Document:

Exhibit 10.2

    

     

    

     

    

    PLEDGE AND SECURITY AGREEMENT

     

    

    

    THIS PLEDGE AND SECURITY AGREEMENT (as it may be amended, restated, supplemented or otherwise modified from time to time, this “Security Agreement”) is entered into as of
      August 7, 2019, by and among Franklin Covey Co., a Utah corporation (“Borrower”), Franklin Development Corporation, a Utah corporation (“Development”), Franklin Covey Travel, Inc., a Utah corporation (“Travel”), Franklin Covey
      Client Sales, Inc., a Utah corporation (“Client Sales”), and any additional entities which become parties to this Security Agreement by executing a Security Agreement Supplement hereto in substantially the form of Annex I hereto (such
      additional entities, together with Borrower, Development, Travel and Client Sales, each a “Grantor”, and collectively, the “Grantors”), and JPMorgan Chase Bank, N.A. (the “Lender”), on behalf of the Lender and the other Secured
      Parties.

     

    PRELIMINARY STATEMENT

     

    The Grantors and the Lender are entering into a Credit Agreement dated as of the date hereof (as it may be amended, restated, supplemented or otherwise modified from time to
      time, the “Credit Agreement”).  Each Grantor is entering into this Security Agreement in order to induce the Lender to enter into and extend credit to the Borrower under the Credit Agreement and to secure the Secured Obligations that it has
      agreed to guarantee pursuant to Article IX of the Credit Agreement.

     

    ACCORDINGLY, the Grantors and the Lender, on behalf of the Secured Parties, hereby agree as follows:

     

    ARTICLE I

      

      DEFINITIONS

     

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

     

    1.2            Terms Defined in UCC.  Terms defined in the UCC which are not otherwise defined in this Security Agreement are used
      herein as defined in the UCC.

     

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

     

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

     

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

     

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

     

    “Collateral” shall have the meaning set forth in Article II.

     

    “Collateral Access Agreement” means any landlord waiver or other agreement, in form and substance satisfactory to the Lender, between the Lender and any third party
      (including any bailee, consignee, customs broker, or other similar Person) in possession of any Collateral or any landlord of any real property where any Collateral is located, as such landlord waiver or other agreement may be amended, restated,
      supplemented or otherwise modified from time to time.

     

    
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    “Collateral Report” means any certificate (including any borrowing base certificate), report or other document delivered by any Grantor to the Lender with respect to the
      Collateral pursuant to any Loan Document.

     

    “Commercial Tort Claims” means the commercial tort claims as defined in Article 9 of the UCC, including each commercial tort claim specifically described on Exhibit I.

     

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

     

    “Copyrights” means, with respect to any Person, all of such Person’s right, title, and interest in and to the following:  (a) all copyrights, rights and interests in
      copyrights, works protectable by copyright, copyright registrations, and copyright applications; (b) all renewals of any of the foregoing; (c) all income, royalties, damages, and payments now or hereafter due and/or payable under any of the
      foregoing, including, without limitation, damages or payments for past or future infringements for any of the foregoing; (d) the right to sue for past, present, and future infringements of any of the foregoing; and (e) all rights corresponding to any
      of the foregoing throughout the world.

     

    “Copyright Security Agreement” means any Copyright Security Agreement among any of the Grantors and the Lender, as the same may be amended, restated, supplemented or
      otherwise modified from time to time.

     

    “Default” means any event or condition which constitutes an Event of Default or which upon notice, lapse of time or both would, unless cured or waived, become an Event of
      Default.

     

    “Deposit Account Control Agreement” means an agreement, in form and substance satisfactory to the Lender, among any Loan Party, a banking institution holding such Loan
      Party’s funds, and the Lender with respect to collection and control of all deposits and balances held in a deposit account maintained by such Loan Party with such banking institution.

     

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

     

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

     

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

     

    “Event of Default” means an event described in Section 5.1.

     

    “Excluded Account” means a Deposit Account or Securities Account (i) constituting a withholding tax account (including any sales tax account) used exclusively for such
      purposes and maintained for the benefit of unaffiliated third parties, (ii) exclusively used for payroll, payroll taxes, workers’ compensation, and other employee wages and benefit payments to or for any Grantor’s or its Subsidiaries’ employees,
      (iii) held by any Grantor solely in connection with employee stock option plans, or in trust for any director, officer or employee of any Grantor pursuant to any benefit plan maintained by any Grantor (including any 401(k)), (iv) which is a
      zero-balance disbursement account, (v) which is not otherwise subject to the other provisions of this definition that does not hold, when combined with all other Deposit Accounts and Securities Accounts not otherwise subject to the provisions of this
      definition, more than $50,000 in the aggregate at any time and (vi) agreed to in writing by Lender in its sole discretion.

     

    
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    “Excluded Collateral” means (a) any of the outstanding Equity Interests in a foreign subsidiary (i) in excess of 65% of the voting power of all classes of Equity
      Interests of such foreign subsidiary entitled to vote in the election of directors or other similar body of such foreign subsidiary, or (ii) to the extent that the pledge thereof is prohibited by the laws of the jurisdiction of such foreign
      subsidiary organization; (b) any lease, license, contract, property rights or agreement to which a Grantor is a party or any of such Grantor’s rights or interest thereunder, if, and for so long as and to the extent that, the grant of the security
      interest would constitute or result in (A) the abandonment, invalidation or unenforceability of any material right, title or interest of such Grantor therein, or (B) a breach or termination pursuant to the terms of, or a default under, any such
      lease, license, contract, property rights or agreement, but only, with respect to the prohibitions in (A) and (B), to the extent that, and for as long as, such prohibition is not terminated or rendered unenforceable or otherwise deemed ineffective by
      the UCC or any other requirement of law; (c) any application to register any Trademark prior to the filing under applicable law of a verified statement of use (or the equivalent) for such Trademark to the extent the creation of a security interest
      therein would invalidate such Trademark; and (d) Excluded Accounts; provided, however, that “Excluded Collateral” shall not include any proceeds, products, substitutions or replacements of Excluded Collateral (unless such
      proceeds, products, substitutions or replacements would otherwise constitute Excluded Collateral).

     

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

     

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

     

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

     

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

     

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

     

    “Intellectual Property Security Agreements” means, collectively, the Copyright Security Agreement, Patent Security Agreement, and Trademark Security Agreement.

     

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

     

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

     

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

     

    “Licenses” means, with respect to any Person, all of such Person’s right, title, and interest in and to (a) any and all licensing agreements or similar arrangements in
      and to its Patents, Copyrights, or Trademarks, (b) all income, royalties, damages, claims, and payments now or hereafter due or payable under and with respect thereto, including, without limitation, damages and payments for past and future breaches
      thereof, and (c) all rights to sue for past, present, and future breaches thereof.

     

    “Patents” means, with respect to any Person, all of such Person’s right, title, and interest in and to:  (a) any and all patents and patent applications; (b) all
      inventions and improvements described and claimed therein; (c) all reissues, divisions, continuations, renewals, extensions, and continuations-in-part thereof; (d) all income, royalties, damages, claims, and payments now or hereafter due or payable
      under and with respect thereto, including, without limitation, damages and payments for past and future infringements thereof; (e) all rights to sue for past, present, and future infringements thereof; and (f) all rights corresponding to any of the
      foregoing throughout the world.

     

    
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    “Patent Security Agreement” means any Patent Security Agreement among any of the Grantors and the Lender, as the same may be amended, restated, supplemented or otherwise
      modified from time to time.

     

    “Pledged Collateral” means all Instruments, Securities and other Investment Property of the Grantors, whether or not physically delivered to the Lender pursuant to this
      Security Agreement.

     

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

     

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

     

    “Secured Parties” shall have the meaning set forth in the Credit Agreement.

     

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

     

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

     

    “Security Agreement Supplement” shall mean any Security Agreement Supplement to this Security Agreement in substantially the form of Annex I hereto executed by an entity
      that becomes a Grantor under this Security Agreement after the date hereof.

     

     “Stock Rights” means all dividends, instruments or other distributions and any other right or property which the Grantors shall receive or shall become entitled to
      receive for any reason whatsoever with respect to, in substitution for or in exchange for any Equity Interest constituting Collateral, any right to receive an Equity Interest and any right to receive earnings, in which the Grantors now have or
      hereafter acquire any right, issued by an issuer of such Equity Interest.

     

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

     

    “Trademarks” means, with respect to any Person, all of such Person’s right, title, and interest in and to the following:  (a) all trademarks (including service marks),
      trade names, trade dress, and trade styles and the registrations and applications for registration thereof and the goodwill of the business symbolized by the foregoing; (b) all licenses of the foregoing, whether as licensee or licensor; (c) all
      renewals of the foregoing; (d) all income, royalties, damages, and payments now or hereafter due or payable with respect thereto, including, without limitation, damages, claims, and payments for past and future infringements thereof; (e) all rights
      to sue for past, present, and future infringements of the foregoing, including the right to settle suits involving claims and demands for royalties owing; and (f) all rights corresponding to any of the foregoing throughout the world.

     

    “Trademark Security Agreement” means any Trademark Security Agreement among any of the Grantors and the Lender, as the same may be amended, restated, supplemented or
      otherwise modified from time to time.

     

    “UCC” means the Uniform Commercial Code, as in effect from time to time, of the State of Utah or of any other state the laws of which are required as a result thereof to
      be applied in connection with the attachment, perfection or priority of, or remedies with respect to, Lender’s Lien on any Collateral.

     

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

     

    
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    ARTICLE II

      

      GRANT OF SECURITY INTEREST

     

    Each Grantor hereby pledges, assigns and grants to the Lender, on behalf of and for the benefit of the Secured Parties, a security interest in all of its right, title and
      interest in, to and under all personal property and other assets, whether now owned by or owing to, or hereafter acquired by or arising in favor of such Grantor (including under any trade name or derivations thereof), and whether owned or consigned
      by or to, or leased from or to, such Grantor, and regardless of where located (all of which will be collectively referred to as the “Collateral”), including:

     

    (i)             all

      Accounts;

    (ii)          

      all Chattel Paper;

    (iii)        
      all Copyrights, Patents and Trademarks;

    (iv)        
      all Documents;

    (v)          

      all Equipment;

    (vi)        

      all Fixtures;

    (vii)       all General Intangibles;

    (viii)    
      all Goods;

    (ix)        
      all Instruments;

    (x)          

      all Inventory;

    (xi)        
      all Investment Property;

    (xii)      
      all cash or cash equivalents;

    (xiii)    
      all letters of credit, Letter-of-Credit Rights and Supporting Obligations;

    (xiv)     all

      Deposit Accounts with any bank or other financial institution;

    (xv)      
      all Commercial Tort Claims; and

    
      
        	

              	(xvi)	
                all accessions to, substitutions for and replacements, proceeds (including Stock Rights), insurance proceeds and products of the foregoing, together with all books and records, customer lists, credit files, computer files, programs,
                  printouts and other computer materials and records related thereto and any General Intangibles at any time evidencing or relating to any of the foregoing;

              

      

    

    

    

    to secure the prompt and complete payment and performance of the Secured Obligations; provided that “Collateral” shall not include Excluded Collateral of any Grantor; provided further,
      however, that if and when any property shall cease to be Excluded Collateral, a Lien on and security in such property shall be deemed granted therein. Each Grantor hereby represents and warrants that the Excluded Collateral, when taken as a whole, is
      not material to the business operations or financial condition of the Grantors taken as a whole.

     

    
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    ARTICLE III

      

      REPRESENTATIONS AND WARRANTIES

     

    Each Grantor represents and warrants, as to itself as of the Closing Date, and each Grantor that becomes a party to this Security Agreement pursuant to the execution of a
      Security Agreement Supplement represents and warrants (after giving effect to supplements, if any, to each of the Exhibits hereto with respect to such Grantor as attached to such Security Agreement Supplement), to the Lender and the Secured Parties
      that:

     

    3.1            Title, Authorization, Validity, Enforceability, Perfection and Priority.  Such Grantor has good and valid rights in or
      the power to transfer the Collateral and title to the Collateral with respect to which it has purported to grant a security interest hereunder, free and clear of all Liens except for Liens permitted under Section 4.1(e), and has
      full power and authority to grant to the Lender the security interest in the Collateral pursuant hereto.  The execution and delivery by such Grantor of this Security Agreement has been duly authorized by proper corporate proceedings of such Grantor,
      and this Security Agreement constitutes a legal valid and binding obligation of such Grantor and creates a security interest which is enforceable against such Grantor in all Collateral it now owns or hereafter acquires, subject to applicable
      bankruptcy, insolvency, reorganization, moratorium or other laws affecting creditors’ rights generally and subject to general principles of equity, regardless of whether considered in a proceeding in equity or at law.  When financing statements have
      been filed in the appropriate offices against such Grantor in the locations listed on Exhibit H, the Lender will have a fully perfected first priority security interest in that Collateral of such Grantor in which a security interest may be perfected
      by filing a financing statement, subject only to Liens permitted under Section 4.1(e).

     

    3.2            Type and Jurisdiction of Organization, Organizational and Identification Numbers.  The type of entity of such Grantor,
      its state of organization, the organizational number issued to it by its state of organization and its federal employer identification number are set forth on Exhibit A.

     

    3.3            Principal Location.  Such Grantor’s mailing address, which shall be its address for notices and other communications
      provided for herein and the location of its place of business (if it has only one) or its chief executive office (if it has more than one place of business), is disclosed in Exhibit A; such Grantor has no other places of business except those
      set forth in Exhibit A.

     

    3.4            Collateral Locations.  All of such Grantor’s locations where Collateral is located are listed on Exhibit A. 
      All of said locations are owned by such Grantor except for locations (i) which are leased by the Grantor as lessee and designated in Part VII(b) of Exhibit A and (ii) at which Inventory is held in a public warehouse or is otherwise
      held by a bailee or on consignment as designated in Part VII(c) of Exhibit A.

     

    3.5            Deposit Accounts.  All of such Grantor’s Deposit Accounts, including those which are designated by such Grantor as
      Excluded Accounts, are listed on Exhibit B.

     

    3.6            Exact Names.  Such Grantor’s name in which it has executed this Security Agreement is the exact name as it appears in
      such Grantor’s organizational documents, as amended, as filed with such Grantor’s jurisdiction of organization.  Such Grantor has not, during the past five years, been known by or used any other corporate or fictitious name, or been a party to any
      merger or consolidation, or been a party to any acquisition.

     

    
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    3.7            Letter-of-Credit Rights and Chattel Paper.  Exhibit C lists all Letter-of-Credit Rights and Chattel Paper, in
      each case, with a face amount in excess of $100,000, of such Grantor.  All action by such Grantor necessary or desirable to protect and perfect the Lender’s Lien on each item listed on Exhibit C (including the delivery of all originals and
      the placement of a legend on all Chattel Paper as required hereunder) has been duly taken.  The Lender will have a fully perfected first priority security interest in the Collateral listed on Exhibit C, subject only to Liens permitted under Section 4.1(e).

     

    3.8            Accounts and Chattel Paper.

     

    (a)            The names of the obligors, amounts owing, due dates and other information with respect to its Accounts and Chattel Paper are
      and will be correctly stated in all material respects in all records of such Grantor relating thereto and in all invoices and Collateral Reports with respect thereto furnished to the Lender by such Grantor from time to time.  As of the time when each
      Account or each item of Chattel Paper arises, such Grantor shall be deemed to have represented and warranted that such Account or Chattel Paper, as the case may be, and all records relating thereto, are genuine and in all respects what they purport
      to be.

     

    (b)            With respect to its Accounts, except as disclosed on the most recent Collateral Report, (i) all Accounts represent bona fide
      sales of Inventory or rendering of services to Account Debtors in the ordinary course of such Grantor’s business and are not evidenced by a judgment, Instrument or Chattel Paper; (ii) to such Grantor’s knowledge, there are no setoffs, claims or
      disputes existing or asserted with respect thereto and such Grantor has not made any agreement with any Account Debtor for any extension of time for the payment thereof, any compromise or settlement for less than the full amount thereof, any release
      of any Account Debtor from liability therefor, or any deduction therefrom except a discount or allowance allowed by such Grantor in the ordinary course of its business for prompt payment and disclosed to the Lender; (iii) to such Grantor’s knowledge,
      there are no facts, events or occurrences which in any way impair the validity or enforceability thereof or could reasonably be expected to reduce the amount payable thereunder as shown on such Grantor’s books and records and any invoices, statements
      and Collateral Reports with respect thereto; (iv) such Grantor has not received any notice of proceedings or actions which are threatened or pending against any Account Debtor which might result in any adverse change in such Account Debtor’s
      financial condition; and (v) such Grantor has no knowledge that any Account Debtor has become insolvent or is generally unable to pay its debts as they become due.

     

    (c)            In addition, with respect to all of its Accounts, (i) the amounts shown on all Collateral Reports, invoices and statements
      with respect thereto are actually and absolutely owing to such Grantor as indicated thereon and are not in any way contingent, and (ii) to such Grantor’s knowledge, all Account Debtors have the capacity to contract.

     

    3.9            Inventory.  With respect to any of its Inventory scheduled or listed on the most recent Collateral Report, (a) such
      Inventory (other than Inventory in transit) is located at one of such Grantor’s locations set forth on Exhibit A, (b) no Inventory (other than Inventory in transit) is now, or shall at any time or times hereafter be stored at any other
      location except as permitted by Section 4.1(g), (c) such Grantor has good, indefeasible and merchantable title to such Inventory and such Inventory is not subject to any Lien or security interest or document whatsoever except for
      the security interest granted to the Lender hereunder, for the benefit of the Lender and the Secured Parties, and Permitted Encumbrances, (d) except as may be disclosed in the most recent Collateral Report, to such Grantor’s knowledge, such Inventory
      is of good and merchantable quality, free from any defects, (e) such Inventory is not subject to any licensing, patent, royalty, trademark, trade name or copyright agreements with any third parties which would require any consent of any third party
      upon sale or disposition of that Inventory or the payment of any monies to any third party upon such sale or other disposition, except as such agreements are set forth on Exhibit D or Inventory which, in the aggregate, if such consents are
      not received, would not have a material adverse effect on such Grantor’s business, (f) to such Grantor’s knowledge, such Inventory has been produced in accordance with the Federal Fair Labor Standards Act of 1938, as amended, and all rules,
      regulations and orders thereunder, and (g) the completion of manufacture, sale or other disposition of such Inventory by the Lender following an Event of Default shall not require the consent of any Person and shall not constitute a breach or default
      under any contract or agreement to which such Grantor is a party or to which such property is subject.

     

    
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    3.10            Intellectual Property.  To each Grantor’s knowledge, such Grantor does not have any interest in, or title to, any
      Patent, Trademark or Copyright except as set forth in Exhibit D.  This Security Agreement is effective to create a valid and continuing Lien and, upon filing of appropriate financing statements in the offices listed on Exhibit H and
      Intellectual Property Security Agreements with the United States Copyright Office and the United States Patent and Trademark Office, as applicable, fully perfected first priority security interests in favor of the Lender on such Grantor’s Patents,
      Trademarks and Copyrights, such perfected security interests are enforceable as such as against any and all creditors of and purchasers from such Grantor; and all action necessary or desirable to protect and perfect the Lender’s Lien on such
      Grantor’s Patents, Trademarks or Copyrights shall have been duly taken.

     

    3.11            Filing Requirements.  None of its Equipment is covered by any certificate of title, except for the vehicles described
      in Part I of Exhibit E.  None of the Collateral owned by it is of a type for which security interests or liens may be perfected by filing under any federal statute except for (a) the vehicles described in Part II of Exhibit E
      and (b) Patents, Trademarks and Copyrights held by such Grantor and described in Exhibit D.  The legal description, county and street address of each property on which any Fixtures are located is set forth in Exhibit F together with
      the name and address of the record owner of each such property.

     

    3.12            No Financing Statements, Security Agreements.  No financing statement or security agreement describing all or any
      portion of the Collateral which has not lapsed or been terminated (by a filing authorized by the secured party in respect thereof) naming such Grantor as debtor has been filed or is of record in the State of Utah, or, to the knowledge of such
      Grantor, in any other jurisdiction, except for financing statements or security agreements (a) naming the Lender as the secured party and (b) in respect to other Liens permitted under Section 6.02 of the Credit Agreement.

     

    3.13            Pledged Collateral.

     

    (a)            Exhibit G sets forth a complete and accurate list of all of the Pledged Collateral owned by such Grantor.  Such
      Grantor is the direct, sole beneficial owner and sole holder of record of the Pledged Collateral listed on Exhibit G as being owned by it, free and clear of any Liens, except for the security interest granted to the Lender hereunder and
      Permitted Encumbrances.  Such Grantor further represents and warrants that (i) all Pledged Collateral owned by it constituting an Equity Interest has been (to the extent such concepts are relevant with respect to such Pledged Collateral) duly
      authorized, validly issued, are fully paid and non assessable, (ii) with respect to any certificates delivered to the Lender representing an Equity Interest, either such certificates are Securities as defined in Article 8 of the UCC as a result of
      actions by the issuer or otherwise, or, if such certificates are not Securities, such Grantor has so informed the Lender so that the Lender may take steps to perfect its security interest therein as a General Intangible, (iii) all such Pledged
      Collateral held by a securities intermediary is covered by a control agreement among such Grantor, the securities intermediary and the Lender pursuant to which the Lender has Control and (iv) all Pledged Collateral which represents Indebtedness owed
      to such Grantor has been duly authorized, authenticated or issued and delivered by the issuer of such Indebtedness, is the legal, valid and binding obligation of such issuer and such issuer is not in default thereunder.

     

    
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    (b)            In addition, (i) none of the Pledged Collateral owned by it has been issued or transferred in violation of the securities
      registration, securities disclosure or similar laws of any jurisdiction to which such issuance or transfer may be subject, (ii) no options, warrants, calls or commitments of any character whatsoever (A) exist relating to such Pledged Collateral or
      (B) obligate the issuer of any Equity Interest included in the Pledged Collateral to issue additional Equity Interests, and (iii) no consent, approval, authorization, or other action by, and no giving of notice, filing with, any governmental
      authority or any other Person is required for the pledge by such Grantor of such Pledged Collateral pursuant to this Security Agreement or for the execution, delivery and performance of this Security Agreement by such Grantor, or for the exercise by
      the Lender of the voting or other rights provided for in this Security Agreement or for the remedies in respect of the Pledged Collateral pursuant to this Security Agreement, except as may be required in connection with such disposition by laws
      affecting the offering and sale of securities generally.

     

    (c)            Except as set forth in Exhibit G, such Grantor owns 100% of the issued and outstanding  Equity Interests which
      constitute Pledged Collateral owned by it and none of the Pledged Collateral which represents Indebtedness owed to such Grantor is subordinated in right of payment to other Indebtedness or subject to the terms of an indenture.

     

    ARTICLE IV

      

      COVENANTS

     

    From the date of this Security Agreement and thereafter until this Security Agreement is terminated pursuant to the terms hereof, each Grantor party hereto as of the date hereof
      agrees, and from and after the effective date of any Security Agreement Supplement applicable to any Grantor (and after giving effect to supplements, if any, to each of the Exhibits hereto with respect to such subsequent Grantor as attached to such
      Security Agreement Supplement) and thereafter until this Security Agreement is terminated pursuant to the terms hereof, each such additional Grantor agrees that:

     

    4.1            General.

     

    (a)            Collateral Records.  Such Grantor will maintain complete and accurate books and records with respect to the Collateral
      owned by it, and furnish to the Lender such reports relating to such Collateral as the Lender shall from time to time reasonably request.

     

    (b)            Authorization to File Financing Statements; Ratification.  Such Grantor hereby authorizes the Lender to file, and if
      requested will deliver to the Lender, all financing statements and other documents and take such other actions as may from time to time be reasonably requested by the Lender in order to maintain a first perfected security interest in and, if
      applicable, Control of, the Collateral owned by such Grantor.  Any financing statement filed by the Lender may be filed in any filing office in any UCC jurisdiction and may (i) indicate such Grantor’s Collateral (1) as all assets of the Grantor or
      words of similar effect, regardless of whether any particular asset comprised in the Collateral falls within the scope of Article 9 of the UCC of such jurisdiction, or (2) by any other description which reasonably approximates the description
      contained in this Security Agreement, and (ii) contain any other information required by part 5 of Article 9 of the UCC for the sufficiency or filing office acceptance of any financing statement or amendment, including (A) whether such Grantor is an
      organization, the type of organization and any organization identification number issued to such Grantor, and (B) in the case of a financing statement filed as a fixture filing or indicating such Grantor’s Collateral as as-extracted collateral or
      timber to be cut, a sufficient description of real property to which the Collateral relates.  Such Grantor also agrees to furnish any such information described in the foregoing sentence to the Lender promptly upon request.  Such Grantor also
      ratifies its authorization for the Lender to have filed in any UCC jurisdiction any initial financing statements or amendments thereto if filed prior to the date hereof.

     

    
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    (c)            Further Assurances.  Such Grantor will, if so requested by the Lender, furnish to the Lender, as often as the Lender
      reasonably requests, statements and schedules further identifying and describing the Collateral owned by it and such other reports and information in connection with its Collateral as the Lender may reasonably request, all in such detail as the
      Lender may specify.  Such Grantor also agrees to take any and all actions reasonably necessary to defend title to the Collateral against all persons and to defend the security interest of the Lender in its Collateral and the priority thereof against
      any Lien not expressly permitted hereunder.

     

    (d)            Disposition of Collateral.  Such Grantor will not sell, lease or otherwise dispose of the Collateral except for
      dispositions specifically permitted pursuant to Section 6.05 of the Credit Agreement.

     

    (e)            Liens.  Such Grantor will not create, incur, or suffer to exist any Lien on the Collateral except (i) the security
      interest created by this Security Agreement, and (ii) other Liens permitted under Section 6.02 of the Credit Agreement.

     

    (f)            Other Financing Statements.  Such Grantor will not authorize the filing of any financing statement naming it as debtor
      covering all or any portion of the Collateral owned by it, except for financing statements (i) naming the Lender as the secured party, and (ii) in respect to other Liens permitted under Section 6.02 of the Credit Agreement.  Such
      Grantor acknowledges that it is not authorized to file any financing statement or amendment or termination statement with respect to any financing statement without the prior written consent of the Lender, which consent shall not be unreasonably
      withheld or delayed, subject to such Grantor’s rights under Section 9-509(d)(2) of the UCC.

     

    (g)            Locations.  Such Grantor will not (i) maintain any Collateral owned by it at any location other than those locations
      listed on Exhibit A or disclosed to Lender pursuant to clause (ii) of this Section, (ii) otherwise change, or add to, such locations without the Lender’s prior written consent as required by the Credit Agreement (and if the Lender gives such
      consent, such Grantor will concurrently therewith obtain a Collateral Access Agreement for each such location to the extent required by the Credit Agreement), or (iii) change its principal place of business or chief executive office from the location
      identified on Exhibit A, other than as permitted by the Credit Agreement.

     

    (h)            Compliance with Terms.  Such Grantor will perform and comply with all obligations in respect of the Collateral owned
      by it and all agreements to which it is a party or by which it is bound relating to such Collateral.

     

    4.2            Receivables.

     

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

     

    (b)            Collection of Receivables.  Except as otherwise provided in this Security Agreement, such Grantor will collect and
      enforce, at such Grantor’s sole expense, all amounts due or hereafter due to such Grantor under the Receivables owned by it.

     

    (c)            Delivery of Invoices.  Such Grantor will deliver to the Lender immediately upon its request after the occurrence and
      during the continuation of an Event of Default duplicate invoices with respect to each Account owned by it bearing such language of assignment as the Lender shall specify.

     

    
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    (d)            Disclosure of Counterclaims on Receivables.  If (i) any material discount, credit or agreement to make a rebate or to
      otherwise reduce the amount owing on any Receivable owned by such Grantor exists or (ii) if, to the knowledge of such Grantor, any material dispute, setoff, claim, counterclaim or defense exists or has been asserted or threatened with respect to any
      such Receivable, such Grantor will promptly disclose such fact to the Lender in writing.

     

    (e)            Electronic Chattel Paper.  Such Grantor shall take all steps necessary to grant the Lender Control of all electronic
      chattel paper in accordance with the UCC and all “transferable records” as defined in each of the Uniform Electronic Transactions Act and the Electronic Signatures in Global and National Commerce Act.

     

    4.3            Inventory and Equipment.

     

    (a)            Maintenance of Goods.  Such Grantor will do all things reasonably necessary to maintain, preserve, protect and keep
      its Inventory and the Equipment in good repair and working and saleable condition, except for damaged or defective goods arising in the ordinary course of such Grantor’s business and except for ordinary wear and tear in respect of the Equipment.

     

    (b)            Returned Inventory.  In the event any Account Debtor returns Inventory to such Grantor when an Event of Default
      exists, such Grantor, upon the request of the Lender, shall: (i) hold the returned Inventory in trust for the Lender; (ii) segregate all returned Inventory from all of its other property; (iii) dispose of the returned Inventory solely according to
      the Lender’s written instructions; and (iv) not issue any credits or allowances with respect thereto without the Lender’s prior written consent.  All returned Inventory shall be subject to the Lender’s Liens thereon.

     

    (c)            Equipment.  Such Grantor shall not permit any Equipment with a fair market value in excess of $300,000 in the
      aggregate to become a fixture with respect to real property or to become an accession with respect to other personal property with respect to which real or personal property the Lender does not have a Lien.  Such Grantor will not, without the
      Lender’s prior written consent, alter or remove any identifying symbol or number on any of such Grantor’s Equipment constituting Collateral.

     

    4.4            Delivery of Instruments, Securities, Chattel Paper and Documents.  Such Grantor will (a) deliver to the Lender
      promptly upon execution of this Security Agreement the originals of all Chattel Paper, Securities and Instruments constituting Collateral owned by it (if any then exist), (b) hold in trust for the Lender upon receipt and promptly thereafter deliver
      to the Lender any Chattel Paper, Securities and Instruments constituting Collateral, (c) upon the Lender’s request, deliver to the Lender (and thereafter hold in trust for the Lender upon receipt and promptly deliver to the Lender) any Document
      evidencing or constituting Collateral.

     

    4.5            Uncertificated Pledged Collateral; Control of Pledged Collateral.  Such Grantor will permit the Lender from time to
      time, upon the Lender’s request, to cause the appropriate issuers (and, if held with a securities intermediary, such securities intermediary) of uncertificated securities or other types of Pledged Collateral owned by it not represented by
      certificates to mark their books and records with the numbers and face amounts of all such uncertificated securities or other types of Pledged Collateral not represented by certificates and all rollovers and replacements therefor to reflect the Lien
      of the Lender granted pursuant to this Security Agreement.  Such Grantor will, upon the Lender’s request, (a) with respect to any uncertificated securities which are Pledged Collateral, use commercially reasonable efforts to take such actions which
      are necessary to cause the issuers of such uncertificated securities to cause the Lender to have and retain Control over such uncertificated securities, and (b) with respect to any Pledged Collateral held with a securities intermediary, cause such
      securities intermediary to enter into a control agreement with the Lender, in form and substance satisfactory to the Lender, giving the Lender Control.

     

    
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    4.6            Pledged Collateral.

     

    (a)            Changes in Capital Structure of Issuers.  Such Grantor will not (i) permit or suffer any issuer of an Equity Interest
      constituting Pledged Collateral owned by it to dissolve, merge, liquidate, retire any of its Equity Interests or other Instruments or Securities evidencing ownership, reduce its capital, sell or encumber all or substantially all of its assets (except
      for Permitted Encumbrances and sales of assets permitted pursuant to Section 4.1(d)) or merge or consolidate with any other entity, or (ii) vote any such Pledged Collateral in favor of any of the foregoing.

     

    (b)            Issuance of Additional Securities.  Such Grantor will not permit or suffer the issuer of an Equity Interest
      constituting Pledged Collateral owned by it to issue additional Equity Interests, any right to receive the same or any right to receive earnings, except to such Grantor.

     

    (c)            Registration of Pledged Collateral.  Such Grantor will permit any registerable Pledged Collateral to be registered in
      the name of the Lender or its nominee at any time at the option of the Lender.

     

    (d)            Exercise of Rights in Pledged Collateral.

     

    
      	
              (i) 

              

               

            	
              Without in any way limiting the foregoing and subject to clause (ii) below, such Grantor shall have the right to exercise all voting rights or other rights relating to the Pledged Collateral owned by it for
                all purposes not inconsistent with this Security Agreement, the Credit Agreement or any other Loan Document; provided however, that no vote or other right shall be exercised or action taken which
                would have the effect of impairing the rights of the Lender in respect of such Pledged Collateral. 

              

            

    

    
      	
              (ii)

               

            	
              Such Grantor will permit the Lender or its nominee at any time after the occurrence of an Event of Default, without notice, to exercise all voting rights or other rights relating to the Pledged Collateral
                owned by it, including, without limitation, exchange, subscription or any other rights, privileges, or options pertaining to any Equity Interest or Investment Property constituting Pledged Collateral as if it were the absolute owner
                thereof. 

              

            

    

    
      	
              (iii)

               

            	
              Such Grantor shall be entitled to collect and receive for its own use all cash dividends and interest paid in respect of the Pledged Collateral owned by it to the extent not in violation of the Credit
                Agreement other than any of the following distributions and payments (collectively referred to as the “Excluded Payments”): (A) dividends and interest paid or payable other than in cash in respect of such Pledged Collateral,
                and instruments and other property received, receivable or otherwise distributed in respect of, or in exchange for, any Pledged Collateral;  (B) dividends and other distributions paid or payable in cash in respect of such Pledged Collateral
                in connection with a partial or total liquidation or dissolution or in connection with a reduction of capital, capital surplus or paid-in capital of an issuer; and (C) cash paid, payable or otherwise distributed, in respect of principal of,
                or in redemption of, or in exchange for, such Pledged Collateral; provided however, that until actually paid, all rights to such distributions shall remain
                subject to the Lien created by this Security Agreement; and 

              

            

    

    
      	
              (iv)

               

            	
              All Excluded Payments and all other distributions in respect of any of the Pledged Collateral owned by such Grantor, whenever paid or made, shall be delivered to the Lender to hold as Pledged Collateral and
                shall, if received by such Grantor, be received in trust for the benefit of the Lender, be segregated from the other property or funds of such Grantor, and be forthwith delivered to the Lender as Pledged Collateral in the same form as so
                received (with any necessary endorsement). 

              

            

    

    
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    (e)            Interests in Limited Liability Companies and Limited Partnerships.  Each Grantor agrees that no ownership interests in
      a limited liability company or a limited partnership which are included within the Collateral owned by such Grantor shall at any time constitute a Security under Article 8 of the UCC of the applicable jurisdiction.

     

    4.7            Intellectual Property.

     

    (a)            Such Grantor will use its best efforts to secure all consents and approvals necessary or appropriate for the assignment to or
      benefit of the Lender of any License material to such Grantor’s business held by such Grantor and to enforce the security interests granted hereunder.

     

    (b)            Such Grantor shall notify the Lender promptly if it knows or has reason to know that any application or registration relating
      to any Patent, Trademark or Copyright that such Grantor makes use of at such time (now or hereafter existing) may become abandoned or dedicated, or of any adverse determination or development (including the institution of, or any such determination
      or development in, any proceeding in the United States Patent and Trademark Office, the United States Copyright Office or any court) regarding such Grantor’s ownership of any Patent, Trademark or Copyright, its right to register the same, or to keep
      and maintain the same.

     

    (c)            In accordance with Section 5.01(d) of the Credit Agreement, such Grantor shall deliver, concurrently
      with the delivery of the annual financial statements pursuant to Section 5.01(a) of the Credit Agreement, a complete list of all Patent and Trademark registrations received and applications filed by such Grantor with the United
      States Patent and Trademark Office and all Copyright registrations received and applications filed by such Grantor with the United States Copyright Office during the prior fiscal year together with all other Patents, Trademarks and Copyrights
      otherwise acquired during the prior fiscal year, and, upon request of the Lender, such Grantor shall, except with respect to Excluded Collateral, execute and deliver any and all security agreements as the Lender may request to evidence the Lender’s
      first priority security interest on such Patent, Trademark or Copyright, and the General Intangibles of such Grantor relating thereto or represented thereby, including any Intellectual Property Security Agreement or supplements thereto.

     

    (d)            Such Grantor shall take all actions necessary or requested by the Lender to maintain and pursue each application, to obtain
      the relevant registration and to maintain the registration of each of its Patents, Trademarks and Copyrights (now or hereafter existing), including the filing of applications for renewal, affidavits of use, affidavits of noncontestability and
      opposition and interference and cancellation proceedings, unless such Grantor shall reasonably determine that such Patent, Trademark or Copyright is not material to the conduct of such Grantor’s business.  For each of the Copyrights listed on Exhibit

        D attached hereto which are not currently held in the name of a Grantor, the Grantors shall, within one hundred twenty (120) days after the date hereof, take all actions necessary to cause the records of the United States Copyright Office to
      reflect the name of a Grantor as the copyright claimant for each of such Copyrights.

     

    (e)            Such Grantor shall, unless it shall reasonably determine that such Patent, Trademark or Copyright is in no way material to
      the conduct of its business or operations, promptly sue for infringement, misappropriation or dilution and to recover any and all damages for such infringement, misappropriation or dilution, and shall take such other actions as the Lender shall deem
      appropriate under the circumstances to protect such Patent, Trademark or Copyright.  In the event that such Grantor institutes suit because any of its Patents, Trademarks or Copyrights constituting Collateral is infringed upon, or misappropriated or
      diluted by a third party, such Grantor shall comply with Section 4.8.

     

    
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    4.8            Commercial Tort Claims.  Such Grantor shall promptly, and in any event within two (2) Business Days after the same is
      acquired by it, notify the Lender of any commercial tort claim (as defined in the UCC) acquired by it and, unless the Lender otherwise consents, such Grantor shall enter into an amendment to this Security Agreement, in the form of Exhibit J
      hereto, granting to Lender a first priority security interest in such commercial tort claim.

     

    4.9            Letter-of-Credit Rights.  If such Grantor is or becomes the beneficiary of a letter of credit with a face value in
      excess of $100,000, it shall promptly, and in any event within two (2) Business Days after becoming a beneficiary, notify the Lender thereof and cause the issuer and/or confirmation bank to (i) consent to the assignment of any Letter-of-Credit Rights
      to the Lender and (ii) agree to direct all payments thereunder to a Deposit Account at the Lender or subject to a Deposit Account Control Agreement for application to the Secured Obligations, in accordance with Section 4.01(i) of
      the Credit Agreement, all in form and substance reasonably satisfactory to the Lender.

     

    4.10            Federal, State or Municipal Claims.  Such Grantor will promptly notify the Lender of any Collateral which constitutes
      a claim against the United States government or any state or local government or any instrumentality or agency thereof, the assignment of which claim is restricted by federal, state or municipal law.

     

    4.11            No Interference.  Such Grantor agrees that it will not interfere with any right, power and remedy of the Lender
      provided for in this Security Agreement or now or hereafter existing at law or in equity or by statute or otherwise, or the exercise or beginning of the exercise by the Lender of any one or more of such rights, powers or remedies.

     

    4.12            Insurance.

     

    (a)            In the event any Collateral is located in any area that has been designated by the Federal Emergency Management Agency as a
      “Special Flood Hazard Area”, such Grantor shall purchase and maintain flood insurance on such Collateral (including any personal property which is located on any real property leased by such Loan Party within a “Special Flood Hazard Area”).  The
      amount of flood insurance required by this Section shall at a minimum comply with applicable law, including the Flood Disaster Protection Act of 1973, as amended.

     

    (b)            All insurance policies required hereunder and under Section 5.10 of the Credit Agreement shall name the
      Lender as an additional insured or as lender’s loss payee, as applicable, and shall contain lender loss payable clauses or mortgagee clauses, through endorsements in form and substance satisfactory to the Lender, which provide that: (i) all proceeds
      thereunder with respect to any Collateral shall be payable to the Lender; (ii) no such insurance shall be affected by any act or neglect of the insured or owner of the property described in such policy; and (iii) such policy and lender loss payable
      or mortgagee clauses may be canceled, amended, or terminated only upon at least thirty (30) days’ prior written notice given to the Lender.

     

    (c)            All premiums on any such insurance shall be paid when due by such Grantor, and, upon request from the Lender, copies of the
      policies delivered to the Lender.  If such Grantor fails to obtain or maintain any insurance as required by this Section, the Lender may obtain such insurance at the Borrower’s expense.  By purchasing such insurance, the Lender shall not be deemed to
      have waived any Default arising from the Grantor’s failure to maintain such insurance or pay any premiums therefor.

     

    4.13            Collateral Access Agreements.  If required by the Lender, Grantor shall use commercially reasonable efforts to obtain
      a Collateral Access Agreement from the lessor of each leased property, mortgagee of owned property or bailee or consignee with respect to any warehouse, processor or converter facility or other location where Collateral is stored or located, which
      agreement or letter shall provide access rights, contain a waiver or subordination of all Liens or claims that the landlord, mortgagee, bailee or consignee may assert against the Collateral at that location, and shall otherwise be reasonably
      satisfactory in form and substance to the Lender.

     

    
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    4.14            Deposit Account Control Agreements.  Such Grantor will provide to the Lender upon the Lender’s request, a Deposit
      Account Control Agreement duly executed on behalf of each financial institution holding a Deposit Account of such Grantor that is not an Excluded Account as set forth in this Security Agreement.

     

    4.15            Perfection of Vehicles and Other Titled Property.  If required by Lender, upon the occurrence of an Event of Default,
      such Grantor shall note the Lender’s Lien on the certificate of title of any vehicle or other property covered by any certificate of title and take such other actions as necessary to perfect the Lender’s Lien on such Collateral.

     

    4.16            Change of Name or Location; Change of Fiscal Year.  Such Grantor shall not (a) change its name as it appears in
      official filings in the state of its incorporation or organization, (b) change its chief executive office, principal place of business, mailing address, corporate offices or warehouses or locations at which Collateral is held or stored, or the
      location of its records concerning the Collateral as set forth in this Security Agreement, (c) change the type of entity that it is, (d) change its organization identification number, if any, issued by its state of incorporation or other
      organization, or (e) change its state of incorporation or organization, in each case, unless the Lender shall have received at least thirty (30) days’ prior written notice of such change, provided that, any
      new location shall be in the continental U.S.  Such Grantor shall not change its fiscal year, which currently ends on August 31, unless such Grantor shall have given the Lender at least 60 days’ written notice of such change.

     

    ARTICLE V

      

      EVENTS OF DEFAULT AND REMEDIES

     

    5.1            Events of Default.  The occurrence of any one or more of the following events shall constitute an Event of Default
      hereunder:

     

    (a)            Any representation or warranty made by or on behalf of any Grantor under or in connection with this Security Agreement shall
      be materially false as of the date on which made.

     

    (b)            Any Grantor shall fail to observe or perform any of the terms or provisions of Article IV.

     

    (c)            Any Grantor shall fail to observe or perform any of the terms or provisions of this Security Agreement (other than a breach
      which constitutes an Event of Default under any other Section of this Article V), and such failure shall continue unremedied for a period of ten (10) days after the earlier of knowledge of such breach or notice thereof from the Lender.

     

    (d)            The occurrence of any “Event of Default” under, and as defined in, the Credit Agreement.

     

    (e)            Any Equity Interest which is included within the Collateral shall at any time constitute a Security or the issuer of any such
      Equity Interest shall take any action to have such interests treated as a Security unless (i) all certificates or other documents constituting such Security have been delivered to the Lender and such Security is properly defined as such under
      Article 8 of the UCC of the applicable jurisdiction, whether as a result of actions by the issuer thereof or otherwise, or (ii) the Lender has entered into a control agreement with the issuer of such Security or with a securities intermediary
      relating to such Security and such Security is defined as such under Article 8 of the UCC of the applicable jurisdiction, whether as a result of actions by the issuer thereof or otherwise.

     

    
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    5.2            Remedies.

     

    (a)            Upon the occurrence of an Event of Default, the Lender may exercise any or all of the following rights and remedies:

     

    
      	
              (i)

               

            	
              those rights and remedies provided in this Security Agreement, the Credit Agreement, or any other Loan Document; provided that, this Section 5.2(a)
                shall not be understood to limit any rights or remedies available to the Lender and the other Secured Parties prior to an Event of Default; 

              

            

    

    
      	
              (ii)

               

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

              

            

    

    
      	
              (iii)

            	
              give notice of sole control or any other instruction under any Deposit Account Control Agreement or and other control agreement with any securities intermediary and take any action therein with respect to
                such Collateral;

              

            

    

    
      	
              (iv)

               

            	
              without notice (except as specifically provided in Section 8.1 or elsewhere herein), demand or advertisement of any kind to any Grantor or any other Person, enter the premises of any
                Grantor where any Collateral is located (through self-help and without judicial process) to collect, receive, assemble, process, appropriate, sell, lease, assign, grant an option or options to purchase or otherwise dispose of, deliver, or
                realize upon, the Collateral or any part thereof in one or more parcels at public or private sale or sales (which sales may be adjourned or continued from time to time with or without notice and may take place at any Grantor’s premises or
                elsewhere), for cash, on credit or for future delivery without assumption of any credit risk, and upon such other terms as the Lender may deem commercially reasonable; and 

              

            

    

    
      	
              (v)

               

            	
              concurrently with written notice to the applicable Grantor, transfer and register in its name or in the name of its nominee the whole or any part of the Pledged Collateral, exchange certificates or
                instruments representing or evidencing Pledged Collateral for certificates or instruments of smaller or larger denominations, exercise the voting and all other rights as a holder with respect thereto, collect and receive all cash dividends,
                interest, principal and other distributions made thereon and to otherwise act with respect to the Pledged Collateral as though the Lender was the outright owner thereof. 

              

            

    

    (b)            The Lender, on behalf of the Lender and the other Secured Parties, may comply with any applicable state or federal law
      requirements in connection with a disposition of the Collateral and compliance will not be considered to adversely affect the commercial reasonableness of any sale of the Collateral.

     

    (c)            The Lender shall have the right upon any such public sale or sales and, to the extent permitted by law, upon any such private
      sale or sales, to purchase for the benefit of the Lender and the other Secured Parties, the whole or any part of the Collateral so sold, free of any right of equity redemption, which equity redemption the Grantor hereby expressly releases.

     

    
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    (d)            Until the Lender is able to effect a sale, lease, or other disposition of Collateral, the Lender shall have the right to hold
      or use Collateral, or any part thereof, to the extent that it deems appropriate for the purpose of preserving Collateral or its value or for any other purpose deemed appropriate by the Lender.  The Lender may, if it so elects, seek the appointment of
      a receiver or keeper to take possession of Collateral and to enforce any of the Lender’s remedies (for the benefit of the Lender and the other Secured Parties), with respect to such appointment without prior notice or hearing as to such appointment.

     

    (e)            If, after the Credit Agreement has terminated by its terms and all of the Obligations have been paid in full, there remain
      Swap Agreement Obligations outstanding, the Lender may exercise the remedies provided in this Section 5.2 upon the occurrence of any event which would allow or require the termination or acceleration of any Swap Agreement
      Obligations pursuant to the terms of the Swap Agreement.

     

    (f)            Notwithstanding the foregoing, neither the Lender nor any other Secured Party shall be required to (i) make any demand upon,
      or pursue or exhaust any of its rights or remedies against, any Grantor, any other obligor, guarantor, pledgor or any other Person with respect to the payment of the Secured Obligations or to pursue or exhaust any of its rights or remedies with
      respect to any Collateral therefor or any direct or indirect guarantee thereof, (ii) marshal the Collateral or any guarantee of the Secured Obligations or to resort to the Collateral or any such guarantee in any particular order, or (iii) effect a
      public sale of any Collateral.

     

    (g)            Each Grantor recognizes that the Lender may be unable to effect a public sale of any or all the Pledged Collateral and may be
      compelled to resort to one or more private sales thereof in accordance with clause (a) above.  Each Grantor also acknowledges that any private sale may result in prices and other terms less favorable to the seller than if such sale were a public sale
      and, notwithstanding such circumstances, agrees that any such private sale shall not be deemed to have been made in a commercially unreasonable manner solely by virtue of such sale being private.  The Lender shall be under no obligation to delay a
      sale of any of the Pledged Collateral for the period of time necessary to permit any Grantor or the issuer of the Pledged Collateral to register such securities for public sale under the Securities Act of 1933, as amended, or under applicable state
      securities laws, even if the applicable Grantor and the issuer would agree to do so.

     

    5.3            Grantor’s Obligations Upon Default.  Upon the request of the Lender after the occurrence of a Default, each Grantor
      will:

     

    (a)            assemble and make available to the Lender the Collateral and all books and records relating thereto at any place or places
      specified by the Lender, whether at a Grantor’s premises or elsewhere;

     

    (b)            permit the Lender, by the Lender’s representatives and agents, to enter, occupy and use any premises where all or any part of
      the Collateral, or the books and records relating thereto, or both, are located, to take possession of all or any part of the Collateral or the books and records relating thereto, or both, to remove all or any part of the Collateral or the books and
      records relating thereto, or both, and to conduct sales of the Collateral, without any obligation to pay the applicable Grantor for such use and occupancy;

     

    (c)            prepare and file, or cause an issuer of Pledged Collateral to prepare and file, with the Securities and Exchange Commission
      or any other applicable government agency, registration statements, a prospectus and such other documentation in connection with the Pledged Collateral as the Lender may request, all in form and substance satisfactory to the Lender, and furnish to
      the Lender, or cause an issuer of Pledged Collateral to furnish to the Lender, any information regarding the Pledged Collateral in such detail as the Lender may specify;

     

    
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    (d)            take, or cause an issuer of Pledged Collateral to take, any and all actions necessary to register or qualify the Pledged
      Collateral to enable the Lender to consummate a public sale or other disposition of the Pledged Collateral; and

     

    (e)            at its own expense, cause the independent certified public accountants then engaged by each Grantor to prepare and deliver to
      the Lender, at any time, and from time to time, promptly upon the Lender’s request, the following reports with respect to the applicable Grantor: (i) a reconciliation of all Accounts; (ii) an aging of all Accounts; (iii) trial balances; and (iv) a
      test verification of such Accounts.

     

    5.4            Grant of Intellectual Property License.  For the purpose of enabling the Lender to exercise the rights and remedies
      under this Article V at such time as the Lender shall be lawfully entitled to exercise such rights and remedies, each Grantor hereby (a) grants to the Lender, for the benefit of itself and the other Secured Parties, a nonexclusive license
      (exercisable without payment of royalty or other compensation to any Grantor and only after the occurrence and during the continuation of an Event of Default) to use, license or sublicense any intellectual property rights now owned or hereafter
      acquired by such Grantor, and wherever the same may be located, and including in such license access to all media in which any of the licensed items may be recorded or stored and to all computer software and programs used for the compilation or
      printout thereof and (b) irrevocably agrees that the Lender may sell any of such Grantor’s Inventory directly to any person, including without limitation persons who have previously purchased the Grantor’s Inventory from such Grantor and in
      connection with any such sale or other enforcement of the Lender’s rights under this Security Agreement, may sell Inventory which bears any Trademark owned by or licensed to such Grantor and any Inventory that is covered by any Copyright owned by or
      licensed to such Grantor and the Lender may finish any work in process and affix any Trademark owned by or licensed to such Grantor and sell such Inventory as provided herein.

     

    ARTICLE VI

      

      ACCOUNT VERIFICATION; ATTORNEY IN FACT; PROXY

     

    6.1            Account Verification.  The Lender may at any time after the occurrence of an Event of Default, in the Lender’s own
      name, in the name of a nominee of the Lender, or in the name of any Grantor communicate (by mail, telephone, facsimile or otherwise) with the Account Debtors of any such Grantor, parties to contracts with any such Grantor and obligors in respect of
      Instruments of any such Grantor to verify with such Persons, to the Lender’s satisfaction, the existence, amount, terms of, and any other matter relating to, Accounts, Instruments, Chattel Paper, payment intangibles and/or other Receivables.

     

    6.2            Authorization for Lender to Take Certain Action.

     

    (a)            Each Grantor irrevocably authorizes the Lender at any time and from time to time in the sole discretion of the Lender and
      appoints the Lender as its attorney-in-fact (i) to endorse and collect any cash proceeds of the Collateral, (ii) to file any financing statement with respect to the Collateral and to file any other financing statement or amendment of a financing
      statement (which does not add new collateral or add a debtor) in such offices as the Lender in its sole discretion deems necessary or desirable to perfect and to maintain the perfection and priority of the Lender’s security interest in the
      Collateral, (iii) to contact and enter into one or more agreements with the issuers of uncertificated securities which are Pledged Collateral or with securities intermediaries holding Pledged Collateral as may be necessary or advisable to give the
      Lender Control over such Pledged Collateral, (iv) to discharge past due taxes, assessments, charges,

     

    
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    fees or Liens on the Collateral (except for such Liens that are permitted under Section 6.02 of the Credit Agreement), (v) to contact Account Debtors for any reason, (vi) to
      demand payment or enforce payment of the Receivables in the name of the Lender or such Grantor and to endorse any and all checks, drafts, and other instruments for the payment of money relating to the Receivables, (vii) to sign such Grantor’s name on
      any invoice or bill of lading relating to the Receivables, drafts against any Account Debtor of the Grantor, assignments and verifications of Receivables, (viii) to exercise all of such Grantor’s rights and remedies with respect to the collection of
      the Receivables and any other Collateral, (ix) to settle, adjust, compromise, extend or renew the Receivables, (x) to settle, adjust or compromise any legal proceedings brought to collect Receivables, (xi) to prepare, file and sign such Grantor’s
      name on a proof of claim in bankruptcy or similar document against any Account Debtor of such Grantor, (xii) to prepare, file and sign such Grantor’s name on any notice of Lien, assignment or satisfaction of Lien or similar document in connection
      with the Receivables, (xiii) to change the address for delivery of mail addressed to such Grantor to such address as the Lender may designate and to receive, open and dispose of all mail addressed to such Grantor, and (xiv) to do all other acts and
      things necessary to carry out this Security Agreement; and such Grantor agrees to reimburse the Lender on demand for any payment made or any expense incurred by the Lender in connection with any of the foregoing; provided that, this authorization shall not relieve such Grantor of any of its obligations under this Security Agreement or under the Credit Agreement.

     

    (b)            All acts of said attorney or designee are hereby ratified and approved.  The powers conferred on the Lender, for the benefit
      of the Lender and the other Secured Parties, under this Section 6.2 are solely to protect the Lender’s and the other Secured Parties’ interests in the Collateral and shall not impose any duty upon the Lender or any other Secured
      Party to exercise any such powers.  The Lender agrees that, except for the powers granted in Section 6.2(a)(i)-(iv) and Section 6.2(a)(xiv), it shall not exercise any power or
      authority granted to it unless an Event of Default has occurred and is continuing.

     

    6.3            Proxy.  EACH GRANTOR HEREBY IRREVOCABLY CONSTITUTES AND APPOINTS THE LENDER AS ITS PROXY AND ATTORNEY-IN-FACT (AS SET
      FORTH IN SECTION 6.2 ABOVE) OF THE GRANTOR WITH RESPECT TO ITS PLEDGED COLLATERAL, INCLUDING THE RIGHT TO VOTE SUCH PLEDGED COLLATERAL, WITH FULL POWER OF SUBSTITUTION TO DO SO. IN ADDITION TO THE RIGHT TO VOTE ANY SUCH PLEDGED
      COLLATERAL, THE APPOINTMENT OF THE LENDER AS PROXY AND ATTORNEY-IN-FACT SHALL INCLUDE THE RIGHT TO EXERCISE ALL OTHER RIGHTS, POWERS, PRIVILEGES AND REMEDIES TO WHICH A HOLDER OF SUCH PLEDGED COLLATERAL WOULD BE ENTITLED (INCLUDING GIVING OR
      WITHHOLDING WRITTEN CONSENTS OF SHAREHOLDERS, CALLING SPECIAL MEETINGS OF SHAREHOLDERS AND VOTING AT SUCH MEETINGS). SUCH PROXY SHALL BE EFFECTIVE, AUTOMATICALLY AND WITHOUT THE NECESSITY OF ANY ACTION (INCLUDING ANY TRANSFER OF ANY SUCH PLEDGED
      COLLATERAL ON THE RECORD BOOKS OF THE ISSUER THEREOF) BY ANY PERSON (INCLUDING THE ISSUER OF SUCH PLEDGED COLLATERAL OR ANY OFFICER OR AGENT THEREOF), UPON THE OCCURRENCE OF A DEFAULT.

     

    6.4            Nature of Appointment; Limitation of Duty.  THE APPOINTMENT OF THE LENDER AS PROXY AND ATTORNEY-IN-FACT IN THIS
      Article VI IS COUPLED WITH AN INTEREST AND SHALL BE IRREVOCABLE UNTIL THE DATE ON WHICH THIS SECURITY AGREEMENT IS TERMINATED IN ACCORDANCE WITH SECTION 7.14.  NOTWITHSTANDING ANYTHING CONTAINED HEREIN, NONE OF THE LENDER, ANY
      OTHER SECURED PARTY, ANY OF THEIR RESPECTIVE AFFILIATES, OR ANY OF THEIR OR THEIR AFFILIATES’ RESPECTIVE OFFICERS, DIRECTORS, EMPLOYEES, AGENTS OR REPRESENTATIVES SHALL HAVE ANY DUTY TO EXERCISE ANY RIGHT OR POWER GRANTED HEREUNDER OR OTHERWISE OR TO
      PRESERVE THE SAME AND SHALL NOT BE LIABLE FOR ANY FAILURE TO DO SO OR FOR ANY DELAY IN DOING SO, EXCEPT  IN RESPECT OF DAMAGES ATTRIBUTABLE SOLELY TO SUCH PARTY’S OWN GROSS NEGLIGENCE OR WILLFUL MISCONDUCT AS FINALLY DETERMINED BY A COURT OF
      COMPETENT JURISDICTION; PROVIDED THAT, IN NO EVENT SHALL THEY BE LIABLE FOR ANY PUNITIVE, EXEMPLARY, INDIRECT OR CONSEQUENTIAL DAMAGES.

     

    
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    ARTICLE VII

      

      GENERAL PROVISIONS

     

    7.1            Waivers.  Each Grantor hereby waives notice of the time and place of any public sale or the time after which any
      private sale or other disposition of all or any part of the Collateral may be made.  To the extent such notice may not be waived under applicable law, any notice made shall be deemed reasonable if sent to Grantors, addressed as set forth in Article VIII,
      at least ten days prior to (i) the date of any such public sale or (ii) the time after which any such private sale or other disposition may be made.  To the maximum extent permitted by applicable law, each Grantor waives all claims, damages, and
      demands against the Lender or any other Secured Party arising out of the repossession, retention or sale of the Collateral, except such as arise solely out of the gross negligence or willful misconduct of the Lender or such Secured Party as finally
      determined by a court of competent jurisdiction.  To the extent it may lawfully do so, each Grantor absolutely and irrevocably waives and relinquishes the benefit and advantage of, and covenants not to assert against the Lender or any other Secured
      Party, any valuation, stay, appraisal, extension, moratorium, redemption or similar laws and any and all rights or defenses it may have as a surety now or hereafter existing which, but for this provision, might be applicable to the sale of any
      Collateral made under the judgment, order or decree of any court, or privately under the power of sale conferred by this Security Agreement, or otherwise.  Except as otherwise specifically provided herein, each Grantor hereby waives presentment,
      demand, protest or any notice (to the maximum extent permitted by applicable law) of any kind in connection with this Security Agreement or any Collateral.

     

    7.2            Limitation on the Lender’s Duty with Respect to the Collateral.  The Lender shall have no obligation to clean-up or
      otherwise prepare the Collateral for sale. The Lender shall use reasonable care with respect to the Collateral in its possession or under its control.  The Lender shall not have any other duty as to any Collateral in its possession or control or in
      the possession or control of any agent or nominee of the Lender, or any income thereon or as to the preservation of rights against prior parties or any other rights pertaining thereto.  To the extent that applicable law imposes duties on the Lender
      to exercise remedies in a commercially reasonable manner, each Grantor acknowledges and agrees that it is commercially reasonable for the Lender (i) to fail to incur expenses deemed significant by the Lender to prepare Collateral for disposition or
      otherwise to transform raw material or work in process into finished goods or other finished products for disposition, (ii) to fail to obtain third party consents for access to Collateral to be disposed of, or to obtain or, if not required by other
      law, to fail to obtain governmental or third party consents for the collection or disposition of Collateral to be collected or disposed of, (iii) to fail to exercise collection remedies against Account Debtors or other Persons obligated on Collateral
      or to remove Liens on or any adverse claims against Collateral, (iv) to exercise collection remedies against Account Debtors and other Persons obligated on Collateral directly or through the use of collection agencies and other collection
      specialists, (v) to advertise dispositions of Collateral through publications or media of general circulation, whether or not the Collateral is of a specialized nature, (vi) to contact other Persons, whether or not in the same business as such
      Grantor, for expressions of interest in acquiring all or any portion of such Collateral, (vii) to hire one or more professional auctioneers to assist in the disposition of Collateral, whether or not the Collateral is of a specialized nature, (viii)
      to dispose of Collateral by utilizing internet sites that provide for the auction of assets of the types included in the Collateral or that have the reasonable capacity of doing so, or that match buyers and sellers of assets, (ix) to dispose of
      assets in wholesale rather than retail markets, (x) to disclaim disposition warranties, such as title, possession or quiet enjoyment, (xi) to purchase insurance or credit enhancements to insure the Lender against risks of loss, collection or
      disposition of Collateral or to provide to the Lender a guaranteed return from the collection or disposition of Collateral, or (xii) to the extent deemed appropriate by the Lender, to obtain the services of other brokers, investment bankers,
      consultants and other professionals to assist the Lender in the collection or disposition of any of the Collateral.  The Grantor acknowledges that the purpose of this Section 7.2 is to provide non-exhaustive indications of what
      actions or omissions by the Lender would be commercially reasonable in the Lender’s exercise of remedies against the Collateral and that other actions or omissions by the Lender shall not be deemed commercially unreasonable solely on account of not
      being indicated in this Section 7.2.  Without limitation upon the foregoing, nothing contained in this Section 7.2 shall be construed to grant any rights to the Grantor or to impose any duties on the Lender
      that would not have been granted or imposed by this Security Agreement or by applicable law in the absence of this Section 7.2.

     

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

     

    7.4            Secured Party Performance of Debtor Obligations.  Without having any obligation to do so, the Lender may perform or
      pay any obligation which any Grantor has agreed to perform or pay in this Security Agreement and the Grantors shall reimburse the Lender for any amounts paid by the Lender pursuant to this Section 7.4.  The Grantors’ obligation
      to reimburse the Lender pursuant to the preceding sentence shall be a Secured Obligation payable on demand.

     

    7.5            Specific Performance of Certain Covenants.  Each Grantor acknowledges and agrees that a breach of any of the covenants
      contained in Sections 4.1(d), 4.1(e), 4.4, 4.5, 4.7, 4.8, 4.9, 4.10, 4.12, 4.13, 4.14, 4.16, 5.3, or 7.7 will cause irreparable injury to the Lender and the other Secured Parties, that the Lender and the other
      Secured Parties have no adequate remedy at law in respect of such breaches and therefore agrees, without limiting the right of the Lender to seek and obtain specific performance of other obligations of the Grantors contained in this Security
      Agreement, that the covenants of the Grantors contained in the Sections referred to in this Section 7.5 shall be specifically enforceable against the Grantors.

     

    7.6            Dispositions Not Authorized.  No Grantor is authorized to sell or otherwise dispose of the Collateral except as set
      forth in Section 4.1(d) and notwithstanding any course of dealing between any Grantor and the Lender or other conduct of the Lender, no authorization to sell or otherwise dispose of the Collateral (except as set forth in Section 4.1(d))
      shall be binding upon the Lender or any other Secured Party unless such authorization is in writing signed by the Lender.

     

    7.7            No Waiver; Amendments; Cumulative Remedies.  No failure or delay by the Lender or any other Secured Party to exercise
      any right or power under this Security Agreement shall operate as a waiver thereof, nor shall any single or partial exercise of any such right or power, or any abandonment or discontinuance of steps to enforce such a right or power, preclude any
      other or further exercise thereof or the exercise of any other right or power.  The rights and remedies of the Lender and the other Secured Parties hereunder are cumulative and are not exclusive of any rights or remedies that they would otherwise
      have.  No waiver of any provision of this Security Agreement or consent to any departure by the Grantor therefrom shall in any event be effective unless in writing signed by the Lender and then only to the extent in such writing specifically set
      forth.

     

    
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    7.8            Limitation by Law; Severability of Provisions.  All rights, remedies and powers provided in this Security Agreement
      may be exercised only to the extent that the exercise thereof does not violate any applicable provision of law, and all the provisions of this Security Agreement are intended to be subject to all applicable mandatory provisions of law that may be
      controlling and to be limited to the extent necessary so that they shall not render this Security Agreement invalid, unenforceable or not entitled to be recorded or registered, in whole or in part.  Any provision in this Security Agreement held to be
      invalid, illegal or unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective to the extent of such invalidity, illegality or unenforceability without affecting the validity, legality and enforceability of the remaining
      provisions thereof; and the invalidity of a particular provision in a particular jurisdiction shall not invalidate such provision in any other jurisdiction, and to this end the provisions of this Security Agreement are declared to be severable.

     

    7.9            Reinstatement.  This Security Agreement shall remain in full force and effect and continue to be effective should any
      petition be filed by or against any Grantor for liquidation or reorganization, should any Grantor become insolvent or make an assignment for the benefit of any creditor or creditors or should a receiver or trustee be appointed for all or any
      significant part of any Grantor’s assets, and shall continue to be effective or be reinstated, as the case may be, if at any time payment and performance of the Secured Obligations, or any part thereof (including a payment effected through exercise
      of a right of setoff), is, pursuant to applicable law, rescinded or reduced in amount, or must otherwise be restored or returned by any obligee of the Secured Obligations, whether as a “voidable preference,” “fraudulent conveyance,” or otherwise
      (including pursuant to any settlement entered into by a Secured Party in its discretion), all as though such payment or performance had not been made.  In the event that any payment, or any part thereof (including a payment effected through exercise
      of a right of setoff), is rescinded, reduced, restored or returned, the Secured Obligations shall be reinstated and deemed reduced only by such amount paid and not so rescinded, reduced, restored or returned.

     

    7.10            Benefit of Agreement.  The terms and provisions of this Security Agreement shall be binding upon and inure to the
      benefit of the Grantors, the Lender, the other Secured Parties and their respective successors and assigns (including all persons who become bound as a debtor to this Security Agreement), except that no Grantor shall have the right to assign its
      rights or delegate its obligations under this Security Agreement or any interest herein, without the prior written consent of the Lender.  No sales of participations, assignments, transfers, or other dispositions of any agreement governing the
      Secured Obligations or any portion thereof or interest therein shall in any manner impair the Lien granted to the Lender, for the benefit of the Lender and the other Secured Parties, hereunder.

     

    7.11            Survival of Representations.  All representations and warranties of the Grantors contained in this Security Agreement
      shall survive the execution and delivery of this Security Agreement.

     

    7.12            Taxes and Expenses.  Any taxes (including income taxes) payable or ruled payable by Federal or State authority in
      respect of this Security Agreement shall be paid by the Grantors, together with interest and penalties, if any.  The Grantors shall reimburse the Lender for any and all out-of-pocket expenses and internal charges (including reasonable attorneys’,
      auditors’ and accountants’ fees and reasonable time charges of attorneys, paralegals, auditors and accountants who may be employees of the Lender) paid or incurred by the Lender in connection with the preparation, execution, delivery, administration,
      collection and enforcement of this Security Agreement and, to the extent provided in the Credit Agreement in the audit, analysis, administration, collection, preservation or sale of the Collateral (including the expenses and charges associated with
      any periodic or special audit of the Collateral).  Any and all costs and expenses incurred by the Grantors in the performance of actions required pursuant to the terms hereof shall be borne solely by the Grantors.

     

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

     

    7.14            Termination.  This Security Agreement shall continue in effect (notwithstanding the fact that from time to time there
      may be no Secured Obligations outstanding) until (i) the Credit Agreement has terminated pursuant to its express terms and (ii) all of the Secured Obligations other than contingent indemnification obligations as to which no claim has been made have
      been indefeasibly paid and performed in full (or with respect to any outstanding Letters of Credit, a cash deposit or at the discretion of the Lender, a back-up standby Letter of Credit satisfactory to the Lender has been delivered to the Lender as
      required by the Credit Agreement) and no commitments of the Lender which would give rise to any Secured Obligations are outstanding.

     

    7.15            Entire Agreement.  This Security Agreement and the other Loan Documents embody the entire agreement and understanding
      between the Grantors and the Lender relating to the Collateral and supersedes all prior agreements and understandings between the Grantors and the Lender relating to the Collateral.

     

    7.16            CHOICE OF LAW.  THIS SECURITY AGREEMENT
        SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE INTERNAL LAWS (AND NOT THE LAW OF CONFLICTS) OF THE STATE OF UTAH, BUT GIVING EFFECT TO FEDERAL LAWS APPLICABLE TO NATIONAL BANKS.

     

    7.17            CONSENT TO JURISDICTION.  EACH GRANTOR
        HEREBY IRREVOCABLY SUBMITS, FOR ITSELF AND ITS PROPERTY, TO THE NON EXCLUSIVE JURISDICTION OF ANY U.S. FEDERAL OR UTAH STATE COURT SITTING IN SALT LAKE CITY, UTAH IN ANY ACTION OR PROCEEDING ARISING OUT OF OR RELATING TO THIS SECURITY AGREEMENT OR
        ANY OTHER LOAN DOCUMENT OR FOR RECOGNITION OR ENFORCEMENT OF ANY JUDGMENT, AND EACH GRANTOR HEREBY IRREVOCABLY AND UNCONDITIONALLY AGREES THAT ALL CLAIMS IN RESPECT OF SUCH ACTION OR PROCEEDING MAY BE HEARD AND DETERMINED IN ANY SUCH COURT AND
        IRREVOCABLY AND UNCONDITIONALLY WAIVES, TO THE FULLEST EXTENT IT MAY LEGALLY AND EFFECTIVELY DO SO, ANY OBJECTION IT MAY NOW OR HEREAFTER HAVE AS TO THE VENUE OF ANY SUCH SUIT, ACTION OR PROCEEDING BROUGHT IN SUCH A COURT OR THAT SUCH COURT IS AN
        INCONVENIENT FORUM. EACH OF THE PARTIES HERETO AGREES THAT A FINAL JUDGMENT IN ANY SUCH ACTION OR PROCEEDING SHALL BE CONCLUSIVE AND MAY BE ENFORCED IN OTHER JURISDICTIONS BY SUIT ON THE JUDGMENT OR IN ANY OTHER MANNER PROVIDED BY LAW.  NOTHING
        HEREIN SHALL AFFECT THE RIGHT OF THE LENDER TO BRING PROCEEDINGS AGAINST ANY GRANTOR IN THE COURTS OF ANY OTHER JURISDICTION.  ANY JUDICIAL PROCEEDING BY ANY GRANTOR AGAINST THE LENDER OR ANY AFFILIATE OF THE LENDER INVOLVING, DIRECTLY OR
        INDIRECTLY, ANY MATTER IN ANY WAY ARISING OUT OF, RELATED TO, OR CONNECTED WITH THIS SECURITY AGREEMENT OR ANY OTHER LOAN DOCUMENT SHALL BE BROUGHT ONLY IN A COURT IN SALT LAKE CITY, UTAH.

     

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

     

    7.19            Indemnity.  Each Grantor hereby agrees to indemnify the Lender, the other Secured Parties and their respective
      successors, assigns, agents and employees, from and against any and all liabilities, damages, penalties, suits, fees, costs, and expenses of any kind and nature (including, without limitation, all expenses of litigation or preparation therefor
      whether or not the Lender or any other Secured Party is a party thereto) imposed on, incurred by or asserted against the Lender or any other Secured Party, or their respective successors, assigns, agents and employees, in any way relating to or
      arising out of this Security Agreement, or the manufacture, purchase, acceptance, rejection, ownership, delivery, lease, possession, use, operation, condition, sale, return or other disposition of any Collateral (including, without limitation, latent
      and other defects, whether or not discoverable by any Secured Party or any Grantor, and any claim for Patent, Trademark or Copyright infringement).

     

    7.20            Counterparts.  This Security Agreement may be executed in any number of counterparts, all of which taken together
      shall constitute one agreement, and any of the parties hereto may execute this Security Agreement by signing any such counterpart.  Delivery of an executed counterpart of a signature page of this Security Agreement by facsimile or other electronic
      transmission shall be effective as delivery of a manually executed counterpart of this Security Agreement.

     

    ARTICLE VIII

      

      NOTICES

     

    8.1            Sending Notices.  Any notice required or permitted to be given under this Security Agreement shall be sent in
      accordance with Section 8.01 of the Credit Agreement, provided that notices to a Grantor shall be sent to such Grantor at its mailing address set forth in Exhibit A hereto.

     

    8.2            Change in Address for Notices.  Each of the Grantors and the Lender may change the address for service of notice upon
      it by a notice in writing to the other parties.

     

    [Signature Page Follows]

    

    

    

    

    
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    IN WITNESS WHEREOF, the Grantors and the Lender have executed this Security Agreement as of the date first above written.

     

                            

   

                         

                          GRANTORS: 

     

    

    FRANKLIN COVEY CO.

    a Utah corporation

    

    

    By: /s/ Stephen D. Young

    Name: Stephen D. Young

    Title: Executive Vice President, Chief Financial Officer, and Corporate Secretary

    

    

    

    

    FRANKLIN DEVELOPMENT CORPORATION

    a Utah corporation

    

    

    By: /s/ Stephen D. Young

    Name: Stephen D. Young

    Title: President

    

    

    

    

    FRANKLIN COVEY TRAVEL, INC.

    a Utah corporation

    

    

    By: /s/ Stephen D. Young

    Name: Stephen D. Young

    Title: President

    

    

    

    

    FRANKLIN COVEY CLIENT SALES, INC.

    a Utah corporation

    

    

    By: /s/ Stephen D. Young

    Name: Stephen D. Young

    Title: President

    

    

     

    

    LENDER:

    

    

    JPMORGAN CHASE BANK, N.A.

    

    

    

    

    By: /s/ Kristin Gubler

    Name: Kristin Gubler

    Title: Authorized SignerExhibit

EXHIBIT 10.1

ASSURANT, INC.
AMENDED AND RESTATED DIRECTORS COMPENSATION PLAN

ARTICLE 1
PURPOSE

1.1    PURPOSE. The purpose of the Assurant, Inc. Amended and Restated Directors Compensation Plan is to attract, retain and compensate highly-qualified individuals who are not employees of Assurant, Inc. or any of its subsidiaries or affiliates for service as members of the Board by providing them with competitive compensation and an ownership interest in the Common Stock of the Company. The Company intends that the Plan will benefit the Company and its stockholders by allowing Non-Employee Directors to have a personal financial stake in the Company through an ownership interest in the Common Stock and will closely associate the interests of Non-Employee Directors with that of the Company’s stockholders.

1.2    ELIGIBILITY. All active Non-Employee Directors shall automatically be participants in the Plan.

ARTICLE 2
DEFINITIONS

2.1    DEFINITIONS. Unless the context clearly indicates otherwise, the following terms shall have the following meanings:

(a)    “Base Annual Retainer” means the annual cash retainer (excluding expenses) payable by the Company to a Non-Employee Director pursuant to Section 4.1 hereof for service as a director of the Company (i.e., excluding any Supplemental Annual Retainer), as such amount may be changed from time to time.

(b)    “Board” means the Board of Directors of the Company.

(c)    “Company” means Assurant, Inc., a Delaware corporation.

(d)    “Common Stock” means the common stock, par value $0.01 per share, of the Company.

(e)    “Disability” means any illness or other physical or mental condition of a Non-Employee Director that renders him or her incapable of performing as a director of the Company, or any medically determinable illness or other physical or mental condition resulting from a bodily injury, disease or mental disorder which, in the judgment of the Board, is permanent and continuous in nature. The Board may require such medical or other evidence as it deems necessary to judge the nature and permanency of a Non-Employee Director’s condition.

(f)    “Effective Date” has the meaning set forth in Section 7.6 of the Plan.

(g)    “Non-Employee Director” means a director of the Company who is not an employee of the Company. 

(h)    “Plan” means the Assurant, Inc. Amended and Restated Directors Compensation Plan, as amended from time to time.

(i)    “Plan Year(s)” means the calendar year. 

(j)    “Restricted Stock Unit” means a unit denominated in shares of Common Stock contingently awarded in accordance with Article 5.  

(k)    “Supplemental Annual Retainer” means the annual retainer (excluding expenses) payable by the Company to a Non-Employee Director pursuant to Section 4.2 hereof for service as the Chair of the Board or as a chair (or vice chair) of a committee of the Board, as such amount may be changed from time to time.

ARTICLE 3
ADMINISTRATION

3.1    ADMINISTRATION. The Plan shall be administered by the Board.  Subject to the provisions of the Plan, the Board shall be authorized to interpret the Plan, to establish, amend and rescind any rules and regulations relating to the Plan, and to make all other determinations necessary or advisable for the administration of the Plan. The Board’s interpretation of the Plan, and all actions taken and determinations made by the Board pursuant to the powers vested in it hereunder, shall be conclusive and binding upon all parties concerned including the Company, its stockholders and persons granted awards under the Plan. The Board may appoint a plan administrator to carry out the ministerial functions of the Plan, but the administrator shall have no other authority or powers of the Board.

3.2    RELIANCE. In administering the Plan, the Board may rely upon any information furnished by the Company, its public accountants and other experts. No individual will have personal liability by reason of anything done or omitted to be done by the Company or the Board in connection with the Plan.

3.3    INDEMNIFICATION. Each person who is or has been a member of the Board or who otherwise participates in the administration or operation of the Plan shall be indemnified by the Company against, and held harmless from, any loss, cost, liability or expense that may be imposed upon or incurred by him or her in connection with or resulting from any claim, action, suit or proceeding in which such person may be involved by reason of any action taken or failure to act under the Plan and shall be fully reimbursed by the Company for any and all amounts paid by such person in satisfaction of judgment against him or her in any such action, suit or proceeding, provided he or she will give the Company an opportunity, by written notice to the Board, to defend the same at the Company’s own expense before he or she undertakes to defend it on his or her own behalf. This right of indemnification shall not be exclusive of any other rights of indemnification.

ARTICLE 4
CASH COMPENSATION

4.1    BASE ANNUAL RETAINER. Each Non-Employee Director shall be paid a Base Annual Retainer for service as a director during each Plan Year, payable in such installments as the Board may determine at its discretion.  The amount of the Base Annual Retainer shall be established from time to time by the Board. Until changed by the Board, the Base Annual Retainer shall be $100,000 for a full Plan Year. Each person who first becomes a Non-Employee Director on a date other than January 1 of any year shall be paid a pro-rata retainer equal to the Base Annual Retainer for such Plan Year, multiplied by a fraction, the numerator of which is the number of full months and portions thereof before the end of the Plan Year, and the denominator of which is 12. Payment of such prorated Base Annual Retainer shall begin on the date that the person first becomes a Non-Employee Director.

4.2    SUPPLEMENTAL ANNUAL RETAINER. Non-Employee Directors who serve as Chair of the Board or as a chair (or vice chair) of a committee of the Board during a Plan Year shall be paid a Supplemental Annual Retainer with respect to such service, payable quarterly at the same times as installments of the Base Annual Retainer are paid.  The amount of the Supplemental Annual Retainer shall be established from time to time by the Board. Until changed by the Board, the Supplemental Annual Retainer for a full Plan Year shall be as follows:

	
		
	 
	Chair

	Chair of the Board
	$180,000

	Audit Committee
	$  25,000

	Vice Chair - Audit Committee
	$  15,000

	Compensation Committee
	$  20,000

	Nominating and Corporate Governance Committee
	$  20,000

	Finance and Risk Committee
	$  20,000

	Executive Committee
	$           0

	Any additional committee formed in the future
	$  15,000

A pro-rata Supplemental Annual Retainer will be paid to any Non-Employee Director who becomes Chair of the Board or chairs (or vice chairs) a committee of the Board on a date other than the beginning of a Plan Year, based on the number of full months and portions thereof between the date such Non-Employee Director commenced service and the beginning of the next Plan Year.

4.3    TRAVEL EXPENSE REIMBURSEMENT. All Non-Employee Directors shall be reimbursed for reasonable travel expenses (including spouse’s expenses to attend events to which spouses are invited) in connection with attendance at meetings of the Board and its committees, or other Company functions at which the Chief Executive Officer requests the Non-Employee Director to participate. If the travel expense is related to the reimbursement of commercial airfare, such reimbursement will not exceed first class rates. If the travel expense is related to reimbursement of 

non-commercial air travel, such reimbursement shall not exceed the rate for comparable travel by means of commercial airlines. 

ARTICLE 5
EQUITY COMPENSATION

5.1    EQUITY GRANTS.

(a)    Initial Stock Grant. Each Non-Employee Director shall receive, on the later of the Effective Date of the Plan or the first date he or she becomes a Non-Employee Director, an award of a number of Restricted Stock Units equal to the quotient of (x) $140,000 and (y) the closing price of the Common Stock on the New York Stock Exchange on such date, rounded up to the nearest whole unit.  In no event will a director receive an initial award of shares if the next annual meeting of stockholders is within four months of the date he or she becomes a Non-Employee Director.
 
(b)    Annual Equity Grants. On the day following each annual meeting of the Company’s stockholders, each Non-Employee Director in service on that date will receive an award of a number of Restricted Stock Units equal to the quotient of (x) $140,000 and (y) the closing price of the Common Stock on the New York Stock Exchange on such day, rounded up to the nearest whole unit.  

(c)    Source of Awards.  The Restricted Stock Units described in this Article 5 shall be granted, and the shares of Common Stock underlying such Restricted Stock Units shall be issued, pursuant and subject to the terms and conditions of the Assurant, Inc. Long-Term Incentive Plan (the “ALTEIP”).  

(d)    Award Agreements. All awards of Restricted Stock Units to a Non-Employee Director under the ALTEIP shall be evidenced by a written Award Agreement between the Company and the Non-Employee Director, which shall include such provisions, not inconsistent with the ALTEIP, as may be specified by the Board.

ARTICLE 6
AMENDMENT, MODIFICATION AND TERMINATION

6.1    AMENDMENT, MODIFICATION AND TERMINATION. The Board may, at any time and from time to time, amend, modify or terminate the Plan; provided, that no such amendment, modification or termination shall adversely affect awards outstanding as of the effective date of such amendment; provided, further, however, that if an amendment to the Plan would constitute a change requiring shareholder approval under applicable laws, policies or regulations or the applicable listing or other requirements of a securities exchange on which the Common Stock is listed or traded, then such amendment shall be subject to stockholder approval.

ARTICLE 7
GENERAL PROVISIONS

7.1    ELECTION TO DEFER PAYMENT. A Participant may elect to defer receipt of any cash payment under the Plan. Such election shall be made in writing and delivered to the plan administrator in compliance with, and such deferral shall be governed solely by the terms of, the Assurant, Inc. Deferred Compensation Plan.

7.2    RESTRICTIONS OF LENDERS. The Company’s obligations under the Plan shall be subject to, and may from time to time be prohibited by, agreements that may be in effect from time to time among or between the Company or its affiliates and their respective lenders. In the event that the Company would not be able to perform any of its agreements or fulfill any of its obligations hereunder without violating such a loan agreement, the Company shall be excused from such performance or fulfillment with no liability therefor to the Non-Employee Directors; provided that if and when such performance or fulfillment would no longer be such a violation, the Company shall have the obligation to complete such performance or fulfillment at that time.

7.3    DURATION OF THE PLAN. The Plan shall remain in effect until the day immediately following the 2018 annual meeting of Company’s stockholders, unless terminated earlier by the Board.  

7.4    EXPENSES OF THE PLAN. The expenses of administering the Plan shall be borne by the Company. 

7.5    GOVERNING LAW.  To the extent not governed by federal law, the Plan and all Award Certificates shall be construed in accordance with and governed by the laws of the State of Delaware.

7.6    EFFECTIVE DATE. The Plan was originally adopted by the Board on October 15, 2003 and was approved by the sole stockholder on October 15, 2003. The Plan was amended by the Board on December 12, 2003, became effective on February 4, 2004 (the “Effective Date”), was amended and restated on June 3, 2005, amended on March 9, 2007, amended on November 9, 2007, amended and restated effective May 15, 2009, amended and restated effective January 1, 2010, amended and restated effective January 1, 2011, amended and restated effective January 1, 2013, amended and restated effective May 13, 2016, amended effective July 1, 2018 and amended effective May 8, 2019.

	
			
	ASSURANT, INC.

	 
	 
	 

	 
	 
	 

	By: 
	 
	Robyn Price Stonehill 

	Title:
	 
	Executive Vice President, Chief Human Resources Officer

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