Document:

Exhibit 10.19

 

EXECUTION VERSION

  

AMENDMENT NO. 6 TO
CREDIT AGREEMENT

 

This
AMENDMENT NO. 6 TO CREDIT AGREEMENT (this "Amendment"), dated as of October 15, 2019, is entered into by and
among Hydrofarm Holdings LLC, a Delaware limited liability company ("Holdings"), Hydrofarm, LLC, a California
limited liability company ("Hydrofarm"), EHH Holdings, LLC ("EHH''), a Delaware limited liability
company, and SunBlaster, LLC, a Delaware limited liability company ("SunBlaster", and together with Hydrofarm
and EHH, collectively, the "Borrowers"), the lenders party to the Credit Agreement referred to below (collectively,
the "Lenders" and each individually a "Lender") that are signatories hereto, and Brightwood
Loan Services LLC, in its capacity as Administrative Agent for the Lenders. Capitalized terms used but not otherwise defined herein
shall have the respective meanings ascribed thereto in the Credit Agreement (as defined below).

 

W I T N E S S E T H:

 

WHEREAS, Holdings
and the Borrowers have entered into financing arrangements pursuant to which the Lenders have made and provided loans and other
financial accommodations to the Borrowers as set forth in the Credit Agreement, dated as of May 12, 2017, by and among Holdings,
the Borrowers, the Lenders and the Administrative Agent (as the same has heretofore been, and may hereafter be, amended, modified,
supplemented, extended, renewed, restated or replaced, the "Credit Agreement");

 

WHEREAS, Holdings
and the Borrowers desire to amend certain provisions of the Credit Agreement as set forth herein;

 

WHEREAS,
pursuant to Section 9.1 of the Credit Agreement, in order to effect the amendments to the Credit Agreement contemplated by this
Amendment, this Amendment must be approved by the Required Lenders; and

 

WHEREAS, the undersigned Lenders constitute the
Required Lenders.

 

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

 

SECTION 1.     Amendments.
Subject to the terms and conditions hereof, effective as of the Amendment No. 6 Effective Date (as defined below) and subject
to the satisfaction of the conditions precedent set forth in Section 3:

 

(a)      The
definition of"Financial Covenants" set forth in Section 1.1 of the Credit Agreement is hereby amended and restated to
read in its entirety as follows:

 

"Financial
Covenants" the covenants, agreements and obligations set forth in Sections 6.1(c) and 6.1(d)

 

    

     

    

 

(b)      The definition of "Test Period" set forth in Section 1.1 of the Credit Agreement is hereby amended by deleting the phrase
 "July 1, 2018" set forth therein and inserting the phrase "January 1, 2020" in replacement thereof.

 

(c)      Section
6.1(a) of the Credit Agreement is hereby amended and restated to read in its entirety as follows:

 

(a)        Intentionally
Omitted.

 

(d)      Section
6.l(b) of the Credit Agreement is hereby amended and restated to read in its entirety as follows:

 

(b)        Intentionally
Omitted.

 

(e)      Section 6.1(c) of the Credit Agreement is hereby amended and restated to read in its entirety as follows:

 

(c)        Cumulative
EBITDA. The Borrowers shall not permit the Cumulative EBITDA for any date set forth in the table below for the Test Period
ending on such date to be less than the minimum Cumulative EBITDA set forth opposite such date:

 

	Month Ending	 	Minimum Cumulative EBITDA	 
	January 31, 2020	 	$	(625,000	)
	February 29, 2020	 	$	(313,000	)
	March 31' 2020	 	$	(217,000	)
	April 30, 2020	 	$	789,000	 
	May 31,2020	 	$	1384,000	 
	June 30, 2020	 	$	2,000,000	 
	July 31, 2020	 	$	2
750,000	 
	August 31, 2020	 	$	3,000,000	 
	September 30,2020	 	$	3
500,000	 
	October 31, 2020	 	$	3,750,000	 
	November 30, 2020	 	$	4
000,000	 
	December 31, 2020	 	$	4,375,000	 
	March 31,2021	 	$	5 000,000	 
	June 30,2021	 	$	5,250,000	 
	September 30, 2021	 	$	5
750,000	 
	December 31, 2021	 	$	6,500,000	 
	March 31' 2022	 	$	7
250,000	 

 

(f)       Section
6.l(d) of the Credit Agreement is hereby amended and restated to read in its entirety as follows:

 

    2

     

    

 

(d)       Liquidity.
At all times, the Loan Parties shall not permit (A) the sum of (i) the Borrowing Base (as defined in the Revolving Loan Agreement)
in respect of the assets of the U.S. Obligors (as defined in the Revolving Loan Agreement), Revolving Loan Agreement), plus (iii)
the aggregate amount of Book Cash and cash equivalents on hand of the Loan Parties that are located in a deposit account in the
United States and which are subject to a perfected lien in favor of the Administrative Agent for the benefit of the Secured Parties
to be less than $2,000,000 or (B) "Excess Availability" (as defined in the Revolving Loan Agreement) to be less than
(x) $0 at any time prior to the "Availability Block Release Date" (as defined in the Revolving Loan Agreement), or (y)
the "Minimum Excess Availability Amount" (as defined in the Revolving Loan Agreement) at any time on or after the "Availability
Block Release Date" (as defined in the Revolving Loan Agreement).

 

SECTION 2.     Amendment
Fee. Effective as of the Amendment No. 6 Effective Date, the Borrowers shall pay an amendment fee (the "Amendment Fee")
for the benefit of each of the Lenders in an amount equal to 0.50% of the outstanding principal amount of the Term Loans held
by each such Lender (which, for the avoidance of doubt, shall equal an aggregate Amendment Fee of $415,217). The Amendment Fee
shall be paid by the Borrowers to each Lender on the Amendment No. 6 Effective Date as follows:

 

(a)       50% of the Amendment Fee
payable to each Lender shall be paid by the Borrowers to such Lender in cash on the Amendment No. 6 Effective Date; and

 

(b)      50%
of the Amendment Fee payable to each Lender shall be paid by the Borrowers to such Lender by capitalizing 50% of the Amendment
Fee payable to such Lender on the Amendment No. 6 Effective Date and adding it to (and thereby increasing) the outstanding principal
amount of the Term Loans held by such Lender hereunder. For the avoidance of doubt, for all purposes of the Credit Agreement and
each of the other Loan Documents, the outstanding principal amount of the Term Loans owed to each Lender on the Amendment No.
6 Effective Date shall, effective as of the Amendment No. 6 Effective Date, be increased by 50% of the Amendment Fee payable to
such Lender under this Section 2 on such date.

 

SECTION 3.     Conditions
Precedent. This Amendment shall only become effective upon the date (the "Amendment No. 6 Effective Date")
on which each of the following conditions precedent shall have been satisfied in a manner reasonably satisfactory to the Administrative
Agent:

 

(a)      the
Administrative Agent shall have received counterparts of this Amendment, duly authorized, executed and delivered by Holdings,
the Borrowers and the Required Lenders;

 

(b)      each
of the Lenders shall have received payment in cash from the Borrowers in an amount equal to 50% of the Amendment Fee payable to
each such Lender, in accordance with Section 2(a) above;

 

(c)      the Administrative
Agent shall have received a fully executed copy of an amendment, dated as of the Amendment No. 6 Effective Date (the "Side
Letter Amendment"), to that certain letter agreement, dated as of March 15, 2019, among Hydrofarm Holdings Group, Inc.,
Hydrofarm Investment Corp., Holdings, the Borrowers and the Administrative Agent;

 

    3

     

    

 

(d)      the
Administrative Agent shall have received a fully executed copy of an amendment to the Revolving Loan Agreement, dated as of the
Amendment No. 6 Effective Date (the "Revolving Loan Amendment"), in form and substance reasonably satisfactory
to the Administrative Agent, together with a certificate of a Responsible Officer of the Borrower Agent certifying that each such
document is a true, correct, and complete copy thereof;

 

(e)      after giving effect to this Amendment, the Side Letter Amendment, the Revolving Loan Amendment and the transactions contemplated
hereby and thereby, all representations and warranties contained in this Amendment, the Credit Agreement and each of the other
Loan Documents shall be true and correct in all material respects (except that such materiality qualifier shall not be applicable
to any representation or warranty that is already qualified or modified by materiality in the text thereof) on and as of the Amendment
No. 6 Effective Date as if made on the Amendment No. 6 Effective Date, except to the extent any such representation or warranty
is made as of a specified date, in which case such representation or warranty shall have been true and correct in all material
respects (except that such materiality qualifier shall not be applicable to any representation or warranty that is already qualified
or modified by materiality in the text thereof) as of such date;

 

(f)       after
giving effect to this Amendment, the Side Letter Amendment and the Revolving Loan Amendment and the transactions contemplated
hereby and thereby, no Default or Event of Default shall exist or have occurred and be continuing as of the Amendment No. 6

Effective Date; and

 

(g)      the
Loan Parties shall have paid all reasonable costs and expenses of the Administrative Agent (including reasonable and documented
legal fees and expenses) incurred in connection with the preparation and execution of this Amendment and incident to all proceedings
in connection with, transactions contemplated by, and documents relating to this Amendment and the Loan Documents, which payment
shall be nonrefundable.

 

SECTION 4.     Representations
and Warranties. Each of Holdings and each Borrower hereby represents and warrants to the Administrative Agent and Lenders
as follows, which representations and warranties shall survive the execution and delivery hereof:

 

(a)      after
giving effect to this Amendment, the Side Letter Amendment and the Revolving Loan Amendment and the transactions contemplated
hereby and thereby, as of the Amendment No. 6 Effective Date, no Default or Event of Default exists or has occurred and is continuing;

 

(b)      this
Amendment, the Side Letter Amendment and the Revolving Loan Amendment and each other agreement to be executed and delivered
in connection herewith or therewith (together with this Amendment, the "Amendment Documents"), has been duly
authorized, executed and delivered by all necessary action on the part of each Loan Party which is a party hereto or thereto
and, if necessary, their respective members or stockholders, as the case may be, and is in full force and effect as of the
Amendment No. 6 Effective Date and the agreements and obligations of the Loan Parties contained herein and therein constitute
(or when executed and delivered, will constitute) legal, valid and binding obligations of Loan Parties enforceable against
them in accordance with their terms, except as such enforceability may be limited by bankruptcy, insolvency, fraudulent
transfer or conveyance, moratorium, or other similar laws relating to the enforcement of creditors' rights generally and by
general equitable principles;

 

    4

     

    

 

(c)      after giving effect to this Amendment, the Side Letter Amendment and the Revolving Loan Amendment and the transactions contemplated
hereby and thereby, as of the Amendment No. 6 Effective Date, all representations and warranties contained in this Amendment, the
Amendment Documents, the Credit Agreement and each of the other Loan Documents are true and correct in all material respects (except
that such materiality qualifier shall not be applicable to any representation or warranty
that is already qualified or modified by materiality in the text thereof) on and as of the Amendment No. 6 Effective Date as if
made on the Amendment No. 6 Effective Date, except to the extent any such representation or warranty is made as of a specified
date, in which case such representation or warranty were true and correct in all material respects (except that such materiality
qualifier shall not be applicable to any representation or warranty that is already qualified or modified by materiality in the
text thereof) as of such date; and

 

(d)      neither
the execution, delivery and performance of this Amendment, the Side Letter Amendment, the Revolving Loan Amendment, or any other
Amendment Document, nor the consummation of any of the transactions contemplated hereby or thereby, (i) are in contravention of
any applicable law or any indenture, agreement or undertaking to which any Loan Party is a party or by which any Loan Party or
its property is bound, or (ii) violates any provision of the certificate of incorporation, certificate of formation, by-laws,
operating agreement or other governing documents of such Loan Party.

 

SECTION 5.      Effect
of this Amendment; Ratification.

 

(a)      Except as expressly set forth herein or in the Side Letter Amendment, no other amendments, consents, changes or modifications
to the Credit Agreement or the other Loan Documents are intended or implied, and in all other respects the Credit Agreement and
the other Loan Documents are hereby specifically ratified, restated and confirmed by all parties hereto as of the Amendment No.
6 Effective Date and Loan Parties shall not be entitled to any other or further amendment by virtue of the provisions of this
Amendment or with respect to the subject matter of this Amendment. This Amendment shall not operate as a waiver of any obligation
of Holdings, any Borrower or any other Loan Party under, or any right, power, or remedy of the Administrative Agent or the Lenders
under, the Credit Agreement or the other Loan Documents. This Amendment is not a novation or discharge of any of the obligations
of Holdings, the Borrowers or the other Loan Parties under the Credit Agreement and the other Loan Documents. This Amendment shall
be deemed to be a Loan Document. The Credit Agreement and this Amendment shall be read and construed as one agreement.

 

(b)      For the benefit of the Administrative Agent and the Lenders, each of the Loan Parties hereby (i) affirms and confirms its guarantees,
pledges, grants of collateral and security interests and other undertakings under the Credit Agreement and the other Loan Documents
to which it is a party, (ii) ratifies and reaffirms all of its payment and performance obligations, contingent
or otherwise, under the Credit Agreement and each of the other Loan Documents Agreements to which it is a party and (iii) agrees
that (x) the Credit Agreement and each other Loan Document to which it is a party shall continue to be in full force and effect
and (y) all guarantees, pledges, grants of collateral and security interests and other undertakings the Credit Agreement and each
other Loan Document to which it is a party shall continue to be in full force and effect and shall accrue to the benefit of the
Administrative Agent and the Lenders.

 

    5

     

    

 

SECTION 6.      Acknowledgements.
Each of the Loan Parties, jointly and severally, hereby acknowledges, agrees, confirms, reaffirms and stipulates:

 

(a)      (x) to the validity, legality and enforceability of each of the guarantees of the Obligations set forth in the Loan Documents;
(y) that the reaffirmation of each of the guarantees of the Obligations set forth in the Loan Documents is a material inducement
to the Lenders and the Administrative Agent; and (z) that it has no defense to the enforcement of each of the guarantees of the
Obligations set forth in the Loan Documents and its obligations under each such guarantee shall remain in full force and effect
until all the Obligations have been paid in full;

 

(b)      (x) to the validity, legality and enforceability of each of the Secured Liens on the assets and property of each of the Loan Parties
pursuant to the Loan Documents; (y) that the reaffinnation of each of the Secured Liens is a material inducement to the Lenders
and the Administrative Agent; and (z) that it has no defense to the enforcement of the Secured Liens and the Secured Liens shall
remain in full force and effect until all the Obligations have been paid in full;

 

(c)      that
each Loan Party hereby waives and releases any and all defenses, affirmative defenses, setoffs, claims, counterclaims, and causes
of action of any kind or nature which he has asserted, or might assert, against any Lender, the Administrative Agent or any of
their respective subsidiaries or affiliates, or any of the past, present or future officers, directors, contractors, employees,
attorneys or agents of any Lender, the Administrative Agent or any such subsidiary or affiliate, which in any way relate to or
arise out of the Obligations, the Secured Liens or any of the Loan Documents;

 

(d)      that each Loan Party consents to the execution and delivery of this Amendment and agrees and acknowledges that the liability of
each Loan Party under each of the Loan Documents, and the existence, creation, perfection or enforceability of any of the Secured
Liens, shall not be diminished in any way by the execution and delivery of this Amendment or by the consummation of any of the
transactions contemplated hereby or thereby;

 

(e)      that
all notices required under the Loan Documents to be given by the Lenders or the Administrative Agent have been given by the Lenders
or the Administrative Agent or validly waived, including, without limitation, all notices of default, and all rights and/or opportunities
to cure related thereto have expired or lapsed;

 

(f)       except as expressly set forth herein, neither any Lender nor the Administrative Agent has agreed to (and has no obligation whatsoever
to discuss, negotiate or agree to) any restructuring, modification, amendment, waiver or forbearance with respect to the Obligations
or any of the terms of the Loan Documents;

 

(g)      no
understanding with respect to any other restructuring, modification, amendment, waiver or forbearance with respect to the
Obligations or any of the terms of the Loan Documents shall constitute a legally binding agreement or contract, or have any
force or effect whatsoever, unless and until reduced to writing and signed by authorized representatives of each Loan Party,
each Lender and the Administrative Agent;

 

    6

     

    

  

(h)      the
execution and delivery of this Amendment has not established any course of dealing between the parties hereto or created any obligation
or agreement of any Lender or the Administrative Agent with respect to any future restructuring, modification, amendment, waiver
or forbearance with respect to the Obligations or any of the terms of the Loan Documents; and

 

(i)       neither
any Lender nor the Administrative Agent is required to make any loan advance to any Loan Party under the Loan Documents or otherwise,
and any further loan advances made shall be made in the sole discretion of each such Lender and the Administrative Agent and subject
to such conditions and the payment of such fees as each such Lender and the Administrative Agent requires in their sole discretion.

 

SECTION 7.      Indemnity
and Release.

 

(a)      Each
of the Loan Parties, jointly and severally, on behalf of itself and each of its Subsidiaries and affiliates, hereby waives, releases
and discharges each Lender and the Administrative Agent, and all of the directors, officers, employees, attorneys, agents, successors
and assigns of each Lender and the Administrative Agent, from any and all claims, demands, actions, causes of action, damages,
costs, expenses and liabilities, known or unknown, anticipated or unanticipated, suspected or unsuspected, asserted or unasserted,
fixed, contingent or conditional, at law or in equity, arising out of or in any way relating to the Loan Documents or any documents,
agreements, dealings or other matters connected with the Loan Documents, in each case to the extent arising (x) on or prior to
the date hereof or (y) out of, or relating to, any actions, dealings or matters occurring on or prior to the date hereof. The
waivers, releases, and discharges in this Section 7 shall be effective on the Amendment No. 6 Effective Date regardless
of whether any post Amendment No. 6 Effective Date conditions to this Amendment are satisfied and regardless of any other event
that may occur or not occur after the date hereof.

 

(b)      Each of the Loan
Parties, jointly and severally, agrees to defend, protect, indemnify and hold harmless each Lender and the Administrative Agent
and all of their respective officers, directors, employees, attorneys, consultants and agents (collectively called the "lndemnitees")
from and against any and all losses, damages, liabilities, obligations, penalties, fees, reasonable costs and expenses (including,
without limitation, reasonable fees, costs and expenses of outside counsel) incurred by such Indemnitees, whether direct, indirect
or consequential, as a result of or arising from or relating to or in connection with any of the following: (i) the execution
or performance or enforcement of this Amendment, any other Loan Document or any other document executed in connection with the
transactions contemplated by this Amendment; or (ii) any claim, litigation, investigation or proceeding relating to any of the
foregoing, whether or not any Indemnitee is a party thereto. This indemnity shall survive the repayment of the Obligations and
the discharge of the liens granted under the Loan Documents.

 

    7

     

    

 

SECTION 8.     Expenses. The Loan Parties, joint and
severally agree to pay, or reimburse, the Administrative Agent for all expenses reasonably incurred for the preparation and
negotiation of this Amendment and related agreements and instruments and the transactions contemplated hereby, including, but
not limited to, the fees and expenses of counsel to the Administrative Agent.

 

SECTION 9.     Governing
Law. This Amendment, and all matters relating hereto or thereto or arising herefrom or therefrom (whether arising under contract
law, tort law or otherwise) shall, each be deemed to be a contract made under, governed by and interpreted pursuant to the internal
laws (and not the law of conflicts) of the State of New York.

 

SECTION 10.   Binding
Effect. This Amendment shall be binding upon and inure to the benefit of each of the parties hereto and their respective successors
and permitted assigns.

 

SECTION 11.   Captions.
The captions in this Amendment are intended for convenience only and do not constitute and shall not be interpreted as part of
this Amendment.

 

SECTION
12.   No Course of Dealing. Holdings, each Borrower and each other Loan Party acknowledges that (a)
except as expressly set forth herein, neither the Administrative Agent nor any Lender has agreed (and has no obligation
whatsoever to discuss, negotiate or agree) to any restructuring, modification, amendment, extension, waiver, or forbearance
with respect to the Credit Agreement or any other Loan Document or any of the terms thereof, and (b) the execution and
delivery of this Amendment has not established any course of dealing between the parties hereto or created any obligation or
agreement of the Administrative Agent or any Lender with respect to any future restructuring, modification, amendment,
extension, waiver, or forbearance with respect to the Credit Agreement or any other Loan Document or any of the terms
thereof.

 

SECTION 13.   Counterparts.
This Amendment may be executed in any number of and by different parties hereto on separate counterparts, all of which, when so
executed, shall be deemed an original, but all such counterparts shall constitute one and the same agreement. Any signature delivered
by a party by facsimile or electronic transmission (including email transmission of a PDF image) shall be deemed to be an original
signature hereto.

   

 

[Signature
Pages Follow]

 

    8

     

    

 

IN
WITNESS WHEREOF, the parties hereto have caused this Amendment to be duly  executed and  delivered by their  authorized officers
as of the  day  and year first above written.

 

	 	HOLDINGS:
	 	 	 
	 	HYDROFARM HOLDINGS LLC
	 	 	 
	 	By: 	/s/ Peter Wardenburg
	 	Name:  	Peter Wardenburg
	 	Title: 	Manager
	 	 	 
	 	BORROWERS:
	 	 	 
	 	HYDROFARM, LLC
	 	 	 
	 	By: 	/s/ Peter Wardenburg                       
	 	Name:  	Peter Wardenburg
	 	Title: 	President
	 	 	 
	 	EHH HOLDINGS, LLC
	 	 	 
	 	By: 	/s/ Peter Wardenburg
	 	Name:  	Peter Wardenburg
	 	Title: 	Manager
	 	 	 
	 	SUNBLASTER, LLC
	 	 	 
	 	By: 	/s/ Peter Wardenburg
	 	Name:  	Peter Wardenburg
	 	Title: 	President

  

[Signature Page
to Amendment No. 6 to Credit Agreement] 

 

     

     

    

 

	 	ADMINISTRATIVE AGENT:
	 	 	 
	 	BRIGHTWOOD LOAN SERVICES LLC, as Administrative Agent
	 	 	 
	 	By: 	/s/ Sengal Selassie
	 	Name: 	Sengal Selassie
	 	Title: 	Authorized Person
	 	 	 
	 	By: 	/s/ Philip Daniele
	 	Name: 	Philip Daniele
	 	Title: 	Chief Risk Officer

 

[Signature Page
to Amendment No. 6 to Credit Agreement] 

 

     

     

    

  

	 	LENDER:
	 	 	 
	 	BCOF CAPITAL, LP, as Lender
	 	 	 
	 	By:	BCOF Capital Managers, LLC, as its General Partner
	 	 	 
	 	By: 	/s/ Sengal Selassie
	 	Name:  	Sengal Selassie
	 	Title: 	Authorized Person
	 	 	 
	 	By: 	/s/ Philip Daniele
	 	Name:  	Philip Daniele
	 	Title: 	Chief Risk Officer

 

[Signature
Page to Amendment No. 6 to Credit Agreement] 

 

     

     

    

  

	 	LENDER:
	 	 	 
	 	BRIGTHWOOD CAPITAL FUND III HOLDINGS SPV-3, LLC, as Lender
	 	 	 
	 	By:	Brightwood Capital Fund Managers III, LLC, as its Manager
	 	 	 
	 	By: 	/s/ Sengal Selassie
	 	Name:  	Sengal Selassie
	 	Title: 	Authorized Person
	 	 	 
	 	By: 	/s/ Philip Daniele
	 	Name:  	Philip Daniele
	 	Title: 	Chief Risk Officer

 

[Signature
Page to Amendment No. 6 to Credit Agreement] 

 

     

     

    

 

	 	LENDER:
	 	 	 
	 	BRIGTHWOOD CAPITAL FUND III-U, LP, as Lender
	 	 	 
	 	By:	Brightwood
    Capital Fund Managers III, LLC, as its General Partner
	 	 	 
	 	By: 	/s/ Sengal Selassie
	 	Name:  	Sengal Selassie
	 	Title: 	Authorized Person
	 	 	 
	 	By: 	/s/ Philip Daniele
	 	Name:  	Philip Daniele
	 	Title: 	Chief Risk Officer

 

[Signature
Page to Amendment No. 6 to Credit Agreement] 

 

     

     

    

 

	 	LENDER:
	 	 	 
	 	BRIGHTWOOD CAPITAL FUND IV, LP, as Lender
	 	 	 
	 	By:	Brightwood Capital Fund Managers IV, LLC, as its General Partner
	 	 	 
	 	By: 	/s/ Sengal Selassie
	 	Name:  	Sengal Selassie
	 	Title: 	Authorized Person
	 	 	 
	 	By: 	/s/ Philip Daniele
	 	Name:  	Philip Daniele
	 	Title: 	Chief Risk Officer

 

[Signature Page
to Amendment No. 6 to Credit Agreement] 

 

     

     

    

 

	 	LENDER:
	 	 	 
	 	BRIGHTWOOD CAPITAL
    OFFSHORE FUND IV, LP, as Lender
	 	 	 
	 	By:	Brightwood Capital Fund Managers IV, LLC, as its General Partner
	 	 	 
	 	By: 	/s/ Sengal Selassie
	 	Name: 	Sengal Selassie
	 	Title: 	Authorized Person
	 	 	 
	 	By: 	/s/ Philip Daniele
	 	Name: 	Philip Daniele
	 	Title: 	Chief Risk Officer

 

[Signature Page
to Amendment No. 6 to Credit Agreement] 

 

     

     

    

 

	 	LENDER:
	 	 	 
	 	BRIGHTWOOD CAPITAL OFFSHORE FUND IV-U, LP, as
    Lender
	 	 	 
	 	By:	Brightwood Capital Fund Managers IV, LLC, as its General Partner
	 	 	 
	 	By: 	/s/ Sengal Selassie
	 	Name: 	Sengal Selassie
	 	Title: 	Authorized Person
	 	 	 
	 	By: 	/s/ Philip Daniele
	 	Name: 	Philip Daniele
	 	Title: 	Chief Risk Officer

 

[Signature Page
to Amendment No. 6 to Credit Agreement] 

 

     

     

    

 

	 	LENDER:
	 	 	 
	 	HMS INCOME FUND, INC., as Lender
	 	 	 
	 	By: 	/s/ Alejandro Palomo
	 	Name: 
    	Alejandro Palomo
	 	Title: 	Chief Investment
    Officer

 

[Signature
Page to Amendment No. 6 to Credit Agreement] 

 

    

     

    

 

	 	LENDER:
	 	 	 
	 	MAIN
    STREET CAPITAL CORPORATION, as Lender
	 	 	 
	 	By: 	/s/
    Watt Matthews
	 	Name:  	Watt Matthews
	 	Title: 	Managing
    Director

 

[Signature Page
to Amendment No. 6 to Credit Agreement]  

 

     

     

    

  

	 	LENDER:
	 	 	 
	 	TCG
    BDC, INC., as Lender
	 	 	 
	 	By: 	/s/
    Mark Tamburello
	 	Name:  	
    Mark Tamburello
	 	Title: 	Principal

 

[Signature Page
to Amendment No. 6 to Credit Agreement]Exhibit 10.20

 

 

LOAN AND SECURITY AGREEMENT

 

 

Dated as of JULY 11, 2019

 

 

by and among

 

 

HYDROFARM,
LLC

SUNBLASTER LLC

SUNBLASTER HOLDINGS ULC

HYDROFARM CANADA, LLC

EDDI’S WHOLESALE GARDEN
SUPPLIES LTD.,

 

as Borrowers,

 

EHH HOLDINGS,
LLC

HYDROFARM HOLDINGS LLC,

as Loan Party Obligors,

 

 

the Lenders from time to
time party hereto,

 

and

 

 

ENCINA BUSINESS CREDIT, LLC,

as Agent

 

 

     

     

    

 

TABLE OF CONTENTS

 

Page

 

	1.	DEFINITIONS.	1
	 	 	 	 
	 	1.1.	Certain Defined Terms	1
	 	1.2.	Accounting Terms and Determinations	27
	 	1.3.	Other Definitional Provisions and References	 28
	 	 	 	 
	2.	LOANS	 29
	 	 	 	 
	 	2.1.	Amount of Loans	 29
	 	2.2.	Protective Advances; Overadvances	 29
	 	2.3.	Notice of Borrowing; Manner of Revolving Loan Borrowing  	30
	 	2.4.	Swingline Loans	 31
	 	2.5.	Repayments	 32
	 	2.6.	Prepayments / Voluntary Termination / Application of Prepayments  	32
	 	2.7.	Obligations Unconditional	 32
	 	2.8.	Reversal of Payments	 33
	 	2.9.	Notes	 34
	 	2.10.	Defaulting Lenders	 34
	 	2.11.	Appointment of Borrower Representative.	 34
	 	2.12.	Joint and Several Liability	 35
	 	 	 	 
	3.	INTEREST AND FEES; LOAN ACCOUNT	 37
	 	 	 	 
	 	3.1.	Interest	 37
	 	3.2.	Fees	 38
	 	3.3.	Computation of Interest and Fees	 38
	 	3.4.	Loan Account; Monthly Accountings	 39
	 	3.5.	Further Obligations; Maximum Lawful Rate	 39
	 	3.6.	Certain Provisions Regarding LIBOR Loans; Replacement of Lenders	39
	 	 	 	 
	4.	CONDITIONS PRECEDENT	 40
	 	 	 	 
	 	4.1.	Conditions to Initial Loans	 40
	 	4.2.	Conditions to all Loans	 41
	 	 	 	 
	5.	COLLATERAL	 42
	 	 	 	 
	 	5.1.	Grant of Security Interest	 42
	 	5.2.	Possessory Collateral	 42
	 	5.3.	Further Assurances	 43
	 	5.4.	UCC Financing Statements	 43
	 	5.5.	Excluded Property	 43
	 	 	 	 
	6.	CERTAIN PROVISIONS REGARDING ACCOUNTS, INVENTORY, COLLECTIONS AND APPLICATIONS OF PAYMENTS	 43
	 	 	 	 
	 	6.1.	Lock Boxes and Blocked Accounts	 43
	 	6.2.	Application of Payments	 44
	 	6.3.	Notification; Verification	 45
	 	6.4.	Power of Attorney	 45
	 	6.5.	Disputes	 46
	 	6.6.	Invoices	 46
	 	6.7.	Inventory	 47

 

    	 	i	 

     

    

 

	7.	REPRESENTATIONS, WARRANTIES AND AFFIRMATIVE COVENANTS	47
	 	 	 	 
	 	7.1.	Existence and Authority	 47
	 	7.2.	Names; Trade Names and Styles	 48
	 	7.3.	Title to Collateral; Third Party Locations; Permitted Liens  	48
	 	7.4.	Accounts and Chattel Paper	 49
	 	7.5.	Electronic Chattel Paper	 49
	 	7.6.	Capitalization; Investment Property	 49
	 	7.7.	Commercial Tort Claims	 50
	 	7.8.	Jurisdiction of Organization; Location of Collateral	51
	 	7.9.	Financial Statements and Reports; Solvency	 51
	 	7.10.	Tax Returns and Payments; Pension Contributions	 52
	 	7.11.	Compliance with Laws; Intellectual
Property; Licenses 	52
	 	7.12.	Litigation	 53
	 	7.13.	Use of Proceeds	 53
	 	7.14.	Insurance	 53
	 	7.15.	Financial, Collateral and Other Reporting / Notices	 54
	 	7.16.	Litigation Cooperation	 56
	 	7.17.	Maintenance of Collateral, Etc.	 56
	 	7.18.	Material Contracts	 56
	 	7.19.	No Default	 57
	 	7.20.	No Material Adverse Change	 57
	 	7.21.	Full Disclosure	 57
	 	7.22.	Sensitive Payments	 57
	 	7.23.	Holdings.	 57
	 	7.24.	Term Loan Facility	 58
	 	7.25.	Subordinated Debt; HHG Note	 58
	 	7.26.	Access to Collateral, Books and Records	 59
	 	7.27.	Appraisals	 59
	 	7.28.	Lender Meetings	 59
	 	7.29.	Interrelated Businesses	 60
	 	7.30.	Canadian Benefit Plans	 60
	 	7.31.	Canadian Pension Plans	 60
	 	7.32.	Post-Closing Matters	 60
	 	 	 	 
	8.	NEGATIVE COVENANTS	 61
	 	 	 	 
	9.	FINANCIAL COVENANTS	 64
	 	 	 	 
	 	9.1.	Fixed Charge Coverage Ratio/ Minimum Excess Availability	64
	 	9.2.	Capital Expenditure Limitation	 64
	 	 	 	 
	10.	RELEASE, LIMITATION OF LIABILITY AND INDEMNITY	64
	 	 	 	 
	 	10.1.	Release	 64
	 	10.2.	Limitation of Liability	65
	 	10.3.	Indemnity	 65
	 	 	 	 
	11.	EVENTS OF DEFAULT AND REMEDIES	 65
	 	 	 	 
	 	11.1.	Events of Default	 65
	 	11.2.	Remedies with Respect to Lending Commitments/Acceleration, Etc.	68
	 	11.3.	Remedies with Respect to Collateral	 69

 

    	 	ii	 

     

    

 

	12.	LOAN GUARANTY	 74
	 	 	 	 
	 	12.1.	Guaranty	 74
	 	12.2.	Guaranty of Payment	 75
	 	12.3.	No Discharge or Diminishment of Loan Guaranty	 75
	 	12.4.	Defenses Waived	 75
	 	12.5.	Rights of Subrogation	 76
	 	12.6.	Reinstatement; Stay of Acceleration	 76
	 	12.7.	Information	 76
	 	12.8.	Termination	 76
	 	12.9.	Maximum Liability	 77
	 	12.10. 	Contribution	77
	 	12.11. 	Liability Cumulative	77
	 	 	 	 
	13.	PAYMENTS FREE OF TAXES; OBLIGATION TO WITHHOLD; PAYMENTS ON ACCOUNT OF TAXES	 78
	 	 	 	 
	14.	AGENT	 80
	 	 	 	 
	 	14.1.	Appointment	 80
	 	14.2.	Rights as a Lender	 81
	 	14.3.	Duties and Obligations	 81
	 	14.4.	Reliance	 81
	 	14.5.	Actions through Sub-Agents	 82
	 	14.6.	Resignation	 82
	 	14.7.	Non-Reliance	 83
	 	14.8.	Not Partners or Co-Venturers; Agent as Representative of the Secured Parties	84
	 	14.9.	Credit Bidding	 85
	 	14.10.	Certain Collateral Matters	 85
	 	14.11.	Restriction on Actions by Lenders	 85
	 	14.12.	Expenses	 86
	 	14.13.	Notice of Default or Event of Default	 86
	 	14.14.	Liability of Agent	 86
	 	 	 	 
	15.	GENERAL PROVISIONS	 87
	 	 	 	 
	 	15.1.	Notices.	 87
	 	15.2.	Severability	 88
	 	15.3.	Integration	 88
	 	15.4.	Waivers	 88
	 	15.5.	Amendments	 89
	 	15.6.	Time of Essence	 89
	 	15.7.	Expenses, Fee and Costs Reimbursement	 90
	 	15.8.	Benefit of Agreement; Assignability	 90
	 	15.9.	Assignments	 91
	 	15.10.	Participations	 92
	 	15.11.	Headings; Construction	 92
	 	15.12.	USA PATRIOT Act Notification	 92
	 	15.13.	Counterparts; Fax/Email Signatures	 92
	 	15.14.	GOVERNING LAW	 92
	 	15.15.	CONSENT TO JURISDICTION; WAIVER OF JURY TRIAL; CONSENT TO SERVICE OF PROCESS	 93
	 	15.16.	Publication	 93
	 	15.17.	Confidentiality	 94
	 	15.18.	INTERCREDITOR AGREEMENT	 94

 

    	 	iii	 

     

    

 

Perfection Certificate

	Annex I	Description of Certain Terms
	Annex II	Reporting
	Annex III	Commitment Schedule
	Annex IV	Pricing Grid
	Annex V	Disqualified Institutions 
	Exhibit A	Form of Notice of Borrowing 
	Exhibit B	Closing Checklist
	Exhibit C	Client User Form
	Exhibit D	Authorized Accounts Form
	Exhibit E	Form of Account Debtor Notification
	Exhibit F	Form of Compliance Certificate
	Exhibit G	Form of Assignment and Assumption Agreement
	Schedule 7.32	Post-Closing Matters

 

    	 	iv	 

     

    

 

Loan and Security Agreement

 

This Loan
and Security Agreement (as it may be amended, restated or otherwise modified from time to time, this "Agreement")
is entered into on July 11, 2019, by and among HYDROFARM, LLC, a California limited liability company, SUNBLASTER LLC, a
Delaware limited liability company, SUNBLASTER HOLDINGS ULC, a British Columbia unlimited liability company, and EDDI’S WHOLESALE
GARDEN SUPPLIES LTD., a British Columbia company and HYDROFARM CANADA, LLC, a Delaware limited liability company (each a "Borrower"
and collectively the "Borrowers"), and HYDROFARM HOLDINGS LLC, a Delaware limited liability company (“Holdings”),
and EHH HOLDINGS, LLC a Delaware limited liability company (“EHH”), as Loan Party Obligors (as
defined herein), the Lenders party hereto from time to time and ENCINA BUSINESS CREDIT, LLC, a Delaware limited liability company,
as agent for the Lenders (in such capacity, "Agent"). The Schedules and Exhibits to this Agreement are
an integral part of this Agreement and are incorporated herein by reference.

 

1.       DEFINITIONS.

 

1.1. Certain Defined Terms.

 

Unless otherwise
defined herein, the following terms are used herein as defined in the UCC or, in the case of the Canadian Obligors, the PPSA, as
applicable: Accounts, Account Debtor, As- Extracted Collateral, Certificated Security, Chattel Paper, Commercial Tort Claims, Consumer
Goods, Debtor, Deposit Accounts, Documents, Documents of Title, Electronic Chattel Paper, Equipment, Farm Products, Financing Statement,
Fixtures, General Intangibles, Goods, Health- Care-Insurance Receivables, Instruments, Intangible, Inventory, Letter-of-Credit
Rights, Money, Payment Intangible, Proceeds, Secured Party, Securities Accounts, Security Agreement, Supporting Obligations and
Tangible Chattel Paper.

 

As used in this Agreement, the following terms have the following
meanings:

 

“ABL Priority Collateral”
means (a) as defined in the Intercreditor Agreement (it being understood and agreed that any time the Term Loan Facility is not
in effect, the term “ABL Priority Collateral” shall mean all Collateral) and (b) the Collateral of any Canadian Obligors
on which a Lien is granted to Agent hereunder or under any loan document.

 

"ABLSoft"
means the electronic and/or internet-based system approved by Agent for the purpose of making notices, requests, deliveries, communications
and for the other purposes contemplated in this Agreement or otherwise approved by Agent, whether such system is owned, operated
or hosted by Agent, any of its Affiliates or any other Person.

 

"Accounts Advance Rate" means the percentage
set forth in Section 1(b)(i) of Annex I.

 

"Advance Rates"  means, collectively,
the Accounts Advance Rate and the Inventory Advance Rate.

 

"Affiliate"
means, with respect to any Person, any other Person in control of, controlled by, or under common control with the first Person,
and any other Person who has a substantial interest, direct or indirect, in the first Person or any of its Affiliates, including,
any officer or director of the first Person or any of its Affiliates (and if that Person is an individual, any member of the immediate
family (including parents, siblings, spouse, children, stepchildren, nephews, nieces and grandchildren) of such individual and
any trust whose principal beneficiary is such individual or one or more
members of such immediate family and any Person who is controlled by any such member or trust); provided, that neither
Agent, any Lender nor any of their respective Affiliates shall be deemed an "Affiliate" of Borrower for
any purposes of this Agreement. For the purpose of this definition, a "substantial interest" shall mean
the direct or indirect legal or beneficial ownership of more than ten (10%) percent of any class of equity or similar interest.

 

    	 	1	 

     

    

 

""Agent"
means Encina in its capacity as agent for the Lenders hereunder, and any successor agent.

 

"Agent-Related
Persons" means Agent, together with its Affiliates, officers, directors, employees, members, managers, attorneys,
and agents.

 

"Agent
Professionals" means attorneys, accountants, appraisers, auditors, business valuation experts, liquidation agents,
collection agencies, auctioneers, environmental engineers or consultants, turnaround consultants, and other professionals and experts
retained by Agent.

 

"Agreement"
and "this Agreement" has the meaning set forth in the preamble to this Agreement.

 

“Applicable Margin” has the meaning
set forth in Annex IV.

 

"Approved
Electronic Communication" means each notice, demand, communication, information, document and other material transmitted,
posted or otherwise made or communicated by e-mail, facsimile, ABLSoft or any other equivalent electronic service, whether owned,
operated or hosted by Agent, any of its Affiliates or any other Person, that any party is obligated to, or otherwise chooses to,
provide to Agent pursuant to this Agreement or any other Loan Document, including any financial statement, financial and other
report, notice, request, certificate and other information or material; provided, that Approved Electronic Communications
shall not include any notice, demand, communication, information, document or other material that Agent specifically instructs
a Person to deliver in physical form.

 

"Approved
Fund" means any Bona Fide Debt Fund and any other Person (other than a natural person) that is (or will be) engaged
in making, purchasing, holding or otherwise investing in commercial loans and similar extensions of credit in the ordinary course
of business, in each case that is administered, managed, advised or underwritten by (a) a Lender, (b) an Affiliate of a Lender
or (c) an entity or an Affiliate of an entity that administers or manages a Lender.

 

"Assignment
of Claims Act", means the Assignment of Claims Act of 1940, as amended, currently codified at 31 U.S.C. 3727 and 41
U.S.C. 6305, and includes the prior historically referenced Federal Anti-Claims Act (31 U.S.C. 3727) and the Federal Anti-Assignment
Act (41 U.S.C. 6305).

 

"Assignee" has the meaning set forth
in Section 15.9(a).

 

"Assignment
and Assumption" means an assignment and assumption agreement substantially in the form of Exhibit G.

 

“Asset
Disposition” means a sale, lease, license, consignment, transfer, return, liquidation, or other disposition of Property
of an Obligor, including any disposition in connection with a sale-leaseback transaction or synthetic lease.

 

    	 	2	 

     

    

 

“Asset
Acquisition” means the acquisition by GSD of substantially all of the assets of Greenstar Plant Products Inc.’s
distribution business for a purchase price of $8,873,926 pursuant to and in accordance with the Asset Purchase Agreement.

 

“Asset
Acquisition Earnout Amount” means the amount of the Earnout Obligations which are paid by a Loan Party or any Subsidiary
of a Loan Party; provided that commencing on the first day of the month following the first full month after the payment of such
Earnout Obligations and on the first day of each month thereafter, such amount shall be reduced by

1/12th of the amount paid until reduced to $0.

 

“Asset
Acquisition Earnout Obligations” means any obligation of any Subsidiary of Holdings to pay a deferred purchase price
with respect to the Asset Acquisition pursuant to Section 2.6 of the Asset Purchase Agreement (as in effect on the Amendment No.
2 Effective Date).

 

“Asset Purchase Agreement” means
the asset purchase agreement dated October 20, 2017 among Greenstar Plant Products Inc., as vendor, GSD, as purchaser, and
Hydrofarm, as guarantor.

 

“Availability
Block” means the amount set forth in Section 1(f) of Annex I hereto, and after the Availability Block Release Date,
zero dollars ($0).

 

“Availability
Block Release Date” means the date, if it ever occurs, following the delivery of the audited financial statements
for Fiscal Year 2019 by Borrower Representative to Agent in compliance with Section 7.15(a) hereof (the “2019 Audited
Financials”), that either (a) the 2019 Audited Financials or (b) any interim financial statements subsequently delivered
by Borrower Representative to Agent in compliance with Section 7.15(b) hereof, show that the Fixed Charge Coverage Ratio is in
excess of 1.05:1.00 for the applicable FCCR Measurement Period.

 

"Bankruptcy Code" means the United States
Bankruptcy Code (11 U.S.C. § 101 et seq.).

 

"Base Rate" means, for any day,
the greatest of (a) the Federal Funds Rate plus 1⁄2%, (b) the LIBOR Rate (which rate shall be calculated based upon a
one (1) month period and shall be determined on a daily basis), (c) one percent (1.0%), and (d) the rate of interest
announced, from time to time, within Wells Fargo Bank, N.A. at its principal office in San Francisco as its "prime
rate", with the understanding that the "prime rate" is one of Wells Fargo Bank, N.A.’s base rates (not
necessarily the lowest of such rates) and serves as the basis upon which effective rates of interest are calculated for those
loans making reference thereto and is evidenced by the recording thereof after its announcement in such internal publications
as Wells Fargo Bank, N.A. may designate (or, if such rate ceases to be so published, as quoted from such other generally
available and recognizable source as Agent may select).

 

"Base Rate Loan" means any Loan which
bears interest at or by reference to the Base Rate.

 

"Blocked Account" has the meaning set
forth in Section 6.1.

 

“Bona
Fide Debt Fund” means any debt fund affiliate of the entities mentioned in the definition of "Disqualified Institution"
that is primarily engaged in, or advises funds or other investment vehicles that are primarily engaged in, making, purchasing,
holding or otherwise investing in commercial loans, notes, bonds and similar extensions of credit or securities in the ordinary
course of its business and whose managers are not in control of with the equity investment decisions of such entities.

 

    	 	3	 

     

    

 

"Borrower" and "Borrowers"
has the meaning set forth in the preamble to this Agreement.

 

“Borrower
Representative” means Hydrofarm, in such capacity pursuant to the provisions of Section 2.9, or any permitted successor
Borrower Representative selected by Borrowers and approved by Lender.

 

"Borrowing
Base" means, as of any date of determination, the Dollar Equivalent Amount as of such date of determination of (a)
the aggregate amount of Eligible Accounts multiplied by the Accounts Advance Rate, plus (b) the lower of (i) cost or market
value of Eligible Inventory multiplied by the applicable Inventory Advanced Rate(s) and (ii) NOLV of Eligible Inventory multiplied
by the applicable Inventory Advance Rate(s), but in no event to exceed the Inventory Sublimit(s) and minus (c) all Reserves
which Agent has established pursuant to Section

2.1(b) (including those to be established in connection with
any requested Revolving Loan); minus

(d) the Availability Block.

 

“Borrowing
Base Certificate” a report of the Borrowing Base, in a form and substance satisfactory to Agent in its Permitted
Discretion.

 

"Business
Day" means a day other than a Saturday or Sunday or any other day on which Agent or banks in New York are authorized
to close and: (a) in the case of a Business Day which relates to a LIBOR Loan, any day on which dealings are carried on in the
London Interbank Eurodollar market, and (b) in the case of delivery of a Loan to a Funding Account located in a jurisdiction other
than the United States, the term “Business Day” shall also exclude any day on which commercial banks in such jurisdiction
are authorized or required by law to remain closed.

 

“Canadian Account” means any account
invoiced and payable in Canadian Dollars

 

"Canadian
Benefit Plans" means all material employee benefit plans or arrangements subject to the application of any Canadian
benefit plan statutes or regulations that are maintained or contributed to by the Loan Parties that are not Canadian Pension Plans,
including all profit sharing, savings, supplemental retirement, retiring allowance, severance, pension, deferred compensation,
welfare, bonus, incentive compensation, phantom stock, legal services, supplementary unemployment benefit plans or arrangements
and all life, health, dental and disability plans and arrangements in which the employees or former employees of the Loan Parties
participate or are eligible to participate but excluding all stock option or stock purchase plans.

 

“Canadian
Borrowers” means Sunblaster Holdings ULC, a British Columbia unlimited liability company, and Eddi’s Wholesale
Garden Supplies Ltd., a British Columbia company.

 

“Canadian
Defined Benefit Pension Plan” means a Canadian Pension Plan which contains a “defined benefit provision”
as defined in subsection 147.1(1) of the Income Tax Act (Canada), as amended.

 

"Canadian Dollars" or "C$"
means Canadian Dollars.

 

“Canadian Loan Limit” means $15,000,000.

 

“Canadian
Multi-Employer Plan” means a “multi-employer pension plan”, as such term is defined in the Pension Benefits
Standards Act (British Columbia), as amended, or any similar plan registered under pension standards legislation of another jurisdiction
in Canada to which the Borrowers, including a Canadian Borrower,
contributes for its employees or former employees employed in Canada.

 

    	 	4	 

     

    

 

"Canadian
Obligor(s)" means any Borrower or Loan Party Obligor organized under the laws of Canada or any province thereof.

 

"Canadian
Pension Plan" means all plans or arrangements which are considered to be pension plans under, and are subject to the
application of, any applicable pension benefits standards statute or regulation in Canada established, maintained or contributed
to by the Loan Parties for its employees or former employees.

 

"Canadian
Security Agreement" means that certain General Security Agreement, dated as of the Closing Date, between Agent and
the Canadian Borrowers.

 

"Capital
Expenditures" means all expenditures which, in accordance with GAAP, would be required to be capitalized and shown
on the consolidated balance sheet of Borrowers, but excluding expenditures made in connection with the acquisition, replacement,
substitution or restoration of assets to the extent financed (a) from insurance proceeds (or other similar recoveries) paid on
account of the loss of or damage to the assets being replaced or restored, (b) with cash awards of compensation arising from the
taking by eminent domain or condemnation of the assets being replaced, (c) the net cash proceeds received by Borrowers in cash
or cash equivalents from a Permitted Asset Disposition, and (d) the cumulative amount of net cash proceeds from the issuance of
equity interests by Ultimate Parent.

 

"Capitalized
Lease" means any lease which is or should be capitalized on the balance sheet of the lessee thereunder in accordance
with GAAP.

 

"Closing Date" means July 11, 2019.

 

"Code" means the Internal Revenue Code
of 1986, as amended.

 

"Collateral"
means all property and interests in property in or upon which a security interest, mortgage, pledge or other Lien is granted
pursuant to this Agreement or the other Loan Documents, including all of the property of each Loan Party Obligor described in Section
5.1.

 

"Collections" has the meaning set forth
in Section 6.1.

 

"Commitment"
and "Commitments" means, individually or collectively as required by the context, the Revolving Loan Commitment.

 

"Commitment Schedule" means the Commitment
Schedule attached hereto as Annex III.

 

"Compliance
Certificate" means a compliance certificate substantially in the form of Exhibit F hereto to be signed by the Chief
Financial Officer or President of Borrower Representative.

 

"Confidential
Information" means confidential information that any Loan Party furnishes to the Agent pursuant to any Loan Document
concerning any Loan Party's business, but does not include any such information once such information has become, or if such information
is, generally available to the public or available to the Agent (or other applicable Person) from a source other than the Loan
Parties which is not, to the Agent's knowledge, bound by any confidentiality agreement in respect thereof.

 

    	 	5	 

     

    

 

“Consolidated
Amortization Expense” means the amount of amortization expense deducted in determining Net Income.

 

“Consolidated
Depreciation Expense” means the amount of depreciation expense deducted in determining Net Income.

 

“Consolidated
Tax Expenses” means federal, state, provincial and local income tax expenses of Holdings, the Borrowers and their
Subsidiaries.

 

“Control
Agent” means, at the time of determination, whichever of the Term Loan Agent or Agent has the right under the Term
Loan Intercreditor Agreement to take remedial action with respect to the Collateral at issue.

 

“Control
Group” means (i) Hawthorn Equity Partners and its Controlled Investment Affiliates,
(ii) Broadband Capital Investments and its Controlled Investment Affiliates, (iii) Serruya Private Equity and its Controlled Investment
Affiliates, (iv) BCM X3 Holdings, LLC and its Controlled Investment Affiliates, (v) Aaron Serruya, Michael Serruya, Simon Serruya
and Jacques Serruya, individually and each such individual’s Controlled Investment Affiliates, (vi) Peter Wardenburg and
his Controlled Investment Affiliates and (vii) any shareholders of any of the individuals or entities in (i) through (vi) that
have designated their voting rights to such individual or entity.

 

“Controlled
Investment Affiliate” means, as to any Person, any other Person that (a) directly or indirectly, is in control of,
is controlled by, or is under common control with, such Person and (b) is organized by such Person primarily for the purpose of
making equity or debt investments in one or more companies. For purposes of this definition, “control” of a Person
means the power, directly or indirectly, to direct or cause the direction of the management and policies of such Person whether
by contract or otherwise.

 

"Default"
means any event or circumstance which with notice or passage of time, or both, would constitute an Event of Default.

 

"Default Rate" has the meaning set forth
in Section 3.1.

 

"Defaulting
Lender" means any Lender that (a) has failed, within one Business Day of the date required to be funded or paid, to
(i) fund any portion of its Loans or (ii) pay over to Agent or any other Lender any other amount required to be paid by it hereunder,
(b) has notified Borrower Representative or Agent in writing, or it or its parent has made a public statement, to the effect that
it does not intend or expect to comply with any of its funding obligations under this Agreement or generally under other agreements
in which it or its parent commits to extend credit, (c) has failed, within two Business Days after request by Agent, acting in
good faith, to provide a certification in writing from an authorized officer of such Lender that it will comply with its obligations
(and is financially able to meet such obligations) to fund prospective Loans under this Agreement, provided that such Lender shall
cease to be a Defaulting Lender pursuant to this clause (c) upon Agent's receipt of such certification in form and substance satisfactory
to Agent, (d) had an involuntary proceeding commenced or an involuntary petition filed seeking (i) liquidation, reorganization
or other relief in respect of such Lender or its parent or its or its parent’s debts, or of a substantial part of its or
its parent’s assets, under any federal, state or foreign bankruptcy, insolvency, receivership or similar Law now or hereafter
in effect or (ii) the appointment of a receiver, trustee, custodian, sequestrator, conservator or similar official for such Lender
or its parent or for a substantial part of its or its parent’s assets, or (e) shall have or whose parent shall have (i) voluntarily
commenced any proceeding or filed any petition seeking liquidation, reorganization or other relief
under any federal, state or foreign bankruptcy, insolvency, receivership or similar Law now or hereafter in effect (ii) consented
to the institution of, or failed to contest in a timely and appropriate manner, any proceeding or petition described in clause
(d) of this definition, (iii) applied for or consented to the appointment of a receiver, trustee, custodian, sequestrator, conservator
or similar official for it or a substantial part of its assets, (iv) filed an answer admitting the material allegations of a petition
filed against it in any such proceeding, (v) made a general assignment for the benefit of creditors or (vi) taken any action for
the purpose of effecting any of the foregoing.

 

    	 	6	 

     

    

 

"Dilution"
means, as of any date of determination, a percentage, based upon the experience of the immediately prior twelve (12) months, that
is the result of dividing the Dollar Equivalent Amount of (a) bad debt write-downs, discounts, advertising allowances, credits,
or other dilutive items with respect to a Borrower's Accounts during such period by (b)such Borrower's billings with respect to
Accounts during such period.

 

"Dilution Reserve" has the meaning set
forth in Section 1(b)(i) of Annex I.

 

“Disqualified
Institution” means (i) certain financial institutions and other entities set forth on Annex V hereto; (ii)
other financial institutions and other entities identified in writing by Borrower to Lender from time to time (and Affiliates of
such identified entities (other than Bona Fide Debt Funds) that are reasonably identifiable as Affiliates solely on the basis of
their name (provided Lender shall have no obligations to carry out due diligence in order to identify such Affiliates)) acceptable
to Lender in its sole discretion; and (iii) bona fide competitors of the Borrower and its Subsidiaries identified in writing from
time to time (and Affiliates thereof) (other than Bona Fide Debt Funds) that are reasonably identifiable as Affiliates solely on
the basis of their name (provided that Lender shall have no obligation to carry out due diligence in order to identify such Affiliates)).

 

“Distribution
Payment Conditions” means, as to the making of any payment or distribution of any dividends or other distributions
on any Loan Party Obligor’s stock or other equity interest (other than Permitted Tax Distributions), the satisfaction as
of the making of each such payment or distribution and after giving pro forma effect thereto, of each of the following conditions:
(a) No Default or Event of Default exists or has occurred and is continuing, (b) the Fixed Charge Coverage Ratio for the applicable
FCCR Measurement Period is greater than

1.25:1.0, and (c) Excess Availability is greater than $3,000,000.

 

“Division”
in reference to any Person which is an entity, means the division of such Person into two (2) or more separate such
Persons, with the dividing Person either continuing or terminating its existence as part of such division, including as contemplated
under Section 18-217 of the Delaware Limited Liability Act for limited liability companies formed under Delaware law, or any analogous
action taken pursuant to any other applicable law with respect to any corporation, limited liability company, partnership or other
entity. The word “Divide” when capitalized, shall have a correlative meaning.

 

"Dollar
Equivalent Amount" means, at any time, (a) as to any amount denominated in Dollars, the amount hereof at such time,
and (b) as to any amount denominated in a currency other than Dollars, the equivalent amount in Dollars as determined by Agent
at such time that such amount could be converted into Dollars by Agent according to prevailing exchange rates selected by Agent.

 

"Dollars" or "$"
means United States Dollars.

 

    	 	7	 

     

    

 

"E-Signature"
means the process of attaching to or logically associating with an Approved Electronic Communication an electronic symbol,
encryption, digital signature or process (including the name or an abbreviation of the name of the party transmitting the Approved
Electronic Communication) with the intent to sign, authenticate or accept such Approved Electronic Communication.

 

"Early Payment/Termination Premium"
has the meaning set forth in Section 3.2(e).

 

"EBITDA" means,
for any period for which the amount thereof is to be determined, an amount equal to Net Income for such measurement period:
plus (a) the following, without duplication, in each case to the extent deducted in calculating such Net Income: (i)
Consolidated Interest Expense during such period means, for the applicable period, for the Loan Party Obligors on a
consolidated basis, (ii) Consolidated Amortization Expense during such period (iii) Consolidated Depreciation Expense during
such period (iv) Consolidated Tax Expenses paid or accrued during such period and the amount of any Tax Distributions made in
cash during such period (v) any non-cash losses arising from the sale of capital assets during such period (vi) extraordinary
non-cash losses with respect to such period (other than with respect to the write-downs of accounts receivable or inventory),
(vii) to the extent actually reimbursed in cash from insurance proceeds, the amount of expenses for such period with respect
to any business interruption, (viii) non-recurring fees and expenses approved by Agent in its Permitted Discretion (ix) the
amount of business restructuring charges and fees, costs and expenses incurred between October 1, 2019 and December 31, 2019
approved by Agent in its Permitted Discretion, minus (b) to the extent added in calculating such Net Income, the aggregate
amount of: (i) any non-cash gains during such period arising from the sale of capital assets, (ii) any non-cash gains during
such period arising from the write-up of assets (other than with respect to accounts receivable or inventory), and (iii) any
non-cash extraordinary gains during such period.

 

"Eligible
Account" means, at any time of determination and subject to the criteria below, an Account of a Borrower, which was
generated and billed by a Borrower in the Ordinary Course of Business, and which Agent, in its Permitted Discretion, deems to be
an Eligible Account. The net amount of an Eligible Account at any time shall be the face amount of such Eligible Account as originally
billed minus all customer deposits, unapplied cash collections and other Proceeds of such Account received from or on behalf of
the Account Debtor thereunder as of such date and any and all returns, rebates, discounts (which may, at Agent's option, be calculated
on shortest terms), credits, allowances or excise taxes of any nature at any time issued, owing, claimed by Account Debtors, granted,
outstanding or payable in connection with such Accounts at such time. Without limiting the generality of the foregoing, the following
Accounts shall not be Eligible Accounts:

 

(i) the Account Debtor or any of its Affiliates is an Affiliate
of any Loan Party;

 

(ii) it remains
unpaid longer than the earlier to occur of (A) the number of days after the original invoice date set forth in Section
4(a) of Annex I or (B) the number of days after the original invoice due date set forth in Section 4(b) of Annex
I;

 

(iii) the Account
Debtor or its Affiliates are past any of the applicable dates referenced in clause (ii) above on other Accounts owing to a Borrower
comprising more than twenty-five (25%) percent of all of the Accounts owing to a Borrower by such Account Debtor or its Affiliates;

 

    	 	8	 

     

    

 

(iv) all Accounts
owing by the Account Debtor or its Affiliates represent more than ten percent (10%) of all otherwise Eligible Accounts; provided,
that such percentage for Amazon.com, Inc. shall be twenty-five percent (25%) of all otherwise Eligible US Accounts, and such percentage
for Nurseryland shall be twenty percent (20%) of all otherwise Eligible Canadian Accounts, in each case unless otherwise determined
by Agent in its Permitted Discretion; provided, further, that Accounts which are deemed to be ineligible solely by reason of this
clause (iv) shall be considered Eligible Accounts to the extent of the amount thereof which does not exceed the applicable percentages
of all otherwise Eligible Accounts;

 

(v) a covenant,
representation or warranty contained in this Agreement or any other Loan Document with respect to such Account (including any of
the representations set forth in Section 7.4) has been breached;

 

(vi) the Account
is subject to any contra relationship, counterclaim, dispute or set-off; provided, that Accounts which are deemed to be
ineligible by reason of this clause (vi) shall be considered ineligible only to the extent of such applicable contra relationship,
counterclaim, dispute or set-off;

 

(vii) the Account
Debtor's chief executive office or principal place of business is located outside of the United States or Canada;

(viii) it
is payable in a currency other than Dollars or Canadian Dollars; (ix) it (a) is not absolutely owing to a Borrower or (b)
arises from a sale on a bill-and-hold, guarantied sale, sale-or-return, sale-on-approval, consignment, retainage or any other
repurchase or return basis or (c) consist of progress billings or other advance billings that are due prior to the completion
of performance by a Borrower of the subject contract for goods or services;

 

(x) the Account
Debtor is (A) the United States of America or any state or political subdivision (or any department, agency or instrumentality
thereof), unless such Borrower has complied with the Assignment of Claims Act or other applicable similar state or local law in
a manner reasonably satisfactory to Agent, (B) Her Majesty the Queen in Right of Canada or any department, agency or instrumentality
thereof, unless such Borrower grants to the Agent by way of absolute assignment and as security, its right to payment of such Account
pursuant to and in full compliance with, and all other steps deemed necessary by the Agent have been taken under, the Financial
Administration Act (Canada), as amended, or (C) a Crown corporation, any other government or other governmental body if such Account
cannot be the object of a valid first ranking Lien in favor of the Agent without special formalities or requirements, unless such
formalities or requirements have been performed to the full satisfaction of the Agent;

 

(xi) it is
not at all times subject to Agent's duly perfected, first-priority security interest or is subject to any other Lien that is not
a Permitted Lien, or the goods giving rise to such Account were, at the time of sale, subject to any Lien that is not a Permitted
Liens;

 

(xii) it is
evidenced by Chattel Paper or an Instrument of any kind (unless such Chattel Paper or Instrument is delivered to Agent in accordance
with Section 5.2) or has been reduced to judgment;

 

(xiii) the
Account Debtor's total indebtedness to Borrowers exceeds the amount of any credit limit established by Borrowers or Agent or the
Account Debtor is otherwise deemed not to be creditworthy by Agent in its Permitted Discretion; provided, that Accounts
which are deemed to be ineligible solely by reason of this
clause (xiii) shall be considered Eligible Accounts to the extent the amount of such Accounts does not exceed the lower of
such credit limits;

 

    	 	9	 

     

    

 

(xiv) there
are facts or circumstances existing, or which could reasonably be anticipated to occur, which might result in an adverse change
in the Account Debtor's financial condition or impair or delay the collectability of all or any portion of such Account as determined
by Agent in its Permitted Discretion;

 

(xv) Agent
has not been furnished with all documents and other information pertaining to such Account which Agent has requested, or which
any Borrower is obligated to deliver to Agent, pursuant to this Agreement;

 

(xvi) Any Borrower
has made an agreement with the Account Debtor to extend the time of payment thereof beyond the time periods set forth in clause
(ii) above;

 

(xvii) Any
Borrower has posted a surety or other bond in respect of the contract or transaction under which such Account arose;

 

(xviii) the
Account Debtor is subject to any proceeding seeking liquidation, reorganization or other relief with respect to it or its debts
under any bankruptcy, insolvency or other similar applicable law;

 

(xix) the
sale giving rise to such Account is on cash in advance or cash on delivery terms;

 

(xx) the goods
giving rise to such Account have been sold by a Borrower to the Account Debtor outside such Borrower’s Ordinary Course of
Business or the services giving rise to such Account have been performed by Borrower outside such Borrower’s Ordinary Course
of Business;

 

(xxi) Accounts
with respect to which (i) the goods giving rise to such Account have not been shipped and billed to the Account Debtor, or (ii)
the services giving rise to such Account have not been performed and billed to the Account Debtor;

 

(xxii) the
Account Debtor on such Accounts is located in any jurisdiction which adopts a statute or other requirement that any Person that
obtains business from within such jurisdiction or is otherwise subject to such jurisdiction’s tax law must file a “Business
Activity Report” (or other applicable report) or make any required filings in a timely manner in order to enforce its claims
in such jurisdiction’s courts or arising under such jurisdiction’s laws; provided, however, that such Accounts shall
nonetheless be Eligible Accounts if such Borrower has filed a “Business Activity Report” (or other applicable report
or required filing); or

 

(xxiii) Accounts
arising from a sale for personal, family or household purposes or defined as Consumer Goods.

 

"Eligible
Inventory" means, at any time of determination and subject to the criteria below, Inventory owned by Borrower consisting
of finished goods, merchantable and readily saleable in the Borrower’s Ordinary Course of Business which Agent, in its Permitted
Discretion, deems to be Eligible Inventory. Without limiting the generality of the foregoing, the following Inventory will not
be Eligible Inventory:

 

(xxiv) it consists of work-in-progress;

 

    	 	10	 

     

    

 

(xxv) it is not in good, new and saleable condition;

 

(xxvi) it is
slow-moving, obsolete, damaged, contaminated, unmerchantable, returned, rejected, discontinued or repossessed;

 

(xxvii) it
is in the possession of a processor, consignee or bailee, or located on premises leased or subleased to a Borrower, or on premises
subject to a mortgage in favor of a Person other than Agent, unless such processor, consignee, bailee or mortgagee or the lessor
or sublessor of such premises, as the case may be, has executed and delivered all documentation which Agent shall require to evidence
the subordination or other limitation or extinguishment of such Person's rights with respect to such Inventory and Agent's right
to gain access thereto; provided, that, at the election of Agent in its sole discretion, this clause (iv) may be
waived by Agent in its sole discretion;

 

(xxviii) it consists of fabricated parts, consigned items,
supplies or packaging;

 

(xxix) it fails to meet all standards imposed by any
Governmental Authority;

 

(xxx) it does
not conform in all respects to any covenants, warranties and representations set forth in this Agreement and each other Loan Document;

 

(xxxi) it
is not at all times subject to Agent's duly perfected, first priority security interest and no other Lien except a Permitted Lien;

 

(xxxii) it
is purchased or manufactured pursuant to a license agreement that is not assignable to each of Agent and its transferees;

 

(xxxiii) it
is situated at a Collateral location not listed in Section 1(c) of the Perfection Certificate or other location of which Agent
has been notified as required by Section 7.8 (or it is in-transit other than in transit between a Borrower’s facilities or
is at a location described in Section 6.7(b)(iv) and (v));

 

(xxxiv) it is located at any third-party site if the
aggregate book value of all Inventory located at such site is less than $100,000 or if it is at a location described in
Section 6.7(b)(iv) and (v);

 

(xxxv) it is located outside of the continental United States
or Canada; and

 

(xxxvi) it is aged over (a) 24 months for inventory of Hydrofarm,
LLC (b) 12 months for inventory of Hydrofarm Canada, LLC or (b) 12 months for inventory of Sunblaster Holdings ULC.

 

"Encina"  means Encina Business Credit,
LLC, a Delaware limited liability company.

 

"Enforcement
Action" means any action to enforce any Obligations or Loan Documents or to exercise any rights or remedies relating
to any Collateral, whether by judicial action, selfhelp, notification of Account Debtors, setoff or recoupment, credit bid, deed
in lieu of foreclosure, action in any proceeding seeking liquidation, reorganization or other relief with respect to it or its
debts under any bankruptcy, insolvency or other similar applicable law or otherwise.

 

    	 	11	 

     

    

 

"ERISA"
means the Employee Retirement Income Security Act of 1974 and all rules, regulations and orders promulgated thereunder.

 

"ERISA
Affiliate" means any trade or business (whether or not incorporated) under common control with a Loan Party within
the meaning of Section 414(b) or (c) of the Code (and Sections 414(m) and (o) of the Code for purposes of provisions relating to
Section 412 of the Code and Section 302 of ERISA).

 

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

 

"Event of Default" has the meaning set
forth in Section 11.1.

 

"Excess
Availability" means the amount, as determined by Agent, calculated at any date, equal to the(a) the lesser of (i)
the Maximum Revolving Facility Amount minus (A) Reserves, minus (B) the Availability Block and (ii) the Borrowing
Base, minus (b) the sum of (i) the outstanding balance of all Revolving Loans plus (ii) fees and expenses which are
due and payable by any Borrower under this Agreement but which have not been paid or charged to the Loan Account; provided,
that if any of the Loan Limits for Revolving Loans is exceeded as of the date of calculation, then Excess Availability shall be
zero.

 

“Excluded
Property” means (i) any Restricted Account; (ii) any equipment or goods that is subject to a “purchase
money security interest” to the extent that such purchase money security interest (x) constitutes a Permitted Lien
under this Agreement and (y) prohibits the creation by an Obligor of a junior security interest therein, unless the holder
thereof has consented to the creation of such a junior security interest; (iii) any equity interest in any Foreign Subsidiary
(x) that is not a first-tier Subsidiary of an Obligor, (y) that the granting of a Lien thereon is prohibited by the laws of
the jurisdiction of organization of such Foreign Subsidiary or (z) to the extent the same represents, for all Obligors in the
aggregate, more than 65% of the total combined voting power of all classes of capital stock or similar equity interests of
such Foreign Subsidiary which are entitled to vote; (iv) any general intangible, instrument, software, license, permit,
lease, contract, governmental approval or franchise (but not the proceeds thereof), if the grant of a Lien in such general
intangible, instrument, software, license, permit, lease, contract, governmental approval or franchise in the manner
contemplated by the Loan Documents is prohibited by the terms of such general intangible, instrument, software, license,
permit, lease, contract, governmental approval or franchise and would result in the termination of such general intangible,
instrument, software, license, permit, lease, contract, governmental approval or franchise, but only to the extent that any
such prohibition is not rendered ineffective pursuant to the Uniform Commercial Code, the PPSA or any other Applicable Law or
principles of equity; (v) upon the written consent of Agent, any equity interests in any pledged entity acquired on or after the Closing
Date that is not a Subsidiary of an Obligor, if the terms of the Governing Documents of such pledged entity do not permit the
grant of a security interest in such equity interests by the owner thereof or the applicable Obligor has been unable to
obtain any approval or consent to the creation of a security interest therein which is required under such Governing
Documents, (vi) any property or asset to the extent the burden of perfection would exceed the benefit to the Lenders as
determined in writing by Agent in its Permitted Discretion (including without limitation the annotation of vehicle and other
titles to reflect the Liens granted by the Loan Documents) provided, however, the foregoing exclusions shall in no way be
construed (a) to apply if any such prohibition would be rendered ineffective under the UCC (including Sections 9-406, 9- 407
and 9-408 thereof), the PPSA or other Applicable Law (including the Bankruptcy Code) or principles of equity, (b) so as to
limit, impair or otherwise affect Agent’s unconditional continuing Liens upon any rights or interests of any Obligor in
or to the proceeds thereof (including proceeds from the sale, license, lease or other disposition thereof), including monies
due or to become due under any such lease, license, contract, or agreement (including any Accounts), or (c) to apply at such
time as the condition causing such prohibition shall be remedied (including pursuant to a waiver thereof or a consent related
thereto) and, to the extent severable, “Collateral” shall include any portion of such lease, license, contract,
agreement or assets subject thereto that does not result in such prohibition.

 

    	 	12	 

     

    

 

"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, imposed as a result of such Recipient being organized under the laws of, or having its principal office
or, in the case of Agent or any Lender, its Lending Office located in, the jurisdiction imposing such Tax (or any political subdivision
thereof); (b) in the case of a Non-U.S. Recipient (as defined in Section 13(e)), U.S. federal withholding Taxes imposed on amounts
payable to or for the account of such Non-U.S. Recipient with respect to an applicable interest in a Loan or Commitment pursuant
to a law in effect on the date on which Non-U.S. Recipient becomes a party to this Agreement or acquires a participation, except
in each case to the extent that, pursuant to Section 13 amounts with respect to such Taxes were payable to such Non-U.S. Recipient
assignor (or Lender granting such participation) immediately before such assignment or grant of participation; (c) United States
federal withholding Taxes that would not have been imposed but for such Recipient's failure to comply with Section 13(e) (except
where the failure to comply with Section 13(e) was the result of a change in law, ruling, regulation, treaty, directive, or interpretation
thereof by a Governmental Authority after the date the Recipient became a party to this Agreement or a Participant) and (d) any
U.S. federal withholding Taxes imposed pursuant to FATCA.

 

“Existing ABL
Agreement” means that certain Amended and Restated Loan Agreement dated as of November 8, 2017 by and among the
Bank of America, NA (the “Prior ABL Lender”) and the Loan Party Obligors, as amended by that
certain Forbearance Agreement and First Amendment to Amended and Restated Loan and Security Agreement dated as of May 18,
2018 (the “ABL Forbearance Agreement”), that certain First Amendment to Forbearance Agreement and
Second Amendment to Amended and Restated Loan and Security Agreement dated as of July 16, 2018 (the “ABL Second
Amendment”), that certain Waiver and Third Amendment to Amended and Restated Loan and Security Agreement dated as of
August 24, 2018 (the “ABL Third Amendment”) and that certain Fourth Amendment to Amended and
Restated Loan Agreement dated as of March 15, 2019 (the “ABL Fourth Amendment”).

 

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

 

    	 	13	 

     

    

 

“FCCR Measurement Period” means the
applicable time period set forth below for such date:

 

	Date	Period
	December 31, 2019	Three-month period ended on that date
	January 31, 2020	Four-month period ended on that date
	February 29, 2020	Five-month period ended on that date
	March 31, 2020	Six-month period ended on that date
	April 30, 2020	Seven-month period ended on that date
	May 31, 2020	Eight-month period ended on that date
	June 30, 2020	Nine-month period ended on that date
	July 31, 2020	Ten-month period ended on that date
	August 31, 2020	Eleven-month period ended on that date
	Last day of each month thereafter	Twelve-month period ended on that date

 

"FIRREA" means the Financial Institutions
Reform, Recovery and Enforcement Act of 1989, as amended.

 

"Fiscal Year" means the fiscal year
of Borrowers which ends on December 31 of each year.

 

"Fixed
Charge Coverage Ratio" means the ratio, determined in a manner acceptable to Agent in its Permitted Discretion, as
to any FCCR Measurement Period, of (a) EBITDA for such period, minus unfinanced Capital Expenditures of the Loan Party Obligors
on a consolidated basis for such period, to (b) Fixed Charges for such period.

 

"Fixed
Charges" means, for the period in question, on a consolidated basis, the sum of (a) all principal payments scheduled
or required to be made during or with respect to such period in respect of Indebtedness of the Loan Party Obligors, plus
(b) all Interest Expense of the Loan Party Obligors for such period paid or required to be paid in cash attributable to such period,
plus (c) all taxes of the Loan Party Obligors paid or required to be paid for such period and plus (d) all cash distributions
(including Permitted Tax Distributions, if applicable), dividends, redemptions and other cash payments made or required to be made
during such period with respect to equity securities or subordinated debt issued by any Loan Party Obligors (other than payments
with respect to the HHG Note).

 

“Foreign
Plan” means any employee benefit plan or arrangement (a) maintained or contributed to by any Obligor or Subsidiary
that is not subject to the laws of the United States or Canada; or (b) mandated by a government other than the United States or
Canada for employees of any Obligor or Subsidiary.

 

"Foreign
Subsidiary" means a Subsidiary that is a “controlled foreign corporation” under Section 957 of the Code,
such that a guaranty by such Subsidiary of the Obligations or a Lien on the assets of such Subsidiary or a pledge of more than
65% of the voting equity of such Subsidiary, in each case to secure the Obligations, would result in material tax liability to
Borrowers.

 

"FRB" means the Board of Governors of
the Federal Reserve System or any successor thereto.

 

"Funding Account" has the meaning set
forth in Section 2.3(b).

 

    	 	14	 

     

    

 

"GAAP"
means generally accepted accounting principles set forth from time to time in the opinions and pronouncements of the Accounting
Principles Board and the American Institute of Certified Public Accountants and statements and pronouncements of the Financial
Accounting Standards Board (or agencies with similar functions of comparable stature and authority within the United States accounting
profession) which are applicable to the circumstances as of the date of determination, in each case consistently applied.

 

"Governing
Documents" means, with respect to any Person, the certificate of incorporation, articles of incorporation, certificate
of formation, certificate of limited partnership, by-laws, operating agreement, limited liability company agreement, limited partnership
agreement or other similar governance document of such Person.

 

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

 

"Guaranty"
or "Guarantied", as applied to any Indebtedness, liability or other obligation, means (a) a guaranty, directly
or indirectly, in any manner, including by way of endorsement (other than endorsements of negotiable instruments for collection
in the Ordinary Course of Business), of any part or all of such Indebtedness, liability or obligation and (b) an agreement, contingent
or otherwise, and whether or not constituting a guaranty, assuring, or intended to assure, the payment or performance (or payment
of damages in the event of non- performance) of any part or all of such Indebtedness, liability or obligation by any means (including
the purchase of securities or obligations, the purchase or sale of property or services or the supplying of funds).

 

“HHG
Note” means the Subordinated Unsecured Promissory Note dated as of the date hereof issued by Holdings to Ultimate
Parent, as such HHG Note may be amended, restated and increased from time to time in accordance with this Agreement and the HHG
Subordination Agreement.

 

“HHG
Subordination Agreement” means the Subordination Agreement, dated as of the date hereof, by and among the Agent,
the Borrowers and the Loan Party Obligors.

 

“Holdings”  means Hydrofarm Holdings,
LLC, a Delaware limited liability company.

 

“Hydrofarm” means Hydrofarm, LLC,
a California limited liability company.

 

"Indebtedness"
means (without duplication), with respect to any Person, (a) all obligations or liabilities, contingent or otherwise, for borrowed
money, (b) all obligations represented by promissory notes, bonds, debentures or the like, or on which interest charges are customarily
paid, (c) all liabilities secured by any Lien on property owned or acquired, whether or not such liability shall have been assumed,
(d) all obligations of such Person under conditional sale or other title-retention agreements relating to property or assets purchased
by such Person, (e) all obligations of such Person issued or assumed as the deferred purchase price of property or services (other
than (i) trade accounts and accrued expenses payable in the ordinary course of business and (A) not overdue by more than 90 days
or (B) to the extent overdue by more than 90 days (but not more than 270 days) are being Properly Contested, (ii) any earn-out
obligation to the extent such obligation is not required to be reflected on such Person’s balance sheet in accordance with
GAAP, (iii) accruals for payroll and
other liabilities accrued in the Ordinary Course of Business), (f) all Capitalized Leases of such Person, (g) all obligations (contingent
or otherwise) of such Person as an account party or applicant in respect of letters of credit and bankers' acceptances or in respect
of financial or other hedging obligations, (h) all equity interests issued by such Person subject to repurchase or redemption at
any time on or prior to the Scheduled Maturity Date, other than voluntary repurchases or redemptions that are at the sole option
of such Person, (i) all principal outstanding under any synthetic lease, off-balance sheet loan or similar financing product and
(j) all Guaranties, endorsements (other than for collection in the Ordinary Course of Business) and other contingent obligations
in respect of the obligations of others.

 

    	 	15	 

     

    

 

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

 

"Intellectual
Property" means the collective reference to all rights, priorities and privileges relating to intellectual property,
whether arising under United States, Canadian multinational or foreign laws or otherwise, including copyrights, copyright licenses,
patents, patent licenses, trademarks and trademark licenses and all rights to sue at law or in equity for any infringement or other
impairment thereof, including the right to receive all proceeds and damages therefrom.

 

“Intercreditor
Agreement” means the Intercreditor Agreement dated as of the Closing Date among Agent, Term Loan Agent, and the Loan
Party Obligors, as the same may be amended, amended and restated, and/or modified from time to time in accordance with the terms
thereof and hereof.

 

"Interest
Expense" means, for any period for which the amount thereof is to be determined, the consolidated interest expense
of Holdings, the Borrowers and their Subsidiaries, including (i) all interest on Indebtedness (including imputed interest related
to Capital Leases), (ii) all amortization of debt discount and expense, (iii) all commissions, discounts and other fees and charges
owed with respect to letters of credit or bankers’ acceptances and (iv) Swap Obligations of such Person and its Subsidiaries,
to the extent required to be reflected on the income statement of such Person on a consolidated basis in accordance with GAAP.

 

"Inventory Advance Rate" means the percentage(s)
set forth in Section 1(b)(ii) of Annex I.

 

"Inventory Sublimit" means the amount(s)
set forth in Section 1(d) of Annex I.

 

"Investment
Affiliate" means any fund or investment vehicle that (a) is organized by a Person for the purpose of making equity
or debt investments in one or more companies and (b) is controlled by, or under common control with, such Person. For purposes
of this definition "control" means the power to direct or cause the direction of management and policies of a
Person, whether by contract or otherwise.

 

“Investment Corp” means
Hydrofarm Investment Corp, a Delaware corporation.

 

"Investment Property" 
means the collective reference to (a) all "investment property" as such term is defined in Section
9-102 of the UCC (or, in the case of Canadian Borrowers, the PPSA, as applicable), (b) all "financial
assets" as such term is defined in Section 8-102(a)(9) of the UCC (or in the case of Canadian Borrowers, the
PPSA, as applicable) and (c) whether or not constituting "investment property" as so defined, all
Pledged Equity.

 

    	 	16	 

     

    

 

"Issuers" means the collective reference
to each issuer of Investment Property.

 

"Lender"
means each Person listed on the Commitment Schedule and any other Person that shall have become a Lender hereunder pursuant
to an Assignment and Assumption, other than any such Person that ceases to be a Lender hereunder pursuant to an Assignment and
Assumption. Unless the context expressly provides otherwise, "Lender" shall include the Swingline Lender.

 

"LIBOR
Loan" means any Loan which bears interest at a rate determined by reference to the LIBOR Rate.

 

"LIBOR
Rate" means, for any calendar month, the rate (expressed as a percentage per annum and rounded upward, if necessary,
to the next nearest 1/100 of 1%) for deposits in Dollars, for a one-month period, that appears on Bloomberg Screen US0001M (or
the successor thereto) as the London interbank offered rate for deposits in Dollars as of 11:00 a.m., London time, as of two Business
Days prior to the first day of such calendar month (and, in no event shall the LIBOR Rate shall be less than 1.75%), which determination
shall be made by Agent and shall be conclusive in the absence of manifest error. For the sake of clarity, the LIBOR Rate shall
be adjusted monthly on the first day of each month.

 

"Lien"
means any mortgage, deed of trust, pledge, hypothecation, assignment, charge, deposit arrangement, encumbrance, easement, lien
(statutory or other), security interest or other security arrangement and any other preference, priority, or preferential arrangement
in the nature of a security interest of any kind or nature whatsoever, including any conditional sale contract or other title-retention
agreement, the interest of a lessor under a Capitalized Lease and any synthetic or other financing lease having substantially the
same economic effect as any of the foregoing.

 

"Loan Account" has the meaning set forth
in Section 3.4.

 

"Loan
Documents" means, collectively, this Agreement (including the Perfection Certificate(s) and all other attachments,
annexes and exhibits hereto) and all notes, guaranties, security agreements, mortgages, Borrowing Base Certificates, Compliance
Certificates, other certificates, pledge agreements, landlord's agreements, Lock Box and Blocked Account agreements, the
Canadian Security Agreement, the Subordinated Debt Subordination Agreement, the Intercreditor Agreement and all other agreements,
documents and instruments now or hereafter executed or delivered by any Borrower, any Loan Party, or any Other Obligor in connection
with, or to evidence the transactions contemplated by, this Agreement.

 

"Loan Guaranty" means the obligations
of Obligors pursuant to Section 12.

 

"Loan
Limits" means, collectively, the Loan Limits for Revolving Loans set forth in Section 1 of Annex I, the Canadian Loan
Limit and all other limits on the amount of Loans set forth in this Agreement.

 

"Loan Party" means, individually,
each Borrower, or any Subsidiary that is a Loan Party; and "Loan Parties" means, collectively, each
Borrower and all Subsidiaries.

 

"Loan
Party Obligor" means, individually, each Borrower, or any Obligor that is a Loan Party, Holdings and EHH and any Person
identified in the Preamble as a Loan Party Obligor; and "Loan Party Obligors" means, collectively, each
Borrower, and each Loan Party Obligor.

 

    	 	17	 

     

    

 

"Loans"  means, collectively, the Revolving
Loans (including any Protective Advances and Overadvances) and the Swingline Loans.

 

"Lock Box" has the meaning set forth
in Section 6.1.

 

"Material
Adverse Effect" means any event, act, omission, condition or circumstance which, which individually or in the aggregate,
has or could reasonably be expected to have a material adverse effect on (a) the business, operations, properties, assets or financial
condition of any Loan Party or any Other Obligor, as applicable, (b) the ability of any Loan Party or any Other Obligor, as applicable,
to perform any of its obligations under any of the Loan Documents, (c) the validity or enforceability of, or Lender's rights and
remedies under, any of the Loan Documents, (d) the ability of Agent and Lenders realize upon any ABL Priority or any other material
Collateral in which Agent has previously perfected a Lien or (e) the existence, perfection or priority of any security interest
granted in any Loan Document and covering ABL Priority Collateral or any other material Collateral in which Agent has previously
perfected a Lien.

 

"Material
Contract" means, any agreement or arrangement to which an Obligor or Subsidiary is party (other than the Loan Documents
and the Term Loan Documents) (a) that is deemed to be a material contract under any securities law applicable to such Person, including
the Securities Act of 1933; (b) for which breach, termination, nonperformance or failure to renew could reasonably be expected
to have a Material Adverse Effect; or (c) that relates to either (x) Subordinated Debt or (y) Debt, in the case of this clause
(y), in an aggregate amount of $500,000 or more.

 

"Maturity
Date" means the earlier of (i) Scheduled Maturity Date, (ii) the Termination Date, or (iii) such earlier date as the
Obligations may be accelerated in accordance with the terms of this Agreement (including pursuant to Section 11.2).

 

"Maximum Lawful Rate" has the meaning
set forth in Section 3.5.

 

"Maximum Liability" has the meaning
set forth in Section 12.9.

 

"Maximum Revolving Facility Amount" 
means the amount set forth in Section 1(a) of Annex I.

 

“Merge”
in reference to any Person which is an entity, means the amalgamation or merger between two (2) or more separate Persons into one
(1) surviving entity.

 

“Minimum Excess Availability Amount”
means $5,000,000.

 

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

 

“Net
Income” means, for any fiscal period, the Net Income (or loss) of Holdings, the Borrowers and their
Subsidiaries determined on a consolidated basis in accordance with GAAP; provided that there shall be excluded from such net
income (to the extent otherwise included therein), without duplication: (a) the net income (or loss) of any Person (other
than a Subsidiary of Holdings) in which any Person other than Holdings, a Borrower or any of their Subsidiaries has an
ownership interest, except to the extent that cash in an amount equal to any such income has actually been received by
Holdings, a Borrower or any of their Subsidiaries from such Person during such period, (b) the net income (or loss) of any
Person accrued prior to the date it becomes a Subsidiary of Holdings or is merged into
or consolidated with Holdings, a Borrower or any of their Subsidiaries or that Person’s assets are acquired by Holdings,
a Borrower or any of their Subsidiaries, (c) the net income of any Subsidiary of Holdings during such period to the extent that
the declaration and/or payment of dividends or similar distributions by such Subsidiary of that income is not permitted by operation
of the terms of its organizational documents or any agreement, instrument, order or other legal requirement applicable to that
Subsidiary or its equityholders during such period, and (d) the cumulative effect of a change in accounting principles.

 

    	 	18	 

     

    

 

"NOLV"
means the applicable Net Orderly Liquidation Value as determined by the most current third-party appraisal report, performed by
an appraisal firm retained by the Agent for such appraisal project with respect to the Eligible Inventory, and in form and substance
acceptable to Agent.

 

"Non-Consenting
Lender" has the meaning set forth in Section 15.5(b).

 

"Non-Paying Guarantor" has the meaning
set forth in Section 12.10.

 

"Non-U.S. Recipient" has the meaning set forth in Section 13(e)(ii).

 

"Notice
of Borrowing" has the meaning set forth in Section 2.3.

 

"Obligations"
means all present and future Loans, advances, debts, liabilities, fees, expenses, obligations, guaranties, covenants, duties and
indebtedness at any time owing by any Borrower or any Loan Party Obligor to Agent and Lenders, whether evidenced by this Agreement,
any other Loan Document or otherwise, whether arising from an extension of credit, guaranty, indemnification or otherwise, whether
direct or indirect (including those acquired by assignment and any participation by any Lender in any Borrower's indebtedness owing
to others), whether absolute or contingent, whether due or to become due and whether arising before or after the commencement of
a proceeding under the Bankruptcy Code or any similar statute.

 

"Obligor"
means any guarantor, endorser, acceptor, surety or other Person liable on, or with respect to, any of the Obligations or who
is the owner of any property which is security for any of the Obligations, other than Borrower.

 

"Ordinary
Course of Business" means, in respect of any transaction involving any Person, the ordinary course of business of
such Person, as conducted by such Person as of the Closing Date and any practices that are utilized to improve past practices or
to conform with customary operating procedures for a similar business, as reasonably determined by such Person.

 

"Other Obligor" means any Obligor other
than any Loan Party Obligor.

 

"Other
Taxes" means all present or future stamp, court or documentary, property, excise, intangible, recording, filing or
similar Taxes that arise from any payment made under, from the execution, delivery, performance, enforcement or registration of,
from the receipt or perfection of a security interest under, or otherwise with respect to, any Loan Document.

 

"Overadvances"
has the meaning set forth in Section 2.2(b)."Participant" has the meaning set forth in Section 15.10(b).

 

"Paying Guarantor" has the meaning set
forth in Section 12.10.

 

"PBGC" means the Pension Benefit Guaranty
Corporation.

 

    	 	19	 

     

    

 

"Pension Act" means the Pension Protection
Act of 2006.

 

"Pension
Funding Rules" means the rules of the Code and ERISA regarding minimum required contributions (including any
installment payment thereof) to Pension Plans and Multiemployer Plans and set forth in, with respect to plan years ending
prior to the effective date of the Pension Act, Section 412 of the Code and Section 302 of ERISA, each as in effect prior to
the Pension Act and, thereafter, Section 412, 430, 431, 432 and 436 of the Code and Sections 302, 303, 304 and 305 of ERISA,
and any sections of the Code or ERISA related thereto that are enacted after the date of this Agreement.

 

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

 

“Perfection
Certificate” means the Perfection Certificate completed by Borrowers and Obligors and attached hereto and incorporated
herein by this reference, and any supplements or updates thereto delivered to Lender in accordance herewith.

 

“Permitted
Affiliate Sub Debt” means (x) Indebtedness of Holdings to an Affiliate, (y) the HHG Note and (z) solely to the extent
funded in its entirety from the proceeds of Permitted Affiliate Sub Debt of Holdings to an Affiliate, Indebtedness of the Borrower
Representative to Holdings, in each case, that (a) is unsecured, (b) is fully and completely subordinated to the prior payment
in full of the Obligations for the benefit of, and to, the Lenders pursuant to a subordination agreement, which shall, in each
case, be in form and substance satisfactory to Agent in its sole discretion, (c) has a final maturity date that is not earlier
than, and provides for no scheduled payments of principal or mandatory redemption obligations prior to, December 31, 2022, (d)
provides for payments of interest solely in- kind (and not in cash) until not earlier than December

31, 2022, (e) does not contain
any financial covenants, (f) is not cross-defaulted (but may be cross- accelerated) to the Loan Documents, and (g) is subject to
permanent standstill provisions.

 

“Permitted
Asset Disposition” means an Asset Disposition that is (a) a sale or lease of Inventory in the Ordinary Course
of Business; (b) termination of a lease of real or personal Property that is not necessary for the Ordinary Course of
Business, could not reasonably be expected to have a Material Adverse Effect and does not result from an Obligor’s
default; (c) a lease or sublease of Real Estate in the Ordinary Course of Business; (d) a license or sublicense of
Intellectual Property (including any non-exclusive license of Intellectual Property) entered into in the Ordinary Course of
Business; (e) an Asset Disposition, abandonment or lapse of Intellectual Property that is immaterial or no longer used or the
expiration of Intellectual Property in accordance with its statutory term; (f) an Asset Disposition of cash equivalents in
the Ordinary Course of Business; (g) an Asset Disposition of Property to a Borrower or any Wholly Owned Loan Party (other
than Holdings); (h) Restricted Payments by the Loan Parties and their Subsidiaries, in each case to the extent expressly
permitted by Section 8(l); (i) the discount, write-down, sale or other Asset Disposition in the Ordinary Course of Business
of trade or accounts receivable more than 120 days past due in an aggregate amount not to exceed $500,000 during any 12-month
fiscal period; (j) approved in writing by Agent; or (k) as long as no Default or Event of Default exists, (i) an Asset
Disposition of any Property which is to be replaced, and is in fact replaced, or subject to a binding contract to be
replaced, within 180 days with another asset useful in the Obligors’ business (so long as Agent has a first priority
and perfected Lien on any newly acquired asset, subject to the terms of the Intercreditor Agreement), (ii) Asset Dispositions
of Property (other than Accounts or Inventory) that, in the aggregate during any 12-month fiscal period, has a fair market or
book value (whichever is more) of $500,000 or less, (iii) Asset Dispositions of Property (other than Accounts or Inventory)
that is obsolete or no longer used or useful in the business or Inventory that is unmerchantable or otherwise unsalable in the
Ordinary Course of Business, or (iv) replacement of Equipment that is worn, damaged or obsolete with Equipment of like function
and value, if the replacement Equipment is acquired substantially contemporaneously with such disposition (or such longer period
consented to by Agent) and is free of Liens other than Permitted Liens.

 

    	 	20	 

     

    

 

"Permitted
Discretion" means a determination made by Agent in good faith and in the exercise of reasonable (from the perspective
of an asset-based secured lender) business judgment.

 

"Permitted
Indebtedness" means: (a) the Obligations; (b) the Indebtedness existing on the date hereof described in Section
7 of the Perfection Certificate; in each case along with extensions, refinancings, modifications, amendments and restatements
thereof; provided, that (i) the principal amount thereof is not increased (other than by accrued interest that is
added to the principal amount of such Indebtedness), (ii) if secured by a Permitted Lien, no additional collateral beyond that
existing as of the Closing Date is granted to secure such Indebtedness; (iii) if such Indebtedness is subordinated to any or all
of the Obligations, the applicable subordination terms shall not be modified without the prior written consent of Agent and (iv)
the terms thereof are not modified to impose more burdensome terms upon any Loan Party (v) it has a final maturity date no sooner
than, a weighted average life no less than, and an interest rate no greater than, the Indebtedness being extended, renewed, or
refinanced; (c) Permitted Purchase Money Debt; (d) Indebtedness incurred as a result of endorsing negotiable instruments received
in the Ordinary Course of Business;  (e) Subordinated Debt (other than HHG Note) in an aggregate amount outstanding at
any time not in excess of $1,000,000 and then solely to the extent the applicable Subordinated Debt is subject to, and permitted
by, the applicable Subordinated Debt Subordination Agreement; (f) Indebtedness in respect of appeal bonds, workers’ compensation
claims, self- insurance obligations and bankers acceptances, in each case, issued for the account of any Obligor in the Ordinary
Course of Business, including guarantees or obligations of any Obligor with respect to Letters of Credit supporting such appeal
bonds, workers’ compensation claims, self-insurance obligations and bankers acceptances (in each case other than for an
obligation for borrowed money); (g) the Term Loan Obligations so long as the loans thereunder do not exceed the Term Loan Maximum
Amount (as defined in the Intercreditor Agreement), subject to the limitations set forth in the Intercreditor Agreement; (h) Permitted
Intercompany Loans; (i) Indebtedness arising from the honoring by a bank or other financial institution of a check, draft or similar
instrument inadvertently (except in the case of daylight overdrafts) drawn against insufficient funds in the Ordinary Course of
Business; (j) Subordinated Debt of any Loan Party to repurchase equity interests from any employee, officer, director or such
person’s spouse, estate or estate planning vehicle upon the death, disability or termination of employment of such employee,
officer or director so long as (x) no Default or Event of Default has occurred and is continuing or would occur as a result thereof,
and (y) the aggregate amount of Indebtedness outstanding under this clause (j) does not exceed $1,000,000 in the aggregate at
any time; (k) arising as a result of an unsecured Guaranty by Holdings of the Indebtedness, Real Property lease or other obligation
of a Loan Party permitted by this Agreement (provided, that if any such Indebtedness, lease or other obligation is subordinated
to the Obligations, any such Holdings guaranty shall be subordinated to the Obligations on terms no less favorable to the Agent
and the Lenders as compared to the subordination terms applicable to such Indebtedness, lease or other obligations) (l) Indebtedness
consisting of any final judgment rendered against any Loan Party that has not been paid, discharged or vacated or had execution
thereof stayed pending appeal prior to such final judgment constitution an Event of Default in accordance with Section 11(d) hereof;
(m) Indebtedness that is not included in any of the preceding clauses of this Definition, is not secured by a Lien and does not
exceed $500,000; (n) all premium (if any), interest, fees, expenses, charges and additional or contingent interest on obligations described
in clauses (a) through (m) above, (p) the Asset Acquisition Earnout Obligations; (q) any Indebtedness associated with sections
(d), (e), (i) and (n) of the Permitted Liens as defined below and (r) the HHG Note.

 

    	 	21	 

     

    

 

“Permitted
Intercompany Loans” means (a) intercompany loans by a U.S. Obligor to another U.S. Obligor, (b) intercompany
loans by a Canadian Obligor to another Canadian Obligor, (c) intercompany loans by a U.S. Obligor to a Canadian Obligor in an
amount not to exceed $500,000 at any time and so long as immediately before and after giving effect to such loans by a U.S.
Obligor to a Canadian Obligor, and no Default or Event of Default exists, and (d) intercompany loans by a Canadian Obligor to
a U.S. Obligor.

 

"Permitted
Liens" means (a) Liens securing Permitted Purchase Money Debt; (b) liens for taxes, fees, assessments, or other governmental
charges or levies, either not delinquent or being contested in good faith by appropriate proceedings (which proceedings have the
effect of preventing the enforcement of such lien) for which adequate reserves in accordance with GAAP are being maintained provided
the same have no priority over any of Agent's security interests; (c) liens incurred or deposits made in the Ordinary Course of
Business to secure the performance of government tenders, bids, contracts, statutory obligations and other similar obligations,
as long as such liens are at all times junior to the liens in favor of the Agent; (d) liens existing on the Closing Date and set
forth in Section 8 of the Perfection Certificate; (e) leases, subleases, licenses or sublicenses of the Property of any Loan Party,
in each case entered into in the Ordinary Course of Business of such Loan Party which do not (i) interfere in any material respect
with the business of any Loan Party or any Subsidiary and (ii) secure any Indebtedness; (f) the filing of UCC financing statements
solely as a precautionary measure in connection with operating leases or consignment of goods; (g) liens of materialmen, mechanics,
carriers, or other similar liens arising in the Ordinary Course of Business and securing obligations which are not delinquent or
are being contested in good faith by appropriate proceedings (which proceedings have the effect of preventing the enforcement of
such lien) for which adequate reserves in accordance with GAAP are being maintained; (h) liens which constitute banker's liens,
rights of set-off, or similar rights as to deposit accounts or other funds maintained with a bank or other financial institution
(but only to the extent such banker's liens, rights of set-off or other rights are in respect of customary service charges relative
to such deposit accounts and other funds, and not in respect of any loans or other extensions of credit by such bank or other financial
institution to any Loan Party); (i) cash deposits or pledges of an aggregate amount not to exceed $100,000 to secure the payment
of worker's compensation, unemployment insurance, or other social security benefits or obligations, public or statutory obligations,
surety or appeal bonds, bid or performance bonds, or other obligations of a like nature incurred in the Ordinary Course of Business;
(j) judgment Liens in respect of judgments that do not constitute an Event of Default; (k) easements, rights-of-way, restrictions,
covenants or other agreements of record, and other similar charges or encumbrances, or any encroachments, on Real Estate, that
do not secure any monetary obligation and do not interfere with the Ordinary Course of Business; (l) leases, subleases, licenses
or sublicenses of the Property of any Loan Party, in each case entered into in the Ordinary Course of Business of such Loan Party
which do not (i) interfere in any material respect with the business of any Loan Party or any Subsidiary and (ii) secure any Indebtedness;
(m) licenses or sublicenses of Intellectual Property granted by any Obligor in the Ordinary Course of Business; (n) Liens on an
insurance policy of any Obligor and the identifiable cash proceeds thereof in favor of the issuer of such policy and securing Debt
permitted to finance the premiums of such policies; and (o) Liens securing the Term Loan Obligations as permitted by, and subject
to, the Intercreditor Agreement.

 

“Permitted Purchase Money Debt”
means Purchase Money Debt of the Loan Parties and Subsidiaries that is unsecured or secured only by a Purchase Money Lien, as
long as the aggregate amount of Permitted Purchase Money
Debt outstanding does not exceed $1,000,000 at any time.

 

    	 	22	 

     

    

 

“Permitted
Tax Distributions” means, with respect to any taxable year with respect to which Hydrofarm is a disregarded entity
for U.S. federal and state income tax purposes and is a partnership for U.S. federal and state income tax purposes, distributions
by Hydrofarm (which may further distribute to its direct owner(s)) in an aggregate amount equal to the sum of (x) the product of
(i) the aggregate net taxable income for such taxable year (or portion thereof), taking into account any depreciation (or other
cost recovery) in respect of basis adjustments under Section 734 or Section 743 of the Code, and reduced by any cumulative net
taxable losses with respect to all prior taxable years (determined as if all such periods were one period) to the extent such cumulative
net taxable loss is of the same character (ordinary or capital) and (ii) the lesser of (a) the highest combined marginal federal
and state income tax rate (taking into account the deductibility of state and local income taxes for U.S. federal income tax purposes
and the character of the taxable income in question (i.e., long term capital gain, qualified dividend income, etc.)) applicable
to an individual resident in California for the taxable year in question (or portion thereof) and (b) 40%, plus (y) solely to the
extent that (A) one or more holders of equity interests is a resident of California (each such holder that is a resident of California
is herein referred to as an “Applicable Holder”), and (B) the amount of such Tax Distribution is determined
by reference to clause (x)(ii)(b) above, the aggregate amount by which the actual federal and state income tax liability of each
such Applicable Holder for such taxable year with respect to the net tax taxable income of allocated to such Applicable Holder
(such Applicable Holder’s “Allocated Taxable Income”) for such taxable year exceeds the product of (a)
40%, times (b) such Allocated Taxable Income; provided that such cash distributions shall be reduced by amounts withheld
by any Obligor (or otherwise paid directly to any taxing authority) with respect to any taxable income or gain of or any Subsidiary
(including all amounts paid with composite tax returns and amounts paid by any Obligor pursuant to Section 6225 of the Code) and
any income tax credits allocated to any direct or indirect members of (to the extent reasonably determines that such tax credits
may be utilized by the direct or indirect owners of Holdings).

 

"Person"
means any individual, sole proprietorship, partnership, joint venture, limited liability company, trust, unincorporated organization,
association, corporation, government or any agency or political division thereof, or any other entity.

 

"Plan"
means any employee benefit plan within the meaning of Section 3(3) of ERISA (including a Pension Plan) maintained for employees
of any Loan Party or any such plan to which any Loan Party (or with respect to any plan subject to Section 412 of the Code or Section

302 or Title IV of ERISA, any ERISA Affiliate) is
required to contribute on behalf of any of its employees.

 

"Pledged
Equity" means the equity interests listed on Sections 1(f) and 1(g) of the Perfection Certificate, together with any
other equity interests, certificates, options, or rights or instruments of any nature whatsoever in respect of the equity interests
of any Person that may be issued or granted to, or held by, any Loan Party Obligor while this Agreement is in effect, and including,
to the extent attributable to, or otherwise related to, such pledged equity interests, all of such Loan Party Obligor's (a) interests
in the profits and losses of each Issuer, (b) rights and interests to receive distributions of each Issuer's assets and properties
and (c) rights and interests, if any, to participate in the management of each Issuer related to such pledged equity interests.

 

“PPSA”
means, at any given time, the personal property security legislation as adopted and in effect at such time in the applicable Canadian
province or territory where a Canadian Borrower is subsisting, located, or has assets.

 

    	 	23	 

     

    

 

“Pro
Rata Share" means with respect to all matters relating to any Lender the percentage obtained by dividing (i)
the Loan Commitment of that Lender by (ii) the aggregate Loan Commitments of all Lenders, in each case as any such percentages
may be adjusted by assignments pursuant to an Assignment and Assumption

 

"Protective Advances" has the meaning
set forth in Section 2.2(a).

 

“Properly
Contested” means with respect to any obligation of an Obligor, (a) the obligation is subject to a bona fide dispute
regarding amount or the Obligor’s liability to pay; (b) the obligation is being properly contested in good faith by appropriate
proceedings promptly instituted and diligently pursued; (c) appropriate reserves have been established in accordance with GAAP;
(d) non-payment would not have a Material Adverse Effect, nor result in forfeiture or sale of any assets of the Obligor; (e) no
Lien is imposed on assets of the Obligor, unless bonded and stayed to the satisfaction of Agent; and (f) if the obligation results
from entry of a judgment or other order, such judgment or order is stayed pending appeal or other judicial review.

 

“Purchase
Money Debt” means (a) Indebtedness (other than the Obligations) for payment of any of the purchase price of fixed
assets or payments pursuant to a Capital Lease of fixed assets, (b) Indebtedness (other than the Obligations) incurred within ten
(10) days before or after acquisition of any fixed assets, for the purpose of financing any of the purchase price thereof, and
(c) any renewals, extensions or refinancings (but not increases) thereof; provided, that, in no event shall the amount of Purchase
Money Debt exceed the purchase price of the assets being financed in respect thereof.

 

“Purchase
Money Lien” means a Lien that secures Purchase Money Debt, encumbering only the fixed assets acquired with such Indebtedness
and constituting a Capital Lease or a purchase money security interest under the Uniform Commercial Code or the PPSA.

 

“Real
Estate” all right, title and interest (whether as owner, lessor or lessee) in any real property or any buildings,
structures, parking areas or other improvements thereon.

 

"Recipient"
means any Agent, any Lender, any Participant, or any other recipient of any payment to be made by or on account of any Obligation
of any Loan Party under this Agreement or any other Loan Document, as applicable.

 

"Register" has the meaning
set forth in Section 15.9(c).

 

"Released Parties" has the meaning set forth in Section 10.1.

 

"Replacement
Lender" has the meaning set forth in Section 3(c).

 

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

 

"Required
Lenders" means at any time Lenders (other than Defaulting Lenders) then holding at least fifty-one (51%) percent of
the sum of the aggregate Loan Commitment then in effect; provided, that if there are two or more Lenders, then Required
Lenders shall include at least two Lenders (Lenders that are Affiliates or Approved Funds of one another being considered as one
Lender for purposes of this proviso).

 

"Reserves" has the meaning set forth
in Section 2.1(b).

 

    	 	24	 

     

    

 

"Restricted
Accounts" means Deposit Accounts (a) established and used (and at all times will be used) solely for the purpose of
paying current payroll obligations of Loan Parties (and which do not (and will not at any time) contain any deposits other than
those necessary to fund current payroll), in each case in the Ordinary Course of Business, or (b) maintained (and at all times
will be maintained) solely in connection with an employee benefit plan, but solely to the extent that all funds on deposit therein
are solely held for the benefit of, and owned by, employees (and will continue to be so held and owned) pursuant to such plan.

 

“Restricted
Investment” means any investment by a Loan Party other than investments permitted by Section 8(f).

 

“Restricted
Payment” means (a) any declaration or payment of a distribution, interest or dividend on, any payment on account
of, or any setting apart assets for a sinking or other analogous fund for, any Equity Interest or Equity Interests Equivalents,
(b) any distribution, advance or repayment of any Indebtedness to a direct or indirect holder of Equity Interests or Equity Interests
Equivalents, or (c) any purchase, redemption, or other acquisition or retirement for value of, or any setting apart assets for
a sinking or other analogous fund for the purchase, redemption, or other acquisition or retirement for value of, any Equity Interest
or Equity Interests Equivalents.

 

"Revolving
Loan Commitment" means (a) as to any Lender, the aggregate commitment of such Lender to make Revolving Loans as set
forth in the Commitment Schedule or in the most recent Assignment and Assumption to which it is a party (as adjusted to reflect
any assignments as permitted hereunder) and (b) as to all Lenders, the aggregate commitment of all Lenders to make Revolving Loans,
which aggregate commitment shall be in an amount equal to the Maximum Revolving Facility Amount.

 

"Revolving Loans" has the meaning set
forth in Section 2.1(a).

 

"Scheduled
Maturity Date" means the earlier of the date (a) set forth in Section 6 of Annex I or (b) that is 90 days prior to
the scheduled maturity date of the Term Loan Facility.

 

"Securities Act" means the
Securities of Act of 1933, as amended.

 

"Settlement" has the meaning set forth in Section 2.4(c).

 

"Settlement
Date" has the meaning set forth in Section 2.4(c).

 

“Sponsor
Group” means (i) Hawthorn Equity Partners and its Controlled Investment Affiliates, (ii) Broadband Capital Investments
and its Controlled Investment Affiliates, (iii) Serruya Private Equity and its Controlled Investment Affiliates, (iv) BCM X3 Holdings,
LLC and its Controlled Investment Affiliates, (v) Aaron Serruya, Michael Serruya, Simon Serruya and Jacques Serruya, individually
and each such individual’s Controlled Investment Affiliates.

 

"Stated Rate" has the meaning set forth
in Section 3.5.

 

"Subordinated
Debt" means (a) any Permitted Affiliate Sub Debt and (b) any other Indebtedness incurred by an Obligor that (i)
is unsecured, (ii) is fully and completely subordinated to the prior payment in full of the Obligations for the benefit of,
and to, the Lenders pursuant to a subordination agreement, which shall, in each case, be in form and substance satisfactory
to Agent in its sole discretion, (iii) has a final maturity date that is not earlier than, and provides for no scheduled
payments of principal or mandatory redemption obligations prior to, December 31, 2022 (iv) provides for payments of interest
solely in-kind (and not in cash) until not earlier than December 31, 2022, (v) does not contain any financial covenants, (vi)
is not cross-defaulted (but may be cross-accelerated) to
the Loan Documents, (vii) is subject to permanent standstill provisions, and (viii) is otherwise on terms (including maturity,
interest, fees, repayment, covenants and subordination) satisfactory to Agent in its sole discretion. For the avoidance of doubt,
Subordinated Debt shall not include the HHG Note.

 

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"Subordinated
Debt Documents" means all documents governing any Subordinated Debt as permitted under the applicable Subordinated
Debt Subordination Agreement as amended, restated or otherwise modified from time to time.

 

"Subordinated
Debt Subordination Agreement" means any subordination agreement governing Subordinated Debt entered into by Agent
and the applicable holder of such Subordinated Debt (or agent thereof) as amended, restated or otherwise modified from time to
time.

 

"Subsidiary"
means any corporation or other entity of which a Person owns, directly or indirectly, through one or more intermediaries, more
than 50% of the capital stock or other equity interest at the time of determination. Unless the context indicates otherwise, references
to a Subsidiary shall be deemed to refer to a Subsidiary of Borrower.

 

“Swap
Obligations” means with respect to any Borrower or Guarantor, any obligation to pay or perform under any agreement,
contract or transaction that constitutes a “swap” within the meaning of Section 1a(47) of the Commodity Exchange Act,
as amended from time to time.

 

"Swingline Lender" means Encina in its
capacity as lender of Swingline Loans hereunder.

 

"Swingline Loans" has the meaning set
forth in Section 2.4(a).

 

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

 

“Term
Loan Agent” means Brightwood Loan Services LLC, in its capacity as administrative agent under the Term Loan Facility,
as its successors and assigns.

 

“Term Loan Documents” has the meaning
assigned to the term “Term Loan Documents” in the Intercreditor Agreement.

 

“Term
Loan Facility” (i) that certain Credit Agreement, dated as of May 12, 2017 among the Obligors, the Term Loan Agent
and the Term Loan Lenders, as amended by that certain Amendment No. 1 to Credit Agreement dated as of September 21, 2017 (“TL
Amendment No. 1”), that certain Amendment No. 2 to Credit Agreement dated as of November 8, 2017 (“TL
Amendment No. 2”), that certain Forbearance Agreement and Amendment to Credit Agreement dated as of May 18, 2018
(the “TL Forbearance”), that certain Amendment No. 1 to Forbearance Agreement dated as of July 16, 2018
(the “TL Forbearance Amendment”), that certain Waiver and Amendment No. 3 to Credit Agreement dated as
of August 24, 2018 (“TL Amendment No. 3”), that certain Amendment No. 4 to Credit Agreement dated as
of March 15, 2019 (“TL Amendment No. 4”), that certain Amendment No. 5 to Credit Agreement dated as of
the Closing Date and as may be further amended, amended and restated, modified or supplemented from time to time in accordance
with the terms hereof and of the Intercreditor Agreement, and (ii) any other credit agreement, debt facility, loan agreement, note
agreement, promissory note, indenture or other agreement or instrument evidencing or governing the terms of any Indebtedness or
other financial accommodation that has been incurred to increase, extend (subject to the limitations set forth herein and in the Intercreditor Agreement),
replace or refinance in whole or in part the Indebtedness and other obligations outstanding under (x) the credit agreement referred
to in clause (i) or (y) any subsequent credit agreement, unless such agreement or instrument expressly provides that it is not
intended to be and is not a Term Loan Facility hereunder, in any case, in accordance with the Intercreditor Agreement. Any reference
to the Term Loan Facility hereunder shall be deemed a reference to any Term Loan Facility then in existence.

 

    	 	26	 

     

    

  

“Term Loan Lenders” has the meaning
assigned to the term “Term Loan Lenders” in the Intercreditor Agreement.

 

“Term
Loan Obligations” shall mean the “Obligations” as such term is defined in the Term Loan Facility or any
equivalent term used to describe the obligations arising thereunder and in connection therewith.

 

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

 

“Term Loan Side Letter Agreement”
has the meaning assigned to such term in Section 7.24(c).

 

"Termination
Date" means the date on which all of the Obligations have been paid in full in cash and all of Agent and Lenders'
lending commitments under this Agreement and under each of the other Loan Documents have been terminated.

 

"UCC"
means, at any given time, the Uniform Commercial Code as adopted and in effect at such time in the State of New York or other applicable
jurisdiction.

 

“Ultimate Parent” means Hydrofarm
Holdings Group, Inc., a Delaware corporation.

 

“U.S. Account” means any account invoiced
and payable in Dollars.

 

"U.S.
Obligor(s)" means any Borrower or Loan Party Obligor organized under the laws of United States of America or any state
thereof.

 

1.2. Accounting Terms and Determinations.

 

Unless otherwise
specified herein, all accounting terms used herein shall be interpreted, all accounting determinations hereunder (including determinations
made pursuant to the exhibits hereto) shall be made, and all financial statements required to be delivered hereunder shall be prepared
on a consolidated basis in accordance with GAAP consistently applied. If at any time any change in GAAP would affect the computation
of any financial ratio or financial requirement set forth in any Loan Document, and either Borrower Representative or Agent shall
so request, Required Lenders and Borrower Representative shall negotiate in good faith to amend such ratio or requirement to preserve
the original intent thereof in light of such change in GAAP; provided that, until so amended, (a) such ratio or requirement
shall continue to be computed in accordance with GAAP prior to such change therein and (b) Borrower Representative shall provide
to Agent and Lenders financial statements and other documents required under this Agreement and the other Loan Documents which
include a reconciliation between calculations of such ratio or requirement made before and after giving effect to such change in
GAAP. Notwithstanding any other provision contained herein, all terms of an accounting or financial nature used herein shall be
construed, and all computations of amounts and ratios referred to herein shall be made, without giving effect to any election under
Statement of Financial Accounting Standards 159 (Codification of Accounting Standards 825-10) to value any Indebtedness
or other liabilities of any Loan Party at "fair value", as defined therein.

 

    	 	27	 

     

    

 

Notwithstanding
anything to the contrary contained in the paragraph above or the definitions of Capital Expenditures or Capitalized Leases, in
the event of a change in GAAP after the Closing Date requiring all leases to be capitalized, only those leases (assuming for purposes
of this paragraph that they were in existence on the Closing Date) that would constitute Capitalized Leases on the Closing Date
shall be considered Capitalized Leases (and all other such leases shall constitute operating leases) and all calculations and deliverables
under this Agreement or the other Loan Documents shall be made in accordance therewith (other than the financial statements delivered
pursuant to this Agreement; provided that all such financial statements delivered to Agent and Lenders in accordance
with the terms of this Agreement after the date of such change in GAAP shall contain a schedule showing the adjustments necessary
to reconcile such financial statements with GAAP as in effect immediately prior to such change).

 

1.3. Other Definitional Provisions and References.

 

References
in this Agreement to "Articles", "Sections", "Annexes",
"Exhibits" or "Schedules" shall be to Articles, Sections, Annexes, Exhibits or
Schedules of or to this Agreement unless otherwise specifically provided. Any term defined herein may be used in the singular or
plural. "Include", "includes" and "including" shall be
deemed to be followed by "without limitation". "Or" shall be construed to mean
"and/or". Except as otherwise specified or limited herein, references to any Person include the successors
and assigns of such Person. References "from" or "through" any date mean, unless
otherwise specified, "from and including" or "through and including", respectively.
No provision of any Loan Documents shall be construed against any party by reason of such party having, or being deemed to have,
drafted the provision. Unless otherwise specified herein, the settlement of all payments and fundings hereunder between or among
the parties hereto shall be made in lawful money of the United States and in immediately available funds. Time is of the essence
for each performance obligation of the Loan Parties under this Agreement and each Loan Document. All amounts used for purposes
of financial calculations required to be made herein shall be without duplication. References to any statute or act shall include
all related current regulations and all amendments and any successor statutes, acts and regulations. References to any agreement,
instrument or document (a) shall include all schedules, exhibits, annexes and other attachments thereto and (b) shall be construed
as referring to such agreement, instrument or other document as from time to time amended, amended and restated, restated, supplemented
or otherwise modified (subject to any restrictions on such amendments, restatements, supplements or modifications set forth herein
or in any other Loan Document). The words "asset" and "property" shall be construed
to have the same meaning and effect and to refer to any and all tangible and intangible assets and properties, including cash,
securities, accounts and contract rights. Unless otherwise specified herein Dollar ($) baskets set forth in the representations
and warranty, covenants and event of default provisions of this Agreement (and other similar baskets) are calculated as of each
date of measurement by the Dollar Equivalent Amount thereof as of such date of measurement. Reference to a Loan Party’s "knowledge"
or similar concept means actual knowledge of a senior officer, or knowledge that a senior officer would have obtained if he or
she had engaged in good faith and diligent performance of his or her duties, including reasonably specific inquiries of employees
or agents and a good faith attempt to ascertain the matter.

 

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2.       LOANS.

 

2.1. Amount of Loans .

 

(a) Revolving
Loans.  Subject to the terms and conditions of this Agreement, each Lender with a Revolving Loan Commitment will severally
(and not jointly), from time to time prior to the Maturity Date, at Borrower Representative's request, make revolving loans to
Borrowers ("Revolving Loans"); provided, that after giving effect to each such Revolving
Loan, (A) the outstanding balance of all Revolving Loans plus fees and expenses which are due and payable by Borrower under this
Agreement but which have not been paid or charged to the Loan Account will not exceed the lesser of (x) the Maximum Revolving Facility
Amount minus the amount of Reserves established against the Maximum Revolving Facility Amount and (y) the Borrowing Base, (B) the
aggregate outstanding principal balance of all Revolving Loans to the Canadian Borrowers shall not be in excess of the Canadian
Loan Limit, (C) the sum of each Lender's outstanding balance of Revolving Loans will not exceed such Lender's Revolving Loan Commitment
and (d) none of the other Loan Limits for Revolving Loans will be exceeded. All Revolving Loans shall be made in and repayable
in Dollars.

 

(b) Reserves.
Agent may, with or without notice to Borrower Representative, from time to time establish and revise reserves against the Borrowing
Base and the Maximum Revolving Facility Amount in such amounts and of such types as Agent deems appropriate in its Permitted Discretion
("Reserves") to reflect (i) events, conditions, contingencies or risks which affect or may affect (A)
the ABL Priority Collateral or its value, or the enforceability, perfection or priority of the security interests and other rights
of Agent in the ABL Priority Collateral or (B) the assets, business or prospects of any Borrower or any Loan Party Obligor (including
the Dilution Reserve), (ii) Agent's good faith concern that any Collateral report or financial information furnished by or on
behalf of any Borrower or any Loan Party Obligor to Agent is or may have been incomplete, inaccurate or misleading in any material
respect, (iii) any fact or circumstance which Agent determines in good faith constitutes, or could constitute, a Default or Event
of Default, or (iv) past due Taxes, or (v) any other events or circumstances which Agent determines in good faith make the establishment
or revision of a Reserve prudent. In no event shall the establishment of a Reserve in respect of a particular actual or contingent
liability obligate Agent to make advances to pay such liability or otherwise obligate Agent with respect thereto.

 

(c)       Reserved.

 

2.2. Protective Advances; Overadvances.

 

(a)
Notwithstanding any contrary provision of this Agreement or any other Loan Document, at any time (i) after the occurrence and
during the continuance of a Default or Event of Default or (ii) that any of the other applicable conditions precedent set
forth in Section 4 or otherwise are not satisfied, Agent is authorized by each Borrower and each Lender, from time to time,
in Agent's sole discretion, to make such Revolving Loans to, or for the benefit of, any Borrower, as Agent in its sole
discretion deems necessary or desirable (1) to preserve or protect the Collateral, or any portion thereof, or (2) to enhance
the likelihood of repayment of the Obligations (the Revolving Loans described in this Section 2.2 shall be referred to as "Protective
Advances"). Notwithstanding any contrary provision of this Agreement or any other Loan Document, Agent may
disburse the proceeds of any Protective Advance to any Borrower or to such other Person(s) as Agent determines in its sole
discretion. All Protective Advances shall be payable immediately upon demand. Notwithstanding the foregoing, (i) the
aggregate amount of all Protective Advances outstanding at any time shall not exceed an amount equal to ten percent (10%) of
the Maximum Revolving Facility Amount and (ii) after giving effect to any such Protective
Advances, the outstanding balance of all Revolving Loans will not exceed the Maximum Revolving Facility Amount.

 

    	 	29	 

     

    

 

(b)
Notwithstanding any contrary provision of this this Agreement, at the request of Borrower Representative, Agent may in its
sole discretion (but with absolutely no obligation), make Revolving Loans to any Borrower, on behalf of the Lenders with a
Revolving Loan Commitment, in amounts that exceed Excess Availability (any such excess Revolving Loans are herein referred to
herein, collectively, as "Overadvances"); provided, that, no Overadvance shall result
in a Default due to any Borrower's failure to comply with Section 2.1(a) for so long as such Overadvance remains outstanding
in accordance with the terms of this paragraph, but solely with respect to the amount of such Overadvance. Overadvances may
be made even if the conditions precedent set forth in Section 4.2 have not been satisfied. The authority of Agent to make
Overadvances is limited to an aggregate amount not to exceed an amount equal to ten percent (10%) of the Maximum Revolving
Facility Amount at any time. No Overadvance may remain outstanding for more than thirty (30) days and no Overadvance shall
cause any Lender's outstanding balance of Revolving Loans to exceed its Revolving Commitment. Required Lenders may, at any
time, revoke Agent's authorization to make Overadvances, provided that any such revocation must be in writing
and shall become effective prospectively upon Agent's receipt thereof.

 

(c) Upon the
making of any Protective Advance or Overadvance (whether before or after the occurrence of a Default), each Lender with a Revolving
Loan Commitment shall be deemed, without further action by any party hereto, to have unconditionally and irrevocably purchased
from Agent, without recourse or warranty, an undivided interest and participation in such Protective Advance or Overadvance, as
applicable, in proportion to its Pro Rata Share of the Revolving Loan Commitment. Agent may, at any time, require the applicable
Lenders to fund their participations. From and after the date, if any, on which any Lender is required to fund its participation
in any Protective Advance or Overadvance, as applicable, purchased hereunder, Agent shall promptly distribute to such Lender, such
Lender's Pro Rata Share of all payments of principal and interest and all proceeds of Collateral received by such Agent in respect
of such Loan. Each Lender acknowledges and agrees that (i) Agent may elect to fund a Protective Advance or Overadvance through
one or more of its Affiliates (including Encina Business Credit SPV, LLC) on behalf of Agent for administrative convenience and
(ii) any such funding shall constitute a Protective Advance or Overadvance, as applicable, as if made by Agent subject to the terms
and conditions of this Agreement.

 

2.3. Notice of Borrowing; Manner of Revolving Loan Borrowing.

 

(a) Borrower
Representative shall request each Revolving Loan by submitting such request by ABLSoft (or, if requested by Agent, by delivering,
in writing or by an Approved Electronic Communication, a Notice of Borrowing substantially in the form of Exhibit A hereto) (each
such request a "Notice of Borrowing"). Subject to the terms and conditions of this Agreement, Agent shall,
except as provided in Section 2.2, deliver the amount of the Revolving Loan requested in the Notice of Borrowing for credit to
any account of Borrower as Borrower Representative may specify at a bank acceptable to Agent (provided, that
such account must be one identified on Section 3 of the Perfection Certificate and approved by Agent as an account to be used for
funding of Loan proceeds) (any such account, a "Funding Account") by wire transfer of immediately available
funds (i) on the same day if the Notice of Borrowing is received by Agent on or before 11:00 a.m. Central Time on a Business
Day or (ii) on the immediately following Business Day if the Notice of Borrowing is received by Agent after 11:00 a.m. Central
Time on a Business Day or on a day that is not a Business Day. Agent shall charge to the Revolving Loan Agent's usual and customary
fees for the wire transfer of each Loan.

 

    	 	30	 

     

    

 

(b) Promptly
following receipt of a Notice of Borrowing in accordance with this Section, Agent shall advise each Lender of the details thereof
and of the amount of such Lender's Revolving Loan to be made as part of the requested borrowing. Each Lender shall make each Revolving
Loan to be made by such Lender hereunder on the proposed date thereof by wire transfer of immediately available funds by 2:00 p.m.,
Central Time, to the account of Agent most recently designated by it for such purpose by notice to the Lenders in an amount equal
to such Lender's Pro Rata Share. Unless Agent shall have received notice from a Lender prior to the proposed date of any borrowing
that such Lender will not make available to Agent such Lender's share of such borrowing, Agent may assume that such Lender has
made (or will make) such share available on such date in accordance with this Section and may, in reliance upon such assumption,
make available to Borrowers a corresponding amount. In such event, if a Lender has not in fact made its share of the applicable
borrowing available to Agent, then the applicable Lender and Borrowers severally agree to pay to Agent forthwith on demand such
corresponding amount with interest thereon, for each day from and including the date such amount is made available to Borrowers
to but excluding the date of payment to Agent, at the interest rate applicable to such Revolving Loans. If such Lender pays such
amount to Agent, then such amount shall constitute such Lender's Revolving Loan included in such borrowing.

 

2.4. Swingline Loans.

 

(a) Agent,
Swingline Lender and the Lenders agree that in order to facilitate the administration of this Agreement and the other Loan
Documents, promptly after Borrower Representative requests a Revolving Loan, the Swingline Lender may elect to have the terms
of this Section 2.4 apply to such borrowing request by advancing, on behalf of the Lenders with a Revolving Loan Commitment
and in the amount requested, same day funds to Borrowers (each such Loan made solely by the Swingline Lender pursuant to this
Section 2.4 is referred to in this Agreement as a "Swingline Loan"), with settlement among them as to
the Swingline Loans to take place on a periodic basis as set forth in Section 2.4(c). Each Borrower hereby authorizes the
Swingline Lender to, and Swingline Lender shall, subject to the terms and conditions set forth herein (but without any
further written notice required), deliver the amount of the Swingline Loan requested to the applicable Funding Account (i) on
the same day if the Notice of Borrowing is received by Agent on or before 11:00 a.m. Central Time on a Business Day or (ii)
on the immediately following Business Day if the Notice of Borrowing is received by Agent after 11:00 p.m. Central Time on a
Business Day or on a day that is not a Business Day. The aggregate amount of Swingline Loans outstanding at any time shall
not exceed $2,000,000. Swingline Lender shall not make any Swingline Loan if the requested Swingline Loan exceeds Excess
Availability (before giving effect to such Swingline Loan).

 

(b) Upon the
making of a Swingline Loan (whether before or after the occurrence of a Default and regardless of whether a Settlement has been
requested with respect to such Swingline Loan), each Lender with a Revolving Commitment shall be deemed, without further action
by any party hereto, to have unconditionally and irrevocably purchased from the Swingline Lender, without recourse or warranty,
an undivided interest and participation in such Swingline Loan in proportion to its Pro Rata Share of the Revolving Commitment.
The Swingline Lender may, at any time, require the applicable Lenders to fund their participations. From and after the date, if
any, on which any Lender is required to fund its participation in any Swingline Loan purchased hereunder, Agent shall promptly
distribute to such Lender, such Lender's Pro Rata Share of all payments of principal and interest and all proceeds of Collateral
received by such Agent in respect of such Loan.

  

    	 	31	 

     

    

 

(c) Agent, on behalf of
Swingline Lender, shall request settlement (a "Settlement") with respect to Swingline Loans with the
Lenders holding a Revolving Commitment on at least a weekly basis or on any date that Agent elects, by notifying the
applicable Lenders of such requested Settlement by facsimile, telephone, or e-mail no later than 12:00 p.m. Central Time on
the date of such requested Settlement (the "Settlement Date"). Each applicable Lender (other than the
Swingline Lender) shall transfer the amount of such Lender's Pro Rata Share of the outstanding principal amount of the
Swingline Loan with respect to which Settlement is requested to Agent, to such account of Agent as Agent may designate, not
later than 2:00 p.m., Central Time, on such Settlement Date. Settlements may occur during the existence of an event of
Default and whether or not the applicable conditions precedent set forth in Section 4.2 have then been satisfied. Such
amounts transferred to Agent shall be applied against the amounts of the Swingline Lender's Swingline Loans and, together
with such Swingline Lender's Pro Rata Share of such Swingline Loan, shall constitute Revolving Loans of such Lenders,
respectively. If any such amount is not transferred to Agent by any applicable Lender on such Settlement Date, the Swingline
Lender shall be entitled to recover such amount on demand from such Lender together with interest thereon.

 

2.5. Repayments.

 

(a) Revolving
Loans.  If at any time for any reason whatsoever (including as a result of currency fluctuations) (i) the outstanding balance
of all Revolving Loans exceeds the lesser of (x) the Maximum Revolving Facility Amount minus the amount of Reserves established
against the Maximum Revolving Facility Amount and (y) the Borrowing Base or (ii) any of the Loan Limits for Revolving Loans are
exceeded, then, in each case, Borrowers will immediately pay to Agent such amounts as shall cause Borrowers to eliminate such
excess.

 

(b) Reserved.

 

(c) Maturity
Date Payments. All remaining outstanding monetary Obligations (including, all accrued and unpaid fees described in Section
3.2) shall be payable in full on the Maturity Date.

 

2.6. Prepayments / Voluntary
Termination / Application of Prepayments.

 

(a)  Reserved

 

(b)  Reserved

 

(c)  Reserved.

 

(d)  Voluntary
Termination of Loan Facilities. Borrower Representative may, on at least thirty days prior written notice received by Agent,
permanently terminate the Loan facilities by repaying all of the outstanding Obligations, including all principal, interest and
fees with respect to the Revolving Loans, and an Early Payment/Termination Premium in the amount specified in Section 3.2(e).
From and after such date of termination, Agent shall have no obligation whatsoever to extend any additional Loans, and all of
its lending commitments hereunder shall be terminated.

 

(e)  Reserved.

 

2.7. Obligations Unconditional.

 

(a) The
payment and performance of all Obligations shall constitute the absolute and unconditional obligations of each Loan Party
Obligor, and shall be independent of any defense or right of set-off, recoupment or counterclaim that any Loan Party Obligor
or any other Person might otherwise have against Agent, any Lender or any other Person. All payments required by this
Agreement or the other Loan Documents shall be made in Dollars (unless payment in a different currency is expressly provided
otherwise in the applicable Loan Document) and paid free of any deductions or withholdings for any taxes or other amounts and
without abatement, diminution or set-off. If any Loan Party Obligor
is required by applicable law to make such a deduction or withholding from a payment under this Agreement or under any other Loan
Document, such Loan Party Obligor shall pay to Agent such additional amount as shall be necessary to ensure that, after the making
of such deduction or withholding, Agent receives (free from any liability in respect of any such deduction or withholding) a net
sum equal to the sum which it would have received and so retained had no such deduction or withholding been made or required to
be made. Each Loan Party Obligor shall (a) pay the full amount of any deduction or withholding that it is required to make by law,
to the relevant authority within the payment period set by applicable law and (b) promptly after any such payment, deliver to Agent
an original (or certified copy) official receipt issued by the relevant authority in respect of the amount withheld or deducted
or, if the relevant authority does not issue such official receipts, such other evidence of payment of the amount withheld or deducted
as is reasonably acceptable to Agent.

 

    	 	32	 

     

    

 

 

(b) If, at
any time and from time to time after the Closing Date (or at any time before or after the Closing Date with respect to the Dodd-Frank
Wall Street Reform and Consumer Protection Act and all requests, rules, regulations, guidelines or directives thereunder or issued
in connection therewith), (a) any change in any existing law, regulation, treaty or directive or in the interpretation or application
thereof, (b) any new law, regulation, treaty or directive enacted or application thereof or (c) compliance by Agent with any request
or directive (whether or not having the force of law) from any Governmental Authority, central bank or comparable agency (i) subjects
Agent or any Lender to any tax, levy, impost, deduction, assessment, charge or withholding of any kind whatsoever with respect
to any Loan Document, or changes the basis of taxation of payments to Agent or any Lender of any amount payable thereunder (except
for net income taxes, or franchise taxes imposed in lieu of net income taxes, imposed generally by federal, state, provincial,
local or other taxing authorities with respect to interest or fees payable hereunder or under any other Loan Document or changes
in the rate of tax on the overall net income of Agent, any Lender or their respective members) or (ii) imposes, modifies or deems
applicable any reserve (including any reserve imposed by the FRB, but excluding any reserve included in the determination of the
LIBOR Rate), special deposit or similar requirement against assets of, deposits with or for the account of, or credit extended
by Agent or any Lender or imposes on Agent or any Lender any other condition affecting its LIBOR Loans or its obligation to make
LIBOR Loans, the result of which is to increase the cost to (or to impose a cost on) Agent or any Lender of making or maintaining
any LIBOR Loan or (iii) imposes on Agent or any Lender any other condition or increased cost in connection with the transactions
contemplated thereby or participations therein, and the result of any of the foregoing is to increase the cost to Agent or any
Lender of making or continuing any Loan or to reduce any amount receivable hereunder or under any other Loan Documents, then, in
each such case, Borrowers shall promptly pay to Agent or such Lender, when notified to do so by Agent or such Lender, any additional
amounts necessary to compensate Agent or such Lender, on an after-tax basis, for such additional cost or reduced amount as determined
by Agent or such Lender. Each such notice of additional amounts payable pursuant to this Section 2.7(b) submitted by Agent or any
Lender, as applicable, to Borrower Representative shall, absent manifest error, be final, conclusive and binding for all purposes.

 

(c) This Section
2.7 shall remain operative even after the Termination Date and shall survive the payment in full of all of the Loans.

 

2.8.
Reversal of Payments. To the extent that any payment or payments made to or received by Agent or any Lender pursuant to this
Agreement or any other Loan Document are subsequently invalidated, declared to be fraudulent or preferential, set aside or required
to be repaid to any trustee, receiver or other Person under any state, federal or other bankruptcy or other such applicable law,
then, to the extent thereof, such amounts (and all Liens, rights and remedies relating thereto) shall be revived as Obligations
(secured by all such Liens) and continue in full force and effect under this Agreement and under the other Loan Documents as if
such payment or payments had not been received by Agent or such Lender. This Section 2.8 shall
remain operative even after the Termination Date and shall survive the payment in full of all of the Loans.

 

    	 	33	 

     

    

 

2.9. Notes.
The Loans and Commitments shall, at the request of any Lender, be evidenced by one or more promissory notes in form and substance
reasonably satisfactory to such Lender. However, if such Loans are not so evidenced, such Loans may be evidenced solely by entries
upon the books and records maintained by Agent.

 

2.10.
Defaulting Lenders. Notwithstanding any provision of this Agreement to the contrary, if any Lender becomes a Defaulting Lender,
the following provisions shall apply for so long as such Lender is a Defaulting Lender:

 

(a) Unused
Line Fees pursuant to Section 3.2(c) shall cease to accrue on the unfunded portion of the Revolving Commitment of such Defaulting
Lender.

 

(b) Any amount
payable to a Defaulting Lender hereunder (whether on account of principal, interest, fees or otherwise) shall, in lieu of being
distributed to such Defaulting Lender, be retained by Agent in a segregated account and, subject to any applicable requirements
of law, be applied at such time or times as may be determined by Agent (i) first, to the payment of any amounts owing by such Defaulting
Lender to Agent hereunder, (ii) second, to the funding of any Revolving Loan in respect of which such Defaulting Lender has failed
to fund its portion thereof as required by this Agreement, as determined by Agent, (iii) third, if so determined by Agent and Borrowers,
held in such account as cash collateral for future funding obligations of the Defaulting Lender under this Agreement, (iv) fourth,
pro rata, to the payment of any amounts owing to Borrowers or the Lenders as a result of any judgment of a court of competent jurisdiction
obtained by Borrowers or any Lender against such Defaulting Lender as a result of such Defaulting Lender's breach of its obligations
under this Agreement, and (v) fifth, to such Defaulting Lender or as otherwise directed by a court of competent jurisdiction; provided,
that if such payment is made at a time when the conditions set forth in Section 4.2 are satisfied, such payment shall be applied
solely to prepay the Loans of all Revolving Lenders that are not Defaulting Lenders pro rata prior to being applied to the prepayment
of any Loans, or reimbursement obligations owed to, any Defaulting Lender.

 

(c) No Defaulting
Lender shall have any right to approve or disapprove any amendment, waiver, consent or any other action the Lenders or the Required
Lenders have taken or may take hereunder, provided that any waiver, amendment or modification requiring the consent of all Lenders
or each directly affected Lender which affects such Defaulting Lender differently than other affected Lenders shall require the
consent of such Defaulting Lender.

 

2.11. Appointment of Borrower Representative.

 

(a)
 Each Borrower hereby irrevocably appoints and constitutes Borrower Representative as its agent and attorney-in-fact to
request and receive Loans in the name or on behalf of such Borrower and any other Borrowers, deliver Notices of Borrowing, and
Borrowing Base Certificates, give instructions with respect to the disbursement of the proceeds of the Loans, giving and receiving
all other notices and consents hereunder or under any of the other Loan Documents and taking all other actions (including in respect
of compliance with covenants) in the name or on behalf of any Borrower or Borrowers pursuant to this Agreement and the other Loan
Documents. Lender may disburse the Loans to such bank account of Borrower Representative or a Borrower or otherwise make such Loans
to a Borrower, in each case as Borrower Representative may designate or direct, without notice to any other Borrower. Notwithstanding
anything to the contrary contained herein, Lender 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.

 

    	 	34	 

     

    

 

(b) Borrower
Representative hereby accepts the appointment by Borrowers to act as the agent and attorney-in-fact of Borrowers pursuant to this
Section 2.9. Borrower Representative shall ensure that the disbursement of any Loans that are at any time requested by or to be
remitted to or for the account of a Borrower requested on behalf of a Borrower hereunder, shall be remitted or issued to or for
the account of such Borrower.

 

(c) Each Borrower
hereby irrevocably appoints and constitutes Borrower Representative as its agent to receive statements on account and all other
notices from Lender with respect to the Obligations or otherwise under or in connection with this Agreement and the other Loan
Documents.

 

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

 

(e) No resignation
by or termination of the appointment of Borrower Representative as agent and attorney-in-fact as aforesaid shall be effective,
except after ten (10) Business Days’ prior written notice to Lender. If the Borrower Representative resigns under this Agreement,
Borrowers shall be entitled to appoint a successor Borrower Representative (which shall be a Borrower and shall be reasonably acceptable
to Lender as such successor). Upon the acceptance of its appointment as successor Borrower Representative hereunder, such successor
Borrower Representative shall succeed to all the rights, powers and duties of the retiring Borrower Representative and the term
 “Borrower Representative” shall mean such successor Borrower Representative for all purposes of this Agreement and
the other Loan Documents, and the retiring or terminated Borrower Representative’s appointment, powers and duties as Borrower
Representative shall be thereupon terminated.

 

2.12. Joint and Several Liability

 

(b) Joint
and Several. Each Borrower hereby agrees that such Borrower is jointly and severally liable for the full and prompt payment
(whether at stated maturity, by acceleration or otherwise) and performance of, all Obligations owed or hereafter owing to Agent
and Lenders by each other Borrower. Each Borrower agrees that its obligation hereunder shall not be discharged until payment and
performance, in full, of the Obligations has occurred, and that its obligations under this Section 2.12 shall be absolute and unconditional,
irrespective of, and unaffected by,

 

(i) the genuineness,
validity, regularity, enforceability or any future amendment of, or change in, this Agreement, any other Loan Document or any other
agreement, document or instrument to which any Borrower is or may become a party;

 

(ii) the absence
of any action to enforce this Agreement (including this Section 2.12) or any other Loan Document or the waiver or consent by Agent
or any Lender with respect to any of the provisions thereof;

 

(iii) the existence,
value or condition of, or failure to perfect Agent's Lien against, any security for the Obligations or any action, or the absence
of any action, by Agent in respect thereof (including the release of any such security);

 

(iv) the
insolvency of any Loan Party or Other Obligor; or

 

    	 	35	 

     

    

 

(v) any other
action or circumstances that might otherwise constitute a legal or equitable discharge or defense of a surety or guarantor.

 

(c) Waivers
by Borrowers. Each Borrower expressly waives all rights it may have now or in the future under any statute, or at common law,
or at law or in equity, or otherwise, to compel Agent to marshal assets or to proceed in respect of the Obligations against any
other Loan Party or Other Obligor, any other party or against any security for the payment and performance of the Obligations before
proceeding against, or as a condition to proceeding against, such Borrower. It is agreed among each Borrower, Agent and Lenders
that the foregoing waivers are of the essence of the transaction contemplated by this Agreement and the other Loan Documents and
that, but for the provisions of this Section 2.12 and such waivers, Agent and Lenders would decline to enter into this Agreement.

 

(d) Benefit
of Joint and Several Obligations. Each Borrower agrees that the provisions of this Section 2.12 are for the benefit of Agent
and Lenders and their successors, transferees, endorsees and assigns, and nothing herein contained shall impair, as between any
other Borrower, Agent and any Lender, the obligations of such other Borrower under the Loan Documents.

 

(e) Subordination
of Subrogation, Etc. Notwithstanding anything to the contrary in this Agreement or in any other Loan Document, each Borrower
hereby expressly and irrevocably subordinates to payment of the Obligations any and all rights at law or in equity to subrogation,
reimbursement, exoneration, contribution, indemnification or set off and any and all defenses available to a surety, guarantor
or accommodation co-obligor with respect to any other Loan Party or any Other Obligor until the Obligations are indefeasibly paid
in full in cash. Each Borrower acknowledges and agrees that this subordination is intended to benefit Agent and Lenders and shall
not limit or otherwise affect such Borrower's liability hereunder or the enforceability of this Section 2.12, and that Agent and
Lenders and their successors and assigns are intended third party beneficiaries of the waivers and agreements set forth in this
Section 2.12(d).

 

(f) Election
of Remedies. If Agent may, under applicable law, proceed to realize its benefits under any of the Loan Documents giving Agent
a Lien upon any Collateral, whether owned by any Borrower or by any other Person, either by judicial foreclosure or by non-judicial
sale or enforcement, Agent may, at its sole option, determine which of its remedies or rights it may pursue without affecting any
of its rights and remedies under this Section 2.12. If, in the exercise of any of its rights and remedies, Agent shall forfeit
any of its rights or remedies, including its right to enter a deficiency judgment against any Borrower or any other Person, whether
because of any applicable laws pertaining to "election of remedies" or the like, each Borrower hereby consents to such
action by Agent and waives any claim based upon such action, even if such action by Agent shall result in a full or partial loss
of any rights of subrogation that each Borrower might otherwise have had but for such action by Agent.

 

(g)       Contribution
with Respect to Guaranty Obligations.

 

(i) To the
extent that any Borrower shall make a payment under this Section 2.12 of all or any of the Obligations (other than Loans made to
that Borrower for which it is primarily liable) (a "Guarantor Payment") that, taking into account all other
Guarantor Payments then previously or concurrently made by any other Borrower, exceeds the amount that such Borrower would otherwise
have paid if each Borrower had paid the aggregate Obligations satisfied by such Guarantor Payment in the same proportion that such
Borrower's "Allocable Amount" (as defined below) (as determined immediately prior to such Guarantor Payment) bore to
the aggregate Allocable Amounts of each of the Borrowers as determined immediately prior to the making of such Guarantor Payment,
then, following indefeasible payment in full in cash of the Obligations and termination of the Commitments, such Borrower shall
be entitled to receive contribution and indemnification payments from, and be reimbursed by, each other Borrower for the amount
of such excess, pro rata based upon their respective Allocable Amounts in effect immediately prior to such Guarantor Payment.

 

    	 	36	 

     

    

 

(ii) As of
any date of determination, the "Allocable Amount" of any Borrower shall be equal to the maximum amount
of the claim that could then be recovered from such Borrower under this Section 2.12 without rendering such claim voidable or avoidable
under Section 548 of Chapter 11 of the Bankruptcy Code or under any applicable state Uniform Fraudulent Transfer Act, Uniform Fraudulent
Conveyance Act or similar statute or common law.

 

(iii) This Section
2.12(f) is intended only to define the relative rights of Borrowers and nothing set forth in this Section 2.12(f) is intended to
or shall impair the obligations of Borrowers, jointly and severally, to pay any amounts as and when the same shall become due and
payable in accordance with the terms of this Agreement, including Section 2.12(a). Nothing contained in this Section 2.12(f) shall
limit the liability of any Borrower to pay the Loans made directly or indirectly to that Borrower and accrued interest, fees and
expenses with respect thereto for which such Borrower shall be primarily liable.

 

(iv) The parties
hereto acknowledge that the rights of contribution and indemnification hereunder shall constitute assets of each Borrower to which
such contribution and indemnification is owing.

 

(v) The rights
of the indemnifying Borrowers against other Loan Parties under this Section 2.12(f) shall be exercisable upon the full and indefeasible
payment of the Obligations and the termination of the Commitments.

 

(h) Liability
Cumulative. The liability of Borrowers under this Section 2.12 is in addition to and shall be cumulative with all liabilities
of each Borrower to Agent and Lenders under this Agreement and the other Loan Documents to which such Borrower is a party or in
respect of any Obligations or obligation of the other Borrower, without any limitation as to amount, unless the instrument or agreement
evidencing or creating such other liability specifically provides to the contrary.

 

3.       INTEREST AND
FEES; LOAN ACCOUNT.

 

3.1.
Interest. All Loans and other monetary Obligations shall bear interest at the interest rate(s) set forth in Section 3 of Annex
I, and accrued interest shall be payable (a) on the first day of each month in arrears, (b) upon a prepayment of Loan in accordance
with Section 2.6 and (c) on the Maturity Date; provided, that after the occurrence and during the continuation of
an Event of Default and upon written demand by Agent (excluding an Event of Default under Section 11.1(g) or (h)), all Loans and
other monetary Obligations shall bear interest at a rate per annum equal to two (2) percentage points (2.00%) in excess of the
rate otherwise applicable thereto (the "Default Rate"), and all such interest shall be payable on demand.
Changes in the interest rate shall be effective as of the first day of each month based on the LIBOR Rate or Base Rate, as applicable,
in effect on such date. Subject to Section 3.6 and so long as no Event of Default shall have occurred and be continuing, all Loans
shall constitute LIBOR Loans. Upon the occurrence and during the continuance of an Event of Default, at the election of Agent or
Required Lenders, all Loans shall constitute Base Rate Loans.

  

    	 	37	 

     

    

 

3.2.
Fees. Borrowers shall pay Agent the following fees on the dates provided therefor, which fees are in addition to all fees
and other sums payable by Borrowers or any other Person to Agent under this Agreement or under any other Loan Document and, in
each case, are not refundable once paid:

 

(a) Closing
Fee. A fee, for the ratable benefit of the Lenders, equal to $495,000 (the "Closing Fee"),
which shall be deemed to be fully earned and payable as of the Closing Date.

 

(b) Monthly
Administration Fee. A monthly fee, for the sole benefit of Agent, equal to $3,000 (the "Monthly Administration
Fee") for each month, or part thereof prior to the Termination Date. The Monthly Administration Fee shall payable
monthly in advance due and on the first day of each month following the Closing Date.

 

(c) Unused
Line Fee.  An unused line fee (the "Unused Line Fee"), for the ratable benefit of the Lenders, equal
to one half of one percent (0.50%) per annum of the amount by which (i) the Maximum Revolving Facility Amount, calculated without
giving effect to any Reserves or the Availability Block applied to the Maximum Revolving Facility Amount, exceeds (ii) the average
daily outstanding principal balance of the Revolving Loans during the immediately preceding month (or part thereof), which fee
shall be deemed to be fully earned and payable, in arrears, on the first day of each month until the Termination Date.

 

(d) Reserved.

 

(e) Early
Payment/Termination Premium.  In the event that, for any reason (including as a result of any voluntary or mandatory prepayment
of the Loans, any acceleration of the Loans resulting from an Event of Default, any foreclosure and sale of Collateral, or any
sale of Collateral in any bankruptcy or insolvency proceeding), all or any portion of the Lenders' commitment to make Revolving
Loans is terminated prior to the Scheduled Maturity Date, in each case pursuant to Section 2.6(d), Section 11.2 or otherwise,
then in each such case, in addition to the payment of the principal amount and all unpaid accrued interest and other amounts due
thereon, Borrowers immediately shall be required to pay to Agent, for the ratable benefit of the Lenders, a premium (each, an "Early
Payment/Termination Premium") (as liquidated damages and compensation for the cost of the Lenders being prepared to
make funds available under this Agreement with respect to such Loans during the scheduled term of this Agreement) in an amount
equal to the Applicable Percentage (as defined below) of the amount of any such Revolving Loan commitment termination, as applicable.
In each such case, the "Applicable Percentage" shall be (A) two percent (2.0%), if such event occurs on
or before the first anniversary of the Closing Date, or (B) one percent (1.0%) if such event occurs after the first anniversary
of the Closing Date, but on or before the second anniversary of the Closing Date, or (C) zero percent (0.0%) if after the second
anniversary of the Closing Date. Each Borrower acknowledges and agrees that (x) the provisions of this paragraph shall remain in
full force and effect notwithstanding any rescission by Agent of an acceleration with respect to all or any portion of the Obligations
pursuant to Section 11.2 or otherwise, (y) payment of any Early Payment/Termination Premium under this paragraph constitutes liquidated
damages and not a penalty and (z) the actual amount of damages to Lenders or profits lost by Lenders as a result of such early
payment or termination would be impracticable and extremely difficult to ascertain, and the Early Payment/Termination Premium under
this paragraph is provided by mutual agreement of Borrowers and Lenders as a reasonable estimation and calculation of such lost
profits or damages of Borrowers and Lenders..

 

3.3. Computation of Interest and Fees.

 

(a)  All interest
and fees shall be calculated daily on the outstanding monetary Obligations based on the actual number of days elapsed in a
year of 360 days.

 

(b) For the
purposes of the Interest Act (Canada), as amended, and disclosure under such act, whenever interest to be paid under this Agreement
is to be calculated on the basis of a year of 365 or 366 days or any other period of time that is less than a calendar year, the
yearly rate of interest to which the rate determined
pursuant to such calculation is equivalent is the rate so determined multiplied by the actual number of days in the calendar year
in which the same is to be ascertained and divided by either 365 or 366 or such other period of time, as the case may be.

 

    	 	38	 

     

    

 

3.4.
Loan Account; Monthly Accountings. Agent shall maintain a loan account for Borrowers reflecting all outstanding Loans, along
with interest accrued thereon and such other items reflected therein (the "Loan Account"), and shall provide
Borrower Representative with a monthly accounting reflecting the activity in the Loan Account, viewable by Borrowers on ABLSoft.
Each accounting shall be deemed correct, accurate and binding on Borrowers and an account stated (except for reverses and reapplications
of payments made and corrections of errors discovered by Agent), unless Borrower Representative notifies Agent in writing to the
contrary within thirty days after such account is rendered, describing the nature of any alleged errors or omissions. However,
Agent's failure to maintain the Loan Account or to provide any such accounting shall not affect the legality or binding nature
of any of the Obligations. Interest, fees and other monetary Obligations due and owing under this Agreement may, in Agent's discretion,
be charged to the Loan Account, and will thereafter be deemed to be Revolving Loans and will bear interest at the same rate as
other Revolving Loans.

 

3.5. Further
Obligations; Maximum Lawful Rate. With respect to all monetary Obligations for which the interest rate is not otherwise specified
herein (whether such Obligations arise hereunder or under any other Loan Document, or otherwise), such Obligations shall bear interest
at the rate(s) in effect from time to time with respect to the Revolving Loans and shall be payable upon demand by Agent. In no
event shall the interest charged with respect to any Loan or any other Obligation exceed the maximum amount permitted under applicable
law. Notwithstanding anything to the contrary herein or elsewhere, if at any time the rate of interest payable or other amounts
hereunder or under any other Loan Document (the "Stated Rate") would exceed the highest rate of interest
or other amount permitted under any applicable law to be charged (the "Maximum Lawful Rate"), then for
so long as the Maximum Lawful Rate would be so exceeded, the rate of interest and other amounts payable shall be equal to the Maximum
Lawful Rate; provided, that if at any time thereafter the Stated Rate is less than the Maximum Lawful Rate, Borrowers
shall, to the extent permitted by applicable law, continue to pay interest and such other amounts at the Maximum Lawful Rate until
such time as the total interest and other such amounts received is equal to the total interest and other such amounts which would
have been received had the Stated Rate been (but for the operation of this provision) the interest rate payable or such other amounts
payable. Thereafter, the interest rate and such other amounts payable shall be the Stated Rate unless and until the Stated Rate
again would exceed the Maximum Lawful Rate, in which event this provision shall again apply. In no event shall the total interest
or other such amounts received by Agent exceed the amount which it could lawfully have received had the interest and other such
amounts been calculated for the full term hereof at the Maximum Lawful Rate. If, notwithstanding the prior sentence, Agent has
received interest or other such amounts hereunder in excess of the Maximum Lawful Rate, such excess amount shall be applied to
the reduction of the principal balance of the Loans or to other Obligations (other than interest) payable hereunder, and if no
such principal or other Obligations are then outstanding, such excess or part thereof remaining shall be paid to Borrowers. In
computing interest payable with reference to the Maximum Lawful Rate applicable to any Lender, such interest shall be calculated
at a daily rate equal to the Maximum Lawful Rate divided by the number of days in the year in which such calculation is made.

 

3.6. Certain Provisions Regarding LIBOR Loans; Replacement
of Lenders.

 

(a) Inadequate
or Unfair Basis. If Agent or any Lender reasonably determines (which determination shall be binding and conclusive on Borrowers)
that, by reason of circumstances affecting the interbank Eurodollar market, adequate and reasonable means do not exist for ascertaining
the applicable LIBOR Rate, then Agent or such Lender shall promptly notify Borrower Representative (and Agent, if applicable) thereof
and, so long as such circumstances shall continue, (i) Agent and/or such Lender shall be under no obligation to make any LIBOR
Loans and (ii) on the last day of the current calendar month, each LIBOR Loan shall, unless then repaid in full, automatically
convert to a Base Rate Loan.

 

    	 	39	 

     

    

 

(b) Change
in Law. If any change in, or the adoption of any new, law, treaty or regulation, or any change in the interpretation of any
applicable law or regulation by any Governmental Authority charged with the administration thereof, would make it (or in the good
faith judgment of Agent or the applicable Lender cause a substantial question as to whether it is) unlawful for Agent or such Lender
to make, maintain or fund LIBOR Loans, then Agent or such Lender shall promptly notify Borrower Representative and, so long as
such circumstances shall continue, (i) Agent or such Lender shall have no obligation to make any LIBOR Loan and (ii) on the last
day of the current calendar month for each LIBOR Loan (or, in any event, on such earlier date as may be required by the relevant
law, regulation or interpretation), such LIBOR Loan shall, unless then repaid in full, automatically convert to a Base Rate Loan.

 

(c) If any Borrower
becomes obligated to pay additional amounts to any Lender pursuant to Section 2.7(b), or any Lender gives notice of the occurrence
of any circumstances described in Section 2.7(b), or if Lender becomes a Defaulting Lender, Borrowers may designate another Person
engaged in the making of commercial loans in the ordinary course of business which is acceptable to Agent in its sole discretion
(such other Person being called a "Replacement Lender") to purchase the Loans and Commitments of such Lender
and such Lender's rights hereunder, without recourse to or warranty by, or expense to, such Lender, for a purchase price equal
to the outstanding principal amount of the Loans payable to such Lender plus any accrued but unpaid interest on such Loans and
all accrued but unpaid fees owed to such Lender and any other amounts payable to such Lender under this Agreement, and to assume
all the obligations of such Lender hereunder, and, upon such purchase and assumption (pursuant to an Assignment and Assumption),
such Lender shall no longer be a party hereto or have any rights hereunder (other than rights with respect to indemnities and similar
rights applicable to such Lender prior to the date of such purchase and assumption) and shall be relieved from all obligations
to Borrowers hereunder, and the Replacement Lender shall succeed to the rights and obligations of such Lender hereunder.

 

(d) LIBOR
Discontinuation. Notwithstanding anything contained herein to the contrary, if Agent reasonably determines after the Closing
Date that the LIBOR Rate has been discontinued or is no longer available as a benchmark interest rate, Agent shall select a comparable
successor rate in its reasonable discretion (in consultation with the Borrowers), which successor rate shall be applied in a manner
consistent with market practice taking into account the benchmark interest rates applicable to funding sources for the Lenders,
and will promptly so notify each Lender.

 

4.  CONDITIONS PRECEDENT.

 

4.1. Conditions to Initial Loans.

 

Each Lender's
obligation to fund the initial Loans under this Agreement is subject to the following conditions precedent (as well as any other
conditions set forth in this Agreement or any other Loan Document), all of which must be satisfied in a manner acceptable to Agent
(and as applicable, pursuant to documentation which in each case is in form and substance acceptable to Agent):

 

(a) each Loan
Party Obligor shall have duly executed and/or delivered, or, as applicable, shall have caused such other applicable Persons to
have duly executed and or delivered, to Agent such agreements, instruments, documents, proxies, financial statements, projections,
lien searches, legal opinions, title
insurances, assessments, appraisals, and certificates as Agent may require, including such other agreements, instruments, documents,
proxies, financial statements, projections, lien searches, legal opinions, title insurance, assessments, appraisals, and certificates
listed on the closing checklist attached hereto as Exhibit B;

 

    	 	40	 

     

    

 

(b) Agent shall
have completed its business and legal due diligence pertaining to the Loan Parties and their respective businesses and assets,
with results thereof satisfactory to Agent in its sole discretion;

 

(c) each Lender's
obligations and commitments under this Agreement shall have been approved by such Lender's Credit Committee;

 

(d) after
giving effect to such Loans, as well as to the payment of all trade payables older than sixty days past due and the consummation
of all transactions contemplated hereby to occur on the Closing Date, closing costs and any book overdraft, Excess Availability
shall be no less than $2,000,000;

 

(e) since December
31, 2018, no event shall have occurred which has had, or could reasonably be expected to have, a Material Adverse Effect on any
Loan Party;

 

(f) Borrowers
shall have paid to Agent all fees due on the date hereof, and shall have paid or reimbursed Agent for all of Agent's costs, charges
and expenses incurred through the Closing Date (and in connection herewith, Borrowers hereby irrevocably authorizes Agent to charge
such fees, costs, charges and expenses as Revolving Loans);

 

(g) the HHG Note shall have
been funded; and

 

(h) Agent shall
have received PDFs of the following that shall have been delivered to the Term Loan Agent: (i) original stock certificates or other
certificates evidencing the Pledged Equity pledged pursuant to the Security Documents (as defined in the Term Loan Documents),
together with an undated stock (or equivalent) power for each such certificate duly executed in blank by the registered owner thereof
and (ii) each original promissory note pledged pursuant to the Security Documents (as defined in the Term Loan Documents), if any,
together with an undated endorsement for each such promissory note duly executed in blank by the holder thereof.

 

4.2. Conditions to all Loans.
No Lender shall be obligated to fund any Loans, unless the following conditions are satisfied:

 

(a) Borrower
Representative shall have provided to Agent such information as Agent may require in order to determine the Borrowing Base
(including the items set forth in Section 7.15(a), (b) and (c) (as applicable)), as of such borrowing or issue date, after
giving effect to such Loans;

 

(b) each of the
representations and warranties set forth in this Agreement and in the other Loan Documents shall be true and correct in all respects
as of the date such Loan is made (or, to the extent any representations or warranties are expressly made solely as of an earlier
date, such representations and warranties shall be true and correct as of such earlier date), both before and after giving effect
thereto;

 

(c) no Default
or Event of Default shall be in existence, both before and after giving effect thereto; and

 

    	 	41	 

     

    

 

(d) no event
shall have occurred or circumstance shall exist that has or could reasonably be expected to have a Material Adverse Effect.

 

Each request
(or deemed request) by Borrowers for funding of a Loan shall constitute a representation by each Borrower that the foregoing conditions
are satisfied on the date of such request and on the date of such funding or issuance. As an additional condition to any funding,
issuance or grant, Agent shall have received such other information, documents, instruments and agreements as it deems appropriate
in connection therewith.

 

5. COLLATERAL.

 

5.1. Grant
of Security Interest. To secure the full payment and performance of all of the Obligations, each Loan Party Obligor hereby
assigns to Agent and grants to Agent, for itself and on behalf of the Lenders, a continuing security interest in all property of
each Loan Party Obligor, whether tangible or intangible, real or personal, now or hereafter owned, existing, acquired or arising
and wherever now or hereafter located, and whether or not eligible for lending purposes, including: (a) all Accounts (whether or
not Eligible Accounts) and all Goods whose sale, lease or other disposition by any Loan Party Obligor has given rise to Accounts
and have been returned to, or repossessed or stopped in transit by, any Loan Party Obligor; (b) all Chattel Paper (including Electronic
Chattel Paper), Instruments, Documents, and General Intangibles (including all patents, patent applications, trademarks, trademark
applications, trade names, trade secrets, goodwill, copyrights, copyright applications, registrations, licenses, software, franchises,
customer lists, tax refund claims, claims against carriers and shippers, guaranty claims, contracts rights, payment intangibles,
security interests, security deposits and rights to indemnification); (c) all Inventory (whether or not Eligible Inventory); (d)
all Goods (other than Inventory), including Equipment, vehicles, and Fixtures; (e) all Investment Property, including all rights,
privileges, authority, and powers of each Loan Party Obligor as an owner or as a holder of Pledged Equity, including all economic
rights, all control rights, authority and powers, and all status rights of each Loan Party Obligor as a member, equity holder or
shareholder, as applicable, of each Issuer and any rights related to any Loan Party Obligors' capital account within the Issuer
in respect of Investment Property; (f) all Deposit Accounts, bank accounts, deposits, money and cash; (g) all Letter-of-Credit
Rights; (h) all Commercial Tort Claims listed in Section 2 of the Perfection Certificate; (i) all Supporting Obligations; (j) all
life insurance policies; (k) all leases; (l) any other property of any Loan Party Obligor now or hereafter in the possession, custody
or control of Agent or any agent or any parent, Affiliate or Subsidiary of Agent, any Lender or any Participant with Lender in
the Loans, for any purpose (whether for safekeeping, deposit, collection, custody, pledge, transmission or otherwise); and (n)
all additions and accessions to, substitutions for, and replacements, products and Proceeds of the foregoing property, including
proceeds of all insurance policies insuring the foregoing property (including hazard, flood and credit insurance), and all of each
Loan Party Obligor's books and records relating to any of the foregoing and to any Loan Party's business.

 

5.2.
Possessory Collateral. Promptly, but in any event no later than five Business Days after any Loan Party Obligor's receipt of
any portion of the Collateral evidenced by an agreement, Instrument or Document that is ABL Priority Collateral, including any
Tangible Chattel Paper and any Investment Property consisting of certificated securities, such Loan Party Obligor shall deliver
the original thereof to Agent together with an appropriate endorsement or other specific evidence of assignment thereof to Agent
(in form and substance acceptable to Agent). If an endorsement or assignment of any such items shall not be made for any reason,
Agent is hereby irrevocably authorized, as attorney and agent-in-fact (coupled with an interest) for each Loan Party Obligor, to
endorse or assign the same on such Loan Party Obligor's behalf. To the extent that such Collateral is Term Loan Priority Collateral,
the Loan Party Obligor shall deliver copies of the Collateral delivered to the Term Loan Agent.

 

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5.3.
Further Assurances.  Each Loan Party Obligor shall, at its own cost and expense, promptly and duly take, execute, acknowledge
and deliver (or cause each other applicable Person to take, execute, acknowledge and deliver) all such further acts, documents,
agreements and instruments as may from time to time be necessary or desirable or as Agent may from time to time require in order
to (a) carry out the intent and purposes of the Loan Documents and the transactions contemplated thereby, (b) establish, create,
preserve, protect and perfect a first priority lien (subject only to Permitted Liens) in favor of Agent in all the ABL Priority
Collateral (wherever located) from time to time owned by the Loan Party Obligors and a second priority lien (subject only to Permitted
Liens) in favor of Agent in all capital stock and other equity from time to time issued by the Loan Parties (including appraisals
of real property in compliance with FIRREA), (c) cause each Subsidiary of any Borrower to guaranty all of the Obligations, all
pursuant to documentation that is in form and substance reasonably satisfactory to Agent and (d) facilitate the collection of the
Collateral. Without limiting the foregoing, each Loan Party Obligor shall, at its own cost and expense, promptly and duly take,
execute, acknowledge and deliver (or cause each other applicable Person to take, execute, acknowledge and deliver) to Agent all
promissory notes, security agreements, agreements with landlords, mortgagees and processors and other bailees, subordination and
intercreditor agreements and other agreements, instruments and documents, in each case in form and substance reasonably acceptable
to Agent, as Agent may request from time to time to perfect, protect and maintain Agent's security interests in the Collateral,
including the required priority thereof, and to fully carry out the transactions contemplated by the Loan Documents.

 

5.4. UCC
Financing Statements. Each Loan Party Obligor authorizes Agent to file, transmit or communicate, as applicable, from time to
time, Financing Statements under the UCC and/or PPSA, along with amendments and modifications thereto, in all filing offices selected
by Agent, listing such Loan Party Obligor as the Debtor and Agent as the Secured Party, and describing the collateral covered thereby
in such manner as Agent may elect, including using descriptions such as "all personal property of debtor" or "all
assets of debtor," or words of similar effect, in each case without such Loan Party Obligor's signature. Each Loan Party Obligor
also hereby ratifies its authorization for Agent to have filed, in any filing office, any Financing Statements filed prior to the
date hereof.

 

5.5.
Excluded Property. Notwithstanding anything in Section 5.1 or any other provision of this Agreement or any other Loan Document,
the “Collateral” shall exclude any Excluded Property; provided, if and when any Property shall cease to be Excluded
Property, such Property shall be deemed, at all times from and after such date and so long as such Property of the type set forth
in clauses (a) through (n) of Section 5.1 does not at any time thereafter become an Excluded Property, to constitute Collateral.
For the avoidance of doubt, Excluded Property shall not include any proceeds, products, substitutions or replacements of Excluded
Property (unless such proceeds, products, substitutions or replacements would otherwise constitute Excluded Property).

 

6. CERTAIN
PROVISIONS REGARDING ACCOUNTS, INVENTORY, COLLECTIONS AND APPLICATIONS OF PAYMENTS. Until the Termination Date:

 

6.1.
Lock Boxes and Blocked Accounts. Each Loan Party Obligor hereby represents and warrants that all Deposit Accounts and all other
depositary and other accounts maintained by each Loan Party Obligor as of the Closing Date are described in Section 3 of the Perfection
Certificate, which description includes for each such account the name of the Loan Party Obligor maintaining the account, the name
of the financial institution at which the account is maintained, the account number and the purpose of the account. Within 45 days
after the Closing Date, Section 3 of the Perfection Certificate shall be updated to reflect the new accounts and the existing accounts
shall be closed. After the Closing Date, no Loan Party Obligor shall open any new Deposit Account or any other depositary or other
account without the prior written consent of Agent and without updating Section 3 of the Perfection Certificate to reflect
such Deposit Account or other account. No Deposit Account or other account of any Loan Party Obligor shall at any time constitute
a Restricted Account other than accounts expressly indicated on Section 3 of the Perfection Certificate as being Restricted Accounts
(and each Loan Party Obligor hereby represents and warrants that each such account shall at all times meet the requirements set
forth in the definition of Restricted Account to qualify as a Restricted Account). Each Loan Party Obligor will, at its expense,
establish (and revise from time to time as Agent may require) procedures acceptable to Agent, in Agent's sole discretion, for the
collection of checks, wire transfers and all other proceeds of all of such Loan Party Obligor's Accounts and other Collateral ("Collections"),
which shall include (a) directing all Account Debtors to send all Account proceeds directly to a post office box designated by
Agent either in the name of such Loan Party Obligor (but as to which Agent has exclusive access) or, at Agent's option, in the
name of Agent (a "Lock Box") and (b) depositing all Collections received by such Loan Party Obligor into
one or more bank accounts maintained in the name of such Loan Party Obligor (but as to which Agent has exclusive access) or, at
Agent's option, in the name of Agent (each, a "Blocked Account"), under an arrangement acceptable to Agent
with a depository bank acceptable to Agent, pursuant to which all funds deposited into each Blocked Account are to be transferred
to Agent in such manner, and with such frequency, as Agent shall specify, and/or (c) a combination of the foregoing. Each Loan
Party Obligor agrees to execute, and to cause its depository banks and other account holders to execute, such Lock Box and Blocked
Account control agreements and other documentation as Agent shall require from time to time in connection with the foregoing, all
in form and substance acceptable to Agent, and in any event such arrangements and documents must be in place on the date hereof
with respect to accounts in existence on the date hereof, or prior to any such account being opened with respect to any such account
opened after the date hereof, in each case excluding Restricted Accounts. Prior to the Closing Date, Borrowers shall deliver to
Agent a complete and executed Authorized Accounts form regarding each Borrower's operating account(s) into which the proceeds of
Loans are to be paid in the form of Exhibit D annexed hereto.

 

    	 	43	 

     

    

  

6.2. Application
of Payments. All amounts paid to or received by Agent in respect of monetary Obligations, from whatever source (whether from
any Borrower or any other Loan Party Obligor pursuant to such other Loan Party Obligor's guaranty of the Obligations, any realization
upon any Collateral or otherwise) shall be applied by Agent to the Obligations in such order as Agent may elect, and absent such
election shall be applied as follows:

 

(i) FIRST,
to reimburse Agent for all out-of-pocket costs and expenses, and all indemnified losses, incurred by Agent which are reimbursable
to Agent in accordance with this Agreement or any of the other Loan Documents;

 

(ii) SECOND,
to any accrued but unpaid interest on any Protective Advances;

 

(iii) THIRD, to the
outstanding principal of any Protective Advances;

 

(iv) FOURTH, to any accrued but unpaid fees owing
to Agent and Lenders under this Agreement and/or any other Loan Documents;

 

(v) FIFTH, to any unpaid accrued interest
on the Obligations; (vi) SIXTH, to the outstanding principal of the Loans; and

 

(vii) SEVENTH, to the payment of any other outstanding
Obligations; and after payment in full in cash of all of the outstanding monetary Obligations, any further amounts paid to or received by Agent
in respect of the Obligations (so long as no monetary Obligations are outstanding) shall be paid over to Borrowers or such other
Person(s) as may be legally entitled thereto.

 

    	 	44	 

     

    

 

For purposes of determining
the Borrowing Base, such amounts will be credited to the Loan Account and the Collateral balances to which they relate upon Agent's
receipt of an advice from Agent's Bank (set forth in Section 5 of Annex I) that such items have been credited to Agent's account
at Agent's Bank (or upon Agent's deposit thereof at Agent's Bank in the case of payments received by Agent in kind), in each case
subject to final payment and collection. However, for purposes of computing interest on the Obligations, such items shall be deemed
applied by Agent three Business Days after Agent 's receipt of advice of deposit thereof at Agent's Bank.

 

6.3. Notification;
Verification. Agent or its designee may, from time to time: (a) whether or not a Default or Event of Default has occurred and
is continuing, verify directly with the Account Debtors of the Loan Party Obligors (or by any manner and through any medium Agent
considers advisable) the validity, amount and other matters relating to the Accounts and Chattel Paper of the Loan Party Obligors,
by means of mail, telephone or otherwise, either in the name of the applicable Loan Party Obligor or Agent or such other name as
Agent may choose (provided, however, that no Default or Event of Default has occurred or is continuing, Agent shall consult with
Borrower Representative on the method of such verification); (b) whether or not a Default or Event of Default has occurred, notify
Account Debtors of the Loan Party Obligors that Agent has a security interest in the Accounts of the Loan Party Obligors and direct
such Account Debtors to make payment thereof directly to Agent; each such notification to be sent on the letterhead of such Loan
Party Obligor and substantially in the form of Exhibit E annexed hereto; and (c) following the occurrence and during the continuance
of a Default or Event of Default, demand, collect or enforce payment of any Accounts and Chattel Paper (but without any duty to
do so) and, in furtherance of the foregoing, each Loan Party Obligor hereby authorizes Account Debtors to make payments directly
to Agent and to rely on notice from Agent without further inquiry. Agent may on behalf of each Loan Party Obligor endorse all items
of payment received by Agent that are payable to such Loan Party Obligor for the purposes described above.

 

6.4. Power of Attorney.

 

Without
limiting any of Agent's and the other Lenders' other rights under this Agreement or any other Loan Document, each Loan Party Obligor
hereby grants to Agent an irrevocable power of attorney, coupled with an interest, authorizing and permitting Agent (acting through
any of its officers, employees, attorneys or agents), at Agent's option but without obligation, with or without notice to such
Loan Party Obligor, and at each Loan Party Obligor's expense, to do any or all of the following, in such Loan Party Obligor's name
or otherwise:

 

(a) at any
time, whether or not an Event of Default has occurred or is continuing, (i) execute on behalf of such Loan Party Obligor any documents
that Agent may, in its sole discretion, deem advisable in order to perfect, protect and maintain Agent's security interests, and
priority thereof, in the Collateral and to fully consummate all the transactions contemplated by this Agreement and the other Loan
Documents (including such Financing Statements and continuation Financing Statements, and amendments or other modifications thereto,
as Agent shall deem necessary or appropriate) and to notify Account Debtors of the Loan Party Obligors in the manner contemplated
by Section 6.3, (ii) endorse such Loan Party Obligor's name on all checks and other forms of remittances received by Agent, (iii)
pay any sums required on account of such Loan Party Obligor's taxes or to secure the release of any Liens therefor, (iv) pay any
amounts necessary to obtain, or maintain in effect, any of the insurance described in Section 7.14, (v) receive and otherwise take
control in any manner of any cash or non-cash items of payment or Proceeds of Collateral, (vi) receive and open all mail addressed
to such Loan Party Obligor at any post office box or lockbox maintained by Agent for such Loan Party Obligor or at any other business
premises of Agent and (vii) endorse or assign to Agent on such Loan Party Obligor's behalf any portion of Collateral evidenced
by an agreement, Instrument or Document if an endorsement or assignment of any such items is not made by such Loan Party Obligor
pursuant to Section 5.2; and

 

    	 	45	 

     

    

 

(b) at any
time, after the occurrence and during the continuance of an Event of Default, (i) execute on behalf of such Loan Party Obligor
any document exercising, transferring or assigning any option to purchase, sell or otherwise dispose of or lease (as lessor or
lessee) any real or personal property which is ABL Priority Collateral, (ii) execute on behalf of such Loan Party Obligor any invoices
relating to any Accounts, any draft against any Account Debtor, any proof of claim in bankruptcy, any notice of Lien or claim,
and any assignment or satisfaction of mechanic's, materialman's or other Lien, (iii) execute on behalf of such Loan Party Obligor
any notice to any Account Debtor, (iv) pay, contest or settle any Lien, charge, encumbrance, security interest and adverse claim
in or to any of the Collateral, or any judgment based thereon, or otherwise take any action to terminate or discharge the same,
(v) grant extensions of time to pay, compromise claims relating to, and settle Accounts, Chattel Paper and General Intangibles
for less than face value and execute all releases and other documents in connection therewith, (vi) settle and adjust, and give
releases of, any insurance claim that relates to any of the ABL Priority Collateral and obtain payment therefor, (vii) instruct
any third party having custody or control of any ABL Priority Collateral or books or records belonging to, or relating to, such
Loan Party Obligor to give Agent the same rights of access and other rights with respect thereto as Agent has under this Agreement
or any other Loan Document, (viii) change the address for delivery of such Loan Party Obligor's mail, and (ix) vote any right or
interest with respect to any Investment Property (if it is the Control Agent), and (x) instruct any Account Debtor to make all
payments due to any Loan Party Obligor directly to Agent.

 

Any and all sums paid, and any
and all costs, expenses, liabilities, obligations and reasonable attorneys' fees (internal and external counsel) of Agent with
respect to the foregoing shall be added to and become part of the Obligations, shall be payable on demand, and shall bear interest
at a rate equal to the highest interest rate applicable to any of the Obligations. Each Loan Party Obligor agrees that Agent's
rights under the foregoing power of attorney and any of Agent's other rights under this Agreement or the other Loan Documents shall
not be construed to indicate that Agent or any Lender is in control of the business, management or properties of any Loan Party
Obligor.

 

6.5. Disputes.
Each Loan Party Obligor shall promptly notify Agent of all disputes or claims relating to its Accounts and Chattel Paper in each
case in excess of $100,000. Each Loan Party Obligor agrees that it will not, without Agent's prior written consent, compromise
or settle any of its Accounts or Chattel Paper for less than the full amount thereof, grant any extension of time for payment of
any of its Accounts or Chattel Paper, release (in whole or in part) any Account Debtor or other person liable for the payment of
any of its Accounts or Chattel Paper or grant any credits, discounts, allowances, deductions, return authorizations or the like
with respect to any of its Accounts or Chattel Paper; except (unless otherwise directed by Agent during the existence of a Default
or an Event of Default) such Loan Party Obligor may take any of such actions in the Ordinary Course of Business consistent with
past practices.

 

6.6.
Invoices. Within a reasonable time following Agent's request, each Loan Party Obligor will cause all invoices and statements
that it sends to Account Debtors or other third parties to be marked and authenticated, in a manner reasonably satisfactory to
Agent, to reflect Agent's security interest therein and payment instructions (including, but not limited to, in a manner to meet
the requirements of Section 9-404(a)(2) of the UCC or, in the case of the Canadian Borrowers, the PPSA, as applicable).

 

    	 	46	 

     

    

 

6.7. Inventory.

 

(a) Returns.
 No Loan Party Obligor will accept returns of any Inventory from any Account Debtor except in the Ordinary Course of Business.
In the event the value of returned Inventory in any one calendar month exceeds $500,000 (collectively for all Loan Party Obligors),
Borrower Representative will immediately notify Agent (which notice shall specify the value of all such returned Inventory, the
reasons for such returns, and the locations and the condition of such returned Inventory).

 

(b) Third
Party Locations.  No Loan Party Obligor will, without Agent's prior written consent, at any time, store any Inventory with
any warehouseman or other third party other than (i) as set forth in Section 1(d) of the Perfection Certificate, (ii) Permitted
Asset Dispositions, (iii) at other locations in the United States or Canada, upon 30 Business Days’ prior written notice
to Agent (and Section 1(d) of the Perfection Certificate will be updated to reflect such location), (iv) transport Collateral to
trade shows or other industry expositions for marketing purposes in the Ordinary Course of Business, (v) send Equipment to repair
facilities in the Ordinary Course of Business, and (iv) allow employees to utilize Collateral at remote locations in the Ordinary
Course of Business.

 

(c) Sale
on Return, etc.  No Loan Party Obligor will, without Agent's prior written consent, at any time, sell any Inventory on a sale-or-return,
guarantied sale, consignment, or other contingent basis.

 

(d) Fair Labor
Standards Act.  Each Loan Party Obligor represents, warrants and covenants that, at all times, all of the Inventory of each
Loan Party Obligor has been, at all times will be, produced only in accordance with the Fair Labor Standards Act of 1938 and all
rules, regulations and orders promulgated thereunder.

 

(e) Eligibility.
 As of each date reported by any Borrower, all Inventory which such Borrower has then reported to Agent as then being Eligible
Inventory comply in all respects with the criteria for eligibility set forth in the definition of Eligible Inventory.

 

7.       REPRESENTATIONS,
WARRANTIES AND AFFIRMATIVE COVENANTS. To induce Agent and the Lenders to enter into this Agreement, each Loan Party
Obligor represents, warrants and covenants as follows (it being understood and agreed that (a) each such representation and
warranty (i) will be made as of the date hereof and be deemed remade as of each date on which any Loan is made (except to the
extent any such representation or warranty expressly relates only to any earlier or specified date, in which case such
representation or warranty will be made as of such earlier or specified date) and (ii) shall not be affected by any knowledge
of, or any investigation by, Agent or any Lender and (b) each such covenant shall continuously apply with respect to all
times commencing on the date hereof and continuing until the Termination Date):

 

7.1. Existence
and Authority. Each Loan Party is duly organized, validly existing and in good standing under the laws of its jurisdiction
of organization (which jurisdiction is identified in Section 1(a) of the Perfection Certificate) and is qualified to do business
in each jurisdiction in which the failure to be qualified would have a Material Adverse Effect. Each Loan Party has all requisite
power and authority to own and operate its properties, to carry on its business as now conducted and as proposed to be conducted,
to enter into the Loan Documents to which it is a party and to carry out the transactions contemplated thereby. The execution,
delivery and performance by each Loan Party Obligor of this Agreement and all of the other Loan Documents to which such Loan Party
Obligor is a party have been duly and validly authorized, do not violate such Loan Party Obligor's Governing Documents or any law
or any material agreement or instrument or any court order which is binding upon any Loan Party or its property,
do not constitute grounds for acceleration of any Indebtedness or obligation under any material agreement or instrument which is
binding upon any Loan Party or its property, and do not require the consent of any Person. Each Loan Party Obligor shall preserve
and maintain all of its leases, licenses, permits, franchises qualifications, and rights except where the failure to so maintain
would be reasonably likely to have a Material Adverse Effect. No Loan Party is required to obtain any government approval, consent,
or authorization from, or to file any declaration or statement with, any Governmental Authority in connection with or as a condition
to the execution, delivery or performance of any of the Loan Documents. This Agreement and each of the other Loan Documents have
been duly executed and delivered by, and are enforceable against, each of the Loan Party Obligors who have signed them, in accordance
with their respective terms. Section 1(f) of the Perfection Certificate sets forth the ownership of each Borrower and its Subsidiaries.

 

    	 	47	 

     

    

 

7.2.
Names; Trade Names and Styles. The name of each Loan Party Obligor set forth on Section 1(b) of the Perfection Certificate
is its correct and complete legal name as of the date hereof, and no Loan Party Obligor has used any other name at any time in
the past five years, or at any time will use any other name, in any tax filing made in any jurisdiction. Listed in Section 1(b)
of the Perfection Certificate are all prior names used by each Loan Party Obligor at any time in the past five years and all of
the present and prior trade names used by any Loan Party Obligor at any time in the past five years. Borrower Representative shall
give Agent at least thirty days' prior written notice (and will deliver an updated Section 1(b) of the Perfection Certificate to
reflect the same) before it or any other Loan Party Obligor changes its legal name or does business under any other name.

 

7.3.
Title to Collateral; Third Party Locations; Permitted Liens. Each Loan Party Obligor has, and at all times will continue to
have, good and marketable title to all of the Collateral. The Collateral now is, and at all times will remain, free and clear of
any and all Liens, except for Permitted Liens. Agent now has, and will at all times continue to have, a first-priority perfected
and enforceable security interest in all of the ABL Priority Collateral, subject only to the Permitted Liens, and each Loan Party
Obligor will at all times defend Agent and the ABL Priority Collateral against all claims of others. Agent now has, and will at
all times continue to have, a second-priority perfected and enforceable security interest in all of the Collateral not constituting
ABL Priority Collateral, subject only to the Permitted Liens, and each Loan Party Obligor will at all times defend Agent and such
Collateral against all claims of others. Except for leases or subleases as to which Borrowers have delivered to Agent a landlord's
waiver in form and substance reasonably satisfactory to Agent (unless waived by Agent in its sole discretion; provided,
that such waiver may be conditioned upon Agent establishing a rent or other similar Reserve satisfactory to Agent in its sole discretion),
no Loan Party Obligor is or will be a lessee or sublessee under any real property lease or sublease. Except for warehouses as to
which Borrowers have delivered to Agent a warehouseman's waiver in form and substance reasonably satisfactory to Agent (unless
waived by Agent in its sole discretion; provided, that such waiver may be conditioned upon Agent establishing a rent
or other similar Reserve satisfactory to Agent in its sole discretion), no Loan Party Obligor is or will at any time be a bailor
of any Goods at any warehouse or otherwise. Except as provided in Section 6.7(b), prior to causing or permitting any Collateral
to at any time be located upon premises in which any third party (including any landlord, warehouseman, or otherwise) has an interest,
Borrower Representative shall notify Agent and the applicable Loan Party Obligor shall cause each such third party to execute and
deliver to Agent, in form and substance reasonably acceptable to Agent, such waivers, collateral access agreements, and subordinations
as Agent shall specify, so as to, among other things, ensure that Agent's rights in the Collateral are, and will at all times continue
to be, superior to the rights of any such third party and that Agent has access to such Collateral. Each applicable Loan Party
Obligor will keep at all times in full force and effect, and will comply at all times with all the terms of, any lease of real
property where any of the Collateral now or in the future may be located.

 

    	 	48	 

     

    

 

7.4.
Accounts and Chattel Paper. As of each date reported by Borrowers, all Accounts which any Borrower has then reported to Agent
as then being Eligible Accounts comply in all respects with the criteria for eligibility set forth in the definition of Eligible
Accounts. All such Accounts, and all Chattel Paper owned by any Loan Party Obligor, are genuine and in all respects what they purport
to be, arise out of a completed, bona fide and unconditional and non-contingent sale and delivery of goods or rendition of services
by a Borrower in the Ordinary Course of Business and in accordance with the terms and conditions of all purchase orders, contracts
or other documents relating thereto, each Account Debtor thereunder had the capacity to contract at the time any contract or other
document giving rise to such Accounts and Chattel Paper were executed, and the transactions giving rise to such Accounts and Chattel
Paper comply with all applicable laws and governmental rules and regulations.

 

7.5.
Electronic Chattel Paper. To the extent that any Loan Party Obligor obtains or maintains any Electronic Chattel Paper, such
Loan Party Obligor shall at all times create, store and assign the record or records comprising the Electronic Chattel Paper in
such a manner that (a) a single authoritative copy of the record or records exists which is unique, identifiable and except as
otherwise provided below, unalterable, (b) the authoritative copy identifies Agent as the assignee of the record or records, (c)
the authoritative copy is communicated to and maintained by Agent or its designated custodian, (d) copies or revisions that add
or change an identified assignee of the authoritative copy can only be made with the participation of Agent, (e) each copy of the
authoritative copy and any copy of a copy is readily identifiable as a copy that is not the authoritative copy and (f) any revision
of the authoritative copy is readily identifiable as an authorized or unauthorized revision.

 

7.6. Capitalization; Investment Property.

 

(a) No Loan Party,
directly or indirectly, owns, or shall at any time own, any capital stock or other equity interests of any other Person except
as set forth in Sections 1(f) and 1(g) of the Perfection Certificate, which Sections list all Investment Property owned by each
Loan Party Obligor.

 

(b) None of the
Pledged Equity has been issued or otherwise transferred in violation of the Securities Act, or other applicable laws of any jurisdiction
to which such issuance or transfer may be subject. The Pledged Equity pledged by each Loan Party Obligor hereunder constitutes
all of the issued and outstanding equity interests of each Issuer owned by such Loan Party Obligor, other than to the extent such
Pledged Equity is a controlled foreign corporation in which case such Pledged Equity constitutes 65% of the issued and outstanding
equity interests of such Issuer.

 

(c) All of
the Pledged Equity has been duly and validly issued and is fully paid and non-assessable, and the holders thereof are not entitled
to any preemptive, first refusal or other similar rights. There are no outstanding options, warrants or similar agreements, documents,
or instruments with respect to any of the Pledged Equity except in favor of the Term Loan Agent.

 

(d) Each Loan
Party Obligor has caused each Issuer to amend or otherwise modify its Governing Documents, books, records, and related agreements,
documents and instruments, as applicable, to reflect the rights and interests of the Term Loan Agent, and to the extent required
to enable and empower Term Loan Agent to exercise and enforce its rights and remedies hereunder in respect of the Pledged Equity
and other Investment Property.

 

(e) Each Loan
Party Obligor will take any and all actions required or requested by Agent, from time to time, to (i) cause Agent to obtain exclusive
control of any Investment Property that is ABL Priority Collateral in a manner reasonably acceptable to Agent and (ii) obtain from
any Issuers and such other Persons as Agent shall specify, for the benefit of Agent, written confirmation of Agent's exclusive
control over such Investment Property that is ABL Priority Collateral and take such other actions as Agent may
request to perfect Agent's security interest in any Investment Property that is ABL Priority Collateral. For purposes of this Section
7.6, Term Loan Agent shall have exclusive control of Investment Property if (A) pursuant to Section 5.2, such Investment Property
consists of certificated securities and the applicable Loan Party Obligor delivers such certificated securities to Term Loan Agent
(with all appropriate endorsements), (B) such Investment Property consists of uncertificated securities and either (x) the applicable
Loan Party Obligor delivers such uncertificated securities to Term Loan Agent or (y) the Issuer thereof agrees, pursuant to documentation
in form and substance reasonably satisfactory to Term Loan Agent, that it will comply with instructions originated by Term Loan
Agent without further consent by the applicable Loan Party Obligor and (C) such Investment Property consists of security entitlements
and either (x) Term Loan Agent becomes the entitlement holder thereof or (y) the appropriate securities intermediary agrees, pursuant
to documentation in form and substance reasonably satisfactory to Term Loan Agent, that it will comply with entitlement orders
originated by Term Loan Agent without further consent by the applicable Loan Party Obligor. Each Loan Party Obligor that is a limited
liability company or a partnership hereby represents and warrants that it has not elected, and at no time will, elect pursuant
to the provisions of Section 8-103 of the UCC to provide that its equity interests are securities governed by Article 8 of the
UCC or make a similar election under the laws of any other jurisdiction.

 

    	 	49	 

     

    

 

(f) No Loan
Party owns, or has any present intention of acquiring, any "margin security" or any "margin
stock" within the meaning of Regulations T, U or X of the Board of Governors of the Federal Reserve System (herein
called "margin security" and "margin stock"). None of the proceeds of the Loans
will be used, directly or indirectly, for the purpose of purchasing or carrying, or for the purpose of reducing or retiring any
Indebtedness which was originally incurred to purchase or carry, any margin security or margin stock or for any other purpose which
might constitute the transactions contemplated hereby a "purpose credit" within the meaning of said Regulations
T, U or X, or cause this Agreement to violate any other regulation of the Board of Governors of the Federal Reserve System or the
Exchange Act, or any rules or regulations promulgated under such statutes.

 

(g) No Loan Party
Obligor shall vote to enable, or take any other action to cause or to permit, any Issuer to issue any equity interests of any nature,
or to issue any other securities or interests convertible into or granting the right to purchase or exchange for any equity interests
of any nature of any Issuer.

 

(h) No Loan Party
Obligor shall take, or fail to take, any action that would in any manner impair the value or the enforceability of Term Loan Agent's
Lien on any of the Investment Property, or any of Term Loan Agent's rights or remedies under this Term Loan Documents with respect
to any of the Investment Property.

 

(i) In the
case of any Loan Party Obligor which is an Issuer, such Issuer agrees that the terms of Section 11.3(g)(iii) shall apply to such
Loan Party Obligor with respect to all actions that may be required of it pursuant to such Section 11.3(g)(iii) regarding the Investment
Property issued by it.

 

(j) Each Loan
Party Obligor has made all capital contributions heretofore required to be made to the respective Issuer in respect of any Investment
Property constituting limited liability company interests and no additional capital contributions are required to be made in respect
of the respective limited liability company interests.

 

7.7. Commercial
Tort Claims. No Loan Party Obligor has any Commercial Tort Claims in excess of $100,000 pending other than those listed in
Section 2 of the Perfection Certificate, and each Loan Party Obligor shall promptly (but in any case, no later than five Business
Days thereafter) notify Agent in writing upon incurring or otherwise obtaining a Commercial Tort Claim after the date hereof against any third party.
Such notice shall constitute such Loan Party Obligor's authorization to amend such Section 2 to add such Commercial Tort Claim
and shall automatically be deemed to amend such Section 2 to include such Commercial Tort Claim.

 

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7.8.
Jurisdiction of Organization; Location of Collateral. Sections 1(c) and 1(d) of the Perfection Certificate set forth (a) each
place of business of each Loan Party Obligor (including its chief executive office), (b) all locations where all Inventory, Equipment,
and other Collateral owned by each Loan Party Obligor is kept and (c) whether each such Collateral location and place of business
(including each Loan Party Obligor's chief executive office) is owned by a Loan Party or leased (and if leased, specifies the complete
name and notice address of each lessor). Except as permitted by Section 6.7(b), no Collateral is located outside the United States
or Canada or in the possession of any lessor, bailee, warehouseman or consignee, except as expressly indicated in Sections 1(c)
and 1(d) of the Perfection Certificate. Each Loan Party Obligor will give Agent at least thirty (30) days' prior written notice
before changing its jurisdiction of organization, opening any additional place of business, changing its chief executive office
or the location of its books and records, or, subject to Section 6.7(b) moving any of the Collateral to a location other than one
of the locations set forth in Sections 1(c) and 1(d) of the Perfection Certificate, and will execute and deliver all Financing
Statements, landlord waivers, collateral access agreements, mortgages, and all other agreements, instruments and documents which
Agent shall require in connection therewith prior to making such change, all in form and substance reasonably satisfactory to Agent.
Without the prior written consent of Agent, no Loan Party Obligor will at any time (i) change its jurisdiction of organization
or (ii) allow any Collateral to be located outside of the continental United States of America or Canada.

 

7.9. Financial Statements and Reports; Solvency.

 

(a) All financial
statements delivered to Agent and Lenders by or on behalf of any Loan Party have been, and at all times will be, prepared in conformity
with GAAP and completely and fairly reflect the financial condition of each Loan Party covered thereby, at the times and for the
periods therein stated.

 

(b) As of
the date hereof (after giving effect to the Loans to be made on the date hereof, and the consummation of the transactions contemplated
hereby), and as of each other day that any Loan is made (after giving effect thereof), (i) the fair saleable value of all of the
assets and properties of each Loan Party, individually, exceeds the aggregate liabilities and Indebtedness of each such Loan Party
(including contingent liabilities), (ii) each Loan Party, individually, is solvent and able to pay its debts as they come due,
(iii) each Loan Party, individually, has sufficient capital to carry on its business as now conducted and as proposed to be conducted,
(iv) no Loan Party is contemplating either the liquidation of all or any substantial portion of its assets or property, or the
filing of any petition under any state, federal, or other bankruptcy or insolvency law and (v) no Loan Party has knowledge of any
Person contemplating the filing of any such petition against any Loan Party.

 

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7.10. Tax
Returns and Payments; Pension Contributions. Each Loan Party has filed all Canadian and U.S. federal, provincial, state and
material local and foreign tax returns and other reports that it is required by law to file, and has paid, or made provision for
the payment of, all Taxes upon it, its income and its Properties that are due and payable, except to the extent being Properly
Contested. The provision for Taxes on the books of each Obligor and Subsidiary is adequate for all years not closed by applicable
statutes, and for its current Fiscal Year. Each Plan is in compliance in all material respects with the applicable provisions
of ERISA, the Code and other applicable laws. Each Plan that is intended to be a qualified plan under Section 401(a) of the Code
has received a favorable determination letter or opinion letter from the Internal Revenue Service to the effect that the form
of such Plan is qualified under Section 401(a) of the Code and the trust related thereto has been determined by the Internal Revenue
Service to be exempt from federal income tax under Section 501(a) of the Code, or an application for such a letter is currently
being processed by the Internal Revenue Service. To the best knowledge of each Loan Party, nothing has occurred that would prevent
or cause the loss of such tax-qualified status. There are no pending or, to the best knowledge of any Loan Party, threatened claims,
actions or lawsuits, or action by any Governmental Authority, with respect to any Plan that could reasonably be expected to result
in liabilities individually or in the aggregate in excess of $250,000 of any Loan Party. There has been no prohibited transaction
or violation of the fiduciary responsibility rules with respect to any Plan that has resulted or could reasonably be expected
to result in liabilities individually or in the aggregate of any Loan Party in excess of $250,000. No ERISA Event has occurred,
and no Loan Party is aware of any fact, event or circumstance that could reasonably be expected to constitute or result in an
ERISA Event with respect to any Pension Plan, in each case that could reasonably be expected to result in liabilities individually
or in the aggregate in excess of $250,000. Each Loan Party and each ERISA Affiliate has met all applicable requirements under
the Pension Funding Rules in respect of each Pension Plan, and no waiver of the minimum funding standards under the Pension Funding
Rules has been applied for or obtained, in each case except as could not reasonably be expected to result in liabilities individually
or in the aggregate to the Loan Parties in excess of $250,000. As of the most recent valuation date for any Pension Plan, the
funding target attainment percentage (as defined in Section 430(d)(2) of the Code) is sixty (60%) or higher and no Loan Party
knows of any facts or circumstances that could reasonably be expected to cause the funding target attainment percentage for any
such plan to drop below sixty (60%) as of the most recent valuation date. No Loan Party or any ERISA Affiliate has incurred any
liability to the PBGC other than for the payment of premiums, and there are no premium payments which have become due that are
unpaid, except as could not reasonably be expected to result in liabilities individually or in the aggregate to the Loan Parties
in excess of $250,000. No Loan Party or any ERISA Affiliate has engaged in a transaction that could be subject to Section 4069
or Section 4212(c) of ERISA except as could not reasonably be expected to result in liabilities individually or in the aggregate
to the Loan Parties in excess of $250,000. No Pension Plan has been terminated by the plan administrator thereof or by the PBGC,
and no event or circumstance has occurred or exists that could reasonably be expected to cause the PBGC to institute proceedings
under Title IV of ERISA to terminate any Pension Plan, except as could not reasonably be expected to result in liabilities individually
or in the aggregate to the Loan Parties in excess of $250,000.

 

7.11. Compliance with Laws; Intellectual Property; Licenses.

 

(a) Each Loan
Party has complied, and will continue at all times to comply (a) in all material respects with applicable laws and regulations
governing the payment and withholding of Taxes, ERISA, safety and environmental matters, and (b) with other applicable laws and
regulations relating to the ownership of real or personal property, the conduct and licensing of each Loan Party's business and
other employee matters except where noncompliance could not reasonably be expected to have a Material Adverse Effect.

 

(b) No Loan Party
has received written notice of default or violation, or is in default or violation, with respect to any material judgment, order,
writ, injunction, decree, demand or assessment issued by any court or any federal, state, local, municipal or other Governmental
Authority relating to any aspect of any Loan Party's business, affairs, properties or assets. No Loan Party has received written
notice of or been charged with, or is, to the knowledge of any Loan Party, under investigation with respect to, any violation of
any material and applicable law.

 

(c) To the Loan
Parties’ knowledge, each Loan Party owns or has the lawful right to use all Intellectual Property necessary for the conduct
of its business, without conflict with any rights of others. There is no pending or, to any Loan Party’s knowledge, threatened
Intellectual Property Claim with respect to any Obligor, any Subsidiary or any of its Property (including any Intellectual Property).
Except as disclosed on Section 4 of the Perfection Certificate, no Loan Party pays or owes any Royalty or other compensation to
any Person with respect to any material Intellectual Property. All Intellectual Property that is licensed by or is subject to
a pending application or current registration that is owned by any Obligor or Subsidiary is shown on Section 4 of the Perfection
Certificate. To any Loan Party’s knowledge, there is no third party Intellectual Property licensed to a Loan Party that
is necessary for, or critical to, the manufacture, sale or distribution of any products or services of any Obligor, and no licensed
third party Intellectual Property is necessary for Agent to exercise its rights to enforce Agent’s Liens with respect to
the ABL Priority Collateral, including the right to dispose of it, in the event of an Event of Default.

 

    	 	52	 

     

    

 

(d) Each Loan
Party has and will continue at all times to have, all federal, state, provincial, local and other licenses and permits required
to be maintained in connection with such Loan Party's business operations, and all such licenses and permits are valid and in full
force and effect. Each Loan Party has, and will continue at all times to have, complied with the requirements of such licenses
and permits in all material respects, except where the failure to comply could not reasonably be expected to have a Material Adverse
Effect, and as of the Closing Date has received no written notice of any pending or threatened proceedings for the suspension,
termination, revocation or limitation thereof. No Loan Party is aware of any facts or conditions that could reasonably be expected
to cause or permit any of such licenses or permits to be voided, revoked or withdrawn.

 

7.12.
Litigation. Section 1(e) of the Perfection Certificate discloses all claims, proceedings, litigation or investigations pending
or (to the best of each Loan Party Obligor's knowledge) threatened against any Loan Party as of the Closing Date. There is no claim,
suit, litigation, proceeding or investigation pending or (to the best of each Loan Party Obligor's knowledge) threatened by or
against or affecting any Loan Party in any court or before any Governmental Authority (or any basis therefor known to any Loan
Party Obligor) which may result, either separately or in the aggregate, in liability in excess of $500,000 (to the extent not covered
by insurance) for the Loan Parties, in any Material Adverse Effect, or in any material impairment in the ability of any Loan Party
to carry on its business in substantially the same manner as it is now being conducted.

 

7.13. Use
of Proceeds. All proceeds of all Loans shall be used by Borrowers solely (a) with respect to Loans made on the Closing Date,
to repay in full its indebtedness owing to Bank of America, NA pursuant to the Existing ABL Agreement, (b) to pay the fees, costs,
and expenses incurred in connection with this Agreement, the other Loan Documents and the transactions contemplated hereby and
thereby, (c) for Borrowers’ working capital purposes and (d) for such other purposes as specifically permitted pursuant to
the terms of this Agreement. All proceeds of all Loans will be used solely for lawful business purposes.

 

7.14. Insurance.

 

(a) Each Loan
Party will at all times carry property, liability and other insurance, with insurers reasonably acceptable to Agent, in such form
and amounts, and with such deductibles and other provisions, as Agent shall reasonably require, but in any event, in such amounts
and against such risks as is usually carried by companies engaged in similar business and owning similar properties in the same
general areas in which such Loan Party operates, and each Borrower will provide Agent with evidence reasonably satisfactory to
Agent that such insurance is, at all times, in full force and effect. A true and complete listing of such insurance as of the Closing
Date, including issuers, coverages and deductibles, is set forth in Section 5 of the Perfection Certificate. Each property insurance
policy shall name Agent as lender loss payee and mortgagee, if applicable, and shall contain a lender's loss payable endorsement,
and a mortgage endorsement, if applicable, and each liability insurance policy shall name Agent as an additional insured, and each
business interruption insurance policy shall be collaterally assigned to Agent, all in form and substance reasonably satisfactory
to Agent. All policies of insurance shall provide that they may not be cancelled or changed without at least thirty (30) days' (or,
with respect to nonpayment of premiums, ten (10) days’) prior written notice to Agent, and shall otherwise be in form and
substance reasonably satisfactory to Agent. Borrower Representative shall advise Agent promptly of any policy cancellation, non-renewal,
reduction, or material amendment with respect to any insurance policies maintained by any Loan Party or any receipt by any Loan
Party of any notice from any insurance carrier regarding any intended or threatened cancellation, non-renewal, reduction or material
amendment of any of such policies, and Borrower Representative shall promptly deliver to Agent copies of all notices and related
documentation received by any Loan Party in connection with the same.

 

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(b) Borrower
Representative shall deliver to Agent no later than fifteen (15) days prior to the expiration of any then current insurance policies,
insurance certificates evidencing renewal of all such insurance policies required by this Section 7.14. Borrower Representative
shall deliver to Agent, upon Agent 's request, certificates evidencing such insurance coverage in such form as Agent shall specify.

 

(c) IF ANY
LOAN PARTY AT ANY TIME OR TIMES HEREAFTER SHALL FAIL TO OBTAIN OR MAINTAIN ANY OF THE POLICIES OF INSURANCE REQUIRED ABOVE (AND
PROVIDE EVIDENCE THEREOF TO AGENT) OR TO PAY ANY PREMIUM RELATING THERETO, THEN AGENT, WITHOUT WAIVING OR RELEASING ANY OBLIGATION
OR DEFAULT BY ANY BORROWER HEREUNDER, MAY (BUT SHALL BE UNDER NO OBLIGATION TO) OBTAIN AND MAINTAIN SUCH POLICIES OF INSURANCE
AND PAY SUCH PREMIUMS AND TAKE SUCH OTHER ACTIONS WITH RESPECT THERETO AS AGENT DEEMS ADVISABLE UPON NOTICE TO BORROWER REPRESENTATIVE.
SUCH INSURANCE, IF OBTAINED BY AGENT, MAY, BUT NEED NOT, PROTECT ANY LOAN PARTY'S INTERESTS OR PAY ANY CLAIM MADE BY OR AGAINST
ANY LOAN PARTY WITH RESPECT TO THE COLLATERAL. SUCH INSURANCE MAY BE MORE EXPENSIVE THAN THE COST OF INSURANCE ANY LOAN PARTY MAY
BE ABLE TO OBTAIN ON ITS OWN AND MAY BE CANCELLED ONLY UPON THE APPLICABLE LOAN PARTY PROVIDING EVIDENCE THAT IT HAS OBTAINED THE
INSURANCE AS REQUIRED ABOVE. ALL SUMS DISBURSED BY AGENT IN CONNECTION WITH ANY SUCH ACTIONS, INCLUDING COURT COSTS, EXPENSES,
OTHER CHARGES RELATING THERETO AND REASONABLE INTERNAL AND EXTERNAL ATTORNEY COSTS, SHALL CONSTITUTE LOANS HEREUNDER, SHALL BE
PAYABLE ON DEMAND BY BORROWERS TO AGENT AND, UNTIL PAID, SHALL BEAR INTEREST AT THE HIGHEST RATE THEN APPLICABLE TO LOANS HEREUNDER.

 

7.15. Financial,
Collateral and Other Reporting / Notices. Each Loan Party has kept, and will at all times keep, adequate records and books
of account with respect to its business activities and the Collateral in which proper entries are made in accordance with GAAP
reflecting all its financial transactions. The information provided in the Perfection Certificate is correct and complete in all
respects. Each Loan Party Obligor will cause to be prepared and furnished to Agent, in each case in a form and in such detail as
is acceptable to Agent the following items (the items to be provided under this Section 7.15 shall be delivered to Agent by posting
on ABLSoft or, if requested by Agent, by another form of Approved Electronic Communication or in writing):

 

(a) Annual
Financial Statements. Not later than one hundred twenty (120) days after the close of each Fiscal Year, unqualified, audited
consolidated financial statements of the Loan Parties as of the end of such Fiscal Year, including balance sheet, income statement,
and statement of cash flow for such Fiscal Year, in each case on a consolidated and consolidating basis, certified by a firm of
independent certified public accountants of recognized standing selected by Borrowers but acceptable to Agent, together with a
copy of any management letter issued in connection therewith. Concurrently with the delivery
of such financial statements, Borrower Representative shall deliver to Agent a Compliance Certificate, indicating whether (i) Borrowers
are in compliance with each of the covenants specified in Section 9, and setting forth a detailed calculation of such covenants
and (ii) any Default or Event of Default is then in existence;

 

    	 	54	 

     

    

 

(b) Interim
Financial Statements.  Not later than thirty (30) days after the end of each month hereafter, but within 45 days after the
last month of each Fiscal Year, unaudited consolidated and consolidating financial statements of the Loan Parties as of the end
of such month and of the portion of such Fiscal Year then elapsed, including balance sheet, income statement, statement of cash
flow, and results of their respective operations during such month and the then- elapsed portion of the Fiscal Year, together with
comparative figures for the same periods in the immediately preceding Fiscal Year and the corresponding figures from the budget
for the Fiscal Year covered by such financial statements, in each case on a consolidated and consolidating basis, certified by
the principal financial officer of Borrower Representative as prepared in accordance with GAAP and fairly presenting the consolidated
financial position and results of operations (including management discussion and analysis of such results) of each Loan Party
for such month and period subject only to changes from ordinary course year-end audit adjustments and except that such statements
need not contain footnotes. Concurrently with the delivery of such financial statements, Borrower Representative shall deliver
to Agent a Compliance Certificate, indicating whether (i) Borrowers are in compliance with each of the covenants specified in Section
9, and setting forth a detailed calculation of such covenants, and (ii) any Default or Event of Default is then in existence;

 

(c) Borrowing
Base / Collateral Reports / Insurance Certificates / Perfection Certificates / Other Items. The items described on Annex II
hereto by the respective dates set forth therein.

 

(d) Projections,
Etc.  Not later than thirty (30) days after the end of each Fiscal Year, monthly business projections for the following Fiscal
Year for the Loan Parties on a consolidated and consolidating basis, which projections shall include for each such period Borrowing
Base projections, profit and loss projections, balance sheet projections, income statement projections and cash flow projections;

 

(e) Shareholder
Reports, Etc.  Promptly after the sending or filing thereof, as the case may be, copies of any proxy statements, financial
statements or reports which each Loan Party has made available to its shareholders and copies of any regular, periodic and special
reports or registration statements which any Loan Party files with the Securities and Exchange Commission or any Governmental Authority
which may be substituted therefor, or any national securities exchange;

 

(f) ERISA
Reports.  Copies of any annual report to be filed pursuant to the requirements of ERISA in connection with each plan subject
thereto promptly upon request by Agent and in addition, each Loan Party shall promptly notify Agent upon having knowledge of any
ERISA Event; and

 

(g) Tax Returns.
 Each federal, state and provincial income tax return filed by any Loan Party or Other Obligor promptly (but in no event later
than ten days following the filing of such return), together with such supporting documentation as is supplied to the applicable
tax authority with such return and proof of payment of any amounts owing with respect to such return.

 

    	 	55	 

     

    

 

(h) Notification of
Certain Changes. Promptly (and in no case later than the earlier of (i) three Business Days after a Loan Party obtaining
knowledge the occurrence of any of the following and (ii) such other date that such information is required to be delivered
pursuant to this Agreement or any other Loan Document) notification to Agent in writing of (A) the occurrence of any Default
or Event of Default, (B) the occurrence of any event that has had, or may have, a Material Adverse Effect, (C) any change in
any Loan Party's officers or directors, (D) any investigation, action, suit, proceeding or claim (or any material development
with respect to any existing investigation, action, suit, proceeding or claim) relating to any Loan Party, any officer or
director of a Loan Party, the Collateral or which may result in a Material Adverse Effect, (E) any material loss or damage to
the Collateral, (F) any event or the existence of any circumstance that has resulted in, or could reasonably be expected to
result in, a Material Adverse Effect, any Default, or any Event of Default, or which would make any representation or
warranty previously made by any Loan Party to Agent untrue in any material respect or constitute a material breach if such
representation or warranty was then being made, (G) any actual or alleged breaches of any Material Contract or termination or
threat to terminate any Material Contract or any material amendment to or modification of a Material Contract, or the
execution of any new Material Contract by any Loan Party and (H) any change in any Loan Party's certified independent
accountant. In the event of each such notice under this Section 7.15(h), Borrower Representative shall give notice to Agent
of the action or actions that each Loan Party has taken, is taking, or proposes to take with respect to the event or events
giving rise to such notice obligation.

 

(i) Other
Information. Promptly upon request, such other data and information (financial and otherwise) as Agent, from time to time,
may reasonably request, bearing upon or related to the Collateral or each Loan Party's and each Other Obligor's business or financial
condition or results of operations.

 

(j) Notices
Under Material Contracts. Promptly upon any delivery to Loan Party or any of their Subsidiaries of any material notices under
any Material Contract, a written statement describing such event, with copies of such amendments, notices or new contracts, delivered
to Agent, and a description of any actions being taken pursuant thereto.

 

(k) Notices
Relating to Term Loan Facility. Promptly after any Loan Party Obligor knows or has reason to know that any Default or Event
of Default has occurred and is continuing, any “Default” or “Event of Default” under and as defined in
any Term Loan Documents has occurred and is continuing occurred, but in any event not later than five (5) Business Days after any
Loan Party Obligor becomes aware thereof, a notice from the Borrower Representative of such Default, Event of Default, “Default”,
 “Event of Default” describing the same in reasonable detail and a description of the action that the Loan Party Obligors
have taken and propose to take with respect thereto.

 

7.16. Litigation
Cooperation. Should any third-party suit, regulatory action, or any other judicial, administrative, or similar proceeding be
instituted by or against Agent or any Lender with respect to any Collateral or in any manner relating to any Loan Party, this Agreement,
any other Loan Document or the transactions contemplated hereby, each Loan Party Obligor shall, without expense to Agent or any
Lender, make available each Loan Party, such Loan Party's officers, employees and agents, and any Loan Party's books and records,
without charge, to the extent that Agent or such Lender may deem them reasonably necessary in order to prosecute or defend any
such suit or proceeding.

 

7.17.
Maintenance of Collateral, Etc. Each Loan Party Obligor will maintain all of the Collateral in good working condition, ordinary
wear and tear excepted, and no Loan Party Obligor will use the Collateral for any unlawful purpose.

 

7.18. Material
Contracts. No Loan Party is a party to a Material Contract except as set forth on Schedule 7.18. The Material Contracts listed
on Schedule 7.18 are in full force and effect and there are no events of thereunder or, to the knowledge of the Loan Parties, any
event which with notice or passage of time, or both, would constitute and event of default thereunder.

 

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7.19. No Default. No Default or Event of Default has
occurred and is continuing.

 

7.20.
No Material Adverse Change. Since December 31, 2018 there has been no material adverse change in the financial condition, business,
operations, or properties of any Loan Party or any Other Obligor.

 

7.21.
Full Disclosure. Excluding projections and other forward-looking information, pro forma financial information and information
of a general economic or industry nature, no report, notice, certificate, information or other statement delivered or made (including,
in electronic form) by or on behalf of any Loan Party, any Other Obligor or any of their respective Affiliates to Agent or Lender
in connection with this Agreement or any other Loan Document contains or will at any time contain any untrue statement of a material
fact, or omits or will at any time omit to state any material fact necessary to make any statements contained herein or therein
not misleading. Except for matters of a general economic or political nature which do not affect any Loan Party or any Other Obligor
uniquely, there is no fact presently known to any Loan Party Obligor which has not been disclosed to Agent, which has had or could
reasonably be expected to have, individually or in the aggregate, a Material Adverse Effect. Any projections and other forward-looking
information and pro forma financial information contained in such materials were prepared in good faith based upon assumptions
that were believed by such Loan Party to be reasonable at the time prepared and at the time furnished in light of conditions and
facts then known (it being recognized that such projections and other forward-looking information and pro forma financial information
are not to be viewed as facts and that actual results during the period or periods covered by any such projections or information
may differ from the projected results, and such differences may be material).

 

7.22. Sensitive
Payments. No Loan Party (a) has made or will at any time make any contributions, payments or gifts to or for the private use
of any governmental official, employee or agent where either the payment or the purpose of such contribution, payment or gift is
illegal under the applicable laws of the United States or the jurisdiction in which made or any other applicable jurisdiction,
(b) has established or maintained or will at any time establish or maintain any unrecorded fund or asset for any purpose or made
any false or artificial entries on its books, (c) has made or will at any time make any payments to any Person with the intention
that any part of such payment was to be used for any purpose other than that described in the documents supporting the payment
or (d) has engaged in or will at any time engage in any "trading with the enemy" or other transactions
violating any rules or regulations of the Office of Foreign Assets Control or any similar applicable laws, rules or regulations.

 

7.23. Holdings.
Holdings shall not: (a) engage in any activities other than acting as a holding company and transactions incidental thereto, maintaining
its corporate existence, and entering into and performing its obligations under the Loan Documents, the Term Loan Documents and
the HHG Note; (b) hold any assets other than (i) all of the issued and outstanding equity interests of any Borrower, (ii) contractual
rights pursuant to the Loan Documents, Term Loan Documents, and (iii) cash in an amount not to exceed the amount required for the
purpose of promptly paying general operating expenses (including audit fees, reasonable and customary director and officer compensation
and indemnification obligations pursuant to its Governing Documents); and (c) incur any liabilities other than under the Loan Documents,
under the Term Loan Documents and obligations incurred in the Ordinary Course of Business related to its existence, including Taxes,
franchise or other entity existence taxes and fees payable to its state of incorporation or organization, payment of reasonable
and customary director fees and expenses, and indemnification obligations pursuant to its Governing Documents.

 

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7.24. Term Loan Facility.

 

(a) Borrower
Representative has furnished Agent a true, correct and complete copy of each of the Term Loan Documents. No statement or representation
made in any of the Term Loan Documents by any Loan Party Obligor or, to any Borrower Representative 's knowledge, any other Person,
contains any untrue statement of a material fact or omits to state any material fact required to be stated therein or necessary
in order to make the statements made therein, in light of the circumstances under which they are made, not misleading in any material
respect as of the time that such statement or representation is made.

 

(b) As of the
Closing Date, neither Ultimate Parent, Investment Corp. nor any of their respective direct or indirect Subsidiaries other than
the Loan Party Obligors (i) are borrowers or guarantors of the Term Loan Facility or (ii) have granted any Liens to the Term Loan
Agent on any or their assets. Loan Party Obligors agree that, if after the Closing Date, Ultimate Parent, Investment Corp. or any
of their respective direct or indirect Subsidiaries other than the Loan Party Obligors (i) become borrowers or guarantors in respect
of the Term Loan Facility or (ii) grant any Liens to the Term Loan Agent, such Persons shall promptly agree to become Loan Party
Obligors under this Agreement and grant Liens to the Lenders and the Agent in such assets of such Persons in which the Term Loan
Agent are so granted a Lien (such assets, the “New Collateral”), in each case, subject to the lien priorities described
below, on the same terms as such Persons become borrowers or guarantors and grant Liens in respect of the Term Loan Facility and
in a manner consistent with the terms of the Intercreditor Agreement; provided, that, for the avoidance of doubt, the obligations
of the Loan Party Obligors under this sentence shall be deemed satisfied if (x) the Liens granted to the Agent and the Lenders
in all such New Collateral are subordinated to the Liens granted to the Term Loan Agent in respect of such New Collateral in a
manner consistent with the Intercreditor Agreement and (y) the priority of the Liens granted to the Term Loan Agent, the Agent
and the Lenders in such New Collateral are consistent with the lien priorities set forth in the Intercreditor Agreement as though
all such New Collateral were deemed “Term Loan Priority Collateral” under the Intercreditor Agreement.

 

(c) For all
purposes of the Loan Agreement, the other Loan Documents and the Intercreditor Agreement (including, without limitation, Section
10.1(l) of the Loan Agreement), Agent and the Lenders hereby (i) acknowledge the entry by the Obligors, the Term Loan Agent, Ultimate
Parent and Investment Corp. into that certain Side Letter Agreement, dated as of March 15, 2019 (the “Term Loan Side
Letter Agreement”), (ii) acknowledge the potential consummation of each of the transactions contemplated by the Term
Loan Side Letter Agreement at a future date, and (iii) acknowledge that the Obligors shall not be required to comply with the provisions
of Section 7.24(b) of this Agreement in connection with any of the matters or transactions described in the Term Loan Side Letter
Agreement until, if ever, such transactions are consummated, and if so, in a manner consistent with the last sentence of Section
7.24(b) and the Intercreditor Agreement.

 

(d) The provisions
of the Intercreditor Agreement are enforceable against the Term Loan Agent each holder of the Term Loan Obligations. Each Loan
Party Obligor acknowledges that Agent is entering into this Agreement and extending credit and making the Loans in reliance upon
the Intercreditor Agreement and this Section 7.24.

 

7.25. Subordinated Debt; HHG Note.

 

(a) Borrower
Representative has furnished Agent a true, correct and complete copy of each of the Subordinated Debt Documents and the HHG Note.
No statement or representation made in any of the Subordinated Debt Documents by any Borrower or any other Loan Party or, to any
Borrower Representative 's knowledge, any other Person, contains any untrue statement of a material fact or omits to state any
material fact required to be stated therein or necessary in order to make the statements made therein, in
light of the circumstances under which they are made, not misleading in any material respect as of the time that such statement
or representation is made. Each of the representations and warranties of the Loan Parties set forth in each of the Subordinated
Debt Documents and the HHG Note are true and correct in all respects. No portion of the Subordinated Debt is, or at any time shall
be, (i) secured by any assets of any of the Loan Parties or any other Person or any equity issued by any of the Loan Parties or
any other Person or (ii) guaranteed by any Person (except to the extent expressly permitted by the applicable Subordinated Debt
Subordination Agreement).

 

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(b) The provisions
of the applicable Subordinated Debt Subordination Agreement and the HHG Subordination Agreement are enforceable against each holder
of the applicable Subordinated Debt and the HHG Note. Each Borrower and each other Loan Party Obligor acknowledges that Agent is
entering into this Agreement and extending credit and making the Loans in reliance upon the Subordinated Debt Subordination Agreement,
the HHG Note Subordination Agreement and this Section 7.25. All Obligations constitute senior Indebtedness entitled to the benefits
of the subordination provisions contained in the applicable Subordinated Debt Documents and the HHG Note Subordination Agreement
and the applicable Subordinated Debt Subordination Agreement and the HHG Subordination Agreement.

 

7.26. Access
to Collateral, Books and Records/Retention of Conway MacKenzie. At reasonable times, Agent and its representatives or
agents shall have the right to inspect the Collateral and to examine and copy each Loan Party's books and records. Each Loan Party
Obligor agrees to give Agent access to any or all of such Loan Party Obligor's, and each of its Subsidiaries', premises to enable
Agent to conduct such inspections and examinations. Such inspections and examinations shall be at Borrowers’ expense and
the charge therefor shall be $1200 per person per day (or such higher amount as shall represent Agent's then current standard charge),
plus out-of-pocket expenses. Agent may, at Borrowers’ expense, use each Loan Party's personnel, computer and other equipment,
programs, printed output and computer readable media, supplies and premises for the collection, sale or other disposition of Collateral
to the extent Agent, in its sole discretion, deems appropriate. Each Loan Party Obligor hereby irrevocably authorizes all accountants
and third parties to disclose and deliver to Agent, at Borrowers’ expense, all financial information, books and records,
work papers, management reports and other information in their possession regarding the Loan Parties. The foregoing notwithstanding,
so long as no Event of Default has occurred and is continuing, the Loan Parties’ obligation to reimburse Agent for any such
visit, inspection and/or examination shall be limited to two such occurrences in any four consecutive fiscal quarter period. Loan
Party Obligors shall continue to engage the consulting firm of Conway MacKenzie through the earlier of (i) the end of third quarter
of Fiscal Year 2019 or (ii) the date Agent specifies that certain U.S. inventory and accounts receivable aging reporting issues
have been resolved to Agent’s satisfaction in its Permitted Discretion.

 

7.27.
Appraisals.  Each Loan Party Obligor will permit Agent and each of its representatives or agents to conduct appraisals and
valuations of the ABL Priority Collateral at such times and intervals as Agent may designate (including any appraisals that may
be required to comply with FIRREA). Such appraisals and valuations shall be at Borrowers’ expense, provided, however, so
long as no Event of Default has occurred and is continuing, the Loan Parties’ obligation to reimburse Agent for any such
appraisal\valuation shall be limited to three appraisals\valuations in any four consecutive fiscal quarter period.

 

7.28.
Lender Meetings. Upon the request of any Agent or the Required Lenders (which request, so long as no Event of Default shall
have occurred and be continuing, shall not be made more than once during each fiscal quarter), participate in a telephonic meeting
with the Agents and the Lenders at such time as may be agreed to by Borrower Representative
and such Agent or the Required Lenders.

 

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7.29.
Interrelated Businesses. Loan Parties make up a related organization of various entities constituting a single economic and
business enterprise so that Loan Parties share an identity of interests such that any benefit received by any one of them benefits
the others. From time to time each of the Loan Parties may render services to or for the benefit of the other Loan Parties, purchase
or sell and supply goods to or from or for the benefit of the others, make loans, advances and provide other financial accommodations
to or for the benefit of the other Loan Parties (including inter alia, the payment by such Loan Parties of creditors of the other
Loan Parties and guarantees by such Loan Parties of indebtedness of the other Loan Parties and provides administrative, marketing,
payroll and management services to or for the benefit of the other Loan Parties). Loan Parties have the same centralized accounting
and legal services, certain common officers and directors and generally do not provide stand-alone consolidating financial statements
to creditors.

 

7.30. Canadian
Benefit Plans. Except where the failure to perform any obligation or make any withholding, collection or payment, as applicable,
could not reasonably be expected, individually or in the aggregate, to result in a Material Adverse Effect: (a) all obligations
of the Loan Parties (including fiduciary, funding, investment, administration and reporting obligations) required to be performed
by them in connection with the Canadian Benefit Plans and the funding agreements therefor have been performed, (b) all contributions
or premiums required to be made or paid by the Loan Parties to the Canadian Benefit Plans have been made or paid in a timely fashion
in accordance with the terms of such plans and all applicable laws, and (c) all employee contributions to the Canadian Benefit
Plans by way of authorized payroll deduction or otherwise have been properly withheld or collected by the Loan Parties and have
been fully paid into those plans in compliance with the plans and applicable laws. There have been no improper withdrawals or applications
of the assets of the Canadian Benefit Plans. There is no proceeding, action, suit or claim (other than routine claims for benefits)
pending or threatened involving the Canadian Benefit Plans, and no facts exist which could reasonably be expected to give rise
to that type of proceeding, action, suit or claim, except where the outcome thereof could not reasonably be expected, individually
or in the aggregate, to result in a Material Adverse Effect. No promises of benefit improvements under the Canadian Benefit Plans
by the Loan Parties have been made except where improvement could not have a Material Adverse Effect. The Loan Parties shall perform
all obligations (including fiduciary, funding, investment and administration obligations) required to be performed in connection
with each Canadian Benefit Plan and the funding media therefor; make all contributions and pay all premiums required to be made
or paid by it or them in accordance with the terms of the plan and all applicable laws; and withhold by way of authorized payroll
deductions or otherwise collect and pay into the plan all employee contributions required to be withheld or collected in accordance
with the terms of the plan and all applicable laws.

 

7.31. Canadian
Pension Plans. None of the Loan Parties has any Canadian Pension Plans and none of the Loan Parties shall establish or maintain
a Canadian Pension Plan without the prior written consent of the Agent.

 

7.32. Post-Closing
Matters. Loan Party Obligors shall satisfy the requirements set forth in Schedule 7.32 on or before the dates specified therein
or such later date to be determined by Agent, at its sole option, each of which shall be completed or provided in form and substance
reasonably satisfactory to Agent. The failure to satisfy any such requirement on or before the date when due (or within such longer
period as Agent may agree at its sole option) shall be an Event of Default, except as otherwise agreed to by Agent at its sole
option.

 

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8. NEGATIVE
COVENANTS. Until the Termination Date, no Loan Party Obligor shall, and no Loan Party Obligor shall permit any other Loan Party
to:

 

(a) Merge, Divide,
or consolidate with another Person, form any new Subsidiary, including by any Division thereof, acquire any interest in any Person,
or wind-up its business operations or cease substantially all or any material portion of its normal business operations, dissolve
or liquidate, except after prior written notice to the Agent, for a merger, amalgamation, combination, consolidation, liquidation,
or dissolution of a Borrower into another Borrower (other than a Borrower that is a U.S. Obligor into a Canadian Obligor or vice
versa), a wholly-owned Subsidiary of a Borrower into another wholly owned Subsidiary of such Borrower (provided that if any such
Person is an Obligor, the Obligor shall be the surviving or continuing entity);

 

(b) acquire all or a material portion of the assets
or the business of any Person;

 

(c) acquire any assets except in the Ordinary Course
of Business and as otherwise expressly permitted by this Agreement;

 

(d) substantially
change the nature of the business in which it is presently engaged or enter into any transaction outside the Ordinary Course of
Business that is not expressly permitted by this Agreement;

 

(e) permit an
Asset Disposition, sell, lease, assign, transfer, return, liquidate, or dispose of any Collateral or other assets with an aggregate
book value in excess of $500,000 in any fiscal year, except that each Loan Party may make a Permitted Asset Disposition;

 

(f) make any
loans to, or investments in, any Affiliate or other Person in the form of money or other assets; provided, that

 

(i)       Borrowers may
make loans and investments in its wholly-owned Subsidiaries that are Loan Party Obligors;

 

(ii)       Holdings may make
investments in Borrowers;

 

(iii)       Loan Party Obligors
may make Permitted Intercompany Loans;

 

(iv) Loan
Party Obligors may make investments consisting of securities of account debtors received pursuant to a plan of reorganization of
such account debtor or in connection with the settlement of such accounts;

 

(v) Loan Party
Obligors may make advances to an officer or employee for salary, travel expenses, commissions and similar items in the Ordinary
Course of Business;

 

(vi) Loan
Party Obligors may pay prepaid expenses and make extensions of trade credit made in the Ordinary Course of Business;

 

(vii) Loan Party
Obligors may make investments consisting of contributions of capital or asset transfers to Borrowers or Guarantors, so long as
no Change of Control occurs as a result thereof, provided that no Loan Party Obligor that is a U.S. Obligor may make contributions
of capital or asset transfers to Borrowers or Guarantors that are Canadian Obligors except as otherwise provided herein;

 

(viii) Loan
Party Obligors may make investments consisting of securities or instruments received pursuant to a disposition of assets permitted
hereby; and

 

(ix) Loan Party
Obligors may make deposits with financial institutions permitted hereunder;

 

    	 	61	 

     

    

 

(g) incur any Indebtedness other than:

 

(i) the
Obligations;

 

(ii) Permitted Indebtedness;
and

 

(iii) Indebtedness
of a Loan Party Obligor consisting of obligations under deferred compensation or other similar arrangements for employees entered
into in the Ordinary Course of Business.

 

(h) create,
incur, assume or suffer to exist any Lien or other encumbrance of any nature whatsoever or authorize under the UCC or PPSA of any
jurisdiction a Financing Statement naming the Loan Party as debtor, or execute any Security Agreement authorizing any secured party
thereunder to file such Financing Statement, other than in favor of Agent to secure the Obligations, on any of its assets whether
now or hereafter owned, and Permitted Liens;

 

(i) authorize,
enter into, or execute any agreement giving a Secured Party control of a (i) Deposit Account as contemplated by Section 9-104 of
the UCC or (ii) Securities Accounts as contemplated by Section 9-106 of the UCC, in each case other than in favor of Lender to
secure the Obligations (or in the case of Canadian Borrowers, the PPSA, as applicable to either (i) or (ii));

 

(j) enter into
any covenant or other agreement that restricts or is intended to restrict it from pledging or granting a security interest in,
mortgaging, assigning, encumbering or otherwise creating a Lien on any of its property, whether, real or personal, tangible or
intangible, existing or hereafter acquired, in favor of Lender except for:

 

(i) any agreements
governing any Indebtedness permitted under clause (b) or (c) of the definition of Permitted Indebtedness, but only to the extent
any such restriction is limited to the assets that are the subject of such agreements;

 

(ii) (a) customary
provisions contained in an agreement restricting assignment of such agreement entered into in the Ordinary Course of Business including
the Excluded Property; (b) customary provisions (including customary net worth provisions) in leases, subleases, licenses and sublicenses
that restrict the transfer thereof or the transfer of the assets subject thereto by the lessee, sublessee, licensee or sublicensee;
and (c) customary restrictions on customer deposits imposed by customers under contracts entered into in the Ordinary Course of
Business; and

 

(iii) customary
restrictions that arise in connection with any disposition permitted under Section 8(e) solely to the assets subject to such disposition;

 

(k) guaranty
or otherwise become liable with respect to the obligations (other than the Obligations) of another party or entity except as permitted
herein;

 

(l) make a
Restricted Payment unless the Distribution Payment Conditions have been satisfied; provided, that notwithstanding
the foregoing:

 

(i) Loan Party
Obligors may declare and accrue any distribution or dividend for shareholders; and

 

(ii) Loan
Party Obligors may make Permitted Tax Distributions;

 

(m) redeem,
retire, purchase or otherwise acquire, directly or indirectly, any of Loan Party Obligor's capital stock or other equity
interests;

 

    	 	62	 

     

    

 

(n) dissolve or elect
to dissolve except as permitted in Section 8(a);

 

(o) engage, directly
or indirectly, in a business other than the business which is being conducted on the date hereof, wind up its business operations
or cease substantially all, or any material portion, of its normal business operations, or suffer any material disruption, interruption
or discontinuance of a material portion of its normal business operations except as permitted in Section

8(a);

 

(p) pay or
make any payments (whether voluntary or mandatory, or a prepayment, distribution, redemption, retirement, defeasance or acquisition)
with respect to any Indebtedness that is contractually subordinated to Agent, including the Subordinated Debt, in violation of
the applicable subordination or intercreditor agreement;

 

(q) pay or
make any payments with respect to the HHG Note unless permitted by the terms and conditions of the HHG Subordination Agreement;

 

(r) pay or
make any payments (whether voluntary or mandatory, or a prepayment, distribution, redemption, retirement, defeasance or acquisition)
with respect to the Term Loan Facility other than (i) regularly scheduled payments of principal and interest and mandatory prepayments
permitted by the Intercreditor Agreement, and (ii) voluntary prepayments pursuant to the Term Loan Side Letter Agreement but only
to the extent funded by capital contributions made by Ultimate Parent and Investment Corp. to Holdings;

 

(s) enter into
any transaction involving an amount greater than $100,000 with an Affiliate or any employee of any Loan Party Obligor or Affiliate
other than (i) on arms-length terms, (ii) payment of reasonable compensation to officers and employees for services actually rendered,
and payment of customary directors’ fees and indemnities, (iii) intercompany purchases and sales, and (iv) as otherwise disclosed
to Agent in writing prior to the date hereof;

 

(t) change
its jurisdiction of organization or enter into any transaction which has the effect of changing its jurisdiction of organization
except as provided for in Section 7.8 and Section

8.1(a);

 

(u) agree, consent,
permit or otherwise undertake to amend or otherwise modify any of the terms or provisions of any Loan Party's Governing Documents,
except for such amendments or other modifications required by applicable law or that are not materially adverse to Agent and Lenders,
and then, only to the extent such amendments or other modifications are fully disclosed in writing to Agent no less than five Business
Days prior to being effectuated;

 

(v) enter into
or assume any agreement prohibiting the creation or assumption of any Lien to secure the Obligations upon its properties or assets,
whether now owned or hereafter acquired, except in connection with any document or instrument governing Liens permitted pursuant
to clause (a) of the definition of Permitted Liens provided that any such restriction contained therein relates only to the asset
or assets subject to such Permitted Lien and with respect to Excluded Property;

 

(w) create or
otherwise cause or suffer to exist or become effective any encumbrance or restriction (other than any Loan Documents or Term Loan
Documents, as permitted by the Intercreditor Agreement) of any kind on the ability of any such Person to pay or make any dividends
or distributions to any Borrower, to pay any of the Obligations, to make loans or advances or to transfer any of its property or
assets to any Borrower;

 

    	 	63	 

     

    

 

(x) agree, consent,
permit or otherwise undertake to amend, waive or otherwise modify any of the terms or provisions of any Subordinated Debt Document
in violation of the Subordinated Debt Subordination Agreement;

 

(y) agree,
consent, permit or otherwise undertake to amend, waive or otherwise modify any of the terms or provisions of any HHG Note in violation
of the HHG Note Subordination Agreement;

 

(z) become
party to any Multiemployer Plan, Canadian Multi-Employer Plan, Foreign Plan or Canadian Defined Benefit Pension Plan, other than
any in existence on the Closing Date or maintain, contribute or have any liability in respect of, or acquire any Person that maintains,
contributes or has any liability in respect of, a Canadian Pension Plan or Canadian Multi-Employer Plan or a Canadian Defined Benefit
Pension Plan during the term of this Agreement;

 

(aa) amend, modify,
change, waive, or obtain any consent, waiver or forbearance with respect to, any of the terms or provisions of any agreement, instrument,
document, indenture, or other writing evidencing or concerning the Term Loan Obligations (including the Term Loan Documents) except
to the extent permitted by the Intercreditor Agreement; or

 

(bb) sell
inventory or product to the cannabis/marijuana industry, advertise to the cannabis/marijuana industry (including any direct cannabis
trade or social media advertising); provided that nothing in this Section 8(z) shall restrict (i) Borrowers’ selling or advertising
to the hemp industry or (ii) Borrowers’ employees attending and participating in cannabis/marijuana industry conferences/events
in a manner that does not include selling or advertising.

 

(cc) pay or make
any payments (whether voluntary or mandatory, or a prepayment, distribution, redemption, retirement, defeasance or acquisition)
with respect to the Asset Acquisition Earnout Obligations.

 

9. FINANCIAL
COVENANTS. Each Loan Party Obligor shall at all times comply with the following Financial Covenants:

 

9.1.
Fixed Charge Coverage Ratio/ Minimum Excess Availability. Borrowers shall not permit Excess Availability at any time
following the Availability Block Release Date to be less than the Minimum Excess Availability Amount, unless as of the last day
of the most recent month for which the monthly financial statements of Borrowers and the related Compliance Certificate are required
to have been delivered to Agent pursuant to Section 7.15, the Fixed Charge Coverage Ratio for the applicable FCCR Measurement
Period then ended is greater than 1:05 to 1:00.

 

9.2. Capital
Expenditure Limitation. The Loan Parties shall not make any Capital Expenditures if, after giving effect to such Capital Expenditures,
the aggregate cost of all Capital Expenditures of the Loan Parties would exceed $500,000 during Fiscal Year 2019 and $750,000 annually
during any subsequent Fiscal Year.

 

10.
RELEASE, LIMITATION OF LIABILITY AND INDEMNITY.

 

10.1. Release.
Each Borrower and each other Loan Party Obligor on behalf of itself and its successors, assigns, heirs and other legal representatives,
hereby absolutely, unconditionally and irrevocably releases, remises and forever discharges Agent and each Lender and any and all
Participants and Affiliates, and their respective successors and assigns, and their respective directors, members, managers, officers,
employees, attorneys and agents, including each Agent-Related Person, and any other Person affiliated with or representing Agent
or any Lender (collectively, the "Released Parties") of and from any and all liability, including all actual
or potential claims, demands or causes of action of any kind, nature or description whatsoever, whether arising in law or equity
or under contract or tort or under any state, provincial or federal law or otherwise, which any Borrower or any Loan Party or any
of their successors, assigns or other legal representatives has had, now has or has made claim to have against any of the Released
Parties for or by reason of any act, omission, matter, cause or thing whatsoever, including any liability arising from acts or
omissions pertaining to the transactions contemplated by this Agreement and the other Loan Documents, whether based on errors of
judgment or mistake of law or fact, from the beginning of time to and including the Closing Date, whether such claims, demands
and causes of action are matured or known or unknown. Notwithstanding any provision in this Agreement to the contrary, this Section
10.1 shall remain operative even after the Termination Date and shall survive the payment in full of all of the Loans. Such release
is made on the date hereof and remade upon each request for a Loan by any Borrower or Borrower Representative.

 

    	 	64	 

     

    

 

10.2. Limitation
of Liability. In no circumstance will any of the Released Parties be liable for lost profits or other special, punitive, or
consequential damages. Notwithstanding any provision in this Agreement to the contrary, this Section 10.2 shall remain operative
even after the Termination Date and shall survive the payment in full of all of the Loans.

 

10.3. Indemnity.

 

(a) Each Loan
Party Obligor hereby agrees to indemnify the Released Parties and hold them harmless from and against any and all claims, debts,
liabilities, demands, obligations, actions, causes of action, penalties, costs and expenses (including internal and external attorneys'
fees), of every nature, character and description, which the Released Parties may sustain or incur based upon or arising out of
any of the transactions contemplated by this Agreement or any other Loan Documents or any of the Obligations, any Collateral relating
thereto, any drafts thereunder and any errors or omissions relating thereto, or any other matter, cause or thing whatsoever occurred,
done, omitted or suffered to be done by Agent or any Lender relating to any Loan Party or the Obligations (except any such amounts
sustained or incurred solely as the result of the gross negligence or willful misconduct of such Released Parties, as finally determined
by a court of competent jurisdiction and except for disputes among the Released Parties). Notwithstanding any provision in this
Agreement to the contrary, this Section 10.3 shall remain operative even after the Termination Date and shall survive the payment
in full of all of the Loans.

 

(b) To the
extent that any Loan Party Obligor fails to pay any amount required to be paid by it to Agent (or any Released Party of Agent)
under paragraph (a) above, each Lender severally agrees to pay to Agent (or such Released Party), such Lender's Pro Rata Share
(determined as of the time that the applicable unreimbursed expense or indemnity payment is sought) of such unpaid amount (it being
understood that any such payment by the Lenders shall not relieve any Loan Party of any default in the payment thereof); provided
that the unreimbursed expense or indemnified loss, claim, damage, penalty, liability or related expense, as the case may be, was
incurred by or asserted against Agent in its capacity as such.

 

11.       EVENTS OF DEFAULT
AND REMEDIES.

 

11.1. Events of Default. The occurrence of any of
the following events shall constitute an "Event of Default":

 

    	 	65	 

     

    

 

(a) Payment.
If any Loan Party Obligor or any Other Obligor fails to pay to Agent, when due, any principal or interest payment or any other
monetary Obligation required under this Agreement or any other Loan Document;

 

(b) Breaches
of Representations and Warranties. If any warranty, representation, statement, report or certificate made or delivered to
Agent or any Lender by or on behalf of any Loan Party or any Other Obligor is untrue or misleading in any material respect on
the date made or deemed made (except where such warranty or representation is already qualified by Material Adverse Effect, materiality,
dollar thresholds or similar qualifications, in which case such warranty or representation shall be accurate in all respects);

 

(c)  Breaches
of Covenants.

 

(i) If any Loan
Party or any Other Obligor defaults in the due observance or performance of any covenant, condition or agreement contained in Section
5.2, 6.1, 6.6, 6.7, 7.2 (limited to the last sentence of Section 7.2), 7.3, 7.7, 7.8, 7.11(c), 7.13, 7.14, 7.15, 7.23, 7.25, 7.26,

7.27, 7.30, 7.31, 7.32, 8 or 9; or

 

(ii) If any
Loan Party or any Other Obligor defaults in the due observance or performance of any covenant, condition or agreement contained
in any provision of this Agreement or any other Loan Document and not addressed in clauses Sections 11.1(a), (b) or (c)(i), and
such default is not cured within 30 days after a senior officer of such Obligor has knowledge thereof or receives notice thereof
from Agent, whichever is sooner; provided, however, that such notice and opportunity to cure shall not apply if the breach or failure
to perform is not capable of being cured within such period or is a willful breach by an Obligor;

 

(d) Judgment.
If one or more judgments aggregating in excess of $500,000 which is not covered by insurance is obtained against any Loan Party
or any Other Obligor which remains unstayed for more than thirty (30) days or is enforced;

 

(e) Cross-Default.
If any default occurs with respect to any Indebtedness in the amount of $500,000 or more (other than the Obligations, the Term
Loan Facility, the HHG Note or the Subordinated Debt) of any Loan Party or any Other Obligor if (i) such default shall consist
of the failure to pay such Indebtedness when due, whether by acceleration or otherwise or (ii) the effect of such default is to
permit the holder, with or without notice or lapse of time or both, to accelerate the maturity of any such Indebtedness or to cause
such Indebtedness to become due prior to the stated maturity thereof (without regard to the existence of any subordination or intercreditor
agreements);

 

(f) Dissolution.
The dissolution, termination of existence, insolvency or business failure or suspension or cessation of business as usual of any
Loan Party or any Other Obligor (or of any general partner of any Loan Party or any Other Obligor if it is a partnership), except
as permitted pursuant to the terms hereof;

 

(g) Voluntary
Bankruptcy or Similar Proceedings. If any Loan Party or any Other Obligor shall apply for or consent to the appointment of
a receiver, trustee, custodian or liquidator of it or any of its properties, admit in writing its inability to pay its debts as
they mature, make a general assignment for the benefit of creditors, be adjudicated a bankrupt or insolvent or be the subject of
an order for relief under the Bankruptcy Code or under any bankruptcy or insolvency law of a foreign jurisdiction, or file a voluntary
petition in bankruptcy, or a petition or an answer seeking reorganization or an arrangement with creditors or to take advantage
of any bankruptcy, reorganization, insolvency, readjustment of debt, dissolution or liquidation law or statute, or an answer admitting
the material allegations of a petition filed against it in any proceeding under any such law, or take or permit to be taken any action in furtherance
of or for the purpose of effecting any of the foregoing;

 

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(h) Involuntary
Bankruptcy or Similar Proceedings. The commencement of an involuntary case or other proceeding against any Loan Party or any
Other Obligor seeking liquidation, reorganization or other relief with respect to it or its debts under any bankruptcy, insolvency
or other similar applicable law or seeking the appointment of a trustee, receiver, liquidator, custodian or other similar official
of it or any substantial part of its property, or if an order for relief is entered against any Loan Party or any Other Obligor
under any bankruptcy, insolvency or other similar applicable law as now or hereafter in effect; provided, that if
such commencement of proceedings is involuntary, such action shall not constitute an Event of Default unless such proceedings are
not dismissed within sixty (60) days after the commencement of such proceedings, though Agent and Lenders shall have no obligation
to make Loans during such sixty-day period or, if earlier, until such proceedings are dismissed;

 

(i) Revocation
or Termination of Guaranty or Security Documents. The actual or attempted revocation or termination of, or limitation or denial
of liability under, any guaranty of any of the Obligations, or any security document securing any of the Obligations, by any Loan
Party or Other Obligor;

 

(j) Subordinated
Indebtedness. If any Loan Party or Other Obligor makes any payment on account of the Subordinated Debt, the HHG Note or any
Indebtedness or obligation which has been contractually subordinated to the Obligations other than payments which are not prohibited
by the applicable subordination provisions pertaining thereto, or if any Person who has subordinated such Indebtedness or obligations
attempts to limit or terminate any applicable subordination provisions pertaining thereto, in each case, including the Subordinated
Debt Subordination Agreement and the HHG Note Subordination Agreement;

 

(k) Term
Loan Facility.  A Default or Event of Default (as such terms are defined in the Term Loan Documents) occurs with respect to
the Term Loan Facility or the occurrence of any condition or event that results in the Term Loan Obligations becoming due prior
to its scheduled maturity as of the Closing Date or permits any holder or holders of the Term Loan Obligations or any trustee or
agent on its or their behalf to cause the Term Loan Obligations to become due, or require the prepayment, repurchase, redemption
of defeasance thereof, prior to its scheduled maturity as of the Closing Date.

 

(l) Criminal
Indictment or Proceedings. If there is any indictment of any Loan Party, any Loan Party's officers, any Other Obligor or any
Other Obligor's officers under any criminal statute or commencement of criminal proceedings against any such Person relating to
the business affairs of the Loan Parties;

 

(m) Change
of Control. If (i) the Sponsor Group shall cease to directly or indirectly own and control, beneficially and of record, Equity
Interests of Ultimate Parent representing at least 50.1% of the voting power and at least 50.1% of the economic interest represented
by the outstanding equity interests of Ultimate Parent Inc. held by the Sponsor Group as of March 15, 2019; (ii) the Control Group
shall cease, for any reason, to have, collectively, the right or ability by voting power, contract or otherwise to, directly or
indirectly, elect or designate for election a majority (in number and in voting power) of the members of the board of directors,
board of managers or similar governing body of Ultimate Parent, (iii) Ultimate Parent becomes a direct or indirect Subsidiary of
any Person, (iv) Ultimate Parent ceases to, directly or indirectly, own and control all of the outstanding equity interests of
Investment Corp. and Holdings on a fully diluted basis, (v) Holdings ceases to, directly or indirectly, own and control all of
the outstanding equity interests of each other Loan Party Obligor on a fully diluted
basis, or (vi) any “change of control” (or similar term) under the Term Loan Facility, the Term Loan Documents or
any Subordinated Debt, while outstanding, shall have occurred;

 

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(n) Change
of Management. If Bill Toler ceases to be employed as, and actively perform the duties of, the chief executive officer of each
Loan Party, unless a successor is appointed within ninety (90) days after the termination of such individual's employment and such
successor is reasonably satisfactory to Agent;

 

(o) Invalid
Liens. If any Lien purported to be created by any Loan Document shall cease to be a valid perfected first priority Lien (subject
only to any priority accorded by law to Permitted Liens) on any material portion of the Collateral, or any Loan Party or any other
Obligor shall assert in writing that any Lien purported to be created by any Loan Document is not a valid perfected first-priority
lien (subject only to any priority accorded by law to Permitted Liens) on the assets or properties purported to be covered thereby;

 

(p) Termination
of Loan Documents. If any of the Loan Documents shall cease to be in full force and effect (other than as a result of the discharge
thereof in accordance with the terms thereof or by written agreement of all parties thereto);

 

(q) Liquidation
Sales. The determination by any Loan Party to employ an agent or other third party or otherwise engage any Person or solicit
proposals for the engagement of any Person (i) in connection with the proposed liquidation of all or a material portion of its
assets, or (ii) to conduct any so-called closing, liquidation or “GoingOutOfBusiness” sales;

 

(r) Loss of
Collateral. The (i) uninsured loss, theft, damage or destruction of any of the Collateral, (ii) the uninsured loss, theft,
damage or destruction of any of the ABL Priority Collateral in an amount in excess of $250,000 in the aggregate for all such events
during any Fiscal Year, or (iii) except as permitted hereby, the sale, lease or furnishing under a contract of service of, any
of the ABL Priority Collateral.

 

(s) Plans.
(i) An ERISA Event occurs with respect to a Pension Plan or Multiemployer Plan which has resulted or could reasonably be
expected to result in liability of any Loan Party or any Subsidiary under Title IV of ERISA to the Pension Plan,
Multiemployer Plan or the PBGC in an aggregate amount in excess of $250,000, (ii) the existence of any Lien under Section
430(k) or Section 6321 of the Code or Section 303(k) or Section 4068 of ERISA on any assets of a Loan Party, or (iii) a Loan
Party or any ERISA Affiliate fails to pay when due, after the expiration of any applicable grace period, any installment
payment with respect to its withdrawal liability under Section 4201 of ERISA under a Multiemployer Plan in an aggregate
amount in excess of $250,000.

 

11.2.
Remedies with Respect to Lending Commitments/Acceleration, Etc.  Upon the occurrence of an Event of Default, Agent may (in
its sole discretion), or at the direction of Required Lenders, shall, (a) terminate all or any portion of its commitment to lend
to or extend credit to Borrowers under this Agreement and/or any other Loan Document, without prior notice to any Loan Party and/or
(b) demand payment in full of all or any portion of the Obligations (whether or not payable on demand prior to such Event of Default),
together with the Early Payment/Termination Premium in the amount specified in Section 3.2(e) and/or (c) take any and all other
and further actions and avail itself of any and all rights and remedies available to Agent under this Agreement, any other Loan
Document, under law or in equity. Notwithstanding the foregoing sentence, upon the occurrence of any Event of Default described
in Section 11.1(g) or Section 11.1(h), without notice, demand or other action by Agent all of the Obligations (including the Early
Payment/Termination Premium in the amount specified in Section 3.2(e)) shall immediately become due and payable whether or not
payable on demand prior to such Event of Default.

 

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11.3.
Remedies with Respect to Collateral. Without limiting any rights or remedies Agent or any Lender may have pursuant to this
Agreement, the other Loan Documents, under applicable law or otherwise, upon the occurrence and during the continuation of an Event
of Default:

 

(a) Any
and All Remedies.  Agent may take any and all actions and avail itself of any and all rights and remedies available to Agent
under this Agreement, any other Loan Document, under law or in equity, and the rights and remedies herein and therein provided
shall be cumulative and not exclusive of any rights or remedies provided by applicable law or otherwise.

 

(b) Collections;
Modifications of Terms.  Agent may, but shall be under no obligation to: (i) notify all appropriate parties that the Collateral,
or any part thereof, has been assigned to, or is subject to a security interest in favor of, Agent; (ii) demand, sue for, collect
and give receipts for and take all necessary or desirable steps to collect any Collateral or Proceeds in its or any Loan Party
Obligor's name, and apply any such collections against the Obligations as Agent may elect; (iii) take control of any Collateral
and any cash and non-cash Proceeds of any Collateral; (iv) enforce, compromise, extend, renew settle or discharge any rights or
benefits of each Loan Party Obligor with respect to or in and to any Collateral, or deal with the Collateral as Agent may deem
advisable; and (v) make any compromises, exchanges, substitutions or surrenders of Collateral Agent deems necessary or proper in
its reasonable discretion, including extending the time of payment, permitting payment in installments, or otherwise modifying
the terms or rights relating to any of the Collateral, all of which may be effected without notice to, consent of, or any other
action of any Loan Party and without otherwise discharging or affecting the Obligations, the Collateral or the security interests
granted to Agent under this Agreement or any other Loan Document.

 

(c) Insurance.
Agent may file proofs of loss and claim with respect to any of the Collateral with the appropriate insurer and may endorse in its
own and each Loan Party Obligor's name any checks or drafts constituting Proceeds of insurance. Any Proceeds of insurance received
by Agent may be applied by Agent against payment of all or any portion of the Obligations as Agent may elect in its reasonable
discretion.

 

(d) Possession
and Assembly of Collateral.  Agent may take possession of the Collateral. Upon Agent's request, each Loan Party Obligor shall
assemble the Collateral and make it available to Agent at one or more places designated by Agent.

 

(e) Set-off.
Agent may and, without any notice to, consent of or any other action by any Loan Party (such notice, consent or other action being
expressly waived), set-off or apply (i) any and all deposits (general or special, time or demand, provisional or final) at any
time held by or for the account of Agent or any Affiliate of Agent and (ii) any Indebtedness at any time owing by Agent or any
Affiliate of Agent or any Participant in the Loans to or for the credit or the account of any Loan Party Obligor to the repayment
of the Obligations, irrespective of whether any demand for payment of the Obligations has been made.

 

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(f) Disposition
of Collateral.

 

(i) Sale,
Lease, etc. of Collateral.  Agent may, without demand, advertising or notice, all of which each Loan Party Obligor
hereby waives (except as the same may be required by the UCC, PPSA, or other applicable law and is not waivable under the
UCC, PPSA or such other applicable law), at any time or times in one or more public or private sales or other dispositions,
for cash, on credit or otherwise, at such prices and upon such terms as determined by Agent (provided such price and terms
are commercially reasonable within the meaning of the UCC or PPSA, as applicable, to the extent such sale or other
disposition is subject to the UCC or PPSA requirements that such sale or other disposition must be commercially reasonable),
(A) sell, lease, license or otherwise dispose of any and all Collateral and/or (B) deliver and grant options to a third party
to purchase, lease, license or otherwise dispose of any and all Collateral. Agent may sell, lease, license or otherwise
dispose of any Collateral in its then-present condition or following any preparation or processing deemed necessary by Agent
in its reasonable discretion. Agent may be the purchaser at any such public or private sale or other disposition of
Collateral, and in such case, Agent may make payment of all or any portion of the purchase price therefor by the application
of all or any portion of the Obligations due to Agent to the purchase price payable in connection with such sale or
disposition. Agent may, if it deems it reasonable, postpone or adjourn any sale or other disposition of any Collateral from
time to time by an announcement at the time and place of the sale or disposition to be so postponed or adjourned without
being required to give a new notice of sale or disposition; provided, that Agent shall provide the applicable
Loan Party Obligor with written notice of the time and place of such postponed or adjourned sale or disposition. Each Loan
Party Obligor hereby acknowledges and agrees that Agent's compliance with any requirements of applicable law in connection
with a sale, lease, license or other disposition of Collateral will not be considered to adversely affect the commercial
reasonableness of any sale, lease, license or other disposition of such Collateral.

 

(ii) Deficiency.
 Each Loan Party Obligor shall remain liable for all amounts of the Obligations remaining unpaid as a result of any deficiency
of the Proceeds of the sale, lease, license or other disposition of Collateral after such Proceeds are applied to the Obligations
as provided in this Agreement.

 

(iii) Warranties;
Sales on Credit.  Agent may sell, lease, license or otherwise dispose of the Collateral without giving any warranties and
may specifically disclaim any and all warranties, including but not limited to warranties of title, possession, merchantability
and fitness. Each Loan Party Obligor hereby acknowledges and agrees that Agent's disclaimer of any and all warranties in connection
with a sale, lease, license or other disposition of Collateral will not be considered to adversely affect the commercial reasonableness
of any such disposition of the Collateral. If Agent sells, leases, licenses or otherwise disposes of any of the Collateral on credit,
Borrowers will be credited only with payments actually made in cash by the recipient of such Collateral and received by Agent and
applied to the Obligations. If any Person fails to pay for Collateral acquired pursuant this Section 11.3(f) on credit, Agent may
re-offer the Collateral for sale, lease, license or other disposition.

 

(g) Investment
Property; Voting and Other Rights; Irrevocable Proxy.

 

(i) All rights
of each Loan Party Obligor to exercise any of the voting and other consensual rights which it would otherwise be entitled to exercise
in accordance with the terms hereof with respect to any Investment Property, and to receive any dividends, payments, and other
distributions which it would otherwise be authorized to receive and retain in accordance with the terms hereof with respect to
any Investment Property, shall immediately, at the election of Control Agent (without requiring any notice) cease, and all such
rights shall thereupon become vested solely in Control Agent, and Control Agent (personally or through an agent) shall thereupon
be solely authorized and empowered, without notice, to (A) transfer and register in its name, or in the name of its nominee, the
whole or any part of the Investment Property, it being acknowledged by each Loan Party Obligor that any such transfer and registration
may be effected by Control Agent through its irrevocable appointment as attorney-in-fact pursuant to Section 11.3(g)(ii) and Section
6.4, (B) exchange certificates or instruments representing or evidencing Investment Property for certificates or instruments of
smaller or larger denominations, (C) exercise the voting and all other rights as a holder with respect to all or any portion of
the Investment Property (including all economic rights, all control rights, authority and powers, and all status rights of each
Loan Party Obligor as a member or as a shareholder (as applicable) of the Issuer), (D) collect and receive all dividends and other
payments and distributions made thereon, (E) notify the parties obligated on any Investment Property to make payment to Control Agent of any
amounts due or to become due thereunder, (F) endorse instruments in the name of each Loan Party Obligor to allow collection of
any Investment Property, (G) enforce collection of any of the Investment Property by suit or otherwise, and surrender, release,
or exchange all or any part thereof, or compromise or renew for any period (whether or not longer than the original period) any
liabilities of any nature of any Person with respect thereto, (H) consummate any sales of Investment Property or exercise any other
rights as set forth in Section 11.3(f), (I) otherwise act with respect to the Investment Property as though Control Agent was the
outright owner thereof and (J) exercise any other rights or remedies Control Agent may have under the UCC, PPSA, other applicable
law or otherwise.

 

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(ii) EACH
LOAN PARTY OBLIGOR HEREBY IRREVOCABLY CONSTITUTES AND APPOINTS CONTROL AGENT AS ITS PROXY AND ATTORNEY-IN- FACT FOR SUCH LOAN PARTY
OBLIGOR WITH RESPECT TO ALL OF EACH SUCH LOAN PARTY OBLIGOR'S INVESTMENT PROPERTY WITH THE RIGHT, DURING THE CONTINUANCE OF AN
EVENT OF DEFAULT, WITHOUT NOTICE, TO TAKE ANY OF THE FOLLOWING ACTIONS: (A) TRANSFER AND REGISTER IN AGENT'S NAME, OR IN THE NAME
OF ITS NOMINEE, THE WHOLE OR ANY PART OF THE INVESTMENT PROPERTY, (B) VOTE THE PLEDGED EQUITY, WITH FULL POWER OF SUBSTITUTION
TO DO SO, (C) RECEIVE AND COLLECT ANY DIVIDEND OR ANY OTHER PAYMENT OR DISTRIBUTION IN RESPECT OF, OR IN EXCHANGE FOR, THE INVESTMENT
PROPERTY OR ANY PORTION THEREOF, TO GIVE FULL DISCHARGE FOR THE SAME AND TO INDORSE ANY INSTRUMENT MADE PAYABLE TO ANY LOAN PARTY
OBLIGOR FOR THE SAME, (D) EXERCISE ALL OTHER RIGHTS, POWERS, PRIVILEGES, AND REMEDIES (INCLUDING ALL ECONOMIC RIGHTS, ALL CONTROL
RIGHTS, AUTHORITY AND POWERS, AND ALL STATUS RIGHTS OF EACH LOAN PARTY OBLIGOR AS A MEMBER OR AS A SHAREHOLDER (AS APPLICABLE)
OF THE ISSUER) TO WHICH A HOLDER OF THE PLEDGED COLLATERAL WOULD BE ENTITLED (INCLUDING, WITH RESPECT TO THE PLEDGED EQUITY, GIVING
OR WITHHOLDING WRITTEN CONSENTS OF MEMBERS OR SHAREHOLDERS, CALLING SPECIAL MEETINGS OF MEMBERS OR SHAREHOLDERS, AND VOTING AT
SUCH MEETINGS), AND (E) TAKE ANY ACTION AND TO EXECUTE ANY INSTRUMENT WHICH AGENT MAY DEEM NECESSARY OR ADVISABLE TO ACCOMPLISH
THE PURPOSES OF THIS AGREEMENT. THE APPOINTMENT OF CONTROL AGENT AS PROXY AND ATTORNEY-IN-FACT IS COUPLED WITH AN INTEREST AND
SHALL BE VALID AND IRREVOCABLE UNTIL (x) ALL OF THE OBLIGATIONS HAVE BEEN INDEFEASIBLY PAID IN FULL IN CASH IN ACCORDANCE WITH
THE PROVISIONS OF THIS AGREEMENT AND THE OTHER LOAN DOCUMENTS, (y) CONTROL AGENT AND THE LENDERS HAVE NO FURTHER OBLIGATIONS UNDER
THIS AGREEMENT OR ANY OTHER LOAN DOCUMENT, AND (z) THE COMMITMENTS UNDER THIS AGREEMENT HAVE EXPIRED OR HAVE BEEN TERMINATED (IT
BEING UNDERSTOOD AND AGREED THAT SUCH OBLIGATIONS WILL BE AUTOMATICALLY REINSTATED IF AT ANY TIME PAYMENT, IN WHOLE OR IN PART,
OF ANY OF THE OBLIGATIONS IS RESCINDED OR MUST OTHERWISE BE RESTORED OR RETURNED BY CONTROL AGENT OR ANY LENDER FOR ANY REASON
WHATSOEVER, INCLUDING AS A PREFERENCE, FRAUDULENT CONVEYANCE, OR OTHERWISE UNDER ANY BANKRUPTCY, INSOLVENCY, OR SIMILAR LAW, ALL
AS THOUGH SUCH PAYMENT HAD NOT BEEN MADE; IT BEING FURTHER UNDERSTOOD THAT IN THE EVENT PAYMENT OF ALL OR ANY PART OF THE OBLIGATIONS
IS RESCINDED OR MUST BE RESTORED OR RETURNED, ALL REASONABLE OUT-OF-POCKET COSTS AND EXPENSES (INCLUDING ALL REASONABLE INTERNAL
AND EXTERNAL ATTORNEYS' FEES AND DISBURSEMENTS) INCURRED BY CONTROL AGENT AND THE LENDERS IN DEFENDING AND ENFORCING SUCH REINSTATEMENT
SHALL HEREBY BE DEEMED TO BE INCLUDED AS A PART OF THE OBLIGATIONS). SUCH APPOINTMENT OF CONTROL AGENT AS PROXY AND AS ATTORNEY-IN-FACT
SHALL BE VALID AND IRREVOCABLE AS PROVIDED HEREIN NOTWITHSTANDING ANY LIMITATIONS TO THE CONTRARY SET FORTH IN ANY GOVERNING DOCUMENTS
OF ANY LOAN PARTY OBLIGOR, ANY ISSUER, OR OTHERWISE.

 

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(iii) In order
to further effect the foregoing transfer of rights in favor of Control Agent, during the continuance of an Event of Default, each
Loan Party Obligor hereby authorizes and instructs each Issuer of Investment Property pledged by such Loan Party Obligor to comply
with any instruction received by such Issuer from Control Agent without any other or further instruction from such Loan Party Obligor,
and each Loan Party Obligor acknowledges and agrees that each Issuer shall be fully protected in so complying, and to pay any dividends,
distributions, or other payments with respect to any of the Investment Property directly to Control Agent.

 

(iv) Upon
exercise of the proxy set forth herein, all prior proxies given by any Loan Party Obligor with respect to any of the Pledged Equity
or other Investment Property, other than to Control Agent, are hereby revoked, and no subsequent proxies, other than to Control
Agent will be given with respect to any of the Pledged Equity or any of the other Investment Property unless Control Agent otherwise
subsequently agrees in writing. Control Agent, as proxy, will be empowered and may exercise the irrevocable proxy to vote the Pledged
Equity and the other Investment Property at any and all times during the existence of an Event of Default, including, at any meeting
of shareholders or members, as the case may be, however called, and at any adjournment thereof, or in any action by written consent,
and may waive any notice otherwise required in connection therewith. To the fullest extent permitted by applicable law, Control
Agent shall have no agency, fiduciary or other implied duties to any Loan Party Obligor, any Issuer, any Loan Party or any other
Person when acting in its capacity as such proxy or attorney-in-fact. Each Loan Party Obligor hereby waives and releases any claims
that it may otherwise have against Control Agent with respect to any breach, or alleged breach, of any such agency, fiduciary or
other duty.

 

(v) Any
transfer to Control Agent or its nominee, or registration in the name of Agent or its nominee, of the whole or any part of the
Investment Property shall be made solely for purposes of effectuating voting or other consensual rights with respect to the Investment
Property in accordance with the terms of this Agreement and is not intended to effectuate any transfer of ownership of any of the
Investment Property. Notwithstanding the delivery by Control Agent of any instruction to any Issuer or any exercise by Control
Agent of an irrevocable proxy or otherwise, Control Agent shall not be deemed the owner of, or assume any obligations or any liabilities
whatsoever of the owner or holder of, any Investment Property unless and until Agent expressly accepts such obligations in a duly
authorized and executed writing and agrees in writing to become bound by the applicable Governing Documents or otherwise becomes
the owner thereof under applicable law (including through a sale as described in Section 11.3(f)). The execution and delivery of
this Agreement shall not subject Control Agent to, or transfer or pass to Control Agent, or in any way affect or modify, the liability
of any Loan Party Obligor under the Governing Documents of any Issuer or any related agreements, documents, or instruments or otherwise.
In no event shall the execution and delivery of this Agreement by Control Agent, or the exercise by Control Agent of any rights
hereunder or assigned hereby, constitute an assumption of any liability or obligation whatsoever of any Loan Party Obligor to,
under, or in connection with any of the Governing Documents of any Issuer or any related agreements, documents, or instruments
or otherwise.

 

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(vi) Compliance with the
Securities Act as now in effect or as hereafter amended, or any similar statute hereafter adopted with similar purpose or
effect, as well as any applicable "Blue Sky" or other state securities laws, if applicable to the Collateral or the
portion thereof being sold, may require strict limitations as to the manner in which the Control Agent or any subsequent
transferee may dispose of the Collateral. With respect to any disposition as to which the Securities Act or analogous state
securities laws is applicable, each Loan Party Obligor hereby waives any objection to sale in a compliant manner, and agrees
that the Control Agent has no obligation to obtain the maximum possible price for the Collateral so long as the Agent
proceeds in a commercially reasonable manner. Without limiting the generality of the foregoing, each Loan Party Obligor
agrees that in conducting a disposition of the Collateral as to which the Securities Act or analogous state securities laws
applies, Control Agent may seek to sell the Collateral by private placement, and may restrict bidders and prospective
purchasers to those who are willing to represent that they are purchasing for investment only and not for distribution and
who otherwise satisfy qualifications designed to ensure compliance with the Securities Act and analogous state securities
laws and those that may be established in the Issuer’s Governing Documents. Each Loan Party Obligor acknowledges that
in order to protect Control Agent’s interest, it may be necessary to sell the Collateral at a price less than the
maximum price attainable if a sale were delayed or were made in another manner, including a public offering under the
Securities Act. In order to address these potential compliance requirements, Control Agent may solicit offers to purchase the
Collateral from a limited number of bidders reasonably believed by Control Agent to be institutional investors or accredited
investors. If Agent solicits offers in a commercially reasonable manner, then acceptance by Control Agent of one or more of
the offers shall be deemed to be a commercially reasonable method of disposition of the Collateral and Control Agent will not
be responsible or liable for selling all or any portion of the Collateral at a price that Control Agent deems in good faith
to be reasonable. Control Agent is under no obligation to delay a disposition of any portion of the Collateral that are
securities under the Securities Act or applicable “Blue Sky” or other state securities law for the period of time
necessary to permit any Loan Party Obligor or the Issuer to register the securities for public sale under the Securities Act
or under applicable “Blue Sky” or other state securities laws, even if a Loan Party Obligor or the Issuer agrees
to do so. In addition, to the extent not prohibited by applicable law, each Loan Party Obligor waives any right to prior
notice (except to the extent expressly provided in this Agreement) or judicial hearing in connection with the taking
possession or the disposition of any of the Collateral, including any right which Loan Party Obligor otherwise would
have.

 

(vii) To the
extent permitted under applicable law, Control Agent is not required to conduct any foreclosure sale of the Investment Property
or any portion thereof.

 

(viii) Control
Agent, at its option, may obtain the appointment of a receiver to take possession of the Investment Property and, at the option
of Control Agent, a receiver may be empowered (i) to collect, receive and enforce all distributions, (ii) to exercise the rights
of Control Agent as provided in this Agreement, (iii) to collect all other amounts owed to any Loan Party Obligor in respect of
the Investment Property as and when due to any Loan Party Obligor, (iv) to otherwise collect, sell or dispose of the Investment
Property, (v) to exercise all rights in and under the Investment Property; and (vi) to turn over all net proceeds to Control Agent.
Each Loan Party Obligor irrevocably and unconditionally agrees that a receiver may be appointed by a court to take the actions
listed above without regard to the adequacy of the security for the Obligations, and the actions of the receiver may be taken in
the name of the receiver, any Loan Party Obligor or Control Agent.

 

(ix) Control
Agent may elect to conduct a sale of an economic interest in any Investment Property constituting limited liability company interests
that does not result in the purchaser being admitted as a substitute limited liability company member in the Issuer, and that any
sale or dispositions made in good faith will be considered commercially reasonable, notwithstanding the possibility that a substantially
higher price might be realized if the purchaser were able to be admitted as a substitute limited liability company member rather
than the holder of only an economic interest in the Issuer.

 

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(x) Control
Agent may disclose to prospective purchasers all of the information relating to the Investment Property (and the applicable Issuer)
that is in the Agent's possession or otherwise available to the Control Agent.

 

(xi) Each Loan
Party Obligor hereby authorizes and instructs their respective Issuer to comply with any instruction received by it from Control
Agent in writing that (i) states that an Event of Default has occurred and is continuing and (ii) is otherwise in accordance with
the terms of the provisions of the this Agreement, the Loan documents or Term Loan Documents as to Investment Property, without
any other or further instructions from the respective Loan Party Obligor, and such Loan Party Obligor agrees that Issuer be fully
protected in so complying.

 

(h) Election
of Remedies.  Agent shall have the right in Agent's sole discretion to determine which rights, security, Liens or remedies
Agent may at any time pursue, foreclose upon, relinquish, subordinate, modify or take any other action with respect to, without
in any way impairing, modifying or affecting any of Agent's other rights, security, Liens or remedies with respect to any Collateral
or any of Agent's rights or remedies under this Agreement or any other Loan Document.

 

(i) Agent's
Obligations.  Each Loan Party Obligor agrees that Agent shall not have any obligation to preserve rights to any Collateral
against prior parties or to marshal any Collateral of any kind for the benefit of any other creditor of any Loan Party Obligor
or any other Person. Agent shall not be responsible to any Loan Party Obligor or any other Person for loss or damage resulting
from Agent's failure to enforce its Liens or collect any Collateral or Proceeds or any monies due or to become due under the Obligations
or any other liability or obligation of any Loan Party Obligor to Agent.

 

(j) Waiver
of Rights by Loan Party Obligors.  Except as otherwise expressly provided for in this Agreement or by non-waivable applicable
law, each Loan Party waives (i) presentment, demand and protest and notice of presentment, dishonor, notice of intent to accelerate,
notice of acceleration, protest, default, nonpayment, maturity, release, compromise, settlement, extension or renewal of any or
all commercial paper, accounts, contract rights, documents, instruments, chattel paper and guaranties at any time held by Agent
on which any Loan Party Obligor may in any way be liable, and hereby ratifies and confirms whatever Agent may do in this regard,
(ii) all rights to notice and a hearing prior to Agent's taking possession or control of, or to Agent's replevy, attachment or
levy upon, the Collateral or any bond or security which might be required by any court prior to allowing Agent to exercise any
of its remedies and (iii) the benefit of all valuation, appraisal, marshaling and exemption laws. If any notice of a proposed sale
or other disposition of any part of the Collateral is required under applicable law, each Loan Party Obligor agrees that ten (10)
calendar days prior notice of the time and place of any public sale and of the time after which any private sale or other disposition
is to be made is commercially reasonable.

 

12.       LOAN GUARANTY.

 

12.1. Guaranty.
Each Loan Party Obligor hereby agrees that it is jointly and severally liable for, and absolutely and unconditionally guaranties
to Agent, for the ratable benefit of the Lenders, the prompt payment when due, whether at stated maturity, upon acceleration or
otherwise, and at all times thereafter, all of the Obligations and all costs and expenses, including all court costs and attorneys'
and paralegals' fees (including internal and external counsel and paralegals) and expenses of Agent or any Lender in endeavoring
to collect all or any part of the Obligations from, or in prosecuting any action against, any Borrower, any Loan Party Obligor
or any Other Obligor of all or any part of the Obligations (and such costs and expenses paid or incurred shall be deemed to be
included in the Obligations). Each Loan Party Obligor further agrees that the Obligations may be extended or renewed in whole or
in part without notice to or further assent from it, and that it remains bound upon its guaranty notwithstanding
any such extension or renewal. All terms of this Loan Guaranty apply to and may be enforced by or on behalf of any branch or Affiliate
of Agent that extended any portion of the Obligations.

 

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12.2. Guaranty
of Payment. This Loan Guaranty is a guaranty of payment and not of collection. Each Loan Party Obligor waives any right to
require Agent to sue or otherwise take action against any Borrower, any other Loan Party Obligor, any Other Obligor, or any other
Person obligated for all or any part of the Obligations, or otherwise to enforce its payment against any Collateral securing all
or any part of the Obligations.

 

12.3. No Discharge or Diminishment of Loan Guaranty.

 

(a) Except
as otherwise expressly provided for herein, the obligations of each Loan Party Obligor hereunder are unconditional and absolute
and not subject to any reduction, limitation, impairment or termination for any reason (other than the indefeasible payment in
full in cash of all of the Obligations), including: (i) any claim of waiver, release, extension, renewal, settlement, surrender,
alteration, or compromise of any of the Obligations, by operation of law or otherwise; (ii) any change in the corporate existence,
structure or ownership of any Borrower or any Obligor; (iii) any insolvency, bankruptcy, reorganization or other similar proceeding
affecting any Borrower or any Obligor or their respective assets or any resulting release or discharge of any obligation of any
Borrower or any Obligor; or (iv) the existence of any claim, setoff or other rights which any Loan Party Obligor may have at any
time against any Borrower, any Obligor, Agent, or any other Person, whether in connection herewith or in any unrelated transactions.

 

(b) The obligations
of each Loan Party Obligor hereunder are not subject to any defense or setoff, counterclaim, recoupment, or termination whatsoever
by reason of the invalidity, illegality or unenforceability of any of the Obligations or otherwise, or any provision of applicable
law or regulation purporting to prohibit payment by any Borrower or any Obligor of the Obligations or any part thereof.

 

(c) Further,
the obligations of any Loan Party Obligor hereunder shall not be discharged or impaired or otherwise affected by: (i) the failure
of Agent to assert any claim or demand or to enforce any remedy with respect to all or any part of the Obligations; (ii) any waiver
or modification of or supplement to any provision of any agreement relating to the Obligations; (iii) any release, non-perfection
or invalidity of any indirect or direct security for all or any part of the Obligations or all or any part of any obligations of
any Obligor; (iv) any action or failure to act by Agent with respect to any Collateral; or (v) any default, failure or delay, willful
or otherwise, in the payment or performance of any of the Obligations, or any other circumstance, act, omission or delay that might
in any manner or to any extent vary the risk of such Loan Party Obligor or that would otherwise operate as a discharge of any Loan
Party Obligor as a matter of law or equity (other than the indefeasible payment in full in cash of all of the Obligations).

 

12.4.
Defenses Waived. To the fullest extent permitted by applicable law, each Loan Party Obligor hereby waives any defense based
on or arising out of any defense of any Loan Party Obligor or the unenforceability of all or any part of the Obligations from any
cause, or the cessation from any cause of the liability of any Loan Party Obligor, other than the indefeasible payment in full
in cash of all of the Obligations. Without limiting the generality of the foregoing, each Loan Party Obligor irrevocably waives
acceptance hereof, presentment, demand, protest and, to the fullest extent permitted by law, any notice not provided for herein,
as well as any requirement that at any time any action be taken by any Person against any Borrower, any Obligor, or any other Person.
Each Loan Party Obligor confirms that it is not a surety under any state law and shall not raise any such law as a defense to its
obligations hereunder. Agent may, at its election, foreclose on any Collateral held by it by one or more judicial or nonjudicial sales,
accept an assignment of any such Collateral in lieu of foreclosure or otherwise act or fail to act with respect to any Collateral,
compromise or adjust any part of the Obligations, make any other accommodation with any Borrower or any Obligor or exercise any
other right or remedy available to it against any Borrower or any Obligor, without affecting or impairing in any way the liability
of any Loan Party Obligor under this Loan Guaranty except to the extent the Obligations have been fully and indefeasibly paid in
cash. To the fullest extent permitted by applicable law, each Loan Party Obligor waives any defense arising out of any such election
even though that election may operate, pursuant to applicable law, to impair or extinguish any right of reimbursement or subrogation
or other right or remedy of any Loan Party Obligor against any Borrower or any Obligor or any security.

 

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12.5.
Rights of Subrogation. No Loan Party Obligor will assert any right, claim or cause of action, including a claim of subrogation,
contribution or indemnification that it has against any Borrower or any Obligor, or any Collateral, until the Termination Date.

 

12.6.
Reinstatement; Stay of Acceleration. If at any time any payment of any portion of the Obligations is rescinded or must otherwise
be restored or returned upon the insolvency, bankruptcy or reorganization of any Borrower or any other Person, or otherwise, each
Loan Party Obligor's obligations under this Loan Guaranty with respect to that payment shall be reinstated at such time as though
the payment had not been made and whether or not Agent is in possession of this Loan Guaranty. If acceleration of the time for
payment of any of the Obligations is stayed upon the insolvency, bankruptcy or reorganization of any Borrower, all such amounts
otherwise subject to acceleration under the terms of any agreement relating to the Obligations shall nonetheless be payable by
the Loan Party Obligors forthwith on demand by Agent. This Section 12.6 shall remain operative even after the Termination Date
and shall survive the payment in full of all of the Loans.

 

12.7.
Information. Each Loan Party Obligor assumes all responsibility for being and keeping itself informed of each Borrower's financial
condition and assets, and of all other circumstances bearing upon the risk of nonpayment of the Obligations and the nature, scope
and extent of the risks that each Loan Party Obligor assumes and incurs under this Loan Guaranty, and agrees that Agent shall not
have any duty to advise any Loan Party Obligor of information known to it regarding those circumstances or risks.

 

12.8.
Termination. To the maximum extent permitted by law, each Loan Party Obligor hereby waives any right to revoke this Loan Guaranty
as to future Obligations. If such a revocation is effective notwithstanding the foregoing waiver, each Loan Party Obligor acknowledges
and agrees that (a) no such revocation shall be effective until written notice thereof has been received by Agent, (b) no such
revocation shall apply to any Obligations in existence on the date of receipt by Agent of such written notice (including any subsequent
continuation, extension, or renewal thereof, or change in the interest rate, payment terms or other terms and conditions thereof),
(c) no such revocation shall apply to any Obligations made or created after such date to the extent made or created pursuant to
a legally binding commitment of Agent, (d) no payment by any Borrower, any other Loan Party Obligor, or from any other source,
prior to the date of Agent's receipt of written notice of such revocation shall reduce the maximum obligation of any Loan Party
Obligor hereunder and (e) any payment, by any Borrower or from any source other than a Loan Party Obligor which has made such a
revocation, made subsequent to the date of such revocation, shall first be applied to that portion of the Obligations as to which
the revocation is effective and which are not, therefore, guarantied hereunder, and to the extent so applied shall not reduce the
maximum obligation of any Loan Party Obligor hereunder.

 

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12.9. Maximum Liability.
The provisions of this Loan Guaranty are severable, and in any action or proceeding involving any state corporate law, or any
state, federal or foreign bankruptcy, insolvency, reorganization or other law affecting the rights of creditors generally, if
the obligations of any Loan Party Obligor under this Loan Guaranty would otherwise be held or determined to be avoidable, invalid
or unenforceable on account of the amount of such Loan Party Obligor's liability under this Loan Guaranty, then, notwithstanding
any other provision of this Loan Guaranty to the contrary, the amount of such liability shall, without any further action by the
Loan Party Obligors, Agent or any Lender, be automatically limited and reduced to the highest amount that is valid and enforceable
as determined in such action or proceeding (such highest amount determined hereunder being the relevant Loan Party Obligor's "Maximum
Liability"). This Section 12.9 with respect to the Maximum Liability of each Loan Party Obligor is intended solely
to preserve the rights of Agent and the Lenders to the maximum extent not subject to avoidance under applicable law, and no Loan
Party Obligor or any other Person shall have any right or claim under this Section with respect to such Maximum Liability, except
to the extent necessary so that the obligations of any Loan Party Obligor hereunder shall not be rendered voidable under applicable
law. Each Loan Party Obligor agrees that the Obligations may at any time and from time to time exceed the Maximum Liability of
each Loan Party Obligor without impairing this Loan Guaranty or affecting the rights and remedies of Agent hereunder; provided,
that nothing in this sentence shall be construed to increase any Loan Party Obligor's obligations hereunder beyond its Maximum
Liability.

 

12.10.
Contribution. In the event any Loan Party Obligor shall make any payment or payments under this Loan Guaranty or shall suffer
any loss as a result of any realization upon any collateral granted by it to secure its obligations under this Loan Guaranty (such
Loan Party Obligor a "Paying Guarantor"), each other Loan Party Obligor (each a "Non-Paying
Guarantor") shall contribute to such Paying Guarantor an amount equal to such Non-Paying Guarantor's "Applicable
Percentage" of such payment or payments made, or losses suffered, by such Paying Guarantor. For purposes of this Section
12.10, each Non-Paying Guarantor's "Applicable Percentage" with respect to any such payment or loss by
a Paying Guarantor shall be determined as of the date on which such payment or loss was made by reference to the ratio of (x) such
Non-Paying Guarantor's Maximum Liability as of such date (without giving effect to any right to receive, or obligation to make,
any contribution hereunder) or, if such Non-Paying Guarantor's Maximum Liability has not been determined, the aggregate amount
of all monies received by such Non-Paying Guarantor from any Borrower after the date hereof (whether by loan, capital infusion
or by other means) to (y) the aggregate Maximum Liability of all Loan Party Obligors hereunder (including such Paying Guarantor)
as of such date (without giving effect to any right to receive, or obligation to make, any contribution hereunder), or to the extent
that a Maximum Liability has not been determined for any Loan Party Obligor, the aggregate amount of all monies received by such
Loan Party Obligors from any Borrower after the date hereof (whether by loan, capital infusion or by other means). Nothing in this
provision shall affect any Loan Party Obligor's several liability for the entire amount of the Obligations (up to such Loan Party
Obligor's Maximum Liability). Each of the Loan Party Obligors covenants and agrees that its right to receive any contribution under
this Loan Guaranty from a Non-Paying Guarantor shall be subordinate and junior in right of payment to the payment in full in cash
of all of the Obligations. This provision is for the benefit of Agent and the Lenders and the Loan Party Obligors and may be enforced
by any one, or more, or all of them, in accordance with the terms hereof.

 

12.11. Liability Cumulative. The liability of each
Loan Party Obligor under this Section 12 is in addition to and shall be cumulative with all liabilities of each Loan Party
Obligor to Agent and the Lenders under this Agreement and the other Loan Documents to which such Loan Party Obligor is a
party or in respect of any obligations or liabilities of the other Loan Parties, without any limitation as to amount, unless
the instrument or agreement evidencing or creating such other liability specifically provides to the contrary.

 

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12.12 Miscellaneous.
Each of the Loan Party Obligors hereby acknowledges and affirms that it understands that to the extent the Obligations are
secured by Real Property located in California, Loan Party Obligors shall be liable for the full amount of the liability
hereunder notwithstanding the foreclosure on such Real Property by trustee sale or any other reason impairing such
Guarantor's right to proceed against any Loan Party. In accordance with Section 2856 of the California Civil Code or any
similar laws of any other applicable jurisdiction, each of the Loan Party Obligors hereby

waives until such time as the Obligations have been paid in full:

 

(1) all rights
of subrogation, reimbursement, indemnification, and contribution and any other rights and defenses that are or may become available
to the Loan Party Obligors by reason of Sections 2787 to 2855, inclusive, 2899, and 3433 of the California Civil Code or any similar
laws of any other applicable jurisdiction;

 

(2) all
rights and defenses that the Loan Party Obligors may have because the Obligations are secured by Real Property located in California,
meaning, among other things, that: (A) Agent and the other Lenders may collect from the Loan Party Obligors without first foreclosing
on any real or personal property collateral pledged by any Borrower or any other Grantor, and (B) if Agent, on behalf of the Lenders,
forecloses on any Real Property collateral pledged by any Borrower or any other Grantor, (1) the amount of the Obligations may
be reduced only by the price for which that collateral is sold at the foreclosure sale, even if the collateral is worth more than
the sale price, and (2) the Agent and Lenders may collect from the Loan Party Obligors even if, by foreclosing on the Real Property
collateral, Agent or the other Lenders have destroyed or impaired any right the Loan Party Obligors may have to collect from any
other Grantor, it being understood that this is an unconditional and irrevocable waiver of any rights and defenses the Loan Party
Obligors may have because the Obligations are secured by Real Property (including, without limitation, any rights or defenses based
upon Sections 580a, 580d, or 726 of the California Code of Civil Procedure or any similar laws of any other applicable jurisdiction);
and

 

(3) all
rights and defenses arising out of an election of remedies by Agent or the other Lenders, even though that election of remedies,
such as a non-judicial foreclosure with respect to security for the Obligations, has destroyed Loan Party Obligors' rights of subrogation
and reimbursement against any Grantor by the operation of Section 580d of the California Code of Civil Procedure or any similar
laws of any other applicable jurisdiction or otherwise.

 

The provisions in this Section 12.12 which refer
to certain sections of the California Civil Code or the California Code of Civil Procedure are included in this Guaranty solely
out of an abundance of caution and shall not be construed to mean that any of the above-referenced provisions of California law
are in any way applicable to this Guaranty

 

13. PAYMENTS FREE OFTAXES; OBLIGATION TOWITHHOLD;
PAYMENTS ON ACCOUNT OF TAXES.

 

(a) Any and
all payments by or on account of any obligation of the Loan Party Obligors hereunder or under any other Loan Document shall to
the extent permitted by applicable laws be made free and clear of and without reduction or withholding for any Taxes. If, however,
applicable laws require the Loan Party Obligors to withhold or deduct any Tax, such Tax shall be withheld or deducted in accordance
with such laws as the case may be, upon the basis of the information and documentation to be delivered pursuant to subsection
(e) below.

 

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(b) If any Loan Party Obligor
shall be required by applicable law to withhold or deduct any Taxes from any payment, then (i) such Loan Party Obligor shall
withhold or make such deductions as are required based upon the information and documentation it has received pursuant to
subsection (e) below, (ii) such Loan Party Obligor shall timely pay the full amount withheld or deducted to the relevant
Governmental Authority in accordance with the applicable law and (iii) to the extent that the withholding or deduction is
made on account of Indemnified Taxes, the sum payable by the Loan Party Obligors shall be increased as necessary so that
after any required withholding or the making of all required deductions (including deductions applicable to additional sums
payable under this Section) the Recipient receives an amount equal to the sum it would have received had no such withholding
or deduction been made. Upon request by Agent or other Recipient, Borrower Representative shall deliver to Agent or such
other Recipient, as the case may be, the original or a certified copy of a receipt issued by such Governmental Authority
evidencing such payment of Indemnified Taxes, a copy of any return required by applicable law to report such payment or other
evidence of such payment reasonably satisfactory to Agent or such other Recipient, as the case may be.

 

(c) Without
limiting the provisions of subsections (a) and (b) above, the Loan Party Obligors shall timely pay any Other Taxes to the relevant
Governmental Authority in accordance with applicable law.

 

(d) Without
limiting the provisions of subsections (a) through (c) above, each Loan Party Obligor shall, and does hereby, on a joint and several
basis, indemnify Agent, each Lender and each other Recipient (and their respective directors, officers, employees, affiliates and
agents) and shall make payment in respect thereof within ten days after demand therefor, for the full amount of any Indemnified
Taxes and Other Taxes (including Indemnified Taxes and Other Taxes imposed or asserted on or attributable to amounts payable under
this Section) paid or incurred by Agent, any Lender or any other Recipient on account of, or in connection with any Loan Document
or a breach by a Loan Party Obligor thereof, and any penalties, interest and related expenses and losses arising therefrom or with
respect thereto (including the fees, charges and disbursements of any internal or external counsel or other tax advisor for Agent,
any Lender or any other Recipient (or their respective directors, officers, employees, affiliates, and agents)), whether or not
such Indemnified Taxes or Other Taxes were correctly or legally imposed or asserted by the relevant Governmental Authority. A certificate
as to the amount of any such payment or liability delivered to Borrower Representative shall be conclusive absent manifest error.
Notwithstanding any provision in this Agreement to the contrary, this Section 13 shall remain operative even after the Termination
Date and shall survive the payment in full of all of the Loans.

 

(e) Each Lender
shall deliver to Borrower Representative and each Lender and each Participant shall deliver to Agent, at the time or times prescribed
by applicable laws, such properly completed and executed documentation prescribed by applicable laws or by the taxing authorities
of any jurisdiction and such other reasonably requested information as will permit Borrower Representative or Agent, as the case
may be, to determine (x) whether or not payments made hereunder or under any other Loan Document are subject to Taxes, (y) if applicable,
the required rate of withholding or deduction and (z) such Lender's or Participant's entitlement to any available exemption from,
or reduction of, applicable Taxes in respect of all payments to be made to such Recipient by the Loan Party Obligors pursuant to
this Agreement or otherwise to establish such Recipient's status for withholding tax purposes in the applicable jurisdiction; provided,
that each Recipient shall only be required to deliver such documentation as it may legally provide. Without limiting the generality
of the foregoing, if a Borrower is resident for tax purposes in the United States:

 

(i) each Lender
(or Participant) that is a "United States person" within the meaning of Section 7701(a)(30) of the Code
shall deliver to Borrower Representative and Agent (or any Lender granting a participation as applicable) an executed original
of Internal Revenue Service Form W-9 or such other documentation or information prescribed by applicable law or reasonably requested
by Borrower Representative or Agent (or Lender granting a participation) as will enable Borrower Representative or Agent (or Lender
granting a participation) as the case may be, to determine whether or not such Lender (or
Participant) is subject to backup withholding or information reporting requirements under the Code;

 

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(ii) each
Lender (or Participant) that is not a "United States person" within the meaning of Section 7701(a)(30)
of the Code (a "Non-U.S. Recipient") shall deliver to Borrower Representative and Agent (or any Lender
granting a participation in case the Non-U.S. Recipient is a Participant) on or prior to the date on which such Non-U.S. Person
becomes a party to this Agreement or a Participant (and from time to time thereafter upon the reasonable request of Borrower Representative
or Agent but only if such Non-U.S. Recipient is legally entitled to do so), whichever of the following is applicable: (A) executed
originals of Internal Revenue Service Form W-8BEN claiming eligibility for benefits of an income tax treaty to which the United
States is a party; (B) executed originals of Internal Revenue Service Form W-8ECI; (C) executed originals of Internal Revenue
Service Form W-8IMY and all required supporting documentation; (D) each Non-U.S. Recipient claiming the benefits of the exemption
for portfolio interest under section 881(c) of the Code, shall provide (x) a certificate to the effect that such Non-U.S. Recipient
is not (1) a "bank" within the meaning of section 881(c)(3)(A) of the Code, (2) a "10 percent
shareholder" of Borrowers within the meaning of section 881(c)(3)(B) of the Code, or (3) a "controlled
foreign corporation" described in section 881(c)(3)(C) of the Code and (y) executed originals of Internal Revenue
Service Form W-8BEN; and/or (E) executed originals of any other form prescribed by applicable law (including FATCA) as a basis
for claiming exemption from or a reduction in United States Federal withholding tax together with such supplementary documentation
as may be prescribed by applicable law to permit Borrower Representative or Agent to determine the withholding or deduction required
to be made. Each Non-U.S. Recipient shall promptly notify Borrower Representative and Agent (or any Lender granting a participation
if the Non-U.S. Recipient is a Participant) of any change in circumstances which would modify or render invalid any claimed exemption
or reduction.

 

14. AGENT

 

14.1. Appointment.
Each of the Lenders hereby irrevocably appoints Agent as its agent and authorizes Agent to take such actions on its behalf, including
execution of the other Loan Documents, and to exercise such powers as are delegated to Agent by the terms of the Loan Documents,
together with such actions and powers as are reasonably incidental thereto. Without limiting the generality of the foregoing, Agent
shall have the sole and exclusive authority to (a) act as the disbursing and collecting agent for Lenders with respect to all payments
and collections arising in connection with the Loan Documents; (b) execute and deliver as Agent, each Loan Document, including
any intercreditor or subordination agreement, and accept delivery of each Loan Document; (c) make Loans, for itself or on behalf
of Lenders, as provided in the Loan Documents, (d) act as collateral agent for Lenders for purposes of perfecting and administering
Liens under the Loan Documents, and for all other purposes stated therein and execute or file any and all financing or similar
statements or notices, amendments, renewals, supplements, documents, instruments, proofs of claim, notices and other written agreements
with respect to the Loan Documents; (e) manage, supervise or otherwise deal with Collateral; (f) exclusively receive, apply, and
distribute payments and proceeds of the Collateral as provided in the Loan Documents, (g) open and maintain such bank accounts
and cash management arrangements as Agent deems necessary and appropriate in accordance with the Loan Documents, (h) take any Enforcement
Action or otherwise exercise any rights or remedies with respect to any Collateral or under any Loan Documents, applicable law
or otherwise, including the determination of eligibility of Accounts and Inventory, the necessity and amount of Reserves and all
other determinations and decisions relating to ordinary course administration of the credit facilities contemplated hereunder;
and (i) incur and pay such expenses as Agent may deem necessary or appropriate for the performance and fulfillment of its functions
and powers pursuant to the Loan Documents, whether or not any Loan Party is obligated to reimburse Agent or Lenders for such expenses
pursuant to the Loan Documents or otherwise. The provisions of this Article are solely for the benefit of Agent and the Lenders,
and the Loan Parties shall not have rights as a third-party beneficiary of any of such provisions. It is understood and agreed
that the use of the term "agent" as used herein or in any other Loan Documents (or any similar term) with reference to
Agent is not intended to connote any fiduciary or other implied (or express) obligations arising under agency doctrine of any applicable
law. Instead, such term is used as a matter of market custom, and is intended to create or reflect only an administrative relationship
between independent contracting parties.

 

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14.2.
Rights as a Lender. The Person serving as Agent hereunder, if it is a Lender, shall have the same rights and powers in its
capacity as a Lender as any other Lender and may exercise the same as though it were not Agent, and such Person and its Affiliates
may accept deposits from, lend money to and generally engage in any kind of business with any Loan Party or any Subsidiary or any
Affiliate thereof as if it were not Agent hereunder without notice to or consent of the other Lenders.

 

14.3.
Duties and Obligations. Agent shall not have any duties or obligations except those expressly set forth in the Loan Documents.
Without limiting the generality of the foregoing, (a) Agent shall not be subject to any fiduciary or other implied duties, regardless
of whether a Default has occurred and is continuing, (b) Agent shall not have any duty to take any discretionary action or exercise
any discretionary powers, except discretionary rights and powers expressly contemplated by the Loan Documents that Agent is required
to exercise as directed in writing by the Required Lenders, and, (c) except as expressly set forth in the Loan Documents, Agent
shall not have any duty to disclose, and shall not be liable for the failure to disclose, any information relating to any Loan
Party or any Subsidiary that is communicated to or obtained by the Person serving as Agent or any of its Affiliates in any capacity.
Agent shall not be liable for any action taken or not taken by it with the consent or at the request of the Required Lenders or
in the absence of its own gross negligence or willful misconduct as determined by a final nonappealable judgment of a court of
competent jurisdiction. Agent shall be deemed not to have knowledge of any Default unless and until written notice thereof is given
to Agent by a Borrower or a Lender, and Agent shall not be responsible for or have any duty to ascertain or inquire into (i) any
statement, warranty or representation made in or in connection with any Loan Document, (ii) the contents of any certificate, report
or other document delivered hereunder or in connection with any Loan Document, (iii) the performance or observance of any of the
covenants, agreements or other terms or conditions set forth in any Loan Document, (iv) the validity, enforceability, effectiveness
or genuineness of any Loan Document or any other agreement, instrument or document, (v) the creation, perfection or priority of
Liens on the ABL Priority Collateral or the existence of the ABL Priority Collateral, or (vi) the satisfaction of any condition
set forth in Article IV or elsewhere in any Loan Document, other than to confirm receipt of items expressly required to be delivered
to Agent. Agent shall be under no obligation to any Lender to ascertain or to inquire as to the observance or performance of any
of the agreements contained in, or conditions of, this Agreement or any other Loan Document, or to inspect the books and records
or properties of any Loan Party.

 

14.4.
Reliance. Agent shall be entitled to rely upon, and shall not incur any liability for relying upon, any notice, request,
certificate, consent, statement, instrument, document or other writing believed by it to be genuine and to have been signed
or sent by the proper Person. Agent also may rely upon any statement made to it orally or by telephone and believed by it to
be made by the proper Person, and shall not incur any liability for relying thereon. Agent may consult with and employ Agent
Professionals, and shall be entitled to act upon, and shall be fully protected in any action taken in good faith reliance
upon, any advice given by an Agent Professional (who may be counsel for any Borrower), independent accountants and other
experts selected by it, and shall not be liable for any action taken or not taken by it in accordance with the advice of any
such counsel, accountants or experts. Agent shall be fully justified in failing or refusing to take any action under this
Agreement or any other Loan Document, unless Agent shall first receive such advice or concurrence of the Lenders as it deems
appropriate and until such instructions are received, Agent shall act, or refrain from acting, as it deems advisable. If
Agent so requests, it shall first be indemnified to its reasonable satisfaction by the Lenders against any and
all liability and expense that may be incurred by it by reason of taking or continuing to take any such action. Agent shall in
all cases be fully protected in acting, or in refraining from acting, under this Agreement or any other Loan Document in accordance
with a request or consent of the Required Lenders and such request and any action taken or failure to act pursuant thereto shall
be binding upon all of the Lenders.

 

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14.5. Actions
through Sub-Agents. Agent may perform any and all of its duties and exercise its rights and powers by or through any one or
more sub-agents appointed by Agent. Agent may also perform its duties through employees and other Agent-Related Persons. Agent
shall not be responsible for the negligence or misconduct of any sub-agent, employee or Agent Professional that it selects as long
as such selection was made without gross negligence or willful misconduct. Agent and any such sub-agent may perform any and all
of its duties and exercise its rights and powers through their respective Affiliates and other related parties. The exculpatory
provisions of the preceding paragraphs shall apply to any such sub-agent and to the related parties of Agent and any such sub-
agent, and shall apply to their respective activities in connection with the syndication of the credit facilities provided for
herein as well as activities as Agent.

 

14.6.
Resignation. Subject to the appointment and acceptance of a successor Agent as provided in this paragraph, Agent may resign
at any time by notifying the Lenders and Borrower Representative. Upon any such resignation, the Required Lenders shall have the
right, in consultation with Borrower Representative, to appoint a successor. If no successor shall have been so appointed by the
Required Lenders and shall have accepted such appointment within thirty (30) days after the retiring Agent gives notice of its
resignation, then the retiring Agent may, on behalf of the Lenders, appoint a successor Agent. Upon the acceptance of its appointment
as Agent hereunder by its successor, such successor shall succeed to and become vested with all the rights, powers, privileges
and duties of the retiring Agent, and the retiring Agent shall be discharged from its duties and obligations hereunder and under
the other Loan Documents. The fees payable by Borrowers to a successor Agent shall be the same as those payable to its predecessor,
unless otherwise agreed by Borrower Representative and such successor. Notwithstanding the foregoing, in the event no successor
Agent shall have been so appointed and shall have accepted such appointment within thirty (30) days after the retiring Agent gives
notice of its intent to resign, the retiring Agent may give notice of the effectiveness of its resignation to the Lenders and Borrower
Representative, whereupon, on the date of effectiveness of such resignation stated in such notice, (a) the retiring Agent shall
be discharged from its duties and obligations hereunder and under the other Loan Documents, provided that, solely for purposes
of maintaining any security interest granted to the Agent under any Loan Document for the benefit of the Lenders, the retiring
Agent shall continue to be vested with such security interest as collateral agent for the benefit of the Lenders and, in the case
of any Collateral in the possession of Agent, shall continue to hold such Collateral, in each case until such time as a successor
Agent is appointed and accepts such appointment in accordance with this paragraph (it being understood and agreed that the retiring
Agent shall have no duly or obligation to take any further action under any Loan Document, including any action required to maintain
the perfection of any such security interest), and (b) the Required Lenders shall succeed to and become vested with all the rights,
powers, privileges and duties of the retiring Agent, provided that (i) all payments required to be made hereunder or under any
other Loan Document to the Agent for the account of any Person other than Agent shall be made directly to such Person and (ii)
all notices and other communications required or contemplated to be given or made to Agent shall also directly be given or made
to each Lender. Following the effectiveness of the Agent's resignation from its capacity as such, the provisions of this Article,
as well as any exculpatory, reimbursement and indemnification provisions set forth in any other Loan Document, shall continue in
effect for the benefit of such retiring Agent, its sub-agents and their respective related parties in respect of any actions taken
or omitted to be taken by any of them while it was acting as Agent and in respect of the matters referred to in the proviso under
clause (a) above.

 

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14.7. Non-Reliance.

 

(a) Each Lender
acknowledges and agrees that none of the Agent-Related Persons has made any representation or warranty to it, and that no act by
Agent hereinafter taken, including any review of the affairs of Borrowers and their respective Subsidiaries or Affiliates, shall
be deemed to constitute any representation or warranty by any Agent-Related Person to any Lender. Each Lender further acknowledges
the extensions of credit made hereunder are commercial loans and not investments in a business enterprise or securities. Each Lender
further represents that it is engaged in making, acquiring or holding commercial loans in the ordinary course of its business and
has, independently and without reliance upon any Agent-Related Person, any arranger of this credit facility or any amendment thereto
or any other Lender and based on such due diligence, documents and information as it has deemed appropriate, made its own appraisal
of and investigation into the business, prospects, operations, property, financial and other condition and creditworthiness of
any Borrower or any other Person party to a Loan Document, and all applicable laws relating to the transactions contemplated hereby,
and made its own credit analysis and decision to enter into this Agreement as a Lender, and to make, acquire or hold Loans hereunder.
Each Lender shall, independently and without reliance upon any Agent-Related Person, any arranger of this credit facility or any
amendment thereto or any other Lender and based on such documents and information (which may contain material, non- public information
within the meaning of the United States securities laws concerning any Borrower and its Affiliates) as it shall from time to time
deem appropriate, continue to make its own credit analysis and decisions in taking or not taking action under or based upon this
Agreement, any other Loan Document, any related agreement or any document furnished hereunder or thereunder , and to make such
investigations as it deems necessary to inform itself as to the business, prospects, operations, property, financial and other
condition and creditworthiness of any Borrower or any other Person party to a Loan Document and in deciding whether or to the extent
to which it will continue as a Lender or assign or otherwise transfer its rights, interests and obligations hereunder. Except for
notices, reports, and other documents expressly herein required to be furnished to the Lenders by Agent, Agent shall not have any
duty or responsibility to provide any Lender with any credit or other information concerning the business, prospects, operations,
property, financial and other condition or creditworthiness of any Borrower or any other Person party to a Loan Document that may
come into the possession of any of the Agent-Related Persons. Each Lender acknowledges that Agent does not have any duty or responsibility,
either initially or on a continuing to provide such Lender with any credit or other information with respect to any Borrower, its
Affiliates or any of their respective business, legal, financial or other affairs, and irrespective of whether such information
came into Agent's or its Affiliates’ or representatives’ possession before or after the date on which such Lender became
a party to this Agreement.

 

(b) Each
Lender hereby agrees that (i) it has requested a copy of each appraisal, audit or field examination report prepared by or on behalf
of Agent; (ii) Agent (A) makes no representation or warranty, express or implied, as to the completeness or accuracy of any such
report or any of the information contained therein or any inaccuracy or omission contained in or relating to any such report and
(B) shall not be liable for any information contained in any such report; (iii) such reports are not comprehensive audits or examinations,
and that any Person performing any field examination will inspect only specific information regarding the Loan Parties and will
rely significantly upon the Loan Parties' books and records, as well as on representations of the Loan Parties' personnel and that
Agent undertakes no obligation to update, correct or supplement such reports; (iv) it will keep all such reports confidential and
strictly for its internal use, not share any such report with any Loan Party or any other Person except as otherwise permitted
pursuant to this Agreement; and (v) without limiting the generality of any other indemnification provision contained in this Agreement,
(A) it will hold Agent and any such other Person preparing any such report harmless from any action the indemnifying Lender may
take or conclusion the indemnifying Lender may reach or draw from any such report in connection with any extension of credit that
the indemnifying Lender has made or may make to any
Borrower, or the indemnifying Lender's participation in, or the indemnifying Lender's purchase of, a Loan or Loans; and (B) it
will pay and protect, and indemnify, defend, and hold Agent and any such other Person preparing any such report harmless from and
against, the claims, actions, proceedings, damages, costs, expenses, and other amounts (including reasonable attorneys' fees of
both internal and external counsel) of Agent or any such other Person as the direct or indirect result of any third parties who
might obtain all or part of any such report through the indemnifying Lender.

 

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14.8. Not Partners or Co-Venturers;
Agent as Representative of the Secured Parties.

 

(a) The
Lenders are not partners or co-venturers, and no Lender shall be liable for the acts or omissions of, or (except as otherwise
set forth herein in the case of Agent) authorized to act for, any other Lender. Agent shall have the exclusive right on
behalf of the Lenders to enforce the payment of the principal of and interest on any Loan after the date such principal or
interest has become due and payable pursuant to the terms of this Agreement.

 

(b) In its
capacity, Agent is a "representative" of the Lenders within the meaning of the term "secured party" as defined
in the UCC or a “person who holds a security interest for the benefit” of the Lenders within the meaning of the term
 “secured party” as defined in the PPSA. Each Lender authorizes Agent to enter into each of the Loan Documents to which
it is a party and to take all action contemplated by such documents. Each Lender agrees that no Lender (other than Agent) shall
have the right individually to seek to realize upon the security granted by any Loan Document, it being understood and agreed that
such rights and remedies may be exercised solely by Agent for the benefit of the Lenders upon the terms of the Loan Documents.
In the event that any Collateral is hereafter pledged by any Person as collateral security for the Obligations, Agent is hereby
authorized, and hereby granted a power of attorney, to execute and deliver on behalf of the Lenders any Loan Documents necessary
or appropriate to grant and perfect a Lien on such Collateral in favor of Agent on behalf of the Lenders.

 

(c) Agent hereby
appoints each other Lender as its agent (and each Lender hereby accepts such appointment) for the purpose of perfecting Agent’s
Liens in assets which can be perfected by possession or control in accordance with Article 8 or Article 9, as applicable, of the
UCC or the equivalent provisions of the applicable PPSA. Should any Lender obtain possession or control of any such Collateral,
such Lender shall notify Agent thereof, and, promptly upon Agent’s request therefor shall deliver possession or control of
such Collateral to Agent or in accordance with Agent’s instructions. Agent shall have no obligation whatsoever to any of
the Lenders (i) to verify or assure that the Collateral exists or is owned by any Borrower or its Subsidiaries or is cared for,
protected, or insured or has been encumbered, (ii) to verify or assure that Agent’s Liens have been properly or sufficiently
or lawfully created, perfected, protected, or enforced or are entitled to any particular priority, (iii) to verify or assure that
any particular items of Collateral meet the eligibility criteria applicable in respect thereof, (iv) to impose, maintain, increase,
reduce, implement or eliminate any particular reserve hereunder or to determine whether the amount of any reserve is appropriate
or not, or (v) 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 pursuant to any of the Loan Documents, it being
understood and agreed that in respect of the Collateral, or any act, omission, or event related thereto, subject to the terms and
conditions contained herein,

 

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14.9.
Credit Bidding. The Loan Parties and the Lenders hereby irrevocably authorize Agent, based upon the instruction of the
Required Lenders, to Credit Bid and purchase (either directly or through one or more acquisition vehicles) all or any portion
of the Collateral (and the Loan Parties shall approve Agent as a qualified bidder and such Credit Bid as qualified bid) at
any sale thereof conducted by Agent, based upon the instruction of the Required Lenders, under any provisions of the UCC or
PPSA, as part of any sale or investor solicitation process conducted by any Loan Party, any interim receiver, receiver,
receiver and manager, administrative receiver, trustee, agent or other Person pursuant or under any insolvency laws; provided,
however, that (i) the Required Lenders may not direct Agent in any manner that does not treat each of the Lenders equally,
without preference or discrimination, in respect of consideration received as a result of the Credit Bid, (ii) the
acquisition documents shall be commercially reasonable and contain customary protections for minority holders such as among
other things, anti-dilution and tag-along rights, (iii) the exchanged debt or equity securities must be freely transferable,
without restriction (subject to applicable securities laws) and (iv) reasonable efforts shall be made to structure the
acquisition in a manner that causes the governance documents pertaining thereto to not impose any obligations or liabilities
upon the Lenders individually (such as indemnification obligations). Agent, based upon the instruction of the Required
Lenders, may accept non-cash consideration, including debt and equity securities issued by any entities used to consummate
such Credit Bid or purchase and in connection therewith Agent may reduce the Obligations owed to the Lenders (ratably based
upon the proportion of their Obligations credit bid in relation to the aggregate amount of Obligations so credit bid) based
upon the value of such non-cash consideration. For purposes of the preceding sentence, the term "Credit
Bid" shall mean, an offer submitted by Agent (on behalf of the Lender group), based upon the instruction of the
Required Lenders, to acquire the property of any Loan Party or any portion thereof in exchange for and in full and final
satisfaction of all or a portion (as determined by Agent, based upon the instruction of the Required Lenders) of the claims
and Obligations under this Agreement and other Loan Documents.

 

14.10.
Certain Collateral Matters. The Lenders irrevocably authorize Agent, at its option and in its discretion, (a) to release any
Lien granted to or held by Agent under any Loan Document (i) upon termination of the Commitments and payment in full of all Loans
and all other obligations of Borrowers hereunder; (ii) constituting property sold or to be sold or disposed of as part of or in
connection with any disposition permitted hereunder (including the release of any guarantor); or (iii) subject to Section 15.5
if approved, authorized or ratified in writing by the Required Lenders; or (ii) to subordinate its interest in any Collateral to
any holder of a Lien on such Collateral which is permitted by clause (a) of the definition of Permitted Liens (it being understood
that Agent may conclusively rely on a certificate from Borrower Representative in determining whether the Indebtedness secured
by any such Lien is permitted hereunder). Upon request by Agent at any time, the Lenders will confirm in writing Agent's authority
to release, or subordinate its interest in, particular types or items of Collateral pursuant to this Section 14.10. Agent may,
and at the direction of Required Lenders shall, give blockage notices in connection with any Subordinated Debt and each Lender
hereby authorizes Agent to give such notices. Each Lender further agrees that it will not act unilaterally to deliver such notices.

 

14.11.
Restriction on Actions by Lenders. Each Lender agrees that it shall not, without the express written consent of Agent, and
shall, upon the written request of Agent (to the extent it is lawfully entitled to do so), set off against the Obligations, any
amounts owing by such Lender to a Loan Party or any deposit accounts of any Loan Party now or hereafter maintained with such Lender.
Each of the Lenders further agrees that it shall not, unless specifically requested to do so in writing by Agent, take or cause
to be taken, any action, including the commencement of any legal or equitable proceedings to foreclose any loan or otherwise enforce
any security interest in any of the Collateral or to enforce all or any part of this Agreement or the other Loan Documents. All
Enforcement Actions under this Agreement and the other Loan Documents against the Loan Parties or any third party with respect
to the Obligations or the Collateral may only be taken by Agent (at the direction of the Required Lenders or as otherwise permitted
in this Agreement) or by its agents at the direction of Agent.

 

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14.12. Expenses. Agent
is authorized and directed to deduct and retain sufficient amounts from payments or proceeds of the Collateral received by
Agent to reimburse Agent for such out-of- pocket costs and expenses prior to the distribution of any amounts to Lenders. In
the event Agent is not reimbursed for such costs and expenses by a Loan Party, each Lender hereby agrees that it is and shall
be obligated to pay to Agent such Lender’s ratable share thereof. Without limitation of the foregoing, each Lender
shall reimburse Agent upon demand for such Lender’s ratable share of any costs or out of pocket expenses (including
Agent Professional fees and expenses) incurred by Agent in connection with the preparation, execution, delivery,
administration, modification, amendment, or enforcement (whether through negotiations, legal proceedings or otherwise) of, or
legal advice in respect of rights or responsibilities under, this Agreement or any other Loan Document to the extent that
Agent is not reimbursed for such expenses by or on behalf of Borrowers. The undertaking in this Section shall survive the
payment of all Obligations hereunder and the resignation or replacement of Agent.

 

14.13. Notice
of Default or Event of Default. Agent shall not be deemed to have knowledge or notice of the occurrence of any Default or Event
of Default, except with respect to defaults in the payment of principal, interest, fees, and expenses required to be paid to Agent
for the account of the Lenders and, except with respect to Events of Default of which Agent has actual knowledge, unless Agent
shall have received written notice from a Lender or Borrower referring to this Agreement, describing such Default or Event of Default,
and stating that such notice is a "notice of default." Agent will promptly notify the Lenders of its receipt of any such
notice or of any Event of Default of which Agent has actual knowledge. If any Lender obtains actual knowledge of any Event of Default,
such Lender promptly shall notify the other Lenders and Agent of such Event of Default. Agent shall take such action with respect
to such Default or Event of Default as may be requested by the Required Lenders in accordance with this Agreement; provided,
that unless and until Agent has received any such request, Agent may (but shall not be obligated to) take such action, or refrain
from taking such action, with respect to such Default or Event of Default as it shall deem advisable.

 

14.14. Liability
of Agent. None of the Agent-Related Persons shall (a) be liable for any action taken or omitted to be taken by any of them
under or in connection with this Agreement or any other Loan Document or the transactions contemplated hereby (except for its own
gross negligence or willful misconduct), or (b) be responsible in any manner to any of the Lenders for any recital, statement,
representation or warranty made by any Borrower or any of their respective Subsidiaries or Affiliates, or any officer or director
thereof, contained in this Agreement or in any other Loan Document, or in any certificate, report, statement or other document
referred to or provided for in, or received by Agent under or in connection with, this Agreement or any other Loan Document, or
the validity, effectiveness, genuineness, enforceability or sufficiency of this Agreement or any other Loan Document, or for any
failure of any Borrower, or any of their respective Subsidiaries or any other party to any Loan Document to perform its obligations
hereunder or thereunder. No Agent-Related Person shall be under any obligation to any Lenders to ascertain or to inquire as to
the observance or performance of any of the agreements contained in, or conditions of, this Agreement or any other Loan Document,
or to inspect the books and records or properties of any Borrower or their respective Subsidiaries. GENERAL PROVISIONS.

 

    	 	86	 

     

    

 

15.1. Notices.

 

(a) Notice
by Approved Electronic Communications. Agent and each of its Affiliates is authorized to transmit, post or otherwise make
or communicate, in its sole discretion (but shall not be required to do so), by Approved Electronic Communications in
connection with this Agreement or any other Loan Document and the transactions contemplated therein. Agent is hereby
authorized to establish procedures to provide access to and to make available or deliver, or to accept, notices, documents
and similar items by posting to ABLSoft. All uses of ABLSoft and other Approved Electronic Communications shall be governed
by and subject to, in addition to the terms of this Agreement, the separate terms, conditions and privacy policy posted or
referenced in such system (or such terms, conditions and privacy policy as may be updated from time to time, including on
such system) and any related contractual obligations executed by Agent and Loan Parties in connection with the use of such
system. Each of the Loan Parties, the Lenders and Agent hereby acknowledges and agrees that the use of ABLSoft and other
Approved Electronic Communications is not necessarily secure and that there are risks associated with such use, including
risks of interception, disclosure and abuse and each indicates it assumes and accepts such risks by hereby authorizing Agent
and each of its Affiliates to transmit Approved Electronic Communications. ABLSoft and all Approved Electronic Communications
shall be provided "as is" and "as available". None of Agent or any of its
Affiliates or related persons warrants the accuracy, adequacy or completeness of ABLSoft or any other electronic platform or
electronic transmission and disclaims all liability for errors or omissions therein. No warranty of any kind is made by Agent
or any of its Affiliates or related persons in connection with ABLSoft or any other electronic platform or electronic
transmission, including any warranty of merchantability, fitness for a particular purpose, non-infringement of third-party
rights or freedom from viruses or other code defects. Each Borrower and each other Loan Party executing this Agreement agrees
that Agent has no responsibility for maintaining or providing any equipment, software, services or any testing required in
connection with ABLSoft, any Approved Electronic Communication or otherwise required for ABLSoft or any Approved Electronic
Communication. Prior to the Closing Date, Borrower Representative shall deliver to Agent a complete and executed Client User
Form regarding Borrowers’ use of ABLSoft in the form of Exhibit C annexed hereto. No Approved Electronic Communications
shall be denied legal effect merely because it is made electronically. Approved Electronic Communications that are not
readily capable of bearing either a signature or a reproduction of a signature may be signed, and shall be deemed signed, by
attaching to, or logically associating with such Approved Electronic Communication, an E-Signature, upon which Agent and the
Loan Parties may rely and assume the authenticity thereof. Each Approved Electronic Communication containing a signature, a
reproduction of a signature or an E-Signature shall, for all intents and purposes, have the same effect and weight as a
signed paper original. Each E-Signature shall be deemed sufficient to satisfy any requirement for a "signature"
and each Approved Electronic Communication shall be deemed sufficient to satisfy any requirement for a "writing",
in each case including pursuant to this Agreement, any other Loan Document, the UCC, PPSA, the Federal Uniform Electronic
Transactions Act, the Electronic Signatures in Global and National Commerce Act and any similar Canadian laws governing the
electronic execution and delivery of agreements, documents, and instruments and any substantive or procedural law governing
such subject matter. Each party or beneficiary hereto agrees not to contest the validity or enforceability of an Approved
Electronic Communication or E-Signature under the provisions of any applicable law requiring certain documents to be in
writing or signed; provided, that nothing herein shall limit such party's or beneficiary's right to contest
whether an Approved Electronic Communication or E-Signature has been altered after transmission.

 

(b) All
Other Notices. All notices, requests, demands and other communications under or in respect of this Agreement or any transactions
hereunder, other than those approved for or required to be delivered by Approved Electronic Communications (including via ABLSoft
or otherwise pursuant to Section 15.1(a)), shall be in writing and shall be personally delivered or mailed (by prepaid registered
or certified mail, return receipt requested), sent by prepaid recognized overnight courier service, or by email to the applicable
party at its address or email address indicated below,

 

If to Agent:

 

ENCINA BUSINESS CREDIT, LLC,
as Agent

123 N Wacker Suite 2400

Chicago, IL 60606

Attention: Thomas Sullivan

Email: tsullivan@encinabc.com

 

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If to Borrower Representative,
any Borrower or any other Loan Party:

 

Hydrofarm, LLC

2249 S. McDowell Boulevard

Petaluma, CA 94954

Attention: Jeff Peterson, CFO Email: jeffp@hydrofarm.com

 

with a copy to:

 

Perkins Coie LLP

131 S. Dearborn Street Suite
1700

Chicago, IL 60603-5559

Attention: Teri Lindquist

Email:  tlindquist@perkinscoie.com

 

or, as to each party, at such
other address as shall be designated by such party in a written notice to the other party delivered as aforesaid. All such notices,
requests, demands and other communications shall be deemed given (i) when personally delivered, (ii) three Business Days after
being deposited in the mails with postage prepaid (by registered or certified mail, return receipt requested), (iii) one Business
Day after being delivered to the overnight courier service, if prepaid and sent overnight delivery, addressed as aforesaid and
with all charges prepaid or billed to the account of the sender or (iv) when sent by email transmission to an email address designated
by such addressee and the sender receives a confirmation of transmission.

 

15.2. Severability.
If any provision of this Agreement or any other Loan Document is held invalid or unenforceable, either in its entirety or by virtue
of its scope or application to given circumstances, such provision shall thereupon be deemed modified only to the extent necessary
to render same valid, or not applicable to given circumstances, or excised from this Agreement or such other Loan Document, as
the situation may require, and this Agreement and the other Loan Documents shall be construed and enforced as if such provision
had been included herein as so modified in scope or application, or had not been included herein or therein, as the case may be.

 

15.3. Integration.
This Agreement and the other Loan Documents represent the final, entire and complete agreement between each Loan Party that is
a party hereto and thereto and Agent and supersede all prior and contemporaneous negotiations, oral representations and agreements,
all of which are merged and integrated into this Agreement. THERE ARE NO ORAL UNDERSTANDINGS, REPRESENTATIONS OR AGREEMENTS BETWEEN
THE PARTIES THAT ARE NOT SET FORTH IN THIS AGREEMENT OR THE OTHER LOAN DOCUMENTS.

 

15.4.
Waivers. The failure of Agent and the Lenders at any time or times to require any Loan Party to strictly comply with any of
the provisions of this Agreement or any other Loan Documents shall not waive or diminish any right of Agent later to demand and
receive strict compliance therewith. Any waiver of any default shall not waive or affect any other default, whether prior or subsequent,
and whether or not similar. None of the provisions of this Agreement or any other Loan Document shall be deemed to have been waived
by any act or knowledge of Agent or its agents or employees, but only by a specific written waiver signed by an authorized officer
of Agent and any necessary Lenders and delivered to Borrowers. Once an Event of Default shall have occurred, it shall be deemed to continue to exist
and not be cured or waived unless specifically waived in writing by an authorized officer of Agent and Required Lenders and delivered
to Borrowers. Each Loan Party Obligor waives demand, protest, notice of protest and notice of default or dishonor, notice of payment
and nonpayment, release, compromise, settlement, extension or renewal of any commercial paper, Instrument, Account, General Intangible,
Document, Chattel Paper, Investment Property or guaranty at any time held by Agent on which such Loan Party Obligor is or may in
any way be liable, and notice of any action taken by Agent, unless expressly required by this Agreement, and notice of acceptance
hereof.

 

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15.5. Amendments.

 

(a) No amendment,
modification or waiver of, or consent with respect to, any provision of this Agreement or the other Loan Documents shall in any
event be effective unless the same shall be in writing and acknowledged by the Required Lenders, and then any such amendment, modification,
waiver or consent shall be effective only in the specific instance and for the specific purpose for which given; provided,
that, except to the extent set forth in Section 14.9 hereof, no amendment, modification, waiver or consent shall (i) extend or
increase the Commitment of any Lender without the written consent of such Lender, (ii) extend the date scheduled for payment of
any principal (excluding mandatory prepayments) of or interest on the Loans or any fees payable hereunder without the written consent
of each Lender directly affected thereby,, (iii) reduce the principal amount of any Loan, the rate of interest thereon or any fees
payable hereunder, without the consent of each Lender directly affected thereby; (iv) amend or modify the definitions of Borrowing
Base, Eligible Accounts or Eligible Inventory, or any components thereof (including any advance rates), without the written consent
of each Lender; or (v) release any guarantor from its obligations under any Guaranty, other than as part of or in connection with
any disposition permitted hereunder, or release or subordinate its liens on all or any substantial part of the Collateral granted
under any of the other Loan Documents (except as permitted by Section 14.10), change the definition of Required Lenders, any provision
of Section 6.2, any provision of this Section 15.4, the provisions of Section 14.9 or reduce the aggregate Pro Rata Share required
to effect an amendment, modification, waiver or consent, without, in each case set forth in this clause (v), the written consent
of all Lenders. No provision of Section 14 or other provision of this Agreement affecting Agent in its capacity as such shall be
amended, modified or waived without the consent of Agent.

 

(b) If, in
connection with any proposed amendment, modification, waiver or termination requiring the consent of all Lenders, the consent of
the Required Lenders is obtained, but the consent of other Lenders whose consent is required is not obtained (any such Lender whose
consent is not obtained being referred to as a "Non-Consenting Lender"), then, so long as Agent is not
a Non- Consenting Lender, Agent and/or a Person or Persons reasonably acceptable to Agent shall have the right to purchase from
such Non-Consenting Lenders, and such Non-Consenting Lenders agree that they shall, upon Agent's request, sell and assign to Agent
and/or such Person or Persons, all of the Loans and Commitments of such Non-Consenting Lenders for an amount equal to the principal
balance of all such Loans and Commitments held by such Non-Consenting Lenders and all accrued interest, fees, expenses and other
amounts then due with respect thereto through the date of sale, such purchase and sale to be consummated pursuant to an executed
Assignment and Assumption.

 

15.6. Time of Essence. Time is of the essence in
the performance by each Loan Party Obligor of each and every obligation under this Agreement and the other Loan
Documents.

 

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15.7. Expenses, Fee and Costs
Reimbursement. Each Borrower hereby agrees to promptly pay (a) all out of pocket costs and expenses of Agent (including the
reasonable out of pocket fees, costs and expenses of internal and external legal counsel to, and appraisers, accountants, consultants
and other professionals and advisors retained by or on behalf of, Agent) in connection with (i) all loan proposals and commitments
pertaining to the transactions contemplated hereby (whether or not such transactions are consummated), (ii) the examination, review,
due diligence investigation, documentation, negotiation, and closing of the transactions contemplated by the Loan Documents (whether
or not such transactions are consummated), (iii) the creation, perfection and maintenance of Liens pursuant to the Loan Documents,
(iv) the performance or enforcement by Agent of its rights and remedies under the Loan Documents (or determining whether or how
to perform or enforce such rights and remedies), (v) the administration of the Loans (including usual and customary fees for wire
transfers and other transfers or payments received by Agent on account of any of the Obligations) and Loan Documents, (vi) any
amendments, modifications, consents and waivers to and/or under any and all Loan Documents (whether or not such amendments, modifications,
consents or waivers are consummated), (vii) any periodic public record searches conducted by or at the request of Agent (including,
title investigations and public records searches), pending litigation and tax lien searches and searches of applicable corporate,
limited liability company, partnership and related records concerning the continued existence, organization and good standing
of certain Persons), (viii) protecting, storing, insuring, handling, maintaining, auditing, examining, valuing or selling any
Collateral, (ix) any litigation, dispute, suit or proceeding relating to any Loan Document (other than disputes among Lenders
or among Lenders and Agent) and (x) any workout, collection, bankruptcy, insolvency and other enforcement proceedings under any
and all of the Loan Documents (it being agreed that (A) such costs and expenses may include the costs and expenses of workout
consultants, investment bankers, financial consultants, appraisers, valuation firms and other professionals and advisors retained
by or on behalf of Agent (B) each Lender shall also be entitled to reimbursement for all out of pocket costs and expense of the
type described in this clause (x), provided that, to the extent of an actual or reasonably perceived conflict of
interest, such reimbursement shall be limited to one additional counsel for the Lenders as a whole), and (b) without limiting
the preceding clause (a), all out of pocket costs and expenses of Agent in connection with Agent's reservation of funds in anticipation
of the funding of the initial Loans to be made hereunder. Any fees, costs and expenses owing by any Borrower or other Loan Party
Obligor hereunder shall be due and payable within three days after written demand therefor.

 

15.8.
Benefit of Agreement; Assignability. The provisions of this Agreement shall be binding upon and inure to the benefit of the
respective successors, assigns, heirs, beneficiaries and representatives of each Borrower, each other Loan Party Obligor party
hereto, Agent and each Lender; provided, that neither each Borrower nor any other Loan Party Obligor may assign or
transfer any of its rights under this Agreement without the prior written consent of Agent and each Lender, and any prohibited
assignment shall be void. No consent by Agent or any Lender to any assignment shall release any Loan Party Obligor from its liability
for any of the Obligations. Each Lender shall have the right to assign all or any of its rights and obligations under the Loan
Documents to one or more other Persons in accordance with Section 15.9, and each Loan Party Obligor agrees to execute all agreements,
instruments, and documents requested by any Lender in connection with such assignment. Notwithstanding any provision of this Agreement
or any other Loan Document to the contrary, a Lender may at any time pledge or grant a security interest in all or any portion
of its rights under this Agreement and the other Loan Documents to secure any obligations of such Lender, including any pledge
or grant to secure obligations to a Federal Reserve Bank.

 

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15.9. Assignments.

 

(a) Any
Lender may at any time assign to one or more Persons (any such Person, an "Assignee") all or any
portion of such Lender's Loans and Commitments, with the prior written consent of Agent and, so long as no Event of Default
exists, Borrower Representative (which consents shall not be unreasonably withheld or delayed and shall not be required for
an assignment by a Lender to a Lender (other than a Defaulting Lender) or an Affiliate of a Lender (other than an Affiliate
of a Defaulting Lender) or an Approved Fund (other than an Approved Fund of a Defaulting Lender)). Except as Agent may
otherwise agree, any such assignment shall be in a minimum aggregate amount equal to $5,000,000 or, if less, the remaining
Commitment and Loans held by the assigning Lender (provided, that an assignment to a Lender, an Affiliate of a Lender or an
Approved Fund shall not be subject to the foregoing minimum assignment limitations). The Loan Parties and Agent shall be
entitled to continue to deal solely and directly with such Lender in connection with the interests so assigned to an Assignee
until Agent shall have received and accepted an effective Assignment and Assumption executed, delivered and fully completed
by the applicable parties thereto and a processing fee of $3,500. Notwithstanding anything herein to the contrary, no
assignment may be made to any equity holder of a Loan Party, any Affiliate of any equity holder of a Loan Party, any Loan
Party, any holder of Subordinated Debt of a Loan Party, any holder of any debt that is secured by liens or security interests
that have been contractually subordinated to the liens and security interests securing the Obligations, or any Affiliate of
any of the foregoing Persons without the prior written consent of Agent, which consent may be withheld in Agent's sole
discretion and, in any event, if granted, may be conditioned on such terms and conditions as Agent shall require in its sole
discretion, including a limitation on the aggregate amount of Loans and Commitments which may be held by such Person and/or
its Affiliates and/or limitations on such Person's and/or its Affiliates' voting and consent rights and/or rights to attend
Lender meetings or obtain information provided to other Lenders. Any attempted assignment not made in accordance with this
Section 15.10 shall be null and void. Each Borrower shall be deemed to have granted its consent to any assignment requiring
its consent hereunder unless Borrower Representative has expressly objected to such assignment within five (5) Business Days
after notice thereof.

 

(b) From and
after the date on which the conditions described in Section 15.10(a) above have been met, (i) such Assignee shall be deemed automatically
to have become a party hereto and, to the extent that rights and obligations hereunder have been assigned to such Assignee pursuant
to the applicable Assignment and Assumption, shall have the rights and obligations of a Lender hereunder and (ii) the assigning
Lender, to the extent that rights and obligations hereunder have been assigned by it pursuant to the applicable Assignment and
Assumption, shall be released from its rights (other than its indemnification rights) and obligations hereunder. Upon the request
of the Assignee (and, as applicable, the assigning Lender) pursuant to an effective Assignment and Assumption, Borrowers shall
execute and deliver to Agent for delivery to the Assignee (and, as applicable, the assigning Lender) a promissory note in the principal
amount of the Assignee's Pro Rata Share of the aggregate Revolving Loan Commitment (and, as applicable, a promissory note in the
principal amount of the Pro Rata Share of the aggregate Revolving Commitment retained by the assigning Lender). Upon receipt by
Agent of such promissory note(s), the assigning Lender shall return to Borrowers any prior promissory note held by it.

 

(c) Agent shall,
as a non-fiduciary agent of Borrowers, maintain a copy of each Assignment and Assumption delivered and accepted by it and register
(the "Register") for the recordation of names and addresses of the Lenders and the Commitment of each Lender
and principal and stated interest of each Loan owing to each Lender from time to time and whether such Lender is the original Lender
or the Assignee. No assignment shall be effective unless and until the Assignment and Assumption is accepted and registered in
the Register. All records of transfer of a Lender's interest in the Register shall be conclusive, absent manifest error, as to
the ownership of the interests in the Loans. Agent shall not incur any liability of any kind with respect to any Lender with respect
to the maintenance of the Register. Each Lender granting a participation shall, as a non-fiduciary agent of the Borrowers, maintain
a register containing information similar to that of the Register in a manner such that the loans hereunder are in "registered
form" for the purposes of the Code. This Section and Section 19.1.2 shall be construed so that the Loans are at all
times maintained in "registered form" for the purpose of the Code and any related regulations (and any successor provisions).

 

    	 	91	 

     

    

 

15.10.
Participations. Anything in this Agreement or any other Loan Document to the contrary notwithstanding, any Lender may, at any
time and from time to time, without in any manner affecting or impairing the validity of any Obligations, sell to one or more Persons
participating interests in its Loans, commitments or other interests hereunder or under any other Loan Document (any such Person,
a "Participant"). In the event of a sale by a Lender of a participating interest to a Participant, (a)
such Lender's obligations hereunder and under the other Loan Documents shall remain unchanged for all purposes, (b) Borrowers and
such Lender shall continue to deal solely and directly with each other in connection with such Lender's rights and obligations
hereunder and under the other Loan Documents and (c) all amounts payable by Borrowers shall be determined as if such Lender had
not sold such participation and shall be paid directly to such Lender; provided, that a Participant shall
be entitled to the benefits of Section 13 as if it were a Lender if Borrower Representative is notified of the Participation and
the Participant complies with Section 13. Each Borrower agrees that if amounts outstanding under this Agreement or any other Loan
Document are due and payable (as a result of acceleration or otherwise), each Participant shall be deemed to have the right of
set-off in respect of its participating interest in amounts owing under this Agreement and the other Loan Documents to the same
extent as if the amount of its participating interest were owing directly to it as a Lender under this Agreement; provided,
that such right of set-off shall not be exercised without the prior written consent of such Lender and shall be subject to the
obligation of each Participant to share with such Lender its share thereof. Each Borrower also agrees that each Participant shall
be entitled to the benefits of Section 15.9 as if it were a Lender. Notwithstanding the granting of any such participating interests,
(i) Borrowers shall look solely to the applicable Lender for all purposes of this Agreement, the Loan Documents and the transactions
contemplated hereby, (ii) Borrowers shall at all times have the right to rely upon any amendments, waivers or consents signed by
the applicable Lender as being binding upon all of the Participants and (iii) all communications in respect of this Agreement and
such transactions shall remain solely between Borrowers and the applicable Lender (exclusive of Participants) hereunder. If a Lender
grants a participation hereunder, such Lender shall maintain, as a non-fiduciary agent of Borrowers, a register as to the participations
granted and transferred under this Section containing the same information specified in Section 15.9 on the Register as if each
Participant were a Lender to the extent required to cause the Loans to be in registered form for the purposes of Sections 163(F),
165(J), 871, 881, and 4701 of the Code.

 

15.11. Headings; Construction. Section and
subsection headings are used in this Agreement only for convenience and do not affect the meanings of the provisions that
they precede.

 

15.12.
USA PATRIOT Act Notification. Agent hereby notifies the Loan Parties that pursuant to the requirements of the USA PATRIOT Act,
it may be required to obtain, verify and record certain information and documentation that identifies such Person, which information
may include the name and address of each such Person and such other information that will allow Agent to identify such Persons
in accordance with the USA PATRIOT Act.

 

15.13. Counterparts;
Fax/Email Signatures. This Agreement may be executed in any number of counterparts, all of which shall constitute one and the
same agreement. This Agreement may be executed by signatures delivered by facsimile or electronic mail, each of which shall be
fully binding on the signing party.

 

15.14.
GOVERNING LAW. THIS AGREEMENT, ALONG WITH ALL OTHER LOAN DOCUMENTS (UNLESS EXPRESSLY PROVIDED OTHERWISE IN SUCH OTHER LOAN
DOCUMENT) SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAW OF THE STATE OF NEW YORK APPLICABLE TO CONTRACTS MADE AND
TO BE PERFORMED THEREIN WITHOUT REGARD TO CONFLICT OF LAW PRINCIPLES. FURTHER, THE LAW OF THE STATE OF NEW YORK SHALL APPLY TO
ALL DISPUTES OR CONTROVERSIES ARISING OUT OF OR CONNECTED TO OR WITH THIS AGREEMENT AND ALL SUCH OTHER LOAN DOCUMENTS
WITHOUT REGARD TO CONFLICT OF LAW PRINCIPLES.

 

    	 	92	 

     

    

 

15.15.
CONSENT TO JURISDICTION; WAIVER OF JURY TRIAL; CONSENT TO SERVICE OF PROCESS. ANY LEGAL ACTION, SUIT OR PROCEEDING WITH
RESPECT TO THIS AGREEMENT OR ANY OTHER LOAN DOCUMENT SHALL BE BROUGHT EXCLUSIVELY IN THE COURTS OF THE STATE OF ILLINOIS IN
THE COUNTY OF COOK OR IN THE UNITED STATES DISTRICT COURT FOR THE NORTHERN DISTRICT OF ILLINOIS OR IN ANY OTHER COURT (IN ANY
JURISDICTION) SELECTED BY THE AGENT IN ITS SOLE DISCRETION, AND EACH BORROWER AND EACH OTHER LOAN PARTY OBLIGOR HEREBY
ACCEPTS FOR ITSELF AND IN RESPECT OF ITS PROPERTY, GENERALLY AND UNCONDITIONALLY, THE JURISDICTION OF THE AFOREMENTIONED
COURTS. EACH BORROWER AND EACH OTHER LOAN PARTY OBLIGOR HEREBY EXPRESSLY AND IRREVOCABLY WAIVES, TO THE FULLEST EXTENT
PERMITTED BY APPLICABLE LAW, ANY OBJECTION, INCLUDING ANY OBJECTION TO THE LAYING OF VENUE OR BASED ON THE GROUNDS OF FORUM
NON CONVENIENS, OR BASED ON 28 U.S.C. § 1404, WHICH IT MAY NOW OR HEREAFTER HAVE TO THE BRINGING AND ADJUDICATION OF ANY
SUCH ACTION, SUIT OR PROCEEDING IN ANY OF THE AFOREMENTIONED COURTS AND AMENDMENTS TO THE GRANTING OF SUCH LEGAL OR EQUITABLE
RELIEF AS IS DEEMED APPROPRIATE BY THE COURT. EACH BORROWER AND EACH OTHER LOAN PARTY OBLIGOR HEREBY WAIVES ANY RIGHT TO A
TRIAL BY JURY IN ANY ACTION, PROCEEDING OR COUNTERCLAIM CONCERNING ANY RIGHTS UNDER THIS AGREEMENT OR ANY OTHER LOAN
DOCUMENT, OR UNDER ANY AMENDMENT, WAIVER, AMENDMENT, INSTRUMENT, DOCUMENT OR OTHER AGREEMENT DELIVERED OR WHICH IN THE FUTURE
MAY BE DELIVERED IN CONNECTION HEREWITH OR THEREWITH, OR ARISING FROM ANY FINANCING RELATIONSHIP EXISTING IN CONNECTION WITH
THIS AGREEMENT OR ANY OTHER LOAN DOCUMENT OR THE OTHER TRANSACTION DOCUMENTS, AND AGREES THAT ANY SUCH ACTION, PROCEEDING OR
COUNTERCLAIM SHALL BE TRIED BEFORE A COURT AND NOT BEFORE A JURY. EACH BORROWER AND EACH OTHER LOAN PARTY OBLIGOR HEREBY
WAIVES PERSONAL SERVICE OF ANY AND ALL PROCESS UPON ANY BORROWER OR ANY OTHER LOAN PARTY OBLIGOR AND CONSENTS THAT ALL SUCH
SERVICE OF PROCESS MAY BE MADE BY CERTIFIED MAIL (RETURN RECEIPT REQUESTED) DIRECTED TO BORROWER'S’ NOTICE ADDRESS (ON
BEHALF OF BORROWERS OR SUCH LOAN PARTY OBLIGOR) SET FORTH IN SECTION 15.1 AND SERVICE SO MADE SHALL BE DEEMED TO BE COMPLETED
FIVE DAYS AFTER THE SAME SHALL HAVE BEEN SO DEPOSITED IN THE MAIL, OR, AT THE AGENT'S OPTION, BY SERVICE UPON ANY BORROWER OR
ANY OTHER LOAN PARTY OBLIGOR IN ANY OTHER MANNER PROVIDED UNDER THE RULES OF ANY SUCH COURTS.

 

15.16.
Publication. Each Borrower and each other Loan Party Obligor consents to the publication by Agent of a tombstone, press releases
or similar advertising material relating to the financing transactions contemplated by this Agreement, and Agent reserves the right
to provide to industry trade organizations information necessary and customary for inclusion in league table measurements.

 

    	 	93	 

     

    

 

15.17.
Confidentiality. Agent and each Lender agree to use commercially reasonable efforts not to disclose Confidential
Information to any Person without the prior consent of Borrower Representative; provided, that nothing herein
contained shall limit any disclosure of the tax structure of the transactions contemplated hereby, or the disclosure of any
information (a) to the extent required by applicable law, statute, rule, regulation or judicial process or in connection with
the exercise of any right or remedy under any Loan Document, or as may be required in connection with the examination, audit
or similar investigation of Agent or any of its Affiliates, (b) to examiners, auditors, accountants or any regulatory
authority, (c) to the officers, partners, managers, directors, employees, agents and advisors (including independent
auditors, lawyers and counsel) of Agent and each Lender or any of their respective Affiliates, (d) in connection with any
litigation or dispute which relates to this Agreement or any other Loan Document to which Agent or any Lender is a party or
is otherwise subject, (e) to a subsidiary or Affiliate of Agent or any Lender, (f) to any assignee or participant (or
prospective assignee or participant) which agrees to be bound by this Section 15.17 and (g) to any lender or other funding
source of Agent or any Lender (each reference to Agent and Lender in the foregoing clauses shall be deemed to include (i) the
actual and prospective assignees and participants referred to in clause (f) and the lenders and other funding sources
referred to in clause (g), as applicable for purposes of this Section 15.17), and further provided, that in no
event shall Agent or any Lender be obligated or required to return any materials furnished by or on behalf of any Borrower or
any other Loan Party or Obligor. The obligations of Agent and Lenders under this Section 15.17 shall supersede and replace
the obligations of Agent and Lenders under any confidentiality letter or provision in respect of this financing or any other
financing previously signed and delivered by Agent or any Lender to any Borrower or any of its Affiliates.

 

15.18. INTERCREDITOR AGREEMENT.

 

EACH LENDER
PARTY HERETO (I) UNDERSTANDS, ACKNOWLEDGES AND AGREES THAT IT (AND EACH OF ITS SUCCESSORS AND ASSIGNS) AND EACH OTHER LENDER (AND
EACH OF THEIR SUCCESSORS AND ASSIGNS) SHALL BE BOUND BY THE INTERCREDITOR AGREEMENT, (II) AUTHORIZES AND DIRECTS THE AGENT TO ENTER
INTO THE INTERCREDITOR AGREEMENT ON ITS BEHALF, AND (III) AGREES THAT ANY ACTION TAKEN BY THE AGENT PURSUANT TO THE INTERCREDITOR
AGREEMENT SHALL BE BINDING UPON SUCH LENDER.

 

THE PROVISIONS
OF THIS SECTION 15.19 ARE NOT INTENDED TO SUMMARIZE OR FULLY DESCRIBE THE PROVISIONS OF THE INTERCREDITOR AGREEMENT. REFERENCE
MUST BE MADE TO THE INTERCREDITOR AGREEMENT ITSELF TO UNDERSTAND ALL TERMS AND CONDITIONS THEREOF. EACH LENDER IS RESPONSIBLE FOR
MAKING ITS OWN ANALYSIS AND REVIEW OF THE INTERCREDITOR AGREEMENT AND THE TERMS AND PROVISIONS THEREOF, AND NEITHER THE AGENT NOR
ANY OF ITS AFFILIATES MAKES ANY REPRESENTATION TO ANY LENDER AS TO THE SUFFICIENCY OR ADVISABILITY OF THE PROVISIONS CONTAINED
IN THE INTERCREDITOR AGREEMENT. A COPY OF THE INTERCREDITOR AGREEMENT MAY BE OBTAINED FROM THE AGENT.

 

THE INTERCREDITOR
AGREEMENT IS AN AGREEMENT SOLELY AMONGST THE SECURED PARTIES (AS DEFINED IN THE INTERCREDITOR AGREEMENT) AND THEIR RESPECTIVE AGENTS
(INCLUDING THEIR SUCCESSORS AND ASSIGNS) AND IS ACKNOWLEDGED AND AGREED TO BY THE LOAN PARTIES. AS MORE FULLY PROVIDED THEREIN,
THE INTERCREDITOR AGREEMENT CAN ONLY BE AMENDED BY THE PARTIES THERETO IN ACCORDANCE WITH THE PROVISIONS THEREOF.

 

IN THE EVENT OF ANY CONFLICT
BETWEEN THIS AGREEMENT OR ANY OTHER LOAN DOCUMENT AND THE INTERCREDITOR AGREEMENT, THE INTERCREDITOR AGREEMENT SHALL GOVERN.

 

[Signature page follows]

 

    	 	94	 

     

    

 

IN WITNESS
WHEREOF, each Borrower, each other Loan Party Obligor party hereto, Agent and each Lender have signed this Agreement as of
the date first set forth above.

 

	 	Agent:
	 	 
	 	ENCINA
    BUSINESS CREDIT, LLC
	 	 
	 	By:	/s/
    Tracy Salyers
	 	Name:
     	Tracy
    Salyers
	 	 	Its:	Authorized
    Signatory

 

	 	Lenders:
	 	 
	 	ENCINA BUSINESS CREDIT SPV, LLC
	 	 
	 	By:	/s/
    Tracy Salyers
	 	Name:  	Tracy Salyers
	 	 	Its:  	Authorized Signatory

 

     

     

    

 

	 	Borrowers:
	 	 
	 	HYDROFARM, LLC
	 	 
	 	By:	/s/
    Peter Wardenburg 
	 	Name:  	Peter Wardenburg
	 	Its:	President and Chief Executive Officer

 

	 	SUNBLASTER LLC
	 	 
	 	By:	/s/
    Peter Wardenburgs
	 	Name:  	Peter Wardenburg
	 	Its:	President

 

	 	SUNBLASTER HOLDINGS ULC
	 	 
	 	By:	/s/ Jeffrey Peterson
	 	Name:  	Jeffrey Peterson
	 	Its:	Director

 

	 	EDDI’S WHOLESALE GARDEN SUPPLIES LTD.
	 	 
	 	By:	/s/
    Peter Wardenburg
	 	Name:  	Peter Wardenburg
	 	Its:	President

 

	 	HYDROFARM CANADA, LLC
	 	 
	 	By:	/s/
    Peter Wardenburg
	 	Name:  	Peter Wardenburg
	 	Its:	President

 

Loan and Security Agreement

 

     

     

    

 

	 	Loan Party Obligors:
	 	 
	 	EHH HOLDINGS, LLC
	 	 
	 	By:	/s/ Peter Wardenburg
	 	Name:  	Peter Wardenburg
	 	Its:	Manager

 

	 	HYDROFARM HOLDINGS, LLC
	 	 
	 	By:	/s/ Peter Wardenburg
	 	Name:  	Peter Wardenburg
	 	Its:	Manager

 

Loan and Security Agreement

 

     

     

    

 

Perfection Certificate

 

    1

    

    

 

EXHIBIT A

 

ORGANIZATIONAL CHART

 

 

 

 

     

     

    

 

EXHIBIT B

 

INTELLECTUAL PROPERTY

 

     

     

    

  

EXHIBIT C

 

INSURANCE CERTIFICATES

 

     

     

    

 CUSTOMER
ID: LOC #:570000071610 ADDITIONAL REMARKS SCHEDULE Pa

Annex
I

 Description of Certain Terms

 

 

    1 

     

    

 

Annex II

 

Agent and Lenders shall be provided
with each of the documents set forth below at the following times, in form satisfactory to Agent:

  

    	 	1	 

     

    

 

ANNEX
III

 

Revolving Loan Commitments

 

	Encina Business Credit SPV, LLC	 	$	45,000,000	 
	 	 	 	 	 
	Total	 	$	45,000,000	 

 

    	 	1	 

     

    

 

ANNEX IV

 

    	 	2	 

     

    

 

ANNEX
V

Disqualified Institutions

 

    	 	3	 

     

    

 

Exhibit A

 

FORM OF NOTICE OF BORROWING

 

[letterhead of Borrower Representative]

 

	ENCINA BUSINESS CREDIT, LLC, as Agent
	 	 
	 	 

Attention: [______________]

 

Ladies and Gentlemen:

 

Please refer
to the Loan and Security Agreement dated as of [__________] (as amended, restated or otherwise modified from time to time,
the "Loan Agreement") among the undersigned, as Borrower Representative, the Borrowers (as defined therein)
the Loan Party Obligors (as defined therein) party thereto, the Lenders party thereto and ENCINA BUSINESS CREDIT, LLC, as Agent
for the Lenders. Capitalized terms used herein and not otherwise defined shall have the meanings ascribed thereto in the Loan Agreement.
This notice is given pursuant to Section 2.3 of the Loan Agreement and constitutes a representation by Borrower Representative,
for itself and on behalf of each Borrower, that the conditions specified in Section 4 of the Loan Agreement have been satisfied.
Without limiting the foregoing, (i) each of the representations and warranties set forth in the Loan Agreement and in the other
Loan Documents is true and correct in all respects as of the date hereof (or to the extent any representations or warranties are
expressly made solely as of an earlier date, such representations and warranties shall be true and correct as of such earlier date),
both before and after giving effect to the Loans requested hereby, and (ii) no Default or Event of Default is in existence, both
before and after giving effect to the Loans requested hereby.

 

Borrower
Representative hereby requests a borrowing, on behalf of each Borrower, under the Loan Agreement as follows:

 

The aggregate
amount of the proposed borrowing is $[______________]. The requested borrowing date for the proposed borrowing (which is
a Business Day) is [______________], [____].

 

Borrower
Representative has caused this Notice of Borrowing to be executed and delivered by its officer thereunto duly authorized on [_____________].

 

	 	[Borrower Representative], as Borrower Representative
	 	 
	 	 
	 	By:	                                  
	 	Title:	 

  

    	 	4	 

     

    

 

Exhibit B

 

CLOSING CHECKLIST

 

    1 

     

    

 

Exhibit
C

 

CLIENT
USER FORM

 

ENCINA
BUSINESS CREDIT, LLC

ABLSoft
 – Client User Form

 

Borrowers Names:

[Borrowers] Borrower Number: ________

Loan and Security Agreement Date: ________ __, 20__ 

 

I,
being an authorized signer of the above borrower, as Borrower Representative (the "Borrower"),
refer to the above Loan and Security Agreement (as amended, restated or otherwise modified from time to time, the "Loan
Agreement") between the Borrowers named above, the Lenders party thereto and ENCINA BUSINESS CREDIT, LLC, as Agent.
This is the Client User Form, used to determined client access to ABLSoft. Terms defined in the Loan Agreement have the same meaning
when used in this Client User Form.

 

Being
duly authorized by Borrower Representative, on behalf of Borrowers, I confirm that the following individuals have been authorized
by Borrower to have access to ABLSoft:

 

	  First Name	 
Last Name	 
Email Address	 
Phone Number
	 	 	 	 
	 	 	 	 
	 	 	 	 
	 	 	 	 
	 	 	 	 
	 	 	 	 
	 	 	 	 
	 	 	 	 
	 	 	 	 

 

	[Borrower Representative], as Borrower Representative
	 
	By	                  	 
	Name:	 	 
	Title:	 	 
	Date:	 	 

 

    	 	1	 

     

    

 

Exhibit
D

 

AUTHORIZED ACCOUNTS FORM

 

ENCINA BUSINESS CREDIT, LLC

Authorized Accounts Form

 

Borrowers Names: [Borrowers]

 

Borrower Number:                            

 

Loan and Security Agreement
Date: _______ __, 20__

 

I, being an authorized signer of _____________, as
Borrower Representative, refer to the above Loan and Security Agreement (as amended, restated or otherwise modified from time
to time, the "Loan Agreement") between the Borrower named above, the Lenders party thereto and ENCINA
BUSINESS CREDIT, LLC, as agent ("Agent"). This is the Authorized Accounts Form, referring to
authorized operating bank accounts of Borrower. Terms defined in the Loan Agreement have the same meaning when used in this
Authorized Accounts Form.

 

Being duly authorized by Borrower
Representative, I confirm that the following operating bank accounts of Borrowers are the accounts into which the proceeds of any
Loan may be paid:

 

	  Bank	 
Routing Number	 
Account number	 
Account name
	 	 	 	 
	 	 	 	 
	 	 	 	 
	 	 	 	 
	 	 	 	 
	 	 	 	 
	 	 	 	 

 

	[Borrower Representative], as Borrower Representative
	 
	By:	                  	 
	 	Authorized Signer	 
	Name:	 	 
	Title:	 	 
	Date:	 	 

 

    1 

     

    

 

Exhibit E

 

FORM OF ACCOUNT DEBTOR NOTIFICATION

 

[Date]

 

 

VIA CERTIFIED MAIL, RETURN RECEIPT REQUESTED

[Account Debtor]

[Address]

 

		Re:	Loan Transaction with ENCINA BUSINESS CREDIT, LLC

 

Ladies and Gentlemen:

 

Please be
advised that we have entered into certain financing arrangements (along with any other financing agreements that we may enter into
with Agent in the future, the "Financing Arrangements") with ENCINA BUSINESS CREDIT, LLC ("Agent"),
as Agent for certain Lenders, pursuant to which we have granted to Agent a security interest in, among other things, any and all
Accounts and Chattel Paper (as those terms are defined in the Uniform Commercial Code) owing by you to us, whether now existing
or hereafter arising.

 

You are authorized
and directed to respond to any inquiries that Agent may direct to you from time to time pertaining to the validity, amount and
other matters relating to such Accounts and Chattel Paper. In the event that Agent requests that payment for any Accounts and/or
Chattel Paper be made directly to Agent, you are hereby authorized and directed to comply with such instructions, without further
authorization or instruction from us.

 

This authorization
and directive shall be continuing and irrevocable until Agent advises you, in writing, that this authorization is no longer in
force.

 

	 	Very truly yours,
	 
	 	[BORROWER]
	 
	 
	 	By:	                            
	 	Name:	 
	 	Its:	

 

	cc:	ENCINA BUSINESS CREDIT, LLC as Agent       	 	 
	 	        	 	 
	     	           	 	 

	 	Attention:	          	 	 

 

    	 	1	 

     

    

 

Exhibit F

 

FORM OF COMPLIANCE CERTIFICATE

 

[letterhead of Borrower Representative]

 

	To:	ENCINA BUSINESS CREDIT, LLC as Agent	 
	 	 	 
	 	 	 
	 	Attention:	 	 

 

		Re:	Compliance Certificate dated

 

Ladies and Gentlemen:

 

Reference is made to that certain Loan and Security
Agreement dated as of _______ __, 20__ (as amended, restated or otherwise modified from time to time, the "Loan Agreement")
by and among ENCINA BUSINESS CREDIT, LLC ("Agent"), the Lenders party thereto, [____________], a [______________]
and [____________], a [______________] (each a "Borrower" and collectively, the “Borrowers”)
and each of the Loan Party Obligors (as defined therein) party thereto. Capitalized terms used in this Compliance Certificate
have the meanings set forth in the Loan Agreement unless specifically defined herein.

 

Pursuant to Section 7.15 of
the Loan Agreement, the undersigned Chief Financial Officer of Borrower Representative hereby certifies on behalf of each Borrower
(solely in his capacity as an officer or Borrower Representative and not in his individual capacity) that:

 

1.
     The financial statements of Borrowers for the ___ -month period ending____________________ attached hereto have
been prepared in accordance with GAAP and fairly present the financial condition of Borrowers for the periods and as of the
dates specified therein.

 

2.
     As of the date hereof, there
does not exist any Default or Event of Default.

 

3.
    Borrowers are in compliance
with the applicable financial covenants contained in Section 9 of the Loan Agreement for the periods covered by this Compliance
Certificate. Attached hereto are statements of all relevant facts and computations in reasonable detail sufficient to evidence
Borrowers’ compliance with such financial covenants, which computations were made in accordance with GAAP.

 

IN
WITNESS WHEREOF, this Compliance Certificate is executed by the undersigned this __ day of ________________, ____.

 

[BORROWER REPRESENTATIVE], as Borrower Representative

 

	By:	 	Name:
	 

	 	Title:	Chief Financial Officer

 

    	 	1	 

     

    

 

Exhibit G

 

FORM OF ASSIGNMENT AND ASSUMPTION

 

Dated [ _________
__, 201_]

 

Reference is made to the Loan and
Security Agreement dated as of [___________], 201[_] among [_______], a [________] and [_______], a [________] (each a "Borrower" and
collectively the “Borrowers” ) , the other Loan Party Obligors party thereto, the lenders party
thereto as "Lenders" and Encina Business Credit, LLC, as agent ("Agent") for the Lenders
(as amended, restated, supplemented or otherwise modified from time to time, the "Loan Agreement"). Terms defined
in the Loan Agreement are used herein as therein defined. 

 

[____________], solely in its
capacity as a Lender under the Loan Agreement (the "Assignor"), and [__________] (the "Assignee")
agree as follows:

 

2. The Assignor
hereby sells and assigns to the Assignee, without recourse, representation or warranty (except as expressly set forth elsewhere
herein), and the Assignee hereby purchases and assumes from the Assignor, on the Effective Date (as defined below), an interest
as set forth in Exhibit A attached hereto (the "Assigned Interest") in and to (i) all of the Assignor's
right, title and interest with respect to the Loans set forth in Exhibit A, (ii) all of the Assignor's right, title and
interest with respect to the [Revolving Loan Commitment] of Assignor as set forth in Exhibit A and (iii) to the extent
related thereto, all of the Assignor's rights and obligations, solely as a Lender, under the Loan Agreement and any other Loan
Document (including, without limitation, (A) the outstanding principal amount of the Loans made by the Assignor and assigned to
Assignee hereunder, and (B) the Assignor's pro rata share of the obligations owing by each Loan Party under the Loan Agreement
and the Loan Documents). The Assigned Interest (expressed as a percentage) in the Loans and the [Revolving Loan Commitment]
is set forth in Exhibit A.

 

3. The Assignor
(i) represents and warrants as of the date hereof that [its Revolving Loan Commitment, or if its Revolving Loan Commitment shall
have been terminated, the outstanding principal amount of its Revolving Loans], is set forth in Exhibit A (without giving
effect to assignments thereof which have not yet become effective); (ii) represents and warrants that it is the legal and beneficial
owner of the interest it is assigning hereunder; (iii) makes no representation or warranty and assumes no responsibility with respect
to any statements, warranties or representations made by or in connection with the Loan Agreement or any other Loan Document or
the execution, legality, validity, enforceability, genuineness, sufficiency or value of the Loan Agreement or any other Loan Document,
or any other instrument or document furnished pursuant thereto; and (iv) makes no representation or warranty and assumes no responsibility
with respect to the financial condition of any Loan Party or the performance or observance by any Loan Party of any of its obligations
under the Loan Agreement, any other Loan Document or any other instrument or document furnished pursuant thereto.

 

4. The
Assignee represents and warrants that it has become a party hereto solely in reliance upon its own independent investigation
of the financial and other circumstances surrounding the Loan Parties, the Collateral, the Loans, the Revolving Loan
Commitments and all aspects of the transactions evidenced by or referred to in the Loan Documents, or has otherwise satisfied
itself thereto, and that it is not relying upon any representation, warranty or statement (except any such representation,
warranty or statement expressly set forth in this Assignment and Assumption) of the Assignor in connection with the
assignment made under this Assignment and Assumption. The Assignee further acknowledges that the Assignee will, independently
and without reliance upon Agent, the Assignor or any other Lender and based upon the Assignee's review of such documents and
information as the Assignee deems appropriate at the time, make and continue to make its own credit decisions in entering
into this Assignment and Assumption and taking or not taking action under the Loan Documents. The Assignor shall have no duty
or responsibility either initially or on a continuing basis to make any such investigation or any such appraisal on behalf of
the Assignee or to provide the Assignee with any credit or other information with respect thereto, whether coming into its
possession before the making of the initial extension of credit under the Loan Agreement or at any time or times
thereafter.

 

    	 	1	 

     

    

 

5. The Assignee
represents and warrants to the Assignor that it has experience and expertise in the making of loans such as the Loans or with respect
to the other types of credit which may be extended under the Loan Agreement; that it has acquired its Assigned Interest for its
own account and not with any intention of selling all or any portion of such interest; and that it has received, reviewed and approved
copies of all Loan Documents.

 

6. The Assignor
shall not be responsible to the Assignee for the execution, effectiveness, accuracy, completeness, legal effect, genuineness, validity,
enforceability, collectibility or sufficiency of any of the Loan Documents or for any representations, warranties, recitals or
statements made therein or in any written or oral statement or in any financial or other statements, instruments, reports, certificates
or any other documents made or furnished or made available by the Assignor to the Assignee or by or on behalf of the Loan Parties
to the Assignor or the Assignee in connection with the Loan Documents and the transactions contemplated thereby or for the financial
condition or business affairs of the Loan Parties or any other Person liable for the payment of any Loans or payment of amounts
owed in connection with other extensions of credit under the Loan Agreement or the value of the Collateral or any other matter.
The Assignor shall not be required to ascertain or inquire as to the performance or observance of any of the terms, conditions,
provisions, covenants or agreements contained in any of the Loan Documents or as to the use of the proceeds of the Loans or other
extensions of credit under the Loan Agreement or as to the existence or possible existence of any Event of Default.

 

7. Each party
to this Assignment and Assumption represents and warrants to the other party to this Assignment and Assumption that it has full
power and authority to enter into this Assignment and Assumption and to perform its obligations under this Assignment and Assumption
in accordance with the provisions set forth herein, that this Assignment and Assumption has been duly authorized, executed and
delivered by such party and that this Assignment and Assumption constitutes a legal, valid and binding obligation of such party,
enforceable in accordance with its terms, except as enforceability may be limited by applicable bankruptcy, moratorium or other
similar laws affecting creditors' rights generally and by general equitable principles.

 

8. Each party
to this Assignment and Assumption represents and warrants that the making and performance by it of this Assignment and Assumption
do not and will not violate any law or regulation of the jurisdiction of its organization or any other law or regulation applicable
to it.

 

9. Each party
to this Assignment and Assumption represents and warrants that all consents, licenses, approvals, authorizations, exemptions, registrations,
filings, opinions and declarations from or with any agency, department, administrative authority, statutory corporation or judicial
entity necessary for the validity or enforceability of its obligations under this Assignment and Assumption have been obtained,
and no governmental authorizations other than any already obtained are required in connection with its execution, delivery and
performance of this Assignment and Assumption.

 

    	 	2	 

     

    

 

10. The Assignor
represents and warrants that it is the legal and beneficial owner of the interest being assigned and that such interest is free
and clear of any lien, security interest or other encumbrance.

 

11. The Assignor
makes no representation or warranty and assumes no responsibility with respect to the operations, condition (financial or otherwise),
business or assets of the Loan Parties or the performance or observance by the Loan Parties of any of their obligations under the
Loan Agreement or any other Loan Document.

 

12. The Assignee
appoints and authorizes Agent to take such action as agent on its behalf and to exercise such powers under the Loan Documents as
are delegated to Agent by the terms thereof, together with such powers as are reasonably incidental thereto.

 

13. The Assignee
agrees that it will perform in accordance with their terms all of the obligations which by the terms of the Loan Agreement and
the other Loan Documents are required to be performed by it as a Lender.

 

14. The Assignee
confirms that it has received all documents and information it has deemed appropriate to make its own credit analysis and decision
to enter into this Assignment and Assumption.

 

15. The Assignee
specifies as its address for notices the office set forth beneath its name on the signature pages hereof.

 

16. The effective
date for this Assignment and Assumption (the "Effective Date") shall be the date that is the latest of
(a) the execution of this Assignment and Assumption, (b) the delivery of this Assignment and Assumption to Agent for acceptance,
and (c) the date on which the Assignor has received the payment, in immediately available funds, by the Assignee of $[_____________],
which amount represents the purchase price for the Assigned Interest.

 

17. Upon acceptance
of this Assignment and Assumption by Agent, as of the Effective Date (i) the Assignee shall, in addition to the rights and obligations
under the Loan Agreement and the other Loan Documents held by it immediately prior to the Effective Date, have the rights and obligations
under the Loan Agreement and the other Loan Documents that have been assigned to it pursuant to this Assignment and Assumption,
and (ii) the Assignor shall, to the extent provided in this Assignment and Assumption, relinquish its rights and be released from
its obligations under the Loan Agreement and the other Loan Documents that have been assigned by the Assignor to the Assignee pursuant
to this Assignment and Assumption.

 

18. Upon acceptance
of this Assignment and Assumption by Agent, from and after the Effective Date, Agent shall make all payments under the Loan Agreement
in respect of the rights assigned hereby (including, without limitation, all payments of principal, interest and fees with respect
thereto) to the Assignee. If the Assignor receives or collects any payment of interest or fees attributable to the interests assigned
to Assignee by this Assignment and Assumption which has accrued after the Effective Date, the Assignor shall distribute to the
Assignee such payment. If the Assignee receives or collects any payment of interest or fees which is not attributable to the interests
assigned to the Assignee by this Assignment and Assumption or which has accrued on or prior to the Effective Date, the Assignee
shall distribute to the Assignor such payment.

 

    	 	3	 

     

    

 

19. This
Assignment and Assumption shall be delivered and accepted in and shall be deemed to be a contract made under and governed by
the internal laws of the State of [Illinois] (but giving effect to federal laws applicable to national banks)
applicable to contracts made and to be performed entirely within such state, without regard to conflict of laws
principles.

 

[rest of page intentionally
left blank; signature page follows]

 

    	 	4	 

     

    

 

IN WITNESS WHEREOF, the parties
hereto have caused their duly authorized officers to execute this Assignment and Assumption as of the Effective Date.

 

	 	[ASSIGNOR]
	 	 
	 	 
	 	By	                               
	 	Name	 
	 	Title	 
	 	 
	 	NOTICE ADDRESS AND PAYMENT
	 	INSTRUCTIONS FOR ASSIGNOR
	 	 
	 	 
	 	 
	 	 
	 	Telephone No. ( __) -
____ - ______
	 	Telecopy No.    (__) - ____ - ______
	 	 
	 	 
	 	[ASSIGNEE]
	 	 
	 	 
	 	By	 
	 	Name	 
	 	Title	 
	 	 
	 	NOTICE ADDRESS AND PAYMENT
	 	INSTRUCTIONS FOR ASSIGNEE
	 	 
	 	 
	 	 
	 	 
	 	Telephone No. ( __) -
____ - ______
	 	Telecopy No.    (__) - ____ - ______
	 	 

  

    	 	5	 

     

    

 

	ACCEPTED this _________ day of ___________ , 201_	 
	 	 
	ENCINA BUSINESS CREDIT, LLC, as Agent	 
	 	 
	 	 
	By	                            	 
	Name	 	 
	Title	 	 

 

    	 	6	 

     

    

 

	Consented to this____ day of ________, 201_	 
	 	 
	[BORROWER] 	 
	 	 
	 	 
	By:		 
	Name:	 	 
	Title:	                                 	 

 

    	 	7	 

     

    

 

EXHIBIT A

 

 

Borrowers: [__________]

 

Description of Loan Agreement: Loan and Security
Agreement, dated as of [__________], 201[_] among Borrowers, the other Loan Party
Obligors party thereto, the lenders party thereto as "Lenders" and Encina Business Credit, LLC as agent
("Agent") for the Lenders (as amended, restated, supplemented or otherwise modified from time to
time).

 

Assigned Interests:

 

	
         

        Assignor's Interest Prior
        to

        Assignment
	
         

        Assigned

        Interests
	
        Assignor's

        Remaining Interest

        After Assignment
	
         

        Assignee's Pro

        Rata Shares

	
        Revolving Loans and Revolving

        Loan Commitments
	 	 	 

 

    	 	8	 

     

    

 

Schedule 7.32

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