Document:

Exhibit 10.3

  

   

    

  
    Execution Version

  

   

  

  
    NOTWITHSTANDING ANYTHING HEREIN TO THE CONTRARY, THE LIEN AND SECURITY INTEREST GRANTED TO THE COLLATERAL AGENT PURSUANT TO THIS SECURITY AGREEMENT AND THE EXERCISE OF ANY RIGHT OR REMEDY BY THE
      COLLATERAL AGENT HEREUNDER ARE SUBJECT TO THE PROVISIONS OF THE “PARI PASSU INTERCREDITOR AGREEMENT” (AS DEFINED IN THE CREDIT AGREEMENT REFERRED TO BELOW).  IN THE EVENT OF ANY CONFLICT BETWEEN THE TERMS OF THE PARI PASSU INTERCREDITOR AGREEMENT AND
      THIS SECURITY AGREEMENT, THE TERMS OF THE PARI PASSU INTERCREDITOR AGREEMENT SHALL GOVERN AND CONTROL; PROVIDED HOWEVER, THE CREDIT AGREEMENT (AS DEFINED BELOW) AND THIS SECURITY AGREEMENT SHALL GOVERN AND CONTROL THE RIGHTS, POWERS, PROTECTIONS,
      IMMUNITIES, AND INDEMNITIES OF THE COLLATERAL AGENT.

    

    

    PLEDGE AND SECURITY AGREEMENT

    

    

    THIS PLEDGE AND SECURITY AGREEMENT (as it may be amended or modified from time to time, the “Security Agreement”) is entered into as of February 11, 2021 by and among Turning Point Brands,
      Inc., a Delaware corporation (the “Company”), the other parties named on the signature pages hereto (together with the Company, the “Grantors”, and each a “Grantor”), and Barclays Bank PLC, in its capacity as collateral agent
      (the “Collateral Agent”) for the Lenders and L/C Issuers party to the Credit Agreement referred to below.

    

    

    PRELIMINARY STATEMENT

    

    

    The Grantors, Barclays Bank PLC, in its capacity as the administrative agent (the “Administrative Agent”), the Collateral Agent, the Lenders and the L/C Issuers are entering into a Credit
      Agreement dated as of February 11, 2021 (as it may be amended or modified from time to time, the “Credit Agreement”).  Each Grantor is entering into this Security Agreement in order to induce the Lenders and L/C Issuers to enter into and
      extend credit to the Borrowers under the Credit Agreement and to secure the Secured Obligations that it has agreed to guarantee pursuant to the Guarantee Agreement.

    

    

    ACCORDINGLY, the Grantors and the Collateral Agent, on behalf of the Lenders and the L/C Issuers, 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 (and if defined in more than one
      article of the UCC shall have the meaning specified in Article 9 thereof).

    

    

    
      
        

    

    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:

    

    

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

    

    

    “Assigned Contracts” means, collectively, all of the Grantors’ rights and remedies under, and all moneys and claims for money due or to become due to any Grantor under all contracts and other
      agreements between any Grantor and any party other than the Collateral Agent or any Lender and all amendments, supplements, extensions, and renewals thereof including all rights and claims of such Grantor now or hereafter existing:  (a) under any
      insurance, indemnities, warranties, and guarantees provided for or arising out of or in connection with any of the foregoing agreements; (b) for any damages arising out of or for breach or default under or in connection with any of the foregoing
      agreements; (c) to all other amounts from time to time paid or payable under or in connection with any of the foregoing agreements; or (d) to exercise or enforce any and all covenants, remedies, powers and privileges thereunder.

    

    

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

    

    

    “Commercial Tort Claims” means “commercial tort claims” as defined in Article 9 of the UCC and shall include, without limitation, the existing commercial tort claims of each Grantor now or
      hereafter set forth in Exhibit C attached hereto, as amended or supplemented to reflect such additional Commercial Tort Claims.

    

    

    “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 U.S. 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 in any of the foregoing throughout the
      world.

    

    

    “Excluded Swap Obligation” means, with respect to any Guarantor, (x) as it relates to all or a portion of the Guarantee of such Guarantor, any Hedging Obligation if,
      and to the extent that, such Hedging Obligation (or any Guarantee thereof) is or becomes illegal under the Commodity Exchange Act or any rule, regulation or order of the Commodity Futures Trading Commission (or the application or official
      interpretation of any thereof) by virtue of such Guarantor’s failure for any reason to constitute an “eligible contract participant” as defined in the Commodity Exchange Act and the regulations thereunder at the time the Guarantee of such Guarantor
      becomes effective with respect to such Hedging Obligation or (y) as it relates to all or a portion of the grant by such Guarantor of a security interest, any Hedging Obligation if, and to the extent that, such Hedging Obligation (or such security
      interest in respect thereof) is or becomes illegal under the Commodity Exchange Act or any rule, regulation or order of the Commodity Futures Trading Commission (or the application or official interpretation of any thereof) by virtue of such
      Guarantor’s failure for any reason to constitute an “eligible contract participant” as defined in the Commodity Exchange Act and the regulations thereunder at the time the security interest of such Guarantor becomes effective with respect to such
      Hedging Obligation.  If a Hedging Obligation arises under a master agreement governing more than one swap, such exclusion shall apply only to the portion of such Hedging Obligation that is attributable to swaps for which such Guarantee or security
      interest is or becomes illegal.

    

    

    
      
        

    

    “Exhibit” refers to a specific exhibit to this Security Agreement, unless another document is specifically referenced.  References to any Exhibit shall mean such Exhibit as amended,
      supplemented or otherwise modified from time to time.

    

    

    “Licenses” means, with respect to any Person, (a) any and all licensing agreements or arrangements granting rights in and to its Patents, Copyrights, or Trademarks, (b) all of such Person’s
      right, title, and interest in and to 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 U.S. patents and patent applications; (b) all inventions and
      improvements described and claimed therein; (c) all reissues, divisionals, 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 in any of the foregoing throughout the
      world.

    

    

    “Pledged Collateral” means all Instruments, Securities and other Investment Property of the Grantors, whether or not physically delivered to the Collateral Agent pursuant to this Security
      Agreement, but excluding any Excluded Assets.

    

    

    “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 Obligations” means the Obligations.

    

    

     “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.

    

    

    
      
        

    

    “Trademarks” means, with respect to any Person, all of such Person’s right, title, and interest in and to the following:  (a) all U.S. 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 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 in any of the foregoing throughout the world.

    

    

    “UCC” means the Uniform Commercial Code, as in effect from time to time, of the State of New York 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, Collateral Agent’s or any Lender’s Lien on any Collateral.

    

    

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

    

    

    ARTICLE II

    GRANT OF SECURITY INTEREST

    

    

    Each Grantor hereby pledges, assigns and grants to the Collateral Agent, on behalf of and for the ratable 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 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, Trademarks and Licenses;

            

    

    

    

    
      	 	
              (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;

            

    

    

    

    	

          	(xvi)	
            all securities accounts with any financial institution or securities intermediary;

          

    

    

    
      	 	
              (xvii)

            	
              all Assigned Contracts; and

            

    

    

    

    	

          	(xviii)	
            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.

    

    

    Notwithstanding anything herein to the contrary, in no event shall the Collateral include, and no Grantor shall be deemed to have granted a security interest in, any Excluded Assets.

    

    

    ARTICLE III

    REPRESENTATIONS AND WARRANTIES

    

    

    Each Grantor represents and warrants to the Collateral Agent and the Lenders that:

    

    

    3.1.        Title, 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 Permitted Liens, and has full power and authority to grant to the Collateral Agent the security interest in the Collateral pursuant hereto.  When financing
      statements have been filed in the appropriate offices against such Grantor in the locations listed on Exhibit F, the Collateral Agent will have a fully perfected first priority security interest in that Collateral of the Grantor in which a
      security interest may be perfected by filing, subject only to Permitted Liens.

    

    

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

    

    

    
      
        

    

    3.3.        Principal Location.  Such Grantor’s mailing address 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), are disclosed in Exhibit A.

    

    

    3.4.        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.

    

    

    3.5.         [Reserved].

    

    

    3.6.        Deposit Accounts and Securities Accounts.  All of such Grantor’s Deposit Accounts and Securities Accounts are listed on Exhibit B.

    

    

    3.7.         Intellectual Property.  Such Grantor does not have any interest in, or title to, any Patent, Trademark or Copyright, except as set forth in Exhibit D.

    

    

    3.8.         Filing Requirements.  As of the date hereof, none of the Collateral owned by it with a value exceeding $5,000,000 for any individual item of Collateral is of a type for which
      security interests or liens may be perfected by filing under any federal statute except for Patents, Trademarks and Copyrights held by such Grantor and described in Exhibit D.

    

    

    3.9.        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
      naming such Grantor as debtor has been filed or is of record in any jurisdiction except for financing statements or security agreements (a) naming the Collateral Agent on behalf of the Secured Parties and (b) as otherwise permitted under the Loan
      Documents.

    

    

    3.10.       Pledged Collateral.

    

    

    (a)         Exhibit E sets forth a complete and accurate list of all Pledged Collateral owned by such Grantor as of the date hereof.  Such Grantor is the direct, sole beneficial owner and sole holder
      of record of the Pledged Collateral listed on Exhibit E as being owned by it, free and clear of any Liens, except for the security interest granted to the Collateral Agent for the benefit of the Secured Parties hereunder and Permitted Liens.  Such
      Grantor further represents and warrants that 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.

    

    

    (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 to or 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 exercise by the Collateral Agent 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 E, such Grantor owns 100% of the issued and outstanding Equity Interests which constitute Pledged Collateral owned by it.

    

    

    ARTICLE IV

    COVENANTS

    

    

    From the date of this Security Agreement, and thereafter until this Security Agreement is terminated, each Grantor agrees that:

    

    

    4.1.         General.

    

    

    (a)          Collateral Records.  Such Grantor shall maintain complete and accurate (in all material respects) books and records with respect to the Collateral owned by it, and furnish to the
      Collateral Agent, such reports relating to such Collateral as the Collateral Agent shall from time to time request.

    

    

    (b)        Authorization to File Financing Statements; Ratification.  Such Grantor hereby authorizes the Collateral Agent to file all financing statements and other documents as may from time
      to time be reasonably required by the Collateral Agent in order to maintain a perfected security interest in the Collateral owned by such Grantor with the priority required by the Credit Agreement.  Any financing statement so authorized 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, 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 whether such Grantor is an organization, the type
      of organization and any organization identification number issued to such Grantor.  Such Grantor also agrees to furnish any such information described in the foregoing sentence to the Collateral Agent promptly upon request.  Such Grantor also
      ratifies its authorization for the Collateral Agent to have filed in any UCC jurisdiction any initial financing statements or amendments thereto if filed prior to the date hereof.  Notwithstanding the foregoing authorizations, each Grantor agrees to
      prepare, record and file, at its own expense, financing statements (and amendments or continuation statements when applicable) with respect to Collateral now existing or hereafter created meeting the requirements of the applicable state law in such
      manner and in such jurisdictions are necessary to prefect and maintain a perfected Lien in the Collateral, and to timely deliver a file-stamped copy of each filed financing statement or other evidence of filing to the Collateral Agent. 
      Notwithstanding anything herein to the contrary, the Collateral Agent shall have no responsibility for preparing, recording, filing, re-recording, or re-filing any financing statement, perfection statement, continuation statement or other instrument
      in any public office or for otherwise ensuring the perfection or maintenance of any security interest granted pursuant to this Security Agreement, the Credit Agreement or any Loan Document.

    

    

    
      
        

    

    (c)         Other Financing Statements.  Such Grantor shall 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 Collateral Agent on behalf of the Secured Parties as the secured party, and (ii) in respect to Permitted Liens.  Each Grantor acknowledges that it is not authorized to file any financing statement or
      amendment or termination statement with respect to any financing statement filed by the Collateral Agent without the prior written consent of the Collateral Agent, subject to such Grantor’s rights under Section 9-509(d)(2) of the UCC.

    

    

    4.2.         Delivery of Instruments, Securities, Chattel Paper and Documents.  Each Grantor shall (a) deliver to the Collateral Agent immediately upon execution of this Security Agreement
      and from time-to-time as required herein the originals of all Securities and Instruments constituting Collateral owned by it (if any then exist) with a value in excess of $5,000,000 individually, (b) hold in trust for the Collateral Agent upon
      receipt and upon request deliver to the Collateral Agent any other Securities and Instruments constituting Collateral and (c) upon the Collateral Agent’s request, deliver to the Collateral Agent (and thereafter hold in trust for the Collateral Agent
      upon receipt and immediately deliver to the Collateral Agent) any Document evidencing or constituting Collateral.  Such Grantor hereby authorizes the Collateral Agent to attach each Amendment to this Security Agreement and agrees that all additional
      Collateral owned by it set forth in such Amendments shall be considered to be part of the Collateral.

    

    

    4.3.         Pledged Collateral.

    

    

    (a)          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.

    

    

    (ii)         Such Grantor shall permit the Collateral Agent or its nominee at any time during the continuation of an Event of Default, after prior written notice to any Grantor, 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 such Pledged Collateral as if it were the absolute owner thereof.

    

    

    (iii)        Unless an Event of Default under the Credit Agreement has occurred and is ongoing, 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.

    

    

    4.4.        Uncertificated Pledged Collateral.  Such Grantor shall permit the Collateral Agent from time to time to direct the appropriate issuers 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 Collateral Agent granted pursuant to this Security Agreement.

    

    

    
      
        

    

    4.5.         Intellectual Property.

    

    

    (a)         Such Grantor shall take all actions necessary and appropriate to maintain and pursue each material application, to obtain the relevant registration and to maintain the registration of
      each of its material Patents, Trademarks and Copyrights (now or hereafter existing), including the filing of applications for renewal, affidavits of use, affidavits of non-contestability and opposition and interference and cancellation proceedings,
      except to the extent the failure to so is not prohibited by the Credit Agreement.

    

    

    (b)         Such Grantor shall, unless it reasonably determines that such Patent, Trademark or Copyright is not material to the conduct of its business or operations, promptly enforce its rights in
      any such material Patent, Trademark or Copyright, including suing for infringement, misappropriation or dilution and to recover any and all damages for such infringement, misappropriation or dilution, and shall take such other actions where the
      Grantor, in the exercise of its reasonable business judgment, determines that such action is appropriate, or if during the existence of an Event of Default, as the Collateral Agent shall deem appropriate  under the circumstances to protect such
      material Patent, Trademark or Copyright.

    

    

    4.6.       Commercial Tort Claims.  Such Grantor shall promptly, and in any event within 30 days after a Commercial Tort Claim exceeding $5,000,000 is filed in a court of competent
      jurisdiction, notify the Collateral Agent and, unless the Collateral Agent otherwise consents, such Grantor shall enter into an amendment to this Security Agreement, in the form of Exhibit G hereto, granting to Collateral Agent a first
      priority security interest in such Commercial Tort Claim and in the proceeds thereof, and amending and supplementing Exhibit C.

    

    

    4.7.       Federal, State or Municipal Claims.  Such Grantor shall promptly notify the Collateral Agent of any Collateral which constitutes a claim in excess of $5,000,000 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.

    

    

    4.8.        No Interference.  Such Grantor agrees that it shall not interfere with any right, power and remedy of the Collateral Agent 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 Collateral Agent of any one or more of such rights, powers or remedies.

    

    

    4.9.        Change of Name or Location.  Such Grantor shall notify the Collateral Agent in writing within 30 days of each of the following (a) a change of its name as it appears in official
      filings in the state or jurisdiction of its incorporation or organization, (b) a change of its chief executive office, (c) a change of the type of entity that it is or (d) a change of its state or jurisdiction of incorporation or organization, in
      each case, and shall take any action necessary and appropriate in connection therewith (including any action to continue the perfection of any Liens in favor of the Collateral Agent, on behalf of Secured Parties, in any Collateral).

    

    

    ARTICLE V

    EVENTS OF DEFAULT AND REMEDIES

    

    

    5.1.         Remedies.

    

    

    (a)          Upon the occurrence of an Event of Default which is continuing, the Collateral Agent may, and at the written request of the Required Lenders shall, 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 5.1 shall not be understood to limit any rights or remedies available to the Collateral Agent and the 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)        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 Collateral Agent may deem commercially reasonable; and

    

    

    (iv)        concurrently upon 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, to 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, to
      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 Collateral Agent was the outright owner thereof.

    

    

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

    

    

    (c)         The Collateral Agent 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
      Collateral Agent and the 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.

    

    

    (d)          Until the Collateral Agent is able to effect a sale, lease, or other disposition of Collateral, the Collateral Agent 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 Collateral Agent.  The Collateral Agent may, if it so elects, seek the appointment of a receiver or
      keeper to take possession of Collateral and to enforce any of the Collateral Agent’s remedies (for the benefit of the Collateral Agent and Secured Parties), with respect to such appointment without prior notice or hearing as to such appointment.

    

    

    
      
        

    

    (e)          Notwithstanding the foregoing, neither the Collateral Agent nor the Lenders shall be required to (i) make any demand upon, or pursue or exhaust any of their 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 their 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.

    

    

    (f)          Each Grantor recognizes that the Collateral Agent 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 Collateral Agent 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. The Collateral Agent shall incur no liability as a result of the sale (whether public or private) of the Collateral or any part thereof at any sale pursuant to this Agreement conducted in a
      commercially reasonable manner.  Each of the Grantors and Secured Parties hereby waive any claims against the Collateral Agent arising by reason of the fact that the price at which the Collateral may have been sold at such sale (whether public or
      private) was less than the price that might have been obtained otherwise, even if the Collateral Agent accepts the first offer received and does not offer the Collateral to more than one offeree, so long as such sale is conducted in a commercially
      reasonable manner.  Each of the Grantors and Secured Parties hereby agree that in respect of any sale of any of the Collateral pursuant to the terms hereof, Collateral Agent is hereby authorized to comply with any limitation or restriction in
      connection with such sale as it may be advised by counsel is necessary in order to avoid any violation of applicable laws, or in order to obtain any required approval of the sale or of the purchaser by any governmental authority or official, and the
      Grantors and Secured Parties further agree that such compliance shall not, in and of itself, result in such sale being considered or deemed not to have been made in a commercially reasonable manner, nor shall the Collateral Agent be liable or
      accountable to the Grantors or Secured Parties for any discount allowed by reason of the fact that the Collateral or any part thereof is sold in compliance with any such limitation or restriction.

    

    

    5.2.         Grantor’s Obligations Upon Event of Default.  Upon the request of the Collateral Agent after the occurrence of an Event of Default which is continuing, each Grantor shall:

    

    

    
      
        

    

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

    

    

    (b)         permit the Collateral Agent, by the Collateral Agent’s representatives and agents, to enter, occupy and use any premises where all or any part of the Collateral, or the books and records
      relating thereto, or both, are located, to take possession of all or any part of the Collateral or the books and records relating thereto, or both, to remove all or any part of the Collateral or the books and records relating thereto, or both, and to
      conduct sales of the Collateral, without any obligation to pay the 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 Collateral Agent may request, all in form and substance satisfactory to the Collateral Agent, and furnish to the Collateral Agent, or cause an
      issuer of Pledged Collateral to furnish to the Collateral Agent, any information regarding the Pledged Collateral in such detail as the Collateral Agent may specify; and

    

    

    (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 Collateral Agent to consummate a public
      sale or other disposition of the Pledged Collateral.

    

    

    5.3.        Grant of Intellectual Property License.  For the purpose of enabling the Collateral Agent to exercise the rights and remedies under this Article V solely during such time
      as the Collateral Agent shall be lawfully entitled to exercise such rights and remedies, each Grantor hereby (a) grants to the Collateral Agent, to the extent that it has the right to do so and subject to any pre-existing rights of third parties, for
      the benefit of the Secured Parties, an irrevocable, assignable nonexclusive license (exercisable without payment of royalty or other compensation to any Grantor) to use, license or sublicense any intellectual property rights now owned or hereafter
      owned or licensed 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, for the avoidance of doubt solely to the extent necessary or advisable (as determined in the Collateral Agent’s reasonable discretion) for the Collateral Agent to exercise the rights and remedies under this Article V and (b)
      irrevocably agrees that the Collateral Agent 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 Collateral Agent’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 Collateral Agent may finish any work in process and affix any Trademark owned by or licensed to such Grantor and sell such Inventory as provided herein, provided in each of the foregoing grants that, with respect to Trademarks,
      such Grantor shall have such rights of quality control solely as are necessary under applicable law to maintain the validity and enforceability of such Trademarks.

    

    

    
      
        

    

    ARTICLE VI

    ATTORNEY IN FACT; PROXY

    

    

    6.1.         Authorization for Collateral Agent to Take Certain Action.

    

    

    (a)          Each Grantor irrevocably authorizes the Collateral Agent at any time and from time to time as necessary and appropriate (in the discretion of the Collateral Agent) and appoints the
      Collateral Agent as its attorney in fact (i) to file financing statements necessary or desirable in the Collateral Agent’s reasonable discretion to perfect and to maintain the perfection and priority of the Collateral Agent’s security interest in the
      Collateral, (ii) to endorse and collect any cash proceeds of the Collateral, (iii) to file 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 Collateral Agent in its reasonable discretion deems necessary and appropriate to perfect and to maintain the perfection and priority of the Collateral Agent’s security interest in the Collateral,
      (iv) to apply the proceeds of any Collateral received by the Collateral Agent to the Secured Obligations as provided in Section 6.4, (v) to discharge past due taxes, assessments, charges, fees or Liens on the Collateral (except for such Liens that
      are permitted by the Loan Documents), (vi) to contact Account Debtors for any reason, (vii) to demand payment or enforce payment of the Receivables in the name of the Collateral Agent or such Grantor and to endorse any and all checks, drafts, and
      other instruments for the payment of money relating to the Receivables, (viii) 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, (ix) to exercise all of such Grantor’s rights and remedies with respect to the collection of the Receivables and any other Collateral, (x) to settle, adjust, compromise, extend or renew the Receivables, (xi) to settle, adjust or
      compromise any legal proceedings brought to collect Receivables, (xii) 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, (xiii) 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, (xiv) to change the address for delivery of mail addressed to such Grantor to such address as the Collateral Agent
      may designate and to receive, open and dispose of all mail addressed to such Grantor, and (xv) to do all other acts and things reasonably necessary to carry out this Security Agreement; provided that, this
      authorization shall not relieve such Grantor of any of its Secured Obligations under this Security Agreement or under the Credit Agreement.

    

    

    (b)          The powers conferred on the Collateral Agent, for the benefit of Secured Parties, under this Section 6.1 are solely to protect the Collateral Agent’s interests in the Collateral and
      shall not impose any duty upon the Collateral Agent or any Secured Party to exercise any such powers.  The Collateral Agent agrees that, except for the powers granted in Section 6.1(a)(i) and (iii), it shall not exercise any power or authority
      granted to it unless an Event of Default has occurred and is continuing.

    

    

    6.2.   Proxy.  EACH GRANTOR HEREBY IRREVOCABLY CONSTITUTES AND APPOINTS THE COLLATERAL AGENT AS ITS PROXY AND ATTORNEY‐IN‐FACT (AS SET FORTH IN SECTION 6.1 ABOVE) WITH RESPECT TO ITS PLEDGED
      COLLATERAL, INCLUDING THE RIGHT TO VOTE ANY OF THE PLEDGED COLLATERAL, WITH FULL POWER OF SUBSTITUTION TO DO SO.  IN ADDITION TO THE RIGHT TO VOTE ANY OF THE PLEDGED COLLATERAL, THE APPOINTMENT OF THE COLLATERAL AGENT AS PROXY AND ATTORNEY-IN-FACT
      SHALL INCLUDE THE RIGHT TO EXERCISE ALL OTHER RIGHTS, POWERS, PRIVILEGES AND REMEDIES TO WHICH A HOLDER OF ANY OF THE 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 OF THE PLEDGED COLLATERAL ON THE RECORD BOOKS OF THE ISSUER THEREOF) BY ANY PERSON
      (INCLUDING THE ISSUER OF THE PLEDGED COLLATERAL OR ANY OFFICER OR AGENT THEREOF), DURING THE CONTINUATION OF AN EVENT OF DEFAULT.

    

    

    
      
        

    

    6.3.        Nature of Appointment; Limitation of Duty.  THE APPOINTMENT OF THE COLLATERAL AGENT 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 8.13. NOTWITHSTANDING ANYTHING CONTAINED HEREIN, NEITHER THE COLLATERAL AGENT, NOR ANY SECURED PARTY, NOR ANY OF THEIR RESPECTIVE AFFILIATES, NOR 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.

    

    

    6.4.      Application of Proceeds.  Subject to the provisions of the Intercreditor Agreement, at such intervals as may be mutually agreed in writing upon by the Company and the Collateral
      Agent, or, if an Event of Default shall have occurred and be continuing, at any time at the Collateral Agent’s election, the Collateral Agent may, notwithstanding the provisions of Section 2.05 of the Credit Agreement, apply all or any part of the
      net proceeds of the Collateral realized through the exercise by the Collateral Agent of its remedies hereunder and any proceeds of the guarantee set forth in the Guarantee Agreement, in payment of the Secured Obligations in the following order:

    

    

    first, to payment of that portion of the Obligations constituting fees, expenses and other amounts payable to the Administrative Agent and the Collateral
      Agent in their capacities as such;

    

    

    second, to payment of that portion of the Obligations constituting fees and other amounts payable to the Lenders and the L/C Issuers (including fees and
      charges for attorneys who may be employees of any Lender or L/C Issuers) arising under the Loan Documents, ratably among them in proportion to the respective amounts described in this clause second payable to
      them;

    

    

    third, to payment of that portion of the Obligations constituting accrued and unpaid Letter of Credit Fees, interest on the Loans, L/C Borrowings and other
      Obligations arising under the Loan Documents, ratably among the Lenders and the L/C Issuers in proportion to the respective amounts described in this clause third payable to them;

    

    

    
      
        

    

    fourth, to the Administrative Agent for the account of the L/C Issuers, to Cash Collateralize that portion of L/C Obligations comprised of the aggregate
      undrawn amount of Letters of Credit to the extent not otherwise Cash Collateralized by the Borrower pursuant to Section 2.05(b) of the Credit Agreement and to payment of that portion of the Obligations constituting unpaid principal of the Loans, L/C
      Borrowings and Obligations then owing under Secured Hedge Agreements (other than Excluded Swap Obligations) and Secured Cash Management Agreements, ratably among the Lenders, the L/C Issuers, the Hedge Banks and the Cash Management Banks in
      proportion to the respective amounts described in this clause fourth payable by them; and

    

    

    last, the balance, if any, after payment in full of all Obligations to the Borrower or as otherwise required by law.

    

    

    ARTICLE VII

    [RESERVED]

    

    

    ARTICLE VIII

    GENERAL PROVISIONS

    

    

    8.1.        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 the Grantors, addressed as set forth in Section 10.02 of the Credit Agreement, 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 Collateral
      Agent or any Secured Parties arising out of the repossession, retention or sale of the Collateral.  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 Collateral Agent or any Secured Parties, 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.

    

    

    8.2.       Limitation on Collateral Agent’s and Secured Parties’ Duty with Respect to the Collateral.  The Collateral Agent shall have no obligation to clean-up or otherwise prepare the
      Collateral for sale.  The Collateral Agent and each Secured Party shall comply with the standard of care set forth herein with respect to the Collateral in its possession or under its control.  To the extent that applicable law imposes duties on the
      Collateral Agent to exercise remedies in a commercially reasonable manner, each Grantor acknowledges and agrees that it is commercially reasonable for the Collateral Agent (i) to fail to incur expenses deemed significant by the Collateral Agent 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 the Collateral, (vii) to hire one or more professional auctioneers to assist in the disposition of Collateral, whether or not the Collateral is of a
      specialized nature, (viii) to dispose of Collateral by utilizing internet sites that provide for the auction of assets of the types included in the Collateral or that have the reasonable 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 Collateral Agent against
      risks of loss, collection or disposition of Collateral or to provide to the Collateral Agent a guaranteed return from the collection or disposition of Collateral, or (xii) to the extent deemed appropriate by the Collateral Agent, to obtain the
      services of other brokers, investment bankers, consultants and other professionals to assist the Collateral Agent in the collection or disposition of any of the Collateral.  Each Grantor acknowledges that the purpose of this Section 8.2 is to provide
      non-exhaustive indications of what actions or omissions by the Collateral Agent would be commercially reasonable in the Collateral Agent’s exercise of remedies against the Collateral and that other actions or omissions by the Collateral Agent shall
      not be deemed commercially unreasonable solely on account of not being indicated in this Section 8.2.  Without limitation upon the foregoing, nothing contained in this Section 8.2 shall be construed to grant any rights to any Grantor or to impose any
      duties on the Collateral Agent that would not have been granted or imposed by this Security Agreement or by applicable law in the absence of this Section 8.2.

    

    

    
      
        

    

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

    

    

    8.4.        Performance of Debtor Obligations.  Without having any obligation to do so, the Collateral Agent 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 Collateral Agent for any amounts paid by the Collateral Agent pursuant to this Section 8.4.  The Grantors’ obligation to reimburse the Collateral Agent pursuant to the preceding sentence
      shall be a Secured Obligation payable on demand.

    

    

    
      
        

    

    8.5.        Specific Performance of Certain Covenants.  Each Grantor acknowledges and agrees that a breach of any of the covenants contained in Sections 4.3, 4.4, 4.5, 4.6, 4.7, 4.8, 5.3 or
      8.7 will cause irreparable injury to the Collateral Agent and the Secured Parties, that the Collateral Agent and Secured Parties have no adequate remedy at law in respect of such breaches and therefore agrees, without limiting the right of the
      Collateral Agent or the Secured Parties 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 8.5
      shall be specifically enforceable against the Grantors.

    

    

    8.6.       Dispositions Not Authorized.  No Grantor is authorized to sell or otherwise dispose of the Collateral to the extent prohibited herein, the Credit Agreement or in any other Security
      Document.

    

    

    8.7.        No Waiver; Amendments; Cumulative Remedies.  No delay or omission of the Collateral Agent or any Secured Party to exercise any right or remedy granted under this Security
      Agreement shall impair such right or remedy or be construed to be a waiver of any Default or an acquiescence therein, and any single or partial exercise of any such right or remedy shall not preclude any other or further exercise thereof or the
      exercise of any other right or remedy.  No waiver, amendment or other variation of the terms, conditions or provisions of this Security Agreement whatsoever shall be valid unless in writing signed by the Collateral Agent under Section 10.01 of the
      Credit Agreement and then only to the extent in such writing specifically set forth.  All rights and remedies contained in this Security Agreement or by law afforded shall be cumulative and all shall be available to the Collateral Agent and the
      Secured Parties until the Secured Obligations have been paid in full.

    

    

    8.8.       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 applicable 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 that is held to be inoperative, unenforceable, or invalid in any
      jurisdiction shall, as to that jurisdiction, be inoperative, unenforceable, or invalid without affecting the remaining provisions in that jurisdiction or the operation, enforceability, or validity of that provision in any other jurisdiction, and to
      this end the provisions of this Security Agreement are declared to be severable.

    

    

    8.9.       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, 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, all as though such payment or performance had not been made.  In the event that any payment, or any part thereof, 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.

    

    

    
      
        

    

    8.10.      Benefit of Agreement.  The terms and provisions of this Security Agreement shall be binding upon and inure to the benefit of the Grantors, the Collateral Agent and the 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 Collateral Agent.  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 Collateral Agent, for the benefit of the Collateral Agent and the Secured Parties, hereunder.

    

    

    8.11.      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.

    

    

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

    

    

    8.13.      Termination.  This Security Agreement shall continue in effect (notwithstanding the fact that from time to time there may be no obligations outstanding) until (i) the Credit
      Agreement has terminated pursuant to its express terms and (ii) all of the Secured Obligations (other than contingent indemnity obligations for which no claim has been made) have been indefeasibly paid and performed in full and no commitments of the
      Secured Parties which would give rise to any Secured Obligations are outstanding.

    

    

    8.14.      Entire Agreement.  This Security Agreement and the other Loan Documents embody the entire agreement and understanding between the Grantors and the Collateral Agent relating to the
      Collateral and supersede all prior agreements and understandings between the Grantors and the Collateral Agent relating to the Collateral.

    

    

    8.15.      CHOICE OF LAW.  THIS SECURITY AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF
        THE STATE OF NEW YORK.

    

    

    8.16.    CONSENT TO JURISDICTION.  EACH PARTY TO THIS SECURITY AGREEMENT HEREBY IRREVOCABLY SUBMITS TO THE
        NON‐EXCLUSIVE JURISDICTION OF ANY U.S. FEDERAL OR NEW YORK STATE COURT SITTING IN NEW YORK, NEW YORK IN ANY ACTION OR PROCEEDING ARISING OUT OF OR RELATING TO THIS SECURITY AGREEMENT OR ANY OTHER LOAN DOCUMENT AND EACH PARTY HERETO 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 WAIVES 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.

    

    

    
      
        

    

    8.17.      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, AGENT OR 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.

    

    

    8.18.      Counterparts.  This Security Agreement may be executed in any number of counterparts, including in electronic .pdf format, 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.  All notices, approvals, consents, requests and any communications hereunder must be in writing, provided that any communications sent to the Collateral Agent
      hereunder must be in the form of a document that is signed manually or by way of a digital signature provided by DocuSign (or such other digital signature provider as specified in writing to Collateral Agent by the authorized representative), in
      English.  Each Grantor and Secured Party agrees to assume all risks arising out of the use of using digital signatures and electronic methods to submit communications to Collateral Agent, including without limitation the risk of Collateral Agent
      acting on unauthorized instructions, and the risk of interception and misuse by third parties.

    

    

    ARTICLE IX

    THE COLLATERAL AGENT

    

    

    9.1.       Barclays Bank PLC is executing this Security Agreement, not in its individual capacity but solely in its capacity as Collateral Agent under that certain Credit Agreement dated as of
      February 11, 2021.  Barclays Bank PLC has been appointed Collateral Agent for the Secured Parties hereunder pursuant to Article IX of the Credit Agreement.  It is expressly understood and agreed by the parties to this Security Agreement that any
      authority conferred upon the Collateral Agent hereunder is subject to the terms of the delegation of authority made by the Secured Parties to the Collateral Agent pursuant to the Credit Agreement, and that the Collateral Agent has agreed to act (and
      any successor Collateral Agent shall act) as such hereunder only on the express conditions contained in Article IX of the Credit Agreement.  In acting hereunder, the Collateral Agent shall be entitled to all the rights, powers, protections,
      immunities, and indemnities under the Credit Agreement as if the same were set forth herein, mutatis mutandis and shall survive any termination of this Security Agreement.  The permissive rights, benefits and
      powers granted to the Collateral Agent hereunder shall not be construed as duties.  All discretionary acts hereunder (including the exercise of any remedies) shall be taken by the Collateral Agent pursuant to the terms of the Credit Agreement.  The
      Collateral Agent shall be entitled to exercise its rights, powers and duties hereunder through agents, experts or designees and shall not be responsible for the acts of any such parties appointed with due care.

    

    

    
      
        

    

    9.2.        The Collateral Agent shall not be responsible in any manner whatsoever for and makes no representation as to the validity or sufficiency of this Security Agreement or for or in respect of
      the recitals contained herein, all of which recitals are made solely by the applicable Grantor.

    

    

    9.3.       The powers conferred on the Collateral Agent hereunder are solely to protect its security interest in the Collateral.  Notwithstanding any provision contained in this Security Agreement,
      the Collateral Agent shall have no duty to exercise any of the rights, privileges or powers afforded to it hereunder and shall not be responsible to any Grantor or any other Person for any failure to do so or delay in doing so.  Except for the
      exercise of reasonable care in the custody of any Collateral in its possession and the accounting for moneys actually received by it hereunder, the Collateral Agent shall have no duty or liability as to any Collateral or as to the taking of any
      necessary steps to exercise or preserve any rights against prior parties or any other rights, privileges or powers pertaining to any Collateral.  The Collateral Agent shall be deemed to have exercised reasonable care in the custody and preservation
      of Collateral in its possession if such Collateral is accorded treatment substantially equal to that which the Collateral Agent accords its own property.  Neither the Collateral Agent nor any of its directors, officers, employees or agents shall be
      liable for failure to demand, collect or realize upon all or any part of the Collateral or for any delay in doing so or shall be under any obligation to sell or otherwise dispose of any Collateral upon the request of any Grantor or otherwise. If any
      Grantor fails to perform any agreement contained herein, the Collateral Agent may itself perform, or cause performance of, such agreement, and the expenses of the Collateral Agent incurred in connection therewith shall be payable by each Grantor
      under Section 10.04 of the Credit Agreement.

    

    

    9.4.       The Collateral Agent shall not be responsible for or make any representation as to the existence, genuineness, value or protection of any Collateral, for the legality, effectiveness or
      sufficiency of any Security Document, or for the creation, perfection, priority, sufficiency or protection of any Liens.  The Collateral Agent shall not be responsible for filing any financing or continuation statements or recording any documents or
      instruments in any public office at any time or times or otherwise perfecting, monitoring or maintaining the perfection of any Lien or security interest in the Collateral, for insuring the Collateral or for the payment of taxes, charges, assessments
      or Liens upon the Collateral or otherwise maintaining the Collateral.  It is expressly agreed, to the maximum extent permitted by applicable law, that the Collateral Agent shall have no responsibility for taking any action to protect against any
      diminution in value of the Collateral, but, in each case (A) subject to the requirement that the Collateral Agent may not act or omit to take any action if such act or omission would constitute gross negligence or willful misconduct and (B) the
      Collateral Agent may do so and all expenses reasonably incurred in connection therewith shall be part of the Secured Obligations.

    

    

    
      
        

    

    9.5.        Nothing in this Security Agreement constitutes the Collateral Agent as an agent, trustee or fiduciary of the Company or any Grantor or as trustee or fiduciary for the Secured Party under
      the Credit Agreement.  The relationship between the Collateral Agent and the Secured Parties is that of principal and agent only. The Collateral Agent is not responsible or liable for the adequacy, accuracy or completeness of any information (whether
      oral or written) supplied by the Company, any Grantor or any other Person in or in connection with the Credit Agreement, this Security Agreement or any other Loan Document or the transactions contemplated herein or therein or any other agreement,
      arrangement or document entered into, made or executed in anticipation of, under or in connection with the Credit Agreement, this Security Agreement or any other Loan Document.

    

    

    9.6.         The protections afforded to the Collateral Agent pursuant to this Article IX shall be in addition to, and not in limitation of, any related provisions set forth in the Credit Agreement.

    

    

     [Signature Pages Follow]

    

    

    
      
        

    

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

    

    

    	 	
            GRANTORS:

          
	 	 	 	 
	 	
            TURNING POINT BRANDS, INC.

          
	 	 	 	 
	 	
            By:

          	
            /s/ Brittani Cushman

          	 
	 	 	 	 
	 	 	
            Name: Brittani Cushman

          
	 	 	
            Title: Senior Vice President, General Counsel 

              and Secretary

          
	 	 	 	 
	 	
            NORTH ATLANTIC TRADING COMPANY, INC

          
	 	 	 	 
	 	
            By:

          	
            /s/ Brittani Cushman

          	 
	 	 	 	 
	 	 	
            Name: Brittani Cushman

          
	 	 	
            Title: Senior Vice President, General Counsel  

            and Secretary

          
	 	 	 	 
	 	
            NORTH ATLANTIC OPERATING COMPANY, INC

          
	 	 	 	 
	 	
            By:

          	
             /s/ Brittani Cushman

          	 
	 	 	 	 
	 	 	
            Name: Brittani Cushman

          
	 	 	
            Title: Senior Vice President, General Counsel 

            and Secretary

          
	 	 	 	 
	 	
            NORTH ATLANTIC CIGARETTE COMPANY, INC

          
	 	 	 	 
	 	
            By:

          	
            /s/ Brittani Cushman

          	 
	 	 	 	 
	 	 	
            Name: Brittani Cushman

          
	 	 	
            Title: Senior Vice President, General Counsel 

            and Secretary

          
	 	 	 	 
	 	
            TURNING POINT BRANDS, LLC

          
	 	 	 	 
	 	
            By:

          	
             /s/ Brittani Cushman

          	 
	 	 	 	 
	 	 	
            Name: Brittani Cushman

          
	 	 	
            Title: Senior Vice President, General Counsel 

            and Secretary

          

     

    

    
       [Signature Page to Security Agreement]

       

      

    

    
      
        

    

    	 	
            NATIONAL TOBACCO FINANCE, LLC

          
	 	 	 	 
	 	
            By:

          	
             /s/ Brittani Cushman

          	 
	 	 	 	 
	 	 	
            Name: Brittani Cushman

          
	 	 	 	 
	 	 	
            Title: Senior Vice President, General Counsel  

            and Secretary

          
	 	 	 	 
	 	
            INTREPID BRANDS, LLC

          
	 	 	 	 
	 	
            By:

          	
            /s/ Brittani Cushman

          	 
	 	 	 	 
	 	 	
            Name: Brittani Cushman

          
	 	 	
            Title: Senior Vice President, General Counsel 

            and Secretary

          
	 	 	 	 
	 	
            TPB BEAST LLC

          
	 	 	 	 
	 	
            By:

          	
            /s/ Brittani Cushman

          	 
	 	 	 	 
	 	 	
            Name: Brittani Cushman

          
	 	 	
            Title: Senior Vice President, General Counsel 

              and Secretary

          
	 	 	 	 
	 	
            TPB INTERNATIONAL, LLC

          
	 	 	 	 
	 	
            By:

          	
             /s/ Brittani Cushman

          	 
	 	 	 	 
	 	 	
            Name: Brittani Cushman

          
	 	 	
            Title: Senior Vice President, General Counsel 

            and Secretary

          
	 	 	 	 
	 	
            TPB SHARK, LLC

          
	 	 	 	 
	 	
            By:

          	
            /s/ Brittani Cushman

          	 
	 	 	 	 
	 	 	
            Name: Brittani Cushman

          
	 	 	
            Title: Senior Vice President, General Counsel  

            and Secretary

          
	 	 	 	 
	 	
            NU-X VENTURES, LLC

          
	 	 	 	 
	 	
            By:

          	
            /s/ Brittani Cushman

          	 
	 	 	 	 
	 	 	
            Name: Brittani Cushman

          
	 	 	
            Title: Senior Vice President, General Counsel  

              and Secretary

          

    
       

      

       [Signature Page to Security Agreement]

       

      

    

    
      
        

    

    	 	
            NU-TECH HOLDINGS LLC

          
	 	 	 	 
	 	
            By:

          	
             /s/ Brittani Cushman

          	 
	 	 	 	 
	 	 	
            Name: Brittani Cushman

          
	 	 	
            Title: Senior Vice President, General Counsel 

             and Secretary

          
	 	 	 	 
	 	
            SOUTH BEACH HOLDINGS LLC

          
	 	 	 	 
	 	
            By:

          	
             /s/ Brittani Cushman

          	 
	 	 	 	 
	 	 	
            Name: Brittani Cushman

          
	 	 	
            Title: Senior Vice President, General Counsel 

            and Secretary

          
	 	 	 	 
	 	
            NU-X DISTRIBUTION LLC

          
	 	 	 	 
	 	
            By:

          	
             /s/ Brittani Cushman

          	 
	 	 	 	 
	 	 	
            Name: Brittani Cushman

          
	 	 	
            Title: Senior Vice President, General Counsel 

              and Secretary

            

          
	 	 	 	 
	 	
            NORTH ATLANTIC WRAP COMPANY LLC

          
	 	 	 	 
	 	
            By:

          	
            /s/ Brittani Cushman

          	 
	 	 	 	 
	 	 	
            Name: Brittani Cushman

          
	 	 	
            Title: Senior Vice President, General Counsel 

              and Secretary

            

          
	 	 	 	 
	 	
            TPB SERVICES LLC

          
	 	 	 	 
	 	
            By:

          	
            /s/ Brittani Cushman

          	 
	 	 	 	 
	 	 	
            Name: Brittani Cushman

          	 
	 	 	
            Title: Senior Vice President, General Counsel 

              and Secretary

            

          
	 	 	 	 
	 	
            NATIONAL TOBACCO COMPANY, LP

          
	 	 	 	 
	 	
            By:

          	
             /s/ Brittani Cushman

          	 
	 	 	 	 
	 	 	
            Name: Brittani Cushman

          
	 	 	
            Title: Senior Vice President, General Counsel 

              and Secretary

            

          

    

    

    
      
        

    

    	 	
            RBJ SALES, INC.

          
	 	 	 	 
	 	
            By:

          	
            /s/ Brittani Cushman

          	 
	 	 	 	 
	 	 	
            Name: Brittani Cushman

          
	 	 	
            Title: Senior Vice President, General Counsel 

              and Secretary

            

          

    
       

      

       [Signature Page to Security Agreement]

        

      

    

    
      
        

    

    	 	
            Collateral Agent:

          
	 	 	 
	 	
            BARCLAYS BANK PLC, as Collateral Agent

          
	 	 	 
	 	
            By:

          	
            /s/ Christopher M. Aitkin

          
	 	Name:	
            Christopher M. Aitkin

          
	 	Title: 

          	
            Vice President

          

    
      

         [Signature Page to Security Agreement]

       

      

    

    
      
        

    

    EXHIBIT A

    

    

    Type and Jurisdiction of Organization, and Principal Location

    

    

    
      
        

    

    EXHIBIT B

    

    

    Deposit Accounts and Securities Accounts

    

    

    
      
        

    

    EXHIBIT C

    

    

    Commercial Tort Claims

    

    

    
      
        

    

    EXHIBIT D

    

    

    Intellectual Property, Filing Requirements

    

    

    
      
        

    

    EXHIBIT E

    

    

    Pledged Collateral

    

    

    
      
        

    

    EXHIBIT F

    

    

    Title, Perfection, Priority

    

    

    
      
        

    

    EXHIBIT G

    

    

    Amendment

    

    

    This Amendment, dated ________________, ___ is delivered pursuant to Section [4.2] [4.6] of the Security Agreement referred to below.  All defined terms herein shall have the meanings ascribed thereto or incorporated
      by reference in the Security Agreement.

    

    

    RECITALS

    

    

    Section 1.            [Additional Collateral].  The undersigned hereby certifies that the representations and warranties in Article III of the Security Agreement are and continue to be true and correct.  The
      undersigned further agrees that this Amendment may be attached to that certain Pledge and Security Agreement, dated ____________ __, 20[●], between the undersigned, as the Grantors, and Barclays Bank PLC, as the Collateral Agent (as amended or
      modified from time to time prior to the date hereof, the “Security Agreement”) and that the Collateral listed on Schedule I to this Amendment shall be and become a part of the Collateral referred to in said Security Agreement and shall
      secure all Secured Obligations referred to in the Security Agreement.

    

    

    Section 2.            CHOICE OF LAW.  THIS AMENDMENT SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK.

    

    

    Section 3.           CONSENT TO JURISDICTION.  EACH PARTY TO THIS AMENDMENT HEREBY IRREVOCABLY SUBMITS TO THE NON EXCLUSIVE JURISDICTION OF ANY U.S. FEDERAL OR NEW YORK STATE COURT SITTING IN NEW YORK, NEW YORK
      IN ANY ACTION OR PROCEEDING ARISING OUT OF OR RELATING TO THIS AMENDMENT OR THE SECURITY AGREEMENT OR ANY OTHER [SECURITY DOCUMENT] AND EACH PARTY HERETO 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 WAIVES 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.

    

    

    Section 4.            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 AMENDMENT, THE SECURITY AGREEMENT, ANY OTHER [SECURITY DOCUMENT] OR THE TRANSACTIONS CONTEMPLATED HEREBY OR THEREBY (WHETHER BASED ON CONTRACT, TORT OR ANY OTHER THEORY).  EACH PARTY HERETO (A) CERTIFIES
      THAT NO REPRESENTATIVE, AGENT OR ATTORNEY OF ANY OTHER 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 AMENDMENT AND THE SECURITY AGREEMENT BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS SECTION.

    

    

    
      
        

    

    Section 5.          Counterparts.  This Amendment may be executed in any number of counterparts, including in electronic .pdf format, all of which taken together with the Security Agreement, shall constitute one
      agreement, and any of the parties hereto may execute this Amendment by signing any such counterpart.  Delivery of an executed counterpart of a signature page of this Amendment by facsimile or other electronic transmission shall be effective as
      delivery of a manually executed counterpart of this Amendment.  All notices, approvals, consents, requests and any communications hereunder must be in writing, provided that any communications sent to the Collateral Agent hereunder must be in the
      form of a document that is signed manually or by way of a digital signature provided by DocuSign (or such other digital signature provider as specified in writing to Collateral Agent by the authorized representative), in English.  Each Grantor hereto
      agrees to assume all risks arising out of the use of using digital signatures and electronic methods to submit communications to Collateral Agent, including without limitation the risk of Collateral Agent acting on unauthorized instructions, and the
      risk of interception and misuse by third parties.

    

    

    	 	
            By:

          	 	 
	 	
            Name:

          	 	 
	 	
            Title:

          	 	 

    

    

    
      
        

    

    SCHEDULE  I TO AMENDMENT

    

    

    COMMERCIAL TORT CLAIMS

     

    

    	
            Name of Grantor

          	
            Description of Claim

          	
            Parties

          	
            Case Number; Name 

            of Court where Case 

            was FiledExhibit 10.4

    

     

    

    Execution Version

    

    

    GUARANTY AGREEMENT

     

    

    made among

     

    

    TURNING POINT BRANDS, INC.

     

    

    and certain of its Subsidiaries

     

    

    and

     

    

    BARCLAYS BANK PLC,

    as Administrative Agent and Collateral Agent

     

    

    Dated as of February 11, 2021

    
      

      

    

    
      
        

    

    
    TABLE OF CONTENTS

     

    

    	 	 	 	
            Page

          
	 	 
	
            SECTION 1 DEFINED TERMS

          	
            2

          
	 	 
	 	
            1.1

          	
            Definitions

          	
            2

          
	 	
            1.2

          	
            Other Definitional Provisions

          	
            3

          
	 	 
	
            SECTION 2 GUARANTEE

          	
            3

          
	 	 
	 	
            2.1

          	
            Guarantee of Guaranteed Obligations

          	
            3

          
	 	
            2.2

          	
            Limitation on Obligations Guaranteed

          	
            4

            

          
	 	
            2.3

          	
            Nature of Guarantee; Continuing Guarantee; Waivers of Defenses Etc.

          	
            4

          
	 	
            2.4

          	
            Rights of Reimbursement, Contribution and Subrogation

          	
            6

          
	 	
            2.5

          	
            Payments

          	
            7

          
	 	
            2.6

          	
            Subordination of Other Obligations

          	
            7

          
	 	
            2.7

          	
            Financial Condition of Borrower and other Guarantors

          	
            8

            

          
	 	
            2.8

          	
            Bankruptcy, Etc.

          	
            8

          
	 	
            2.9

          	
            Duration of Guarantee, Discharge of Guarantee Upon Sale of Guarantor

          	
            8

          
	 	
            2.10

          	
            Reinstatement

          	
            9

            

          
	 	
            2.11

          	
            Keepwell

          	
            9

          
	 	 	 	 
	
            SECTION 3 REPRESENTATIONS, WARRANTIES AND COVENANTS OF THE GUARANTORS.

          	
            9

          
	 	 
	 	
            3.1

          	
            Representations and Warranties

          	
            9

          
	 	
            3.2

          	
            Covenants

          	
            9

          
	 	 	 	 
	
            SECTION 4 POWER OF ATTORNEY AND FURTHER ASSURANCES

          	
            10

          
	 	 
	 	
            4.1

          	
            Agent’s Appointment as Attorney-in-Fact, Etc.

          	
            10

          
	 	
            4.2

          	
            Further Assurances

          	
            10

          
	 	 	 	 
	
            SECTION 5 APPLICATION OF PROCEEDS

          	
            10

          
	 	 
	
            SECTION 6 THE AGENT

          	
            10

          
	 	 
	 	
            6.1

          	
            Authority of Agent

          	
            10

          
	 	
            6.2

          	
            Exculpation of the Agent

          	
            11

          
	 	
            6.3

          	
            Delegation of Duties.

          	
            11

          
	 	
            6.4

          	
            Hedge Banks or Cash Management Banks

          	
            12

          
	 	 	 	 
	
            SECTION 7 MISCELLANEOUS

          	
            12

          
	 	 
	 	
            7.1

          	
            Incorporation by Reference

          	
            12

          
	 	
            7.2

          	
            Additional Guarantors

          	
            12

          
	 	
            7.3

          	
            WAIVER OF JURY TRIAL

          	
            12

          

    

    

    	
            Annex I

          	
            –

          	
            Joinder Agreement

          

    

    

    
      1

      
        

    

    
    GUARANTY AGREEMENT

     

    

    GUARANTY AGREEMENT dated as of February 11, 2021, among each of the signatories hereto designated as a Guarantor on the signature pages hereto (together with any other entity that may become a party
      hereto as a Guarantor as provided herein, (each a “Guarantor” and collectively, the “Guarantors”)) and Barclays Bank PLC, as Administrative Agent and Collateral Agent (in such capacity and together with its successors and assigns in
      such capacity, the “Agent”) for (i) the banks and other financial institutions or entities (the “Lenders”) from time to time parties to the Credit Agreement, dated as of February 11, 2021 (as amended, restated, supplemented or otherwise
      modified or replaced from time to time, the “Credit Agreement”), among Turning Point Brands, Inc., a Delaware corporation (the “Borrower”), the several banks and other financial institutions or entities from time to time parties thereto
      (the “Lenders”), Barclays Bank PLC, as the Agent, and (ii) the other Guaranteed Parties (as defined herein).

     

    

    W I T N E S S E T H:

     

    

    WHEREAS, pursuant to the Credit Agreement, the Lenders and L/C Issuer have severally agreed to make Credit Extensions to the Borrower upon the terms and subject to the conditions set forth therein;

     

    

    WHEREAS, the Borrower is a member of an affiliated group of companies that includes each other Guarantor;

     

    

    WHEREAS, the proceeds of the Credit Extensions under the Credit Agreement will be used in part to enable the Borrower to make valuable transfers to one or more of the other Guarantors in connection
      with the operation of their respective businesses;

     

    

    WHEREAS, the Borrower and the other Guarantors are engaged in related businesses, and each Guarantor will derive substantial direct and indirect benefit from the making of the Credit Extensions under
      the Credit Agreement; and

     

    

    WHEREAS, it is a condition precedent to the obligation of the Lenders and L/C Issuer to make their Credit Extensions to the Borrower under the Credit Agreement that the Guarantors shall have executed
      and delivered this Guaranty (as defined herein) to the Agent for the benefit of the Guaranteed Parties.

     

    

    NOW, THEREFORE, in consideration of the premises and to induce the Agent and the Lenders to enter into the Credit Agreement and to induce the Lenders and L/C Issuer to make their respective Credit
      Extensions to the Borrower thereunder and to induce the Hedge Banks and Cash Management Banks to enter into Secured Hedge Agreements and Secured Cash Management Agreements and for other good and valuable consideration, the receipt and sufficiency of
      which is hereby acknowledged, each Guarantor hereby agrees with the Agent, for the benefit of the Guaranteed Parties, as follows:

     

    

    
      1

      
        

    

    SECTION 1 DEFINED TERMS

     

    

    1.1         Definitions.  (a)  Unless otherwise defined herein, all terms defined in the Credit Agreement and used herein shall have the meanings given to them in the Credit Agreement.

     

    

    (a)          The following terms shall have the following meanings:

     

      

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

     

    

    “Credit Agreement Obligations” shall mean (i) all principal of and interest (including, without limitation, interest accruing after the filing of any petition in bankruptcy, or the
      commencement of any insolvency, reorganization or like proceeding, relating to the Borrower or any other Guarantor, whether or not a claim for post-filing or post-petition interest is allowed in such proceeding) and premium (if any) on all loans made
      pursuant to the Credit Agreement, (ii) all reimbursement obligations (if any) and interest thereon (including, without limitation, interest accruing after the filing of any petition in bankruptcy, or the commencement of any insolvency, reorganization
      or like proceeding, relating to the Borrower or any other Guarantor, whether or not a claim for post-filing or post-petition interest is allowed in such proceeding) with respect to any letter of credit or similar instruments issued pursuant to the
      Credit Agreement and (iii) all guarantee obligations, fees, expenses and all other Guaranteed Obligations under the Credit Agreement and the other Loan Documents (other than any Guaranteed Obligations owing to any Hedge Bank or Cash Management Bank
      in its capacity as such with respect any Secured Hedge Agreement or Secured Cash Management Agreement).

     

    

    “Discharge of the Guaranteed Obligations” shall mean and shall have occurred when (i) all Guaranteed Obligations shall have been paid in full in cash and all other obligations under the Loan
      Documents shall have been performed (other than (a) those expressly stated to survive termination and (b) contingent obligations as to which no claim has been asserted, and (c) obligations and liabilities under Secured Cash Management Agreements and
      Hedge Agreements as to which arrangements satisfactory to the applicable Hedge Banks or Cash Management Banks shall have been made) and (ii) no Letters of Credit shall be outstanding (other than Letters of Credit which have been Cash Collateralized
      or as to which other arrangements satisfactory to the L/C Issuer shall have been made) and (iii) all Commitments shall have terminated or expired.

     

    

     “Guaranty” shall mean this Guaranty as the same may be amended, restated, supplemented or otherwise modified from time to time.

     

    

    “Guaranteed Obligations” shall mean the “Obligations” as defined in the Credit Agreement.

      

    

    “Guaranteed Parties”  shall mean “Secured Parties” as defined in the Credit Agreement.

     

    

    “Obligee Guarantor” shall have the meaning set forth in Section 2.6.

     

    

    
      2

      
        

    

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

     

    

    “Swap Obligation” means, with respect to any Guarantor, any obligation to pay or perform under any agreement, contract or transaction that constitutes a Swap.

     

    

    “Voidable Transfer”  shall have the meaning set forth in Section 2.10.

     

    

    1.2         Other Definitional Provisions.  (a)  The words “hereof”, “herein”, “hereto” and “hereunder” and words of similar import when used in this Guaranty shall refer to this Guaranty as
      a whole and not to any particular provision of this Guaranty, and Section, Schedule, Exhibit and Annex references, are to this Guaranty unless otherwise specified.  References to any Schedule, Exhibit or Annex shall mean such Schedule, Exhibit or
      Annex as amended or supplemented from time to time in accordance with this Guaranty.

     

    

    (a)          The meanings given to terms defined herein shall be equally applicable to both the singular and plural forms
        of such terms.

     

      

    (b)         The expressions “payment in full,” “paid in full” and any other similar terms or phrases when used herein
        shall mean payment in cash in immediately available funds.

        

      

    (c)        The use herein of the word “include” or “including”, when following any general statement, term or matter,
        shall not be construed to limit such statement, term or matter to the specific items or matters set forth immediately following such word or to similar items or matters, whether or not non-limiting language (such as “without limitation” or “but not
        limited to” or words of similar import) is used with reference thereto, but rather shall be deemed to refer to all other items or matters that fall within the broadest possible scope of such general statement, term or matter.

     

      

    SECTION 2 GUARANTEE

     

    

    2.1         Guarantee of Guaranteed Obligations.  Each of the Guarantors hereby, jointly and severally, absolutely, unconditionally and irrevocably, guarantees, as primary obligor and not
      merely as surety, to the Agent, for the benefit of the Guaranteed Parties, the prompt and complete payment and performance by the Borrower and each other Guarantor, when due (whether at the stated maturity, by acceleration or otherwise) of the
      Guaranteed Obligations.  Each Guarantor shall be liable under its guarantee set forth in this Section 2.1, without any limitation as to amount, for all present and future Guaranteed Obligations, including specifically all future increases,
      whether or not any such increase is committed, contemplated or provided for by the Loan Documents on the date hereof.  Without limiting the generality of the foregoing, each Guarantor’s liability shall extend to all Guaranteed Obligations that would
      be owed by any other obligor on the Guaranteed Obligations but for the fact that they are unenforceable or not allowable due to the existence of an insolvency or liquidation proceeding involving such other obligor.

     

    

    
      3

      
        

    

    2.2        Limitation on Obligations Guaranteed.  (a)  Notwithstanding any other provision hereof, the right of recovery against each Guarantor under Section 2 hereof shall be limited
      to the maximum amount that can be guaranteed by such Guarantor without rendering such Guarantor’s obligations under Section 2 hereof void or voidable under applicable law, including, without limitation, the Uniform Fraudulent Conveyance Act,
      Uniform Fraudulent Transfer Act or any similar foreign, federal or state law, in each case after giving full effect to the liability under such guarantee set forth in Section 2 hereof and its related contribution rights but before taking into
      account any liabilities under any other guarantee by such Guarantor.  For purposes of the foregoing, all guarantees of such Guarantor other than the guarantee under Section 2 hereof will be deemed to be enforceable and payable after the
      guaranty under Section 2 hereof.  To the fullest extent permitted by applicable law, this Section 2.2(a) shall be for the benefit solely of creditors and representatives of creditors of each Guarantor and not for the benefit of such
      Guarantor or the holders of any Equity Interest in such Guarantor.

     

    

    (a)          Each Guarantor agrees that Obligations may at any time and from time to time be incurred or permitted in an
        amount exceeding the maximum liability of such Guarantor under Section 2.2(a) without impairing the guarantee contained in this Section 2 or affecting the rights and remedies of any Guaranteed Party hereunder.

    2.3          Nature of Guarantee; Continuing Guarantee; Waivers of Defenses Etc.  (a)  The guarantee contained in this Section 2 is a continuing guarantee of payment and performance and not
      merely of collectability.  Each Guarantor waives diligence, presentment, protest, marshaling, demand for payment, notice of dishonor, notice of default and notice of nonpayment to or upon the Borrower or any of the other Guarantors with respect to
      the Guaranteed Obligations.  Without limiting the generality of the foregoing, this Guaranty and the obligations of each Guarantor hereunder shall be valid and enforceable and shall not be subject to any reduction, limitation, impairment, set-off,
      defense, counterclaim, discharge or termination for any reason (other than a Discharge of the Guaranteed Obligations).

     

    

    (a)        Each Guarantor agrees that the Guaranteed Obligations of each Guarantor hereunder are independent of the
        Guaranteed Obligations of each other Guarantor, and when making any demand hereunder or otherwise pursuing its rights and remedies hereunder against any Guarantor, any Guaranteed Party may, but shall be under no obligation to, make a similar demand
        on or otherwise pursue such rights and remedies as it may have against the Borrower and any other Guarantor or against any Collateral or other guarantee for the Guaranteed Obligations or any right of offset with respect thereto, and any failure by
        any Guaranteed Party to make any such demand, to pursue such other rights or remedies shall not relieve any Guarantor of any obligation or liability hereunder, and shall not impair or affect the rights and remedies, whether express, implied or
        available as a matter of law, of any Guaranteed Party against any Guarantor.

     

      

    (b)          No payment made by the Borrower, any of the other Guarantors or any other Person or received or collected by
        any Guaranteed Party by virtue of any action or proceeding or any set-off or appropriation or application at any time or from time to time in reduction of or in payment of the Guaranteed Obligations shall be deemed to modify, reduce, release or
        otherwise affect the liability of any Guarantor hereunder which shall, notwithstanding any such payment remain liable for the full amount of Guaranteed Obligations which remain outstanding from time to time until the Discharge of the Guaranteed
        Obligations.

     

      

    
      4

      
        

    

    (c)         Without limiting the generality of the foregoing, each Guarantor agrees that its Guaranteed Obligations, and
        any security interest in respect thereof, shall not be affected by, and shall remain in full force and effect without regard to, and hereby waives all, rights, claims or defenses that it might otherwise have (now or in the future) with respect to
        each of the following (whether or not such Guarantor has knowledge thereof):

     

      

    (i)          the validity or enforceability of the Credit Agreement, any other Loan Document or any
        Secured Hedge Agreement or Secured Cash Management Agreement, any of the Guaranteed Obligations or any guarantee or right of offset with respect thereto at any time or from time to time held by any Guaranteed Party;

     

      

    (ii)          any renewal, extension or acceleration of, or any increase in the amount of the
        Guaranteed Obligations, or any amendment, supplement, modification or waiver of, or any consent to departure from, the Loan Documents or any Secured Hedge Agreement or Secured Cash Management Agreement;

     

      

    (iii)         any failure, omission or delay in enforcement (by agreement or otherwise), or the stay
        or enjoining (by court order, operation of law or otherwise) of the exercise of enforcement, of any claim or demand or any right, power or remedy (whether arising under any Loan Documents, any Secured Hedge Agreement or any Secured Cash Management
        Agreement, at law, in equity or otherwise) with respect to the Guaranteed Obligations or any guaranty, agreement, Collateral or other security relating thereto;

     

      

    (iv)        any change, reorganization or termination of the corporate structure or existence of
        Borrower or any other Guarantor or any of their Subsidiaries and any corresponding restructuring of the Guaranteed Obligations;

     

      

    (v)          any settlement, compromise, release, subordination or discharge of, or acceptance or
        refusal of any offer of payment or performance with respect to, or any substitutions for, the Guaranteed Obligations;

     

      

    (vi)          the validity, perfection, non-perfection or lapse in perfection, priority or avoidance of
        any security interest or lien, the release of any or all collateral securing, or purporting to secure, the Guaranteed Obligations or any other impairment of such collateral;

     

      

    (vii)          any exercise of remedies with respect to the Collateral or any other security for the
        Guaranteed Obligations at such time and in such order and in such manner as the Agent and the Guaranteed Parties may decide, whether or not such action constitutes an election of remedies and even if such action operates to impair or extinguish any
        right of reimbursement or subrogation or other right or remedy that any Guarantor would otherwise have and, without limiting the generality of the foregoing or any other provisions hereof, each Guarantor
        hereby expressly waives any and all benefits which might otherwise be available to such Guarantor under applicable law; and

     

      

    
      5

      
        

    

    (viii)        any other circumstance whatsoever which may or might in any manner or to any extent vary
        the risk of any Guarantor as an obligor in respect of the Guaranteed Obligations or which constitutes, or might be construed to constitute, an equitable or legal discharge of the Borrower or any other Guarantor for the Guaranteed Obligations, or of
        such Guarantor under the guarantee contained in this Section 2 or of any security interest granted by any Guarantor, whether in an insolvency or liquidation proceeding or in any other instance.

     

      

    (d)         In addition each Guarantor further waives any and all other defenses, set- offs or counterclaims (other than
        a defense of payment or performance in full hereunder) which may at any time be available to or be asserted by it, the Borrower or any other Guarantor or Person against any Guaranteed Party, including, without limitation, failure of consideration,
        breach of warranty, statute of frauds, statute of limitations, accord and satisfaction and usury.

     

      

    2.4          Rights of Reimbursement, Contribution and Subrogation.

     

    

    If any payment is made on account of the Guaranteed Obligations by any Guarantor or is received or collected on account of the Guaranteed Obligations from any Guarantor or its property:

     

    

    (a)         If such payment is made by a Guarantor or from its property in respect of the Guaranteed Obligations of the
        Borrower or any other Guarantor, such Guarantor shall, subject to the terms of this Section 2.4, be entitled to contribution in respect of such payment and, subject to and upon (but not before) a Discharge of the Guaranteed Obligations, shall be
        entitled (A) to demand and enforce reimbursement for the full amount of such payment from such other Guarantor, and (B) to demand and enforce contribution in respect of such payment from each other Guarantor which has not paid its fair share of
        such payment, as necessary to ensure that (after giving effect to any enforcement of reimbursement rights provided hereby) each Guarantor pays its fair share of such payment.  For this purpose, the fair share of each Guarantor shall be determined
        based on an equitable apportionment among all Guarantors (other than the Guarantor whose primary obligations were so guaranteed by the other Guarantors) based on the relative value of their assets and any other equitable considerations deemed
        appropriate by the court.  For purposes of the foregoing, all guarantees of such Guarantor other than the guarantee under Section 2 hereof will be deemed to be enforceable and payable after the guaranty under Section 2 hereof.

     

      

    (b)       If and whenever any right of reimbursement or contribution becomes enforceable by any Guarantor against the
        Borrower or any other Guarantor whether under Section 2.4(a) or otherwise, such Guarantor shall be entitled, subject to and upon (but not before) a Discharge of the Guaranteed Obligations, to be subrogated to any security interest that may then be
        held by the Agent upon any collateral securing or purporting to secure any of the Guaranteed Obligations.  Any right of subrogation of any Guarantor shall be enforceable solely after a Discharge of the Guaranteed Obligations and solely against the
        Guarantors, and not against the Guaranteed Parties, and neither the Agent nor any other Guaranteed Party shall have any duty whatsoever to warrant, ensure or protect any such right of subrogation or to obtain, perfect, maintain, hold, enforce or
        retain any collateral securing or purporting to secure any of the Guaranteed Obligations for any purpose related to any such right of subrogation.

     

      

    
      6

      
        

    

    (c)        All rights and claims arising under this Section 2.4 or based upon or relating to any other right of
        reimbursement, indemnification, contribution or subrogation that may at any time arise or exist in favor of any Guarantor as to any payment on account of either (x) the Guaranteed Obligations or (y) any other obligation that is secured by any
        collateral that also secures or purports to secure any of the Guaranteed Obligations, in each case made by it or received or collected from its property shall be fully subordinated to the Guaranteed Obligations in all respects prior to the
        Discharge of the Guaranteed Obligations.  Until Discharge of the Guaranteed Obligations, no Guarantor may demand or receive any collateral security, payment or distribution whatsoever (whether in cash, property or securities or otherwise) on
        account of any such right or claim.  If any such payment or distribution is made or becomes available to any Guarantor in any bankruptcy case, receivership, or insolvency or liquidation proceeding, such payment or distribution shall be delivered by
        the person making such payment or distribution directly to the Agent, for application to the payment of the Guaranteed Obligations.  If any such payment or distribution is received by any Guarantor, it shall be held by such Guarantor in trust, as
        trustee of an express trust for the benefit of the Guaranteed Parties, and shall forthwith be transferred and delivered by such Guarantor to the Agent, in the exact form received and, if necessary, duly endorsed.

     

      

    (d)         The obligations of the Guarantors under this Guaranty and the other Loan Documents, including their liability
        for the Guaranteed Obligations and the enforceability of the security interests granted thereby, are not contingent upon the validity, legality, enforceability, collectability or sufficiency of any right of reimbursement, contribution or
        subrogation arising under this Section 2.4 or otherwise.  The invalidity, insufficiency, unenforceability or uncollectability of any such right shall not in any respect diminish, affect or impair any such obligation or any other claim, interest,
        right or remedy at any time held by any Guaranteed Party against any Guarantor or its property.  The Guaranteed Parties make no representations or warranties in respect of any such right and shall have no duty to assure, protect, enforce or ensure
        any such right or otherwise relating to any such right.

     

      

    2.5       Payments.  Each Guarantor hereby guarantees that payments hereunder will be paid to the Agent without set-off, defense or counterclaim in Dollars in immediately available funds at
      the office of the Agent located at the Administrative Agent’s Office specified in the Credit Agreement.

     

    

    2.6        Subordination of Other Obligations.  Any Indebtedness of the Borrower or any other Guarantor now or hereafter held by any other Guarantor (the “Obligee Guarantor”), whether
      as original creditor, assignee, or by way of contribution, subrogation, restitution or otherwise, is hereby subordinated in right of payment to the Guaranteed Obligations, and any such Indebtedness collected or received by the Obligee Guarantor after
      an Event of Default has occurred and is continuing shall be held in trust for the Agent on behalf of the Guaranteed Parties and shall forthwith be paid over to the Agent for the benefit of the Guaranteed Parties to be credited and applied against the
      Guaranteed Obligations but without affecting, impairing or limiting in any manner the liability of the Obligee Guarantor under any other provision hereof.

     

    

    
      7

      
        

    

    2.7         Financial Condition of Borrower and other Guarantors.  Any Credit Extension may be made to the Borrower or continued from time to time, and any Secured Hedge Agreement and Secured
      Cash Management Agreement may be entered into from time to time, in each case, without notice to or authorization from any Guarantor regardless of the financial or other condition of Borrower or any other Guarantor at the time of any such grant or
      continuation or at the time such Secured Hedge Agreement or Secured Cash Management Agreement is entered into, as the case may be.  No Guaranteed Party shall have any obligation to disclose or discuss with any Guarantor its assessment, or any
      Guarantor’s assessment, of the financial condition of the Borrower or any other Guarantor.  Each Guarantor has adequate means to obtain information from the Borrower and each other Guarantor on a continuing basis concerning the financial condition of
      the Borrower and each other Guarantor and its ability to perform its obligations under the Loan Documents, Secured Cash Management Agreements and Secured Hedge Agreements, and each Guarantor assumes the responsibility for being and keeping informed
      of the financial condition of the Borrower and each other Loan Party and each other Guarantor and of all circumstances bearing upon the risk of nonpayment of the Guaranteed Obligations.  Each Guarantor hereby waives and relinquishes any duty on the
      part of any Guaranteed Party to disclose any matter, fact or thing relating to the business, operations or condition of the Borrower or any other Guarantor now known or hereafter known by any Guaranteed Party.

     

    

    2.8         Bankruptcy, Etc.  Until a Discharge of the Guaranteed Obligations, no Guarantor shall, without the prior written consent of the Agent, commence or join with any other person in
      commencing any insolvency or liquidation proceeding of or against the Borrower or any other Guarantor.  The obligations of the Guarantors hereunder shall not be reduced, limited, impaired, discharged, deferred, suspended or terminated by any case or
      insolvency or liquidation proceeding, voluntary or involuntary, involving the Borrower or any other Guarantor or by any defense which the Borrower or any Guarantor may have by reason of the order, decree or decision of any court or administrative
      body resulting from any such proceeding.  To the fullest extent permitted by law, the Guarantors will permit any trustee in bankruptcy, receiver, debtor in possession, assignee for the benefit of creditors or similar person to pay the Agent, or allow
      the claim of the Agent in respect of, any interest, fees, costs, expenses or other Guaranteed Obligations accruing or arising after the date on which such case or proceeding is commenced.

     

    

    2.9         Duration of Guarantee, Discharge of Guarantee Upon Sale of Guarantor.  (a)  Except as provided in Section 2.9(b) below, and subject to Section 2.10 below, the guarantee contained
      in this Section 2 shall remain in full force and effect until the Discharge of the Guaranteed Obligations.

     

    

    (a)         The guaranty of any Guarantor hereunder shall automatically be discharged and released without any further
        action by any Guaranteed Party or other Person in the circumstances described in Section 9.10(b) and (c) of the Credit Agreement.

     

      

    (b)        At such time as there has been a Discharge of the Guaranteed Obligations, this Agreement and all obligations
        (other than those expressly stated to survive such termination) of the Agent and each Guarantor hereunder shall terminate, all without delivery of any instrument or performance of any act by any party.  At the request and sole expense of any
        Guarantor following any such termination or any release pursuant to Section 2.9(b), the Agent shall execute and deliver to such Guarantor such documents as such Guarantor shall reasonably request to evidence such termination.

     

      

    
      8

      
        

    

    2.10       Reinstatement.  If at any time payment of any of the Guaranteed Obligations or any portion thereof is rescinded, disgorged or must otherwise be restored or returned by any
      Guaranteed Party upon the insolvency, bankruptcy, dissolution, liquidation or reorganization of the Borrower or any Guarantor, or upon or as a result of the appointment of a receiver, intervenor or conservator of, or trustee or similar officer for,
      the Borrower or any other Guarantor or any substantial part of its property, or otherwise, or if any Guaranteed Party repays, restores, or returns, in whole or in part, any payment or property previously paid or transferred to the Guaranteed Party in
      full or partial satisfaction of any Guaranteed Obligation, because the payment or transfer or the incurrence of the obligation is so satisfied, is declared to be void, voidable, or otherwise recoverable under any state or federal law (collectively a
      “Voidable Transfer”), or because such Guaranteed Party elects to do so on the reasonable advice of its counsel in connection with an assertion that the payment, transfer, or incurrence is a Voidable Transfer, then, as to any such Voidable
      Transfer, and as to all reasonable costs, expenses and attorney’s fees of the Guaranteed Party related thereto, the liability of each Guarantor hereunder will automatically and immediately be revived, reinstated, and restored and will exist as though
      the Voidable Transfer had never been made.

     

    

    2.11       Keepwell.  Each Qualified ECP Guarantor hereby jointly and severally absolutely, unconditionally and irrevocably undertakes to provide such funds or other support as may be needed
      from time to time by each other Loan Party to honor all of its obligations under this Guaranty in respect of Swap Obligations (provided, however, that each Qualified ECP Guarantor shall only be liable under this Section 2.11 for the maximum amount of
      such liability that can be hereby incurred without rendering its obligations under this Section 2.11, or otherwise under this Guaranty, as it relates to such Loan Party, voidable under applicable law relating to fraudulent conveyance or fraudulent
      transfer, and not for any greater amount).  The obligations of each Qualified ECP Guarantor under this Section shall remain in full force and effect until a discharge of Guaranteed Obligations.  Each Qualified ECP Guarantor intends that this Section
      2.11 constitute, and this Section 2.11 shall be deemed to constitute, a “keepwell, support, or other agreement” for the benefit of each other Loan Party for all purposes of Section 1a(18)(A)(v)(II) of the Commodity Exchange Act.

     

    

    SECTION 3 REPRESENTATIONS, WARRANTIES AND COVENANTS OF THE GUARANTORS.

     

    

    3.1         Representations and Warranties.  Each Guarantor represents and warrants to the Guaranteed Parties on the Closing Date and on the date of each Credit Extension that the
      representations and warranties set forth in Section 4 of the Credit Agreement as they relate to such Guarantor or to the Loan Documents to which such Guarantor is a party, each of which is incorporated herein by reference, are true and correct in all
      material respects, except for representations and warranties that are qualified as to “materiality”, “Material Adverse Effect” or similar language, in which case such representations and warranties shall be true and correct (after giving effect to
      any such qualification therein) in all respects as of such date, in each case unless expressly stated to relate to a specific earlier date, in which case such representations and warranties shall be true and correct in all material respects as of
      such earlier date, and the Guaranteed Parties shall be entitled to rely on each of such representations and warranties as if they were fully set forth herein, provided that each such reference in each such representation and warranty to any
      Borrower’s knowledge shall, for the purposes of this Section 3.1, be deemed to be a reference to such Guarantor’s knowledge.

     

    

    3.2        Covenants.  Each Guarantor covenants and agrees with the Guaranteed Parties that, from and after the date of this Guaranty until the Discharge of the Guaranteed Obligations,
      such Guarantor shall take, or shall refrain from taking, as the case may be, each action that is necessary to be taken or not taken, as the case may be, so that no Default or Event of Default is caused by the failure to take such action or to refrain
      from taking such action by such Guarantor or any of its Subsidiaries.

     

    

    
      9

      
        

    

    SECTION 4 POWER OF ATTORNEY AND FURTHER ASSURANCES

     

    

    4.1         Agent’s Appointment as Attorney-in-Fact, Etc.  Each Guarantor hereby irrevocably constitutes and appoints the Agent and any officer or agent thereof, with full power of
      substitution, as its true and lawful attorney-in-fact with full irrevocable power and authority in the place and stead of such Guarantor and in the name of such Guarantor or in its own name, for the purpose of carrying out the terms of this
      Agreement, to take any and all appropriate action and to execute any and all documents and instruments which may be necessary or desirable to accomplish the purposes of this Agreement.

     

    

    4.2         Further Assurances.  Each Guarantor agrees that from time to time, at the expense of such Guarantor, it shall promptly execute and deliver all further instruments and
      documents and take all further action that may be necessary or desirable, or that the Agent may reasonably request, in order to ensure that the Guaranteed Parties receive the intended benefits hereof or to enable the Agent to exercise and enforce its
      rights and remedies hereunder.

     

    

    SECTION 5 APPLICATION OF PROCEEDS

      

    

    The Agent shall apply any proceeds of the guarantee set forth herein in Section 6.4 of the Security Agreement.

     

    

    SECTION 6 THE AGENT

     

    

    6.1         Authority of Agent.  (a)  Each Guarantor acknowledges that the rights and responsibilities of the Agent under this Agreement with respect to any action taken by the Agent or the
      exercise or non-exercise by the Agent of any option, voting right, request, judgment or other right or remedy provided for herein or resulting or arising out of this Agreement shall, as between the Agent and the other Guaranteed Parties, be governed
      by the Credit Agreement and by such other agreements with respect thereto as may exist from time to time among them, but, as between the Agent and the Guarantors, the Agent shall be conclusively presumed to be acting as agent for the Guaranteed
      Parties with full and valid authority so to act or refrain from acting, and no Guarantor shall be under any obligation, or entitlement, to make any inquiry respecting such authority.

     

    

    (a)          The Agent has been appointed to act as Agent hereunder by the Lenders and, by their acceptance of the
        benefits hereof, the other Guaranteed Parties.  The Agent shall be obligated, and shall have the right hereunder, to make demands, to give notices, to exercise or refrain from exercising any rights, and to take or refrain from taking any action,
        solely in accordance with this Agreement and the Credit Agreement.  The provisions of the Credit Agreement relating to the Agent, including without limitation, the provisions relating to resignation or removal of the Agent (subject to Section 6.2
        hereof) and the powers and duties and immunities of the Agent, are incorporated herein by this reference and shall survive any termination of the Credit Agreement.

     

      

    
      10

      
        

    

    6.2         Exculpation of the Agent.  (a)  The Agent shall not be responsible to any Guaranteed Party for the execution, effectiveness, genuineness, validity, enforceability,
      collectability or sufficiency hereof or for any representations, warranties, recitals or statements made herein or made in any written or oral statements or in any financial or other statements, instruments, reports or certificates or any other
      documents furnished or made by the Agent to the Guaranteed Parties or by or on behalf of any Guaranteed Party to the Agent or any Guaranteed Party in connection with the transactions contemplated hereby or for the financial condition or business
      affairs of any Loan Party or any other Person liable for the payment of any Guaranteed Obligations, nor shall the Agent be required to ascertain or inquire as to the performance or observance of any of the terms, conditions, provisions, covenants or
      agreements contained in any of the Loan Documents, Secured Hedge Agreement or Secured Cash Management Agreement or as to the existence or possible existence of any Event of Default or Default or to make any disclosures with respect to the foregoing.

     

    

    (a)        Neither the Agent nor any of its officers, partners, directors, employees or agents shall be liable to the
        Guaranteed Parties for any action taken or omitted by the Agent under or in connection herewith except to the extent caused solely and proximately by the Agent’s gross negligence or willful misconduct, as determined by a final, non-appealable
        judgment of a court of competent jurisdiction.  The Agent shall be entitled to refrain from any act or the taking of any action in connection herewith or from the exercise of any power, discretion or authority vested in it hereunder or thereunder.

     

      

    (b)         Without limiting the indemnification provisions of the Credit Agreement, each of the Guaranteed Parties not
        party to the Credit Agreement severally agrees to indemnify the Agent, to the extent that the Agent shall not have been reimbursed by any Loan Party, for and against any and all liabilities, obligations, losses, damages, penalties, actions,
        judgments, suits, costs, expenses (including counsel fees and disbursements) or disbursements of any kind or nature whatsoever which may be imposed on, incurred by or asserted against the Agent in exercising its powers, rights and remedies or
        performing its duties hereunder or otherwise in its capacity as the Agent in any way relating to or arising out of this Agreement; provided, no such Guaranteed Party shall be liable for any portion of such liabilities, obligations, losses,
        damages, penalties, actions, judgments, suits, costs, expenses or disbursements resulting solely and proximately from the Agent’s gross negligence or willful misconduct, as determined by a final, non-appealable judgment of a court of competent
        jurisdiction.  If any indemnity furnished to the Agent for any purpose shall, in the opinion of the Agent, be insufficient or become impaired, the Agent may call for additional indemnity and cease, or not commence, to do the acts insufficiently
        indemnified against until such additional indemnity is furnished.

     

      

    6.3         Delegation of Duties.  The Agent may perform any and all of its duties and exercise its rights and powers under this Agreement by or through any one or more sub-agents appointed
      by the Agent.  The Agent and any such sub-agent may perform any and all of its duties and exercise its rights and powers by or through their respective Affiliates.  All of the rights, benefits, and privileges (including the exculpatory and
      indemnification provisions) of this Section 6 shall apply to any such sub-agent and to any of the Affiliates of the Agent and any such sub-agents, and shall apply to their respective activities as if such sub-agent and Affiliates were named herein in
      connection with the transactions contemplated hereby and by the Security Documents.  Notwithstanding anything herein to the contrary, each sub-agent appointed by the Agent or Affiliate of the Agent or Affiliate of any such sub-agent shall be a third
      party beneficiary under this Agreement with respect to all such rights, benefits and privileges (including exculpatory rights and rights to indemnification) and shall have all of the rights and benefits of a third party beneficiary, including an
      independent right of action to enforce such rights, benefits and privileges (including exculpatory rights and rights to indemnification) directly, without the consent or joinder of any other Person, against any or all of the Loan Parties and the
      Guaranteed Parties, and such rights, benefits and privileges (including exculpatory rights and rights to indemnification) shall not be modified or amended without the consent of such sub-agent or Affiliate acting in such capacity.

     

    

    
      11

      
        

    

    6.4         Hedge Banks or Cash Management Banks.  No Hedge Bank or Cash Management Bank that obtains the benefits hereof, shall have any right to notice of any action or to consent to, direct or object to any action under any Loan Document other than in its
      capacity as a Lender and, in such case, only to the extent expressly provided in the Loan Documents.  Notwithstanding any other provision of this Guaranty to the contrary, the Agent shall not be required to verify the payment of, or that other satisfactory arrangements have been made with respect to, Guaranteed
      Obligations arising under Secured Hedge Agreements and Secured Cash Management Agreements unless the Agent has received written notice of such Guaranteed Obligations, together with such supporting documentation as the Agent may request, from the applicable Hedge Bank or Cash Management Bank.

     

    

    SECTION 7 MISCELLANEOUS

     

    

    7.1         Incorporation by Reference.  Sections 1.02(c), 10.01, 10.02. 10.03, 10.04, 10.06, 10.08, 10.10, 10.12, 10.14, 10.17 and 10.18 of the Credit Agreement are hereby incorporated by
      reference, mutatis mutandis, and each Guaranteed Party shall be entitled to rely on each of them as if they were fully set forth herein; provided that each reference therein to the Borrower shall be deemed to also be a reference to each Guarantor.

     

    

    7.2         Additional Guarantors.  Each Subsidiary of the Borrower or other Person that is required to become a party to this Agreement pursuant to Section 6.11 of the Credit Agreement shall
      become a Guarantor as required by the Credit Agreement for all purposes of this Agreement upon execution and delivery by such Subsidiary of a Joinder Agreement in the form of Annex 1 hereto.

     

    

    7.3       WAIVER OF JURY TRIAL.  EACH PARTY HERETO HEREBY IRREVOCABLY 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 GUARANTY OR THE TRANSACTIONS CONTEMPLATED HEREBY (WHETHER BASED ON CONTRACT, TORT OR ANY OTHER THEORY).  EACH PARTY HERETO (A) CERTIFIES THAT NO
        REPRESENTATIVE, AGENT OR ATTORNEY OF ANY OTHER PERSON HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PERSON WOULD NOT, IN THE EVENT OF LITIGATION, SEEK TO ENFORCE THE FOREGOING WAIVER AND (B) ACKNOWLEDGES THAT IT AND THE OTHER PARTIES
        HERETO HAVE BEEN INDUCED TO ENTER INTO THIS GUARANTY BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS SECTION.

     

      

    [This Space Intentionally Left Blank]

    

    

    
      12

      
        

    

    IN WITNESS WHEREOF, each of the undersigned has caused this Guaranty Agreement to be duly executed and delivered as of the date first above written.

     

    

    BORROWER:

     

    

    	 	
            TURNING POINT BRANDS, INC.

          
	 	 	 
	 	
            By:

          	
            /s/ Brittani Cushman

          
	 	
            Name: Brittani Cushman

          
	 	
            Title: Senior Vice President, General Counsel

          
	 	
            and Secretary

          

    

    

    Notice to:

    Turning Point Brands, Inc.

    5201 Interchange Way

    Louisville, KY 40229

    Attention: Chief Financial Officer

    Email: rlavan@tpbi.com

    

    

    with a copy to

    

    

    Milbank

    55 Hudson Yards

    New York, NY 10001-2163

    Attention: Mike Bellucci

    Email: MBellucci@milbank.com

    

    

    GUARANTORS:

     

    

    	 	
            NORTH ATLANTIC TRADING COMPANY, INC

          
	 	 	 
	 	
            By:

          	
            /s/ Brittani Cushman

          	 
	 	 	
            Name: Brittani Cushman

          
	 	 	
            Title: Senior Vice President, General Counsel

          
	 	 	
            and Secretary

          

    

    

    	 	
            NORTH ATLANTIC OPERATING COMPANY, INC

          
	 	 	 
	 	
            By:

          	
            /s/ Brittani Cushman

          	 
	 	 	
            Name: Brittani Cushman

          
	 	 	
            Title: Senior Vice President, General Counsel

          
	 	 	
            and Secretary

          

     

    

    
      [Signature Page to Guarantee Agreement]

    

     

    

    
      
        

    

    
    	 	
            NORTH ATLANTIC CIGARETTE COMPANY, INC

          
	 	 	 
	 	
            By:

          	
            /s/ Brittani Cushman

          	 
	 	 	
            Name: Brittani Cushman

          
	 	 	
            Title: Senior Vice President, General Counsel

          
	 	 	
            and Secretary

          

    

    

    	 	
            TURNING POINT BRANDS, LLC

          
	 	 	 
	 	
            By:

          	
            /s/ Brittani Cushman

          	 
	 	 	
            Name: Brittani Cushman

          
	 	 	
            Title: Senior Vice President, General Counsel

          
	 	 	
            and Secretary

          

    

    

    	 	
            NATIONAL TOBACCO FINANCE, LLC

          
	 	 	 
	 	
            By:

          	
            /s/ Brittani Cushman

          	 
	 	 	
            Name: Brittani Cushman

          
	 	 	
            Title: Senior Vice President, General Counsel

          
	 	 	
            and Secretary

          

    

    

    	 	
            INTREPID BRANDS, LLC

          
	 	 	 
	 	
            By:

          	
            /s/ Brittani Cushman

          	 
	 	 	
            Name: Brittani Cushman

          
	 	 	
            Title: Senior Vice President, General Counsel

          
	 	 	
            and Secretary

          

    

    

    	 	
            TPB BEAST LLC

          
	 	 	 
	 	
            By:

          	
            /s/ Brittani Cushman

          	 
	 	 	
            Name: Brittani Cushman

          
	 	 	
            Title: Senior Vice President, General Counsel

          
	 	 	
            and Secretary

          

    

    

    	 	
            TPB INTERNATIONAL, LLC

          
	 	 	 
	 	
            By:

          	
            /s/ Brittani Cushman

          	 
	 	 	
            Name: Brittani Cushman

          
	 	 	
            Title: Senior Vice President, General Counsel

          
	 	 	
            and Secretary

          

    

    

    
      2

      
        

    

    	 	
            TPB SHARK, LLC

          
	 	 	 
	 	
            By:

          	
            /s/ Brittani Cushman

          	 
	 	 	
            Name: Brittani Cushman

          
	 	 	
            Title: Senior Vice President, General Counsel

          
	 	 	
            and Secretary

          

    

    

    	 	
            NU-X VENTURES, LLC

          
	 	 	 
	 	
            By:

          	
            /s/ Brittani Cushman

          	 
	 	 	
            Name: Brittani Cushman

          
	 	 	
            Title: Senior Vice President, General Counsel

          
	 	 	
            and Secretary

          

    

    

    	 	
            NU-TECH HOLDINGS LLC

          
	 	 	 
	 	
            By:

          	
            /s/ Brittani Cushman

          	 
	 	 	
            Name: Brittani Cushman

          
	 	 	
            Title: Senior Vice President, General Counsel

          
	 	 	
            and Secretary

          

    

    

    	 	
            SOUTH BEACH HOLDINGS LLC

          
	 	 	 
	 	
            By:

          	
            /s/ Brittani Cushman

          	 
	 	 	
            Name: Brittani Cushman

          
	 	 	
            Title: Senior Vice President, General Counsel

          
	 	 	
            and Secretary

          

    

    

    	 	
            NU-X DISTRIBUTION LLC

          
	 	 	 
	 	
            By:

          	
            /s/ Brittani Cushman

          	 
	 	 	
            Name: Brittani Cushman

          
	 	 	
            Title: Senior Vice President, General Counsel

          
	 	 	
            and Secretary

          

    

    

    	 	
            NORTH ATLANTIC WRAP COMPANY LLC

          
	 	 
	 	
            By:

          	
            /s/ Brittani Cushman

          	 
	 	 	
            Name: Brittani Cushman

          
	 	 	
            Title: Senior Vice President, General Counsel

          
	 	 	
            and Secretary

          

    

    

    
      3

      
        

    

    	 	
            TPB SERVICES LLC

          
	 	 	 
	 	
            By:

          	
            /s/ Brittani Cushman

          	 
	 	 	
            Name: Brittani Cushman

          
	 	 	
            Title: Senior Vice President, General Counsel

          
	 	 	
            and Secretary

          

    

    

    	 	
            NATIONAL TOBACCO COMPANY, LP

          
	 	 	 
	 	
            By:

          	
            /s/ Brittani Cushman

          	 
	 	 	
            Name: Brittani Cushman

          
	 	 	
            Title: Senior Vice President, General Counsel

          
	 	 	
            and Secretary

          

    

    

    	 	
            RBJ SALES, INC.

          
	 	 	 
	 	
            By:

          	
            /s/ Brittani Cushman

          	 
	 	 	
            Name: Brittani Cushman

          
	 	 	
            Title: Senior Vice President, General Counsel

          
	 	 	
            and Secretary

          

    

    

    Notice to:

    Turning Point Brands, Inc.

    5201 Interchange Way

    Louisville, KY 40229

    Attention: Chief Financial Officer

    Email: rlavan@tpbi.com

    

    

    with a copy to

    

    

    Milbank

    55 Hudson Yards

    New York, NY 10001-2163

    Attention: Mike Bellucci

    Email: MBellucci@milbank.com

    

    

    
      4

      
        

    

    AGENT:

    

    

    	 	
            BARCLAYS BANK PLC,

          
	 	
            as Agent

          
	 	 	 
	 	
            By:

          	
            /s/ Christopher M. Aitkin

          
	 	 	
            Name: Christopher M. Aitkin

          
	 	 	
            Title: Vice President

          

    

    

    Barclays Bank PLC

    Bank Debt Management Group

    745 Seventh Avenue

    New York, NY 10019

    Attn: Turning Point Brands Portfolio Manager: Philip Naber / Nicholas Sibayan

    Tel: 212-526-7375 / 212-526-9531

    Email: nicholas.sibayan@barclays.com and philip.naber@barclays.com

    

    

    
      5

      
        

    

    Annex 1 to

    Guaranty Agreement

     

    

    JOINDER AGREEMENT, dated as of ____________,  20____, made by ______________________, a _______________ corporation (the “Additional Guarantor”), in favor of Barclays Bank PLC, as Agent (in
      such capacity, the “Agent”) for (i) the banks and other financial institutions and entities (the “Lenders”) parties to the Credit Agreement referred to below, and (ii) the other Guaranteed Parties (as defined in the Guaranty Agreement
      (as hereinafter defined)).  All capitalized terms not defined herein shall have the meaning ascribed to them in such Credit Agreement.

     

    

    W I T N E S S E T H:

     

    

    WHEREAS, Turning Point Brands, Inc. (the “Borrower”), the Lenders, and the Agent have entered into a Credit Agreement, dated as of February 11, 2021 (as amended, supplemented, replaced or
      otherwise modified from time to time, the “Credit Agreement”);

     

    

    WHEREAS, in connection with the Credit Agreement, the Borrower and certain of its Affiliates (other than the Additional Guarantor) have entered into the Guarantee Agreement, dated as of February 11,
      2021 (as amended, supplemented replaced or otherwise modified from time to time, the “Guaranty Agreement”) in favor of the Agent for the benefit of the Guaranteed Parties;

     

    

    WHEREAS, the Credit Agreement requires the Additional Guarantor to become a party to the Guaranty Agreement; and

     

    

    WHEREAS, the Additional Guarantor has agreed to execute and deliver this Joinder Agreement in order to become a party to the Guaranty Agreement;

     

    

    NOW, THEREFORE, IT IS AGREED:

     

    

    1.          Guaranty Agreement.  By executing and delivering this Joinder Agreement, the Additional Guarantor, as provided in Section 7.14 of the Guaranty Agreement, hereby becomes a party to
      the Guaranty Agreement as a Guarantor thereunder with the same force and effect as if originally named therein as a Guarantor and, without limiting the generality of the foregoing, hereby expressly assumes all obligations and liabilities of a
      Guarantor thereunder.  The Additional Guarantor hereby represents and warrants that each of the representations and warranties contained in Section 4 of the Guaranty Agreement is true and correct on and as the date hereof (after giving effect to this
      Joinder Agreement) as if made on and as of such date.

     

    

    2.      GOVERNING LAW.  THIS ASSUMPTION AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED AND INTERPRETED IN ACCORDANCE
        WITH, THE LAW OF THE STATE OF NEW YORK.

     

      

    3.           Successors and Assigns.  This Joinder Agreement will be binding upon and inure to the benefit of the parties hereto and their respective successors and assigns, except that the
      Additional Guarantor may not assign, transfer or delegate any of its rights or obligations under this Assumption Agreement without the prior written consent of the Agent and any such assignment, transfer or delegation without such consent shall be
      null and void  unless pursuant to a transaction permitted by the Credit Agreement.

     

    

    
      
        

    

    
    IN WITNESS WHEREOF, the undersigned has caused this Joinder Agreement to be duly executed and delivered as of the date first above written.

     

    

    	 	
            [ADDITIONAL GUARANTOR]

          
	 	 	 
	 	
            By:

          	 	 
	 	 	
            Name:

          
	 	 	
            Title:

          

    

    

  

  Annex I

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