Document:

Exhibit 10.4

 

INTERCREDITOR AGREEMENT

 

by and among

 

BANK OF AMERICA, N.A.,

 

as First Lien Agent,

 

and

 

WILMINGTON TRUST, NATIONAL ASSOCIATION,

 

as Second Lien Agent,

 

dated as of August 15, 2014

 

    	 

    	 

    

 

TABLE OF CONTENTS

 

	 	 	Page No.
	 	 	 
	ARTICLE 1. DEFINITIONS	2
	 	 	 
	Section 1.1.	UCC Definitions	2
	Section 1.2.	Other Definitions	2
	Section 1.3.	Rules of Construction	12
	 	 	 
	ARTICLE 2. LIEN PRIORITY	12
	 	 	 
	Section 2.1.	Priority of Liens	12
	Section 2.2.	Waiver of Right to Contest Liens	14
	Section 2.3.	Remedies Standstill	15
	Section 2.4.	Release of Liens	17
	Section 2.5.	No New Liens	17
	Section 2.6.	Waiver of Marshalling	18
	 	 	 
	ARTICLE 3. ACTIONS OF THE PARTIES	18
	 	 	 
	Section 3.1.	Certain Actions Permitted	18
	Section 3.2.	Agent for Perfection	18
	Section 3.3.	Sharing of Information and Access; Notices of Default	19
	Section 3.4.	Insurance	20
	Section 3.5.	No Additional Rights For the Loan Parties Hereunder	20
	Section 3.6.	Payments Over	21
	Section 3.7.	Revolving Nature of Certain First Lien Obligations	21
	Section 3.8.	Legends	21
	 	 	 
	ARTICLE 4. APPLICATION OF PROCEEDS	22
	 	 	 
	Section 4.1.	Application of Proceeds	22
	Section 4.2.	Turnover of Collateral After Discharge	22
	Section 4.3.	Limited Obligation or Liability	23
	Section 4.4.	Specific Performance	23
	 	 	 
	ARTICLE 5. INTERCREDITOR ACKNOWLEDGEMENTS AND WAIVERS	23
	 	 	 
	Section 5.1.	Notice of Acceptance and Other Waivers	23
	Section 5.2.	Modifications to First Lien Documents and Second Lien Documents	24
	Section 5.3.	Reinstatement and Continuation of Agreement	26
	 	 	 
	ARTICLE 6. INSOLVENCY PROCEEDINGS	27
	 	 	 
	Section 6.1.	DIP Financing	27
	Section 6.2.	Relief From Stay	28
	Section 6.3.	No Contest; Adequate Protection	28
	Section 6.4.	Asset Sales	30
	Section 6.5.	Separate Grants of Security and Separate Classification	30
	Section 6.6.	Enforceability	30
	Section 6.7.	First Lien Obligations Unconditional	31
	Section 6.8.	Second Lien Obligations Unconditional	31
	Section 6.9.	Reorganization Securities	31
	Section 6.10.	Rights as Unsecured Creditors	31

 

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TABLE OF CONTENTS (Cont’d)

 

	 	 	Page No.
	 	 	 
	ARTICLE 7. PURCHASE OPTION	32
	 	 	 
	Section 7.1.	Right to Purchase	32
	Section 7.2.	Payments	32
	Section 7.3.	Documentation	33
	Section 7.4.	Retained Interest of First Lien Lenders	33
	 	 	 
	ARTICLE 8. MISCELLANEOUS	33
	 	 	 
	Section 8.1.	Rights of Subrogation	33
	Section 8.2.	Further Assurances	34
	Section 8.3.	Representations	34
	Section 8.4.	Amendments	34
	Section 8.5.	Addresses for Notices	34
	Section 8.6.	No Waiver; Remedies	35
	Section 8.7.	Continuing Agreement, Transfer of Secured Obligations	35
	Section 8.8.	Governing Law; Entire Agreement	35
	Section 8.9.	Counterparts	36
	Section 8.10.	No Third Party Beneficiaries	36
	Section 8.11.	Headings	36
	Section 8.12.	Severability	36
	Section 8.13.	VENUE; JURY TRIAL WAIVER	36
	Section 8.14.	Intercreditor Agreement	37
	Section 8.15.	No Warranties or Liability	37
	Section 8.16.	Conflicts	37
	Section 8.17.	Information Concerning Financial Condition of the Loan Parties	38
	Section 8.18.	Initial Loan To Value	38

 

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INTERCREDITOR AGREEMENT

 

THIS INTERCREDITOR
AGREEMENT (as amended, supplemented, restated or otherwise modified from time to time pursuant to the terms hereof, this “Agreement”)
is entered into as of 15, 2014 among (a) BANK OF AMERICA, N.A., in its capacity as administrative agent and collateral agent
(together with its successors and assigns in such capacity, the “First Lien Agent”) for (i) the financial
institutions party from time to time to the First Lien Credit Agreement referred to below (such financial institutions, together
with their respective successors, assigns and transferees, the “First Lien Lenders”) and (ii) any First
Lien Bank Products Affiliates and First Lien Cash Management Affiliates (each as defined below) (such First Lien Bank Products
Affiliates and First Lien Cash Management Affiliates, together with the First Lien Agent and the First Lien Lenders, the “First
Lien Secured Parties”), and (b) WILMINGTON TRUST, NATIONAL ASSOCIATION, in its capacity as administrative
agent and collateral agent (together with its successors and assigns in such capacity, the “Second Lien Agent”)
for the financial institutions party from time to time to the Second Lien Credit Agreement referred to below (such financial institutions,
together with their respective successors, assigns and transferees, the “Second Lien Lenders” and together
with the Second Lien Agent and the Second Lenders, the “Second Lien Secured Parties”), and acknowledged
by (c) SEQUENTIAL BRANDS GROUP, INC. (the “Borrower”), a Delaware corporation, and (d) each of
the Guarantors (as defined below) which are signatories to this Agreement.

 

RECITALS

 

A.           Pursuant
to that certain First Lien Credit Agreement dated as of the date hereof, by and among the Borrower, the Guarantors (as hereinafter
defined), the First Lien Lenders and the First Lien Agent (as such agreement may be amended, supplemented, restated or otherwise
modified from time to time in accordance with the terms hereof, the “First Lien Credit Agreement”), the
First Lien Lenders have agreed to make certain loans to or for the benefit of the Borrower.

 

B.           Pursuant
to the Guaranty (as the same may be amended, supplemented, restated and/or otherwise modified in accordance with the terms hereof,
the “First Lien Guaranty”) by certain subsidiaries of the Borrower (the “Guarantors”)
in favor of the First Lien Secured Parties, the Guarantors have agreed to guarantee the payment and performance of the Borrower’s
obligations under the First Lien Loan Documents (as hereinafter defined) as provided in the First Lien Guaranty.

 

C.           As
a condition to the effectiveness of the First Lien Credit Agreement and to secure the obligations of the Borrower and the Guarantors
(the Borrower, the Guarantors and each other direct or indirect subsidiary of the Borrower that is now or hereafter becomes a party
to any First Lien Loan Document, collectively, the “First Lien Loan Parties”) under and in connection
with the First Lien Loan Documents, the First Lien Loan Parties have granted to the First Lien Agent (for the benefit of the First
Lien Secured Parties) Liens on the Collateral (as hereinafter defined).

 

    	 

    	 

    

 

D.           Pursuant
to that certain Second Lien Term Loan Agreement dated as of the date hereof, by and among the Borrower, the Guarantors, the Second
Lien Lenders and the Second Lien Agent (as such agreement may be amended, supplemented, restated or otherwise modified from time
to time in accordance with the terms hereof, the “Second Lien Loan Agreement”), the Second Lien Lenders
have agreed to make certain loans to the Borrower.

 

E.           Pursuant to the Guaranty (as the same may be amended, supplemented, restated
and/or otherwise modified in accordance with the terms hereof, the “Second Lien Guaranty”) by the
Guarantors in favor of the Second Lien Secured Parties, the Guarantors have agreed to guarantee the payment and performance
of the Borrower’s obligations under the Second Lien Loan Documents (as hereinafter defined) as provided in the Second
Lien Guaranty.

 

F.           As
a condition to the effectiveness of the Second Lien Credit Agreement and to secure the obligations of the Borrower and the Guarantors
(the Borrower, the Guarantors and each other direct or indirect subsidiary of the Borrower that is now or hereafter becomes a party
to any Second Lien Loan Document, collectively, the “Second Lien Loan Parties”) under and in connection
with the Second Lien Loan Documents, the Second Lien Loan Parties have granted to the Second Lien Agent (for the benefit of the
Second Lien Secured Parties) Liens on the Collateral.

 

G.           Each
of the First Lien Agent (on behalf of the First Lien Secured Parties) and the Second Lien Agent (on behalf of the Second Lien Secured
Parties) and, by their acknowledgment hereof, the First Lien Loan Parties and the Second Lien Loan Parties, desire to agree to
the relative priority of Liens on the Collateral and certain other rights, priorities and interests as provided herein.

 

NOW THEREFORE,
in consideration of the foregoing and for other good and valuable consideration, receipt of which is hereby acknowledged, the parties
hereto agree as follows:

 

ARTICLE 1.

DEFINITIONS

 

Section 1.1.           UCC
Definitions. The following terms which are defined in the Uniform Commercial Code are used herein as so defined: Accounts,
Chattel Paper, Commercial Tort Claims, Deposit Accounts, Documents, Electronic Chattel Paper, Equipment, Financial Assets, Fixtures,
General Intangibles, Goods, Instruments, Inventory, Investment Property, Letter-of-Credit Rights, Payment Intangibles, Proceeds,
Promissory Notes, Records, Securities Accounts, Security, Security Entitlements, Supporting Obligations and Tangible Chattel Paper.

 

Section 1.2.           Other
Definitions. Subject to Section 1.1, as used in this Agreement, the following terms shall have the meanings set forth
below:

 

“Affiliate”
shall mean, any Person which, directly or indirectly, controls, is controlled by or is under common control with any Person.

 

“Agent(s)”
means individually the First Lien Agent or the Second Lien Agent and collectively means both the First Lien Agent and the Second
Lien Agent.

 

“Agreement”
shall have the meaning assigned to that term in the introduction to this Agreement.

 

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“Bank Products”
shall have the meaning assigned to that term in the First Lien Credit Agreement.

 

“Bank Product
Obligations” shall mean all obligations with respect to Bank Product Agreements.

 

“Bank Product
Agreement” shall mean any agreement pursuant to which a First Lien Bank Product Affiliate agrees to provide
Bank Products to a Loan Party.

 

“Bankruptcy
Code” shall mean Title 11 of the United States Code, as now or hereafter in effect or any successor thereto.

 

“Borrower”
shall have the meaning assigned to that term in the introduction to this Agreement.

 

“Business
Day” shall mean any day that is not a Saturday, Sunday or other day on which commercial banks in Boston, Massachusetts
or New York, New York are authorized or required by law to remain closed (or are in fact closed).

 

“Cash Management
Services” shall have the meaning assigned to that term in the First Lien Credit Agreement.

 

“Cash Management
Services Agreement” shall mean any agreement pursuant to which any First Lien Cash Management Affiliate agrees to
provide Cash Management Services.

 

“Collateral”
shall mean all Property now owned or hereafter acquired by the Borrower or any Guarantor in or upon which a Lien is granted to
the First Lien Agent or the Second Lien Agent under any of the First Lien Security Documents or the Second Lien Security Documents,
together with all rents, issues, profits, products and Proceeds thereof.

 

“Control
Collateral” shall mean any Collateral consisting of any Certificated Security (as defined in Section 8-102 of the
Uniform Commercial Code), Investment Property, Deposit Account, Instruments and any other Collateral as to which a Lien may be
perfected through possession or control by the secured party, or any agent therefor.

 

“Debtor
Relief Laws” shall mean the Bankruptcy Code of the United States, and all other liquidation, conservatorship, bankruptcy,
assignment for the benefit of creditors, moratorium, rearrangement, receivership, insolvency, reorganization, or similar debtor
relief Laws of the United States or other applicable jurisdictions from time to time in effect and affecting the rights of creditors
generally.

 

“DIP Financing”
shall have the meaning set forth in Section 6.1(a).

 

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“Discharge
of First Lien Obligations” shall mean (a) the payment in full in cash of all outstanding First Lien Obligations (other
than (i) contingent indemnity obligations with respect to then unasserted claims (ii) any First Lien Obligations relating to Bank
Products (including Swap Contracts) that, at such time, are allowed by the applicable Bank Product provider to remain outstanding
without being required to be repaid or cash collateralized, and (iii) any First Lien Obligations relating to Cash Management Services
that, at such time, are allowed by the applicable provider of such Cash Management Services to remain outstanding without being
required to be repaid); and (b) the termination of all commitments to make Loans of issue Letters of Credit under the First Lien
Credit Agreement. If, at any time prior to or simultaneously with the occurrence of the Discharge of First Lien Obligations, the
Loan Parties enter into (x) any refinancing of the First Lien Obligations, which refinancing is permitted under the terms of this
Agreement or (y) DIP Financing provided by one or more of the First Lien Lenders and the First Lien Agent to one or more Loan Parties
and such DIP Financing is entered into in accordance with Section 6.1, then, in each case, the Discharge of First Lien Obligations
shall automatically be deemed not to have occurred for all purposes of this Agreement.

 

“Discharge
of Second Lien Obligations” shall mean the payment in full in cash of all outstanding Second Lien Obligations (other
than (i) contingent indemnity obligations with respect to then unasserted claims, (ii) any Second Lien Obligations relating to
Bank Products (including Swap Contracts) that, at such time, are allowed by the applicable Bank Product provider to remain outstanding
without being required to be repaid or cash collateralized, and (iii) any Second Lien Obligations relating to Cash Management Services
that, at such time, are allowed by the applicable provider of such Cash Management Services to remain outstanding without being
required to be repaid). If, at any time prior to or simultaneously with the occurrence of the Discharge of Second Lien Obligations,
the Loan Parties enter into any refinancing of the Second Lien Obligations, which refinancing is permitted under the terms of this
Agreement, then the Discharge of Second Lien Obligations shall automatically be deemed not to have occurred for all purposes of
this Agreement.

 

“Disposition”
shall mean the sale, transfer, license, sublicense, lease or other disposition of any property by any Person, whether in one transaction
or in a series of transactions.

 

“Domain
Names” shall mean all Internet domain names and associated URL addresses in or to which any Loan Party now or hereafter
has any right, title or interest.

 

“Excess
First Lien Obligations” shall mean First Lien Obligations constituting (a) the aggregate outstanding principal amount
of loans made pursuant to the First Lien Loan Documents in excess of the Maximum First Lien Facility Amount and any interest, fees
or reimbursement obligations accrued on or with respect to such excess amounts, and (b) any early termination fee, make-whole payment
or prepayment fee payable under the First Lien Credit Agreement.

 

“Excess
Second Lien Obligations” shall mean Second Lien Obligations constituting (a) the aggregate outstanding principal
amount of loans made pursuant to the Second Lien Loan Documents in excess of the Maximum Second Lien Facility Amount and any interest,
fees or reimbursement obligations accrued on or with respect to such excess amounts and (b) any early termination fee, make-whole
payment or prepayment fee payable under the Second Lien Credit Agreement.

 

“Exercise
of Any Secured Creditor Remedies” or “Exercise of Secured Creditor Remedies” shall mean,
except as otherwise provided in the final sentence of this definition:

 

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(a)           the
taking by any Secured Party of any action to enforce or realize upon any Lien in the Collateral, including the institution of any
foreclosure proceedings or the noticing of any public or private sale pursuant to Article 9 of the Uniform Commercial Code or other
applicable law;

 

(b)           the
exercise by any Secured Party of any right or remedy provided to a secured creditor on account of a Lien in the Collateral under
any of the Loan Documents, under applicable law, in an Insolvency Proceeding or otherwise, including, without limitation, the exercise
by a Secured Party of any voting rights relating to any equity interests included in the Collateral;

 

(c)           the
appointment on the application of a Secured Party, of a receiver, receiver and manager, or interim receiver of all or part of the
Collateral; and

 

(d)           the
exercise of any other right of a secured creditor under Part 6 of Article 9 of the Uniform Commercial Code or under provisions
of similar effect under other applicable law in respect of the Collateral.

 

For the avoidance of
doubt, none of the following shall be deemed to constitute an Exercise of Secured Creditor Remedies: (i) acceleration by the relevant
Secured Parties of the maturity of the First Lien Obligations or the Second Lien Obligations, as the case may be, (ii) the filing
of a proof of claim in any Insolvency Proceeding or seeking adequate protection, (iii) the exercise of rights by the First Lien
Agent upon the occurrence of a Cash Control Event consisting solely of the notification of licensees or other account debtors,
depository institutions or any other Person to deliver Proceeds of Collateral to the First Lien Agent, or (iv) the consent by the
First Lien Agent to a disposition by any Loan Party of any of the Collateral.

 

“First
Lien Agent” shall have the meaning assigned to that term in the introduction to this Agreement and shall include
any successor thereto as well as any Person designated as the “Agent” under any First Lien Credit Agreement.

 

“First
Lien Bank Products Affiliate” shall mean the First Lien Agent, any First Lien Lender or any Affiliate of any First
Lien Lender or First Lien Agent that has entered into a agreement relating to Bank Products with a First Lien Loan Party with the
obligations of such First Lien Loan Party thereunder being secured by one or more First Lien Security Documents, together with
their respective successors, assigns and transferees.

 

“First
Lien Cash Management Affiliate” shall mean any First Lien Agent, First Lien Lender or any Affiliate of an First Lien
Lender or First Lien Agent that provides Cash Management Services to any of the First Lien Loan Parties with the obligations of
such First Lien Loan Parties thereunder being secured by one or more First Lien Security Documents, together with their respective
successors, assigns and transferees.

 

“First
Lien Credit Agreement” shall have the meaning assigned to such term in the recitals to this Agreement and shall include
any other agreement extending the maturity of, consolidating, restructuring, refunding, replacing or refinancing all or any portion
of the First Lien Obligations in accordance with the terms hereof (including any credit agreement in connection with a DIP Financing
provided by any of the First Lien Secured Parties pursuant to Section 6.1(a) hereof), whether by the same or any other agent, lender
or group of lenders and whether or not increasing the amount of any Indebtedness that may be incurred thereunder; provided that
any such amendment, modification or refinancing shall be in accordance with the terms and conditions of this Agreement.

 

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“First
Lien Event of Default” shall mean an Event of Default as defined in the First Lien Credit Agreement.

 

“First
Lien Guaranty” shall have the meaning assigned to that term in the recitals to this Agreement and shall also include
any further guaranty made by an Guarantor guaranteeing, inter alia, the payment and performance of the First Lien Obligations.

 

“First
Lien Lenders” shall have the meaning assigned to that term in the introduction to this Agreement, as well as any
Person designated as a “Lender” under any First Lien Credit Agreement.

 

“First
Lien Loan Documents” shall mean the First Lien Credit Agreement, the First Lien Guaranty, the First Lien Security
Documents, all agreements relating to Bank Products between any First Lien Loan Party and any First Lien Bank Products Affiliate,
all Cash Management Services Agreements between any First Lien Loan Party and any First Lien Cash Management Affiliate, those other
ancillary agreements as to which any First Lien Secured Party is a party or a beneficiary and all other related agreements, instruments,
documents and certificates, now or hereafter executed by or on behalf of any First Lien Loan Party or any of its respective subsidiaries
or Affiliates, and delivered to the First Lien Agent or any other First Lien Secured Party, in connection with any of the foregoing
or any First Lien Credit Agreement, in each case as the same may be amended, supplemented, restated or otherwise modified from
time to time in accordance with the terms hereof.

 

“First
Lien Loan Parties” shall have the meaning assigned to that term in the recitals to this Agreement.

 

“First
Lien Obligations” shall mean all obligations (including all “Obligations” under and as defined in the
First Lien Credit Agreement) of every nature of each First Lien Loan Party from time to time owed to the First Lien Secured Parties,
or any of them, under any First Lien Loan Document (including any obligations in connection with a DIP Financing provided by any
of the First Lien Secured Parties pursuant to Section 6.1(a) hereof), whether for principal, interest, reimbursement of amounts
drawn under letters of credit, payments for early termination of Bank Products, Cash Management Services, fees, expenses, indemnification
or otherwise, and all other amounts owing or due under the terms of the First Lien Loan Documents, as amended, restated, modified,
renewed, refunded, replaced or refinanced in whole or in part from time to time. For clarity, First Lien Obligations include interest,
fees, expenses, indemnities and all other amounts owing or due under the terms of the First Lien Credit Agreement or any other
First Lien Loan Documents regardless of whether to First Lien Agent’s or any First Lien Secured Party’s is allowed
or allowable in any Insolvency Proceeding.

 

“First
Lien Recovery” shall have the meaning set forth in Section 5.3(a).

 

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“First
Lien Secured Parties” shall have the meaning to that term in the introduction to this Agreement.

 

“First
Lien Security Documents” shall mean all “Security Documents” as defined in the First Lien Credit Agreement,
and all other security agreements, mortgages, deeds of trust and other security documents executed and delivered in connection
with the First Lien Loan Documents, in each case as the same may be amended, supplemented, restated or otherwise modified from
time to time.

 

“Governmental
Authority” shall mean any foreign, federal, state, regional, local, municipal or other government, or any department,
commission, board, bureau, agency, public authority or instrumentality thereof, or any court or arbitrator.

 

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

 

“Inadvertent
Overadvances” shall mean the funding of any loan under the First Lien Credit Agreement which did not result in an
Overadvance when made but which has, on the relevant date of determination, become an Overadvance as the result of circumstances
beyond the reasonable control of the First Lien Agent or the First Secured Parties (including as the result of the entry of an
adverse order for use of cash collateral by the United States Bankruptcy Court), including (i) a decline in the value of the Collateral,
(ii) errors or fraud on any report produced by the Loan Parties calculating the covenants set forth in Section 7.15(b) of the First
Lien Credit Agreement and Section 7.15(b) of the Second Lien Credit Agreement, (iii) any failure of the First Lien Loan Parties
to comply with Section 6.18(b) of the First Lien Credit Agreement, (iv) the return of uncollected checks or other items of payment
applied to the reduction of Loans (as defined in the First Lien Credit Agreement) or other similar involuntary or unintentional
actions, or (v) any other circumstance beyond the reasonable control of the First Lien Agent or the First Lien Secured Parties
that results in the reduction of the Realizable Orderly Liquidation Value (as defined in the First Lien Credit Agreement) of the
Collateral.

 

“Inadvertent
Overadvance Amounts” shall mean the aggregate amount of Overadvances which have resulted from any and all Inadvertent
Overadvances.

 

“Insolvency
Proceeding” shall mean (a) any case, action or proceeding before any court or other Governmental Authority relating
to bankruptcy, reorganization, insolvency, liquidation, administration, receivership, dissolution, winding-up or relief of debtors,
or (b) any general assignment for the benefit of creditors, composition, marshalling of assets for creditors or other similar arrangement
in respect of its creditors generally or any substantial portion of its creditors; in each case covered by clauses (a) and (b)
undertaken under any Debtor Relief Laws.

 

“Intellectual
Property” shall have the meaning given to such term in the First Lien Credit Agreement.

 

“Lender(s)”
means individually, the First Lien Lenders or the Second Lien Lenders and collectively means all of the First Lien Lenders and
the Second Lien Lenders.

 

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“Lien”
shall mean, with respect to any asset, any mortgage, deed of trust, security interest, charge, pledge, hypothecation, assignment,
attachment, deposit arrangement, encumbrance, lien (statutory, judgment or otherwise, but excluding any right of set off arising
by operation of law or pursuant to agreements entered into in the ordinary course of business), or other security agreement or
preferential arrangement of any kind or nature whatsoever (including any conditional sale) or other title retention agreement,
any capitalized lease, any synthetic lease, any financing lease involving substantially the same economic effect as any of the
foregoing and the filing of any financing statement under the Uniform Commercial Code or comparable law of any jurisdiction in
respect of the foregoing.

 

“Lien Priority”
shall mean with respect to any Lien of the First Lien Secured Parties or the Second Lien Secured Parties in the Collateral, the
order of priority of such Lien as specified in Section 2.1.

 

“Loan Documents”
shall mean the First Lien Loan Documents and the Second Lien Loan Documents.

 

“Loan Parties”
shall mean the First Lien Loan Parties and the Second Lien Loan Parties.

 

“Maximum
First Lien Facility Amount” shall mean, on any date of determination thereof, a principal amount equal to (a) $110,000,000,
plus (b) the aggregate principal amount of Indebtedness that may be incurred under Section 2.14 of the First Lien Credit
Agreement, plus (c) the aggregate principal amount of all Indebtedness advanced by any First Lien Secured Party pursuant
to the right of first refusal set forth in Section 6.17 of the First Lien Credit Agreement, provided that any such Indebtedness
under this clause (c) that would cause the Loan to Value Ratio (as defined in the First Lien Credit Agreement as in effect on the
Closing Date) to be greater than fifty percent (50%) at the time of, and after giving effect to, any such advance made pursuant
to Section 6.17 of the First Lien Credit Agreement and the acquisition of any Intellectual Property by the Borrower or any of its
Subsidiaries shall not be included in the Maximum First Lien Facility Amount; for clarity any Inadvertent Overadvance shall not
be deemed violative of this proviso, plus (d) First Lien Obligations under Bank Product Agreements and Cash Management Services
Agreement, plus (e) any additional principal amount extended pursuant to a DIP Financing permitted pursuant to Section 6.1(a)
hereof, minus (f) the amount of any permanent repayment of the First Lien Obligations made after the date hereof or any
commitment reduction of the First Lien Obligations after the date hereof.

 

“Maximum
Second Lien Facility Amount” shall mean (a) the principal amount of $100,000,000 plus (b) the aggregate principal
amount of Indebtedness that may be incurred under Section 2.14 of the Second Lien Credit Agreement.

 

“Overadvance”
shall mean the principal amount of all Loans under the First Lien Credit Agreement which exceed the sum of the amounts set forth
in clauses (a) and (b) of the definition of “Maximum First Lien Facility Amount”.

 

“Party”
shall mean the First Lien Agent or the Second Lien Agent, and “Parties” shall mean both the First Lien
Agent and the Second Lien Agent.

 

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“Payment
of Maximum First Lien Facility Amount” shall mean (a) the payment in full in cash of the Maximum First Lien Facility
Amount and (b) the termination of all commitments to make Loans of issue Letters of Credit under the First Lien Credit Agreement.
If, at any time prior to or simultaneously with the occurrence of the Payment of Maximum First Lien Facility Amount, the Loan Parties
enter into (x) any refinancing of the First Lien Obligations, which refinancing is permitted under the terms of this Agreement
or (y) DIP Financing provided by one or more of the First Lien Lenders and the First Lien Agent to one or more Loan Parties and
such DIP Financing is entered into in accordance with Section 6.1, then, in each case, Payment of Maximum First Lien Facility Amount
shall automatically be deemed not to have occurred for all purposes of this Agreement.

 

“Payment
of Maximum Second Lien Facility Amount” shall mean the payment in full in cash of the Maximum Second Lien Facility
Amount. If, at any time prior to or simultaneously with the occurrence of the Payment of Maximum Second Lien Facility Amount, the
Loan Parties enter into any refinancing of the Second Lien Obligations, which refinancing is permitted under the terms of this
Agreement, then, in each case, Payment of Maximum Second Lien Facility Amount shall automatically be deemed not to have occurred
for all purposes of this Agreement.

 

“Person”
shall mean an individual, corporation, limited liability company, partnership, limited liability partnership, trust, other unincorporated
association, business, or other legal entity, and any Governmental Authority.

 

“Property”
shall mean any interest in any kind of property or asset, whether real, personal or mixed, or tangible or intangible.

 

“Purchase
Notice” shall have the meaning set forth in Section 7.1.

 

“Remedy
Standstill Period” shall mean the period commencing on the date of the First Lien Agent’s receipt of written
notice from the Second Lien Agent that a Second Lien Event of Default has occurred and is continuing and that the Second Lien Agent
intends to commence the Exercise of Secured Creditor Remedies, and ending on earlier to occur of (i) the date which is 120 days
after receipt of such notice and (ii) the date on which the Payment of Maximum First Lien Facility Amount has occurred. Such written
notice from the Second Lien Agent to the First Lien Agent shall reference this Agreement, and shall declare a “Remedy Standstill
Period” to commence.

 

“Second
Lien Agent” shall have the meaning assigned to that term in the introduction to this Agreement and shall include
any successor thereto as well as any Person designated as the “Agent” under any Second Lien Credit Agreement.

 

“Second
Lien Credit Agreement” shall have the meaning assigned to such term in the recitals to this Agreement and shall include
any other agreement extending the maturity of, consolidating, restructuring, refunding, replacing or refinancing all or any portion
of the Second Lien Obligations in accordance with the terms hereof, whether by the same or any other agent, lender or group of
lenders and whether or not increasing the amount of any Indebtedness that may be incurred thereunder; provided that any
such amendment, modification or refinancing shall be in accordance with the terms and conditions of this Agreement.

 

    	9

    	 

    

 

“Second
Lien Event of Default” shall mean an Event of Default as defined in the Second Lien Credit Agreement.

 

“Second
Lien Guaranty” shall have the meaning assigned to that term in the recitals to this Agreement and shall also include
any further guaranty made by a Guarantor guaranteeing, inter alia, the payment and performance of the Second Lien Obligations.

 

“Second
Lien Lenders” shall have the meaning assigned to that term in the introduction to this Agreement, as well as any
Person designated as a “Lender” under any Second Lien Credit Agreement.

 

“Second
Lien Loan Documents” shall mean the Second Lien Credit Agreement, the Second Lien Guaranty, the Second Lien Security
Documents, those other ancillary agreements as to which any Second Lien Secured Party is a party or a beneficiary and all other
related agreements, instruments, documents and certificates, now or hereafter executed by or on behalf of any Second Lien Loan
Party or any of its respective subsidiaries or Affiliates, and delivered to the Second Lien Agent, in connection with any of the
foregoing or any Second Lien Credit Agreement, in each case as the same may be amended, supplemented, restated or otherwise modified
from time to time in accordance with the terms hereof.

 

“Second
Lien Loan Parties” shall have the meaning assigned to that term in the recitals to this Agreement.

 

“Second
Lien Obligations” shall mean all obligations of every nature of each Second Lien Loan Party from time to time owed
to the Second Lien Secured Parties or any of them, under any Second Lien Loan Document, whether for principal, interest (including
interest which, but for the filing of a petition in bankruptcy with respect to such Second Lien Loan Party, would have accrued
on any Second Lien Obligation), fees, expenses, indemnification or otherwise, and all other amounts owing or due under the terms
of the Second Lien Loan Documents, as amended, restated, modified, renewed, refunded, replaced or refinanced in whole or in part
from time to time.

 

“Second
Lien Prepayment Fee” shall mean any prepayment premium, make-whole obligation, or early termination fee payable pursuant
to the Second Lien Loan Documents.

 

“Second
Lien Recovery” shall have the meaning set forth in Section 5.3(b).

 

“Second
Lien Remedies Exercise Date” shall mean the date following the Remedy Standstill Period and identified in the prior
written notice delivered by the Second Lien Agent to the First Lien Agent as provided in Section 2.3, provided that the
Second Lien Remedies Exercise Date shall not be deemed to have occurred if prior to the expiration of the Remedy Standstill Period
the First Lien Agent is diligently pursuing in good faith the exercise of its enforcement rights and remedies against all or a
material portion of the Collateral or if the Second Lien Event of Default giving rise to the Remedy Standstill Period is no longer
continuing at the time of such Second Lien Remedies Exercise Date.

 

“Second
Lien Secured Parties” shall have the meaning assigned to that term in the introduction to this Agreement.

 

    	10

    	 

    

 

“Second
Lien Security Documents” shall mean all “Security Documents” as defined in the Second Lien Credit Agreement,
and all other security agreements, mortgages, deeds of trust and other security documents executed and delivered in connection
with any Second Lien Credit Agreement, in each case as the same may be amended, supplemented, restated or otherwise modified from
time to time.

 

“Secured
Parties” shall mean the First Lien Secured Parties and the Second Lien Secured Parties.

 

“Swap Contract”
shall have the meaning assigned to that term in the First Lien Credit Agreement.

 

“Triggering
Event” means (a) the acceleration of the First Lien Obligations (other than automatic acceleration as a result of
the commencement of an Insolvency Proceeding), (b) the First Lien Agent’s Exercise of Secured Creditor Remedies with respect
to any material portion of the Collateral, (c) the commencement of an Insolvency Proceeding with respect to any Loan Party (subject
to the limitations set forth in Section 7.1 hereof), (d) any default under Section 8.01(a) of the First Lien Credit Agreement shall
have occurred and shall continue remedied for sixty (60) days or more (other than as a result of the commencement of an Insolvency
Proceeding), (e) the First Lien Lenders cease to make Borrowings (as defined in the First Lien Credit Agreement as in effect on
the date hereof) for ten (10) consecutive Business Days during the continuance of an event of default under the First Lien Credit
Agreement, (f) the First Lien Obligations exceed the Maximum First Lien Facility Amount for ten (10) consecutive Business Days,
or (g) the expiration of the Remedy Standstill Period..

 

“Uniform
Commercial Code” shall mean the Uniform Commercial Code as the same may, from time to time, be in effect in the State
of New York; provided that to the extent that the Uniform Commercial Code is used to define any term in any security document
and such term is defined differently in differing Articles of the Uniform Commercial Code, the definition of such term contained
in Article 9 shall govern; provided, further, that, in the event that, by reason of mandatory provisions of law,
any or all of the attachment, perfection, publication or priority of, or remedies with respect to, Liens of any Party is governed
by the Uniform Commercial Code as enacted and in effect in a jurisdiction other than the State of New York, the term “Uniform
Commercial Code” will mean the Uniform Commercial Code as enacted and in effect in such other jurisdiction solely for purposes
of the provisions thereof relating to such attachment, perfection, priority or remedies and for purposes of definitions related
to such provisions.

 

    	11

    	 

    

 

Section 1.3.           Rules
of Construction. Unless the context of this Agreement clearly requires otherwise, references to the plural include the
singular, references to the singular include the plural, the term “including” is not limiting and shall be deemed
to be followed by the phrase “without limitation,” and the term “or” has, except where otherwise indicated,
the inclusive meaning represented by the phrase “and/or.” The words “hereof,” “herein,” “hereby,”
“hereunder,” and similar terms in this Agreement refer to this Agreement as a whole and not to any particular provision
of this Agreement. Article, section, subsection, clause, schedule and exhibit references herein are to this Agreement unless otherwise
specified. Any reference in this Agreement to any agreement, instrument, or document shall include all alterations, amendments,
changes, restatements, extensions, modifications, renewals, replacements, substitutions, joinders, and supplements thereto and
thereof, as applicable (subject to any restrictions on such alterations, amendments, changes, restatements, extensions, modifications,
renewals, replacements, substitutions, joinders, and supplements set forth herein); provided that any terms used herein
which are defined by reference to the First Lien Credit Agreement or the Second Lien Credit Agreement and are subject to the modification
restrictions set forth in Section 5.2 of this Agreement shall mean such terms as defined in the First Lien Credit Agreement as
of the date hereof or the Second Lien Credit Agreement as of the date hereof, as the case may be, without giving effect to any
modifications or amendments thereto except to the extent that such definitions have been modified or amended in accordance with
this Agreement; and provided further that any such modifications or amendments shall be deemed to be automatically
incorporated herein by reference. Any reference herein to any Person shall be construed to include such Person’s successors
and assigns. Any reference herein to the repayment in full of an obligation shall mean the payment in full in cash of such obligation,
or in such other manner as may be approved in writing by the requisite holders or representatives in respect of such obligation.

 

ARTICLE
2.

LIEN PRIORITY

 

Section
2.1.               Priority of Liens.

 

(a)           Notwithstanding
(i) the date, time, method, manner, or order of grant, attachment, or perfection of any Liens granted to the First Lien Agent or
the First Lien Secured Parties in respect of all or any portion of the Collateral or of any Liens granted to the Second Lien Agent
or the Second Lien Secured Parties in respect of all or any portion of the Collateral and regardless of how any such Lien was acquired
(whether by grant, statute, operation of law, subrogation or otherwise), (ii) the order or time of filing or recordation of any
document or instrument for perfecting the Liens in favor of the First Lien Agent or the Second Lien Agent (or First Lien Secured
Parties or Second Lien Secured Parties) in any Collateral, (iii) any provision of the Uniform Commercial Code, Debtor Relief Laws
or any other applicable law, or of the First Lien Loan Documents or the Second Lien Loan Documents, (iv) whether the First Lien
Agent or the Second Lien Agent, in each case, either directly or through agents, holds possession of, or has control over, all
or any part of the Collateral, (v) the date on which the First Lien Obligations or the Second Lien Obligations are advanced or
made available to the Loan Parties, or (vi) any failure of the First Lien Agent or the Second Lien Agent to perfect its Lien in
the Collateral, the subordination of any Lien on the Collateral securing any First Lien Obligations or Second Lien Obligations,
as applicable, to any Lien securing any other obligation of the Borrower or any Guarantor, or the avoidance, invalidation or lapse
of any Lien on the Collateral securing any First Lien Obligations or Second Lien Obligations, the First Lien Agent, on behalf of
itself and the First Lien Secured Parties, and the Second Lien Agent, on behalf of itself and the Second Lien Secured Parties,
hereby agree that:

 

(1)           any
Lien in respect of all or any portion of the Collateral now or hereafter held by or on behalf of the Second Lien Agent or any Second
Lien Secured Party that secures all or any portion of the Second Lien Obligations shall in all respects be junior and subordinate
to all Liens granted to the First Lien Agent and the First Lien Secured Parties in the Collateral to secure all or any portion
of the First Lien Obligations (other than the Excess First Lien Obligations);

 

    	12

    	 

    

 

(2)           any
Lien in respect of all or any portion of the Collateral now or hereafter held by or on behalf of the First Lien Agent or any First
Lien Secured Party that secures all or any portion of the First Lien Obligations (other than the Excess First Lien Obligations)
shall in all respects be senior and prior to all Liens granted to the Second Lien Agent or any Second Lien Secured Party in the
Collateral to secure all or any portion of the Second Lien Obligations;

 

(3)           any
Lien in respect of all or any portion of the Collateral now or hereafter held by or on behalf of the First Lien Agent or any First
Lien Secured Party that secures all or any portion of the Excess First Lien Obligations shall in all respects be junior and subordinate
to all Liens granted to the Second Lien Agent or any Second Lien Secured Party in the Collateral to secure all or any portion of
the Second Lien Obligations (other than the Excess Second Lien Obligations);

 

(4)           any
Lien in respect of all or any portion of the Collateral now or hereafter held by or on behalf of the Second Lien Agent or any Second
Lien Secured Party that secures all or any portion of the Second Lien Obligations (other than Excess Second Lien Obligations) shall
in all respects be senior and prior to all Liens granted to the First Lien Agent and the First Lien Secured Parties in the Collateral
to secure all or any portion of the Excess First Lien Obligations;

 

(5)           any
Lien in respect of all or any portion of the Collateral now or hereafter held by or on behalf of the First Lien Agent or any First
Lien Secured Party that secures the Excess First Lien Obligations shall in all respects be senior and prior to all Liens granted
to the Second Lien Agent and the Second Lien Secured Parties in the Collateral to secure all or any portion of the Excess Second
Lien Obligations; and

 

(6)           any
Lien in respect of all or any portion of the Collateral now or hereafter held by or on behalf of the Second Lien Agent or any Second
Lien Secured Party that secures the Excess Second Lien Obligations shall in all respects be junior and subordinate to all Liens
granted to the First Lien Agent and the First Lien Secured Parties in the Collateral to secure all or any portion of the Excess
First Lien Obligations.

 

(b)           The
Second Lien Agent, for and on behalf of itself and the Second Lien Secured Parties, acknowledges and agrees that, prior to or concurrently
herewith, the First Lien Agent, for the benefit of itself and the First Lien Secured Parties, has been, or may be, granted Liens
upon all of the Collateral in which the Second Lien Agent has been granted Liens and the Second Lien Agent hereby consents thereto.
The First Lien Agent, for and on behalf of itself and the First Lien Secured Parties, acknowledges and agrees that, concurrently
herewith, the Second Lien Agent, for the benefit of itself and the Second Lien Secured Parties, has been, or may be, granted Liens
upon all of the Collateral in which the First Lien Agent has been granted Liens and the First Lien Agent hereby consents thereto.
The subordination of Liens by the Second Lien Agent and the First Lien Agent in favor of one another as set forth herein shall
not be deemed to subordinate the Second Lien Agent’s Liens or the First Lien Agent’s Liens to the Liens of any other
Person nor be affected by the subordination of such Liens to any other Lien.

 

    	13

    	 

    

 

Section
2.2.               Waiver of Right to Contest Liens.

 

(a)           The
Second Lien Agent, for and on behalf of itself and the Second Lien Secured Parties, agrees that it and they shall not (and hereby
waives any right to) take any action to contest or challenge (or assist or support any other Person in contesting or challenging),
directly or indirectly, whether or not in any proceeding (including in any Insolvency Proceeding), the validity, priority, enforceability,
or perfection of the Liens of the First Lien Agent and the First Lien Secured Parties in respect of the Collateral or the provisions
of this Agreement. The Second Lien Agent, for itself and on behalf of the Second Lien Secured Parties, agrees that none of the
Second Lien Agent or the Second Lien Secured Parties will take any action that would interfere with any Exercise of Secured Creditor
Remedies undertaken by the First Lien Agent or any First Lien Secured Party under the First Lien Loan Documents with respect to
the Collateral. The Second Lien Agent, for itself and on behalf of the Second Lien Secured Parties, hereby waives any and all rights
it or the Second Lien Secured Parties may have as a junior lien creditor or otherwise to contest, protest, object to, or interfere
with the manner in which the First Lien Agent or any First Lien Secured Party seeks to enforce its Liens in any Collateral. The
foregoing shall not be construed to prohibit the Second Lien Agent from enforcing the provisions of this Agreement.

 

(b)           The
First Lien Agent, for and on behalf of itself and the First Lien Secured Parties, agrees that it and they shall not (and hereby
waives any right to) take any action to contest or challenge (or assist or support any other Person in contesting or challenging),
directly or indirectly, whether or not in any proceeding (including in any Insolvency Proceeding), the validity, priority, enforceability,
or perfection of the Liens of the Second Lien Agent or the Second Lien Secured Parties in respect of the Collateral or the provisions
of this Agreement. The First Lien Agent, for itself and on behalf of the First Lien Secured Parties, agrees that none of the First
Lien Agent or the First Lien Secured Parties will take any action that would interfere with any Exercise of Secured Creditor Remedies
undertaken by the Second Lien Agent or any Second Lien Secured Party under the Second Lien Loan Documents with respect to the Collateral,
subject to and in accordance with the terms of this Agreement. The foregoing shall not be construed to prohibit the First Lien
Agent from enforcing the provisions of this Agreement.

 

(c)           Each
of the Second Lien Agent, each Second Lien Secured Party, the First Lien Agent and each First Lien Secured Party agrees (i) that
it will not institute any suit or other proceeding or assert in any suit, Insolvency Proceeding or other proceeding any claim,
in the case of the Second Lien Agent and each Second Lien Secured Party, against either the First Lien Agent or any other First
Lien Secured Party, and in the case of the First Lien Agent and each other First Lien Secured Party, against either the Second
Lien Agent or any other Second Lien Secured Party, seeking damages from or other relief by way of specific performance, instructions
or otherwise, with respect to, any action taken or omitted to be taken by such Person with respect to the Collateral which is consistent
with the terms of this Agreement, and none of such Parties shall be liable for any such action taken or omitted to be taken, or
(ii) it will not be a petitioning creditor or otherwise assist in the filing of an involuntary Insolvency Proceeding.

 

    	14

    	 

    

 

(d)           Notwithstanding
anything to the contrary herein contained, none of the Parties hereto waives any claim that it may have against a Secured Party
on the grounds that any sale, transfer or other disposition by the Secured Party was not commercially reasonable in every respect
as required by the Uniform Commercial Code.

 

Section
2.3.               Remedies Standstill.

 

(a)           Following
the occurrence of any Second Lien Event of Default and until the expiration of the Remedy Standstill Period, the Second Lien Agent
may not commence or continue the Exercise of Any Secured Creditor Remedies in respect of the Collateral. On or after the Second
Lien Remedies Exercise Date, upon ten (10) Business Days prior written notice to the First Lien Agent, the Second Lien Agent may
take, for the benefit of the Second Lien Secured Parties, one or more of the following actions at the same or different times in
respect of the Second Lien Event of Default that was the subject of the notice giving rise to such Remedy Standstill Period:

 

(1)           the
Exercise of Any Secured Creditor Remedies (including, without limitation, foreclosure upon and taking possession of the Collateral);
and

 

(2)           exercise
any and all other remedies under the Second Lien Loan Documents and applicable law available to the Second Lien Secured Parties
with respect to the Collateral.

 

(b)           All
Proceeds of the Collateral received by the Second Lien Agent shall be turned over to the First Lien Agent for prompt application
in accordance with Section 4.1(a) hereof. This Section 2.3 shall not be construed to in any way limit or impair the rights of the
Second Lien Agent to join (but not control or object to in any way) any foreclosure or other Exercise of Secured Creditor Remedies
with respect to the Collateral initiated by the First Lien Agent, so long as it does not delay or interfere in any material respect
with the exercise by the First Lien Secured Parties of their respective rights as provided in this Agreement.

 

    	15

    	 

    

 

(c)           Nothing
contained herein shall impair the Second Lien Agent’s or any Second Lien Secured Party’s rights (i) to exercise any
remedies against any of the Loan Parties (other than any remedies against any the Collateral) pursuant to the Second Lien Loan
Documents; (ii) to accelerate any of the Second Lien Obligations; (iii) to make demand upon any Loan Party or any other Person
liable on the Second Lien Obligations; (iv) to institute a lawsuit to collect its debt; provided, however, that in
the event that the Second Lien Agent or any Second Lien Secured Party becomes a judgment Lien creditor in respect of the Collateral
as a result of its enforcement of its rights as an unsecured creditor with respect to the Second Lien Obligations, such judgment
Lien shall be subject to the terms of this Agreement for all purposes as the other Liens securing the Second Lien Obligations are
subject to this Agreement; (v) to exercise any of its rights or remedies with respect to the Collateral as and when permitted by
Section 2.3(a), (vi) to file a claim or statement of interest with respect to the Second Lien Obligations; (vii) to take any action
(not adverse to the priority and perfection status of, and validity and value of, the Liens of the First Lien Agent, or the rights
of the First Lien Agent to exercise remedies in respect thereof) in order to create, perfect, preserve or protect its Lien on the
Collateral subject to the other terms of this Agreement; (viii) to file any necessary responsive or defensive pleadings in opposition
to any motion, claim, adversary proceeding or other pleading made by any Person objecting to or otherwise seeking the disallowance
of the claims of the Second Lien Secured Parties, including, without limitation, any claims secured by the Collateral, if any,
in each case not otherwise in contravention of the terms of this Agreement; (ix) to exercise any rights or remedies available to
unsecured creditors or file any pleadings, objections, motions, or agreements which assert rights or interests available to unsecured
creditors arising under the Second Lien Loan Documents, any Insolvency Proceeding or applicable non-bankruptcy law, in each case,
not otherwise prohibited in its capacity of a secured creditor or in any other capacity by the terms of this Agreement; (x) to
bid for or purchase any Collateral at any public, private or judicial foreclosure upon such Collateral initiated by the First Lien
Agent or any sale of any Collateral during an Insolvency Proceeding; provided that such bid may not include a "credit
bid" unless the cash proceeds of such bid paid on the closing date of the purchase are otherwise sufficient to cause the Discharge
of First Lien Obligations; or (xi) to vote on any plan of reorganization, arrangement or compromise or any proposal, file any proof
of claim, make other filings and make any arguments and motions in any Insolvency Proceeding that are, in each case, not otherwise
prohibited by the terms of this Agreement.

 

(d)           Nothing
contained herein shall impair the First Lien Agent’s or any First Lien Secured Party’s rights (i) to exercise any remedies
against any of the Loan Parties or the Collateral pursuant to the First Lien Loan Documents; (ii) to accelerate any of the First
Lien Obligations; (iii) to make demand upon any Loan Party or any other Person liable on the First Lien Obligations; (iv) to institute
a lawsuit to collect its debt; (v) to file a claim or statement of interest with respect to the First Lien Obligations; (vi) to
take any action (not adverse to the perfection status of, and validity and value of, the Liens of the Second Lien Agent, or the
rights of the Second Lien Agent to exercise remedies in respect thereof) in order to create, perfect, preserve or protect its Lien
on the Collateral subject to the other terms of this Agreement; (vii) to file any necessary responsive or defensive pleadings in
opposition to any motion, claim, adversary proceeding or other pleading made by any Person objecting to or otherwise seeking the
disallowance of the claims of the First Lien Secured Parties, including, without limitation, any claims secured by the Collateral,
if any, in each case not otherwise in contravention of the terms of this Agreement; (viii) to exercise any rights or remedies available
to unsecured creditors or file any pleadings, objections, motions, or agreements which assert rights or interests available to
unsecured creditors arising under the First Lien Loan Documents, any Insolvency Proceeding or applicable non-bankruptcy law, in
each case, not otherwise prohibited in its capacity of a secured creditor or in any other capacity by the terms of this Agreement;
and (ix) to vote on any plan of reorganization, arrangement or compromise or any proposal, file any proof of claim, make other
filings and make any arguments and motions in any Insolvency Proceeding that are, in each case, not otherwise prohibited by the
terms of this Agreement.

 

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Section
2.4.               Release of Liens.

 

In the event of (A) any private or public
sale of all or any portion of the Collateral in connection with any Exercise of Secured Creditor Remedies by the First Lien Agent
or with the consent of the First Lien Agent after the occurrence and during the continuance of a First Lien Event of Default, or
(B) any sale, transfer or other disposition of all or any portion of the Collateral (other than in connection with a refinancing
as described in Section 5.2(c)), so long as such sale, transfer or other disposition is then permitted by the First Lien Loan Documents
and the Second Lien Loan Documents or consented to by the requisite First Lien Lenders and the requisite Second Lien Lenders, the
Second Lien Agent agrees, on behalf of itself and the Second Lien Lenders that such sale, transfer or other disposition will be
free and clear of the Liens on such Collateral securing the Second Lien Obligations, and the Second Lien Agent’s and the
Second Lien Secured Parties’ Liens with respect to the Collateral so sold, transferred, or disposed shall terminate and be
automatically released without further action concurrently with, and to the same extent as, the release of the First Lien Secured
Parties’ Liens on such Collateral; provided that, for the avoidance of doubt, the Second Lien Secured Parties’
Liens in respect of the Proceeds of such Collateral so sold, transferred, or disposed shall continue to exist to the same extent,
and with the same relative priorities, as the First Lien Secured Parties’ Liens on such Proceeds; and provided, further,
that to the extent Proceeds are required to repay obligations, such Proceeds shall be applied in accordance with Section 4.1(a).
In furtherance of, and subject to, the foregoing, the Second Lien Agent agrees that it will promptly execute any and all Lien releases
or other documents reasonably requested by the First Lien Agent in connection therewith. The Second Lien Agent hereby appoints
the First Lien Agent and any officer or duly authorized person of the First Lien Agent, with full power of substitution, as its
true and lawful attorney-in-fact with full irrevocable power of attorney to be exercised if the Second Lien Agent does not take
such action within ten (10) Business Days after written notice, in the place and stead of the Second Lien Agent and in the name
of the Second Lien Agent or in the First Lien Agent’s own name, from time to time, in the First Lien Agent’s sole discretion,
for the purposes of carrying out the terms of this paragraph, to take any and all appropriate action and to execute and deliver
any and all documents and instruments as may be necessary or desirable to accomplish the purposes of this paragraph, including
any financing statements, endorsements, assignments, releases or other documents or instruments of transfer (which appointment,
being coupled with an interest, is irrevocable).

 

Section 2.5.               No
New Liens. (a) Until the date upon which the Discharge of First Lien Obligations
shall have occurred, the parties hereto agree that no Second Lien Secured Party shall acquire or hold any Lien (other than any
judgment lien as set forth in Section 2.3(c) above) on any assets of any Loan Party securing any Second Lien Obligation which
assets are not also subject to the Lien of the First Lien Agent under the First Lien Loan Documents. If any Second Lien Secured
Party shall (nonetheless and in breach hereof) acquire or hold any Lien on any assets of any Loan Party securing any Second Lien
Obligation which assets are not also subject to the Lien of the First Lien Agent under the First Lien Loan Documents, then the
Second Lien Agent (or the relevant Second Lien Secured Party) shall, without the need for any further consent of any other Second
Lien Secured Party, the Borrower or any Guarantor and notwithstanding anything to the contrary in any other Second Lien Loan Document,
be deemed to also hold and have held such Lien as agent or bailee for the benefit of the First Lien Agent as security for the
First Lien Obligations (subject to the Lien Priority and other terms hereof) and shall promptly notify the First Lien Agent in
writing of the existence of such Lien.

 

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(b)           Until
the date upon which the Discharge of Second Lien Obligations shall have occurred, the parties hereto agree that no First Lien Secured
Party shall acquire or hold any Lien (other than any judgment lien as set forth in Section 2.3(c) above) on any assets of any Loan
Party securing any First Lien Obligation which assets are not also subject to the Lien of the Second Lien Agent under the Second
Lien Loan Documents. If any First Lien Secured Party shall (nonetheless and in breach hereof) acquire or hold any Lien on any assets
of any Loan Party securing any First Lien Obligation which assets are not also subject to the Lien of the Second Lien Agent under
the Second Lien Loan Documents, then the First Lien Agent (or the relevant First Lien Secured Party) shall, without the need for
any further consent of any other First Lien Secured Party, the Borrower or any Guarantor and notwithstanding anything to the contrary
in any other First Lien Loan Document be deemed to also hold and have held such Lien as agent or bailee for the benefit of the
Second Lien Agent as security for the Second Lien Obligations (subject to the Lien Priority and other terms hereof) and shall promptly
notify the Second Lien Agent in writing of the existence of such Lien.

 

Section
2.6.               Waiver of Marshalling.

 

Until the Discharge of First Lien Obligations,
the Second Lien Agent, on behalf of itself and the Second Lien Secured Parties, agrees not to assert and hereby waives, to the
fullest extent permitted by law, any right to demand, request, plead or otherwise assert or otherwise claim the benefit of, any
marshalling, appraisal, valuation or other similar right that may otherwise be available under applicable law with respect to the
Collateral or any other similar rights a junior secured creditor may have under applicable law.

 

ARTICLE
3.

ACTIONS OF THE PARTIES

 

Section 3.1.               Certain
Actions Permitted. The Second Lien Agent and the First Lien Agent may make such demands or file such claims in respect
of the Second Lien Obligations or the First Lien Obligations, as applicable, as are necessary to prevent the waiver or bar of
such claims under applicable statutes of limitations or other statutes, court orders, or rules of procedure at any time. Nothing
in this Agreement shall prohibit the receipt by the Second Lien Agent or any Second Lien Secured Party of the payments of interest,
principal and other amounts owed in respect of the Second Lien Obligations so long as such receipt is not the direct or indirect
result of (a) the Exercise of any Secured Creditor Remedies or any other exercise by the Second Lien Agent or any Second Lien
Secured Party of rights or remedies as a secured creditor (including set-off) with respect to the Collateral, (b) the enforcement
of any Lien held by the Second Lien Agent or any Second Lien Secured Party in contravention of this Agreement or (c) the violation
of the limitations set forth in the First Lien Credit Agreement as in effect on the date hereof. Nothing in this Agreement shall
prohibit the receipt by the First Lien Agent or any First Lien Secured Party of the payments of interest, principal and other
amounts owed in respect of the First Lien Obligations.

 

Section 3.2.               Agent
for Perfection. The First Lien Agent, for and on behalf of itself and each First Lien Secured Party, acknowledges and
agrees to hold all Control Collateral in its possession, custody, or control (or in the possession, custody, or control of agents
or bailees for the First Lien Agent) as agent for the benefit of, and on behalf of, the Second Lien Agent and the Second Lien
Secured Parties solely for the purpose of perfecting the security interest granted to the Second Lien Agent in such Collateral,
subject to the terms and conditions of this Section 3.2. None of the First Lien Agent or the First Lien Secured Parties shall
have any obligation whatsoever to the Second Lien Agent or the Second Lien Secured Parties to assure that the Collateral is genuine
or owned by the Borrower, any Guarantor, or any other Person or to preserve rights or benefits of any Person. The duties or responsibilities
of the First Lien Agent under this Section 3.2 are and shall be limited solely to holding or maintaining control of the Control
Collateral as agent for the Second Lien Agent for purposes of perfecting the Lien held by the Second Lien Agent. The First Lien
Agent is not and shall not be deemed to be a fiduciary of any kind for the Second Lien Secured Parties or any other Person.

 

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Section 3.3.               Sharing
of Information and Access; Notices of Default.

 

(a)           In
the event that the First Lien Agent shall, in the exercise of its rights under the First Lien Security Documents or otherwise,
receive possession or control of any books and records of any Loan Party which contain information identifying or pertaining to
the Collateral, the First Lien Agent shall, upon request from the Second Lien Agent and as promptly as practicable thereafter,
either make available to the Second Lien Agent such books and records for inspection and duplication or provide to the Second Lien
Agent copies thereof. In the event that the Second Lien Agent shall, in the exercise of its rights under the Second Lien Security
Documents or otherwise, receive possession or control of any books and records of any Loan Party which contain information identifying
or pertaining to any of the Collateral, the Second Lien Agent shall, upon request from the First Lien Agent and as promptly as
practicable thereafter, either make available to the First Lien Agent such books and records for inspection and duplication or
provide the First Lien Agent copies thereof.

 

(b)           Each
Agent shall give to the other Agent concurrently with the giving thereof to any Loan Party (a) a copy of any written notice by
such Agent of an First Lien Event of Default or a Second Lien Event of Default, as the case may be, or a written notice of demand
for payment from any Loan Party and (b) a copy of any written notice sent by such Agent to any Loan Party stating such Agent’s
intention to Exercise of any Secured Creditors’ Remedies or to exercise any other material enforcement rights or remedies
against such Loan Party, including written notice pertaining to any foreclosure on all or any material part of its Liens or other
judicial or non-judicial remedy in respect thereof, and any legal process served or filed in connection therewith; provided
that the failure of any Agent to give such required notice shall not result in any liability to such Agent or affect the enforceability
of any provision of this Agreement, including the relative priorities of the Liens of the Agents and Secured Parties as provided
herein, and shall not affect the validity or effectiveness of any such notice as against any Loan Party or of any action taken
pursuant to such notice or in relation to the events giving rise thereto; provided, further, that the foregoing shall
not in any way impair any claims that any Agent may have against the other Agent as a result of any failure of such Agent to provide
any notice in connection with a foreclosure against the Collateral by such Agent as required under applicable law.

 

(c)           Upon
the written request of the Second Lien Agent, the First Lien Agent shall promptly provide to the Second Lien Agent copies of all
collateral reports, appraisals and results of field examinations that it receives. Prior to the Payment of Maximum First Lien Facility
Amount, the First Lien Agent agrees that in the event it does not arrange for at least one appraisal of the trade names and brands
and other Intellectual Property of the Loan Parties during any twelve-month period, the Second Lien Agent shall have the right
to direct the First Lien Agent in writing to engage Hilco Appraisal Services or other appraisers reasonably acceptable to the First
Lien Agent and the Second Lien Agent to conduct such appraisal, and the First Lien Agent agrees to promptly commence such engagement;
provided that to the extent the First Lien Agent does not engage an appraiser to conduct such appraisal, the Second Lien
Agent may engage an appraiser on behalf of the First Lien Agent. In addition, in the event that the Second Lien Agent requires
a second appraisal of the trade names and brands and other Intellectual Property of the Loan Parties during any such twelve-month
period, the Second Lien Agent shall have the right to direct the First Lien Agent in writing to engage Hilco Appraisal Services
or other appraisers reasonably acceptable to the First Lien Agent and the Second Lien Agent to conduct such appraisal, and the
First Lien Agent agrees to promptly commence such engagement. The parties hereby acknowledge that the First Lien Agent’s
obligations under this Section 3.3(c) are subject to the Loan Parties’ compliance with their respective obligations under
the First Lien Credit Agreement (including as to cooperation with the First Lien Agent) with respect to such appraisals and examinations.

 

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Section 3.4.               Insurance.
Proceeds of Collateral include insurance proceeds and, therefore, the Lien Priority shall govern the ultimate disposition of casualty
insurance proceeds. The First Lien Agent and the Second Lien Agent shall each be named as additional insured or loss payee, as
applicable, with respect to all insurance policies relating to the Collateral. Prior to the Payment of Maximum First Lien Facility
Amount, the First Lien Agent shall have the sole and exclusive right, as against the Second Lien Agent, to adjust settlement of
insurance claims with respect to the Collateral in a commercially reasonable manner. After the Payment of Maximum First Lien Facility
Amount but prior to the Payment of Maximum Second Lien Facility Amount, the Second Lien Agent shall have the sole and exclusive
right, as against the First Lien Agent, to adjust settlement of insurance claims with respect to the Collateral in a commercially
reasonable manner. After the Payment of Maximum Second Lien Facility Amount, the First Lien Agent shall have the sole and exclusive
right, as against the Second Lien Agent, to adjust settlement of insurance claims with respect to the Collateral in a commercially
reasonable manner. Upon the receipt of any proceeds of insurance by the First Lien Agent or the Second Lien Agent, such proceeds
shall be remitted to the First Lien Agent and applied as set forth in Section 4.1(a) hereof. The Second Lien Agent hereby appoints
the First Lien Agent and any officer or duly authorized person of the First Lien Agent, with full power of substitution, as its
true and lawful attorney-in-fact with full irrevocable power of attorney to make any endorsements as agent for the Second Lien
Agent or any such other Second Lien Secured Parties; provided that such appointment shall be exercised only if the Second Lien
Agent does not make such endorsement within ten (10) Business Days after written notice.

 

Section 3.5.               No
Additional Rights For the Loan Parties Hereunder. If any First Lien Secured Party or Second Lien Secured Party shall enforce
its rights or remedies in violation of the terms of this Agreement, the Loan Parties shall not be entitled to use such violation
as a defense to any action by any First Lien Secured Party or Second Lien Secured Party, nor to assert such violation as a counterclaim
or basis for set off or recoupment against any First Lien Secured Party or Second Lien Secured Party.

 

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Section
3.6.               Payments Over.

 

So long as the Discharge of First Lien Obligations
has not occurred, any Collateral or Proceeds thereof received by the Second Lien Agent or any Second Lien Secured Parties in connection
with the Exercise of Secured Creditor Remedies or any other exercise of any right or remedy (including set off) relating to the
Collateral shall be segregated and held in trust and forthwith paid over to the First Lien Agent in the same form as received,
with any necessary endorsements for application in accordance with the provisions of Section 4.1 hereof or as a court of competent
jurisdiction may otherwise direct; provided that after Payment of Maximum First Lien Facility Amount, the Second Lien Agent
may retain such Proceeds for application to the Maximum Second Lien Facility Amount until Payment of Maximum Second Lien Facility
Amount has occurred. The Second Lien Agent hereby appoints the First Lien Agent and any officer or duly authorized person of the
First Lien Agent, with full power of substitution, as its true and lawful attorney-in-fact with full irrevocable power of attorney
to make any endorsements as agent for the Second Lien Agent or any such other Second Lien Secured Parties; provided that such appointment
shall be exercised only if the Second Lien Agent does not make such endorsement within ten (10) Business Days after written notice.

 

Section 3.7.               Revolving
Nature of Certain First Lien Obligations. The Second Lien Agent, for and on behalf of itself
and the Second Lien Secured Parties, expressly acknowledges and agrees that (i) the First Lien Credit Agreement includes a revolving
commitment, that in the ordinary course of business the First Lien Agent and the First Lien Lenders will apply payments and make
advances thereunder, and that no application of any Collateral or the release of any Lien by the First Lien Agent upon any portion
of the Collateral in connection with a permitted disposition by the Loan Parties under the First Lien Credit Agreement shall constitute
the Exercise of Secured Creditor Remedies under this Agreement; (ii) the amount of the First Lien Obligations that may be outstanding
at any time or from time to time may be increased or reduced and subsequently reborrowed, and that the terms of the First Lien
Obligations may be modified, extended or amended from time to time, and that the aggregate amount of the First Lien Obligations
may be increased, replaced or refinanced, in each event, without notice to or consent by the Second Lien Secured Parties and without
affecting the provisions hereof; and (iii) all Collateral received by the First Lien Agent may be applied, reversed, reapplied
or credited, in whole or in part, to the First Lien Obligations at any time. The Lien Priority shall not be altered or otherwise
affected by any such amendment, modification, supplement, extension, repayment, reborrowing, increase, replacement, renewal, restatement
or refinancing of either the First Lien Obligations or the Second Lien Obligations, or any portion thereof. 

 

Section 3.8.               Legends.
The First Lien Agent acknowledges with respect to the First Lien Security Documents, on the one hand, and the Second Lien Agent
acknowledges with respect to the Second Lien Security Documents, on the other hand, that such documents will contain the following
legend:

 

Intercreditor Agreement.
Notwithstanding anything herein to the contrary, the security interest granted to the Agent, for the benefit of the Loan Parties,
herein and the exercise of any right or remedy by the Agent hereunder are subject to the provisions of the Intercreditor Agreement.
In the event of any conflict between the terms of the Intercreditor Agreement and this Agreement, the terms of the Intercreditor
Agreement shall govern and control.

 

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ARTICLE
4.

APPLICATION OF PROCEEDS

 

Section
4.1.               Application of Proceeds.

 

The First Lien Agent
and the Second Lien Agent hereby agree that all Collateral and all Proceeds thereof received by either of them (i) in connection
with any Exercise of Secured Creditor Remedies with respect to the Collateral, (ii) in connection with the exercise of any right
or remedy (including set off) relating to the Collateral, or (iii) following the commencement of any Insolvency Proceeding, in
each case, shall be applied,

 

first,
to the payment of reasonable costs and expenses of the First Lien Agent,

 

second,
to the payment of the First Lien Obligations (other than the Excess First Lien Obligations) in accordance with the First Lien Loan
Documents until the Discharge of First Lien Obligations (other than the Excess First Lien Obligations) shall have occurred;

 

third,
to the payment of the Second Lien Obligations (other than the Excess Second Lien Obligations) in accordance with the Second Lien
Loan Documents until the Discharge of Second Lien Obligations (other than the Excess Second Lien Obligations) shall have occurred,

 

fourth,
to the payment of the Excess First Lien Obligations in accordance with the First Lien Loan Documents until the Discharge of First
Lien Obligations shall have occurred,

 

fifth,
to the payment of the Excess Second Lien Obligations in accordance with the Second Lien Loan Documents until the Discharge of Second
Lien Obligations shall have occurred, and

 

sixth,
the balance, if any, to the Loan Parties or as a court of competent jurisdiction may direct.

 

Section 4.2.               Turnover
of Collateral After Discharge. Upon the Payment of Maximum First Lien Facility Amount,
the First Lien Agent shall deliver to the Second Lien Agent or shall execute such documents as the Second Lien Agent may reasonably
request (at the expense of the Borrower) to enable the Second Lien Agent to have control over any Control Collateral still in
the First Lien Agent’s possession, custody, or control in the same form as received with any necessary endorsements, or
as a court of competent jurisdiction may otherwise direct. Thereafter, upon the Payment of Maximum Second Lien Facility Amount,
the Second Lien Agent shall deliver to the First Lien Agent or shall execute such documents as the First Lien Agent may reasonably
request (at the expense of the Borrower) to enable the First Lien Agent to have control over any Control Collateral still in the
Second Lien Agent’s possession, custody, or control in the same form as received with any necessary endorsements, or as
a court of competent jurisdiction may otherwise direct.

 

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Section 4.3.               Limited
Obligation or Liability. In exercising remedies, whether as a secured creditor or otherwise,
the First Lien Agent shall have no obligation or liability to the Second Lien Agent or to any Second Lien Secured Party regarding
the adequacy of any Proceeds or for any action or omission, except solely for an action or omission that breaches the express
obligations undertaken by the First Lien Agent under the terms of this Agreement. Notwithstanding anything to the contrary herein
contained, none of the Parties hereto waives any claim that it may have against a Secured Party on the grounds that any sale,
transfer or other disposition by the Secured Party was not commercially reasonable in every respect as required by the Uniform
Commercial Code.

 

Section 4.4.              Specific
Performance. Each of the First Lien Agent and the Second Lien Agent is hereby authorized to demand specific performance
of this Agreement, whether or not the Borrower or any Guarantor shall have complied with any of the provisions of any of the Loan
Documents, at any time when the other Party shall have failed to comply with any of the provisions of this Agreement applicable
to it. Each of the First Lien Agent, for and on behalf of itself and the First Lien Secured Parties, and the Second Lien Agent,
for and on behalf of itself and the Second Lien Secured Parties, hereby irrevocably waives any defense based on the adequacy of
a remedy at law that might be asserted as a bar to such remedy of specific performance.

 

ARTICLE 5.

INTERCREDITOR ACKNOWLEDGEMENTS
AND WAIVERS

 

Section 5.1.               Notice
of Acceptance and Other Waivers.

 

(a)           All
First Lien Obligations at any time made or incurred by the Borrower or any Guarantor shall be deemed to have been made or incurred
in reliance upon this Agreement, and the Second Lien Agent, on behalf of itself and the Second Lien Secured Parties, hereby waives
notice of acceptance, or proof of reliance by the First Lien Agent or any First Lien Secured Party of this Agreement, and notice
of the existence, increase, renewal, extension, accrual, creation, or non-payment of all or any part of the First Lien Obligations.
All Second Lien Obligations at any time made or incurred by the Borrower or any Guarantor shall be deemed to have been made or
incurred in reliance upon this Agreement, and the First Lien Agent, on behalf of itself and the First Lien Secured Parties, hereby
waives notice of acceptance, or proof of reliance, by the Second Lien Agent or any Second Lien Secured Party of this Agreement,
and notice of the existence, increase, renewal, extension, accrual, creation, or non-payment of all or any part of the Second Lien
Obligations.

 

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(b)           None
of the First Lien Agent, any First Lien Secured Party, or any of their respective Affiliates, directors, officers, employees, or
agents shall be liable for failure to demand, collect, or realize upon any of the Collateral or any Proceeds, or for any delay
in doing so, or shall be under any obligation to sell or otherwise dispose of any Collateral or Proceeds thereof or to take any
other action whatsoever with regard to the Collateral or any part or Proceeds thereof, except as specifically provided in this
Agreement. If the First Lien Agent or any First Lien Secured Party otherwise should exercise any of its contractual rights or remedies
under any First Lien Loan Documents (subject to the terms and conditions hereof), neither the First Lien Agent nor any First Lien
Secured Party shall have any liability whatsoever to the Second Lien Agent or any Second Lien Secured Party as a result of such
action, omission, or exercise (so long as any such exercise does not breach the terms and provisions of this Agreement). The First
Lien Agent and the First Lien Secured Parties shall be entitled to manage and supervise their loans under any First Lien Credit
Agreement and any of the other First Lien Loan Documents as they may, in their sole discretion, deem appropriate, and may manage
their loans without regard to any rights or interests that the Second Lien Agent or any of the Second Lien Secured Parties have
in the Collateral, except as otherwise expressly set forth in this Agreement. Subject to Section 4.1(b), the Second Lien Agent,
on behalf of itself and the Second Lien Secured Parties, agrees that neither the First Lien Agent nor any First Lien Secured Party
shall incur any liability as a result of a sale, lease, license, application, or other disposition of all or any portion of the
Collateral or Proceeds thereof, pursuant to the First Lien Loan Documents, so long as such disposition is conducted in accordance
with applicable law and does not breach the provisions of this Agreement.

 

Section 5.2.               Modifications
to First Lien Documents and Second Lien Documents.

 

(a)           The
First Lien Agent and the First Lien Secured Parties may at any time and from time to time and without the consent of or notice
to the Second Lien Agent or any Second Lien Secured Party, without incurring any liability to the Second Lien Agent or any Second
Lien Secured Party and without impairing or releasing any rights or obligations hereunder or otherwise, amend, restate, supplement,
modify, waive, substitute, renew, refinance, or replace any or all of the First Lien Loan Documents; provided, however,
that without the consent of the Second Lien Agent, the First Lien Secured Parties shall not amend, restate, supplement, modify,
waive, substitute, renew, refinance or replace any or all of the First Lien Loan Documents to:

 

(1)           increase
the sum of the then outstanding aggregate principal amount of the loans made under the First Lien Credit Agreement in excess of
the amount of the Maximum First Lien Facility Amount;

 

(2)           increase
the rates of interest set forth in the definition of “Applicable Margin” as defined in the First Lien Credit Agreement
by more than 2.00% per annum at any level of the pricing grid applicable thereto (other than any increase occurring because of
fluctuations in underlying rate indices or the imposition of the Default Rate), or increase the Default Rate by more than 2.00%
per annum above the rate applicable thereto (other than any increase occurring because of fluctuations in underlying rate indices);

 

(3)           shorten
the scheduled maturity of the First Lien Obligations;

 

(4)           require
any mandatory prepayments or scheduled repayments of the First Lien Obligations except as provided in the First Lien Loan Documents
as in effect on the date hereof or, other than a result of the occurrence of an Event of Default under the First Lien Loan Documents,
require that any payment on the First Lien Obligations be made earlier than the date originally scheduled for such payment;

 

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(5)           change
any conditions, covenants, defaults or events of default thereunder that expressly restricts any Loan Party from making payments
of the Second Lien Obligations that would otherwise be permitted under the First Lien Credit Agreement as in effect on the date
hereof; or

 

(6)           make
any other amendment or modification in contravention of this Agreement

 

(b)           The
Second Lien Agent and the Second Lien Secured Parties may at any time and from time to time and without consent of or notice to
the First Lien Secured Parties, without incurring any liability to the First Lien Secured Parties and without impairing or releasing
any rights or obligations hereunder or otherwise, amend, restate, supplement, modify, waive, substitute, renew, refinance or replace
any or all of the Second Lien Loan Documents; provided, however, that without the consent of the First Lien Agent,
the Second Lien Agent and the Second Lien Secured Parties shall not amend, restate, supplement, modify, waive, substitute, renew,
refinance or replace any or all of the Second Lien Loan Documents to:

 

(1)           increase
the aggregate outstanding principal amount of the Second Lien Obligations in excess of the amount of the Maximum Second Lien Facility
Amount;

 

(2)           increase
the rate of interest set forth in Section 2.05 of the Second Lien Credit Agreement by more than 2.00% per annum (other than any
increase occurring because of fluctuations in underlying rate indices or the imposition of the Default Rate) or increase the percentage
with respect to the Default Rate by more than 2.00% per annum above the rate applicable thereto on the date hereof;

 

(3)           shorten
the scheduled maturity of the Second Lien Obligations;

 

(4)           require
any mandatory prepayments or scheduled repayments of the Second Lien Obligations except as provided in the Second Lien Loan Documents
as in effect on the date hereof or require that any payment on the Second Lien Obligations be made earlier than the date originally
scheduled for such payment;

 

(5)           change
any conditions, covenants, defaults or events of default thereunder that expressly restricts any Loan Party from making payments
of the First Lien Obligations that would otherwise be permitted under the Second Lien Loan Documents as in effect on the date hereof;
or

 

(6)           make
any other amendment or modification in contravention of this Agreement.

 

(c)           Subject
to Sections 5.2(a) and (b) above, the First Lien Obligations and the Second Lien Obligations may be refinanced, in whole or in
part, in each case, without notice to, or the consent (except to the extent a consent is required to permit the refinancing transaction
under any First Lien Loan Document or any Second Lien Loan Document) of the First Lien Agent, the First Lien Secured Parties, the
Second Lien Agent or the Second Lien Secured Parties, as the case may be, all without affecting the Lien Priority provided for
herein or the other provisions hereof, provided, however, that the holders of such refinancing indebtedness (or an
authorized agent or trustee on their behalf) bind themselves in writing to the terms of this Agreement pursuant to such documents
or agreements (including amendments or supplements to this Agreement) as the First Lien Agent or the Second Lien Agent, as the
case may be, shall reasonably request and in form and substance reasonably acceptable to the First Lien Agent or the Second Lien
Agent, as the case may be, and any such refinancing transaction shall be in accordance with any applicable provisions of both the
First Lien Loan Documents and the Second Lien Loan Documents (to the extent such documents survive the refinancing).

 

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Section 5.3.               Reinstatement
and Continuation of Agreement.

 

(a)           If
the First Lien Agent or any First Lien Secured Party is required in any Insolvency Proceeding or otherwise to turn over or otherwise
pay to the estate of the Borrower, any Guarantor, or any other Person any payment made in satisfaction of all or any portion of
the First Lien Obligations (a “First Lien Recovery”), then the First Lien Obligations shall be reinstated
to the extent of such First Lien Recovery. If this Agreement shall have been terminated prior to such First Lien Recovery, this
Agreement shall be reinstated in full force and effect in the event of such First Lien Recovery, and such prior termination shall
not diminish, release, discharge, impair, or otherwise affect the obligations of the Parties from such date of reinstatement, but
such reinstatement shall not impose an obligation on the Second Lien Agent or Second Lien Secured Parties to disgorge payments
received by the Second Lien Agent prior to such reinstatement, including from the Proceeds of Collateral, in accordance with the
terms of Section 4.1 hereof. All rights, interests, agreements, and obligations of the First Lien Agent, the Second Lien Agent,
the First Lien Secured Parties, and the Second Lien Secured Parties under this Agreement shall remain in full force and effect
and shall continue irrespective of the commencement of, or any discharge, confirmation, conversion, or dismissal of, any Insolvency
Proceeding by or against the Borrower or any Guarantor or any other circumstance which otherwise might constitute a defense available
to, or a discharge of the Borrower or any Guarantor in respect of the First Lien Obligations or the Second Lien Obligations. No
priority or right of the First Lien Agent or any First Lien Secured Party shall at any time be prejudiced or impaired in any way
by any act or failure to act on the part of the Borrower or any Guarantor or by the noncompliance by any Person with the terms,
provisions, or covenants of any of the First Lien Loan Documents, regardless of any knowledge thereof which the First Lien Agent
or any First Lien Secured Party may have.

 

(b)           If
the Second Lien Agent or any Second Lien Secured Party is required in any Insolvency Proceeding or otherwise to turn over or otherwise
pay to the estate of the Borrower, any Guarantor, or any other Person any payment made in satisfaction of all or any portion of
the Second Lien Obligations (a “Second Lien Recovery”), then the Second Lien Obligations shall be reinstated
to the extent of such Second Lien Recovery. If this Agreement shall have been terminated prior to such Second Lien Recovery, this
Agreement shall be reinstated in full force and effect in the event of such Second Lien Recovery, and such prior termination shall
not diminish, release, discharge, impair, or otherwise affect the obligations of the Parties from such date of reinstatement, but
such reinstatement shall not impose an obligation on the First Lien Agent or First Lien Secured Parties to disgorge payments received
by the First Lien Agent prior to such reinstatement, including from the Proceeds of Collateral, in accordance with the terms of
Section 4.1 hereof. All rights, interests, agreements, and obligations of the First Lien Agent, the Second Lien Agent, the First
Lien Secured Parties, and the Second Lien Secured Parties under this Agreement shall remain in full force and effect and shall
continue irrespective of the commencement of, or any discharge, confirmation, conversion, or dismissal of, any Insolvency Proceeding
by or against the Borrower or any Guarantor or any other circumstance which otherwise might constitute a defense available to,
or a discharge of the Borrower or any Guarantor in respect of the First Lien Obligations or the Second Lien Obligations. No right
of the Second Lien Agent or any Second Lien Secured Party shall at any time be prejudiced or impaired in any way by any act or
failure to act on the part of the Borrower or any Guarantor or by the noncompliance by any Person with the terms, provisions, or
covenants of any of the Second Lien Loan Documents, regardless of any knowledge thereof which the Second Lien Agent or any Second
Lien Secured Party may have.

 

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ARTICLE
6.

INSOLVENCY PROCEEDINGS

 

Section
6.1.               DIP Financing.

 

(a)           If
the Borrower or any Guarantor shall be subject to any Insolvency Proceeding at any time prior to Payment of Maximum First Lien
Facility Amount, and the First Lien Agent or the First Lien Secured Parties shall seek to provide the Borrower or any Guarantor
with, or consent to a third party providing, any financing under Section 364 of the Bankruptcy Code or consent to any order for
the use of cash collateral constituting Collateral under Section 363 of the Bankruptcy Code (each, a “DIP Financing”),
with such DIP Financing to be secured by all or any portion of the Collateral (including assets that, but for the application of
Section 552 of the Bankruptcy Code (or any similar provision of any foreign Debtor Relief Laws) would be Collateral), then the
Second Lien Agent, on behalf of itself and the Second Lien Secured Parties, agrees that it will raise no objection and will not
support any objection to such DIP Financing or use of cash collateral or to the Liens securing the same on any grounds, including
a failure to provide “adequate protection” for the Liens of the Second Lien Agent securing the Second Lien Obligations
(and will not request any adequate protection solely as a result of such DIP Financing or use of cash collateral except as permitted
by Section 6.3(b)(i) and will not offer or support any debtor-in-possession financing which would compete with such DIP Financing),
so long as (i) the Second Lien Agent retains its Lien on the Collateral to secure the Second Lien Obligations (in each case, including
Proceeds thereof arising after the commencement of the case under any Debtor Relief Laws), (ii) the additional amount advanced
against the Collateral pursuant to any such DIP Financing does not exceed $10,000,000, (iii) all Liens on the Collateral securing
any such DIP Financing shall be senior to or on a parity with the Liens of the First Lien Agent and the First Lien Secured Parties
securing the First Lien Obligations on the Collateral; (iv) the non-default interest rate with respect to the DIP Financing is
no more than 2.00% above the rate in effect immediately prior to the commencement of the Insolvency Proceeding and the default
rate for such DIP Financing is no greater than 2.00% in excess of such non-default rate, (v) the closing fees with respect to the
DIP Financing are no more than 1.50% of the maximum principal amount of the DIP Financing; (vi) the DIP Financing does not compel
any Borrower or any Guarantor to seek confirmation of a specific plan of reorganization for which all or substantially all of the
material terms are set forth in the DIP Financing documentation, (vii) the DIP Financing documentation or cash collateral order
does not expressly require the liquidation of all of the Collateral prior to a default under the DIP Financing documentation or
cash collateral order (it being agreed that the DIP Facility may require that certain of the Collateral be liquidated within a
specified time period; provided, further, nothing herein shall prevent the Second Lien Agent or the Second Lien Secured Parties
from (x) objecting to any provision in any DIP Financing relating to any provision or content of a plan or reorganization to the
extent that such objection is not inconsistent with the terms of this Agreement, or (y) objecting to any agreement or arrangements
that require a specific treatment of the claim in the Insolvency Proceeding for purposes of a plan of reorganization or contravene
the terms of this Agreement in any material respect; provided that if the Second Lien Agent and the Second Lien Secured
Parties exercise the purchase option set forth in Article 7 hereof with respect to the First Lien Obligations, the First Lien Agent
agrees, on behalf of the First Lien Secured Parties, that the First Lien Agent and the First Lien Secured Parties shall not seek
to provide the Borrower or any Guarantor with a DIP Financing following such purchase.

 

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(b)           Notwithstanding
the provisions of Section 6.1(a), if the First Lien Agent or some or all of the First Lien Secured Parties (i) do not offer to
provide DIP Financing to the Borrower and/or the Guarantors; or (ii) propose to provide DIP Financing not conforming with the provisions
of Section 6.1(a), the Second Lien Agent and some or all of the Second Lien Secured Parties may propose to provide (or support
any other Person in providing) DIP Financing in lieu of, or competition with, the First Lien Agent and the First Lien Secured Parties,
provided that any such DIP Financing shall be subject to the same limitations set forth in Section 6.1(a), shall
be in conformity with the provisions of Section 5.2(b) and the other provisions of this Agreement, and shall not seek to prime
the Lien of the First Lien Agent and the First Lien Secured Parties.

 

(c)           All
Liens granted to the First Lien Agent or the Second Lien Agent in any Insolvency Proceeding, whether as adequate protection or
otherwise, are intended by the Parties to be and shall be deemed to be subject to the Lien Priority and the other terms and conditions
of this Agreement.

 

Section 6.2.               Relief
From Stay. Until the Payment of Maximum First Lien Facility Amount has occurred, the Second Lien Agent, on behalf of itself
and the Second Lien Secured Parties, agrees not to seek relief from the automatic stay or any other stay in any Insolvency Proceeding
in respect of any portion of the Collateral without the First Lien Agent’s express written consent. In addition, neither
the First Lien Agent nor the Second Lien Agent shall seek any relief from the automatic stay with respect to any Collateral without
providing three (3) days’ prior written notice to the other, unless such period is agreed by both the First Lien Agent and
the Second Lien Agent to be modified or unless, with respect to the First Lien Agent, it makes a good faith determination that
either (A) the Collateral will decline speedily in value or (B) the failure to take any action will have a reasonable likelihood
of endangering the First Lien Agent’s ability to realize upon the Collateral.

 

Section 6.3.               No
Contest; Adequate Protection.

 

(a)           The
Second Lien Agent, on behalf of itself and the Second Lien Secured Parties, agrees that, prior to the Discharge of First Lien Obligations,
none of them shall contest (or support any other Person contesting) (i) any request by the First Lien Agent or any First Lien Secured
Party for adequate protection of its interest in the Collateral in compliance with the terms of this Agreement, (ii) except as
otherwise expressly provided herein, any proposed provision of DIP Financing by the First Lien Agent and some or all of the First
Lien Secured Parties consistent with Section 6.1(a), or (iii) any objection by the First Lien Agent or any First Lien Secured Party
to any motion, relief, action, or proceeding based on a claim by the First Lien Agent or any First Lien Secured Party that its
interests in the Collateral are not adequately protected (or any other similar request under any law applicable to an Insolvency
Proceeding), so long as any Liens granted to the First Lien Agent as adequate protection of its interests are subject to this Agreement.

 

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(b)           The
First Lien Agent, on behalf of itself and the First Lien Secured Parties, agrees that, prior to the Discharge of Second Lien Obligations,
none of them shall contest (or support any other Person contesting) (i) any request by the Second Lien Agent or any Second Lien
Secured Party for adequate protection of its interest in the Collateral (unless in contravention of Section 6.1(a) above), (ii)
except as provided in Section 6.1(b), any proposed provision of DIP Financing by the Second Lien Agent and some or all of the Second
Lien Secured Parties, or (ii) any objection by the Second Lien Agent or any Second Lien Secured Party to any motion, relief, action
or proceeding based on a claim by the Second Lien Agent or any Second Lien Secured Party that its interests in the Collateral (unless
in contravention of Section 6.1(a) above) are not adequately protected (or any other similar request under any law applicable to
an Insolvency Proceeding), so long as (x) any Liens granted to the Second Lien Agent as adequate protection of its interests are
subject to this Agreement and (y) any payments with respect to such adequate protection are limited to payments of interest (without
giving effect to any default rate of interest under the Second Lien Credit Agreement) and reasonable attorneys fees and other reasonable
out of pocket expenses of the Second Lien Secured Parties and are not made with the Proceeds from the Disposition of any Collateral.

 

(c)           Notwithstanding
the foregoing provisions in this Section 6.3, in any Insolvency Proceeding, in the event that the First Lien Agent, on behalf of
itself or any of the First Lien Secured Parties, is granted adequate protection with respect to the Collateral in the form of additional
collateral (even if such collateral is not of a type which would otherwise have constituted Collateral), then the First Lien Agent,
on behalf of itself and the First Lien Secured Parties, agrees that the Second Lien Agent, on behalf of itself or any of the Second
Lien Secured Parties, may seek or request (and the First Lien Secured Parties will not oppose such request) adequate protection
with respect to its interests in such Collateral in the form of a Lien on the same additional collateral, which Lien will be subordinated
to the Liens securing the First Lien Obligations on the same basis as the other Liens of the Second Lien Agent on the Collateral.

 

(d)           Neither
the Second Lien Agent nor any Second Lien Secured Party shall oppose or seek to challenge any claim by the First Lien Agent or
any First Lien Secured Party for allowance in any Insolvency Proceeding of First Lien Obligations consisting of post-petition interest,
fees or expenses to the extent of the value of the Lien securing any First Lien Secured Party’s claim, without regard to
the existence of the Lien of the Second Lien Agent on behalf of the Second Lien Secured Parties on the Collateral.

 

(e)           Neither
the First Lien Agent nor any other First Lien Secured Party shall oppose or seek to challenge any claim by the Second Lien Agent
or any Second Lien Secured Party for allowance in any Insolvency Proceeding of Second Lien Obligations consisting of post-petition
interest, fees or expenses to the extent of the value of the Lien securing any Second Lien Secured Party’s claim.

 

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Section 6.4.               Asset
Sales. The Second Lien Agent agrees, on behalf of itself and the Second Lien Secured Parties, that it will not oppose
any sale consented to by the First Lien Agent of any Collateral pursuant to Section 363(f) of the Bankruptcy Code (or any similar
provision under any law applicable to any Insolvency Proceeding) so long as the Proceeds of such sale are applied in accordance
with this Agreement provided that (i) the First Lien Agent has agreed to release the Liens securing the First Lien Obligations
on such Collateral, (ii) the Second Lien Agent may request the Bankruptcy Court in the Insolvency Proceeding to grant the Second
Lien Agent a Lien in the excess proceeds from such sale or disposition (and the First Lien Agent and the other First Lien Secured
Parties shall not object thereto), (iv) the Second Lien Agent shall have had an opportunity to object to any bidding procedures
motion filed in the Insolvency Proceeding and the sale is conducted in compliance with the bidding procedures approved by the
Bankruptcy Court in such Insolvency Proceeding, and (v) such motion does not impair the rights of the Second Lien Secured Parties
under Section 363(k) of the Bankruptcy Code..

 

Section 6.5.               Separate
Grants of Security and Separate Classification. Each Second Lien Secured Party and each First Lien Secured Party acknowledges
and agrees that (i) the grants of Liens pursuant to the First Lien Security Documents and the Second Lien Security Documents constitute
two separate and distinct grants of Liens and (ii) because of, among other things, their differing rights in the Collateral, the
Second Lien Obligations are fundamentally different from the First Lien Obligations and must be separately classified in any plan
of reorganization (or other plan of similar effect under any Debtor Relief Laws) proposed or adopted in an Insolvency Proceeding.
To further effectuate the intent of the parties as provided in the immediately preceding sentence, if it is held that the claims
of the First Lien Secured Parties and the Second Lien Secured Parties in respect of the Collateral constitute only one secured
claim (rather than separate classes of senior and junior secured claims), then the Second Lien Secured Parties hereby acknowledge
and agree that all distributions shall be made as if there were separate classes of First Lien Obligation claims and Second Lien
Obligation claims against the Loan Parties, with the effect being that, to the extent that the aggregate value of the Collateral
is sufficient (for this purpose ignoring all claims held by the Second Lien Secured Parties), the First Lien Secured Parties shall
be entitled to receive, in addition to amounts distributed to them in respect of principal, pre-petition interest and other claims,
all amounts owing in respect of post-petition interest, fees, expense reimbursements and other claims that are available from
the Collateral before any distribution is made in respect of the claims held by the Second Lien Secured Parties from the Collateral,
with the Second Lien Secured Parties hereby acknowledging and agreeing to turn over to the First Lien Secured Parties amounts
otherwise received or receivable by them to the extent necessary to effectuate the intent of this sentence, even if such turnover
has the effect of reducing the aggregate recoveries of the Second Lien Secured Parties.

 

Section 6.6.               Enforceability.
The provisions of this Agreement are intended to be and shall be enforceable under Section 510(a) of the Bankruptcy Code.

 

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Section 6.7.               First
Lien Obligations Unconditional. All rights of the First Lien Agent hereunder, and all agreements and obligations of the
Second Lien Agent and the Loan Parties (to the extent applicable) hereunder, shall remain in full force and effect irrespective
of any change in the time, place or manner of payment of, or in any other term of, all or any portion of the First Lien Obligations,
or any amendment, waiver or other modification, whether by course of conduct or otherwise, or any refinancing, replacement, refunding
or restatement of any First Lien Loan Document, in each case, in accordance with the terms hereof.

 

Section 6.8.               Second
Lien Obligations Unconditional. All rights of the Second Lien Agent hereunder, all agreements and obligations of the First
Lien Agent and the Loan Parties (to the extent applicable) hereunder, shall remain in full force and effect irrespective of any
change in the time, place or manner of payment of, or in any other term of, all or any portion of the Second Lien Obligations,
or any amendment, waiver or other modification, whether by course of conduct or otherwise, or any refinancing, replacement, refunding
or restatement of any Second Lien Loan Document, in each case, in accordance with the terms hereof.

 

Section 6.9.               Reorganization
Securities. Subject to the ability of the First Lien Secured Parties and the Second Lien Secured Parties, as applicable,
to support or oppose confirmation or approval of any plan of reorganization as provided herein, if, in any Insolvency Proceeding,
debt obligations of the reorganized debtor secured by Liens upon any property of the reorganized debtor are distributed pursuant
to a plan of reorganization, both on account of First Lien Obligations and on account of Second Lien Obligations, then, to the
extent the debt obligations distributed on account of the First Lien Obligations and on account of the Second Lien Obligations
are secured by Liens upon the same property, the provisions of this Agreement will survive the distribution of such debt obligations
pursuant to such plan and will apply with like effect to the debt obligations so distributed and to the Liens securing such debt
obligations and the distribution of Proceeds thereof.

 

Section 6.10.            Rights
as Unsecured Creditors. Except as expressly provided in this Agreement, nothing contained herein shall affect the rights
or claims of any Agent or any Secured Party as an unsecured creditor in any Insolvency Proceeding, and the Agents and the Secured
Parties shall retain all such rights and claims (it being understood that the Secured Parties may not directly or indirectly exercise
rights as an unsecured creditor which such Secured Party is expressly prohibited from exercising as a secured creditor hereunder).

 

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ARTICLE
7.

PURCHASE OPTION

 

Section 7.1.               Right
to Purchase. Upon the occurrence and during the continuation of a Triggering Event, any one or more of the Second Lien
Lenders (acting in their individual capacity or through one or more affiliates) shall have the right, subject to the third sentence
of this Section 71, but not the obligation, upon written notice from the Second Lien Agent on behalf of such Second Lien Lenders
(a “Purchase Notice”) to First Lien Agent to acquire from the First Lien Lenders all (but not less than
all) of the right, title, and interest of the First Lien Lenders in and to the First Lien Obligations and the First Lien Loan
Documents. The Purchase Notice, if given, shall be irrevocable. With respect to any Insolvency Proceeding constituting a Triggering
Event, a Purchase Notice may be furnished only upon (i) the occurrence of any event which would permit the Second Lien Secured
Parties to propose a DIP Financing under Section 6.1(b) hereof or (ii) the failure of any of the First Lien Secured Parties to
offer to provide DIP Financing, and, in each such event, such Purchase Notice must be received by the First Lien Agent within
ten (10) Business Days after the earlier of the commencement of the Insolvency Proceeding or the date that the First Lien Agent
notifies the Second Lien Agent in writing of the First Lien Agent’s intention to provide (or not to provide) a DIP Financing;
if not so furnished within that time period (time being of the essence), the rights of the Second Lien Lenders to purchase the
First Lien Obligations as a result of the commencement of such Insolvency Proceeding shall terminate and be on no further force
and effect unless and until another Triggering Event exists. On the date specified by the Second Lien Agent in the Purchase Notice
(which shall not be more than ten (10) Business Days after the receipt by First Lien Agent of the Purchase Notice), the First
Lien Lenders shall sell to the purchasing Second Lien Lenders and the purchasing Second Lien Lenders shall purchase from the First
Lien Lenders, the First Lien Obligations. During the period commencing on the date such notice is received by the First Lien Agent
and ending on the date specified in such notice for the consummation of the purchase, the First Lien Agent shall not Exercise
Any Secured Creditor Remedies without the consent of the Second Lien Agent (such consent not to be unreasonably withheld or delayed).
For the avoidance of doubt, each Triggering Event shall be deemed to be an independent event and shall in each case independently
trigger the right of the Second Lien Agent and the Second Lien Lenders to purchase all of the First Lien Obligations, notwithstanding
the prior occurrence of another Trigger Event.

 

Section 7.2.               Payments.
On the date of such purchase and sale, the purchasing Second Lien Lenders shall:

 

(a)           pay
to First Lien Agent, for the benefit of the First Lien Lenders, as the purchase price therefor, the full amount of all the First
Lien Obligations (other than (x) indemnification obligations for which no claim or demand for payment has been made at such time,
and (y) First Lien Obligations cash collateralized in accordance with Section 7.2(b) below) then outstanding and unpaid;

 

(b)           (i)
furnish cash collateral to the First Lien Agent in such amounts as the First Lien Agent determines is reasonably necessary to secure
the First Lien Agent and the First Lien Lenders (and their respective affiliates) in respect of any Cash Management Obligations
(such cash collateral shall be applied to the reimbursement of Bank Product Obligations and Cash Management Obligations as and
when such obligations become due and payable and, at such time as all of the Cash Management Obligations are paid in full, the
remaining cash collateral held by First Lien Agent in respect of Cash Management Obligations shall be remitted to the Second Lien
Agent for the benefit of the purchasing Second Lien Lenders), and (ii) furnish cash collateral to the First Lien Agent in such
amounts as the First Lien Agent reasonably determines is necessary to secure the First Lien Agent and the First Lien Lenders in
respect of any asserted or threatened (in writing) claims, demands, actions, suits, proceedings, investigations, liabilities, fines,
costs, penalties, or damages that are the subject of the indemnification provisions of the First Lien Credit Agreement (such cash
collateral shall be applied to the reimbursement of such obligations as and when they become due and payable and, at such time
as all of such obligations are paid in full, the remaining cash collateral held by First Lien Agent in respect of indemnification
obligations shall be remitted to the Second Lien Agent for the benefit of the purchasing Second Lien Lenders), or make such other
accommodations as are reasonably agreed between the First Lien Agent and the Second Lien Agent with respect to such obligations;
and

 

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(c)           pay
to First Lien Agent and the other First Lien Lenders the amount of all expenses in accordance with the First Lien Loan Documents
(including the reimbursement of attorneys’ fees, field examination expenses, and appraisal fees).

 

Such purchase price and cash collateral
shall be remitted by wire transfer of federal funds to such bank account of First Lien Agent as First Lien Agent may designate
in writing to Second Lien Agent for such purpose. Interest shall be calculated to but excluding the Business Day on which such
purchase and sale shall occur if the amounts so paid by the purchasing Second Lien Lenders to the bank account designated by First
Lien Agent are received in such bank account prior to 2:00 p.m., Eastern time, and interest shall be calculated to and including
such Business Day if the amounts so paid by the purchasing Second Lien Lenders to the bank account designated by First Lien Agent
are received in such bank account later than 2:00 p.m., Eastern time.

 

Section 7.3.               Documentation.
Any such purchase under this Article 7 shall be effected by the execution and delivery of a customary form of assignment and acceptance
agreement and shall be expressly made without representation or warranty of any kind by First Lien Agent and the other First Lien
Lenders as to the First Lien Obligations so purchased, or otherwise, and without recourse to First Lien Agent or any other First
Lien Secured Party, except that each First Lien Lender shall represent and warrant: (i) that the amount quoted by such First Lien
Lender as its portion of the purchase price represents the amount shown as owing with respect to the claims transferred as reflected
on its books and records, and (ii) it owns, or has the right to transfer to the purchasing Second Lien Lenders, the rights being
transferred.

 

Section 7.4.               Retained
Interest of First Lien Lenders. In the event that any one or more of the Second Lien Lenders exercises and consummates
the purchase option set forth in this Article 7, the First Lien Lenders shall retain their indemnification rights under the First
Lien Credit Agreement.

 

ARTICLE
8.

MISCELLANEOUS

 

Section 8.1.               Rights
of Subrogation. The Second Lien Agent, for and on behalf of itself and the Second Lien Secured Parties, agrees that no
payment to the First Lien Agent or any First Lien Secured Party pursuant to the provisions of this Agreement shall entitle the
Second Lien Agent or any Second Lien Secured Party to exercise any rights of subrogation in respect thereof until the Discharge
of First Lien Obligations shall have occurred. Following the Discharge of First Lien Obligations, the First Lien Agent agrees
to execute such documents, agreements, and instruments as the Second Lien Agent or any Second Lien Secured Party may reasonably
request to evidence the transfer by subrogation to any such Person of an interest in the First Lien Obligations resulting from
payments to the First Lien Agent by such Person, so long as all costs and expenses (including all reasonable legal fees and disbursements)
incurred in connection therewith by the First Lien Agent are paid by such Person upon request for payment thereof.

 

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Section 8.2.               Further
Assurances. The Parties will, at their own expense and at any time and from time to time, promptly execute and deliver
all further instruments and documents, and take all further action, that may be necessary or desirable, or that either Party may
reasonably request, in order to protect any right or interest granted or purported to be granted hereby or to enable the First
Lien Agent or the Second Lien Agent to exercise and enforce its rights and remedies hereunder; provided, however,
that no Party shall be required to pay over any payment or distribution, execute any instruments or documents, or take any other
action referred to in this Section 8.2, to the extent that such action would contravene any law, order or other legal requirement
or any of the terms or provisions of this Agreement, and in the event of a controversy or dispute, such Party may interplead any
payment or distribution in any court of competent jurisdiction, without further responsibility in respect of such payment or distribution
under this Section 8.2.

 

Section 8.3.               Representations.
The Second Lien Agent represents and warrants to the First Lien Agent that it has the requisite power and authority under the
Second Lien Loan Documents to enter into, execute, deliver, and carry out the terms of this Agreement on behalf of itself and
the Second Lien Secured Parties and that this Agreement shall be binding obligations of the Second Lien Agent and the Second Lien
Secured Parties, enforceable against the Second Lien Agent and the Second Lien Secured Parties in accordance with its terms. The
First Lien Agent represents and warrants to the Second Lien Agent that it has the requisite power and authority under the First
Lien Loan Documents to enter into, execute, deliver, and carry out the terms of this Agreement on behalf of itself and the First
Lien Secured Parties and that this Agreement shall be binding obligations of the First Lien Agent and the First Lien Secured Parties,
enforceable against the First Lien Agent and the First Lien Secured Parties in accordance with its terms.

 

Section 8.4.               Amendments.
No amendment or waiver of any provision of this Agreement nor any consent to any departure by any Party hereto shall be effective
unless it is in a written agreement executed by the Second Lien Agent and the First Lien Agent and then such waiver or consent
shall be effective only in the specific instance and for the specific purpose for which given; provided, however,
that this Agreement may be amended from time to time, without the consent of either Agent, to add additional Loan Parties, whereupon
such Person will be bound by the terms hereof to the same extent as if it had executed and delivered this Agreement as of the
date hereof.

 

Section 8.5.              Addresses
for Notices. Unless otherwise specifically provided herein, any notice or other communication herein required or permitted
to be given shall be in writing and may be personally served, telecopied, sent electronically in PDF or similar format or sent
by overnight express courier service or United States mail and shall be deemed to have been given when delivered in person or
by courier service, upon receipt of a telecopy or electronic transmission or five (5) days after deposit in the United States
mail (certified, with postage prepaid and properly addressed). For the purposes hereof, the addresses of the parties hereto (until
notice of a change thereof is delivered as provided in this Section) shall be as set forth below or, as to each party, at such
other address as may be designated by such party in a written notice to all of the other parties.

 

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		First Lien Agent:	Bank of America, N.A.

100 Federal Street

MA5 100 09-09

Boston, Massachusetts 02110

Attention: Andrew Cerussi

Andrew.cerussi@baml.com

 

		Second Lien Agent:	Wilmington Trust, National Association

 

Attention:

 

Section 8.6.               No
Waiver; Remedies. No failure on the part of any Party to exercise, and no delay in exercising, any right hereunder shall
operate as a waiver thereof; nor shall any single or partial exercise of any right hereunder preclude any other or further exercise
thereof or the exercise of any other right. The remedies herein provided are cumulative and not exclusive of any remedies provided
by law.

 

Section 8.7.              Continuing
Agreement, Transfer of Secured Obligations. This Agreement is a continuing agreement and shall (a) remain in full force
and effect until the Discharge of First Lien Obligations and the Discharge of Second Lien Obligations shall have occurred, (b)
be binding upon the Parties and their successors and assigns, and (c) inure to the benefit of and be enforceable by the Parties
and their respective successors, transferees and assigns. Nothing herein is intended, or shall be construed to give, any other
Person any right, remedy or claim under, to or in respect of this Agreement or any Collateral. All references to any Loan Party
shall include any Loan Party as debtor-in-possession and any receiver or trustee for such Loan Party in any Insolvency Proceeding.
Without limiting the generality of the foregoing clause (c), the First Lien Agent, any First Lien Secured Party, the Second Lien
Agent, or any Second Lien Secured Party may assign or otherwise transfer all or any portion of the First Lien Obligations or the
Second Lien Obligations, as applicable, to any other Person (other than the Borrower, any Guarantor or any subsidiary or Affiliate
of the Borrower or any Guarantor), and such other Person shall thereupon become vested with all the rights and obligations in
respect thereof granted to the First Lien Agent, the Second Lien Agent, any First Lien Secured Party, or any Second Lien Secured
Party, as the case may be, herein or otherwise. The First Lien Secured Parties and the Second Lien Secured Parties may continue,
at any time and without notice to the other parties hereto, to extend credit and other financial accommodations, lend monies and
provide indebtedness to, or for the benefit of, any Loan Party on the faith hereof.

 

Section 8.8.              Governing
Law; Entire Agreement. The validity, performance, and enforcement of this Agreement shall be governed by, and construed
in accordance with, the laws of the State of New York. This Agreement constitutes the entire agreement and understanding among
the Parties with respect to the subject matter hereof and supersedes any prior agreements, written or oral, with respect thereto.

 

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Section 8.9.              Counterparts.
This Agreement may be executed in any number of counterparts, and it is not necessary that the signatures of all Parties be contained
on any one counterpart hereof, each counterpart will be deemed to be an original, and all together shall constitute one and the
same document.

 

Section 8.10.             No
Third Party Beneficiaries. This Agreement is solely for the benefit of the First Lien Agent, the First Lien Secured Parties,
the Second Lien Agent and the Second Lien Secured Parties. No other Person (including the Borrower, any Guarantor or any Affiliate
of the Borrower or any Guarantor, or any subsidiary of the Borrower or any Guarantor) shall be deemed to be a third party beneficiary
of this Agreement.

 

Section 8.11.             Headings.
The headings of the articles and sections of this Agreement are inserted for purposes of convenience only and shall not be construed
to affect the meaning or construction of any of the provisions hereof.

 

Section 8.12.            Severability.
If any of the provisions in this Agreement shall, for any reason, be held invalid, illegal or unenforceable in any respect, such
invalidity, illegality, or unenforceability shall not affect any other provision of this Agreement and shall not invalidate the
Lien Priority or the application of Proceeds and other priorities set forth in this Agreement.

 

Section
8.13.             VENUE; JURY TRIAL WAIVER.

 

(a)           EACH
PARTY HERETO HEREBY IRREVOCABLY AND UNCONDITIONALLY SUBMITS, FOR ITSELF AND ITS PROPERTY, TO THE NON-EXCLUSIVE JURISDICTION OF
THE SUPREME COURT OF THE STATE OF NEW YORK SITTING IN NEW YORK COUNTY AND OF THE UNITED STATES DISTRICT COURT OF THE SOUTHERN DISTRICT
OF NEW YORK, AND ANY APPELLATE COURT FROM ANY THEREOF, IN ANY ACTION OR PROCEEDING ARISING OUT OF OR RELATING TO THIS AGREEMENT,
OR FOR RECOGNITION OR ENFORCEMENT OF ANY JUDGMENT, AND EACH OF THE PARTIES HERETO HEREBY IRREVOCABLY AND UNCONDITIONALLY AGREES
THAT ALL CLAIMS IN RESPECT OF ANY SUCH ACTION OR PROCEEDING MAY BE HEARD AND DETERMINED IN SUCH NEW YORK STATE OR, TO THE EXTENT
PERMITTED BY LAW, IN SUCH FEDERAL COURT. EACH OF THE PARTIES HERETO AGREES THAT A FINAL JUDGMENT IN ANY SUCH ACTION OR PROCEEDING
SHALL BE CONCLUSIVE AND MAY BE ENFORCED IN OTHER JURISDICTIONS BY SUIT ON THE JUDGMENT OR IN ANY OTHER MANNER PROVIDED BY LAW.
NOTHING IN THIS AGREEMENT SHALL AFFECT ANY RIGHT THAT ANY FIRST LIEN SECURED PARTY OR ANY SECOND LIEN SECURED PARTY MAY OTHERWISE
HAVE TO BRING ANY ACTION OR PROCEEDING RELATING TO THIS AGREEMENT, ANY FIRST LIEN LOAN DOCUMENTS, OR ANY SECOND LIEN LOAN DOCUMENTS
AGAINST ANY LOAN PARTY OR ITS PROPERTIES IN THE COURTS OF ANY JURISDICTION.

 

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(b)           EACH
PARTY HERETO HEREBY WAIVES ITS RESPECTIVE RIGHTS TO A JURY TRIAL OF ANY CLAIM OR CAUSE OF ACTION BASED UPON OR ARISING OUT OF THIS
AGREEMENT OR ANY OF THE TRANSACTIONS CONTEMPLATED HEREIN, INCLUDING CONTRACT CLAIMS, TORT CLAIMS, BREACH OF DUTY CLAIMS, AND ALL
OTHER COMMON LAW OR STATUTORY CLAIMS. EACH PARTY HERETO REPRESENTS THAT IT HAS REVIEWED THIS WAIVER AND IT KNOWINGLY AND VOLUNTARILY
WAIVES ITS JURY TRIAL RIGHTS FOLLOWING CONSULTATION WITH LEGAL COUNSEL. IN THE EVENT OF LITIGATION, A COPY OF THIS AGREEMENT MAY
BE FILED AS A WRITTEN CONSENT TO A TRIAL BY THE COURT.

 

(c)           EACH
PARTY TO THIS AGREEMENT IRREVOCABLY CONSENTS TO SERVICE OF PROCESS IN THE MANNER PROVIDED FOR NOTICES IN SECTION 8.5. NOTHING IN
THIS AGREEMENT WILL AFFECT THE RIGHT OF ANY PARTY TO THIS AGREEMENT TO SERVE PROCESS IN ANY OTHER MANNER PERMITTED BY LAW.

 

Section 8.14.             Intercreditor
Agreement. This Agreement is the Intercreditor Agreement referred to in the First Lien Credit Agreement and the Second
Lien Credit Agreement. Nothing in this Agreement shall be deemed to subordinate the obligations due to (i) any First Lien Secured
Party to the obligations due to any Second Lien Secured Party or (ii) any Second Lien Secured Party to the obligations due to
any First Lien Secured Party (in each case, whether before or after the occurrence of an Insolvency Proceeding), it being the
intent of the Parties that this Agreement shall effectuate a subordination of Liens but not a subordination of indebtedness.

 

Section 8.15.             No
Warranties or Liability. The Second Lien Agent and the First Lien Agent acknowledge and agree that neither has made any
representation or warranty with respect to the execution, validity, legality, completeness, collectability or enforceability of
any other First Lien Loan Document or any Second Lien Loan Document. Except as otherwise provided in this Agreement, the Second
Lien Agent and the First Lien Agent will be entitled to manage and supervise their respective extensions of credit to any Loan
Party in accordance with law and their usual practices, modified from time to time as they deem appropriate.

 

Section 8.16.            Conflicts.
In the event of any conflict between the provisions of this Agreement and the provisions of any First Lien Loan Document or any
Second Lien Loan Document, the provisions of this Agreement shall govern.

 

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Section 8.17.            Information
Concerning Financial Condition of the Loan Parties. Each of the Second Lien Agent and the First Lien Agent hereby assumes
responsibility for keeping itself informed of the financial condition of the Loan Parties and all other circumstances bearing
upon the risk of non-payment of the First Lien Obligations or the Second Lien Obligations. The Second Lien Agent and the First
Lien Agent hereby agree that no party shall have any duty to advise any other party of information known to it regarding such
condition or any such circumstances. In the event the Second Lien Agent or the First Lien Agent, in its sole discretion, undertakes
at any time or from time to time to provide any information to any other party to this Agreement, (a) it shall be under no obligation
(i) to provide any such information to such other party or any other party on any subsequent occasion except as required pursuant
to Section 3.3, (ii) to undertake any investigation not a part of its regular business routine, or (iii) to disclose any other
information, or (b) it makes no representation as to the accuracy or completeness of any such information and shall not be liable
for any information contained therein, and (c) the Party receiving such information hereby to hold the other Party harmless from
any action the receiving Party may take or conclusion the receiving Party may reach or draw from any such information, as well
as from and against any and all losses, claims, damages, liabilities, and expenses to which such receiving Party may become subject
arising out of or in connection with the use of such information.

 

Section
8.18.             Initial Loan To Value. The
Parties acknowledge that, as of the date of this Agreement, the Loan to Value Ratio (as defined in the First Lien Credit Agreement)
is greater than fifty percent (50%) and shall remain in excess of fifty percent (50%) until the date that the principal payment
due on September 30, 2014 under the First Lien Credit Agreement is received by the First Lien Agent. The foregoing shall not give
rise to any claim by any Party against the other or affect the rights of any Party hereunder.

 

[Remainder of page intentionally left
blank.]

 

    	38

    	 

    

 

IN WITNESS WHEREOF,
the First Lien Agent, for and on behalf of itself and the First Lien Lenders, and the Second Lien Agent, for and on behalf of itself
and the Second Lien Lenders, have caused this Agreement to be duly executed and delivered as of the date first above written.

 

	 	BANK OF AMERICA, N.A., in its capacity as the First Lien Agent
	 	 
	 	By:	/s/ Andrew Cerussi
	 	 	Name: Andrew Cerussi
	 	 	Title: Director

 

 

Signature Page to Intercreditor Agreement

 

    	 

    	 

    

 

	 	WILMINGTON TRUST, NATIONAL ASSOCIATION, in its capacity as the Second Lien Agent
	 	 
	 	By:	/s/ Megan H. McCauley
	 	 	Name: Megan H. McCauley
	 	 	Title: Assistant Vice President

 

 

Signature Page to Intercreditor Agreement

 

    	 

    	 

    

 

ACKNOWLEDGMENT

 

The Borrower and each
Guarantor hereby acknowledges that it has received a copy of this Agreement and consents thereto, agrees to recognize all rights
granted thereby to the First Lien Agent, the First Lien Secured Parties, the Second Lien Agent, and the Second Lien Secured Parties
and will not do any act or perform any obligation which is not in accordance with the agreements set forth in this Agreement. The
Borrower and each Guarantor further acknowledges and agrees that it is not an intended beneficiary or third party beneficiary under
this Agreement and (i) as between the First Lien Secured Parties, the Borrower and the Guarantors, the First Lien Loan Documents
remain in full force and effect as written and are in no way modified hereby, and (ii) as between the Second Lien Secured Parties,
the Borrower and the Guarantors, the Second Lien Loan Documents remain in full force and effect as written and are in no way modified
hereby.

 

	 	WILLIAM RAST LICENSING, LLC
	 	 	 	 
	 	By:	/s/ Gary Klein
	 	Name:	Gary Klein
	 	Title:	Chief Financial Officer
	 	 	 	 
	 	HEELYS, INC.
	 	 	 	 
	 	By:	/s/ Gary Klein
	 	Name:	Gary Klein
	 	Title:	Chief Financial Officer
	 	 	 	 
	 	HEELING MANAGEMENT CORP.
	 	 	 	 
	 	By:	/s/ Gary Klein
	 	Name:	Gary Klein
	 	Title:	Chief Financial Officer
	 	 	 	 
	 	HEELING HOLDING CORPORATION
	 	 	 	 
	 	By:	/s/ Gary Klein
	 	Name:	Gary Klein
	 	Title:	Chief Financial Officer
	 	 	 	 
	 	HEELING SPORTS LIMITED
	 	 	 	 
	 	By:	Heeling Management Corp., as the General Partner
	 	 	 	 
	 	 	By:	/s/ Gary Klein
	 	 	Name:	Gary Klein
	 	 	Title:	Chief Financial Officer
	 	 	 	 
	 	By:	Heeling Holding Corporation, as the Limited Partner
	 	 	 	 
	 	 	By:	/s/ Gary Klein
	 	 	Name:	Gary Klein
	 	 	Title:	Chief Financial Officer

 

 

Acknowledgment to
Intercreditor Agreement

 

    	 

    	 

    

 

	 	B®AND MATTER, LLC
	 	 	 
	 	By:	/s/ Gary Klein
	 	Name:	Gary Klein
	 	Title:	Chief Financial Officer
	 	 	 
	 	SBG REVO HOLDINGS, LLC
	 	 	 
	 	By:	/s/ Gary Klein
	 	Name:	Gary Klein
	 	Title:	Chief Financial Officer
	 	 	 
	 	SBG, FM, LLC
	 	 	 
	 	By:	/s/ Gary Klein
	 	Name:	Gary Klein
	 	Title:	Chief Financial Officer
	 	 	 
	 	SBG UNIVERSE BRANDS, LLC
	 	 	 
	 	By:	/s/ Gary Klein
	 	Name:	Gary Klein
	 	Title:	Chief Financial Officer
	 	 	 
	 	GALAXY BRANDS LLC
	 	 	 
	 	By:	/s/ Gary Klein
	 	Name:	Gary Klein
	 	Title:	Chief Financial Officer
	 	 	 
	 	THE BASKETBALL MARKETING COMPANY, INC.
	 	 	 
	 	By:	/s/ Gary Klein
	 	Name:	Gary Klein
	 	Title:	Chief Financial Officer

 

 

Acknowledgment to
Intercreditor Agreement

 

    	 

    	 

    

 

	 	AMERICAN SPORTING GOODS CORPORATION
	 	 	 
	 	By:	/s/ Gary Klein
	 	Name:	Gary Klein
	 	Title:	Chief Financial Officer
	 	 	 
	 	LNT BRANDS LLC
	 	 	 
	 	By:	/s/ Gary Klein
	 	Name:	Gary Klein
	 	Title:	Chief Financial Officer

 

 

Acknowledgment to
Intercreditor AgreementExhibit 10.5

 

NEITHER THIS WARRANT NOR THE SHARES OF
COMMON STOCK ISSUABLE UPON ITS EXERCISE HAVE BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES
ACT”), OR ANY APPLICABLE STATE SECURITIES LAWS, AND MAY NOT BE OFFERED, SOLD, OR OTHERWISE TRANSFERRED, PLEDGED, OR HYPOTHECATED
UNLESS (I) PURSUANT TO REGISTRATION UNDER THE SECURITIES ACT OR (II) IN COMPLIANCE WITH AN EXEMPTION THEREFROM AND ACCOMPANIED,
IF REQUESTED BY THE ISSUER, WITH AN OPINION OF COUNSEL REASONABLY SATISFACTORY TO THE COMPANY THAT SUCH TRANSFER IS IN COMPLIANCE
WITH AN EXEMPTION THEREFROM.

 

THIS WARRANT AND THE SHARES
OF COMMON STOCK ISSUED

UPON ITS EXERCISE ARE SUBJECT TO THE RESTRICTIONS ON

TRANSFER SET FORTH IN ARTICLE II OF THIS WARRANT

 

	Warrant No.  ________	 	Number of Shares: ________
	Date of Issuance August 15, 2014	 	(subject to adjustment)
	Void after December 31, 2019	 	 

  

SEQUENTIAL BRANDS GROUP, INC.

 

Form of Common Stock Purchase Warrant

 

THIS IS TO CERTIFY
THAT, for value received, ___________ or its permitted assigns (collectively, the “Registered Holder”) is entitled
to purchase from Sequential Brands Group, Inc., a Delaware corporation (the “Company”), at the place where
the Warrant Office designated pursuant to Section 2.1 is located, at a purchase price per share of $11.20 (as adjusted pursuant
to the terms of this Warrant, the “Exercise Price”), __________ shares (the “Warrant Shares”)
of duly authorized, validly issued, fully paid and nonassessable shares of Common Stock, $0.001 par value per share, of the Company
(the “Common Stock”), and is entitled also to exercise the other appurtenant rights, powers and privileges hereinafter
set forth. The number of shares of the Common Stock purchasable hereunder and the Exercise Price are subject to adjustment in accordance
with Article III hereof. This Warrant shall expire at 5:00 p.m., New York time, on December 31, 2019 (the “Expiration
Date”). Receipt of this Warrant by the Registered Holder shall constitute acceptance of and agreement to the terms and
conditions set forth herein.

 

This Warrant is issued
in connection with that certain Agreement and Plan of Merger, dated as of June 24, 2014 (the “Merger Agreement”),
by and among the Company, SBG Universe Brands, LLC, Universe Galaxy Merger Sub, Inc., Galaxy Brand Holdings, Inc., solely in its
capacity as the Stockholder Representative (as defined in the Merger Agreement) Carlyle Equity Opportunity GP, L.P, and, for purposes
of Section 6.5(b) only, Carlyle Galaxy Holdings, L.P.

 

    	 

    	 

    

 

ARTICLE
I

 

Exercise
of Warrant

 

1.1           Method
of Exercise. The Vested Warrant Shares pursuant to this Warrant may be exercised by the Registered Holder as a whole or in
part at any time and from time to time subsequent to the date hereof and until the Expiration Date at which time this Warrant shall
expire and be of no further force or effect; provided, however, that the minimum number of Warrant Shares that may
be purchased on a single exercise shall be 1,000 or the entire number of shares remaining available for exercise hereunder, whichever
is less. To exercise this Warrant, the Registered Holder shall deliver to the Company, at the Warrant Office designated in Section
2.1(a), a written notice in the form of the Purchase Form attached as Exhibit A hereto, stating therein the election
of the Registered Holder to exercise this Warrant in the manner provided in the Purchase Form, along with payment in full of the
Exercise Price (in the manner described below) for all Vested Warrant Shares purchased hereunder. Subject to compliance with Section
3.1(a)(vi), this Warrant shall be deemed to be exercised on the date of receipt by the Company of the Purchase Form, accompanied
by payment for the Vested Warrant Shares to be purchased and surrender of this Warrant, as aforesaid, and such date is referred
to herein as the “Exercise Date.” Upon such exercise (subject as aforesaid), the Company shall promptly (and
in any event within three Business Days (as defined in the Merger Agreement) following the Exercise Date) issue and deliver to
the Registered Holder a certificate or statement evidencing ownership in book-entry form for the full number of the Vested Warrant
Shares purchasable by the Registered Holder hereunder, against the receipt by the Company of the total Exercise Price payable hereunder
for all such Vested Warrant Shares, (a) in cash or by certified or cashier’s check or (b) pursuant to the Net Exercise provisions
of Section 1.2. The person or entity in whose name the certificate(s) or book-entry statements for Common Stock is to be
issued shall be deemed to have become a holder of record of such Common Stock on the Exercise Date. If the Company fails to deliver
such certificate or statement during the time period specified above, then the Registered Holder will have the right to rescind
such exercise; provided, that nothing herein shall limit a Registered Holder’s right to pursue any other remedies available
to it hereunder, at law or in equity including, without limitation, a decree of specific performance or injunctive relief with
respect to the Company’s failure to deliver such certificate or statement in accordance with the terms of this Warrant.

 

1.2           Net
Exercise. In lieu of exercising the Vested Warrant Shares by delivering payment of the Exercise Price to the Company in cash,
if the fair market value of one share of Common Stock is greater than the Exercise Price (at the date of calculation as set forth
below), the Registered Holder of this Warrant may elect to receive a number of shares of Common Stock equal to the value of this
Warrant (or of any portion of this Warrant being canceled) by surrender of this Warrant at the Warrant Office together with a properly
completed and executed Purchase Form, in which event the Company shall issue the Registered Holder a number of shares of Common
Stock computed as follows

 

	X	=	Y (A – B)
	A

 

    	2

    	 

    

 

  Where:

	X	=	the number of shares of Common Stock to be issued to the Registered Holder.
	 	 	 
	Y	=	the number of shares of Common Stock purchasable under the Warrant or, if only a portion of the Warrant is being exercised, the portion of the Warrant being canceled (at the date of such calculation).
	 	 	 
	A	=	the Current Market Price of one share of Common Stock (at the date of such calculation).  For purposes of this Section 1, “Current Market Price” means, the volume-weighted average, rounded to the nearest cent, of the closing sales price of shares of Common Stock on the NASDAQ Stock Market, as reported by The Wall Street Journal for the immediately preceding ten (10) trading days.
	 	 	 
	B	=	Exercise Price (as adjusted to the date of such calculation).

 

1.3           Fractional
Shares. No fractional shares of Common Stock shall be issued in connection with any exercise of this Warrant. In lieu of any
fractional shares that would otherwise be issuable, the Company shall pay cash equal to the product of such fraction multiplied
by the Current Market Price of one share of Common Stock at the date of exercise.

 

1.4           Termination.
Notwithstanding any other provision of this Warrant, the right to exercise this Warrant shall terminate upon the Expiration Date;
provided, however, if this Warrant shall not have been exercised in full prior to a Change of Control of any kind described in
clause (i) of the definition thereof, this Warrant shall be automatically exercised upon the closing of such Change of Control
pursuant to the Net Exercise provisions of Section 1.2.

 

1.5           Delivery
of New Warrants Upon Exercise. If this Warrant shall have been exercised in part, the Company shall, at the request of the
Registered Holder and upon surrender of this Warrant, at the time of delivery of the certificate or statement evidencing ownership
in book-entry form for the Vested Warrant Shares purchased by the Registered Holder hereunder, deliver to the Registered Holder
a new Warrant evidencing the rights of the Registered Holder to purchase the unpurchased Warrant Shares pursuant to this Warrant,
which new Warrant shall in all other respects be identical to this Warrant.

 

1.6           Withholding.
Solely to the extent required by applicable law and upon prior notice, Parent shall be entitled to deduct and withhold from any
amounts or Warrant Shares to be delivered hereunder to a Registered Holder which constitute compensation, any amounts required
to be deducted and withheld with respect to the making of such payment. Any amounts so deducted and withheld shall be timely paid
over to the appropriate governmental authority and shall be treated for all purposes of this Warrant as having been paid to the
Registered Holder in respect of which such deduction and withholding was made.

 

    	3

    	 

    

 

ARTICLE
II

 

Warrant
Office; Transfer

 

2.1           Warrant
Office. The Company shall maintain an office for certain purposes specified herein (the “Warrant Office”),
which office shall initially be the Company’s principal office, and may subsequently be such other office of the Company
or of any transfer agent of the Common Stock in the continental United States of which written notice has previously been given
to the Registered Holder. The Company shall maintain, at the Warrant Office, a register for the Warrant in which the Company shall
record the name and address of the Registered Holder, as well as the name and address of each permitted assignee of the rights
of the Registered Holder.

 

2.2           Ownership
of Warrant. The Company may deem and treat the Registered Holder as the holder and owner hereof (notwithstanding any notations
of ownership or writing hereon made by anyone other than the Company) for all purposes and shall not be affected by any notice
to the contrary, until presentation of this Warrant for registration of transfer as provided in this Article II.

 

2.3           Transfer
of Warrants. The Company agrees to maintain at the Warrant Office books for the registration and transfer of this Warrant.
This Warrant may be transferred by any Registered Holder (including, for the avoidance of doubt, any subsequent transferee) in
whole or in part only in compliance with applicable law and only to his, her or its Permitted Transferees. The Company, from time
to time, shall register the transfer in whole or in part of this Warrant in such books upon surrender of this Warrant at the Warrant
Office, properly endorsed, together with a written assignment of this Warrant, substantially in the form of the Assignment attached
as Exhibit B hereto. Upon any such transfer, a new Warrant shall be issued to the transferee, and the Company shall cancel
the surrendered Warrant. The Registered Holder shall pay all taxes and all other expenses and charges payable in connection with
the transfer of Warrants pursuant to this Section 2.3. For purposes of this Warrant, “Permitted Transferees”
shall mean (a) in the case of an individual, the individual’s spouse, child, estate, personal representative, heir or successor,
a trust for the benefit of any of the foregoing persons, or a partnership or limited liability company the partners or members
of which consist solely of any of the foregoing persons and (b) in the case of any Registered Holder that is not a natural person
(other than a trust as described in clause (a) of this sentence, for whom transfers may be made to the persons described in such
clause (a)), to a person or entity that is an Affiliate (as defined in the Merger Agreement), direct partner, member or stockholder
of such Registered Holder.

 

2.4           No
Rights as Shareholder Until Exercise. No holder of this Warrant, as such, shall be entitled to vote or receive dividends or
be deemed to be a stockholder of the Company for any purpose, nor shall anything contained in this Warrant be construed to confer
upon the Registered Holder of this Warrant, as such, any rights of a stockholder of the Company or any right to vote, give or withhold
consent to any corporate action, receive notice of meetings, receive dividends or subscription rights, or otherwise. Upon the surrender
of this Warrant and the payment of the aggregate Exercise Price, the Warrant Shares so purchased shall be and be deemed to be issued
to the Registered Holder as the record owner of such shares as of the close of business on the later of the date of such surrender
or payment.

 

    	4

    	 

    

 

2.5           Expenses
of Delivery of Warrants. Except as provided in Section 2.3, the Company shall pay all reasonable expenses, taxes and
other charges payable in connection with the preparation, issuance and delivery of Warrants and related Warrant Shares hereunder.

 

2.6           Compliance
with Securities Laws. The Registered Holder (and its transferees and assigns), by acceptance of this Warrant, covenants and
agrees that such Registered Holder is acquiring the Warrants evidenced hereby, and, upon exercise hereof, the Warrant Shares, for
its own account as an investment and not with a view to distribution thereof in violation of applicable law. Neither this Warrant
nor the Warrant Shares issuable hereunder have been registered under the Securities Act or any state securities laws and no transfer
of this Warrant or any Warrant Shares shall be permitted unless the Company has received notice of such transfer in the form of
the assignment attached hereto as Exhibit B, accompanied, if requested by the Company, by an opinion of counsel reasonably
satisfactory to the Company that an exemption from registration of such Warrant or Warrant Shares under the Securities Act is available
for such transfer, except that no such opinion shall be required after a registration for resale of the Warrant Shares has become
effective. Upon any exercise of the Warrants prior to effective registration for resale or except as in accordance with Rule 144
under the Securities Act, certificates representing the Warrant Shares shall bear a restrictive legend substantially identical
to that set forth as follows:

 

“The
securities represented by this certificate have not been registered under the Securities Act of 1933, as amended, or the securities
laws of any state (collectively, the “Acts”). Neither the shares nor any interest therein may be offered, sold, transferred,
pledged, or otherwise disposed of in the absence of an effective registration statement with respect to the shares under all of
the applicable Acts, or an opinion of counsel reasonably satisfactory to the Company to the effect that such registrations are
not required.”

 

Any purported transfer
of the Warrant or Warrant Shares not in compliance with the provisions of this section shall be null and void. Stop transfer instructions
have been or will be imposed with respect to the Warrant Shares so as to restrict resale or other transfer thereof, subject to
this Section 2.6.

 

ARTICLE III

 

Anti-Dilution Provisions

 

3.1           Adjustment
of Exercise Price and Number of Warrant Shares. The number of shares of Common Stock for which this Warrant is exercisable
and/or the Exercise Price shall be subject to adjustment from time to time upon the occurrence of certain events as follows:

 

    	5

    	 

    

 

		a)	Subdivision or Combination of Common Stock. If at any time on or after the date of this
Warrant the Company shall (i) subdivide its outstanding shares of Common Stock into a greater number of shares, or (ii) shall pay
a dividend with respect to its outstanding shares of Common Stock in shares of Common Stock or any other equity or equity-equivalent
securities, the Exercise Price in effect immediately prior to such subdivision shall be proportionately reduced and the number
of Warrant Shares receivable shall be proportionately increased so that Registered Holder after such date shall be entitled to
receive, upon payment of the same aggregate Exercise Price as would have been payable before such date, the aggregate number of
shares of Common Stock that, if this Warrant had been exercised immediately prior to such date, the Registered Holder would have
owned upon such exercise and been entitled to receive by virtue of such dividend or subdivision; and, conversely, if at any time
on or after the date of this Warrant the outstanding number of shares of Common Stock shall be combined into a smaller number of
shares, the Exercise Price in effect immediately prior to such combination shall be proportionately increased and the number of
shares receivable upon exercise of the Warrant shall be proportionately decreased so that the Registered Holder after such date
shall be entitled to receive, upon payment of the same aggregate Exercise Price as would have been payable before such date, the
aggregate number of shares of Common Stock that, if this Warrant had been exercised immediately prior to such date, the Registered
Holder would have owned upon such exercise and been entitled to receive by virtue of such combination. Any adjustment under this
subsection (a) shall become effective when the applicable dividend, subdivision or combination becomes effective.

 

		b)	Reclassification, Reorganization, Consolidation or Merger. In case of any reclassification
or change of outstanding securities of the class issuable upon exercise of this Warrant (other than as a result of a subdivision
or combination pursuant to Section 3.1(a)), or in case of any reorganization, consolidation or merger of the Company with
or into another entity, the Company, or such successor entity, as the case may be, shall execute a new Warrant, providing that
the holder of this Warrant shall have the right to exercise such new Warrant and procure upon such exercise in lieu of each Warrant
Share theretofore issuable upon exercise of this Warrant, the kind and amount of shares of stock, other securities, money and property
receivable upon such reclassification, change, reorganization, consolidation or merger by a holder of one share of Common Stock.
Such new Warrant shall provide for adjustments which shall be as nearly equivalent as may be practicable to the adjustments provided
for in this Section 3. The provisions of this subsection shall similarly apply to successive reclassifications, changes,
reorganizations, consolidations and mergers.

 

		c)	Pro Rata Distributions. Except to the extent that Sections 3.1(a) or 3.1(b) would otherwise apply, during
such time as this Warrant is outstanding, if the Company shall declare or make any dividend or other distribution of its assets
(or rights to acquire its assets) to holders of shares of Common Stock, by way of return of capital or otherwise (including, without
limitation, any distribution of cash, stock or other securities, property or options by way of a dividend, spin off, reclassification,
corporate rearrangement, scheme of arrangement or other similar transaction) (a “Distribution”), at any time
after the issuance of this Warrant, then, in each such case, the Registered Holder shall be entitled to participate in such Distribution
to the same extent that the Registered Holder would have participated therein if the Holder had held the Vested Warrant Shares
immediately before the date of which a record is taken for such Distribution, or, if no such record is taken, the date as of which
the record holders of shares of Common Stock are to be determined for the participation in such Distribution; provided, however,
that any such Distributions made with respect to unvested Warrant Shares that are not Expired Warrant Shares shall be held by Parent
and released to the Registered Holder promptly upon such time, if any, as such unvested Warrant Shares shall have become Vested
Warrant Shares and shall have been exercised by the Registered Holder.

 

    	6

    	 

    

  

		d)	Adjustment of Number of Shares. Upon each adjustment in the Exercise Price, the number of
shares of Common Stock purchasable hereunder shall be adjusted, to the nearest whole share, to the product obtained by multiplying
the number of shares of Common Stock purchasable immediately prior to such adjustment in the Exercise Price by a fraction, the
numerator of which shall be the Exercise Price immediately prior to such adjustment and the denominator of which shall be the Exercise
Price immediately thereafter.

 

		e)	Rounding of Calculations; Minimum Adjustment. All calculations under this Section 3.1(a)
and under Section 3.1(b) shall be made to the nearest cent. Any provision of this Section 3.1 to the contrary notwithstanding,
no adjustment in the Exercise Price shall be made if the amount of such adjustment would be less than one percent, but any such
amount shall be carried forward and an adjustment with respect thereto shall be made at the time of and together with any subsequent
adjustment which, together with such amount and any other amount or amounts so carried forward, shall aggregate one percent or
more.

 

3.2           Statement
Regarding Adjustments. Whenever the Exercise Price shall be adjusted as provided in Section 3.1, and upon each change
in the number of shares of the Common Stock issuable upon exercise of this Warrant, the Company shall forthwith file, at the office
of any transfer agent for this Warrant and at the principal office of the Company, a statement showing in detail the facts requiring
such adjustment and the Exercise Price and new number of shares issuable that shall be in effect after such adjustment, and the
Company shall also cause a copy of such statement to be given to the Registered Holder. Each such statement shall be signed by
the Company’s chief financial or accounting officer.

 

3.3           Costs.
The Company shall pay all documentary, stamp, transfer or other transactional taxes attributable to the issuance or delivery of
the Warrant Shares or any certificate or other document evidencing such Warrant Shares upon exercise of this Warrant. The Company
shall, upon request, reimburse the Registered Holder for any such documented taxes assessed against the Registered Holder.

 

    	7

    	 

    

  

3.4           Reservations
of Shares. The Company shall reserve at all times so long as this Warrant remains outstanding, free from preemptive rights,
out of its treasury Common Stock or its authorized but unissued shares of Common Stock, or both, solely for the purpose of effecting
the exercise of this Warrant, sufficient shares of Common Stock to provide for the exercise hereof. The Company shall cause to
be executed and issued the necessary certificate or statement evidencing ownership in book-entry form for the Warrant Shares upon
the exercise of the purchase rights under this Warrant. The Company shall not by any action, including, without limitation, amending
its certificate of incorporation or through any reorganization, transfer of assets, consolidation, merger, dissolution, issue or
sale of securities or any other voluntary action, avoid or seek to avoid the observance or performance of any of the terms of this
Warrant, but will at all times in good faith assist in the carrying out of all such terms and in the taking of all such actions
as may be necessary or appropriate to protect the rights of Registered Holder as set forth in this Warrant against impairment.
Without limiting the generality of the foregoing, the Company will (a) not increase the par value of any Warrant Shares above the
amount payable therefor upon such exercise immediately prior to such increase in par value, (b) take all such action as may be
necessary or appropriate in order that the Company may validly and legally issue fully paid and nonassessable Warrant Shares upon
the exercise of this Warrant and (c) use commercially reasonable efforts to obtain all such authorizations, exemptions or consents
from any public regulatory body having jurisdiction thereof, as may be, necessary to enable the Company to perform its obligations
under this Warrant.

 

3.5           Valid
Issuance. All shares of Common Stock which may be issued upon exercise of this Warrant will, upon issuance by the Company,
be duly and validly issued, fully paid and nonassessable and free from all taxes, liens and charges with respect to the issuance
thereof attributable to any act or omission by the Company, and the Company shall take no action which will cause a contrary result
(including without limitation, any action which would cause the Exercise Price to be less than the par value, if any, of the Common
Stock).

 

ARTICLE IV

 

Vesting

 

4.1           Vesting.
The number of shares of Common Stock purchasable upon the exercise of this Warrant shall be subject to vesting in accordance with
the following provisions:

 

		a)	Vested Warrant Shares. This Warrant shall vest and become exercisable for the number of shares of Common Stock (such
vested shares, the “Vested Warrant Shares”) as follows:

 

(i)          one-sixth
(_______) of the Warrant Shares shall vest at the end of calendar year 2016 if the Net Royalties equal or exceed $10 million for
calendar year 2016;

 

(ii)         an
additional one-third (_______) of the Warrant Shares shall vest at the end of calendar year 2016 if the Net Royalties equal or
exceed $15 million for calendar year 2016;

 

(iii)        one-sixth
(_______) of the Warrant Shares shall vest at the end of calendar year 2017 if the Net Royalties equal or exceed $10 million for
calendar year 2017; and

 

(iv)         an
additional one-third (_______) of the Warrant Shares shall vest at the end of calendar year 2017 if the Net Royalties equal or
exceed $15 million for calendar year 2017.

 

    	8

    	 

    

 

		b)	Net Royalties. For purposes of this Warrant, “Net Royalties” shall mean,
with respect to any calendar year, the gross aggregate royalties and other similar revenue that are both (1) earned by the Company
(or any of its subsidiaries) during the applicable calendar year and (2) subject to the Company’s compliance with Section
4.1(d) below, received within 90 days after the date that such royalties or similar payments have become due and payable in accordance
with the terms of the applicable royalty, licensing or other agreement between the Company (or any of its subsidiaries) and the
party obligated to make such payment, in each case in respect of the licensing of the Linens ‘n Things Brand, less
the commissions and other amounts payable to Earthbound LLC (“Earthbound”) pursuant to that certain Services
Agreement, dated May 8, 2014, by and between LNT Brands LLC (“LNT Brands”) and Earthbound or another broker
during the applicable calendar year and related to the licensing of the Linens ‘n Things Brand. For purposes of this Warrant,
“Linens ‘n Things Brand” shall mean the intellectual property portfolio of registered trademarks, domain names
and other intellectual property rights that encompass the “Linens ‘n Things” brand, licensed, used and exploited
by LNT Brands, and its affiliates, contractual counterparties and licensees.

 

		c)	Adjustments. The number of Warrant Shares subject to vesting set forth in Section 4.1(a)
above shall be adjusted to the extent and in the same manner as the aggregate number of shares of Common Stock is adjusted under
the provisions of Section 3 hereof.

 

		d)	Operating Covenants. The Company hereby covenants that, from the date hereof until the earlier
to occur of (i) a Change of Control or (ii) the end of calendar year 2017, (A) the Company and its subsidiaries shall use their
respective reasonable best efforts to collect such royalties and other payments from such counterparties prior to the expiration
of the 90-day period set forth in Section 4.1(b)(2) and (B) neither the Company nor its subsidiaries shall take or omit to take
any action with the purpose or intent of depriving the Registered Holder of the opportunity for the Warrant Shares to become Vested
Warrant Shares absent an independent and good faith business rationale for its actions. Any payment received by the Company (or
any of its subsidiaries) from or on behalf of a party owing royalties or similar payments with respect to the Linens ‘n Things
Brand who otherwise also owes any other amount(s) to the Company (or any of its subsidiaries) shall be deemed for purposes hereunder
to be a payment in discharge of such party’s obligation relating to the Linens ‘n Things Brand to the extent such obligations
are then due and payable.

 

    	9

    	 

    

 

4.2           Determination
of Vesting. On or before April 30 of the year following the applicable calendar year, the Company shall deliver to the Stockholder
Representative (as defined in the Merger Agreement) a statement setting forth in reasonable detail the amount of Net Royalties
for such calendar year and the number of Vested Warrant Shares (the “Net Royalties Statement”); provided, however,
that the Company shall, upon written notice from the Stockholder Representative, postpone the delivery of the Net Royalties Statement
and the calculations thereunder until June 30 of such year following the applicable calendar year if, in the Stockholder Representative’s
good faith judgment, any royalties or other similar revenue due and payable as of April 30 with respect to the applicable calendar
year may be collected by June 30. Following such time, the Company shall provide the Stockholder Representative and its representatives
reasonable access to the records, properties, personnel and (subject to the execution of customary work paper access letters if
requested) auditors of the Company and its subsidiaries relating to the preparation of the Net Royalties Statement and shall cause
the personnel of the Company and its subsidiaries to reasonably cooperate with the Stockholder Representative in connection with
its review of the Net Royalties Statement. If the Stockholder Representative disagrees with the calculation of Net Royalties set
forth in the Net Royalties Statement, the Stockholder Representative may, within 30 days after receipt of the Net Royalties Statement,
deliver a Notice of Disagreement (as defined in the Merger Agreement) to the Company, in which event, the Stockholder Representative
and the Company shall resolve such disagreement using the procedures set forth in Section 2.3(d) of the Merger Agreement. Following
such resolution as provided in the preceding sentence, the Net Royalties so determined shall be deemed the “Net Royalties”
for the applicable calendar year for all purposes under this Warrant. For the avoidance of doubt, the Registered Holder shall have
no right or entitlement in any circumstances to challenge on its own behalf (unless such Registered Holder is the Stockholder Representative
at such time) any determination of the Net Royalties hereunder.

 

4.3           Expired
Warrant Shares. To the extent any Warrant Shares subject to this Warrant do not vest in accordance with the terms of Section
4(a)(i), (ii), (iii) and/or (iv) above, such Warrant Shares shall be deemed “Expired Warrant
Shares” and shall automatically expire, be canceled and shall not be exercisable under any circumstances.

 

4.4           Change
of Control. In each case, with respect to unvested Warrant Shares that are not Expired Warrant Shares:

 

		a)	in the event of the consummation of a Change of Control of any kind described in clause (i) of
the definition thereof before April 30, 2017, all Warrant Shares that are not already Vested Warrant Shares and are not Expired
Warrant Shares shall immediately vest and be deemed Vested Warrant Shares upon such Change of Control; provided for the
avoidance of doubt, in the event a Change of Control described in clause (i) of the definition thereof is consummated after April
30, 2017, the Warrant Shares shall vest, if applicable, in accordance with the terms of Section 4.1; or

 

		b)	in the event of the consummation of a Change of Control of any kind described in clause (ii) of
the definition thereof before the end of calendar year 2017 (provided, for the avoidance of doubt, in the event a Change
of Control described in clause (ii) of the definition thereof is consummated after the end of calendar year 2017, the Warrant Shares
shall vest, if applicable, in accordance with Section 4.1), the Warrant Shares that are not already Vested Warrant Shares and are
not Expired Warrant Shares shall vest as follows:

 

    	10

    	 

    

  

(i)          if
the value of the aggregate consideration in such Change of Control in respect of the Linens ‘n Things Brand as determined
in good faith by the Company’s board of directors is equal to or in excess of $50,000,000, all such Warrant Shares shall
immediately vest and be deemed Vested Warrant Shares, and the holder of this Warrant shall be entitled to exercise this Warrant
with respect to all such Vested Warrant Shares at any time following consummation of such Change of Control and prior to the Expiration
Date; and

 

(ii)         if
the value of the aggregate consideration in such Change of Control in respect of the Linens ‘n Things Brand as determined
in good faith by the Company’s board of directors is less than $50,000,000, such Warrant Shares shall vest proportionally
based on the value of such consideration between $0 and $50,000,000 (e.g., if the consideration is $40,000,000, 80% of such Warrant
Shares shall vest) and be deemed Vested Warrant Shares, and the holder of this Warrant shall be entitled to exercise this Warrant
with respect to all such Vested Warrant Shares at any time following consummation of such Change of Control and prior to the Expiration
Date.

 

		c)	A “Change of Control” shall mean either (i) the consummation of any transaction
or series of transactions, including, without limitation, the sale, transfer or disposition of all or substantially all of the
Company’s assets or the sale of capital stock of the Company or the reorganization or merger of the Company with or into,
or consolidation with, any other corporation, whereby the holders of the Company’s voting securities prior to the Transaction
do not hold more than 50% of the voting securities of the surviving entity following consummation of the Transaction or (ii) the
sale, assignment, conveyance or other transfer to a third party of all or substantially all of the Company’s (and its subsidiaries’)
rights and interests in the Linens ‘n Things Brand. In the event of (A) a sale, assignment, conveyance or other transfer
to a third party of less than all or substantially all of the Company’s (and its subsidiaries’) rights and interests
in the Linens ‘n Things Brand or (B) any other event that would make it impossible or substantially impractical to calculate
Net Royalties as currently defined, then the Company and the Stockholder Representative shall mutually agree upon an equitable
methodology for calculating the applicable target for such period. Any disagreement regarding the foregoing sentence shall be resolved
pursuant to the procedures set forth in Section 2.3(d) of the Merger Agreement.

 

4.5           Notice
of Vesting. Within 30 days after the final determination of Net Royalties pursuant to Section 4.2 for each of calendar
year 2016 and 2017, the Company will prepare and make available at the Warrant Office for the Registered Holder a computation of
the number of Vested Warrant Shares.

 

    	11

    	 

    

  

ARTICLE V

 

Miscellaneous

  

5.1           Entire
Agreement. This Warrant contains the entire agreement between the Registered Holder and the Company with respect to the Warrant
Shares that it can purchase upon exercise hereof and the related transactions and supersedes all prior arrangements or understanding
with respect thereto.

 

5.2           Governing
Law. This Warrant shall be governed by and construed in accordance with the internal laws of the State of Delaware, without
regard to its conflict of law provisions.

 

5.3           Submission
to Jurisdiction. Each of the parties hereto hereby irrevocably and unconditionally submits in any suit, action or proceeding
arising out of or related to this Agreement or any of the transactions contemplated hereby to the jurisdiction of the courts of
the State of Delaware, the courts of the United States of America for the District of Delaware (each, a “Delaware Court”)
and any appellate courts from any thereof and irrevocably waives any immunity from the jurisdiction of such courts and any claim
of improper venue, forum non conveniens or any similar objection which it might otherwise be entitled to raise in any such suit,
action or proceeding. Each of the parties hereto irrevocably agrees that service of process upon such party by first-class mail
to the address of such party pursuant to Section 5.7 shall be deemed, in every respect, effective service of process upon
such party. The parties further agree that any suit, action or proceeding instituted by a party to this Warrant against another
party to this Warrant shall be initially instituted exclusively in a Delaware Court, and each of the parties hereby voluntarily
and irrevocably waives all its rights, whether granted by statutory, constitutional or common law, to seek a trial before a jury
with respect to such claim.

 

5.4           Waiver
and Amendment. Any term or provision of this Warrant may be waived at any time by the party which is entitled to the benefits
thereof, and any term or provision of this Warrant may be amended or supplemented at any time by the written consent of the parties
(it being agreed that an amendment to or waiver under any of the provisions of Article III of this Warrant shall not be
considered an amendment of the number of Warrant Shares or the Exercise Price). No waiver by any party of any default, misrepresentation,
or breach of warranty or covenant hereunder, whether intentional or not, shall be deemed to extend to any prior or subsequent default,
misrepresentation, or breach of warranty or covenant hereunder or affect in any way any rights arising because of any prior or
subsequent such occurrence.

 

5.5           Illegality.
In the event that any one or more of the provisions contained in this Warrant shall be determined to be invalid, illegal or unenforceable
in any respect for any reason, the validity, legality and enforceability of any such provision in any other respect and the remaining
provisions of this Warrant shall not, at the election of the party for whom the benefit of the provision exists, be in any way
impaired.

 

5.6           Copy
of Warrant. A copy of this Warrant shall be filed among the records of the Company.

 

5.7           Notice.
Any notice or other document required or permitted to be given or delivered to the Registered Holder shall be delivered at, or
sent by certified or registered mail to such Registered Holder at, the last address shown on the books of the Company maintained
at the Warrant Office for the registration of this Warrant or at any more recent address of which the Registered Holder shall have
notified the Company in writing. Any notice or other document required or permitted to be given or delivered to the Company, other
than such notice or documents required to be delivered to the Warrant Office, shall be delivered at, or sent by certified or registered
mail to, the principal office of the Company, or any other address within the continental United States of America as shall have
been designated in writing by the Company delivered to the Registered Holder.

 

    	12

    	 

    

  

5.8           Limitation
of Liability; Not Stockholders. Until the exercise of this Warrant, the Registered Holder shall not have or exercise any rights
by virtue hereof as a stockholder of the Company, including, without limitation, the right to vote, to receive dividends and other
distributions, or to receive notice of, or attend meetings of stockholders or any other proceedings of the Company. Until the exercise
of this Warrant, no provision hereof, and no mere enumeration herein of the rights or privileges of the Registered Holder, shall
give rise to any liability of such Registered Holder for the purchase price of any shares of Common Stock or as a stockholder of
the Company, whether such liability is asserted by the Company or by creditors of the Company.

 

5.9         Exchange,
Loss, Destruction, etc. of Warrant. Upon receipt of evidence reasonably satisfactory to the Company (provided, that an affidavit
of the Registered Holder shall be deemed reasonably satisfactory evidence) of the loss, theft, mutilation or destruction of this
Warrant or any certificate relating to the Warrant Shares, and, in the case of any such loss, theft or destruction, upon delivery
of indemnity or security in such form and amount as shall be reasonably satisfactory to the Company, or, in the event of such mutilation
upon surrender and cancellation of this Warrant, the Company will make and deliver a new Warrant of like tenor, in lieu of such
lost, stolen, destroyed or mutilated Warrant; provided, however, that the original Registered Holder of this Warrant
shall not be required to provide any bond of indemnity and may in lieu thereof provide their agreement of indemnity. Any Warrant
issued under the provisions of this Section 5.9 in lieu of any Warrant alleged to be lost, destroyed or stolen, or in lieu
of any mutilated Warrant, shall constitute an original contractual obligation on the part of the Company. This Warrant shall be
promptly canceled by the Company upon the surrender hereof in connection with any exchange or replacement. The Registered Holder
of this Warrant shall pay all taxes (including securities transfer taxes) and all other reasonable expenses and charges payable
in connection with the preparation, execution and delivery of replacement Warrant(s) pursuant to this Section5.9.

 

5.10       Headings.
The Article and Section and other headings herein are for convenience only and are not a part of this Warrant and shall not affect
the interpretation thereof.

 

5.11         Successors
and Assigns. Subject to applicable securities laws, this Warrant and the rights and obligations evidenced hereby shall inure
to the benefit of and be binding upon the successors of the Company and the successors and permitted assigns of Registered Holder.
The provisions of this Warrant are intended to be for the benefit of all Registered Holders from time to time of this Warrant and
shall be enforceable by any such Registered Holder.

 

5.12         Remedies.
The parties hereto, in addition to being entitled to exercise all rights granted by law, including recovery of damages, will be
entitled to specific performance of their respective rights under this Warrant. Each party agrees that monetary damages would not
be adequate compensation for any loss incurred by reason of a breach by it of the provisions of this Warrant and hereby agrees
to waive and not to assert the defense in any action for specific performance that a remedy at law would be adequate. The rights
and remedies provided in this Warrant are cumulative and are not exclusive of, and are in addition to and not in substitution for,
any other rights or remedies available at law, in equity or otherwise.

 

    	13

    	 

    

 

5.13         Counterparts.
This Warrant may be executed in counterparts, each of which shall be deemed an original, but all of which together shall be deemed
to be one and the same agreement. A signed copy of this Warrant delivered by facsimile, e-mail or other means of electronic transmission
shall be deemed to have the same legal effect as delivery of an original signed copy of this Warrant.

 

5.14         Further
Assurances. The Company and the Registered Holder will take such actions as may be reasonably required or desirable to carry
out the provisions of this Warrant.

 

[Remainder
of Page Intentionally Left Blank; Signature Page Follows]

 

    	14

    	 

    

  

IN WITNESS WHEREOF,
the Company has executed this Warrant as of the date first written above.

 

Dated: August __, 2014

 

	 	SEQUENTIAL BRANDS GROUP, INC.
	 	 
	 	By:	 
	 	Name:  
	 	Title:

 

[Signature
page to Warrant]

 

    	 

    	 

    

 

Accepted and Agreed,

 

[HOLDER]

 

	 	 
	Name of Holder	 
	 	 
	 	 
	Signature	 
	 	 
	 	 
	Street Address	 
	 	 
	 	 
	City	State	 

 

[Signature
page to Warrant]

 

    	 

    	 

    

  

EXHIBIT A

 

PURCHASE FORM

 

TO: Sequential Brands Group, Inc. (the “Company”)

 

1.          The
undersigned hereby elects to purchase ___________ shares of the Common Stock of the Company pursuant to the terms of the attached
Warrant by:

 

		 ̈	A cash payment or cancellation of indebtedness, and tenders herewith payment of the purchase price for such shares in full,
together with all applicable transfer taxes, if any.

		 ̈	The net exercise provisions of the attached warrant.

 

2.          Please
issue a certificate(s) or statement evidencing ownership in book-entry form representing said shares of Common Stock in the name
of the undersigned.

 

	 	Signature of Holder
	 	 
	 	By:	 
	 	Name:
	 	Title:

 

    	 

    	 

    

  

EXHIBIT B

 

ASSIGNMENT

 

For value received, _____________________________,
hereby sells, assigns and transfers unto __________________________ [all of][__________ shares of] the within Warrant, together
with all right, title and interest therein and does hereby irrevocably constitute and appoint ______________________, attorney,
to transfer said Warrant on the books of the Company, with full power of substitution.

 

	 	 	 

 

Dated: ___________________, 201_

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