cannot be waived under such law), each Borrower and Guarantor acknowledges and agrees that it is not commercially
unreasonable for Agent or any Lender (i) to fail to incur expenses reasonably deemed significant by Agent or any Lender to prepare
Collateral for disposition or otherwise to complete raw material or work in process into finished goods or other finished products
for disposition, (ii) to fail to obtain third party consents for access to Collateral to be disposed of, or to obtain or, if not
required by other law, to fail to obtain consents of any Governmental Authority or other third party for the collection or disposition
of Collateral to be collected or disposed of, (iii) to fail to exercise collection remedies against Account Debtors, secondary
obligors or other Persons obligated on Collateral or to remove liens or encumbrances on or any adverse claims against Collateral,
(iv) to exercise collection remedies against Account Debtors and other Persons obligated on Collateral directly or through the
use of collection agencies and other collection specialists, (v) to advertise dispositions of Collateral through publications or
media of general circulation, whether or not the Collateral is of a specialized nature, (vi) to contact other Persons, whether
or not in the same business as any Borrower or Guarantor, for expressions of interest in acquiring all or any portion of the Collateral,
(vii) to hire one or more professional auctioneers to assist in the disposition of Collateral, whether or not the collateral is
of a specialized nature, (viii) to dispose of Collateral by utilizing Internet sites that provide for the auction of assets of
the types included in the Collateral or that have the reasonable capability of doing so, or that match buyers and sellers of assets,
(ix) to dispose of assets in wholesale rather than retail markets, (x) to disclaim disposition warranties, such as title, possession
or quiet enjoyment, (xi) to purchase insurance or credit enhancements to insure Agent or Lenders against risks of loss, collection
or disposition of Collateral or to provide to Agent or Lenders a guaranteed return from the collection or disposition of Collateral,
or (xii) to the extent deemed appropriate by Agent, to obtain the services of other brokers, investment bankers, consultants and
other professionals to assist Agent in the collection or disposition of any of the Collateral. Each Borrower and Guarantor acknowledges
that the purpose of this Section is to provide non-exhaustive indications of what actions or omissions by Agent or any Lender would
not be commercially unreasonable in the exercise by Agent or any Lender of remedies against the Collateral and that other actions
or omissions by Agent or any Lender shall not be deemed commercially unreasonable solely on account of not being indicated in this
Section. Without limitation of the foregoing, nothing contained in this Section shall be construed to grant any rights to any Borrower
or Guarantor or to impose any duties on Agent or Lenders that would not have been granted or imposed by this Agreement or by applicable
law in the absence of this Section. Agent, on behalf of the Lenders, may comply with any applicable state or federal law requirements
in connection with a disposition of the Collateral and compliance will not be considered to adversely affect the commercial reasonableness
of any sale of the Collateral.


 


(e)              
For the purpose of enabling Agent to exercise the rights and remedies hereunder, each Borrower and Guarantor hereby
grants to Agent, to the extent licensable and to the extent that the same would not conflict with or, under applicable law and
the terms of such agreement, result in the invalidity or breach of any agreements (other than any agreement between any Borrower
or any Guarantor) or otherwise result in the revocation, cancellation, abandonment, infringement, unenforceability, misappropriation
or dilution or impair the validity or enforceability, of any rights in any Intellectual Property forming the subject thereof (including
rights to Intellectual Property which is the subject of Promotional Agreements), an irrevocable, non-exclusive license (exercisable
upon the occurrence of and during the continuation of an Event of Default) without payment of royalty or other compensation to
Borrower or any other Guarantor, to use, license or sublicense any of the trademarks, service-marks, trade names, business names,
trade styles, designs, logos and other source of business identifiers and other Intellectual Property and General Intangibles included
in the Collateral, wherever the same may be located, including in such license reasonable access to all media in which any of the
licensed items may be recorded or stored and to all computer programs used for the compilation or printout thereof.


 






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(f)               
Agent may apply the cash proceeds of Collateral actually received by Agent from any sale, lease, foreclosure or other
disposition of the Collateral to payment of the Obligations, in whole or in part and in such order as Agent may elect, whether
or not then due. Borrower and Guarantors shall remain liable to Agent and Lenders for the payment of any deficiency with interest
at the highest rate provided for herein and all costs and expenses of collection or enforcement, including attorneys’ fees
and expenses.


 


(g)              
Without limiting the foregoing, (i) Agent and Lenders may, at Agent’s option, and upon the occurrence of an
Event of Default, at the direction of the Required Lenders, Agent and Lenders shall, without notice, terminate any provision of
this Agreement providing for any future Revolving Loans to be made by Agent and Lenders or Letters of Credit to be issued by Issuing
Bank, and (ii) upon the occurrence of an Event of Default, Agent may, at its option, establish such Reserves as Agent determines
without limitation or restriction, notwithstanding anything to the contrary provided herein.


 


10.3         
Borrowers’ and Guarantors’ Obligations Upon Default. Upon the request of Agent after the occurrence
and during the continuance of an Event of Default, each Borrower and Guarantor will:


 


(a)              
assemble and make available to Agent the Collateral and all books and records relating thereto at any place or places
specified by Agent, whether at a Borrower’s or Guarantor’s premises or elsewhere;


 


(b)              
permit Agent, by Agent’s representatives and agents, to enter, occupy and use any premises where all or any
part of the Collateral, or the books and records relating thereto, or both, are located, to take possession of all or any part
of the Collateral or the books and records relating thereto, or both, to remove all or any part of the Collateral or the books
and records relating thereto, or both, and to conduct sales of the Collateral, without any obligation to pay the Borrower or Guarantor
for such use and occupancy.


 


10.4         
Grant of Intellectual Property License. For the purpose of enabling the Agent to exercise the rights and remedies
under this Section 10 at such time as Agent shall be lawfully entitled to exercise such rights and remedies, each Borrower
and Guarantor hereby (a) grants to Agent, for the benefit of Agent and the Lenders, to the extent licensable and to the extent
that the same would not conflict with or, under applicable law and the terms of such agreement, result in the invalidity or breach
of any agreements (other than any agreement between any Borrower or any Guarantor) or otherwise result in the revocation, cancellation,
abandonment, infringement, unenforceability, misappropriation or dilution or impair the validity or enforceability, of any rights
in any Intellectual Property forming the subject thereof (including rights to Intellectual Property which is the subject of Promotional
Agreements), an irrevocable, nonexclusive license (exercisable without payment of royalty or other compensation to any Borrower
or Guarantor) to use, license or sublicense any Intellectual Property rights now owned or hereafter acquired by such Borrower or
Guarantor, and wherever the same may be located, and including in such license access to all media in which any of the licensed
items may be recorded or stored and to all computer software and programs used for the compilation or printout thereof and (b)
irrevocably agrees that Agent may sell any of such Borrower’s or Guarantor’s Inventory directly to any person, including
without limitation persons who have previously purchased the Borrower’s or Guarantor’s Inventory from such Borrower
or Guarantor and in connection with any such sale or other enforcement of Agent’s rights under this Agreement, may sell Inventory
which bears any trademark owned by or licensed to such Borrower or Guarantor and any Inventory that is covered by any copyright
owned by or licensed to such Borrower or Guarantor and Agent may finish any work in process and affix any trademark owned by or
licensed to such Borrower or Guarantor and sell such Inventory as provided herein.


 



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		Section 11.	JURY TRIAL WAIVER; OTHER WAIVERS AND CONSENTS; GOVERNING LAW



 


11.1         
Governing Law; Choice of Forum; Service of Process; Jury Trial Waiver.


 


(a)              
The validity, interpretation and enforcement of this Agreement and the other Financing Agreements and any dispute
arising out of the relationship between the parties hereto, whether in contract, tort, equity or otherwise, shall be governed by
the internal laws of the State of New York but excluding any principles of conflicts of law or other rule of law that would cause
the application of the law of any jurisdiction other than the laws of the State of New York.


 


(b)              
Borrowers, Guarantors, Agent, Lenders and Issuing Bank irrevocably consent and submit to the non-exclusive jurisdiction
of the State of New York and the State and Federal courts located in the Borough of Manhattan, County of New York, State of New
York and the United States District Court for the Southern District of New York whichever Agent may elect, and waive any objection
based on venue or forum non conveniens with respect to any action instituted therein arising under this Agreement or any of the
other Financing Agreements or in any way connected with or related or incidental to the dealings of the parties hereto in respect
of this Agreement or any of the other Financing Agreements or the transactions related hereto or thereto, in each case whether
now existing or hereafter arising, and whether in contract, tort, equity or otherwise, and agree that any dispute with respect
to any such matters shall be heard only in the courts described above (except that Agent and Lenders shall have the right to bring
any action or proceeding against any Borrower or Guarantor or its or their property in the courts of any other jurisdiction which
Agent deems necessary or appropriate in order to realize on the Collateral or to otherwise enforce its rights against any Borrower
or Guarantor or its or their property).


 


(c)              
Each Borrower and Guarantor hereby waives personal service of any and all process upon it and consents that all such
service of process may be made by certified mail (return receipt requested) directed to its address set forth herein and service
so made shall be deemed to be completed five (5) days after the same shall have been so deposited in the U.S. mails, or, at Agent’s
option, by service upon any Borrower or Guarantor (or Administrative Borrower on behalf of such Borrower or Guarantor) in any other
manner provided under the rules of any such courts. Within thirty (30) days after such service, such Borrower or Guarantor shall
appear in answer to such process, failing which such Borrower or Guarantor shall be deemed in default and judgment may be entered
by Agent against such Borrower or Guarantor for the amount of the claim and other relief requested.


 






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(d)              
BORROWERS, GUARANTORS, AGENT, LENDERS AND ISSUING BANK EACH HEREBY WAIVES ANY RIGHT TO TRIAL BY JURY OF ANY CLAIM,
DEMAND, ACTION OR CAUSE OF ACTION ARISING UNDER THIS AGREEMENT OR ANY OF THE OTHER FINANCING AGREEMENTS OR IN ANY WAY CONNECTED
WITH OR RELATED OR INCIDENTAL TO THE DEALINGS OF THE PARTIES HERETO IN RESPECT OF THIS AGREEMENT OR ANY OF THE OTHER FINANCING
AGREEMENTS OR THE TRANSACTIONS RELATED HERETO OR THERETO IN EACH CASE WHETHER NOW EXISTING OR HEREAFTER ARISING, AND WHETHER IN
CONTRACT, TORT, EQUITY OR OTHERWISE. BORROWERS, GUARANTORS, AGENT, LENDERS AND ISSUING BANK EACH HEREBY AGREES AND CONSENTS THAT
ANY SUCH CLAIM, DEMAND, ACTION OR CAUSE OF ACTION SHALL BE DECIDED BY COURT TRIAL WITHOUT A JURY AND THAT ANY BORROWER, ANY GUARANTOR,
AGENT, ANY LENDER OR ISSUING BANK MAY FILE AN ORIGINAL COUNTERPART OF A COPY OF THIS AGREEMENT WITH ANY COURT AS WRITTEN EVIDENCE
OF THE CONSENT OF THE PARTIES HERETO TO THE WAIVER OF THEIR RIGHT TO TRIAL BY JURY.


 


(e)              
Agent and Secured Parties shall not have any liability to any Borrower or Guarantor (whether in tort, contract, equity
or otherwise) for losses suffered by such Borrower or Guarantor in connection with, arising out of, or in any way related to the
transactions or relationships contemplated by this Agreement, or any act, omission or event occurring in connection herewith, unless
it is determined by a final and non-appealable judgment or court order binding on Agent, such Lender and Issuing Bank, that the
losses were the result of acts or omissions constituting gross negligence or willful misconduct. In any such litigation, Agent,
Lenders and Issuing Bank shall be entitled to the benefit of the rebuttable presumption that it acted in good faith and with the
exercise of ordinary care in the performance by it of the terms of this Agreement. Each Borrower and Guarantor: (i) certifies that
neither Agent, any Lender, Issuing Bank nor any representative, agent or attorney acting for or on behalf of Agent, any Lender
or Issuing Bank has represented, expressly or otherwise, that Agent, Lenders and Issuing Bank would not, in the event of litigation,
seek to enforce any of the waivers provided for in this Agreement or any of the other Financing Agreements and (ii) acknowledges
that in entering into this Agreement and the other Financing Agreements, Agent, Lenders and Issuing Bank are relying upon, among
other things, the waivers and certifications set forth in this Section 11.1 and elsewhere herein and therein.


 


11.2         
Waiver of Notices. Each Borrower and Guarantor hereby expressly waives demand, presentment, protest and notice
of protest and notice of dishonor with respect to any and all Instruments and Chattel Paper, included in or evidencing any of the
Obligations or the Collateral, and any and all other demands and notices of any kind or nature whatsoever with respect to the Obligations,
the Collateral and this Agreement, except such as are expressly provided for herein. No notice to or demand on any Borrower or
Guarantor which Agent or any Lender may elect to give shall entitle such Borrower or Guarantor to any other or further notice or
demand in the same, similar or other circumstances. Each Borrower and Guarantor hereby waives 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. To
the extent such notice may not be waived under applicable law, any notice made shall be deemed reasonable if sent to the Borrowers
and Guarantors, addressed as set forth in Section 13.3, at least ten 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.


 






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11.3         
Collateral Waivers. To the maximum extent permitted by applicable law, each Borrower and Guarantor waives
all claims, damages, and demands against Agent or any Lender arising out of the repossession, retention or sale of the Collateral,
except such as arise solely out of the gross negligence, bad faith or willful misconduct of Agent or such Lender as finally determined
by a court of competent jurisdiction. To the extent it may lawfully do so, each Borrower and Guarantor absolutely and irrevocably
waives and relinquishes the benefit and advantage of, and covenants not to assert against Agent or any Lender, any valuation, stay,
appraisal, extension, moratorium, redemption or similar laws and any and all rights or defenses it may have as a surety now or
hereafter existing which, but for this provision, might be applicable to the sale of any Collateral made under the judgment, order
or decree of any court, or privately under the power of sale conferred by this Agreement, or otherwise.


 


11.4         
Amendments and Waivers.


 


(a)              
Except as provided in Section 2.4(c)(i) (with respect to any increase in the Revolving Commitments), neither this
Agreement nor any other Financing Agreement nor any terms hereof or thereof may be amended, waived, discharged or terminated unless
such amendment, waiver, discharge or termination is in writing signed by Agent and the Required Lenders or at Agent’s option,
by Agent with the authorization or consent of the Required Lenders, and as to amendments to any of the Financing Agreements (other
than with respect to any provision of Section 12 hereof), by any Borrower and such amendment, waiver, discharge or
termination shall be effective and binding as to all Lenders and Issuing Bank only in the specific instance and for the specific
purpose for which given; except, that, no such amendment, waiver, discharge or termination shall:


 


(i)                
reduce the interest rate or any fees hereunder or extend the time of payment of principal, interest or any fees or
reduce the principal amount hereunder of any Loan or Letters of Credit, in each case without the consent of each Lender directly
affected thereby;


 


(ii)             
release a material portion of the Collateral (except as expressly permitted or required hereunder or under any of
the other Financing Agreements or applicable law and except as permitted under Section 12.11(b) hereof), without the
consent of Agent and all of Lenders;


 


(iii)           
reduce any percentage specified in the definition of Required Lenders without the consent of Agent and all of Lenders;


 


(iv)            
consent to the assignment or transfer by any Borrower or Guarantor of any of their rights and obligations under this
Agreement, without the consent of Agent and all of Lenders;


 


(v)              
amend the definition of Borrowing Base or any component definition thereof if as a result thereof the amounts available
to be borrowed by any Borrower would be increased, without the consent of Agent and all Revolving Lenders, provided, that
the foregoing shall not limit the discretion of Agent to change, establish or eliminate any Reserves;


 






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(vi)            
amend, modify or waive any provision of Section 6.4, without the consent of Agent and all of the Lenders;


 


(vii)         
except as authorized pursuant to Section 12.15, subordinate the Obligations hereunder or the liens granted
hereunder or under the other Financing Agreements, to any other Indebtedness or lien, as the case may be (except for the liens
permitted in Section 9.8 hereof having priority by operation of law), without the consent of Agent and all of Lenders;


 


(viii)       
amend, modify or waive any terms of this Section 11.4 hereof, without the consent of Agent and all of
Lenders; or


 


(ix)            
increase the advance rates constituting part of the Borrowing Base, without the consent of Agent and all of Revolving
Lenders.


 


(b)              
Notwithstanding anything to the contrary contained in Section 11.4(a) above, Agent may, in its discretion
and without the consent of the any Lenders, amend or otherwise modify the Borrowing Base, the Reserves or any of their respective
components which amendments or modifications have the effect of increasing the Borrowing Base, decreasing the Reserves or otherwise
increasing the amounts available for borrowing hereunder to the extent that such amendment or modification is made to undo changes
made after the date hereof and restore the Borrowing Base, Reserves or other components thereof back to a level or standard, as
applicable, that exists on the date hereof if the reason for such reduction or increase established after the date hereof no longer
exists, as determined by Agent.


 


(c)              
Agent, Lenders and Issuing Bank shall not, by any act, delay, omission or otherwise be deemed to have expressly or
impliedly waived any of its or their rights, powers and/or remedies unless such waiver shall be in writing and signed as provided
herein. Any such waiver shall be enforceable only to the extent specifically set forth therein. A waiver by Agent, any Lender or
Issuing Bank of any right, power and/or remedy on any one occasion shall not be construed as a bar to or waiver of any such right,
power and/or remedy which Agent, any Lender or Issuing Bank would otherwise have on any future occasion, whether similar in kind
or otherwise.


 


(d)              
Notwithstanding anything to the contrary contained in Section 11.4(a) above, in connection with any amendment,
waiver, discharge or termination, in the event that any Lender whose consent thereto is required shall fail to consent or fail
to consent in a timely manner (such Lender being referred to herein as a “Non-Consenting Lender”), but the consent
of any other Lenders to such amendment, waiver, discharge or termination that is required are obtained, if any, then Chase shall
have the right, but not the obligation, at any time thereafter, and upon the exercise by Chase of such right, such Non-Consenting
Lender shall have the obligation, to sell, assign and transfer to Chase or such Eligible Transferee as Chase may specify, the Commitment
of such Non-Consenting Lender and all rights and interests of such Non-Consenting Lender pursuant thereto provided, that,
if Chase does not exercise such right, and Administrative Borrower presents an Eligible Transferee and requests in writing that
Chase replace such Non-Consenting Lender with such Eligible Transferee, then, subject to Chase’s consent rights as Agent
contained in the within definition of “Eligible Transferee”, such Non-Consenting Lender shall have the obligation,
to sell, assign and transfer to such Eligible Transferee as Administrative Borrower has specified, the Commitment of such Non-Consenting
Lender and all rights and interests of such Non-Consenting Lender pursuant thereto. Chase shall provide the Non-Consenting Lender
with prior written notice of its intent to exercise its right under this Section, which notice shall specify the date on which
such purchase and sale shall occur. Such purchase and sale shall be pursuant to the terms of an Assignment and Assumption (whether
or not executed by the Non-Consenting Lender), except that on the date of such purchase and sale, Chase, or such Eligible Transferee
specified by Chase, shall pay to the Non-Consenting Lender (except as Chase and such Non-Consenting Lender may otherwise agree)
the amount equal to: (i) the principal balance of the Revolving Loans held by the Non-Consenting Lender outstanding as of the close
of business on the business day immediately preceding the effective date of such purchase and sale, plus (ii) amounts accrued
and unpaid in respect of interest and fees payable to the Non-Consenting Lender to the effective date of the purchase (but in no
event shall the Non-Consenting Lender be deemed entitled to any early termination fee). Such purchase and sale shall be effective
on the date of the payment of such amount to the Non-Consenting Lender and the Commitment of the Non-Consenting Lender shall terminate
on such date.


 






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(e)              
The consent of Agent shall be required for any amendment, waiver or consent affecting the rights or duties of Agent
hereunder or under any of the other Financing Agreements, in addition to the consent of the Lenders otherwise required by this
Section and the exercise by Agent of any of its rights hereunder with respect to Reserves or Eligible Accounts or Eligible Inventory
shall not be deemed an amendment to the advance rates provided for in this Section 11.4. The consent of Issuing Bank
shall be required for any amendment, waiver or consent affecting the rights or duties of Issuing Bank hereunder or under any of
the other Financing Agreements, in addition to the consent of the Lenders otherwise required by this Section, provided,
that, the consent of Issuing Bank shall not be required for any other amendments, waivers or consents. Notwithstanding anything
to the contrary contained in Section 11.4(a) above, (i) in the event that Agent shall agree that any items otherwise
required to be delivered to Agent as a condition of the initial Loans and Letters of Credit hereunder may be delivered after the
date hereof, Agent may, in its discretion, agree to extend the date for delivery of such items or take such other action as Agent
may deem appropriate as a result of the failure to receive such items as Agent may determine or may waive any Event of Default
as a result of the failure to receive such items, in each case without the consent of any Lender and (ii) Agent may consent to
any change in the type of organization, jurisdiction of organization or other legal structure of any Borrower, Guarantor or any
of their Subsidiaries and amend the terms hereof or of any of the other Financing Agreements as may be necessary or desirable to
reflect any such change, in each case without the approval of any Lender.


 


11.5         
Waiver of Counterclaims. Each Borrower and Guarantor waives all rights to interpose any claims, deductions,
setoffs or counterclaims of any nature (other than compulsory counterclaims) in any action or proceeding with respect to this Agreement,
the Obligations, the Collateral or any matter arising therefrom or relating hereto or thereto.


 


 


 


 


 


 






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11.6         
Indemnification. Each Borrower and Guarantor shall, jointly and severally, indemnify and hold Agent, each
Lender and Issuing Bank, and their respective officers, directors, agents, employees, advisors and counsel and their respective
Affiliates (each such Person being an “Indemnitee”), harmless from and against any and all losses, claims, damages,
liabilities, costs or expenses (including attorneys’ reasonable fees and expenses) imposed on, incurred by or asserted against
any of them in connection with any litigation, investigation, claim or proceeding commenced or threatened related to the negotiation,
preparation, execution, delivery, enforcement, performance or administration of this Agreement, any other Financing Agreements,
or any undertaking or proceeding related to any of the transactions contemplated hereby or any act, omission, event or transaction
related or attendant thereto, including amounts paid in settlement, court costs, and the fees and expenses of counsel except that
Borrowers and Guarantors shall not have any obligation under this Section 11.6 to indemnify an Indemnitee with respect
to a matter covered hereby resulting from the gross negligence, bad faith or willful misconduct of such Indemnitee (but without
limiting the obligations of Borrowers or Guarantors as to any other Indemnitee). To the extent that the undertaking to indemnify,
pay and hold harmless set forth in this Section may be unenforceable because it violates any law or public policy, Borrowers and
Guarantors shall pay the maximum portion which it is permitted to pay under applicable law to Agent and Lenders in satisfaction
of indemnified matters under this Section. To the extent permitted by applicable law, no Borrower or Guarantor shall assert, and
each Borrower and Guarantor hereby waives, any claim against any Indemnitee, on any theory of liability for special, indirect,
consequential or punitive damages (as opposed to direct or actual damages) arising out of, in connection with, or as a result of,
this Agreement, any of the other Financing Agreements or any undertaking or transaction contemplated hereby. Absent gross negligence,
bad faith or willful misconduct, no Indemnitee referred to above shall be liable for any damages arising from the use by unintended
recipients of any information or other materials distributed by it through telecommunications, electronic or other information
transmission systems in connection with this Agreement or any of the other Financing Agreements or the transaction contemplated
hereby or thereby. All amounts due under this Section shall be payable upon demand. The foregoing indemnity shall survive the payment
of the Obligations and the termination or non-renewal of this Agreement. This Section 11.6 shall not apply with respect
to Taxes other than any Taxes that represent losses, claims, damages, etc. arising from any non-Tax claim.


 


		Section 12.	THE AGENT



 


12.1         
Appointment, Powers and Immunities. Each Secured Party irrevocably designates, appoints and authorizes Chase
to act as Agent hereunder and under the other Financing Agreements, including the Intercreditor Agreement, with such powers as
are specifically delegated to Agent by the terms of this Agreement and of the other Financing Agreements, together with such other
powers as are reasonably incidental thereto. Agent (a) shall have no duties or responsibilities except those expressly set forth
in this Agreement and in the other Financing Agreements, and shall not by reason of this Agreement or any other Financing Agreement
be a trustee or fiduciary for any Secured Party; (b) shall not be responsible to Secured Parties for any recitals, statements,
representations or warranties contained in this Agreement or in any of the other Financing Agreements, or in any certificate or
other document referred to or provided for in, or received by any of them under, this Agreement or any other Financing Agreement,
or for the value, validity, effectiveness, genuineness, enforceability or sufficiency of this Agreement or any other Financing
Agreement or any other document referred to or provided for herein or therein or for any failure by any Borrower or any Guarantor
or any other Person to perform any of its obligations hereunder or thereunder; and (c) shall not be responsible to Secured Parties
for any action taken or omitted to be taken by it hereunder or under any other Financing Agreement or under any other document
or instrument referred to or provided for herein or therein or in connection herewith or therewith, except for its own gross negligence
or willful misconduct as determined by a final non-appealable judgment of a court of competent jurisdiction. Agent may employ agents
and attorneys in fact and shall not be responsible for the negligence or misconduct of any such agents or attorneys in fact selected
by it in good faith. Agent may deem and treat the payee of any note as the holder thereof for all purposes hereof unless and until
the assignment thereof pursuant to an agreement (if and to the extent permitted herein) in form and substance satisfactory to Agent
shall have been delivered to and acknowledged by Agent.


 






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12.2         
Reliance by Agent. Agent shall be entitled to rely upon any certification, notice or other communication (including
any thereof by telephone, telecopy, telex, telegram or cable) reasonably believed by it to be genuine and correct and to have been
signed or sent by or on behalf of the proper Person or Persons, and upon advice and statements of legal counsel, independent accountants
and other experts selected by Agent. As to any matters not expressly provided for by this Agreement or any other Financing Agreement,
Agent shall in all cases be fully protected in acting, or in refraining from acting, hereunder or thereunder in accordance with
instructions given by the Required Lenders or all of Lenders as is required in such circumstance, and such instructions of such
Agents and any action taken or failure to act pursuant thereto shall be binding on all Lenders.


 


12.3         
Events of Default.


 


(a)              
Agent shall not be deemed to have knowledge or notice of the occurrence of a Default or an Event of Default or other
failure of a condition precedent to the Revolving Loans and Letters of Credit hereunder, unless and until Agent has actual knowledge
or same and has received written notice from a Lender, or Borrower specifying such Event of Default or any unfulfilled condition
precedent, and stating that such notice is a “Notice of Default or Failure of Condition” (each a “Notice of
Default or Failure of Condition”). In the event that Agent obtains actual knowledge or receives such a Notice of Default
or Failure of Condition, Agent shall give prompt notice thereof to the Lenders. Agent shall (subject to Section 12.7)
take such action with respect to any such Event of Default or failure of condition precedent as shall be directed by the Required
Lenders to the extent provided for herein; provided, that, unless and until Agent shall have received such directions, Agent
may (but shall not be obligated to) take such action, or refrain from taking such action, with respect to or by reason of such
Event of Default or failure of condition precedent, as it shall deem advisable in the best interest of Lenders. Without limiting
the foregoing, and notwithstanding the existence or occurrence and continuance of an Event of Default or any other failure to satisfy
any of the conditions precedent set forth in Section 4 of this Agreement to the contrary, subject to the limitations set
forth in Section 12.8, Agent may, but shall have no obligation to, continue to make Revolving Loans and Issuing Bank
may, but shall have no obligation to, issue or cause to be issued any Letter of Credit for the ratable account and risk of Lenders
from time to time if Agent reasonably and in good faith, believes making such Loans or issuing or causing to be issued such Letter
of Credit is in the best interests of Lenders.


 


(b)              
Except with the prior written consent of Agent, no Secured Party may assert or exercise any enforcement right or
remedy in respect of the Loans, Letter of Credit Obligations or other Obligations, as against any Borrower or Guarantor or any
of the Collateral or other property of any Borrower or Guarantor.


 






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12.4         
Chase in its Individual Capacity. At any time Chase is a Lender or Issuing Bank hereunder, as applicable,
then with respect to its Revolving Commitments and the Loans made and Letters of Credit issued or caused to be issued by it (and
any successor acting as Agent) hereunder from time to time, if any, so long as Chase shall be a Lender hereunder, it shall have
the same rights and powers hereunder as any other Lender and may exercise the same as though it were not acting as Agent, and the
term “Lender” or “Lenders” shall, unless the context otherwise indicates, include Chase in
its individual capacity as Lender hereunder. Chase (and any successor acting as Agent) and its Affiliates may (without having to
account therefor to any Lender) lend money to, make investments in and generally engage in any kind of business with Borrowers
(and any of their Subsidiaries or Affiliates) as if it were not acting as Agent, and Chase and its Affiliates may accept fees and
other consideration from any Borrower or Guarantor and any of its Subsidiaries and Affiliates for services in connection with this
Agreement or otherwise without having to account for the same to Lenders.


 


12.5         
Indemnification.


 


(a)       Neither
the Agent nor any of its Related Parties shall be (i) liable for any action taken or omitted to be taken by such party, the Agent
or any of its Related Parties under or in connection with this Agreement or the other Financing Agreements (x) with the consent
of or at the request of the Required Lenders (or such other number or percentage of the Lenders as shall be necessary, or as the
Agent shall believe in good faith to be necessary, under the circumstances as provided in the Financing Agreements) or (y) in the
absence of its own gross negligence or willful misconduct (such absence to be presumed unless otherwise determined by a court of
competent jurisdiction by a final and non-appealable judgment) or (ii) responsible in any manner to any of the Lenders for any
recitals, statements, representations or warranties made by any Loan Party or any officer thereof contained in this Agreement or
any other Financing Agreement or in any certificate, report, statement or other document referred to or provided for in, or received
by the Agent under or in connection with, this Agreement or any other Financing Agreement or for the value, validity, effectiveness,
genuineness, enforceability or sufficiency of this Agreement or any other Financing Agreement or for any failure of any Loan Party
to perform its obligations hereunder or thereunder.


 


(b)       Lenders
agree to indemnify Agent and Issuing Bank (to the extent not reimbursed by Borrowers hereunder and without limiting any obligations
of Borrowers hereunder) ratably, in accordance with their Pro Rata Shares of Loans, for any and all claims of any kind and nature
whatsoever that may be imposed on, incurred by or asserted against Agent (including by any Lender) arising out of or by reason
of any investigation in or in any way relating to or arising out of this Agreement or any other Financing Agreement or any other
documents contemplated by or referred to herein or therein or the transactions contemplated hereby or thereby (including the costs
and expenses that Agent is obligated to pay hereunder) or the enforcement of any of the terms hereof or thereof or of any such
other documents, provided, that, no Lender shall be liable for any of the foregoing to the extent it arises from the gross
negligence or willful misconduct of the party to be indemnified as determined by a final non-appealable judgment of a court of
competent jurisdiction. The foregoing indemnity shall survive the payment of the Obligations and the termination or non-renewal
of this Agreement.


 






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12.6         
Non-Reliance on Agent and Other Lenders. Each Secured Party agrees that it has, independently and without
reliance on Agent or any other Secured Party, and based on such documents and information as it has deemed appropriate, made its
own credit analysis of Borrowers and Guarantors and has made its own decision to enter into this Agreement and that it will, independently
and without reliance upon Agent or any other Secured Party, and based on such documents and information as it shall deem appropriate
at the time, continue to make its own analysis and decisions in taking or not taking action under this Agreement or any of the
other Financing Agreements. Agent shall not be required to keep itself informed as to the performance or observance by any Borrower
or Guarantor of any term or provision of this Agreement or any of the other Financing Agreements or any other document referred
to or provided for herein or therein or to inspect the properties or books of any Borrower or Guarantor. Agent will use reasonable
efforts to provide Lenders with any information received by Agent from any Borrower or Guarantor which is required to be provided
to Lenders or deemed to be requested by Lenders hereunder and with a copy of any Notice of Default or Failure of Condition received
by Agent from any Borrower or any Lender; provided, that, Agent shall not be liable to any Lender for any failure to do
so, except to the extent that such failure is attributable to Agent’s own gross negligence or willful misconduct as determined
by a final non-appealable judgment of a court of competent jurisdiction. Except for notices, reports and other documents expressly
required to be furnished to Lenders by Agent or deemed requested by Lenders hereunder (including the documents provided for in
Section 12.10 hereof), Agent shall not have any duty or responsibility to provide any Lender with any other credit
or other information concerning the affairs, financial condition or business of any Borrower or Guarantor that may come into the
possession of Agent.


 


12.7         
Failure to Act. Except for action expressly required of Agent hereunder and under the other Financing Agreements,
Agent shall in all cases be fully justified in failing or refusing to act hereunder and thereunder unless it shall receive further
assurances to its satisfaction from Lenders of their indemnification obligations under Section 12.5 hereof against
any and all liability and expense that may be incurred by it by reason of taking or continuing to take any such action.


 


12.8         
Additional Loans. Agent shall not make any Revolving Loans or Issuing Bank provide any Letter of Credit to
any Borrower on behalf of Revolving Lenders intentionally and with actual knowledge that such Revolving Loans or Letters of Credit
would cause the aggregate amount of the total outstanding Revolving Loans and Letters of Credit to such Borrower to exceed the
Borrowing Base, without the prior consent of the Required Lenders, except, that, Agent may make such additional Revolving Loans
or Issuing Bank may provide such additional Letters of Credit on behalf of Revolving Lenders, intentionally and with actual knowledge
that such Revolving Loans or Letters of Credit will cause the total outstanding Revolving Loans and Letters of Credit to exceed
the Borrowing Base, as Agent may deem necessary or advisable in its discretion, provided, that: (a) the total principal
amount of the additional Revolving Loans or additional Letters of Credit to any Borrower which Agent may make or provide after
obtaining such actual knowledge that the aggregate principal amount of the Revolving Loans equal or exceed the Borrowing Bases
of Borrowers, plus the amount of Special Agent Advances made pursuant to Sections 12.11(a)(i) and (ii)
hereof then outstanding, shall not exceed the aggregate amount equal to ten (10%) percent of the Aggregate Revolving Commitment
Amounts and shall not cause the total principal amount of the Revolving Loans and Letter of Credit Obligations to exceed the Aggregate
Revolving Commitment Amounts and (b) no such additional Revolving Loan or Letters of Credit shall be outstanding more than ninety
(90) days after the date such additional Revolving Loan or Letters of Credit is made or issued (as the case may be), except as
the Required Lenders may otherwise agree. Each Revolving Lender shall be obligated to pay Agent the amount of its Pro Rata Share
of any such additional Revolving Loans or Letters of Credit.


 






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12.9         
Concerning the Collateral and the Related Financing Agreements. Each Secured Party authorizes and directs
Agent to enter into this Agreement, the Intercreditor Agreement and the other Financing Agreements. Each Secured Party agrees that
any action taken by Agent or Required Lenders in accordance with the terms of this Agreement, the Intercreditor Agreement or the
other Financing Agreements and the exercise by Agent or Required Lenders of their respective powers set forth therein or herein,
together with such other powers that are reasonably incidental thereto, shall be binding upon all of the Secured Parties.


 


12.10     
Field Audit, Examination Reports and other Information; Disclaimer by Lenders. By signing this Agreement,
each Lender:


 


(a)              
is deemed to have requested that Agent furnish such Lender (and Agent agrees that it will furnish to such Lender),
promptly after it becomes available, a copy of each field audit or examination report and report with respect to the Borrowing
Base prepared or received by Agent (each field audit or examination report and report with respect to the Borrowing Base being
referred to herein as a “Report” and collectively, “Reports”), appraisals with respect to
the Collateral and financial statements with respect to Parent and its Subsidiaries received by Agent;


 


(b)              
expressly agrees and acknowledges that Agent (i) does not make any representation or warranty as to the accuracy
of any Report, appraisal or financial statement or (ii) shall not be liable for any information contained in any Report, appraisal
or financial statement;


 


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


 


(d)              
agrees to keep all Reports confidential and strictly for its internal use in accordance with the terms of Section 13.5
hereof, and not to distribute or use any Report in any other manner.


 


12.11     
Collateral Matters.


 


(a)              
Agent may, at its option, from time to time, at any time on or after an Event of Default and for so long as the same
is continuing or upon any other failure of a condition precedent to the Revolving Loans and Letters of Credit hereunder, make such
disbursements and advances (“Special Agent Advances”) which Agent, in its sole discretion, (i) deems necessary
or desirable either to preserve or protect the Collateral or any portion thereof or (ii) to enhance the likelihood or maximize
the amount of repayment by Borrowers and Guarantors of the Loans and other Obligations, provided, that, (A) the aggregate
principal amount of the Special Agent Advances pursuant to clauses (i) and (ii) hereof outstanding at any time,
plus the then outstanding principal amount of the additional Revolving Loans and Letters of Credit which Agent may make
or provide as set forth in Section 12.8 hereof, shall not exceed the amount equal to ten (10%) percent of the Aggregate
Revolving Commitment Amounts, (B) the aggregate principal amount of the Special Agent Advances pursuant to clauses (i)
and (ii) hereof outstanding at any time, plus the then total outstanding principal amount of the Revolving Loans
and Letter of Credit Obligations, shall not exceed the Aggregate Revolving Commitment Amounts, except at Agent’s option,
provided, that, to the extent that the aggregate principal amount of Special Agent Advances plus the then total outstanding
principal amount of the Revolving Loans and Letter of Credit Obligations exceed the Aggregate Revolving Commitment Amounts the
Special Agent Advances that are in excess of the Borrowing Cap shall be for the sole account and risk of Agent and notwithstanding
anything to the contrary set forth below, no Lender shall have any obligation to provide its share of such Special Agent Advances
in excess of the Aggregate Revolving Commitment Amounts, and (C) no such Special Agent Advances made pursuant to this clause (ii)
shall be outstanding more than ninety (90) days after the date such Special Agent Advance is made, except as Required Lenders may
otherwise agree, or (iii) to pay any other amount chargeable to any Borrower or Guarantor pursuant to the terms of this Agreement
or any of the other Financing Agreements consisting of (A) costs, fees and expenses and (B) payments to Issuing Bank in respect
of any Letter of Credit Obligations. The Special Agent Advances shall be repayable on demand and together with all interest thereon
shall constitute Obligations secured by the Collateral. Special Agent Advances shall not constitute Revolving Loans but shall otherwise
constitute Obligations hereunder. Interest on Special Agent Advances shall be payable at the interest rate then applicable to ABR
Loans and shall be payable on demand. Without limitation of its obligations pursuant to Section 6.11, each Lender agrees
that it shall make available to Agent, upon Agent’s demand, in immediately available funds, the amount equal to such Lender’s
Pro Rata Share of each such Special Agent Advance. If such funds are not made available to Agent by such Lender, such Lender shall
be deemed a Defaulting Lender and Agent shall be entitled to recover such funds, on demand from such Lender together with interest
thereon for each day from the date such payment was due until the date such amount is paid to Agent at the NYFRB Rate for each
day during such period (as published by the Federal Reserve Bank of New York or at Agent’s option based on the arithmetic
mean determined by Agent of the rates for the last transaction in overnight Federal funds arranged prior to 9:00 a.m. (New
York City time) on that day by each of the three leading brokers of Federal funds transactions in New York City selected by Agent)
and if such amounts are not paid within three (3) days of Agent’s demand, at the highest interest rate provided for in Section 3.1
hereof applicable to ABR Loans.


 






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(b)              
Lenders hereby irrevocably authorize Agent, at its option and in its discretion to release any security interest
in, mortgage or lien upon, any of the Collateral (i) upon Payment in Full, or (ii) constituting property being sold or disposed
of if Administrative Borrower or any Borrower or Guarantor certifies to Agent that the sale or disposition is made in compliance
with Section 9.6 hereof (and Agent may rely conclusively on any such certificate, without further inquiry), or (iii)
constituting property in which any Borrower or Guarantor did not own an interest at the time the security interest, mortgage or
lien was granted or at any time thereafter, or (iv) having a value in the aggregate in any twelve (12) month period of less than
$1,000,000, and to the extent Agent may release its security interest in and lien upon any such Collateral pursuant to the sale
or other disposition thereof, such sale or other disposition shall be deemed consented to by Lenders, or (v) if required or permitted
under the terms of any of the other Financing Agreements, including any intercreditor agreement, or (vi) approved, authorized or
ratified in writing by all of Lenders. Except as provided above, Agent will not release any security interest in, mortgage or lien
upon, any of the Collateral without the prior written authorization of all of Lenders. Upon request by Agent at any time, Lenders
will promptly confirm in writing Agent’s authority to release particular types or items of Collateral pursuant to this Section.
In no event shall the consent or approval of Issuing Bank to any release of Collateral be required. Nothing contained herein shall
be construed to require the consent of any Bank Product Provider to any release of Collateral or termination of security interests
in any Collateral.


 


 


 


 


 


 


 


 


 


 


 


 


 






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(c)              
Without any manner limiting Agent’s authority to act without any specific or further authorization or consent
by the Required Lenders, each Lender agrees to confirm in writing, upon request by Agent, the authority to release Collateral conferred
upon Agent under this Section. Agent shall (and is hereby irrevocably authorized by Lenders to) execute such documents as may be
necessary to evidence the release of the security interest, mortgage or liens granted to Agent upon any Collateral to the extent
set forth above; provided, that, (i) Agent shall not be required to execute any such document on terms which, in Agent’s
opinion, would expose Agent to liability or create any obligations or entail any consequence other than the release of such security
interest, mortgage or liens without recourse or warranty and (ii) such release shall not in any manner discharge, affect or impair
the Obligations or any security interest, mortgage or lien upon (or obligations of any Borrower or Guarantor in respect of) the
Collateral retained by such Borrower or Guarantor.


 


(d)              
Agent shall have no obligation whatsoever to any Secured Party or any other Person to investigate, confirm or assure
that the Collateral exists or is owned by any Borrower or Guarantor or is cared for, protected or insured or has been encumbered,
or that any particular items of Collateral meet the eligibility criteria applicable in respect of the Revolving Loans or Letters
of Credit hereunder, or whether any particular Reserves are appropriate, or that the liens and security interests granted to Agent
pursuant hereto or any of the Financing Agreements or otherwise have been properly or sufficiently or lawfully created, perfected,
protected or enforced or are entitled to any particular priority, or to exercise at all or in any particular manner or under any
duty of care, disclosure or fidelity, or to continue exercising, any of the rights, authorities and powers granted or available
to Agent in this Agreement or in any of the other Financing Agreements, it being understood and agreed that in respect of the Collateral,
or any act, omission or event related thereto, subject to the other terms and conditions contained herein, Agent may act in any
manner it may deem appropriate, in its discretion, given Agent’s own interest in the Collateral as a Lender and that Agent
shall have no duty or liability whatsoever to any other Lender or Issuing Bank.


 


12.12     
Agency for Perfection. Each Secured Party hereby appoints Agent and each other Secured Party as agent and
bailee for the purpose of perfecting the security interests in and liens upon the Collateral of Agent in assets which, in accordance
with Article 9 of the UCC can be perfected only by possession (or where the security interest of a secured party with possession
has priority over the security interest of another secured party) and Agent and each Secured Party hereby acknowledges that it
holds possession of any such Collateral for the benefit of Agent as secured party. Should any Secured Party obtain possession of
any such Collateral, such Lender shall notify Agent thereof, and, promptly upon Agent’s request therefor shall deliver such
Collateral to Agent or in accordance with Agent’s instructions.


 






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12.13     
Successor Agent. Agent may resign as Agent upon thirty (30) days’ notice to Lenders and Administrative
Borrower. If Agent resigns under this Agreement, the Required Lenders shall appoint from among the Lenders a successor agent for
Lenders. If no successor agent is appointed prior to the effective date of the resignation of Agent, Agent may appoint, after consulting
with Lenders and Parent, a successor agent from among the Lenders. Upon the acceptance by the Lender so selected of its appointment
as successor agent hereunder, such successor agent shall succeed to all of the rights, powers and duties of the retiring Agent
and the term “Agent” as used herein and in the other Financing Agreements shall mean such successor agent and
the retiring Agent’s appointment, powers and duties as Agent shall be terminated. After any retiring Agent’s resignation
hereunder as Agent, the provisions of this Section 12 shall inure to its benefit as to any actions taken or omitted
by it while it was Agent under this Agreement. If no successor agent has accepted appointment as Agent by the date which is thirty
(30) days after the date of a retiring Agent’s notice of resignation, the retiring Agent’s resignation shall nonetheless
thereupon become effective and Lenders shall perform all of the duties of Agent hereunder until such time, if any, as the Required
Lenders appoint a successor agent as provided for above.


 


12.14     
Other Agent Designations. Agent may at any time and from time to time determine that a Lender may, in addition,
be a “Co-Agent”, “Syndication Agent”, “Documentation Agent” or similar designation hereunder
and enter into an agreement with such Lender to have it so identified for purposes of this Agreement. Any such designation shall
be effective upon written notice by Agent to Administrative Borrower of any such designation. Any Lender that is so designated
as a Co-Agent, Syndication Agent, Documentation Agent or such similar designation by Agent shall have no right, power, obligation,
liability, responsibility or duty under this Agreement or any of the other Financing Agreements other than those applicable to
all Lenders as such. Without limiting the foregoing, the Lenders so identified shall not have or be deemed to have any fiduciary
relationship with any Lender and no Lender shall be deemed to have relied, nor shall any Lender rely, on a Lender so identified
as a Co-Agent, Syndication Agent, Documentation Agent or such similar designation in deciding to enter into this Agreement or in
taking or not taking action hereunder.


 


12.15     
Intercreditor Agreement. Each Lender, in its capacity as a Lender and in its capacity as a Bank Product Provider,
as applicable, and each other Secured Party, by its acceptance of the benefits of the Collateral Documents creating Liens to secure
the Obligations:


 


(a)              
acknowledges that it has received a copy of the Intercreditor Agreement and is satisfied with the terms and provisions
thereof;


 


(b)              
authorizes and instructs Agent to (i) enter into the Intercreditor Agreement, as Agent and on behalf of such Secured
Party, (ii) to exercise all of Agent’s rights and to comply with all of its obligations under the Intercreditor Agreement
and to take all other actions necessary to carry out the provisions and intent thereof and (iii) to take actions on its behalf
in accordance with the terms of the Intercreditor Agreement;


 


(c)              
agrees that it will be bound by and will take no actions contrary to the provisions of the Intercreditor Agreement
as if it was a signatory thereto;


 






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(d)              
consents to the treatment of Liens to be provided for under the Intercreditor Agreement and in furtherance thereof
authorizes the Agent to subordinate the liens on the Collateral securing the Obligations (other than liens on ABL Priority Collateral
(as defined in the Intercreditor Agreement)) in accordance with the terms set forth in the Intercreditor Agreement;


 


(e)              
authorizes and directs Agent to execute and deliver, in each case on behalf of such Secured Party and without any
further consent or authorization from such Secured Party, any amendments, supplements or other modifications of the Intercreditor
Agreement that the Borrowers may from time to time request to give effect to any incurrence, amendment, or refinancing of any Indebtedness
incurred pursuant to Section 9.9(t); and


 


(f)               
agrees that no Secured Party shall have any right of action whatsoever against Agent as a result of any action taken
by Agent pursuant to this Section 12.15 or in accordance with the terms of the Intercreditor Agreement.


 


12.16     
Posting of Communications.


 


(a)              
The Borrowers agree that the Agent may, but shall not be obligated to, make any Communications available to the Lenders
and the Issuing Bank by posting the Communications on IntraLinksTM, DebtDomain, SyndTrak, ClearPar or any other electronic
system chosen by the Agent to be its electronic transmission system (the “Approved Electronic Platform”).


 


(b)              
Although the Approved Electronic Platform and its primary web portal are secured with generally-applicable security
procedures and policies implemented or modified by the Agent from time to time (including, as of the Closing Date, a user ID/password
authorization system) and the Approved Electronic Platform is secured through a per-deal authorization method whereby each user
may access the Approved Electronic Platform only on a deal-by-deal basis, each of the Lenders, the Issuing Bank and each Borrower
acknowledges and agrees that the distribution of material through an electronic medium is not necessarily secure, that the Agent
is not responsible for approving or vetting the representatives or contacts of any Lender that are added to the Approved Electronic
Platform, and that there may be confidentiality and other risks associated with such distribution. Each of the Lenders, the Issuing
Bank and each Borrower hereby approves distribution of the Communications through the Approved Electronic Platform and understands
and assumes the risks of such distribution.


 


(c)              
THE APPROVED ELECTRONIC PLATFORM AND THE COMMUNICATIONS ARE PROVIDED “AS IS” AND “AS AVAILABLE”.
THE APPLICABLE PARTIES (AS DEFINED BELOW) DO NOT WARRANT THE ACCURACY OR COMPLETENESS OF THE COMMUNICATIONS, OR THE ADEQUACY OF
THE APPROVED ELECTRONIC PLATFORM AND EXPRESSLY DISCLAIM LIABILITY FOR ERRORS OR OMISSIONS IN THE APPROVED ELECTRONIC PLATFORM AND
THE COMMUNICATIONS. NO WARRANTY OF ANY KIND, EXPRESS, IMPLIED OR STATUTORY, INCLUDING ANY WARRANTY OF MERCHANTABILITY, FITNESS
FOR A PARTICULAR PURPOSE, NON-INFRINGEMENT OF THIRD PARTY RIGHTS OR FREEDOM FROM VIRUSES OR OTHER CODE DEFECTS, IS MADE BY THE
APPLICABLE PARTIES IN CONNECTION WITH THE COMMUNICATIONS OR THE APPROVED ELECTRONIC PLATFORM. IN NO EVENT SHALL THE AGENT, ANY
ARRANGER OR ANY OF THEIR RESPECTIVE RELATED PARTIES (COLLECTIVELY, “APPLICABLE PARTIES”) HAVE ANY LIABILITY
TO ANY LOAN PARTY, ANY LENDER, ANY ISSUING BANK OR ANY OTHER PERSON OR ENTITY FOR DAMAGES OF ANY KIND, INCLUDING DIRECT OR INDIRECT,
SPECIAL, INCIDENTAL OR CONSEQUENTIAL DAMAGES, LOSSES OR EXPENSES (WHETHER IN TORT, CONTRACT OR OTHERWISE) ARISING OUT OF ANY LOAN
PARTY’S OR THE AGENT’S TRANSMISSION OF COMMUNICATIONS THROUGH THE INTERNET OR THE APPROVED ELECTRONIC PLATFORM.


 






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“Communications”
means, collectively, any notice, demand, communication, information, document or other material provided by or on behalf of any
Loan Party pursuant to any Financing Agreement or the transactions contemplated therein which is distributed by the Agent, any
Lender or Issuing Bank by means of electronic communications pursuant to this Section, including through an Approved Electronic
Platform.


 


(d)              
Each Lender and Issuing Bank agrees that notice to it (as provided in the next sentence) specifying that Communications
have been posted to the Approved Electronic Platform shall constitute effective delivery of the Communications to such Lender for
purposes of the Financing Agreements. Each Lender and Issuing Bank agrees (i) to notify the Agent in writing (which could be in
the form of electronic communication) from time to time of such Lender’s or Issuing Bank’s (as applicable) email address
to which the foregoing notice may be sent by electronic transmission and (ii) that the foregoing notice may be sent to such email
address.


 


(e)              
Each of the Lenders, Issuing Bank and each Borrower agrees that the Agent may, but (except as may be required by
applicable law) shall not be obligated to, store the Communications on the Approved Electronic Platform in accordance with the
Agent’s generally applicable document retention procedures and policies.


 


(f)               
Nothing herein shall prejudice the right of the Agent, any Lender or Issuing Bank to give any notice or other communication
pursuant to any Financing Agreement in any other manner specified in such Financing Agreement.


 


		Section 13.	TERM OF AGREEMENT; MISCELLANEOUS



 


13.1         
Term.


 


(a)              
This Agreement and the other Financing Agreements shall become effective as of the date set forth on the first page
hereof and shall continue in full force and effect for a term ending on the Maturity Date, unless sooner terminated pursuant to
the terms hereof. In addition, Borrowers may terminate this Agreement at any time upon ten (10) days prior written notice to Agent
(which notice shall be irrevocable) and Agent may, at its option, and shall at the direction of Required Lenders, terminate this
Agreement at any time upon the occurrence and during the continuation of an Event of Default. Upon the Maturity Date or any other
effective date of termination of the Financing Agreements, Borrowers shall pay all amounts and take all other actions necessary
to cause Payment in Full to occur. All such payments required to cause Payment in Full to occur in respect of the Obligations and
cash collateral shall be remitted by wire transfer in Federal funds to the Agent Payment Account or such other bank account of
Agent, as Agent may, in its discretion, designate in writing to Administrative Borrower for such purpose. Interest shall be due
until and including the next Business Day, if the amounts so paid by Borrowers to the Agent Payment Account or other bank account
designated by Agent are received in such bank account later than 12:00 noon, New York City time.


 






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(b)              
No termination of the Revolving Commitments, this Agreement or any of the other Financing Agreements shall relieve
or discharge any Borrower or Guarantor of its respective duties, obligations and covenants under this Agreement or any of the other
Financing Agreements until all Obligations have been fully and finally discharged and paid, and Agent’s continuing security
interest in the Collateral and the rights and remedies of Agent and Lenders hereunder, under the other Financing Agreements and
applicable law, shall remain in effect until all such Obligations (other than indemnities and contingent Obligations which survive
the termination of this Agreement and the other Financing Agreements) have been fully and finally discharged and paid and Lenders
have no further obligations hereunder (following which all security interests and liens shall be released). Accordingly, each Borrower
and Guarantor waives any rights it may have under the UCC to demand the filing of termination statements with respect to the Collateral
and Agent shall not be required to send such termination statements to Borrowers or Guarantors, or to file them with any filing
office, unless and until this Agreement and all Commitments of all Lenders shall have been terminated in accordance with its terms
and all Obligations (other than indemnities and contingent Obligations which survive the termination of this Agreement and the
other Financing Agreements) paid and satisfied in full in immediately available funds. Upon such termination, Agent will contemporaneously
provide (assuming Agent has received written notice a reasonable amount of time prior to such termination) an appropriate payoff
instrument, in form and substance reasonably satisfactory to Agent, which shall, among other things, give Borrowers and Guarantors
authority to file appropriate UCC-3 termination statements.


 


13.2         
Interpretative Provisions.


 


(a)              
All terms used herein which are defined in Article 1, Article 8 or Article 9 of the UCC shall have
the meanings given therein unless otherwise defined in this Agreement.


 


(b)              
All references to the plural herein shall also mean the singular and to the singular shall also mean the plural unless
the context otherwise requires.


 


(c)              
All references to any Borrower, Guarantor, Agent and Lenders pursuant to the definitions set forth in the recitals
hereto, or to any other Person herein, shall include their respective successors and assigns.


 


(d)              
The words “hereof”, “herein”, “hereunder”, “this
Agreement” and words of similar import when used in this Agreement shall refer to this Agreement as a whole and not any
particular provision of this Agreement and as this Agreement now exists or may hereafter be amended, modified, supplemented, extended,
renewed, restated or replaced.


 






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(e)              
The word “including” when used in this Agreement shall mean “including, without limitation”
and the word “will” when used in this Agreement shall be construed to have the same meaning and effect as the
word “shall”.


 


(f)               
A Default or an Event of Default shall continue or be continuing until such Default or Event of Default is waived
in accordance with Section 11.4 or is cured in a manner satisfactory to Agent; provided that, such Event of Default
is capable of being cured as determined by Agent.


 


(g)              
All references to the term “good faith” used herein when applicable to Agent or any Lender shall
mean, notwithstanding anything to the contrary contained herein or in the UCC, honesty in fact in the conduct or transaction concerned.
Borrowers and Guarantors shall have the burden of proving any lack of good faith on the part of Agent or any Lender alleged by
any Borrower or Guarantor at any time.


 


(h)              
Any accounting term used in this Agreement shall have, unless otherwise specifically provided herein, the meaning
customarily given in accordance with GAAP, and all financial computations hereunder shall be computed unless otherwise specifically
provided herein, in accordance with GAAP as consistently applied and using the same method for inventory valuation as used in the
preparation of the financial statements of Parent most recently received by Agent prior to the date hereof. Notwithstanding anything
to the contrary contained in GAAP or any interpretations or other pronouncements by the Financial Accounting Standards Board or
otherwise, the term “unqualified opinion” as used herein to refer to opinions or reports provided by accountants
shall mean an opinion or report that is unqualified and also does not include any explanation, supplemental comment or other comment
concerning the ability of the applicable Person to continue as a going concern or the scope of the audit.


 


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


 


(j)                
Unless otherwise expressly provided herein, (i) references herein to any agreement, document or instrument shall
be deemed to include all subsequent amendments, modifications, supplements, extensions, renewals, restatements or replacements
with respect thereto, but only to the extent the same are not prohibited by the terms hereof or of any other Financing Agreement,
and (ii) references to any statute or regulation are to be construed as including all statutory and regulatory provisions consolidating,
amending, replacing, recodifying, supplementing or interpreting the statute or regulation.


 


(k)              
The captions and headings of this Agreement are for convenience of reference only and shall not affect the interpretation
of this Agreement.


 


(l)                
This Agreement and other Financing Agreements may use several different limitations, tests or measurements to regulate
the same or similar matters. All such limitations, tests and measurements are cumulative and shall each be performed in accordance
with their terms.


 


(m)            
This Agreement and the other Financing Agreements are the result of negotiations among and have been reviewed by
counsel to Agent and the other parties, and are the products of all parties. Accordingly, this Agreement and the other Financing
Agreements shall not be construed against Agent or Lenders merely because of Agent’s or any Lender’s involvement in
their preparation.


 






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13.3         
Notices.


 


(a)              
Except in the case of notices and other communications expressly permitted to be given by telephone or Electronic
Systems (and subject in each case to paragraph (b) below), all notices and other communications provided for herein shall be in
writing and shall be delivered by hand or overnight courier service, mailed by certified or registered mail or sent by facsimile,
as follows:


 


If to any Borrower or Guarantor:


 


Valor Acquisition, LLC


c/o Vintage Capital Management


4705 S. Apopka Vineland Road, Suite 206


Orlando, FL 32819


Attention: Brian Kahn


Facsimile: (208) 728-8007


Email: bkahn@vintcap.com






in each case, with a copy (which shall
not constitute notice) to:






Valor Acquisition, LLC


c/o Franchise Group, Inc.


1716 Corporate Landing Pkwy


Virginia Beach, VA 23454


Attn: Michael Piper, Chief Financial Officer


Email: Msp@libtax.com


 


If to Agent or Issuing Bank:


 


JPMorgan Chase Bank, N.A.


237 Park Avenue, 7th Floor


New York, New York 10017


Attn: James Knight, Vitamin Shoppe Credit
Officer


Facsimile: (917) 464-7000


Email: james.a.knight@jpmorgan.com


 


All such notices and other communications (i)
sent by hand or overnight courier service, or mailed by certified or registered mail, shall be deemed to have been given when received,
(ii) sent by facsimile shall be deemed to have been given when sent, provided that if not given during normal business hours
of the recipient, such notice or communication shall be deemed to have been given at the opening of business on the next Business
Day of the recipient, or (iii) delivered through Electronic Systems or Approved Electronic Platforms, as applicable, to the extent
provided in paragraph (b) below shall be effective as provided in such paragraph; provided, further, that notices
of Default or Event of Default may only be given as set forth in clause (i) above.


 






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(b)              
Notices and other communications to the Lenders hereunder may be delivered or furnished by using Electronic Systems
or Approved Electronic Platforms, as applicable, or pursuant to procedures approved by the Agent; provided that the foregoing
shall not apply to notices pursuant to Article II unless otherwise agreed by the Agent and the applicable Lender. Each of the Agent
and the Administrative Borrower (on behalf of the Loan Parties) may, in its discretion, agree to accept notices and other communications
to it hereunder by Electronic Systems or Approved Electronic Platforms, as applicable, pursuant to procedures approved by it; provided
that approval of such procedures may be limited to particular notices or communications. Unless the Agent otherwise proscribes,
all such notices and other communications (i) sent to an e-mail address shall be deemed received upon the sender’s receipt
of an acknowledgement from the intended recipient (such as by the “return receipt requested” function, as available,
return e-mail or other written acknowledgement), provided that if not given during the normal business hours of the recipient,
such notice or communication shall be deemed to have been given at the opening of business on the next Business Day for the recipient,
and (ii) posted to an Internet or intranet website shall be deemed received upon the deemed receipt by the intended recipient,
at its e-mail address as described in the foregoing clause (i), of notification that such notice or communication is available
and identifying the website address therefor; provided that, for both clauses (i) and (ii) above, if such notice, e-mail
or other communication is not sent during the normal business hours of the recipient, such notice or communication shall be deemed
to have been sent at the opening of business on the next Business Day of the recipient.


 


(c)              
Any party hereto may change its address, facsimile number or e-mail address for notices and other communications
hereunder by notice to the other parties hereto.


 


13.4         
Partial Invalidity. If any provision of this Agreement is held to be invalid or unenforceable, such invalidity
or unenforceability shall not invalidate this Agreement as a whole, but this Agreement shall be construed as though it did not
contain the particular provision held to be invalid or unenforceable and the rights and obligations of the parties shall be construed
and enforced only to such extent as shall be permitted by applicable law.


 


13.5         
Confidentiality.


 


(a)              
Agent, each Lender and Issuing Bank shall use all reasonable efforts to keep confidential, and shall use reasonable
efforts to cause its agents (including accountants, auditors and filed examiners) to keep confidential, in accordance with its
customary procedures for handling confidential information and safe and sound lending practices, any non-public information supplied
to it by any Borrower pursuant to this Agreement, provided, that, nothing contained herein shall limit the disclosure of
any such information: (i) to the extent required by statute, rule, regulation, subpoena or court order, (ii) to bank examiners
and other regulators, auditors and/or accountants, in connection with any litigation to which Agent, such Lender or Issuing Bank
is a party, (iii) to any Lender or Participant (or prospective Lender or Participant) or Issuing Bank or to any Affiliate of any
Lender so long as such Lender, Participant (or prospective Lender or Participant), Issuing Bank or Affiliate shall have been instructed
to treat such information as confidential in accordance with this Section 13.5, or (iv) to counsel for Agent, any Lender,
Participant (or prospective Lender or Participant). Agent and Lenders shall not publicly disclose consummation of this Agreement
prior to a public disclosure of the same by Ultimate Parent, Parent or any of their respective Affiliates.


 






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(b)              
In the event that Agent, any Lender or Issuing Bank receives a request or demand to disclose any confidential information
pursuant to any subpoena or court order, Agent or such Lender or Issuing Bank, as the case may be, agrees (i) to the extent permitted
by applicable law or if permitted by applicable law, to the extent Agent or such Lender or Issuing Bank determines in good faith
that it will not create any risk of liability to Agent or such Lender or Issuing Bank, Agent or such Lender or Issuing Bank will
promptly notify Administrative Borrower of such request so that Administrative Borrower may seek a protective order or other appropriate
relief or remedy and (ii) if disclosure of such information is required, disclose such information and, subject to reimbursement
by Borrowers of Agent’s or such Lender’s or Issuing Bank’s expenses, cooperate with Administrative Borrower in
the reasonable efforts to obtain an order or other reliable assurance that confidential treatment will be accorded to such portion
of the disclosed information which Administrative Borrower so designates, to the extent permitted by applicable law or if permitted
by applicable law, to the extent Agent or such Lender or Issuing Bank determines in good faith that it will not create any risk
of liability to Agent or such Lender or Issuing Bank.


 


(c)              
In no event shall this Section 13.5 or any other provision of this Agreement, any of the other Financing
Agreements or applicable law be deemed: (i) to apply to or restrict disclosure of information that has been or is made public by
any Borrower, Guarantor or any third party or otherwise becomes generally available to the public other than as a result of a disclosure
in violation hereof, (ii) to apply to or restrict disclosure of information that was or becomes available to Agent, any Lender
(or any Affiliate of any Lender) or Issuing Bank on a non-confidential basis from a Person other than a Borrower or Guarantor,
(iii) to require Agent, any Lender or Issuing Bank to return any materials furnished by a Borrower or Guarantor to Agent, a Lender
or Issuing Bank or prevent Agent, a Lender or Issuing Bank from responding to routine informational requests in accordance with
the Code of Ethics for the Exchange of Credit Information promulgated by The Robert Morris Associates or other applicable industry
standards relating to the exchange of credit information. The obligations of Agent, Lenders and Issuing Bank under this Section 13.5
shall supersede and replace the obligations of Agent, Lenders and Issuing Bank under any confidentiality letter signed prior to
the date hereof or any other arrangements concerning the confidentiality of information provided by any Borrower or Guarantor to
Agent or any Lender.


 


(d)              
Agent and Lenders may share with their respective Affiliates any information relating to the Credit Facility and
Borrowers and Guarantors. Agent and Lenders may disclose information relating to the Credit Facility to Gold Sheets and other similar
bank trade publications with such information to consist of deal terms and other information customarily found in such publications.
In addition, Agent and Lenders and their respective Affiliates may otherwise use the corporate names, logos and other insignia
of Borrowers and Guarantors in “tombstones” or other advertisements or public statements or other marketing materials
of Agent and Lenders and their respective Affiliates.


 






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13.6         
Successors. This Agreement, the other Financing Agreements and any other document referred to herein or therein
shall be binding upon and inure to the benefit of and be enforceable by Agent, Secured Parties, Borrowers, Guarantors and their
respective successors and assigns, except that no Borrower may assign its rights under this Agreement, the other Financing Agreements
and any other document referred to herein or therein without the prior written consent of Agent and Lenders. Any such purported
assignment without such express prior written consent shall be void. No Secured Party may assign its rights and obligations under
this Agreement without the prior written consent of Agent, except as provided in Section 13.7 below. The terms and
provisions of this Agreement and the other Financing Agreements are for the purpose of defining the relative rights and obligations
of Borrowers, Guarantors, Agent and Secured Parties with respect to the transactions contemplated hereby and there shall be no
third party beneficiaries of any of the terms and provisions of this Agreement or any of the other Financing Agreements.


 


13.7         
Assignments; Participations.


 


(a)              
Each Lender may, with the prior written consent of Agent as required pursuant to the within definition of “Eligible
Transferee”, assign all or, if less than all, a portion equal to at least $5,000,000 in the aggregate for the assigning Lender,
of such rights and obligations under this Agreement to one or more Eligible Transferees (but not including for this purpose any
assignments in the form of a participation), each of which assignees shall become a party to this Agreement as a Lender by execution
of an Assignment and Assumption; provided, that, (i) such transfer or assignment will not be effective until recorded by
Agent on the Register and (ii) Agent shall have received for its sole account payment of a processing fee from the assigning Lender
or the assignee in the amount of $5,000.


 


(b)              
Agent, acting for this purpose as any an
agent of the Borrowers, shall maintain at one of its offices a register of the names and addresses of the Lenders, the
Lender’s Lenders’
Revolving Commitment Commitments
and Pro Rata Share of the Aggregate Revolving Commitment Amounts and the principal amount of the Loans and Letter of
Credit Obligations owing to, each Lender pursuant to the terms hereof from time to time (the “Register”). Agent
shall also maintain a copy of each Assignment and Assumption delivered to and accepted by it and shall modify the Register to give
effect to each Assignment and Assumption. The entries in the Register shall be conclusive and binding for all purposes, absent
manifest error, and any Borrowers, Guarantors, Agent and Lenders may treat each Person whose name is recorded in the Register as
a Lender hereunder for all purposes of this Agreement. The Register shall be available for inspection by Administrative Borrower
and any Lender at any reasonable time and from time to time upon reasonable prior notice


 


(c)              
Upon such execution, delivery, acceptance and recording, from and after the effective date specified in each Assignment
and Assumption, the assignee thereunder shall be a party hereto and to the other Financing Agreements and, to the extent that rights
and obligations hereunder have been assigned to it pursuant to such Assignment and Assumption, have the rights and obligations
(including, without limitation, the obligation to participate in Letter of Credit Obligations) of a Lender hereunder and thereunder
and the assigning Lender shall, to the extent that rights and obligations hereunder have been assigned by it pursuant to such Assignment
and Assumption, relinquish its rights and be released from its obligations under this Agreement but shall continue to be entitled
to the benefits of Sections 3.4, 3.5 and 11.6).


 






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(d)              
By execution and delivery of an Assignment and Assumption, the assignor and assignee thereunder confirm to and agree
with each other and the other parties hereto as follows: (i) other than as provided in such Assignment and Assumption, the assigning
Lender makes no representation or warranty and assumes no responsibility with respect to any statements, warranties or representations
made in or in connection with this Agreement or any of the other Financing Agreements or the execution, legality, enforceability,
genuineness, sufficiency or value of this Agreement or any of the other Financing Agreements furnished pursuant hereto, (ii) the
assigning Lender makes no representation or warranty and assumes no responsibility with respect to the financial condition of any
Borrower, Guarantor or any of their Subsidiaries or the performance or observance by any Borrower or Guarantor of any of the Obligations;
(iii) such assignee confirms that it has received a copy of this Agreement and the other Financing Agreements, together with such
other documents and information it has deemed appropriate to make its own credit analysis and decision to enter into such Assignment
and Assumption, (iv) such assignee will, independently and without reliance upon the assigning Lender, Agent and based on such
documents and information as it shall deem appropriate at the time, continue to make its own credit decisions in taking or not
taking action under this Agreement and the other Financing Agreements, (v) such assignee appoints and authorizes Agent to take
such action as agent on its behalf and to exercise such powers under this Agreement and the other Financing Agreements as are delegated
to Agent by the terms hereof and thereof, together with such powers as are reasonably incidental thereto, and (vi) such assignee
agrees that it will perform in accordance with their terms all of the obligations which by the terms of this Agreement and the
other Financing Agreements are required to be performed by it as a Lender. Agent and Lenders may furnish any information concerning
any Borrower or Guarantor in the possession of Agent or any Lender from time to time to assignees and Participants.


 


(e)              
Each Lender may sell participations to one or more banks or other entities in or to all or a portion of its rights
and obligations under this Agreement and the other Financing Agreements (including, all or a portion of its Commitments and the
Loans owing to it and its participation in the Letter of Credit Obligations, without the consent of Agent or the other Lenders);
provided, that, (i) such Lender’s obligations under this Agreement (including, without limitation, its Commitment
hereunder) and the other Financing Agreements shall remain unchanged, (ii) such Lender shall remain solely responsible to the other
parties hereto for the performance of such obligations, and Borrowers, Guarantors, the other Lenders and Agent shall continue to
deal solely and directly with such Lender in connection with such Lender’s rights and obligations under this Agreement and
the other Financing Agreements, and (iii) the Participant shall not have any rights under this Agreement or any of the other Financing
Agreements (the Participant’s rights against such Lender in respect of such participation to be those set forth in the agreement
executed by such Lender in favor of the Participant relating thereto) and all amounts payable by any Borrower or Guarantor hereunder
shall be determined as if such Lender had not sold such participation. Each Borrower agrees that each Participant shall be entitled
to the benefits of Sections 3.3 and 3.5 (subject to the requirements and limitations therein, including the requirements under
Section 3.5(f) (it being understood that the documentation required under Section 3.5(f) shall be delivered to the participating
Lender)) to the same extent as if it were a Lender and had acquired its interest by assignment pursuant to this Section; provided
that such shall not be entitled to receive any greater payment under Section 3.3 and 3.5, with respect to any participation,
than its participating Lender would have been entitled to receive, except to the extent such entitlement to receive a greater payment
results from a Change in Law that occurs after the Participant acquired the applicable participation. Each Lender that sells a
participation shall, acting solely for this purpose as a non-fiduciary agent of the Borrowers, maintain a register on which it
enters the name and address of each Participant and the principal amounts (and stated interest) of each Participant’s interest
in the Loans or other obligations under the Financing Agreements (the “Participant Register”); provided
that no Lender shall have any obligation to disclose all or any portion of the Participant Register (including the identity of
any Participant or any information relating to a Participant's interest in any commitments, loans, letters of credit or its other
obligations under any Financing Agreement) to any Person except to the extent that such disclosure is necessary to establish that
such commitment, loan, letter of credit or other obligation is in registered form under Section 5f.103-1(c) of the United
States Treasury Regulations. The entries in the Participant Register shall be conclusive absent manifest error, and such Lender
shall treat each Person whose name is recorded in the Participant Register as the owner of such participation for all purposes
of this Agreement notwithstanding any notice to the contrary. For the avoidance of doubt, the Agent (in its capacity as Agent)
shall have no responsibility for maintaining a Participant Register.


 






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(f)               
Nothing in this Agreement shall prevent or prohibit any Lender from pledging its Loans hereunder to a Federal Reserve
Bank in support of borrowings made by such Lenders from such Federal Reserve Bank; provided, that, no such pledge shall
release such Lender from any of its obligations hereunder or substitute any such pledgee for such Lender as a party hereto.


 


(g)              
Borrowers and Guarantors shall assist Agent or any Lender permitted to sell assignments or participations under this
Section 13.7 in whatever manner reasonably necessary in order to enable or effect any such assignment or participation,
including (but not limited to) the execution and delivery of any and all agreements, notes and other documents and instruments
as shall be requested and the delivery of informational materials, appraisals or other documents for, and the participation of
relevant management in meetings and conference calls with, potential Lenders or Participants. Borrowers shall certify the correctness,
completeness and accuracy, in all material respects, of all descriptions of Borrowers and Guarantors and their affairs provided,
prepared or reviewed by any Borrower or Guarantor that are contained in any selling materials and all other information provided
by it and included in such materials.


 


(h)              
Any Lender that is an Issuing Bank may at any time assign all of its Commitments pursuant to this Section 13.7.
If such Issuing Bank ceases to be Lender, it may, at its option, resign as Issuing Bank and such Issuing Bank’s obligations
to issue Letters of Credit shall terminate but it shall retain all of the rights and obligations of Issuing Bank hereunder with
respect to Letters of Credit outstanding as of the effective date of its resignation and all Letter of Credit Obligations with
respect thereto (including the right to require Revolving Lenders to make Revolving Loans or fund risk participations in outstanding
Letter of Credit Obligations), shall continue.


 


13.8         
Entire Agreement. This Agreement, the other Financing Agreements, any supplements hereto or thereto, and any
instruments or documents delivered or to be delivered in connection herewith or therewith represents the entire agreement and understanding
concerning the subject matter hereof and thereof between the parties hereto, and supersede all other prior agreements, understandings,
negotiations and discussions, representations, warranties, commitments, proposals, offers and contracts concerning the subject
matter hereof, whether oral or written. In the event of any inconsistency between the terms of this Agreement and any schedule
or exhibit hereto, the terms of this Agreement shall govern.


 






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13.9         
USA Patriot Act. Each Lender subject to the USA PATRIOT Act (Title III of Pub.L. 107-56 (signed
into law October 26, 2001) (the “Act”) hereby notifies Borrowers and Guarantors that pursuant to the requirements
of the Act, it is required to obtain, verify and record information that identifies each Person or corporation who opens an account
and/or enters into a business relationship with it, which information includes the name and address of Borrowers and Guarantors
and other information that will allow such Lender to identify such Person in accordance with the Act and any other applicable law.
Borrowers and Guarantors are hereby advised that any Loans or Letters of Credit hereunder are subject to satisfactory results of
such verification.


 


13.10     
Counterparts, Etc. This Agreement or any of the other Financing Agreements may be executed in any number of
counterparts, each of which shall be an original, but all of which taken together shall constitute one and the same agreement.
Delivery of an executed counterpart of this Agreement or any of the other Financing Agreements by telefacsimile or other electronic
method of transmission shall have the same force and effect as the delivery of an original executed counterpart of this Agreement
or any of such other Financing Agreements. Any party delivering an executed counterpart of any such agreement by telefacsimile
or other electronic method of transmission shall also deliver an original executed counterpart, but the failure to do so shall
not affect the validity, enforceability or binding effect of such agreement.


 


13.11     
Restatement. The Existing Credit Agreement is hereby amended and restated in its entirety by this Agreement.


 


13.12     
Acknowledgment Regarding Any Supported QFCs. To the extent that the Financing Agreements provide support,
through a guarantee or otherwise, for Hedge Agreements or any other agreement or instrument that is a QFC (such support “QFC
Credit Support” and each such QFC a “Supported QFC”), the parties acknowledge and agree as follows
with respect to the resolution power of the Federal Deposit Insurance Corporation under the Federal Deposit Insurance Act and Title
II of the Dodd-Frank Wall Street Reform and Consumer Protection Act (together with the regulations promulgated thereunder, the
“U.S. Special Resolution Regimes”) in respect of such Supported QFC and QFC Credit Support (with the provisions
below applicable notwithstanding that the Financing Agreements and any Supported QFC may in fact be stated to be governed by the
laws of the State of New York and/or of the United States or any other state of the United States):


 


In the event a Covered Entity that is party to a Supported QFC (each,
a “Covered Party”) becomes subject to a proceeding under a U.S. Special Resolution Regime, the transfer of such
Supported QFC and the benefit of such QFC Credit Support (and any interest and obligation in or under such Supported QFC and such
QFC Credit Support, and any rights in property securing such Supported QFC or such QFC Credit Support) from such Covered Party
will be effective to the same extent as the transfer would be effective under the U.S. Special Resolution Regime if the Supported
QFC and such QFC Credit Support (and any such interest, obligation and rights in property) were governed by the laws of the United
States or a state of the United States. In the event a Covered Party or a BHC Act Affiliate of a Covered Party becomes subject
to a proceeding under a U.S. Special Resolution Regime, Default Rights under the Financing Agreements that might otherwise apply
to such Supported QFC or any QFC Credit Support that may be exercised against such Covered Party are permitted to be exercised
to no greater extent than such Default Rights could be exercised under the U.S. Special Resolution Regime if the Supported QFC
and the Financing Agreements were governed by the laws of the United States or a state of the United States. Without limitation
of the foregoing, it is understood and agreed that rights and remedies of the parties with respect to a Defaulting Lender shall
in no event affect the rights of any Covered Party with respect to a Supported QFC or any QFC Credit Support.


 






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13.13     
Intercreditor Agreement. This Agreement and the other Financing Agreements are subject to the terms and conditions
set forth in the Intercreditor Agreement in all respects and, in the event of any conflict between the terms of the Intercreditor
Agreement and this Agreement, the terms of the Intercreditor Agreement shall govern. Notwithstanding anything herein to the contrary,
the lien and security interest granted to the Agent or the Term Loan Agent, as applicable, pursuant to any Financing Agreement
or Term Loan Document, and the exercise of any right or remedy in respect of the Collateral by the Agent or the Term Loan Agent,
as applicable hereunder, under any other Financing Agreement, or under the Term Loan Agreement and any other agreement entered
into in connection therewith are subject to the provisions of the Intercreditor Agreement and in the event of any conflict between
the terms of the Intercreditor Agreement, this Agreement, any other Financing Agreement, the Term Loan Agreement and any other
agreement entered into in connection therewith, the terms of the Intercreditor Agreement shall govern and control with respect
to the exercise of any such right or remedy or the Loan Parties’ covenants and obligations.


 


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IN WITNESS WHEREOF, Agent, Lenders, Borrowers
and Guarantors have caused these presents to be duly executed as of the day and year first above written.


 


BORROWERS:


 


VITAMIN SHOPPE INDUSTRIES LLC


 


By: _____________________________

Name: ___________________________

Title:  ____________________________


 


VITAMIN SHOPPE MARINER, LLC


 


By: _____________________________

Name: ___________________________

Title:  ____________________________


 


VITAMIN SHOPPE GLOBAL, LLC


 


By: _____________________________

Name: ___________________________

Title:  ____________________________


 


VITAMIN SHOP FLORIDA, LLC


 


By: _____________________________

Name: ___________________________

Title:  ____________________________


 


BETANCOURT SPORTS NUTRITION, LLC


 


By: _____________________________

Name: ___________________________

Title:  ____________________________


 






    [Signature Page to Loan and Security Agreement]


     


    

VITAMIN SHOPPE PROCUREMENT SERVICES, LLC


 


By: _____________________________

Name: ___________________________

Title:  ____________________________


 


GUARANTORS:


 


VALOR ACQUISITION, LLC (successor by merger to Vitamin Shoppe,
Inc.)


 


By: _____________________________

Name: ___________________________

Title:  ____________________________


 


[SIGNATURES CONTINUED ON NEXT PAGE]


 


 


 


 


 


 


 


 


 


 


 






    [Signature Page to Loan and Security Agreement]


     


    

[SIGNATURES CONTINUED FROM PREVIOUS PAGE]


 


AGENT:


 


JPMORGAN CHASE BANK, N.A.,

as Agent and Issuing Bank


 


By: ____________________________

Name: 

Title: Authorized Officer


 


LENDERS:


 


JPMORGAN CHASE BANK, N.A.,

as Agent and Issuing Bank


 


By:  ____________________________ 

Name:

Title: Authorized Officer


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 






    [Signature Page to Loan and Security Agreement]


     


    

Schedule 1



REVOLVING COMMITMENTS

(AS OF THE CLOSING DATE)


 


	Lender	Revolving Commitment
	JPMorgan Chase Bank, N.A.	$100,000,000.00
	Total	$100,000,000.00