Document:

Exhibit 10.1

      

       

      PURCHASE AGREEMENT

       

      dated July 15, 2019

       

      between

       

      AQUESTIVE THERAPEUTICS, INC.

       

      and

       

      THE PURCHASER NAMED HEREIN

       

      $70,000,000 12.5% SENIOR SECURED NOTES DUE 2025

      AND

      WARRANTS FOR 2,000,000 SHARES OF COMMON STOCK

       

      
        
          

      

      
      Table of Contents

       

      	 	 	
              Page

            
	
              ARTICLE I

            
	
              INTRODUCTORY

            
	 	 	 
	
              Section 1.1

            	
              Introductory

            	
              1

            
	 	 	 
	
              ARTICLE II

            
	
              RULES OF CONSTRUCTION AND DEFINED TERMS

            
	 	 	 
	
              Section 2.1

            	
              Rules of Construction and Defined Terms

            	
              1

            
	 	 	 
	
              ARTICLE III

            
	
              SALE AND PURCHASE OF NOTES AND WARRANTS; CLOSING; ALLOCATION OF PURCHASE PRICE

            
	 	 	 
	
              Section 3.1

            	
              Sale and Purchase of Notes and Warrants; Closing

            	
              1

            
	
              Section 3.2

            	
              Allocation of Purchase Price

            	
              3

            
	 	 	 
	
              ARTICLE IV

            
	
              REPRESENTATIONS, WARRANTIES AND AGREEMENTS OF PURCHASER

            
	 	 	 
	
              Section 4.1

            	
              Purchase for Investment and Restrictions on Resales

            	
              3

            
	
              Section 4.2

            	
              Purchaser Status

            	
              4

            
	
              Section 4.3

            	
              Source of Funds; ERISA Matters

            	
              4

            
	
              Section 4.4

            	
              Due Diligence

            	
              6

            
	
              Section 4.5

            	
              Enforceability of this Purchase Agreement

            	
              6

            
	
              Section 4.6

            	
              Tax Matters

            	
              6

            
	
              Section 4.7

            	
              Reliance for Opinions

            	
              7

            
	 	 	 
	
              ARTICLE V

            
	
              REPRESENTATIONS AND WARRANTIES OF THE ISSUER

            
	 	 	 
	
              Section 5.1

            	
              Securities Laws

            	
              7

            
	
              Section 5.2

            	
              Investment Company Act Matters

            	
              8

            
	
              Section 5.3

            	
              Use of Proceeds; Margin Regulations

            	
              8

            
	
              Section 5.4

            	
              Exchange Act Documents

            	
              8

            
	
              Section 5.5

            	
              Financial Statements

            	
              8

            
	
              Section 5.6

            	
              Organization; Power; Authorization; Enforceability

            	
              8

            
	
              Section 5.7

            	
              Organizational Information and Equity Interests

            	
              9

            
	
              Section 5.8

            	
              Common Stock

            	
              9

            
	
              Section 5.9

            	
              Dilutive Securities

            	
              9

            
	
              Section 5.10

            	
              Governmental and Third Party Authorizations

            	
              9

            
	
              Section 5.11

            	
              No Conflicts

            	
              10

            
	
              Section 5.12

            	
              No Violation or Default

            	
              10

            
	
              Section 5.13

            	
              No Material Adverse Change

            	
              10

            

      

      

      
        i

        
          

      

      	
              Section 5.14

            	
              Compliance with ERISA

            	
              11

            
	
              Section 5.15

            	
              Tax Matters

            	
              11

            
	
              Section 5.16

            	
              Legal Proceedings

            	
              11

            
	
              Section 5.17

            	
              Solvency

            	
              12

            
	
              Section 5.18

            	
              Existing Indebtedness

            	
              12

            
	
              Section 5.19

            	
              Material Contracts

            	
              12

            
	
              Section 5.20

            	
              Properties

            	
              12

            
	
              Section 5.21

            	
              Intellectual Property

            	
              13

            
	
              Section 5.22

            	
              Environmental Matters

            	
              14

            
	
              Section 5.23

            	
              Labor Matters

            	
              15

            
	
              Section 5.24

            	
              Insurance

            	
              15

            
	
              Section 5.25

            	
              No Unlawful Payments

            	
              15

            
	
              Section 5.26

            	
              Compliance with Anti-Money Laundering Laws

            	
              16

            
	
              Section 5.27

            	
              Sanctions

            	
              16

            
	
              Section 5.28

            	
              Disclosure Controls

            	
              16

            
	
              Section 5.29

            	
              Accounting Controls

            	
              17

            
	
              Section 5.30

            	
              Licenses and Permits

            	
              17

            
	
              Section 5.31

            	
              Clinical Trials

            	
              18

            
	
              Section 5.32

            	
              Regulatory Filings

            	
              18

            
	
              Section 5.33

            	
              Compliance with Certain Regulatory Matters

            	
              18

            
	
              Section 5.34

            	
              Absence of Certain Regulatory Actions

            	
              19

            
	
              Section 5.35

            	
              Collateral Agreement

            	
              19

            
	 	 	 
	
              ARTICLE VI

            
	
              CONDITIONS TO CLOSING

            
	 	 	 
	
              Section 6.1

            	
              Issuer’s Counsel Opinion

            	
              20

            
	
              Section 6.2

            	
              Purchasers’ Counsel Opinion

            	
              20

            
	
              Section 6.3

            	
              Certification as to Purchase Agreement

            	
              20

            
	
              Section 6.4

            	
              Authorizations

            	
              20

            
	
              Section 6.5

            	
              Offering of Notes and Warrants

            	
              20

            
	
              Section 6.6

            	
              CUSIP Numbers

            	
              21

            
	
              Section 6.7

            	
              Further Information

            	
              21

            
	
              Section 6.8

            	
              Consummation of Transactions

            	
              21

            
	
              Section 6.9

            	
              No Actions

            	
              21

            
	
              Section 6.10

            	
              Consents

            	
              21

            
	
              Section 6.11

            	
              Notes Collateral Requirements

            	
              21

            
	
              Section 6.12

            	
              Insurance

            	
              22

            
	
              Section 6.13

            	
              Warrants

            	
              22

            
	 	 	 
	
              ARTICLE VII

            
	
              ADDITIONAL COVENANTS

            
	 	 	 
	
              Section 7.1

            	
              DTC

            	
              22

            
	
              Section 7.2

            	
              Expenses

            	
              22

            
	
              Section 7.3

            	
              Confidentiality; Public Announcement

            	
              23

            
	
              Section 7.4

            	
              Right of First Offer

            	
              24

            

      

      

      
        ii

        
          

      

      	
              ARTICLE VIII

            
	
              SURVIVAL OF CERTAIN PROVISIONS

            
	 	 	 
	
              Section 8.1

            	
              Survival of Certain Provisions

            	
              24

            
	 	 	 
	
              ARTICLE IX

            
	
              NOTICES

            
	 	 	 
	
              Section 9.1

            	
              Notices

            	
              24

            
	 	 	 
	
              ARTICLE X

            
	
              SUCCESSORS AND ASSIGNS

            
	 	 	 
	
              Section 10.1

            	
              Successors and Assigns

            	
              25

            
	 	 	 
	
              ARTICLE XI

            
	
              SEVERABILITY

            
	 	 	 
	
              Section 11.1

            	
              Severability

            	
              25

            
	 	 	 
	
              ARTICLE XII

            
	
              WAIVER OF JURY TRIAL

            
	 	 	 
	
              Section 12.1

            	
              WAIVER OF JURY TRIAL

            	
              25

            
	 	 	 
	
              ARTICLE XIII

            
	
              GOVERNING LAW; CONSENT TO JURISDICTION

            
	 	 	 
	
              Section 13.1

            	
              Governing Law; Consent to Jurisdiction

            	
              25

            
	 	 	 
	
              ARTICLE XIV

            
	
              COUNTERPARTS

            
	 	 	 
	
              Section 14.1

            	
              Counterparts

            	
              25

            
	 	 	 
	
              ARTICLE XV

            
	
              TABLE OF CONTENTS AND HEADINGS

            
	 	 	 
	
              Section 15.1

            	
              Table of Contents and Headings

            	
              26

            
	 	 	 
	
              ARTICLE XVI

            
	
              TAX DISCLOSURE

            
	 	 	 
	
              Section 16.1

            	
              Tax Disclosure

            	
              26

            

      

      

      
        iii

        
          

      

      	
              Annex A

            	
              Rules of Construction and Defined Terms

            
	
              Exhibit A

            	
              Form of Warrant

            
	
              Schedule 1

            	
              Purchaser

            
	
              Schedule 5.9

            	
              Dilutive Securities

            
	
              Schedule 5.10

            	
              Governmental and Third Party Authorizations

            
	
              Schedule 5.21

            	
              Intellectual Property

            
	
              Schedule 5.30

            	
              Permits

            

       

      

      
        iv

        
          

      

      
      PURCHASE AGREEMENT

       

      July 15, 2019

       

      To the Purchaser named in Schedule 1

       

      Ladies and Gentlemen:

       

      Aquestive Therapeutics, Inc., a Delaware corporation (the “Issuer”), hereby covenants and agrees with you as follows:

       

      ARTICLE I

      INTRODUCTORY

       

      Section 1.1         Introductory. The Issuer proposes, subject to the
        terms and conditions stated herein, to issue and sell to the purchaser named in Schedule 1 (the “Purchaser”) and to the Other Purchasers $70,000,000 in aggregate principal amount of the Issuer’s 12.5% Senior Secured Notes due 2025 and the Warrants. The principal amount of Notes to be purchased by the Purchaser pursuant to this Purchase Agreement, and the number of shares of the Issuer’s Common Stock that may be
        purchased pursuant to the related Warrants, are set forth opposite the Purchaser’s name in Schedule 1. The Notes to be sold to the Purchaser and the Other Purchasers are to be issued on the Closing Date pursuant to, and subject to the terms
        and conditions of, the Indenture.

       

      The Notes and the Warrants will be offered and sold to the Purchaser and the Other Purchasers (collectively, the “Purchasers”) in
        transactions exempt from the registration requirements of the Securities Act.

       

      ARTICLE II

      RULES OF CONSTRUCTION AND DEFINED TERMS

       

      Section 2.1          Rules of Construction and Defined Terms. The rules of construction set forth in Annex A shall apply to this Purchase Agreement and are hereby incorporated by reference into this Purchase Agreement as if set forth fully in this Purchase Agreement.
        Capitalized terms used but not otherwise defined in this Purchase Agreement shall have the respective meanings given to such terms in Annex A, which is hereby incorporated by reference into this Purchase Agreement as if set forth fully in
        this Purchase Agreement.

       

      ARTICLE III

      SALE AND PURCHASE OF NOTES AND WARRANTS; CLOSING; ALLOCATION OF PURCHASE PRICE

       

      Section 3.1          Sale and Purchase of Notes and Warrants; Closing.

       

      (a)        On the basis of the representations and warranties contained in, and subject to the terms and conditions of, this Purchase Agreement and the
        Indenture, the Issuer will issue and sell to the Purchaser, and the Purchaser will purchase, on the Closing Date, the principal amount of Notes, and a Warrant to purchase the number of shares of Common Stock of the Issuer, set forth opposite the
        Purchaser’s name in Schedule 1.

       

      
        1

        
          

      

      (b)          The Purchaser will purchase the principal amount of Notes, and
        a Warrant to purchase the number of shares of Common Stock of the Issuer, set forth in Schedule 1 on the Closing Date at a purchase price equal to 100% of the principal amount of such Notes (the “Price”). Contemporaneously with
        entering into this Purchase Agreement, the Issuer is entering into separate purchase agreements (the “Other Agreements”) substantially identical to this Purchase Agreement with other purchasers (the “Other Purchasers”), providing for
        the sale on the Closing Date to each of the Other Purchasers of the Notes in the principal amount specified opposite its name in Schedule 1 to such Other Agreement, and Warrants to purchase the number of shares of Common Stock of the Issuer
        specified opposite its name in Schedule 1 to such Other Agreement, at a purchase price equal to 100% of the principal amount of such Notes (the purchase prices to be paid pursuant to such Other Agreements are collectively referred to,
        together with the Price, as the “Purchase Price”). The Issuer shall not be obligated to deliver, and the Purchaser shall not be required to purchase, any of the Notes or the Warrants except upon delivery of and payment for all the Notes and
        the Warrants to be purchased by the Other Purchasers under the Purchase Agreements on the Closing Date and subject to the satisfaction or waiver of the respective terms and conditions hereunder and thereunder.

       

      (c)          On the Closing Date, the Issuer will deliver one or more Global Securities for the account of DTC, as well as any Definitive Securities to the
        relevant Purchasers, evidencing the aggregate principal amount of Notes to be acquired by all Purchasers pursuant to the Purchase Agreements on the Closing Date against payment by each such Purchaser of its respective portion of the aggregate
        Purchase Price for its beneficial interest therein by wire transfer of immediately available funds to the Trustee Closing Account. On the Closing Date, the Issuer will deliver to each Purchaser a Warrant dated the Closing Date and registered in the
        name of such Purchaser, evidencing the right of such Purchaser to purchase the number of shares of the Issuer’s Common Stock set forth opposite such Purchaser’s name in Schedule 1. The Issuer shall cause the Trustee to hold all such funds
        received in the Trustee Closing Account in trust for the Purchasers pending completion of the closing of the transactions contemplated by the Purchase Agreements. Upon receipt by the Trustee of the Purchase Price and the satisfaction of the
        conditions to closing set forth in Article VI, the Issuer shall cause the Trustee to disburse the Purchase Price in accordance with written instructions provided by the Issuer to the Trustee.

       

      (d)        If the aggregate Purchase Price shall not have been received by the Trustee by 3:30 p.m. (New York City time) on the Closing Date, or if the closing
        of the transactions contemplated by the Purchase Agreements shall not otherwise be capable of being consummated by 3:30 p.m. (New York City time) on the Closing Date, then each Purchaser that has paid its respective portion of the aggregate
        Purchase Price shall have the right to instruct the Trustee in writing at or after 3:30 p.m. (New York City time) on the Closing Date to return, and the Issuer shall cause the Trustee to return, such portion of the Purchase Price to the Purchaser
        prior to the close of business on the Closing Date or as soon thereafter as reasonably practicable, in which case the Purchaser shall, at its election, be relieved of all obligations (other than confidentiality obligations) under this Purchase
        Agreement.

       

      
        2

        
          

      

      Section 3.2          Allocation of Purchase Price. The Issuer and the Purchaser hereby acknowledge and agree that the Notes
        and the Warrant to be issued by the Issuer to the Purchaser on the Closing Date will constitute an “investment unit” for purposes of Section 1273(c)(2) of the Code. In accordance with Section 1273(b)(2) of the Code and Section 1273(c)(2)(A) of the
        Code, the issue price of the investment unit will be 100% of the principal amount of such Notes. Allocating that issue price among such Notes and such Warrant based on their relative fair market values, as required by Section 1273(c)(2)(B) of the
        Code and U.S. Treasury Regulations Section 1.1273-2(h)(1), results in (a) such Notes having an issue price of 90.56% of the principal amount of such Notes and (b) such Warrant having an issue price of 9.44% of the principal amount of such Notes.
        The Issuer and the Purchaser agree to prepare their respective U.S. federal income tax returns, including statements and reports related thereto, as the case may be, in a manner consistent with the foregoing agreement, to the extent such returns,
        statements and reports are required to be filed.

       

      ARTICLE IV

      REPRESENTATIONS, WARRANTIES AND AGREEMENTS OF PURCHASER

       

      The Purchaser agrees and acknowledges that (a) the Issuer and counsel to the Issuer may rely upon the accuracy of and performance of obligations under the representations, warranties and agreements
        of the Purchaser contained in this Article IV and (b) the Placement Agent may rely upon the accuracy of and performance of obligations under the representations, warranties and agreements of the Purchaser contained in Sections 4.1, 4.2 and 4.4.

       

      Section 4.1          Purchase for Investment and Restrictions on Resales.
        The Purchaser:

       

      (a)          acknowledges that (i) none of the Notes or the Warrant have been or will be registered under the Securities Act or the
        Laws of any U.S. state or other jurisdiction relating to securities matters and (ii) neither the Notes nor the Warrant may be offered, sold, pledged or otherwise transferred except as set forth in the Transaction Documents and the legend regarding
        transfers on the Notes;

       

      (b)         agrees that, if it should resell or otherwise transfer the Notes or the Warrant, in whole or in part, it will do so only
        pursuant to an exemption from, or in a transaction not subject to, registration under the Securities Act, the Laws of any applicable state or other jurisdiction relating to securities matters and in accordance with the restrictions and requirements
        of the provisions of the Transaction Documents and the legend regarding transfers on the Notes and only to a Person whom it reasonably believes, at the time any buy order for such Notes or Warrant is originated, is (i) the
        Issuer or a Subsidiary of the Issuer, (ii) for so long as such Notes or Warrant are eligible for resale pursuant to Rule 144A, a QIB that purchases for its own account or for the account of a QIB, to which notice is given that the transfer is being
        made in reliance on Rule 144A, (iii) a Person outside the United States in an offshore transaction in compliance with Rule 903 or 904 of Regulation S (if available) or (iv) an Accredited Investor that is purchasing such Notes or Warrant for its own
        account or for the account of such an Accredited Investor for investment purposes and not with a view to, or for offer or sale in connection with, any distribution in violation of the Securities Act, in each case unless consented to by the Issuer
        in writing;

       

      
        3

        
          

      

      (c)          acknowledges and agrees that, as a condition to the transfer of any Notes or the Warrant, each transferee of such Notes
        or Warrant shall be deemed to have given, and may be required expressly to give, the assurances set forth in Section 4.3 as to itself;

       

      (d)        acknowledges the restrictions and requirements contained in the Transaction Documents applicable to transfers of the Notes and the Warrant and the
        legend regarding transfers on the Notes and agrees that it will only offer or sell the Notes and the Warrant in accordance with such restrictions and requirements; and

       

      (e)         represents that it is purchasing the Notes and the Warrant for investment purposes and not with a view toward resale or distribution thereof in
        contravention of the requirements of the Securities Act; provided, however, that the Purchaser reserves the right to resell or otherwise transfer the Notes and the Warrant at any time in compliance with this Section 4.1 and in
        accordance with its investment objectives.

       

      Section 4.2         Purchaser Status. The Purchaser represents and
        warrants that, as of the date hereof, (a) if it is purchasing a Rule 144A Global Security or would purchase a Rule 144A Global Security except that it cannot or opts not to hold a beneficial interest in a Global Security, it is a QIB and is
        purchasing the Notes and the Warrant for its own account or for the account of a QIB, (b) if it is purchasing a Regulation S Global Security or would purchase a Regulation S Global Security except that it cannot or opts not to hold a beneficial
        interest in a Global Security, it is a Person outside the United States purchasing the Notes and the Warrant in an offshore transaction in compliance with Regulation S or (c) if neither clause (a) nor clause (b) is applicable, it is an Accredited
        Investor.

       

      Section 4.3          Source of Funds; ERISA Matters.

       

      (a)         The Purchaser represents, warrants and covenants that at least one of the following statements is an accurate representation as to each source of
        funds (a “Source”) to be used by the Purchaser to pay the purchase price of any Note or Warrant to be purchased by the Purchaser under the Transaction Documents and with respect to its holding of such Note or such Warrant:

       

      (i)          the Source either (A) does not and will not include Plan Assets of any employee benefit plan,
          other than a plan exempt from the coverage of ERISA, or (B) includes and will include only assets that are not considered Plan Assets by reason of being held in a separate account of an insurance company that is maintained solely in
        connection with fixed contractual obligations of the insurance company under which the amounts payable, or credited, to the plan and to any participant or beneficiary of the plan (including an annuitant) are not affected in any manner by the investment performance of the separate account;

       

      (ii)         the Source is a governmental plan; or

       

      (iii)        the Source does include Plan Assets of an employee benefit plan subject to ERISA, but the use of such Plan Assets to purchase and hold one or more Notes or Warrants
        will not constitute a non-exempt prohibited transaction within the meaning of Section 406 or 407 of ERISA or Section 4975 of the Code, and one of the following applies:

       

      
        4

        
          

      

      (w)          (A) the Source is an “insurance company general account” within the meaning of PTE 95-60 (issued July 12, 1995, as subsequently amended), (B) there is no employee
        benefit plan, treating as a single plan all plans maintained by the same employer or employee organization, with respect to which the amount of the general account reserves and liabilities for all contracts held by or on behalf of such plan exceeds
        ten percent (10%) of the total reserves and liabilities of such general account (exclusive of separate account liabilities) plus surplus, as set forth in the NAIC Annual Statement filed with the Purchaser’s state of domicile, and (C) the purchase
        and holding of Notes or Warrants is exempt under the provisions of PTE 95-60;

       

      (x)          (A) the Source is either (1) an insurance company pooled separate account, within the meaning of PTE 90-1 (issued January 29, 1990), or (2) a bank collective
        investment fund, within the meaning of PTE 91-38 (issued July 12, 1991, as subsequently amended), (B) no employee benefit plan or group of plans maintained by the same employer or employee organization beneficially owns more than ten percent (10%)
        of all assets allocated to such pooled separate account or collective investment fund and (C) the purchase and holding of Notes or Warrants is covered by either PTE 90-1 or PTE 91-38, as applicable;

       

      (y)           the Source constitutes assets of an “investment fund” (within the meaning of Part VI of the QPAM Exemption) managed by a “qualified professional asset manager” or
        “QPAM” (within the meaning of Part VI of the QPAM Exemption), and the conditions of Part I of the QPAM Exemption are satisfied; or

       

      (z)          the Source constitutes assets of a “plan(s)” (within the meaning of Part IV of PTE 96-23) managed by an “in-house asset manager” or “INHAM” (within the meaning of
        Part IV of PTE 96-23), and the conditions of Part I of PTE 96-23 are satisfied.

       

      As used in this Section 4.3(a), the terms “employee benefit plan”, “governmental plan” and “separate account” shall have the respective meanings assigned to such terms in Section 3 of ERISA.

       

      (b)         The Purchaser represents, warrants and covenants that, if any Source to be used by the Purchaser to pay the purchase price of any Note or Warrant
        under the Transaction Documents consists of assets of a benefit plan that is not subject to ERISA, either (i) such benefit plan is not a governmental plan, non-U.S. plan (as described in Section 4(b) of ERISA), church plan or other plan subject to
        Law that is substantially similar to Section 406 or 407 of ERISA or Section 4975 of the Code (“Similar Law”) or (ii) its purchase and holding of Notes and the Warrant do not and will not constitute a violation of Similar Law.

       

      
        5

        
          

      

      Section 4.4          Due Diligence. The
        Purchaser acknowledges that, prior to the date of this Purchase Agreement, (a) it has made, either alone or together with its advisors, such separate and independent investigation of the Issuer and its business, financial condition, prospects and
        management as the Purchaser deems to be, or such advisors have advised to be, necessary or advisable in connection with the purchase of the Notes and the Warrant pursuant to the transactions contemplated by this Purchase Agreement, (b) it and its
        advisors have received all information and data that it and such advisors believe to be necessary in order to reach an informed decision as to the advisability of the purchase of the Notes and the Warrant pursuant to the transactions contemplated
        by this Purchase Agreement, (c) it understands the nature of the potential risks and potential rewards of the purchase of the Notes and the Warrant, (d) it is a sophisticated investor with investment experience and has the ability to bear complete
        loss of its investment, whether as a result of an Event of Default on the Notes or any insolvency, liquidation or winding up of the Issuer or otherwise, and (e) it has such knowledge and experience in financial and business matters that it is
        capable of evaluating the merits and risks of purchasing the Notes and the Warrant and can bear the economic risks of investing in the Notes and the Warrant for an indefinite period of time, including the complete loss of its investment. The
        Purchaser acknowledges that it has obtained its own attorneys, business advisors and tax advisors as to legal, business and tax advice (or has decided not to obtain such advice) and has not relied in any respect on the Issuer or the Placement Agent
        for such advice. The Purchaser has had a reasonable time prior to the date of this Purchase Agreement to ask questions and receive answers concerning the Issuer and its business and the terms and conditions of the offering of the Notes and the
        Warrant and the transactions contemplated hereby and to obtain any additional information that the Issuer possesses or could acquire without unreasonable effort or expense, and has generally such knowledge and experience in business and financial
        matters and with respect to investments in securities as to enable the Purchaser to understand and evaluate the risks of such investment and form an investment decision with respect thereto. Except for (i) the representations, warranties and
        covenants made by the Issuer in the Transaction Documents and (ii) the legal opinions provided to the Purchaser in connection with the transactions contemplated by the Transaction Documents, the Purchaser is relying on its own investigation and
        analysis in entering into the transactions contemplated hereby.

       

      Section 4.5          Enforceability of this Purchase Agreement. This
        Purchase Agreement has been duly authorized, executed and delivered by the Purchaser and constitutes the valid, legally binding and enforceable obligation of the Purchaser, except as enforceability may be limited by applicable bankruptcy,
        insolvency, reorganization, moratorium or similar Laws affecting creditors’ rights generally and by general principles of equity.

       

      Section 4.6          Tax Matters.

       

      (a)          Except as otherwise required by Law, the Purchaser agrees to treat, and shall treat, the Notes as indebtedness of the Issuer for U.S. federal
        income tax purposes.

       

      (b)         The Purchaser understands and acknowledges that, if Definitive Securities are issued, the Purchaser must provide the Issuer, the Trustee or any
        Paying Agent with the applicable U.S. federal income tax certifications (generally, on IRS Form W-9 (or successor applicable form) in the case of a Person that is a United States person (for purposes of this Section 4.6(b), within the meaning of
        Section 7701(a)(30) of the Code) or on an appropriate IRS Form W-8 (or successor applicable form) in the case of a Person that is not a United States person).

       

      
        6

        
          

      

      (c)         The Purchaser represents and warrants that (i) it has not relied upon the Issuer or the Placement Agent for any tax advice or disclosure of tax
        consequences arising from the purchase, ownership or disposition of the Notes and the Warrant and (ii) it has relied upon its own tax counsel or advisors with respect to any tax consequences arising from the purchase, ownership or disposition of
        the Notes and the Warrant.

       

      Section 4.7          Reliance for Opinions. The Purchaser acknowledges
        and agrees that the Issuer and, for purposes of the opinions to be delivered to the Purchaser pursuant to Sections 6.1 and 6.2, counsel for the Issuer and counsel for the Purchasers, respectively, may rely, without any independent verification
        thereof, upon the accuracy of the representations and warranties of the Purchaser, and compliance by the Purchaser with its agreements, contained in Sections 4.1, 4.2 and 4.3, and the Purchaser hereby consents to such reliance.

       

      ARTICLE V

      REPRESENTATIONS AND WARRANTIES OF THE ISSUER

       

      The Issuer represents and warrants to the Purchaser as of the date hereof as follows:

       

      Section 5.1          Securities

          Laws.

       

      (a)          No securities of the same class (within the meaning of Rule 144A(d)(3)(i) under the Securities Act) as the Notes or the
        Warrants have been issued and sold by the Issuer within the six-month period immediately prior to the date hereof.

       

      (b)         Assuming the accuracy of the representations and warranties of the Purchasers in each of the Purchase Agreements and
        assuming the accuracy of the statements in the certificate to be delivered by the Placement Agent pursuant to Section 6.5, neither the Issuer nor any affiliate (as defined in Rule 144 under the Securities Act) of the Issuer has directly, or through
        any agent, (i) sold, offered for sale, solicited offers to buy or otherwise negotiated in respect of any security (as defined in the Securities Act) that is or will be integrated with the sale of the Notes or the Warrants in a manner that would
        require the registration under the Securities Act of the Notes or the Warrants, (ii) engaged in any form of general solicitation or general advertising in connection with the offering of the Notes or the Warrants (as those terms are used in
        Regulation D under the Securities Act), or in any manner involving a public offering within the meaning of Section 4(a)(2) of the Securities Act, including publication or release of articles, notices or other communications published in any
        newspaper, magazine or similar medium or broadcast over television, radio or internet, or any seminar or meeting whose attendees have been invited by any general solicitation or general advertising, or (iii) engaged in
        any directed selling efforts within the meaning of Rule 902(c) of Regulation S.

       

      (c)          Assuming the accuracy of the representations and warranties of the Purchasers in each of the Purchase Agreements and
        assuming the accuracy of the statements in the certificate to be delivered by the Placement Agent pursuant to Section 6.5, (i) the Indenture is not required to be qualified under the U.S. Trust Indenture Act of 1939, as amended, and (ii) no registration under the Securities Act of the Notes or the Warrants is required in connection with the sale thereof to the Purchasers as contemplated by the Transaction Documents.

       

      
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      Section 5.2         Investment Company Act Matters. After giving effect to the offering and sale of the Notes and the
        Warrants, the Issuer will not be required to register as an “investment company” or “controlled” by an “investment company” within the meaning of the U.S. Investment Company Act of 1940, as amended.

       

      Section 5.3         Use of Proceeds; Margin Regulations. No part of
        the proceeds from the sale of the Notes or the Warrants under the Transaction Documents will be used, directly or indirectly, for the purpose of purchasing or carrying any margin stock within the meaning of Regulation U of the Board of Governors of
        the Federal Reserve System (12 CFR 221), or for the purpose of purchasing or carrying or trading in any securities under such circumstances as to involve the Issuer in a violation of Regulation X of said Board (12 CFR 224) or to involve any broker
        or dealer in a violation of Regulation T of said Board (12 CFR 220). The Issuer is not engaged in the business of extending credit for the purpose of purchasing or carrying margin stock within the meaning of Regulation U of the Board of Governors
        of the Federal Reserve System (12 CFR 221). As used in this Section 5.3, the terms “margin stock” and “purpose of purchasing or carrying” shall have the meanings ascribed to them in said Regulation U.

       

      Section 5.4          Exchange Act Documents. The documents filed by the Issuer with the Commission
        pursuant to the Exchange Act since December 31, 2018 (excluding any documents or portions thereof furnished to, rather than filed with, the Commission) (such documents, the “Exchange Act Documents”), when they were filed with the Commission,
        conformed as to form in all material respects with the requirements of the Exchange Act, and none of such documents contained any untrue statement of a material fact or omitted to state a material fact necessary in order to make the statements
        therein, in the light of the circumstances under which they were made, not misleading.

       

      Section 5.5          Financial Statements. The financial statements included in the Exchange Act
        Documents, together with the related notes and schedules, present fairly in all material respects the consolidated financial position of the Issuer as of the respective dates indicated and the consolidated results of operations, cash flows and
        changes in shareholders’ equity of the Issuer for the respective periods specified and have been prepared in all material respects in compliance with the requirements of the Exchange Act and in conformity with GAAP applied on a consistent basis
        during the periods covered thereby, except as may be expressly stated in the related notes thereto and, in the case of unaudited financial statements, subject to normal and recurring year-end adjustments that, if presented, would not differ
        materially from that included in the audited financial statements. The other financial and accounting data of the Issuer contained in the Exchange Act Documents are accurately and fairly presented and prepared on a basis consistent with the
        financial statements or the books and records of the Issuer in all material respects.

       

      Section 5.6          Organization; Power; Authorization; Enforceability. The Issuer has been duly organized, is legally
        existing and is in good standing under the Laws of the State of Delaware. The Issuer does not have any Subsidiaries except the following Immaterial Subsidiaries: Midasol Therapeutics, GP; and Midasol Therapeutics, LP. MSRX US, LLC has had its
        existence as a Delaware limited liability company canceled, and such entity did not at any point have any material assets, liabilities or operations. The Issuer is duly qualified as a foreign corporation (or other equivalent entity) in all
        jurisdictions in which the nature of its business or location of its properties require such qualifications, except where the failure to be so qualified would not reasonably be expected to have a Material Adverse Effect. The Issuer has the
        requisite corporate power and authority to own, lease or operate the properties and assets it purports to own, lease or operate, to carry on its business as presently conducted and to execute, deliver and perform its obligations under each
        Transaction Document except where the failure to have such power and authority to own, lease or operate such properties and assets and carry on such business would not reasonably be expected to have a Material Adverse Effect. Each Transaction
        Document entered into as of the date hereof has been duly authorized, executed and delivered by the Issuer and constitutes the valid, legally binding and, assuming due authorization, execution and delivery by all other parties thereto, enforceable
        obligation of the Issuer (subject, in each case, to general equitable principles, insolvency, liquidation, reorganization and other Laws of general application relating to creditors’ rights). Each Transaction Document to be entered into after the
        date hereof will be duly authorized, executed and delivered by the Issuer and will constitute the valid, legally binding and, assuming due authorization, execution and delivery by all other parties thereto, enforceable obligation of the Issuer
        (subject, in each case, to general equitable principles, insolvency, liquidation, reorganization and other Laws of general application relating to creditors’ rights).

       

      
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      Section 5.7          Organizational
          Information and Equity Interests. The Issuer’s principal place of business is Warren, New Jersey. The Issuer’s U.S. taxpayer identification number is 82-3827296. All of the outstanding Equity Interests in the Issuer have been duly authorized
        and validly issued and, to the extent applicable, are fully paid and non-assessable, free and clear of all Liens except Permitted Liens and the Liens created by the Security Documents.

       

      Section 5.8          Common Stock. The shares of Common Stock of the Issuer to be issued upon the exercise of the Warrants
        have been reserved by the Issuer and, upon exercise of the Warrants in accordance with their terms, will be validly issued, fully paid and non-assessable.

       

      Section 5.9         Dilutive Securities. Except as set forth in Schedule 5.9, (i) there are no outstanding rights
        (including pre-emptive rights), warrants or options to acquire, or instruments convertible into or exchangeable for, any shares of Capital Stock in the Issuer or any of its Subsidiaries and (ii) there is no contract, commitment, agreement,
        understanding or arrangement of any kind relating to the issuance of (A) any Capital Stock of the Issuer or any such Subsidiary, (B) any such convertible or exchangeable securities or (C) any such rights, warrants or options.

       

      Section 5.10       Governmental and Third Party Authorizations. No consent, approval, authorization, license,
        registration, qualification or order of, or filing or declaration with, any Governmental Authority, any self-regulatory organization or any other non-governmental regulatory authority (including the Nasdaq Stock Market LLC) or approval of the
        shareholders of the Issuer or any other Person is required in connection with (a) the execution or delivery by the Issuer of any Transaction Document or the performance of obligations by the Issuer under any Transaction Document (including the
        issuance and sale of the Notes and the Warrants), (b) the transactions contemplated by the Transaction Documents, (c) the grant by the Issuer of the Liens granted or purported to be granted by it pursuant to the Security Documents or (d) the
        perfection of the Liens created under the Security Documents, other than (i) such consents, approvals, authorizations, licenses, registrations, qualifications, orders, filings, declarations and other actions as shall have been taken, given, made or
        obtained and are in full force and effect as of the Closing Date, in each case, as set forth in Schedule 5.10, (ii) any necessary filings under the securities or blue sky Laws of the various jurisdictions in which the Notes and the Warrants
        are being offered, (iii) the filing of financing statements under the UCC and recordings with the PTO and the filing of any other recordings (including in any applicable non-U.S. jurisdiction) required to perfect a security interest in the Notes
        Collateral and (iv) such consents, approvals, authorizations, licenses, registrations, qualifications, orders, filings, declarations and other actions, the failure of which to take, give, make or obtain would not reasonably be expected to have a
        Material Adverse Effect.

       

      
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      Section 5.11         No Conflicts.
        The execution, delivery and performance of each Transaction Document by the Issuer, the issuance and sale of the Notes and the Warrants and the consummation of the transactions contemplated by the Transaction Documents will not conflict with,
        result in any breach or violation of or constitute a default under (nor constitute any event that, with notice, lapse of time or both, would result in any breach or violation of, constitute a default under or give the holder of any indebtedness (or
        a Person acting on such holder’s behalf) the right to require the repurchase, redemption or repayment of all or a part of such indebtedness under) (or result in the creation or imposition of a Lien on any property or assets of the Issuer pursuant
        to) (a) the certificate of incorporation or bylaws of the Issuer, (b) any indenture, mortgage, deed of trust, bank loan, credit agreement, other evidence of indebtedness, license, lease, contract or other agreement or instrument to which the Issuer
        is a party or by which it or its properties may be bound or affected, (c) any Law or (d) any rule or regulation of any self-regulatory organization or other non-governmental regulatory authority (including the rules and regulations of the Nasdaq
        Stock Market LLC), except, in the case of clause (b), (c) or (d), where such conflict, breach, violation, default, event, right or Lien would not reasonably be expected, individually or in the aggregate, to have a Material Adverse Effect.

       

      Section 5.12        No Violation or Default. The Issuer is not in breach or violation of or in
        default under (nor has any event occurred that, with notice, lapse of time or both, would result in any breach or violation of, constitute a default under or give the holder of any indebtedness (or a Person acting on such holder’s behalf) the right
        to require the repurchase, redemption or repayment of all or a part of such indebtedness under) (a) its certificate of incorporation or bylaws, (b) any indenture, mortgage, deed of trust, bank loan, credit agreement, other evidence of indebtedness,
        license, lease, contract or other agreement or instrument to which it is a party or by which it or any of its properties may be bound or affected, (c) any Law or (d) any rule or regulation of any self-regulatory organization or other
        non-governmental regulatory authority (including the rules and regulations of the Nasdaq Stock Market LLC), except, in the case of clause (b), (c) or (d), where such breach, violation, default, event or right would not reasonably be expected,
        individually or in the aggregate, to have a Material Adverse Effect. On the Closing Date, no Event of Default on the Notes exists.

       

      Section 5.13        No Material Adverse Change. Except as disclosed in the Exchange Act
        Documents, subsequent to the respective dates as of which information is given in the Exchange Act Documents, (a) there has not been any material change in the Capital Stock or long-term debt of the Issuer or any material adverse change, or any
        development that would be expected to result in a material adverse change, in or affecting the business, condition (financial or otherwise), results of operations, earnings, properties or prospects of the Issuer and its Subsidiaries taken as a
        whole, (b) the Issuer has not incurred any material liabilities or obligations, direct or contingent, nor has it entered into any material transactions not in the ordinary course of business, other than pursuant to the Transaction Documents and the
        transactions referred to herein and therein, (c) the Issuer has not and will not have paid or declared any dividends or other distributions of any kind on any class of its Capital Stock, (d) the Issuer has not sustained any material loss or
        interference with its business from fire, explosion, flood or other calamity, whether or not covered by insurance, or from any labor disturbance or dispute or any action, order or decree of any Governmental Authority and (e) the Issuer has not
        altered its method of accounting.

       

      
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      Section 5.14       Compliance with ERISA. The Issuer has not maintained or contributed to a
        defined benefit plan as defined in Section 3(35) of ERISA. No plan maintained or contributed to by the Issuer that is subject to ERISA (an “ERISA Plan”) (or any trust created thereunder) has engaged in a “prohibited transaction” within the
        meaning of Section 406 of ERISA or Section 4975 of the Code that could subject the Issuer to any material tax penalty on prohibited transactions and that has not adequately been corrected. Each ERISA Plan is in compliance in all material respects
        with all reporting, disclosure and other requirements of the Code and ERISA as they relate to such ERISA Plan, except for any noncompliance that would not result in the imposition of a material tax or monetary penalty. With respect to each ERISA
        Plan that is intended to be “qualified” within the meaning of Section 401(a) of the Code, either (a) a determination letter has been issued by the IRS stating that such ERISA Plan and the attendant trust are qualified thereunder or (b) the remedial
        amendment period under Section 401(b) of the Code with respect to the establishment of such ERISA Plan has not ended and a determination letter application will be filed with respect to such ERISA Plan prior to the end of such remedial amendment
        period. The Issuer has never completely or partially withdrawn from a “multiemployer plan”, as defined in Section 3(37) of ERISA.

       

      Section 5.15        Tax Matters. The Issuer has filed all income and franchise tax returns and
        all other material tax returns required to be filed by it and has paid all taxes required to be paid by it and, if due and payable, any related or similar assessment, fine or penalty levied against it (except for any such taxes, assessments, fines
        or penalties currently being contested in good faith and for which adequate reserves in accordance with GAAP are being maintained or in any case in which the failure to file or pay, individually or collectively, would not reasonably be expected to
        have a Material Adverse Effect). The Issuer has made adequate charges, accruals and reserves in the applicable financial statements referred to in Section 5.5 in respect of all material federal, state and foreign income and franchise taxes for all
        periods as to which the tax liability of the Issuer has not been finally determined. The Issuer is not aware of any material claims against it by any taxing authority in relation to the filing of tax returns or the payment of required taxes,
        assessments, fines or penalties.

       

      Section 5.16       Legal Proceedings. Except as disclosed in the Exchange Act Documents, there
        are no actions, suits or proceedings pending or, to the Issuer’s knowledge, threatened against or affecting, the Issuer or any of its officers in their capacity as such before or by any Governmental Authority or the Financial Industry Regulatory
        Authority, Inc. or the Nasdaq Stock Market LLC, wherein an unfavorable ruling, decision or finding could reasonably be expected to result in a Material Adverse Effect. Except as set forth in the Exchange Act Documents, the Issuer has not received
        any written notice of proceedings relating to the revocation or modification of any authorization, approval, order, license, certificate, franchise or permit, where such revocation or modification would reasonably be expected to result in a
        Material Adverse Effect. There are no pending investigations known to the Issuer involving the Issuer by any Governmental Authority having jurisdiction over the Issuer or its business or operations that would reasonably be expected to result in a
        Material Adverse Effect.

       

      
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      Section 5.17        Solvency. No step has been taken or is currently intended by the Issuer or,
        to the knowledge of the Issuer, any other Person for the winding-up, liquidation, dissolution or administration or for the appointment of a receiver or administrator of the Issuer for all or any of its properties or assets. Immediately after the
        issuance and sale of the Notes and the Warrants and the consummation of the other transactions contemplated by the Transaction Documents on the Closing Date, the Issuer will not be rendered insolvent within the meaning of 11 U.S.C. 101(32) or any
        other applicable insolvency Laws or, taken as a whole, be unable to pay its debts as they mature.

       

      Section 5.18        Existing Indebtedness. The Exchange Act Documents disclose all of the
        following types of material third-party outstanding indebtedness of the Issuer as of the Closing Date: (a) indebtedness in respect of borrowed money; (b) any other obligation of the Issuer to be liable for, or to pay, as obligor, guarantor or
        otherwise, on the indebtedness for borrowed money of another Person (other than by endorsement of negotiable instruments for collection in the ordinary course of business); and (c) to the extent not otherwise included, indebtedness for borrowed
        money of another Person secured by a Lien on any asset owned by such Person (whether or not such indebtedness for borrowed money is assumed by such Person).

       

      Section 5.19        Material Contracts. There is no document or agreement of a character required
        to be described in the Exchange Act Documents or to be filed as an exhibit to the Exchange Act Documents that is not described or filed as required. All Material Contracts are in full force and effect and constitute the valid, legally binding and
        (subject to general equitable principles and insolvency, liquidation, reorganization and other Laws of general application relating to creditors’ rights) enforceable obligation of the Issuer and, to the knowledge of the Issuer, all other parties
        thereto, except in each case as would not reasonably be expected to have a Material Adverse Effect. To the knowledge of the Issuer, there are no oral waivers or modifications (or pending requests therefor) in respect of any Material Contract except
        as would not reasonably be expected to have a Material Adverse Effect. The Issuer is not in breach or default under or with respect to any Material Contract binding on it except where such breaches or defaults would not reasonably be expected to
        have a Material Adverse Effect. To the knowledge of the Issuer, no other Person party to any Material Contract is in default thereunder except where such default would not reasonably be expected to have a Material Adverse Effect. To the knowledge
        of the Issuer, no party to any Material Contract has given any notice of termination or breach of any Material Contract.

       

      Section 5.20        Properties. The Issuer has good and marketable title to all properties
        and assets described in the Exchange Act Documents as being owned by it, free and clear of all Liens or restrictions other than Permitted Liens and the Liens created by the Security Documents, except as set forth in the Exchange Act Documents or
        those where the failure to have such title would not, individually or in the aggregate, have a Material Adverse Effect. To the knowledge of the Issuer, the Issuer has valid, subsisting and (subject to general equitable principles and insolvency,
        liquidation, reorganization and other Laws of general application relating to creditors’ rights) enforceable leases for the properties described in the Exchange Act Documents as leased by it, with such exceptions as are not material and do not
        materially interfere with the use made and proposed to be made of such properties by the Issuer.

       

      
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      Section 5.21         Intellectual Property.

       

      (a)        Except as disclosed in the Exchange Act Documents, the Issuer owns, has valid and enforceable licenses for or otherwise has adequate rights to use
        all technology (including patented, patentable and unpatented inventions and unpatentable proprietary or confidential information, systems or procedures), designs, processes, patents, trademarks, service marks, trade secrets, trade names, know how,
        copyrights and other works of authorship, computer programs, technical data and information and all similar intellectual property or proprietary rights (including all registrations and applications for registration of, and all goodwill associated
        with, any of the foregoing, as applicable) (collectively, “Intellectual Property”) that are material to its business as currently conducted or as proposed to be conducted, including the development, manufacture, operation and sale of any of
        the Issuer’s products or product candidates, as described in the Exchange Act Documents, except where the failure to own, license or otherwise have rights to such Intellectual Property would not, individually or in the aggregate, reasonably be
        expected to have a Material Adverse Effect. Except as disclosed in the Exchange Act Documents, the Intellectual Property of the Issuer has not been adjudged by a Governmental Authority of competent jurisdiction invalid or unenforceable in whole or
        in part, except as would not, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect. Except as disclosed in the Exchange Act Documents: (i) to the knowledge of the Issuer, there are no third parties who have, or
        will be able to establish, rights to any Intellectual Property owned by or licensed to the Issuer, except for, and to the extent of, the rights of any third parties that are licensors or licensees of such Intellectual Property as set forth in Schedule

          5.21; (ii) to the Issuer’s knowledge, there is no infringement, misappropriation or other violation by third parties of any Intellectual Property owned by, or licensed to, the Issuer; (iii) there is no pending or, to the knowledge of the
        Issuer, threatened action, suit, proceeding or claim by others against the Issuer challenging the Issuer’s rights in or to any Intellectual Property owned by, or licensed to, the Issuer, and the Issuer is unaware of any facts that could form a
        reasonable basis for any such action, suit, proceeding or claim; (iv) there is no pending or, to the knowledge of the Issuer, threatened action, suit, proceeding or claim by others against the Issuer challenging the validity, enforceability or
        scope of any Intellectual Property owned by, or licensed to, the Issuer, and the Issuer is unaware of any facts that could form a reasonable basis for any such action, suit, proceeding or claim; (v) there is no pending or, to the knowledge of the
        Issuer, threatened action, suit, proceeding or claim by others against the Issuer that (nor has the Issuer received any written claim from a third party that) the Issuer infringed, misappropriated or otherwise violated, or is infringing,
        misappropriating or otherwise violating, any intellectual property rights of others, and the Issuer is unaware of any facts that could form a reasonable basis for any such action, suit, proceeding or claim; and (vi) the Issuer has complied with and
        there has been no breach or default by the Issuer under the terms of each agreement pursuant to which Intellectual Property has been licensed to the Issuer, and all such agreements are in full force and effect, except, in each case of clauses (i)
        through (vi), as would not, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect. Except as set forth in the Exchange Act Documents, the Issuer is not obligated or under any liability whatsoever to make any
        material payment by way of royalties, fees or otherwise to any owner or licensee of, or other claimant to, any Intellectual Property, with respect to the use thereof in connection with the conduct of its business or otherwise. No Immaterial
        Subsidiary owns or licenses any material Intellectual Property.

       

      
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      (b)         The Issuer owns, licenses or otherwise has the full exclusive right to use all material trademarks and trade names that are used in or reasonably
        necessary for the conduct of its business as described in the Exchange Act Documents, except where the failure to own, license or otherwise have rights to such trademarks and tradenames would not, individually or in the aggregate, reasonably be
        expected to have a Material Adverse Effect. The Issuer has not received any written notice of infringement of or conflict with asserted rights of others with respect to any such trademarks or trade names or challenging or questioning the validity
        or effectiveness of any such trademark or trade name. To the Issuer’s knowledge, the use of such trademarks and trade names in connection with the business and operations of the Issuer does not materially infringe on the rights of any Person.
        Except as set forth in the Exchange Act Documents, the Issuer is not obligated or under any liability whatsoever to make any material payment by way of royalties, fees or otherwise to any owner or licensee of, or other claimant to, any trademark,
        service mark or trade name with respect to the use thereof in connection with the conduct of its business or otherwise.

       

      (c)          The Issuer has taken reasonable security measures to protect the secrecy, confidentiality and value of all its Intellectual Property in all
        material aspects, including complying with all material duty of disclosure requirements before the PTO and any other non-U.S. patent offices, as appropriate.

       

      (d)         Schedule 5.21 contains a complete list of (i) all registered trademarks, copyrights and Patents that are owned by the Issuer, in each case
        that are reasonably necessary for the operation of the business of the Issuer as presently conducted, and (ii) all Patent license agreements granting exclusive rights to the Issuer to such licensed Patents.

       

      (e)         The Issuer is the owner or holder of each new drug application or abbreviated new drug application set forth opposite its name in Schedule 5.21.
        Except as set forth in Schedule 5.21, the Issuer has not granted, assigned or licensed to any Person, directly or indirectly, any rights under any such new drug application or abbreviated new drug application. Schedule 5.21 sets
        forth the product that pertains to each such new drug application and abbreviated new drug application (and whether or not approval of any such drug application has been granted in any jurisdiction, and, if so, in which jurisdictions such approvals
        have been granted).

       

      Section 5.22        Environmental Matters.
        Except in each case as would not individually or in the aggregate reasonably be expected to result in a Material Adverse Effect, (a) the Issuer is and has been in compliance with, and is not subject to any pending or, to the knowledge of the
        Issuer, threatened costs or liability under, any and all applicable Laws (including common law), and applicable and binding judicial or administrative decisions or orders, relating to pollution, the generation, use, handling, transportation,
        treatment, storage, discharge, disposal or release of Hazardous Substances, the protection or restoration of the environment, human health and safety, noise or the protection of natural resources, including wildlife, migratory birds, eagles or
        endangered or threatened species or habitats (collectively, “Environmental Laws”) and, to the knowledge of the Issuer, no facts or circumstances currently exist that would reasonably be expected to result in such non-compliance, cost or
        liability, (b) to the knowledge of the Issuer, the Issuer does not own, occupy, operate, lease or use any real property contaminated with Hazardous Substances in violation of Environmental Laws and that would reasonably be expected to result in the
        Issuer incurring any liability, (c) the Issuer is not conducting or funding any investigation, remediation, remedial action or monitoring of actual or suspected Hazardous Substances in the environment, (d) to the knowledge of the Issuer, the Issuer
        is not subject to any pending or threatened liability for any release or threatened release of Hazardous Substances, including at any off-site treatment, storage or disposal site, (e) the Issuer is not subject to any written claim, action, suit,
        order, demand or notice by any Governmental Authority or Person alleging liability or violation relating to Environmental Laws or Hazardous Substances, (f) the Issuer has received and is in compliance with all, and has received no written claim of
        liability under any, permits, licenses, authorizations, identification numbers or other approvals required under applicable Environmental Laws to conduct its business, as currently conducted, and (g) to the knowledge of the Issuer, there are no new
        requirements applicable to the conduct of the Issuer’s business, as currently conducted, proposed for adoption or implementation under any Environmental Law. Except as set forth in the Exchange Act Documents, there are no judicial or administrative
        proceedings that are pending, or known to be contemplated, against the Issuer pursuant to any Environmental Laws by a Governmental Authority, other than such proceedings for which it is reasonably believed no monetary sanctions of $100,000 or more
        will be imposed. Except as set forth in the Exchange Act Documents, the Issuer has not incurred, and does not currently anticipate incurring, any costs or expenditures (including capital expenditures) required under or pursuant to Environmental
        Laws that would reasonably be expected to have a material effect on the capital expenditures, earnings or competitive position of the Issuer.

       

      
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      Section 5.23       Labor Matters. The Issuer is not involved in any labor dispute except where
        the dispute would not, individually or in the aggregate, have a Material Adverse Effect, nor, to the knowledge of the Issuer, is any such dispute threatened. The Issuer is currently in compliance with all applicable Laws relating to employment and
        labor, including those related to wages, hours, collective bargaining and the payment and withholding of Taxes.

       

      Section 5.24        Insurance. The Issuer carries, or is covered by, insurance in such amounts
        and covering such risks as the Issuer believes are adequate for the conduct of its business and the value of its properties and is customary for companies engaged in similar industries, and all such insurance is in full force and effect. The Issuer
        has no reason to believe that it will not be able to (a) renew its existing insurance coverage as and when such policies expire or (b) obtain comparable coverage from similar institutions as may be necessary or appropriate to conduct its business
        as currently conducted or proposed to be conducted and at a cost that would not, individually or in the aggregate, result in a Material Adverse Effect. The Issuer has not been denied any insurance coverage that it has sought or for which it has
        applied.

       

      Section 5.25        No Unlawful Payments. None of the Issuer, any of its directors or
        officers or, to the Issuer’s knowledge, any agent, employee or representative of the Issuer or its Affiliates or other Person associated with or acting on behalf of the Issuer has (a) used any corporate funds for any unlawful contribution, gift,
        entertainment or other unlawful expense relating to political activity, (b) made or taken an act in furtherance of an offer, promise or authorization of any direct or indirect unlawful payment of corporate funds or benefit to any government or
        regulatory official or employee, including of any government-owned or controlled entity or of a public international organization, or any Person acting in an official capacity for or on behalf of any of the foregoing, or any political party or
        party official or candidate for political office, (c) taken any action, directly or indirectly, that would result in a violation of any provision of the FCPA, the U.K. Bribery Act 2010, or any applicable Law implementing the OECD Convention on
        Combating Bribery of Foreign Public Officials in International Business Transactions, or committed an offense under any other applicable anti-bribery or anti-corruption Laws, or (d) made, offered, agreed to, requested or taken an act in furtherance
        of any unlawful bribe or other unlawful benefit, including any rebate, payoff, influence payment, kickback or other unlawful or improper payment or benefit. The Issuer and, to the knowledge of the Issuer, its Affiliates have conducted their
        businesses in compliance with the FCPA and have instituted, maintained and enforced, and will continue to maintain and enforce, policies and procedures designed to promote and ensure compliance with all applicable anti-bribery and anti-corruption
        Laws.

       

      
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      Section 5.26        Compliance with Anti-Money Laundering Laws. The operations of the Issuer are
        and have been conducted at all times in compliance with applicable financial recordkeeping and reporting requirements, including those of the Currency and Foreign Transactions Reporting Act of 1970, as amended, those of the Bank Secrecy Act, as
        amended by Title III of the Uniting and Strengthening America by Providing Appropriate Tools Required to Intercept and Obstruct Terrorism Act of 2001 (USA PATRIOT Act), and the applicable anti-money laundering Laws of all jurisdictions in which the
        Issuer conducts business (collectively, the “Anti-Money Laundering Laws”), and no action, suit or proceeding by or before any Governmental Authority involving the Issuer with respect to the Anti-Money Laundering Laws is pending or, to the
        knowledge of the Issuer, threatened.

       

      Section 5.27        Sanctions. None of the Issuer or any director or officer of the Issuer or, to the knowledge of the
        Issuer, any agent, employee or representative of the Issuer or any Affiliate or other Person associated with or acting on behalf of the Issuer is currently the subject or target of any sanctions administered or enforced by the U.S. government
        (including the Office of Foreign Assets Control of the U.S. Treasury Department or the U.S. Department of State and including the designation as a “specially designated national” or “blocked person”), the United Nations Security Council, the
        European Union, Her Majesty’s Treasury or other relevant sanctions authority (collectively, “Sanctions”), nor is the Issuer located, organized or resident in a country or territory that is the subject or the target of Sanctions, including
        Cuba, Iran, North Korea, the Crimean region and Syria (each, a “Sanctioned Country”). The Issuer will not directly or indirectly use the proceeds of the offering of the Notes and the Warrants, or lend, contribute or otherwise make available
        such proceeds to any Subsidiary, joint venture partner or other Person, (a) to fund or facilitate any activities of or business with any Person that, at the time of such funding or facilitation, is the subject or the target of Sanctions, (b) to
        fund or facilitate any activities of or business in any Sanctioned Country or (c) in any other manner that will result in a violation by any Person (including any Person participating in the transaction contemplated hereby, whether as underwriter,
        advisor, investor or otherwise) of Sanctions. For the past five years, the Issuer has not knowingly engaged in, is not now knowingly engaged in, and will not engage in, any dealings or transactions with any Person that at the time of the dealing or
        transaction is or was the subject or the target of Sanctions or with any Sanctioned Country.

       

      Section 5.28         Disclosure Controls. The Issuer has established and maintains disclosure
        controls and procedures (as such term is defined in Rules 13a-15 and 15d-15 under the Exchange Act) that (a) are designed to ensure that material information relating to the Issuer is made known to the Issuer’s principal executive officer and
        principal financial officer by others within the Issuer, particularly during the periods in which the periodic reports required under the Exchange Act are being prepared, (b) provide for the periodic evaluation of the effectiveness of such
        disclosure controls and procedures as of the end of the period covered by the Issuer’s most recent annual or quarterly report filed with the Commission and (c) are effective in all material respects to perform the functions for which they were
        established.

       

      
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      Section 5.29         Accounting Controls.

       

      (a)         The Issuer maintains a system of internal accounting controls sufficient to provide reasonable assurance that (i) transactions are executed in
        accordance with management’s general or specific authorizations, (ii) transactions are recorded as necessary to permit preparation of financial statements in conformity with GAAP and to maintain asset accountability, (iii) access to assets is
        permitted only in accordance with management’s general or specific authorization and (iv) the recorded accountability for assets is compared with the existing assets at reasonable intervals and appropriate action is taken with respect to any
        differences.

       

      (b)         Since the end of the Issuer’s most recent audited fiscal year, there has been (i) no material weakness (as defined in Rule 1-02 of Regulation S-X
        of the Commission) in the Issuer’s internal control over financial reporting (whether or not remediated) and (ii) no change in the Issuer’s internal control over financial reporting that has materially affected, or is reasonably likely to
        materially affect, the Issuer’s internal control over financial reporting. The Issuer is not aware of (x) any significant deficiency in the design or operation of its internal control over financial reporting that is reasonably likely to adversely
        affect the Issuer’s ability to record, process, summarize and report financial data or any material weaknesses in its internal controls, except as disclosed in the Exchange Act Documents, since the end of the Issuer’s most recent audited fiscal
        year or (y) any fraud, whether or not material, that involves management or other employees who have a significant role in the Issuer’s internal controls.

       

      Section 5.30       Licenses and Permits. Except as would not, individually or in the aggregate,
        reasonably be expected to have a Material Adverse Effect, (a) the Issuer holds, and is operating in compliance with, such permits, licenses, franchises, registrations, exemptions, approvals, authorizations and clearances of any Governmental
        Authorities (including the FDA) required for the conduct of its business as currently conducted (collectively, the “Permits”), and all such Permits are in full force and effect, and (b) the Issuer has fulfilled and performed all of its
        obligations with respect to the Permits, and, to the Issuer’s knowledge, no event has occurred that allows, or after notice or lapse of time would allow, revocation or termination thereof or results in any other impairment of the rights of the
        holder of any Permit, other than, in each case, the Permits set forth in Schedule 5.30. All applications, notifications, submissions, information, claims, reports and statistics, and other data and conclusions derived therefrom, utilized as
        the basis for any and all requests for a Permit from the FDA or other Governmental Authority relating to the Issuer, its business and its products, when submitted to the FDA or other Governmental Authority by or on behalf of the Issuer, were true,
        complete and correct in all material respects. Any necessary or required updates, changes, corrections or modifications to such applications, notifications, submissions, information, claims, reports and statistics and other data have been submitted
        to the FDA or other Governmental Authority, other than, in each case, the Permits set forth in Schedule 5.30. The Issuer has not received any written notification, correspondence or other written communication, including notification of any
        pending or, to the Issuer’s knowledge, threatened claim, suit, proceeding, hearing, enforcement, investigation, arbitration or other action, from any Governmental Authority, including the FDA or the DEA, of potential or actual non-compliance by, or
        liability of, the Issuer under any Permits except as would not, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect. To the Issuer’s knowledge, no facts or circumstances currently exist that would reasonably
        be expected to give rise to any liability of the Issuer under any Permits except as would not, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect.

       

      
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      Section 5.31        Clinical Trials. The pre-clinical studies and clinical trials conducted by or, to the knowledge of the
        Issuer, on behalf of or sponsored by the Issuer, or in which the Issuer has participated, that are described in, or the results of which are referred to in, the Exchange Act Documents were and, if still pending, are being conducted in accordance
        with protocols filed with the appropriate regulatory authorities for each such study or trial, as the case may be, and with standard medical and scientific research standards and procedures, all applicable Laws (including those of the FDA and
        comparable regulatory agencies outside of the United States) to which they are subject and Good Clinical Practices and Good Laboratory Practices, except to the extent where failure to conduct such pre-clinical studies and clinical trials in such
        manner would not have a Material Adverse Effect. Each description of the results of such studies and trials contained in the Exchange Act Documents is accurate and complete in all material respects and fairly presents the data derived from such
        studies and trials, and the Issuer has no knowledge of any other studies or trials the results of which are inconsistent with, or otherwise call into question, the results described or referred to in the Exchange Act Documents. The Issuer has not
        received any written notices, correspondence or other written communications from the FDA or any committee thereof or from any other U.S. or non-U.S. government or drug or medical device regulatory agency (collectively, the “Regulatory Agencies”)

        requiring or, to the Issuer’s knowledge, threatening the termination, suspension or modification of any clinical trials that are described or referred to in the Exchange Act Documents. The Issuer has operated at all times and currently is in
        compliance with all applicable Laws of the Regulatory Agencies except where such failure to operate or non-compliance would not reasonably be expected, individually or in the aggregate, to result in a Material Adverse Effect.

       

      Section 5.32       Regulatory Filings. The Issuer has not failed to file with the Regulatory Agencies any required material
        filing, declaration, listing, registration, report or submission with respect to any products or product candidates that are described or referred to in the Exchange Act Documents or any other material filing required by any other applicable
        Regulatory Agency or other Governmental Authority. All such filings, declarations, listings, registrations, reports or submissions were in material compliance with applicable Laws when filed. All such filings, declarations, listings, registrations,
        reports or submissions were timely, complete, accurate and not misleading on the date filed in all material respects (or were corrected or supplemented by subsequent submission). No material deficiencies regarding compliance with applicable Law
        have been asserted in writing by any applicable regulatory authority with respect to any such filings, declarations, listings, registrations, reports or submissions.

       

      Section 5.33        Compliance with Certain Regulatory Matters. The Issuer, its directors and officers and, to the Issuer’s
        knowledge, its employees and agents have operated and currently are in compliance in all material respects with applicable Laws administered or enforced by the FDA, the DEA or any other Governmental Authority, including the Food, Drug and Cosmetic
        Act (21 U.S.C. § 301 et seq.), the Anti-kickback Statute (42 U.S.C. § 1320a-7b(b)), the civil False Claims Act (31 U.S.C. §3729 et seq.), the False Statements Law (42 U.S.C. § 1320a-7b(a)), the Civil Monetary Penalties Law (42 U.S.C. §1320a-7a),
        all criminal Laws relating to health care fraud and abuse, including 18 U.S.C. §§ 286 and 287, the exclusions law (42 U.S.C. § 1320a-7), the Laws of Medicare (Title XVIII of the Social Security Act), Medicaid (Title XIX of the Social Security Act)
        and all other government funded or sponsored healthcare programs, and the Health Insurance Portability and Accountability Act of 1996 (42 U.S.C. § 1320d et seq.), as amended by the Health Information Technology for Economic and Clinical Health Act
        of 2009 (42 U.S.C. §17921 et seq.). The Issuer is not a party to, and does not have any ongoing reporting obligations pursuant to, any corporate integrity agreement, deferred prosecution agreement, monitoring agreement, consent decree, settlement
        order, plan of correction or similar agreement imposed by any Governmental Authority. Neither the Issuer nor, to the knowledge of the Issuer, any of its directors, officers, employees or agents has been debarred, excluded or suspended from
        participation in or receiving payment from any U.S. federal, state or local government health care program or is subject to an audit, investigation, proceeding or other similar action by any Governmental Authority that could reasonably be expected
        to result in debarment, suspension or exclusion.

       

      
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      Section 5.34         Absence of Certain Regulatory Actions. Except as described in the Exchange Act Documents or as would
        not, individually or in the aggregate, have a Material Adverse Effect, the Issuer has not (a) had any product or manufacturing site (whether Issuer-owned or that of a contract manufacturer for Issuer products or product candidates) subject to a
        Governmental Authority (including the FDA) shutdown or import or export prohibition or (b) received any FDA Form 483 or other Governmental Authority notice of inspectional observations, “warning letters”, “untitled letters”, requests to make
        changes to the Issuer products, processes or operations, or similar written correspondence or notice from the FDA or other Governmental Authority alleging or asserting material noncompliance with any applicable Laws. To the Issuer’s knowledge,
        neither the FDA nor any other Governmental Authority has threatened such action. The Issuer has not received written notice of any claim, action, suit, proceeding, hearing, enforcement, investigation, arbitration or other action from any Regulatory
        Agency or other Governmental Authority alleging that any product operation or activity is in violation of any health care Laws, and, to the Issuer’s knowledge, no such claim, action, suit, proceeding, hearing, enforcement, investigation,
        arbitration or other action is threatened, except where such claim, action, suit, proceeding, hearing, enforcement, investigation, arbitration or other action would not reasonably be expected, individually or in the aggregate, to result in a
        Material Adverse Effect.

       

      Section 5.35       Collateral Agreement. The representations and warranties of the Issuer in Article III of that certain
        collateral agreement, dated as of the Closing Date, among the Issuer, the other subsidiary parties from time to time party thereto, the Trustee and the Collateral Agent are true and correct in all material respects (except to the extent qualified
        by materiality, in which case such representation or warranty shall be true and correct in all respects).

       

      ARTICLE VI

      CONDITIONS TO CLOSING

       

      The obligations of the Purchaser hereunder on the Closing Date are subject to the accuracy in all material respects (except for such representations qualified by materiality or Material Adverse
        Effect, which shall be accurate in all respects) of the representations and warranties of the Issuer contained herein as of the Closing Date, to the accuracy of the statements of the Issuer and its officers made in any certificates delivered
        pursuant hereto on the Closing Date, to the performance by the Issuer of its obligations hereunder as of the Closing Date and to the satisfaction or waiver by the Purchaser of each of the following additional terms and conditions applicable on the
        Closing Date:

       

      
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      Section 6.1          Issuer’s Counsel Opinion. Dechert LLP, counsel to
        the Issuer, shall have furnished to the Purchasers their opinion, addressed to the Purchasers and dated the Closing Date, in form and substance reasonably satisfactory to the Purchasers.

       

      Section 6.2          Purchasers’ Counsel Opinion. Pillsbury Winthrop
        Shaw Pittman LLP, special counsel to the Purchasers, shall have furnished to the Purchasers their opinion, addressed to the Purchasers and dated the Closing Date, in form and substance reasonably satisfactory to the Purchasers.

       

      Section 6.3         Certification as to Purchase Agreement. The
        Issuer shall have furnished to the Purchasers a certificate, dated the Closing Date, of a Responsible Officer, stating that, as of the Closing Date, the representations and warranties of the Issuer in this Purchase Agreement are true and correct in
        all material respects (except for such representations qualified by materiality or Material Adverse Effect, which are true and correct in all respects) and the Issuer has complied in all material respects with all of the agreements and satisfied
        all of the conditions on its part to be performed or satisfied hereunder on or before the Closing Date.

       

      Section 6.4          Authorizations. The Issuer shall have furnished
        to the Purchasers (a) a copy of the resolutions, consents or other documents, certified by a Responsible Officer of the Issuer, as of the Closing Date, duly authorizing the execution and delivery of, and performance of obligations under, the
        Transaction Documents and any other documents to be executed on or prior to the Closing Date by or on behalf of the Issuer in connection with the transactions contemplated hereby and thereby and the issuance and sale of the Notes and Warrants, and
        a certification that such resolutions, consents or other documents have not been modified, rescinded or amended and are in full force and effect, (b) certified copies of its organizational documents, (c) a certification by a Responsible Officer, as
        of the Closing Date, as to the incumbency and specimen signatures of each officer executing any Transaction Document or any other document delivered in connection herewith or therewith on behalf of the Issuer (together with a certification of
        another Responsible Officer as to incumbency and specimen signature of the first-mentioned Responsible Officer) and (d) a certificate of good standing of the Issuer as of a recent date from the Secretary of State of the State of Delaware.

       

      Section 6.5          Offering of Notes and Warrants. The Placement
        Agent shall have delivered to the Issuer a certificate, dated on or about the Closing Date, as to the manner of the offering of the Notes and the Warrants and the number and character of the offerees contacted, which certificate shall state that
        the Placement Agent (a) did not solicit offers for, or offer, the Notes or the Warrants by means of any form of general solicitation or general advertising (as those terms are used in Regulation D under the Securities Act) or in any manner
        involving a public offering within the meaning of Section 4(a)(2) of the Securities Act, including publication or release of articles, notices or other communications published in any newspaper, magazine or similar medium or broadcast over
        television, radio or internet, or any seminar or meeting whose attendees have been invited by any general solicitation or general advertising, and did not engage in any directed selling efforts within the meaning of Rule 902(c) of Regulation S and
        (b) solicited offers for the Notes and the Warrants only from, and offered the Notes and the Warrants only to, (i) Persons that it reasonably believed were QIBs or, if any such Person was buying for one or more institutional accounts for which such
        Person was acting as fiduciary or agent, only when such Person reasonably believed that each such account was a QIB, (ii) to Persons that are not U.S. persons (as defined in Regulation S) in accordance with Rule 903 of Regulation S if such offers
        were outside the United States and (iii) Accredited Investors, and shall further state that counsel to the Issuer and to the Purchasers may rely thereon in rendering their respective opinions to be delivered hereunder.

       

      
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      Section 6.6          CUSIP Numbers. S&P Global Market
        Intelligence’s CUSIP Global Services, as agent for the National Association of Insurance Commissioners, shall have issued CUSIP numbers and ISIN numbers for the Notes.

       

      Section 6.7         Further Information. On or prior to the Closing Date, the Issuer shall have furnished to the Purchaser
        such further information, certificates and documents as the Purchaser may reasonably request in connection with this Purchase Agreement and the other Transaction Documents and the transactions contemplated hereby and thereby (including written
        evidence of the repayment in full of all indebtedness and any other obligations under that certain Credit Agreement and Guaranty dated as of August 16, 2016, as amended to date, between the Issuer (formerly MonoSol Rx, LLC), the subsidiary
        guarantors from time to time party thereto, the lenders from time to time party thereto and Perceptive Credit Holdings, LP, as administrative agent and collateral agent, the termination of any guarantees of such indebtedness and other obligations
        and the release of all Liens securing such indebtedness and other obligations, as applicable).

       

      Section 6.8          Consummation of Transactions. All of the
        transactions contemplated by the Transaction Documents to be completed on or before the Closing Date shall have been consummated or shall be consummated concurrently with the transactions contemplated hereby, and the Purchaser shall have received
        executed copies of the Transaction Documents (which shall be in full force and effect).

       

      Section 6.9          No Actions. No action shall have been taken and
        no Law shall have been enacted, adopted or issued by any Governmental Authority that would, as of the Closing Date, prevent the issuance or sale of the Notes or the Warrants, and no injunction, restraining order or order of any other nature by any
        Governmental Authority of competent jurisdiction shall have been issued as of the Closing Date that would prevent the issuance or sale of the Notes or the Warrants.

       

      Section 6.10         Consents. The Purchasers shall have received copies of all consents, approvals, authorizations, orders,
        registrations and qualifications set forth in Schedule 5.10.

       

      Section 6.11         Notes Collateral Requirements. The Collateral Agent shall have received:

       

      (a)          to the extent required to be delivered under the Security Documents, all certificates, agreements or instruments representing or evidencing the
        Equity Interests of the Subsidiaries of the Issuer referred to in the Security Documents accompanied by instruments of transfer and stock powers undated and endorsed in blank;

       

      
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      (b)          all other certificates, agreements or instruments necessary to perfect the Collateral Agent’s security interest in all chattel paper, all
        instruments, all deposit accounts and all investment property of the Issuer (to the extent required by any Transaction Document);

       

      (c)          evidence of the filing of financing statements under the UCC, recordings with the PTO and other recordings (including in any applicable non-U.S.
        jurisdiction) required, necessary, appropriate or reasonably requested to be made to perfect a security interest in the Notes Collateral, including those specified in the Security Documents; and

       

      (d)        certified copies of UCC, PTO, United States Copyright Office, tax, judgment lien, bankruptcy and pending lawsuit searches or equivalent reports or
        searches, each as of a recent date and listing all effective financing statements, lien notices or comparable documents that name the Issuer as debtor and that are filed in the jurisdiction in which the Issuer is organized or maintains its
        principal place of business and such other searches deemed necessary or appropriate, none of which encumber the Notes Collateral covered or intended to be covered in the Security Documents (except to the extent contemplated by the Security
        Documents).

       

      Section 6.12        Insurance. The Collateral Agent shall have received evidence that all insurance required to be maintained
        pursuant to the Transaction Documents by the Issuer has been obtained and is in effect together with the certificates of insurance, naming the Collateral Agent, on behalf of the Noteholders, as an additional insured, loss payee and/or mortgagee, as
        the case may be, under all insurance policies maintained with respect to the properties and assets that constitute Notes Collateral.

       

      Section 6.13         Warrants. On the Closing Date, the Issuer shall issue a Warrant to the Purchaser in the form attached as
        Exhibit A in respect of the number of shares of Common Stock of the Issuer set forth opposite the Purchaser’s name in Schedule 1.

       

      ARTICLE VII

      ADDITIONAL COVENANTS

       

      Section 7.1          DTC. The Issuer will use reasonable best efforts
        to comply with the agreements set forth in the representation letter of the Issuer to DTC relating to the approval of the Notes by DTC for “book-entry” transfer.

       

      Section 7.2         Expenses. The Issuer
        agrees to pay or cause to be paid from the proceeds of the issuance of the Notes and the Warrants all reasonable, documented fees and expenses of Pillsbury Winthrop Shaw Pittman LLP, acting as special counsel to the Purchasers (the amount of any
        such payment of the reasonable, documented fees and expenses of Pillsbury Winthrop Shaw Pittman LLP (excluding such fees and expenses related to intellectual property work and opinions) not to exceed in the aggregate the amount set forth in
        paragraph 2 of the letter agreement dated February 25, 2019 between the Issuer and the Placement Agent (unless otherwise agreed to by the Issuer)), as well as up to $100,000 of the lead Purchaser’s expenses in respect of work performed by its
        outside legal counsel and in respect of intellectual property work performed by Pillsbury Winthrop Shaw Pittman LLP, acting as special counsel to the Purchasers, it being understood that the Issuer will not reimburse any other expenses of any
        Purchasers (including expenses of any other counsel).

       

      
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      Section 7.3          Confidentiality; Public Announcement.

       

      (a)        Except as otherwise required by Law or judicial or administrative proceedings (by oral questions, interrogatories, requests for information or
        documents, subpoena, civil investigation demand or similar process) or the rules and regulations of any securities exchange or trading system or any Governmental Authority or pursuant to requests from regulatory agencies having oversight over the
        Issuer and except as otherwise set forth in this Section 7.3, the Issuer will, and will cause each of its Affiliates, directors, officers, employees, agents, representatives and similarly situated Persons who receive such information to, treat and
        hold as confidential and not disclose to any Person any and all Confidential Information furnished to it by the Purchaser, as well as the information in Schedule 1, and to use any such Confidential Information and other information only in
        connection with this Purchase Agreement and any other Transaction Document and the transactions contemplated hereby and thereby. Notwithstanding the foregoing, the Issuer may disclose such information solely on a need-to-know basis and solely to
        its directors, employees, officers, agents, brokers, advisors, lawyers, bankers, trustees, representatives, investors, co-investors, insurers, insurance brokers, underwriters and financing parties; provided, however, that such
        Persons shall be informed of the confidential nature of such information and shall be obligated to keep such Confidential Information and other information confidential pursuant to obligations of confidentiality no less onerous than those set forth
        herein.

       

      (b)          The Purchaser acknowledges that it will not, after the execution of this Purchase Agreement, make a public announcement or filing with respect to
        the transactions contemplated by the Transaction Documents or reference or describe such transactions in a public announcement or filing, without the Issuer’s prior written consent (such consent not to be unreasonably withheld, delayed or
        conditioned). Except as required by applicable Law or judicial or administrative proceedings (by oral questions, interrogatories, requests for information or documents, subpoena, civil investigation demand or similar process) or the rules and
        regulations of any securities exchange or trading system or any Governmental Authority or pursuant to requests from regulatory agencies having oversight over the Issuer, in no event shall the Purchaser’s name (in any variation) be used in any
        public announcement or filing, or in any type of mail or electronic distribution intended for an audience that is not solely limited to the Affiliates of the Issuer, without the Purchaser’s written consent.

       

      (c)        Except as required by applicable Law or judicial or administrative proceedings (by oral questions, interrogatories, requests for information or
        documents, subpoena, civil investigation demand or similar process) or the rules and regulations of any securities exchange or trading system or any Governmental Authority or pursuant to requests from regulatory agencies having oversight over the
        Issuer, neither the Issuer nor any of its Affiliates shall disclose to any Person, or use or include in any public announcement or any public filing, the identity of any shareholders, members, directors or Affiliates of the Purchaser, without the
        prior written consent of such shareholder, member, director or Affiliate.

       

      
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      Section 7.4          Right of First Offer. Upon each proposed issuance, if any, of Additional Securities, the Issuer will
        grant to the Purchaser the right to purchase an aggregate amount of such Additional Securities in an amount equal to the same proportion that the principal amount of Notes the Purchaser has purchased as set forth opposite its name in Schedule 1
        bears to the aggregate principal amount of Notes issued on the Closing Date to the Purchaser and the Other Purchasers and at a purchase price specified by the Issuer (which purchase price shall not be more than the purchase price per Note being
        offered to other investors), with such right to purchase being exercised by the Purchaser by written notice to the Issuer no later than 15 days after being notified of such proposed issuance by the Issuer. To the extent that the Other Purchasers
        decline to exercise their right to purchase any Additional Securities (in whole or in part) pursuant to the Other Agreements, the Issuer will promptly notify the Purchaser (only if the Purchaser previously exercised its right to purchase previously
        available Additional Securities in full pursuant to the preceding sentence), in which case the Purchaser will have the right to purchase such remaining Additional Securities (subject to proportional reduction to the extent of the relative initial
        principal amount of Additional Securities purchased by Other Purchasers exercising the same right pursuant to the Other Agreements) on the same terms as any Additional Securities it previously exercised the right to purchase pursuant to the
        preceding sentence, with such right to purchase being exercised by the Purchaser by written notice to the Issuer no later than two days after being notified of the opportunity to purchase such remaining Additional Securities by the Issuer.

       

      ARTICLE VIII

      SURVIVAL OF CERTAIN PROVISIONS

       

      Section 8.1          Survival of Certain Provisions. The
        representations, warranties, covenants and agreements contained in this Purchase Agreement shall survive (a) the execution and delivery of this Purchase Agreement, the Notes and the Warrant and (b) the sale or transfer by any Purchaser of any Note
        or any Warrant or portion thereof or interest therein. All such provisions are binding upon and may be relied upon by any subsequent holder or beneficial owner of a Note or a Warrant, regardless of any investigation made at any time by or on behalf
        of any Purchaser or any other holder or beneficial owner of a Note or a Warrant. All statements contained in any certificate or other instrument delivered by or on behalf of either party hereto pursuant to this Purchase Agreement shall be deemed to
        have been relied upon by the other party hereto and shall survive the consummation of the transactions contemplated hereby regardless of any investigation made by or on behalf of either such party. The Transaction Documents embody the entire
        agreement and understanding between the parties hereto and supersede all prior agreements and understandings relating to the subject matter hereof. Notwithstanding anything to the contrary elsewhere in this Purchase Agreement, neither party hereto
        shall, in any event, be liable to any other Person for any consequential, incidental, indirect, special or punitive damages of such other Person, including loss of revenue, income or profits, diminution of value or loss of business reputation or
        opportunity relating to the breach or alleged breach hereof (provided, that such limitation with respect to lost profits or otherwise shall not limit the Issuer’s right to recover contract damages in connection with the Purchaser’s failure
        to close in violation of this Purchase Agreement).

       

      ARTICLE IX

      NOTICES

       

      Section 9.1           Notices. All statements, requests, notices and
        agreements hereunder shall be in writing and delivered by hand, mail, overnight courier or telefax as follows:

       

      (a)          if to the Purchaser, in accordance with Schedule 1; and

       

      (b)          if to the Issuer, in accordance with Section 12.01 of the Indenture.

       

      
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      ARTICLE X

      SUCCESSORS AND ASSIGNS

       

      Section 10.1        Successors

          and Assigns. This Purchase Agreement will inure to the benefit of and be binding upon the parties hereto and their respective successors, permitted assignees and permitted transferees. So long as any of the Notes or the Warrant are
        outstanding, the Issuer may not assign any of its rights or obligations hereunder or any interest herein without the prior written consent of the Purchaser except as permitted in accordance with the Indenture and the Warrant, as applicable.

       

      ARTICLE XI

      SEVERABILITY

       

      Section 11.1        Severability. Any provision of this Purchase
        Agreement that is prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective to the extent of such prohibition or unenforceability without invalidating the remaining provisions hereof, and any such prohibition or
        unenforceability in any jurisdiction shall (to the full extent permitted by Law) not invalidate or render unenforceable such provision in any other jurisdiction.

       

      ARTICLE XII

      WAIVER OF JURY TRIAL

       

      Section 12.1        WAIVER OF JURY TRIAL. THE PURCHASER AND THE
        ISSUER HEREBY WAIVE TRIAL BY JURY IN ANY ACTION BROUGHT ON OR WITH RESPECT TO THIS PURCHASE AGREEMENT.

       

      ARTICLE XIII

      GOVERNING LAW; CONSENT TO JURISDICTION

       

      Section 13.1      Governing Law; Consent to Jurisdiction. THIS PURCHASE AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE INTERNAL SUBSTANTIVE LAWS OF THE STATE OF NEW YORK WITHOUT REFERENCE TO THE RULES THEREOF RELATING TO CONFLICTS OF LAW OTHER THAN SECTION
        5-1401 OF THE GENERAL OBLIGATIONS LAW OF THE STATE OF NEW YORK, AND THE OBLIGATIONS, RIGHTS AND REMEDIES OF THE PARTIES HEREUNDER SHALL BE DETERMINED IN ACCORDANCE WITH SUCH LAWS. The parties hereto hereby submit to the non-exclusive jurisdiction
        of the U.S. federal and state courts of competent jurisdiction in the Borough of Manhattan in The City of New York in any suit or proceeding arising out of or relating to this Purchase Agreement or the transactions contemplated hereby.

       

      ARTICLE XIV

      COUNTERPARTS

       

      Section 14.1        Counterparts. This Purchase Agreement may be
        executed in any number of counterparts, each of which shall be deemed to be an original, but all such counterparts shall together constitute one and the same Purchase Agreement. Any counterpart may be executed by facsimile or other electronic
        transmission, and such facsimile or other electronic transmission shall be deemed an original.

       

      
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      ARTICLE XV

      TABLE OF CONTENTS AND HEADINGS

       

      Section 15.1        Table of Contents and
          Headings. The Table of Contents and headings of the Articles and Sections of this Purchase Agreement have been inserted for convenience of reference only, are not to be considered a part hereof and shall in no way modify or restrict any of
        the terms or provisions hereof.

       

      ARTICLE XVI

      TAX DISCLOSURE

       

      Section 16.1       Tax Disclosure. Notwithstanding anything expressed
        or implied to the contrary herein, the Purchaser, on the one hand, and the Issuer, on the other hand, and its respective employees, representatives and agents may disclose to any and all Persons, without limitation of any kind, the tax treatment
        and the tax structure of the transactions contemplated by this Purchase Agreement and the agreements and instruments referred to herein and all materials of any kind (including opinions or other tax analyses) that are provided to such Person
        relating to such tax treatment and tax structure; provided, however, that neither such Person nor any employee, representative or other agent thereof shall disclose any other information that is not relevant to understanding the tax
        treatment and tax structure of such transactions (including the identity of any party and any information that could lead another to determine the identity of any party) or any other information to the extent that such disclosure could reasonably
        result in a violation of any Law relating to U.S. federal or state securities matters. For these purposes, the tax treatment of the transactions contemplated by this Purchase Agreement and the agreements and instruments referred to herein means the
        purported or claimed U.S. federal or state tax treatment of such transactions. Moreover, the tax structure of the transactions contemplated by this Purchase Agreement and the agreements and instruments referred to herein includes any fact that may
        be relevant to understanding the purported or claimed U.S. federal or state tax treatment of such transactions.

       

      {SIGNATURE PAGE FOLLOWS}

       

      
        26

        
          

      

      If the foregoing is in accordance with your understanding of this Purchase Agreement, kindly sign and return to us one of the counterparts hereof, whereupon it will become a binding agreement
        between us and you in accordance with its terms.

       

      	 	
              Very truly yours,

            
	 	 
	 	
              AQUESTIVE THERAPEUTICS, INC.

            
	 	 	 
	 	
              By:

            	 
	 	 	
              Name:

            
	 	 	
              Title:

            

      
        

          {Signature Page to the Purchase Agreement}

         

        

      

      
        
          

      

      [PURCHASER SIGNATURE PAGE]

       
        {Signature Page to the Purchase Agreement}

         

        

      

      
        
          

      

      
      ANNEX A

      RULES OF CONSTRUCTION AND DEFINED TERMS

       

      Unless the context otherwise requires, in this Annex A and each Transaction Document (or other document) to which this Annex A is attached:

       

      
        
          	(a)	
                  A term has the meaning assigned to it and an accounting term not otherwise defined has the meaning assigned to it in accordance with GAAP, unless any Transaction Document (or other document) otherwise provides.

                

        

      

       

      
        
          	(b)	
                  Where any payment is to be made, any funds are to be applied or any calculation is to be made under any Transaction Document (or other document) on a day that is not a Business Day, unless any Transaction
                    Document (or other document) otherwise provides, such payment shall be made, such funds shall be applied and such calculation shall be made on the succeeding Business Day, and payments shall be adjusted accordingly, including interest
                    unless otherwise specified.

                

        

      

       

      
        
          	(c)	
                  Words of the masculine, feminine or neuter gender shall mean and include the correlative words of other genders.

                

        

      

       

      
        
          	(d)	
                  The definitions of terms shall apply equally to the singular and plural forms of the terms defined.

                

        

      

       

      
        
          	(e)	
                  The terms “include”, “including” and similar terms shall be construed as if followed by the phrase “without limitation”.

                

        

      

       

      
        
          	(f)	
                  Unless otherwise specified, references to an agreement or other document include references to such agreement or document as from time to time amended, restated, reformed, supplemented or otherwise modified in accordance with the
                    terms thereof (subject to any restrictions on such amendments, restatements, reformations, supplements or modifications set forth in this Annex A or any Transaction Document (or other document)) and include any Annexes, Exhibits
                    and Schedules attached thereto.

                

        

      

       

      
        
          	(g)	
                  References to any Law shall include such Law as from time to time in effect, including any amendment, modification, codification, replacement or reenactment thereof or any substitution therefor.

                

        

      

       

      
        
          	(h)	
                  References to any Person shall be construed to include such Person’s successors and permitted assigns (subject to any restrictions on assignment, transfer or delegation set forth in this Annex A or any Transaction Document
                    (or other document)), and any reference to a Person in a particular capacity excludes such Person in other capacities.

                

        

      

       

      
        
          	(i)	
                  The word “will” shall be construed to have the same meaning and effect as the word “shall”.

                

        

      

       

      
        
          	(j)	
                  The words “hereof”, “herein”, “hereunder” and similar terms when used in this Annex A or any Transaction Document (or other document) shall refer to this Annex A
                    or such Transaction Document (or other document) as a whole and not to any particular provision hereof or thereof, and Article, Section, Annex, Schedule and Exhibit references herein and therein are references to Articles and Sections
                    of, and Annexes, Schedules and Exhibits to, the relevant Transaction Document (or other document) unless otherwise specified.

                

        

      

       

      
        Annex A-1

        
          

      

      
        
          	(k)	
                  In the computation of a period of time from a specified date to a later specified date, the word “from” means “from and including” and each of the words “to” and “until” means “to but excluding”.

                

        

      

       

      
        
          	(l)	
                  References to any action, remedy or method of judicial proceeding for the enforcement of the rights of creditors or of security shall be deemed to include, in respect of any jurisdiction other than the
                    State of New York, references to such action, remedy or method of judicial proceeding for the enforcement of the rights of creditors or of security available or appropriate in such jurisdiction as shall most nearly approximate such
                    action, remedy or method of judicial proceeding described or referred to in the relevant Transaction Document (or other document).

                

        

      

       

      
        Annex A-2

        
          

      

      “$” means lawful money of the United States.

       

      “Accredited Investor” means an “accredited investor” as defined in Rule 501(a)(1), (a)(2), (a)(3) or (a)(7) under the Securities Act that is not (i) a QIB or (ii) a Person other than a U.S.
        person (as defined in Regulation S) that acquires Notes or Warrants in reliance on Regulation S.

       

      “Additional Securities” means the First Additional Securities and the Second Additional Securities (each as defined in the Indenture as of the date of the Purchase Agreements).

       

      “Affiliate” means, with respect to any specified Person, another Person that directly, or indirectly through one or more intermediaries, controls, is controlled by or is under common control
        with the specified Person. For purposes of this definition, “control” means the possession, directly or indirectly, of the power to direct or cause the direction of the management and policies of a Person, whether through the ownership of
        the Capital Stock of such Person that is at the time entitled to vote in the election of the board of directors (or equivalent) of such Person, by contract or otherwise, and “controlled” has a meaning correlative thereto.

       

      “Anti-Money Laundering Laws” has the meaning set forth in Section 5.26 of the Purchase Agreements.

       

      “Business Day” means any day other than a Saturday, a Sunday or any other day on which banking institutions are authorized or required by Law to close in New York City or the city in which
        the Trustee’s corporate trust office is located.

       

      “Capital Stock” means (a) in the case of a corporation, corporate stock or shares, (b) in the case of an association or business entity, any and all shares, interests, participations, rights
        or other equivalents (however designated) of corporate stock, (c) in the case of a partnership or limited liability company, partnership or membership interests (whether general or limited) and membership rights, and (d) any other interest or
        participation that confers on a Person the right to receive a share of the profits and losses of, or distributions of assets of, the issuing Person, in each case to the extent treated as equity in accordance with GAAP, but excluding from all of the
        foregoing any debt securities convertible into or exchangeable for Capital Stock whether or not such debt securities include any right of participation with Capital Stock.

       

      “Closing Date” means the date hereof.

       

      “Code” means the U.S. Internal Revenue Code of 1986, as amended.

       

      “Collateral Agent” means U.S. Bank National Association in its capacity as “Collateral Agent” under the Indenture and under the Security Documents and any successor thereto in such capacity.

       

      “Commission” means the U.S. Securities and Exchange Commission or any successor thereto.

       

      “Common Stock” means (i) the common stock, par value $0.001 per share, of the Issuer and (ii) any other Capital Stock into which such common stock is reclassified or reconstituted.

       

      
        Annex A-3

        
          

      

      “Confidential Information” means, as it relates to the Purchaser (or its Affiliates), all information (whether written or oral, or in electronic or other form) furnished before or after the
        date of this Purchase Agreement concerning the Purchaser or its Affiliates (including any of its equityholders), including any and all information regarding any aspect of the Purchaser’s business, including its owners, funds, strategy, market
        views, structure, investors or potential investors. Such Confidential Information includes any IRS Form W-9 or W-8BEN (or any similar type of form) provided by the Purchaser (or its Affiliates) to the Issuer or its Affiliates. Notwithstanding the
        foregoing definition, “Confidential Information” shall not include information that is (v) independently developed or discovered by the Issuer without use of or access to any information described in the second preceding sentence, as
        demonstrated by documentary evidence, (w) already in the public domain at the time the information is disclosed or has become part of the public domain after such disclosure through no breach of this Purchase Agreement, (x) lawfully obtainable from
        other sources, (y) required to be disclosed in any document to be filed with any Governmental Authority or otherwise required to be disclosed under applicable Law or judicial or administrative proceedings (by oral questions, interrogatories,
        requests for information or documents, subpoena, civil investigation demand or similar process) or pursuant to requests from regulatory agencies having oversight over the Issuer or (z) required to be disclosed by court or administrative order or
        under securities Laws applicable to any party to this Purchase Agreement or pursuant to the rules and regulations of any stock exchange or stock market on which securities of the Issuer or its Affiliates or the Purchaser or its Affiliates may be
        listed for trading.

       

      “DEA” means the U.S. Drug Enforcement Administration or any successor thereto.

       

      “Definitive Security” has the meaning set forth in Appendix A to the Indenture as of the date of the Purchase Agreements.

       

      “DTC” means The Depository Trust Company (including its nominees).

       

      “Environmental Laws” has the meaning set forth in Section 5.22 of the Purchase Agreements.

       

      “Equity Interests” means, with respect to any Person, all of the shares of Capital Stock of (or other ownership, distribution or profit interests or participations in) such Person, all of
        the warrants, options or other rights for the purchase or acquisition from such Person of shares of Capital Stock of (or other ownership, distribution or profit interests or participations in) such Person and all of the other ownership,
        distribution or profit interests or participations in such Person (including partnership, membership or trust interests therein), whether voting or non-voting, and whether or not such shares, warrants, options, rights or other interests or
        participations are outstanding on any date of determination.

       

      “ERISA” means the U.S. Employee Retirement Income Security Act of 1974, as amended.

       

      “ERISA Plan” has the meaning set forth in Section 5.14 of the Purchase Agreements.

       

      “Event of Default” has the meaning set forth in the Indenture as of the date of the Purchase Agreements.

       

      “Exchange Act” means the U.S. Securities Exchange Act of 1934, as amended.

       

      
        Annex A-4

        
          

      

      “Exchange Act Documents” has the meaning set forth in Section 5.4 of the Purchase Agreements.

       

      “FCPA” means the U.S. Foreign Corrupt Practices Act of 1977, as amended.

       

      “FDA” means the U.S. Food and Drug Administration or any successor thereto.

       

      “GAAP” means generally accepted accounting principles in effect in the United States from time to time.

       

      “Global Security” has the meaning set forth in Appendix A to the Indenture as of the date of the Purchase Agreements.

       

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

       

      “Hazardous Substances” means (a) petroleum and petroleum products, by-products or breakdown products, radioactive materials, asbestos-containing materials, polychlorinated biphenyls and mold
        and (b) any other chemical, material or substance defined as toxic or hazardous or as a pollutant, contaminant or waste or words of similar import, or regulated or that can form the basis for liability, under Environmental Laws.

       

      “Immaterial Subsidiaries” has the meaning set forth in the Indenture as of the date of the Purchase Agreements.

       

      “Indenture” means that certain indenture for the Notes, dated as of the Closing Date, by and among the Issuer, the other subsidiary parties from time to time party thereto, the Trustee and
        the Collateral Agent.

       

      “Intellectual Property” has the meaning set forth in Section 5.21(a) of the Purchase Agreements.

       

      “IRS” means the U.S. Internal Revenue Service.

       

      “Issuer” has the meaning set forth in the preamble to the Purchase Agreements.

       

      “Laws” means, collectively, all applicable international, foreign, federal, state and local laws, statutes, treaties, rules, regulations, ordinances, judgments, orders, writs, injunctions,
        decrees, codes and administrative or judicial precedents or authorities, including the binding and enforceable interpretation or administration thereof by any Governmental Authority charged with the enforcement, interpretation or administration
        thereof, and all applicable administrative orders, directed duties, licenses, authorizations and permits of, and binding and enforceable agreements with, any Governmental Authority.

       

      
        Annex A-5

        
          

      

      “Lien” means, with respect to any asset, any mortgage, lien, pledge, charge, security interest or encumbrance of any kind in respect of such asset, whether or not filed, recorded or
        otherwise perfected under applicable Law (including any conditional sale or other title retention agreement, any lease in the nature thereof, any option or other agreement to sell or give a security interest in and any filing of or agreement to
        give any financing statement under the UCC (or equivalent Laws) of any jurisdiction); provided, that in no event shall an operating lease be deemed to constitute a Lien.

       

      “Material Adverse Effect” means a material adverse effect (a) in or affecting the business, condition (financial or otherwise), results of operations, earnings, properties or prospects of
        the Issuer and its Subsidiaries taken as a whole or (b) on the ability of the Issuer to perform its obligations under the Transaction Documents.

       

      “Material Contract” means a contract or other agreement that is required to be filed by the Issuer with the Commission pursuant to Item 601(b)(4), Item 601(b)(10) or Item 601(b)(99) of
        Regulation S-K as an exhibit to the Exchange Act Documents.

       

      “Notes” means the 12.5% Senior Secured Notes due 2025 of the Issuer in the initial outstanding principal balance of $70,000,000 that are issued on the Closing Date pursuant to Section
        2.01(b) of the Indenture and Section 3.1 of the Purchase Agreements.

       

      “Notes Collateral” means all property subject, or purported to be subject from time to time, to a Lien under any Security Documents.

       

      “Other Agreements” has the meaning set forth in Section 3.1(b) of the Purchase Agreements.

       

      “Other Purchasers” has the meaning set forth in Section 3.1(b) of the Purchase Agreements.

       

      “Patents” means (i) an issued patent or a patent application, (ii) all registrations and recordings thereof, (iii) all continuations and continuations-in-part to an issued patent or patent
        application, (iv) all divisions, patents of addition, reissues, renewals and extensions of any patent, patent application, continuation or continuation-in-part and (v) all counterparts of any of the above in any jurisdiction.

       

      “Paying Agent” means an office or agency where Notes may be presented for payment, maintained by the Issuer in accordance with Section 2.04(a) of the Indenture.

       

      “Permits” has the meaning set forth in Section 5.30 of the Purchase Agreements.

       

      “Permitted Lien” has the meaning set forth in the Indenture as of the date of the Purchase Agreements.

       

      “Person” means an individual, corporation, partnership, association, limited liability company, unincorporated organization, trust, joint stock company or joint venture, a Governmental
        Authority or any other entity.

       

      “Placement Agent” means Morgan Stanley & Co. LLC.

       

      
        Annex A-6

        
          

      

      “Plan Assets” has the meaning given to such term by Section 3(42) of ERISA and regulations issued by the U.S. Department of Labor.

       

      “Price” has the meaning set forth in Section 3.1(b) of the Purchase Agreements.

       

      “PTE” means the United States Department of Labor Prohibited Transaction Exemption.

       

      “PTO” means the U.S. Patent and Trademark Office or any successor thereto.

       

      “Purchase Agreement” means this purchase agreement.

       

      “Purchase Agreements” means, collectively, each Purchase Agreement and the Other Agreements.

       

      “Purchase Price” has the meaning set forth in Section 3.1(b) of the Purchase Agreements.

       

      “Purchaser” has the meaning set forth in Section 1.1 of the Purchase Agreements.

       

      “Purchasers” has the meaning set forth in Section 1.1 of the Purchase Agreements.

       

      “QIB” means a qualified institutional buyer within the meaning of Rule 144A.

       

      “QPAM Exemption” means PTE 84-14 (issued December 21, 1982, as subsequently amended).

       

      “Regulation S” means Regulation S under the Securities Act.

       

      “Regulation S Global Security” has the meaning set forth in Appendix A to the Indenture as of the date of the Purchase Agreements.

       

      “Regulatory Agencies” has the meaning set forth in Section 5.31 of the Purchase Agreements.

       

      “Responsible Officer” means, with respect to the Issuer, any director or officer of the Issuer.

       

      “Rule 144A” means Rule 144A under the Securities Act.

       

      “Rule 144A Global Security” has the meaning set forth in Appendix A to the Indenture as of the date of the Purchase Agreements.

       

      “Sanctioned Country” has the meaning set forth in Section 5.27 of the Purchase Agreements.

       

      “Sanctions” has the meaning set forth in Section 5.27 of the Purchase Agreements.

       

      “Securities Act” means the U.S. Securities Act of 1933, as amended.

       

      
        Annex A-7

        
          

      

      “Security Documents” means the security agreements, pledge agreements, mortgages, collateral assignments and related agreements, as amended, supplemented, restated, renewed, refunded,
        replaced, restructured, repaid, refinanced or otherwise modified from time to time, creating, perfecting or otherwise evidencing the security interests in the Notes Collateral as contemplated by the Indenture.

       

      “Similar Law” has the meaning set forth in Section 4.3(b) of the Purchase Agreements.

       

      “Source” has the meaning set forth in Section 4.3(a) of the Purchase Agreements.

       

      “Subsidiary” means, with respect to any Person, (a) any corporation, association or other business entity (other than a partnership, joint venture or limited liability company) of which more
        than 50% of the total voting power of shares of Capital Stock entitled (without regard to the occurrence of any contingency) to vote in the election of directors, managers or trustees thereof is at the time of determination owned or controlled,
        directly or indirectly, by such Person or one or more of the other Subsidiaries of that Person or a combination thereof, and (b) any partnership, joint venture or limited liability company of which (x) more than 50% of the capital accounts,
        distribution rights, total equity and voting interests or general and limited partnership interests, as applicable, are owned or controlled, directly or indirectly, by such Person or one or more of the other Subsidiaries of that Person or a
        combination thereof, whether in the form of membership, general, special or limited partnership interests or otherwise, or (y) such Person or any Subsidiary of such Person is a controlling general partner or otherwise controls such entity. For
        purposes of clarity, a Subsidiary of a Person shall not include any Person that is under common control with the first Person solely by virtue of having directors, managers or trustees in common and shall not include any Person that is solely under
        common control with the first Person (i.e., a sister company with a common parent).

       

      “Taxes” means any present or future tax, fee, duty, levy, tariff, impost, assessment or other charge imposed by a Governmental Authority (including penalties, interest and additions to tax
        applicable thereto).

       

      “Transaction Documents” means the Indenture, the Notes, the Warrants, the Security Documents, the Purchase Agreements, any intercreditor agreement in the form of Exhibit D to the
        Indenture, and each other agreement pursuant to which the Collateral Agent (or its agent) is granted a Lien to secure the obligations under the Indenture or the Notes.

       

      “Trustee” means U.S. Bank National Association, as trustee under the Indenture.

       

      “Trustee Closing Account” means the account maintained with the Trustee at U.S. Bank National Association, ABA No. 091000022, Account No. 1731 0332 1092, Ref. Aquestive Senior Secured Notes,
        Attention: Alison D.B. Nadeau.

       

      “UCC” means the Uniform Commercial Code as in effect in the State of New York; provided, that, if perfection, the effect of perfection or non-perfection or the priority of any
        security interest in any Notes Collateral is governed by the Uniform Commercial Code (or equivalent Law) as in effect in a jurisdiction other than the State of New York, then “UCC” means the Uniform Commercial Code (or equivalent Law) as in
        effect from time to time in such other jurisdiction for purposes of the provisions relating to such perfection, effect of perfection or non-perfection or priority.

       

      
        Annex A-8

        
          

      

      “U.S.” or “United States” means the United States of America, its 50 states, each territory thereof and the District of Columbia.

       

      “Warrants” means that certain warrant or warrants, dated the Closing Date, executed by the Issuer and acknowledged by the Purchaser named therein, in the form attached as Exhibit A.

       

      

       

      

      
        Annex A-9Exhibit 10.2

  

   

  

  
    COLLATERAL AGREEMENT

     

    DATED AS OF JULY 15, 2019

     

    AMONG

     

    AQUESTIVE THERAPEUTICS, INC.,

     as Issuer,

     

    THE OTHER GRANTORS FROM TIME TO TIME PARTY HERETO,

     

    U.S. BANK NATIONAL ASSOCIATION,

     as Trustee,

     

    and

     

    U.S. BANK NATIONAL ASSOCIATION,

    as Collateral Agent

     

    
      

      
        

    

    
    
       TABLE OF CONTENTS

    

     

    	 	
            Page

          
	 	 
	
            Article I DEFINITIONS; RULES OF CONSTRUCTION

          	
            2

          
	 	 
	 	
            Section 1.1

          	
            Terms Defined Elsewhere

          	
            2

          
	 	
            Section 1.2

          	
            Definitions of Certain Terms Used Herein

          	
            2

          
	 	
            Section 1.3

          	
            Rules of Construction

          	
            8

          
	 	 	 	 
	
            Article II GRANT OF SECURITY INTEREST

          	
            9

          
	 	 
	 	
            Section 2.1

          	
            Grant of Security Interest

          	
            9

          
	 	 	 	 
	
            Article III REPRESENTATIONS AND WARRANTIES

          	
            11

          
	 	 
	 	
            Section 3.1

          	
            Validity and Priority of Security Interest

          	
            11

          
	 	
            Section 3.2

          	
            Location of Grantor and Collateral

          	
            12

          
	 	
            Section 3.3

          	
            Exact Names

          	
            12

          
	 	
            Section 3.4

          	
            Accounts and Chattel Paper

          	
            12

          
	 	
            Section 3.5

          	
            Documents, Instruments, and Chattel Paper

          	
            12

          
	 	
            Section 3.6

          	
            Proprietary Rights

          	
            13

          
	 	
            Section 3.7

          	
            Investment Property

          	
            13

          
	 	
            Section 3.8

          	
            Commercial Tort Claims

          	
            14

          
	 	
            Section 3.9

          	
            Bank Accounts

          	
            14

          
	 	
            Section 3.10

          	
            Perfection Certificate

          	
            14

          
	 	
            Section 3.11

          	
            Title to Real Estate

          	
            14

          
	 	
            Section 3.12

          	
            Leases of Property

          	
            14

          
	 	
            Section 3.13

          	
            Trade Names

          	
            14

          
	 	
            Section 3.14

          	
            No Financing Statements or Security Agreements

          	
            15

          
	 	 	 	 
	
            Article IV COVENANTS

          	
            15

          
	 	 
	 	
            Section 4.1

          	
            General

          	
            15

          
	 	
            Section 4.2

          	
            Perfection and Protection of Security Interest

          	
            17

          
	 	
            Section 4.3

          	
            Accounts

          	
            18

          
	 	
            Section 4.4

          	
            Maintenance of Property

          	
            20

          
	 	
            Section 4.5

          	
            Investment Property

          	
            20

          
	 	
            Section 4.6

          	
            Proprietary Rights

          	
            22

          
	 	
            Section 4.7

          	
            Inventory

          	
            23

          
	 	
            Section 4.8

          	
            Commercial Tort Claims

          	
            23

          
	 	
            Section 4.9

          	
            No Interference

          	
            23

          
	 	
            Section 4.10

          	
            Insurance

          	
            24

          
	 	
            Section 4.11

          	
            Condemnation

          	
            24

          
	 	
            Section 4.12

          	
            Further Assurances

          	
            25

          
	 	
            Section 4.13

          	
            Post-Closing Obligations

          	
            27

          

    

    

    
      

      i

      
        

    

    	
            Article V REMEDIES

          	
            27

          
	 	 
	 	
            Section 5.1

          	
            Remedies

          	
            27

          
	 	
            Section 5.2

          	
            Grant of Intellectual Property License

          	
            29

          
	 	
            Section 5.3

          	
            Application of Proceeds

          	
            29

          
	 	 	 	 
	
            Article VI CONCERNING THE COLLATERAL AGENT

          	
            30

          
	 	 
	 	
            Section 6.1

          	
            Reliance by Collateral Agent; Indemnity Against Liabilities.

          	
            30

          
	 	
            Section 6.2

          	
            Exercise of Remedies

          	
            31

          
	 	
            Section 6.3

          	
            Authorized Investments

          	
            31

          
	 	
            Section 6.4

          	
            Bankruptcy Proceedings

          	
            31

          
	 	 	 	 
	
            Article VII COLLATERAL AGENT AND TRUSTEE RIGHTS, DUTIES AND LIABILITIES; ATTORNEY IN FACT; PROXY

          	
            32

          
	 	 
	 	
            Section 7.1

          	
            The Collateral Agent’s and the Trustee’s Rights, Duties and Liabilities

          	
            32

          
	 	
            Section 7.2

          	
            Right to Cure

          	
            33

          
	 	
            Section 7.3

          	
            Confidentiality

          	
            33

          
	 	
            Section 7.4

          	
            Power of Attorney

          	
            35

          
	 	
            Section 7.5

          	
            Proxy

          	
            35

          
	 	
            Section 7.6

          	
            Nature of Appointment; Limitation of Duty

          	
            35

          
	 	
            Section 7.7

          	
            Additional Matters Relating to the Collateral Agent

          	
            36

          
	 	
            Section 7.8

          	
            Appointment of Co-Collateral Agent

          	
            38

          
	 	
            Section 7.9

          	
            Instructions under Account Control Agreement

          	
            39

          
	 	 	 	 
	
            Article VIII GENERAL PROVISIONS

          	
            39

            

          
	 	 
	 	
            Section 8.1

          	
            Notices

          	
            39

          
	 	
            Section 8.2

          	
            Waiver of Notices

          	
            40

          
	 	
            Section 8.3

          	
            Limitation on Collateral Agent’s and Other Secured Parties’ Duty with Respect to the Collateral

          	40
	 	
            Section 8.4

          	
            Compromises and Collection of Collateral

          	
            41

          
	 	
            Section 8.5

          	
            Specific Performance of Certain Covenants

          	41
	 	
            Section 8.6

          	
            Cumulative Remedies; No Prior Recourse to Collateral

          	41
	 	
            Section 8.7

          	
            Limitation by Law; Severability of Provisions

          	42
	 	
            Section 8.8

          	
            Reinstatement

          	42
	 	
            Section 8.9

          	
            Binding Effect

          	42
	 	
            Section 8.10

          	
            Survival of Representations

          	42
	 	
            Section 8.11

          	
            Guaranties; Third Party Joinder

          	43
	 	
            Section 8.12

          	
            Captions

          	43
	 	
            Section 8.13

          	
            Termination and Release

          	43
	 	
            Section 8.14

          	
            Entire Agreement

          	
            43

          
	 	
            Section 8.15

          	
            Governing Law; Jurisdiction; Consent to Service of Process

          	
            43

          
	 	
            Section 8.16

          	
            Waiver of Jury Trial

          	
            44

          

    

    

    
      

      ii

      
        

    

    	 	
            Section 8.17

          	
            Indemnity

          	
            44

          
	 	
            Section 8.18

          	
            Limitation of Liability

          	
            45

          
	 	
            Section 8.19

          	
            Currency of Account; Conversion of Currency; Foreign Exchange Restrictions

          	45
	 	
            Section 8.20

          	
            Counterparts

          	
            46

          
	 	
            Section 8.21

          	
            Amendments

          	47
	 	
            Section 8.22

          	
            Incorporation by Reference

          	47
	 	
            Section 8.23

          	
            English Language

          	47
	 	
            Section 8.24

          	
            Intercreditor Agreements

          	47

    

    

    	
            Schedule 1.2:

          	
            UCC Filing Offices

          
	
            Schedule 3.12:

          	
            Leased Property

          
	
            Schedule 4.13:

          	
            Post-Closing Obligations

          
	 	 
	
            Exhibit A:

          	
            Form of Perfection Certificate

          
	
            Exhibit B:

          	
            Form of Amendment

          
	
            Exhibit C:

          	
            Form of Supplement

          

    

    

    
      

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     COLLATERAL AGREEMENT

     

    This COLLATERAL AGREEMENT is entered into as of July 15, 2019 (as more fully defined in Section 1.2 below, this “Agreement”) by and among AQUESTIVE THERAPEUTICS, INC., a Delaware corporation
      with an address at 30 Technology Drive, Warren, New Jersey 07059 (the “Issuer” and a Grantor as defined below), any other GRANTOR from time to time party hereto, U.S. BANK NATIONAL ASSOCIATION, in its capacity as trustee (and its successors
      under the Indenture (as defined below), in such capacity, the “Trustee”), and U.S. BANK NATIONAL ASSOCIATION, in its capacity as collateral agent for the Secured Parties (as defined below) (and its successors under the Indenture, in such
      capacity, the “Collateral Agent”).

     

    PRELIMINARY STATEMENT

     

    WHEREAS, pursuant to the terms, conditions and provisions of (a) the Indenture dated as of the date hereof (as more fully defined in Section 1.2 below, the “Indenture”) among the Issuer, the
      Guarantors (as defined below) from time to time party thereto, the Trustee and the Collateral Agent, and (b) each Purchase Agreement dated the date hereof (collectively, and as amended, extended, renewed, restated, supplemented, waived or otherwise
      modified from time to time, the “Purchase Agreements”) between the Issuer and each purchaser party thereto (collectively, the “Purchasers”), the Issuer is issuing the Securities (as defined below), which are senior secured obligations
      of the Issuer;

     

    WHEREAS, the initial aggregate principal amount of the Securities is $70,000,000;

     

    WHEREAS, additional Securities in an aggregate principal amount not to exceed $30,000,000 may be issued pursuant to the terms of the Indenture and subject to the conditions therein and in the
      Purchase Agreements;

     

    WHEREAS, the Indenture permits the Issuer and the other Grantors to grant a Lien (as defined below) on the Intercreditor Collateral (as defined below) to one or more ABL Collateral Agents (as defined
      below) and holders of ABL Obligations (as defined below);

     

    WHEREAS, the Issuer, the other Grantors, the Collateral Agent, the Co-Collateral Agent (as defined below) (if applicable), the Trustee and the other parties thereto may enter into one or more
      Intercreditor Agreements (as defined below), which will govern the Liens on the Intercreditor Collateral granted by this Agreement and the Liens granted by the ABL Documents (as defined below);

     

    WHEREAS, the Issuer is executing and delivering this Agreement, pursuant to the terms of the Purchase Agreements, to induce the Trustee to enter into the Indenture and to induce the Purchasers to
      purchase the Securities; and

     

    WHEREAS, the Issuer has duly authorized its execution and delivery of, and its performance of its obligations under, this Agreement.

     

    NOW, THEREFORE, for and in consideration of the premises and of the mutual covenants herein contained, and in order to induce the Trustee to enter into the Indenture and the Purchasers to purchase
      the Securities, each of the Issuer, each other Grantor that becomes bound hereby, the Trustee and the Collateral Agent, on behalf of itself and each Secured Party (and each of their respective successors or assigns), hereby agrees as follows:

     

    
      

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     ARTICLE I

    DEFINITIONS; RULES OF CONSTRUCTION

     

    Section 1.1         Terms Defined Elsewhere. Terms defined in the Indenture that are not otherwise defined in this Agreement are used herein with the respective definitions assigned to such
      terms in the Indenture. Terms defined in the UCC (as defined below) that are not otherwise defined in this Agreement are used herein as defined in the UCC. In the event that any term used in this Agreement and not otherwise defined in this Agreement
      is defined in both Indenture and the UCC, the definition in the Indenture shall control.

     

    Section 1.2          Definitions of Certain Terms Used Herein. As used in this Agreement, the following terms have the following meanings:

     

    “ABL Collateral Agent” has the meaning assigned to such term in the applicable Intercreditor Agreement.

     

    “ABL Documents” has the meaning assigned to such term in the applicable Intercreditor Agreement or, if no such Intercreditor Agreement is then in effect, the Indenture.

     

    “ABL Liens” has the meaning assigned to such term in the applicable Intercreditor Agreement or, if no such Intercreditor Agreement is then in effect, the Indenture.

     

    “ABL Obligations” has the meaning assigned to such term in the applicable Intercreditor Agreement or, if no such Intercreditor Agreement is then in effect, the Indenture.

     

    “ABL Secured Parties” has the meaning assigned to such term in the applicable Intercreditor Agreement.

     

    “ABL Security Documents” has the meaning assigned to such term in the applicable Intercreditor Agreement.

     

    “Account” means, with respect to a Person, any of such Person’s now owned or hereafter acquired or arising “accounts” (as defined in the UCC), including any rights to payment for the sale of
      goods or rendering of services, whether or not such rights have been earned by performance, and “Accounts” means, with respect to any such Person, all of the foregoing.

     

    “Account Control Agreement” means any account control agreement, account pledge, charge over accounts or similar agreement, among a Grantor, the Collateral Agent and the depository or other
      financial institution at which such Grantor maintains an account, which, in each case, is in form and substance reasonably satisfactory to the Collateral Agent acting at the direction of the Majority Holders (it being agreed that any agreement that
      shall require the Collateral Agent to indemnify any institution in its individual capacity (but not in its limited capacity as a Collateral Agent) shall not be reasonably satisfactory to the Collateral Agent).

     

    
      

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    “Account Debtor” means each Person obligated on an Account, Chattel Paper or General Intangible.

     

    “Affiliate” has the meaning assigned to such term in the Indenture.

     

    “After-Acquired Property” has the meaning assigned to such term in the Indenture.

     

    “Agreement” has the meaning assigned to such term in the preamble, as amended, extended, renewed, restated, supplemented, waived or otherwise modified from time to time.

     

    “Amendment” has the meaning assigned to such term in Section 4.2(a).

     

    “Bankruptcy Proceeding” means, with respect to any Person, a general assignment by such Person for the benefit of its creditors, or the institution by or against such Person of any proceeding
      seeking relief as debtor, or seeking to adjudicate such Person as bankrupt or insolvent, or seeking reorganization, arrangement, adjustment or composition of such Person or its debts, under any law or regulation relating to bankruptcy, insolvency,
      reorganization or relief of debtors, or seeking appointment of a receiver, trustee, custodian or other similar official for such Person or for any substantial part of its property.

     

    “Base Currency” has the meaning assigned to such term in Section 8.19(b)(i).

     

    “Cash Equivalents” has the meaning assigned to such term in the Indenture.

     

    “Chattel Paper” means any “chattel paper”, as such term is defined in the UCC, now owned or hereafter acquired by any Person and, in any event, shall include all Electronic Chattel Paper and
      Tangible Chattel Paper.

     

    “Co-Collateral Agent” means a financial institution appointed by the Collateral Agent in accordance with Section 7.7(a) and Section 7.8 to act as co-collateral agent for the Secured Parties.

     

    “Collateral” has the meaning assigned to such term in Section 2.1.

     

    “Collateral Agent” has the meaning assigned to such term in the preamble.

     

    “Collateral Agent’s Liens” means the Liens on the Collateral granted to the Collateral Agent (or any Co-Collateral Agent), for the benefit of the Secured Parties, pursuant to this Agreement
      and the other Indenture Documents.

     

    “Collateral Account” has the meaning assigned to such term in the Indenture.

     

    “Commercial Tort Claims” means, with respect to a Person, all of such Person’s now owned or hereafter acquired “commercial tort claims”, as defined by the UCC, including those commercial tort
      claims identified on Schedule 12 to any Perfection Certificate and as specifically identified hereinafter, and, in any event, shall include any claim now owned or hereafter acquired by any Person, arising in tort, with respect to which: (a) the
      claimant is an organization; or (b) the claimant is an individual and the claim (i) arose in the course of the claimant’s business or profession and (ii) does not include damages arising out of personal injury to or the death of an individual.

     

    
      

      3

      
        

    

    “Confidential Information” has the meaning assigned to such term in Section 7.3(b).

     

    “Confidential Parties” has the meaning assigned to such term in Section 7.3(c).

     

    “Control” has the meaning assigned to such term in Article 8 of the UCC or, if applicable, in Section 9-104, 9-105, 9-106 or 9-107 of the UCC.

     

    “Copyright, Patent and Trademark Agreements” means each copyright security agreement, patent collateral agreement and trademark collateral agreement executed (and, if necessary, notarized and
      legalized) and delivered by any Grantor to the Collateral Agent to evidence or perfect the Collateral Agent’s security interest in and Lien on such Grantor’s present and future copyrights, patents, trademarks and related licenses and rights for the
      benefit of the Secured Parties.

     

    “Default” has the meaning assigned to such term in the Indenture.

     

    “Effective Date” means the date of this Agreement.

     

    “Electronic Chattel Paper” means any “electronic chattel paper”, as such term is defined in the UCC, now owned or hereafter acquired by any Person.

     

    “Equipment” means, with respect to a Person, all of such Person’s now owned and hereafter acquired “equipment” (as defined in the UCC), machinery, furniture, furnishings, fixtures and other
      tangible personal property (except Inventory), including rolling stock with respect to which a certificate of title has been issued, aircraft, dies, tools, jigs and office equipment, as well as all of such types of property leased by such Person and
      all of such Person’s rights and interests with respect thereto under such leases (including options to purchase), together with all present and future additions and accessions thereto, replacements therefor, component and auxiliary parts and supplies
      used or to be used in connection therewith, and all substitutes for any of the foregoing, and all manuals, drawings, instructions, warranties and rights with respect thereto, wherever any of the foregoing is located.

     

    “Equity Interests” has the meaning assigned to such term in the Indenture.

     

    “Event of Default” has the meaning assigned to such term in the Indenture.

     

    “Excluded Assets” has the meaning assigned to such term in the Indenture.

     

    “Fair Market Value” has the meaning assigned to such term in the Indenture.

     

    “Filing Office” means, with respect to each Grantor, the office specified on Schedule 1.2 and, if applicable, any other appropriate office of the state or other jurisdiction where such
      Grantor is “located” (as such term is used in Section 9-307 of the UCC).

     

    
      

      4

      
        

    

    “Financial Assets” means any “financial asset”, as such term is defined in the UCC, now owned or hereafter acquired by any Person.

     

    “General Intangibles” means, with respect to a Person, all of such Person’s now owned or hereafter acquired “general intangibles”, as defined in the UCC, including payment intangibles, choses
      in action and causes of action and all other intangible personal property of such Person of every kind and nature (other than Accounts), including all contract rights, Proprietary Rights, corporate or other business records, inventions, designs,
      blueprints, plans, specifications, patents, patent applications, trademarks, service marks, trade names, trade secrets, goodwill, copyrights, computer software, customer lists, registrations, licenses, franchises, tax refund claims, any funds that
      may become due to such Person in connection with the termination of any employee benefit plan or any rights thereto and any other amounts payable to such Person from any employee benefit plan, rights and claims against carriers and shippers, rights
      to indemnification, business interruption insurance and proceeds thereof, property, casualty or any similar type of insurance and any proceeds thereof, proceeds of insurance covering the lives of key employees on which such Person is beneficiary,
      rights to receive dividends, distributions, cash, instruments and other property in respect of or in exchange for pledged Equity Interests or Investment Property, and any letter of credit, guarantee, claim, security interest or other security held by
      or granted to such Person.

     

    “Governmental Authority” has the meaning assigned to such term in the Indenture.

     

    “Grantors” means the Issuer and any other Person that becomes a party to this Agreement as a Grantor after the Effective Date.

     

    “Guarantor” has the meaning assigned to such term in the Indenture.

     

    “Holder” has the meaning assigned to such term in the Indenture.

     

    “Indebtedness” has the meaning assigned to such term in the Indenture.

     

    “Indemnified Liabilities” has the meaning assigned to such term in Section 8.17.

     

    “Indemnified Person” has the meaning assigned to such term in Section 8.17.

     

    “Indenture” has the meaning assigned to such term in the Preliminary Statement, as amended, restated or supplemented from time to time.

     

    “Indenture Documents” means (a) the Indenture, (b) the Securities, (c) each Intercreditor Agreement, (d) each other Security Document, including this Agreement, and (e) any other related
      documents or instruments executed and delivered pursuant to or in connection with any of the foregoing documents, in each case, as such agreements may be amended, extended, renewed, restated, supplemented, waived or otherwise modified from time to
      time.

     

    “Intercompany Obligations” means, collectively, all indebtedness, obligations and other amounts at any time owing to any Grantor from any of such Grantor’s Subsidiaries or Affiliates and all
      interest, cash, instruments and other property from time to time received, receivable or otherwise distributed in respect of or in exchange for any or all of such indebtedness, obligations or other amounts.

     

    
      

      5

      
        

    

    “Intercreditor Agreement” means each Lien Subordination and Intercreditor Agreement substantially in the form attached as Exhibit D to the Indenture entered into by one or more Grantors, the
      Collateral Agent and one or more ABL Collateral Agents (as such agreement may be amended, extended, renewed, restated, supplemented, waived or otherwise modified from time to time).

     

    “Intercreditor Collateral” has the meaning assigned to such term in the applicable Intercreditor Agreement or, if no such Intercreditor Agreement is then in effect, the Indenture.

     

    “Inventory” means, with respect to a Person, all of such Person’s now owned and hereafter acquired “inventory”, as defined in the UCC, goods and merchandise, wherever located, in each case to
      be furnished under any contract of service or held for sale or lease, all returned goods, raw materials, work-in-process, finished goods (including embedded software), other materials and supplies of any kind, nature or description that are used or
      consumed in such Person’s business or used in connection with the packing, shipping, advertising, selling or finishing of such goods, merchandise and other property, and all documents of title or other documents representing them.

     

    “Investment Property” means, with respect to a Person, all of such Person’s right, title and interest in and to any and all “investment property”, as defined in the UCC, including all (a)
      securities, whether certificated or uncertificated, (b) securities entitlements, (c) securities accounts, (d) commodity contracts, (e) commodity accounts and (f) Equity Interests, together with all other units, shares, partnership interests,
      membership interests, membership rights, Equity Interests, rights or other equivalent evidences of ownership (howsoever designated) issued by any Person.

     

    “Investment Property Issuer” has the meaning assigned to such term in Section 4.2(d).

     

    “Issuer” has the meaning assigned to such term in the preamble.

     

    “Judgment Currency” has the meaning assigned to such term in Section 8.19(b)(i).

     

    “Lien” has the meaning assigned to such term in the Indenture.

     

    “Majority Holders” means, at any time, the Holders or beneficial owners of a majority of the aggregate principal amount of the Securities then outstanding.

     

    “Material Adverse Effect” has the meaning assigned to such term in the Purchase Agreements.

     

    “Mortgaged Properties” means the owned and leased real properties and real property interests, including improvements thereto, of any Grantor specified on Schedule 13 to any Perfection
      Certificate of such Grantor with respect to which a Mortgage is granted pursuant to Section 4.12(b).

     

    
      

      6

      
        

    

    “Mortgages” means the mortgages, deeds of trust, assignments of leases and rents, modifications and other security documents in favor of the Collateral Agent, for the benefit of itself and the
      other Secured Parties, by which the Grantors have granted to the Collateral Agent, as security for the Obligations, a Lien upon Real Estate.

     

    “Noteholder First Lien Collateral” has the meaning assigned to such term in the applicable Intercreditor Agreement or, if no such Intercreditor Agreement is then in effect, the Indenture.

     

    “Obligations” has the meaning assigned to the term “Noteholder Obligations” in the Indenture.

     

    “Officer” has the meaning assigned to such term in the Indenture.

     

    “Officers’ Certificate” has the meaning assigned to such term in the Indenture.

     

    “Opinion of Counsel” has the meaning assigned to such term in the Indenture.

     

    “Perfection Certificate” means a certificate substantially in the form of Exhibit A, completed and supplemented with the schedules and attachments contemplated thereby, delivered by
      any Grantor, including as amended by any certificate subsequently delivered pursuant to Section 4.1(e) or Section 4.12(a).

     

    “Permitted Liens” has the meaning assigned to such term in the Indenture.

     

    “Permit Rights” means, with respect to a Person, all of such Person’s now owned and hereafter arising or acquired new drug applications, abbreviated new drug applications and similar filings,
      registrations, notices or the like to manufacture, use, store, import, export, transport, market, promote, sell or place on market any pharmaceutical product or device (or equivalent non-U.S. applications), including the foregoing set forth on
      Schedule 7 of the applicable Perfection Certificate, and any licenses, franchises and permits related to the conduct of such Person’s business.

     

    “Person” has the meaning assigned to such term in the Indenture.

     

    “Pledged Collateral” has the meaning assigned to such term in Section 4.5(c).

     

    “Proprietary Rights” means, with respect to a Person, all of such Person’s patents, patent rights, copyrights, works that are the subject matter of copyrights (including software), trademarks,
      service marks, trade names, trade styles, patent, trademark and service mark applications, and all licenses and rights related to any of the foregoing, including those patents, copyrights and trademarks set forth on Schedule 6 of the applicable
      Perfection Certificate, and all other rights under any of the foregoing, all extensions, renewals, reissues, divisions, continuations and continuations in part of any of the foregoing, and all rights to sue for past, present and future infringement
      of any of the foregoing.

     

    “Purchase Agreements” has the meaning assigned to such term in the Preliminary Statement.

     

    
      

      7

      
        

    

    “Purchasers” has the meaning assigned to such term in the Preliminary Statement.

     

    “Real Estate” means, with respect to any Person, all of such Person’s now or hereafter owned or leased estates in real property, including all fees, leaseholds and future interests, together
      with all of such Person’s now and hereafter owned or leased interests in the improvements thereon, the fixtures attached thereto and the easements appurtenant thereto.

     

    “Related Person” means, with respect to any specified Person, such Person’s Affiliates and the respective officers, directors, employees, agents, advisors and attorneys-in-fact of such Person
      and its Affiliates.

     

    “Requirement of Law” means, as to any Person, any law (statutory or common), treaty, rule or regulation or determination of an arbitrator or of a Governmental Authority, in each case
      applicable to or binding upon the Person or any of its property or to which the Person or any of its property is subject.

     

    “Restricted Subsidiary” has the meaning assigned to such term in the Indenture.

     

    “Secured Parties” means (a) the Collateral Agent (including any Co-Collateral Agent), (b) each Holder of Securities, (c) the beneficiaries of each indemnification obligation undertaken by any
      Grantor under any Indenture Document, (d) the Trustee and (e) the successors and permitted assigns of each of the foregoing.

     

    “Securities” has the meaning assigned to such term in the Indenture.

     

    “Security Documents” has the meaning assigned to such term in the Indenture.

     

    “Subsidiary” has the meaning assigned to such term in the Indenture.

     

    “Tangible Chattel Paper” means any “tangible chattel paper” (as defined in the UCC), now owned or hereafter acquired by any Person.

     

    “Trustee” has the meaning assigned to such term in the preamble.

     

    “UCC” means the Uniform Commercial Code (or any successor statute), as in effect from time to time, of the State of New York or of any other state the laws of which are required as a result
      thereof to be applied in connection with the creation or perfection of security interests.

     

    Section 1.3          Rules of Construction. Unless the context otherwise requires:

     

    (a)          a term has the meaning assigned to it;

     

    (b)          the word “or” is not exclusive;

     

    (c)          the word “including” means including without limitation, and any item or list of items set forth following the word “including”, “include” or “includes” in this Agreement is set forth
      only for the purpose of indicating that, regardless of whatever other items are in the category in which such item or items are “included”, such item or items are in such category and shall not be construed as indicating the items in the category in
      which such item or items are “included” are limited to such item or items similar to such items;

     

    
      

      8

      
        

    

    (d)          all references in this Agreement to any designated “Article”, “Section”, “Exhibit”, “Schedule”, definition and other subdivision are to the designated Article, Section, Exhibit,
      Schedule, definition and other subdivision, respectively, of this Agreement;

     

    (e)          all references in this Agreement to (i) the words “herein”, “hereof” and “hereunder” and other words of similar import refer to this Agreement as a whole and not to any particular
      Article, Section, Schedule, Exhibit and other subdivision, respectively, and (ii) the term “this Agreement” means this Agreement as a whole, including the Schedules and the Exhibits;

     

    (f)          words in the singular include the plural and words in the plural include the singular;

     

    (g)          “$” and “U.S. Dollars” each refers to United States dollars, or such other money of the United States of America that at the time of payment is legal tender for payment of public and
      private debts;

     

    (h)          the words “asset” or “property” shall be construed to have the same meaning and effect and to refer to any and all tangible and intangible assets and properties, including cash,
      securities, accounts and contract rights;

     

    (i)          unless otherwise specified, all references to an agreement or other document include references to such agreement or document as from time to time amended, restated, reformed,
      supplemented or otherwise modified in accordance with the terms thereof (subject to any restrictions on such amendments, restatements, reformations, supplements or modifications set forth in the Indenture Documents);

     

    (j)           all references to any Person shall be construed to include such Person’s successors and permitted assigns (subject to any restrictions on assignment, transfer or delegation set forth in
      the Indenture Documents), and any reference to a Person in a particular capacity excludes such Person in other capacities; and

     

    (k)          the word “will” shall be construed to have the same meaning and effect as the word “shall”.

     

    ARTICLE II

    GRANT OF SECURITY INTEREST

     

    Section 2.1         Grant of Security Interest. As security for the Obligations, each Grantor hereby grants to the Collateral Agent, for the benefit of the Secured Parties, a continuing
      security interest in and lien on such Grantor’s right, title and interest in and to all of the following property and assets of such Grantor, whether now owned or existing or hereafter acquired or arising, regardless of where located:

     

    (a)          all Accounts (including any credit enhancement therefor) and Intercompany Obligations;

     

    
      

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    (b)          all Chattel Paper;

     

    (c)          all Commercial Tort Claims;

     

    (d)          all contract rights, leases, letters of credit, letter-of-credit rights, instruments, promissory notes, documents and documents of title;

     

    (e)          all Financial Assets;

     

    (f)           all Equipment;

     

    (g)          all General Intangibles, including all Proprietary Rights and all Permit Rights;

     

    (h)          all Investment Property, including the Equity Interests of each Subsidiary;

     

    (i)           all Inventory;

     

    (j)           all money, cash, cash equivalents, securities and other property of any kind;

     

    (k)         all deposit accounts, securities accounts, commodity accounts, credits and balances with, and other claims against, any bank, financial institution, depositary institution, broker,
      securities intermediary, commodity intermediary or other Person with which such Grantor maintains deposits, including the Collateral Account;

     

    (l)           all books, records and other property related to or referring to any of the foregoing, including books, records, account ledgers, data processing records, computer software and other
      property, and General Intangibles at any time evidencing or relating to any of the foregoing;

     

    (m)         all supporting obligations in respect of any of the foregoing;

     

    (n)         all other items, kinds and types of personal property, tangible or intangible, of whatever nature, and regardless of whether the creation or perfection or effect of perfection or
      non-perfection of a security interest therein is governed by the UCC of any particular jurisdiction or by another applicable treaty, convention, statute, law or regulation of any applicable jurisdiction; and

     

    (o)          all accessions to, substitutions for and replacements, products and proceeds of any of the foregoing, including After-Acquired Property, proceeds of any insurance policies, claims
      against third parties, and condemnation or requisition payments with respect to all or any of the foregoing.

     

    All of the foregoing, and all other property of each Grantor in which a Secured Party may at any time be granted a Lien to secure the Obligations, are herein collectively referred to as the “Collateral”; provided,
      however, that, notwithstanding anything herein to the contrary, the Collateral (which, for the avoidance of doubt, includes references to the defined terms used within the definition of Collateral) shall not include, and the security interest
      shall not attach to, any and all Excluded Assets.

     

    
      

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     ARTICLE III

    REPRESENTATIONS AND WARRANTIES

     

    Each Grantor, jointly and severally, represents and warrants to the Collateral Agent, for the benefit of the Secured Parties, as of the Effective Date and as of each date after the Effective Date on
      which Securities are issued pursuant to the Indenture, as follows:

     

    Section 3.1          Validity and Priority of Security Interest.

     

    (a)         This Agreement creates in favor of the Collateral Agent, for the ratable benefit of the Secured Parties, a legal, valid and enforceable security interest in the Collateral, including the
      Permit Rights, and the proceeds thereof and (i) when the Pledged Collateral is delivered to the Collateral Agent, the Lien created under this Agreement and the other applicable Security Documents shall constitute a fully perfected Lien on and in all
      right, title and interest of the Grantors in such Pledged Collateral, in each case prior and superior in right to any other Person, subject to Permitted Liens of the type set forth in clause (3) of the definition thereof in the Indenture, which may
      be prior to the Lien of the Collateral Agent, and (ii) when financing statements in appropriate form are filed in the Filing Offices, the Lien created under this Agreement and the other applicable Security Documents will constitute a fully perfected
      Lien on and in all right, title and interest of the Grantors in such Collateral in which a security interest can be perfected by filing a financing statement in the United States, including with respect to the Permit Rights, in each case prior and
      superior in right to any other Person, subject to Permitted Liens.

     

    (b)         Each Grantor agrees and consents to the recordation of the Copyright, Patent and Trademark Agreements with the United States Patent and Trademark Office or the United States Copyright
      Office (and any other applicable jurisdiction’s copyright, patent or trademark office), as applicable, together with the financing statements in appropriate form filed in the Filing Offices. Upon filing in the Filing Offices and, with respect to any
      Proprietary Rights specified in the applicable Grantor’s Perfection Certificate, the United States Patent and Trademark Office and/or the United States Copyright Office, as applicable, the Lien created shall constitute a fully perfected Lien on and
      in all right, title and interest of such Grantor in the U.S. Proprietary Rights in which a security interest may be perfected by filing in the United States and its territories and possessions, in each case prior and superior in right to any other
      Person, subject to Permitted Liens.

     

    (c)         Upon the entry by any Grantor in any Account Control Agreement the Lien granted hereunder on the Collateral subject to such Account Control Agreement shall constitute a fully perfected,
      first priority Lien on all right, title and interest of the Grantors in the Collateral covered thereby and the proceeds thereof, in each case prior and superior in right to any Person, subject to Permitted Liens of the type set forth in clause (3),
      (6)(A), (9), (23) or (26) of the definitions thereof in the Indenture, which may be prior to the Lien of the Collateral Agent.

     

    
      

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    (d)         Upon the entry by any Grantor in any Mortgage such Mortgage shall create in favor of the Collateral Agent, for the ratable benefit of the Secured Parties, a legal, valid and enforceable
      Lien on all of the applicable Grantor’s right, title and interest in and to the Mortgaged Property thereunder and the proceeds thereof, and when such Mortgage is filed in the appropriate recording office(s), such Mortgage shall constitute a fully
      perfected Lien on all right, title and interest of such Grantor in such Mortgaged Property and the proceeds thereof, in each case prior and superior in right to any Person, subject to Permitted Liens.

     

    Section 3.2        Location of Grantor and Collateral. Such Grantor’s Perfection Certificate contains a correct and complete list of such Grantor’s sole jurisdiction of incorporation,
      formation or organization (as applicable), its place or places of business, including an indication of its chief executive office, the location of its books and records, the locations of the Collateral (other than Inventory that is in transit,
      consignments of Inventory not in excess of $500,000, rolling stock, and Collateral in the Collateral Agent’s possession or the possession of any ABL Collateral Agent or Equipment in transit and Equipment at other locations for purposes of maintenance
      or repair). Such Grantor’s Perfection Certificate correctly identifies any of such locations that are not owned by such Grantor and sets forth the names of the owners, landlords, bailees, lessors or sublessors of such locations.

     

    Section 3.3         Exact Names. The name in which each Grantor has executed this Agreement is the exact name as it appears in such Grantor’s organizational documents, as filed with such
      Grantor’s jurisdiction of organization or incorporation (as applicable). Except as set forth on such Grantor’s Perfection Certificate or as permitted by the Indenture or this Agreement, since the date of its organization or incorporation, no Grantor
      has been known by or used any other corporate or fictitious name, been a party to any merger or consolidation or acquired all or substantially all of the assets of any Person.

     

    Section 3.4         Accounts and Chattel Paper. The names of the obligors, amounts owing, due dates and other information with respect to each Grantor’s Accounts and Chattel Paper that are
      Collateral are and will be correctly stated, in all material respects, at the time furnished, in all records of such Grantor relating thereto and in all invoices furnished to the Collateral Agent by such Grantor from time to time.

     

    Section 3.5         Documents, Instruments, and Chattel Paper. All documents, instruments and Chattel Paper of each Grantor describing, evidencing or constituting Collateral, and all
      signatures and endorsements thereon, are and will be complete, valid and genuine in all material respects. All goods evidenced by such documents, instruments and Chattel Paper are and will be owned by such Grantor free and clear of all Liens (subject
      to Permitted Liens). If any Grantor retains possession of any Chattel Paper or other instruments, at the Collateral Agent’s request upon an Event of Default, such Chattel Paper or instruments shall be marked with the following legend: “This writing
      and the obligations evidenced or served hereby are subject to the security interest of U.S. Bank National Association, as Collateral Agent, for the benefit of the Collateral Agent and certain other secured parties.”

     

    
      

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    Section 3.6          Proprietary Rights. Schedule 6 of each Grantor’s Perfection Certificate sets forth a correct and complete list of all of such Grantor’s registered or applied for patents,
      copyrights and trademarks material to its business, in each case owned by such Grantor in its own name. None of the patents, copyrights and trademarks listed in such Perfection Certificate is subject to any licensing agreement or similar arrangement
      except as set forth therein. To the best of such Grantor’s knowledge, no slogan or other advertising device, product, process, method, substance, part or other material now employed by any Grantor infringes any valid and enforceable rights held by
      any other Person, which infringement could reasonably be expected to have a Material Adverse Effect. No claim or litigation regarding any of the foregoing is pending against any Grantor or threatened in a writing received by any Grantor.

     

    Section 3.7          Investment Property.

     

    (a)          Schedule 8 of each Grantor’s Perfection Certificate sets forth a correct and complete list of all of the Investment Property owned by such Grantor. Each Grantor is the legal and
      beneficial owner of such Investment Property, as so identified, free and clear of any Lien (other than Permitted Liens), and has not sold, granted any option with respect to, assigned or transferred, or otherwise disposed of any of its rights or
      interests therein (other than pursuant to Permitted Liens). Furthermore, (i) to such Grantor’s knowledge, all Investment Property constituting an Equity Interest has been (to the extent such concepts are relevant with respect to such Investment
      Property) duly authorized and validly issued by the Investment Property Issuer thereof and are fully paid and non‐assessable, (ii) with respect to any certificates delivered to the Collateral Agent representing an Equity Interest, either such
      certificates are securities as defined in Article 8 of the UCC or, if such certificates are not securities as defined in Article 8 of the UCC, such Grantor has taken all necessary steps to perfect the security interest of the Collateral Agent for the
      benefit of the Secured Parties therein as a General Intangible, and (iii) to such Grantor’s knowledge, all Investment Property that represents Indebtedness owed to any Grantor has been duly authorized, authenticated or issued and delivered by the
      Investment Property Issuer of such Indebtedness is the legal, valid and binding obligation of such Investment Property Issuer and such Investment Property Issuer is not in default thereunder.

     

    (b)         To the best of such Grantor’s knowledge, (i) none of the Investment Property that constitutes Collateral has been issued or transferred in violation in any material respect of the
      securities registration, securities disclosure or similar laws of any jurisdiction to which such issuance or transfer may be subject and (ii) none of such Investment Property is or will be subject to any option, right of first refusal, shareholders
      agreement, charter or by-law provisions or contractual restriction of any nature that would prohibit, impair, delay or otherwise affect the pledge of such Investment Property hereunder, the sale or disposition thereof pursuant hereto or the exercise
      by the Collateral Agent of rights and remedies hereunder.

     

    (c)         To the extent any Grantor is an Investment Property Issuer: (i) the owners of the Investment Property Issuer’s Equity Interests that are Grantors and the ownership interest of each such
      owner in the Investment Property Issuer are as set forth on the applicable Perfection Certificate, and each such owner is the registered owner thereof on the books of the Investment Property Issuer, consents to the Lien of the Collateral Agent
      hereunder or under any other Security Document and waives any restriction or limitation in any agreement that would otherwise prohibit or limit such Lien; (ii) the Investment Property Issuer acknowledges the Collateral Agent’s Lien; (iii) to the
      extent required to perfect the Collateral Agent’s Liens, such security interest, collateral assignment, lien and pledge in favor of the Collateral Agent has been registered on the books of the Investment Property Issuer for such purpose as of the
      date hereof; and (iv) the Investment Property Issuer is not aware of any liens, restrictions or adverse claims that exist on any such Investment Property other than Permitted Liens of the type set forth in clause (3) of the definition thereof in the
      Indenture and the continuing security interest and lien in favor of the Collateral Agent granted pursuant to Section 2.1.

     

    
      

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    Section 3.8         Commercial Tort Claims. No Grantor holds any Commercial Tort Claims the recovery from which could reasonably be expected to exceed $500,000, for which such Grantor has
      filed a complaint in a court of competent jurisdiction, except as indicated on Schedule 12 of each Perfection Certificate.

     

    Section 3.9          Bank Accounts. Schedule 10 of each Perfection Certificate contains a complete and accurate list of all bank accounts, including deposit accounts, securities accounts and
      commodity accounts, other than any Excluded Assets, maintained by such Grantor with any bank, financial institution, depositary institution, broker, securities intermediary, commodity intermediary or other Person.

     

    Section 3.10       Perfection Certificate . Each Perfection Certificate delivered by any Grantor has been duly prepared, completed and executed and the information set forth therein is true,
      correct and complete as stated therein as of the date provided and, with respect solely to the most recent Perfection Certificate delivered, as of each date subsequent to the date delivered on which Securities are issued pursuant to the Indenture.

     

    Section 3.11       Title to Real Estate. Each Grantor has good, marketable and indefeasible title in fee simple to the Real Estate identified on Schedule 13 to such Grantor’s Perfection
      Certificate as owned by such Grantor and good and valid leasehold interest to the Real Estate identified on such Schedule 13 as leased by such Grantor, in each case except for Permitted Liens of the type described in clauses (2), (3), (5), (8), (9),
      (13), (21), (27), (29) and (32).  No part of the Mortgaged Properties (a) has been materially damaged, destroyed, condemned or abandoned or (b) is the subject of condemnation proceedings.

     

    Section 3.12       Leases of Property. Schedule 3.12 sets forth a correct and complete list of all leases and subleases of real or personal property by each Grantor as lessee or
      sublessee (other than any Excluded Assets, and other than any leases of personal property as to which it is lessee or sublessee for which the value of such personal property is less than $500,000), and all leases and subleases of real or personal
      property by each Grantor as lessor or sublessor. Each of such leases and subleases is valid and enforceable in accordance with its terms (except as limited by applicable bankruptcy, insolvency, reorganization, moratorium or similar laws and to the
      effect of general principles of equity whether applied by a court of law or equity) and is in full force and effect, and, to the Grantors’ knowledge, no default by any party to any such lease or sublease exists. Each Grantor party to any lease of
      Real Estate between Grantors subordinates its right, title and interest under such lease to the Lien of the Collateral Agent and agrees that such lease shall, at the election of the Collateral Agent, so long as an Event of Default has occurred and is
      continuing, be terminated by notice from the Collateral Agent to such Grantors.

     

    Section 3.13       Trade Names. Schedule 3 to the Perfection Certificate provided by each Grantor includes all trade names, business names, fictitious names, corporate names or other names
      used by such Grantor, including any names under which such Grantor sells Inventory or creates Accounts, or to which instruments in payment of Accounts are made payable.

     

    
      

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    Section 3.14       No Financing Statements or Security Agreements. No financing statement or security agreement describing all or any portion of the Collateral and naming a Grantor as debtor
      has been filed or is of record in any jurisdiction except for (a) financing statements or security agreements naming the Collateral Agent on behalf of the Secured Parties as the secured party, (b) financing statements or security agreements naming
      the ABL Collateral Agents on behalf of the ABL Secured Parties as secured party, (c) financing statements in connection with Permitted Liens and (d) those that are no longer effective.

     

    ARTICLE IV

    COVENANTS

     

    From the date hereof, and thereafter until this Agreement is terminated, each Grantor agrees as follows:

     

    Section 4.1          General.

     

    (a)         Each Grantor shall maintain at all times reasonably detailed, accurate (in all material respects) and updated books and records pertaining to the Collateral and promptly furnish to the
      Collateral Agent such information relating to the Collateral as the Collateral Agent shall from time to time reasonably request.

     

    (b)         The Collateral Agent may, and each Grantor hereby authorizes the Collateral Agent to, at any time and from time to time, file financing statements, continuation statements and amendments
      thereto that describe the Collateral as “all assets” or words of similar import and that contain any other information required pursuant to Article 9 of the UCC for the sufficiency of filing office acceptance of any financing statement, continuation
      statement or amendment, and each Grantor agrees to furnish any such information to the Collateral Agent promptly upon request. The Collateral Agent shall inform the applicable Grantor of any such filing either prior to, or reasonably promptly after,
      such filing. Each Grantor acknowledges that it is not authorized to file any financing statement covering the Collateral or amendment or termination statement with respect to any financing statement covering the Collateral without the prior written
      consent of the Collateral Agent and agrees that it will not do so without such consent, subject to (i) the Grantors’ rights under Section 9-509(d)(2) of the UCC and (ii) financing statements that may be filed, in accordance with the Indenture or each
      Intercreditor Agreement, to perfect or release any ABL Liens or Permitted Liens.

     

    (c)         Each Grantor shall, at any time and from time to time, (i) notify, in form reasonably satisfactory to the Collateral Agent, any warehouseman, bailee or any of such Grantor’s agents or
      processors having possession of any Collateral consisting of Inventory or Equipment with a Fair Market Value in excess of $500,000 (calculated based on such Grantor’s estimate of the Fair Market Value of the Inventory or Equipment to be possessed by
      such warehouseman, bailee, agent or processor over the course of any calendar year on a weighted average basis) of the security interest of the Collateral Agent in such Collateral (with a copy of such notice sent to the Collateral Agent), (ii) use
      its commercially reasonable efforts to obtain an acknowledgment, in form reasonably satisfactory to the Collateral Agent acting at the direction of the Majority Holders, from such warehouseman, bailee, agent or processor (other than with respect to
      any Intercreditor Collateral, unless the ABL Collateral Agents shall also have obtained such acknowledgement from such warehouseman, bailee, agent or processor), to the extent not already having otherwise entered into a subordination agreement for
      the benefit of the Collateral Agent, stating that the warehouseman, bailee, agent or processor holds such Collateral for the Collateral Agent, subject to each Intercreditor Agreement, and (iii) take such steps as are necessary or as the Collateral
      Agent may reasonably request (A) for the Collateral Agent to obtain “control” of any Investment Property, deposit accounts, securities accounts, commodity accounts, letter-of-credit rights or Electronic Chattel Paper constituting Noteholder First
      Lien Collateral in excess of $500,000 individually or $2,000,000 in the aggregate (other than Investment Property constituting Equity Interests of a Subsidiary for which no minimum dollar amount shall apply), excluding any Excluded Assets, with any
      agreements establishing control to be in form reasonably satisfactory to the Collateral Agent acting at the direction of the Majority Holders, and (B) to otherwise ensure the continued perfection and priority of the Collateral Agent’s security
      interest in any of the Collateral (to the extent required hereunder) and of the preservation of its rights therein. The $500,000 threshold described in clause (iii)(A) of the preceding sentence as it relates to any deposit account, securities account
      or commodity account shall be measured by reference to the closing balance of such account as of each Business Day.

     

    
      

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    (d)         Each Grantor agrees to furnish to the Collateral Agent prompt written notice of (i) any change in (A) such Grantor’s name; (B) such Grantor’s jurisdiction or other place of incorporation,
      formation or organization or place of business and (C) form of entity or organization, in each case at least fifteen (15) days prior thereto; (ii) such Grantor’s Federal Taxpayer Identification Number or organizational identification number assigned
      to it by its jurisdiction of incorporation, formation or organization; or (iii) the acquisition by such Grantor of any material property for which additional filings or recordings are necessary to perfect and maintain the Collateral Agent’s security
      interest therein (to the extent perfection of the security interest in such property is required hereby or by the terms of the Indenture). Each Grantor agrees not to effect or permit any change referred to in the preceding sentence unless all filings
      are promptly made under the UCC or other applicable law that are required in order for the Collateral Agent to continue at all times following such change to have a valid, legal and perfected security interest (subject to the terms of each
      Intercreditor Agreement and subject to Permitted Liens) in the Collateral for its benefit and the benefit of the other Secured Parties.

     

    (e)          No Grantor shall (i) maintain any Collateral with a Fair Market Value in excess of $500,000 (other than Inventory in transit, consignments of Inventory not in excess of $500,000, rolling
      stock, Equipment in transit between locations set forth on such Grantor’s Perfection Certificate, Equipment at other locations for purposes of maintenance or repair and Collateral in the Collateral Agent’s possession or the possession of any ABL
      Collateral Agent) at any location other than those locations listed on such Grantor’s Perfection Certificate, (ii) otherwise change or add to any of such locations or (iii) change the location of its jurisdiction of incorporation, formation or
      organization (as applicable) from the location identified on such Grantor’s Perfection Certificate, unless in each case it gives the Collateral Agent prompt written notice thereof (but in any event in the case of clause (iii) not later than fifteen
      (15) days prior thereto) and executes or authorizes the filing of any and all financing statements and other documents that are necessary or that the Collateral Agent reasonably requests in connection therewith. In the event any Grantor changes or
      adds any location of Collateral, such Grantor shall prepare and promptly deliver to the Collateral Agent a revised Perfection Certificate. Each Grantor agrees not to effect or permit any change referred to in this Section 4.1(e) unless all filings
      are promptly made under the UCC or other applicable law that are required in order for the Collateral Agent to continue at all times following such change to have a valid, legal and perfected security interest (subject to the terms of each
      Intercreditor Agreement and subject to Permitted Liens) in the Collateral for its benefit and the benefit of the other Secured Parties.

     

    
      

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    Section 4.2          Perfection and Protection of Security Interest.

     

    (a)         Each Grantor shall, at its expense, perform all steps necessary or otherwise reasonably requested by the Collateral Agent (at the direction of the Majority Holders) at any time to
      perfect, maintain, protect and enforce the Collateral Agent’s Liens, subject to the terms of each Intercreditor Agreement, including: (i) filing and recording the Copyright, Patent and Trademark Agreements and amendments thereof in the United States
      Patent and Trademark Office, the United States Copyright Office and any other applicable jurisdiction’s copyright, patent or trademark office, and filing financing statements or continuation statements in the respective Filing Office; (ii) to the
      extent constituting Noteholder First Lien Collateral, delivering to the Collateral Agent the originals of all instruments, documents and Chattel Paper (in each case in excess of $250,000), and all other Collateral of which the Collateral Agent is
      required to have or of which it reasonably requests to have physical possession in order to perfect and protect the Collateral Agent’s security interest therein, duly pledged, endorsed or assigned to the Collateral Agent as provided herein; (iii)
      delivering to the Collateral Agent a duly executed amendment to this Agreement, in the form of Exhibit B (each, an “Amendment”), pursuant to which such Grantor will pledge any additional Collateral that constitutes Commercial Tort
      Claims; (iv) upon the occurrence and during the continuation of an Event of Default, delivering to the Collateral Agent (A) warehouse receipts covering any portion of the Noteholder First Lien Collateral located in warehouses and for which warehouse
      receipts are issued, (B) warehouse receipts covering any portion of the Intercreditor Collateral (so long as no ABL Liens are outstanding on such Collateral) located in warehouses and for which warehouse receipts are issued and (C) if requested by
      the Collateral Agent, certificates of title reflecting the Collateral Agent’s Liens covering any portion of the Collateral for which certificates of title have been issued; (v) when an Event of Default exists, transferring Inventory to warehouses or
      other locations designated by the Collateral Agent; (vi) upon the occurrence and during the continuance of an Event of Default, delivering to the Collateral Agent all letters of credit constituting Collateral on which such Grantor is named
      beneficiary; and (vii) taking such other steps as are reasonably deemed necessary or desirable by the Collateral Agent (acting at the direction of the Majority Holders) to maintain, protect and enforce the Collateral Agent’s Liens. To the extent
      permitted by any Requirement of Law, the Collateral Agent may file, without any Grantor’s signature, one or more financing statements disclosing the Collateral Agent’s Liens. Each Grantor hereby authorizes the Collateral Agent to attach each
      Amendment to this Agreement and agrees that all additional collateral set forth in such Amendments shall be considered to be part of the Collateral.

     

    (b)        If at any time any Collateral with a Fair Market Value in excess of $500,000 (other than Intercreditor Collateral, unless (i) no ABL Liens on such Collateral are outstanding or (ii) the
      applicable ABL Collateral Agent shall also have obtained such waiver or subordination from such landlord) is located at any operating facility of a Grantor that is not owned by such Grantor, such Grantor shall, upon request, use commercially
      reasonable efforts to obtain written landlord lien waivers or subordinations, in form reasonably satisfactory to the Collateral Agent, of all present and future Liens to which the owner or lessor of such premises may be entitled to assert against
      such Collateral.

     

    
      

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    (c)         From time to time, subject to each Intercreditor Agreement, each Grantor shall, upon the Collateral Agent’s reasonable request, execute and deliver confirmatory written instruments
      pledging to the Collateral Agent, for the benefit of the Secured Parties, the Collateral with respect to such Grantor, but the failure to do so shall not affect or limit any security interest or any other rights of the Secured Parties in and to the
      Collateral with respect to such Grantor.

     

    (d)          To the extent any Grantor is the owner of any Investment Property that is Collateral (each such Person that issues any such Investment Property being referred to herein as an “Investment
        Property Issuer”) (x) with a Fair Market Value in excess of $500,000 or (y) constituting Equity Interests, each Grantor that is the owner of any such Investment Property agrees that it shall use its commercially reasonable efforts to cause the
      Investment Property Issuer thereof to agree as follows with respect to such Investment Property:

     

    (i)         all such Investment Property issued by such Investment Property Issuer, all warrants and all non-cash dividends and other non-cash distributions in respect thereof at
      any time registered in the name of, or otherwise deliverable to, any Grantor shall be delivered directly to the Collateral Agent for the account of such Grantor;

     

    (ii)        during the existence of any Event of Default, upon notice by the Collateral Agent, all cash dividends, cash distributions and other cash or cash equivalents in respect
      of such Investment Property at any time payable or deliverable to any Grantor shall be delivered directly to the Collateral Agent, for the account of the Secured Parties, at the Collateral Agent’s address for notices set forth in Section 8.1; and

     

    (iii)       with respect to any of such Investment Property at any time constituting an uncertificated security as defined by the UCC, such Investment Property Issuer will comply
      with instructions originated by the Collateral Agent without further consent by the registered owner thereof.

     

    Section 4.3          Accounts.

     

    (a)          So long as no ABL Liens are outstanding on an Account, no Grantor shall re-date any invoice or sale or make sales on extended dating or extend or modify such Account outside the ordinary
      course of business.

     

    (b)         So long as no ABL Liens are outstanding on an Account: (i) each Grantor shall notify the Collateral Agent promptly of all offsets, deductions, defenses or counterclaims in excess of
      $500,000 claimed by any Account Debtor with respect to such Account (not including rebates, returns, discounts and chargebacks made or given in the ordinary course of such Grantor’s business), and agrees to settle, contest or adjust such dispute or
      claim at no expense to the Secured Parties; (ii) no discount, credit or allowance shall be granted to any such Account Debtor, except for discounts, credits and allowances made or given in the ordinary course of such Grantor’s business (unless an
      Event of Default has occurred and is continuing and the Collateral Agent has notified the applicable Grantor that such exception is withdrawn); (iii) such Grantor shall promptly send the Collateral Agent a copy of each credit memorandum in excess of
      $500,000 (not including any credit memorandum that relates to rebates, returns, discounts and chargebacks made or given in the ordinary course of such Grantor’s business); and (iv) the Collateral Agent may, at all times when an Event of Default
      exists, settle or adjust disputes and claims directly with such Account Debtor of any Grantor for amounts and upon terms that the Collateral Agent shall consider advisable.

     

    
      

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    (c)          So long as no ABL Liens are outstanding on Inventory, if an Account Debtor returns to a Grantor such Inventory involving an amount in excess of $500,000 (not including rebates, returns,
      discounts and chargebacks made or given in the ordinary course of such Grantor’s business), then: (i) unless an Event of Default exists and the Collateral Agent has given notice to the applicable Grantor not to do so, such Grantor shall promptly
      determine the reason for such return and shall issue a credit memorandum to the Account Debtor in the appropriate amount; (ii) if an Event of Default exists, such Grantor shall (A) hold such returned Inventory in trust for the Collateral Agent, (B)
      segregate such returned Inventory from all of its other property, (C) dispose of such returned Inventory solely according to the Collateral Agent’s written instructions and (D) not issue any credits or allowances with respect thereto without the
      Collateral Agent’s prior written consent; and (iii) such Grantor shall promptly notify the Collateral Agent of such return of Inventory, indicating the reasons for the return and the location and condition of the returned Inventory. All returned
      Inventory of any Grantor shall be subject to the Collateral Agent’s Liens thereon, subject to the terms of each Intercreditor Agreement.

     

    (d)          If any Grantor at any time holds or acquires an interest in any Electronic Chattel Paper or any “transferable record”, as that term is defined in Section 201 of the Federal Electronic
      Signatures in Global and National Commerce Act or in Section 16 of the Uniform Electronic Transactions Act as in effect in any relevant jurisdiction, such Grantor shall promptly notify the Collateral Agent thereof and (other than if such Electronic
      Chattel Paper constitutes Intercreditor Collateral for which ABL Liens are outstanding) shall take such action as is necessary to vest in the Collateral Agent Control under Section 9-105 of the UCC of such Electronic Chattel Paper or control (to the
      extent the meaning of “control” has not been clearly established under such provisions, “control” in this paragraph shall have such meaning as the Collateral Agent acting at the direction of the Majority Holders shall reasonably specify in writing
      after consultation with the Issuer) under Section 201 of the Federal Electronic Signatures in Global and National Commerce Act or, as the case may be, Section 16 of the Uniform Electronic Transactions Act, as so in effect in such jurisdiction, of
      such transferable record. The Collateral Agent agrees with such Grantor that the Collateral Agent will arrange, pursuant to procedures reasonably satisfactory to the Collateral Agent and so long as such procedures will not result in the Collateral
      Agent’s loss of Control or control, as applicable, which may be established to the satisfaction of the Collateral Agent pursuant to the delivery to it by such Grantor of an Officers’ Certificate or an Opinion of Counsel, for the Grantor to make
      alterations to the Electronic Chattel Paper or transferable record permitted under Section 9-105 of the UCC or, as the case may be, Section 201 of the Federal Electronic Signatures in Global and National Commerce Act or Section 16 of the Uniform
      Electronic Transactions Act for a party in Control to allow without loss of Control or control, as applicable, unless an Event of Default has occurred and is continuing or would occur after taking into account any action by such Grantor with respect
      to such Electronic Chattel Paper or transferable record.

     

    
      

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    Section 4.4         Maintenance of Property. Except as otherwise permitted hereunder or pursuant to the other Indenture Documents, each Grantor shall maintain all of its property necessary or
      useful in the conduct of its business, in reasonable operating condition and repair, ordinary wear and tear and obsolescence excepted.

     

    Section 4.5          Investment Property.

     

    (a)          The Collateral Agent, on behalf of the Secured Parties, shall hold certificated Investment Property that is Collateral in the name of the applicable Grantor, endorsed or assigned in
      blank or in favor of the Collateral Agent, but following the occurrence and during the continuance of an Event of Default shall have the right (in its sole and absolute discretion) to hold such Investment Property in its own name as pledgee or in the
      name of its nominee (as pledgee or as sub-agent). Each Grantor will promptly give to the Collateral Agent copies of any material notices or other material communications received by it with respect to any Investment Property that is Collateral
      registered in the name of such Grantor. Following the occurrence and during the continuance of an Event of Default, the Collateral Agent shall at all times have the right to exchange the certificates representing Investment Property that is
      Collateral for certificates of smaller or larger denominations for any purpose consistent with this Agreement.

     

    (b)         Unless an Event of Default exists and the Collateral Agent has delivered a notice as contemplated by Section 4.5(c), (i) each Grantor shall be entitled to exercise any and all voting and
      other consensual rights (including the right to give consents, waivers and notifications in respect of any securities) pertaining to its Investment Property that is Collateral or any part thereof; provided, however, that without the
      prior written consent of the Collateral Agent and the Trustee obtained in accordance with the Indenture, no vote shall be cast or consent, waiver or ratification given or action taken that would (A) be inconsistent with or violate any provision of
      the Indenture or any other Indenture Document or (B) amend, modify or waive any term, provision or condition of the certificate of incorporation, bylaws, certificate of formation or other charter document or other agreement relating to, evidencing,
      providing for the issuance of or securing any such Investment Property in any manner that would materially impair the value of such Investment Property, the transferability of such Investment Property or the Collateral Agent’s Liens in such
      Investment Property, and (ii) each Grantor shall be entitled to receive and retain any and all dividends, interest paid and other cash distributions in respect of any of such Investment Property (unless otherwise required by the Indenture).

     

    
      

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    (c)          During the existence of an Event of Default, after delivery of written notice to the applicable Grantor, (i) the Collateral Agent may exercise all voting and corporate rights at any
      meeting of any corporation, partnership or other business entity issuing any of the Investment Property that is Collateral and the proceeds thereof (in cash or otherwise) (collectively, the “Pledged Collateral”) held by the Collateral Agent
      hereunder, and any and all rights of conversion, exchange or subscription or any other rights, privileges or options pertaining to any of the Pledged Collateral as if it were the absolute owner thereof, including the right to exchange at its
      discretion any and all of the Pledged Collateral upon the merger, consolidation, reorganization, recapitalization or other readjustment of any Investment Property Issuer or upon the exercise by any such issuer or the Collateral Agent of any right,
      privilege or option pertaining to any of the Pledged Collateral, and, in connection therewith, to deposit and deliver any and all of the Pledged Collateral with any committee, depositary, transfer agent, registrar or other designated agency upon such
      terms and conditions as it may determine, all without liability except to account for property actually received by it, but the Collateral Agent shall have no duty to exercise any of the aforesaid rights, privileges or options, and the Collateral
      Agent shall not be responsible for any failure to do so or delay in so doing, (ii) all rights of any Grantor to exercise the voting and other consensual rights that it would otherwise be entitled to exercise pursuant to Section 4.5(b) and to receive
      the dividends, interest and other distributions that it would otherwise be authorized to receive and retain thereunder shall be suspended until such Event of Default shall no longer exist or as the Collateral Agent shall otherwise specify, and all
      such rights shall, until such Event of Default shall no longer exist or as the Collateral Agent shall otherwise specify, thereupon become vested in the Collateral Agent, which shall thereupon have the sole right, but no duty, to exercise such voting
      and other consensual rights and to receive and hold as Pledged Collateral such dividends, interest and other distributions, (iii) all dividends, interest and other distributions that are received by any Grantor contrary to the provisions of this
      Section 4.5(c) shall be received in trust for the benefit of the Collateral Agent, shall be segregated from other funds of such Grantor and shall be forthwith paid over to the Collateral Agent as Collateral in the same form as so received (with any
      necessary endorsement) and (iv) each Grantor shall execute and deliver (or cause to be executed and delivered) to the Collateral Agent all such proxies and other instruments as are necessary or that the Collateral Agent may reasonably request for the
      purpose of enabling the Collateral Agent to exercise the voting and other rights that it is entitled to exercise pursuant to this Section 4.5(c) and to receive the dividends, interest and other distributions that it is entitled to receive and retain
      pursuant to this Section 4.5(c). The foregoing shall not in any way limit the Collateral Agent’s power and authority granted pursuant to Section 7.4. After all Events of Default have been cured or waived and the applicable Grantor shall have
      delivered to the Collateral Agent certificates to that effect, the Collateral Agent shall promptly repay to each Grantor (without interest) all dividends or other distributions that such Grantor would otherwise be permitted to retain pursuant to the
      terms of Section 4.5(b) and that remain in such account.

     

    (d)         The Grantors will cause or permit the Collateral Agent from time to time to cause the appropriate Investment Property Issuers (and, if held with a securities intermediary, such securities
      intermediary) of uncertificated securities or other types of Pledged Collateral not represented by certificates to mark their books and records with the numbers and face amounts of all such uncertificated securities or other types of Pledged
      Collateral not represented by certificates and all rollovers and replacements therefor to reflect the Lien of the Collateral Agent granted pursuant to this Agreement. The Grantors will take any actions reasonably necessary to cause (i) the Investment
      Property Issuers of uncertificated securities that are Pledged Collateral and (ii) any securities intermediary that is the holder of any Pledged Collateral to cause the Collateral Agent to have and retain Control over such Pledged Collateral.
      Notwithstanding the foregoing provisions of this Section 4.5(d), each Grantor will only be required to use commercially reasonable efforts to cause or permit the Collateral Agent to take the actions described in this Section 4.5(d) with respect to
      any Investment Property Issuer (and, if held with a securities intermediary, such securities intermediary) of uncertificated securities or other types of Pledged Collateral with respect to which Investment Property Issuers are not Affiliates or
      Subsidiaries of such Grantor or with respect to which a Grantor owns or Controls less than 50% of the Equity Interests of such Investment Property Issuer not represented by certificates.

     

    
      

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    Section 4.6          Proprietary Rights.

     

    (a)          The Issuer shall notify the Collateral Agent promptly if it knows or reasonably expects that any application or registration for any Proprietary Right (now or hereafter existing) owned
      by the Issuer and material to the conduct of the business of the Issuer or any Subsidiary of the Issuer may become abandoned or dedicated to the public, or of any material adverse determination or development (including the institution of, or any
      such determination or development in, any proceeding in any court, but excluding any of the foregoing in the United States Patent and Trademark Office provided in the normal course of prosecution of any pending patent or trademark application, such
      as any office action, examiner interview or the like) regarding the ownership by the Issuer or any of its Affiliates of any such Proprietary Right or its right to register the same or to keep and maintain the same.

     

    (b)         The Issuer, either directly or through any agent, employee, licensee or designee, shall inform the Collateral Agent on an annual basis of each application for the registration of any
      material Proprietary Right owned by the Issuer or any of its Affiliates with the United States Patent and Trademark Office, the United States Copyright Office or any similar office or agency in any jurisdiction filed during the preceding year.

     

    (c)          Each Grantor shall take all actions necessary to maintain and pursue each material application, to obtain the relevant registration/patent and to maintain the registration/patent of each
      of the Proprietary Rights (now or hereafter existing) owned or licensed by such Grantor and material to the conduct of such Grantor’s business or the business of any Affiliate of such Grantor, except in cases where, in the ordinary course of business
      consistent with past practice, such Grantor reasonably decides to abandon, allow to lapse or expire any Proprietary Right, including the filing of applications for renewal, affidavits of use and affidavits of non-contestability and, if consistent
      with good business judgment, to initiate opposition and interference and cancellation proceedings against third parties.

     

    (d)         Each Grantor shall, unless it shall reasonably determine that a Proprietary Right owned by such Grantor is not material to the conduct of its business, promptly notify the Collateral
      Agent and shall, if necessary in its good business judgment, promptly sue for infringement, misappropriation or dilution of such Proprietary Right and seek recovery of any and all damages for such infringement, misappropriation or dilution, and shall
      take such other actions as are reasonably appropriate under the circumstances to protect such Proprietary Right.

     

    (e)          Without limiting the generality of the obligations under Section 4.1 and Section 4.2, promptly following the acquisition or creation by any Grantor of any Proprietary Right pending,
      registered, issued or granted in the United States of America, such Grantor will take all necessary steps to vest in the Collateral Agent a perfected security interest in such Proprietary Rights, including executing and delivering any and all
      security agreements or other instruments as are reasonably necessary to evidence the Collateral Agent’s security interest in such Proprietary Right and the General Intangibles of such Grantor represented thereby and the recordation of such
      agreements, instruments or other filings in the applicable intellectual property office or other filing office as are necessary to perfect the Collateral Agent’s security interest in such Proprietary Rights and the General Intangibles of such Grantor
      represented thereby.

     

    
      

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    (f)          Each Grantor will take all commercially reasonable steps to vest in the Collateral Agent a perfected security interest in any of its Proprietary Rights pending, registered, issued or
      granted in any non-U.S. jurisdiction (in accordance with the advice of counsel in such jurisdiction, which, if customary in such jurisdiction, may be in the form of an opinion of counsel in such jurisdiction) to the extent permitted under the laws of
      such jurisdiction, including the recordation of such security interest in any applicable intellectual property office or registry in such jurisdiction (to the extent permitted under the laws of such jurisdiction) and the preparation, execution and
      delivery of all documents required in connection therewith, if, as reasonably determined and certified by the Issuer in an Officers’ Certificate delivered concurrently with the delivery of annual financial statements pursuant to Section 4.02(a) of
      the Indenture, the revenue accounted for by such Proprietary Right in such jurisdiction for such fiscal year exceeds 2.5% of the consolidated revenue of the Issuer and the Restricted Subsidiaries for such fiscal year.  The Issuer shall promptly
      notify the Collateral Agent in writing if a security interest in such Proprietary Right in such jurisdiction is not perfected within 180 days following the date when the revenue exceeds the threshold in the preceding sentence.

     

    Section 4.7          Inventory.

     

    (a)          Each Grantor shall keep its Inventory (other than returned or obsolete Inventory) in good and marketable condition, except for damaged or defective goods arising in the ordinary course
      of such Grantor’s business. Each Grantor will conduct a physical count of its Inventory (i) so long as no ABL Liens are outstanding on such Inventory, at least once per fiscal year, and (ii) during the existence of an Event of Default, at such other
      times as the Collateral Agent may request and provide a report thereof to the Collateral Agent.

     

    (b)          In connection with all Inventory financed by letters of credit, so long as no ABL Liens are outstanding on such Inventory, each Grantor will instruct all suppliers, carriers, forwarders,
      customs brokers, warehouses or other Persons receiving or holding documents or instruments in which the Collateral Agent holds a security interest to deliver them to the Collateral Agent and/or subject them to the Collateral Agent’s order and, if
      they shall come into such Grantor’s possession, to deliver them to the Collateral Agent in their original form. The Grantors shall also designate the Collateral Agent as the consignee on all bills of lading and other negotiable and non-negotiable
      documents with respect to Inventory upon which no ABL Liens are outstanding.

     

    Section 4.8          Commercial Tort Claims. If any Grantor shall at any time acquire a Commercial Tort Claim, the recovery from which could reasonably be expected to exceed $500,000, such
      Grantor shall promptly notify the Collateral Agent thereof in a writing, therein providing a reasonable description and summary thereof, and, upon delivery thereof to the Collateral Agent, together with an Amendment as contemplated by Section
      4.2(a)(iii), such Grantor shall be deemed thereby to grant to the Collateral Agent a security interest in such Commercial Tort Claim.

     

    Section 4.9         No Interference. Each Grantor agrees that it will not interfere with any right, power and remedy of the Collateral Agent provided for in this Agreement or now or hereafter
      existing at law or in equity or by statute or otherwise or with the exercise or beginning of the exercise by the Collateral Agent of any one or more of such rights, powers or remedies.

     

    
      

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    Section 4.10        Insurance.

     

    (a)          The Grantors shall maintain with financially sound and reputable insurers insurance that is reasonably consistent with prudent industry practice, including flood insurance with regard to
      any Real Estate that constitutes all or some portion of the Collateral and that is located in a flood zone.

     

    (b)         For each of the insurance policies issued as required by this Section 4.10 with respect to Collateral, each Grantor shall cause the Collateral Agent, for the benefit of the Secured
      Parties, to be named as an additional insured with respect to insurance policies for general liability for bodily injury and a lender loss payee for insurance policies for property damage.  Certificates of insurance of such policies shall be
      delivered to the Collateral Agent if requested.

     

    (c)         The Issuer shall promptly provide written notice to the Collateral Agent of any loss, damage or destruction to the Collateral in excess of (A) $1,500,000 if covered by insurance or (B)
      $500,000 if not covered by insurance. During the existence of an Event of Default, subject to each Intercreditor Agreement and the rights of any applicable ABL Collateral Agent and any other ABL Secured Parties, the Collateral Agent is hereby
      authorized to directly collect all insurance proceeds in respect of Collateral and to apply such proceeds in accordance with Section 5.3.

     

    (d)         Unless the Grantors provide the Collateral Agent with evidence of the insurance coverage on the Collateral required by this Section 4.10, subject to each Intercreditor Agreement, the
      Collateral Agent may, upon thirty (30) days’ prior written notice, purchase insurance at the applicable Grantor’s expense to protect the Collateral Agent’s Lien on such Collateral owned by the applicable Grantor. This insurance may, but need not,
      protect the interests of the Grantors. The coverage that the Collateral Agent purchases may (but shall not be required to) pay any claim that the Grantors make or any claim that is made against the Grantors in connection with said Collateral. The
      Grantors may later cancel any insurance purchased by the Collateral Agent but only after providing the Collateral Agent with evidence that the Grantors have obtained insurance as required by this Agreement. If the Collateral Agent purchases such
      insurance, the applicable Grantor will be responsible for the costs of that insurance, including interest and any other reasonable charges the Collateral Agent may impose in connection with the placement of insurance, until the effective date of the
      cancellation or expiration of the insurance. The costs of the insurance shall be added to the Obligations. The costs of the insurance may be more than the cost of insurance that the Grantors may be able to obtain on their own.

     

    Section 4.11        Condemnation. Subject to each Intercreditor Agreement and the rights of any applicable ABL Collateral Agent and any other ABL Secured Parties, each Grantor shall, promptly
      upon learning of the institution of any proceeding for the condemnation or other taking of any of its property with a Fair Market Value in excess of $500,000, notify the Collateral Agent of the pendency of such proceeding.

     

    
      

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    Section 4.12        Further Assurances.

     

    (a)          The Grantors shall, at their own cost and expense, execute and deliver, or cause to be executed and delivered, to the Collateral Agent and/or the Trustee such documents and agreements,
      and shall take or cause to be taken such actions, as are necessary or that the Collateral Agent and/or the Trustee may, from time to time, reasonably request to carry out the terms and conditions of this Agreement and the other Indenture Documents.
      In addition, from time to time, the Grantors will, at their cost and expense, promptly secure the Obligations by pledging or creating, or causing to be pledged or created, perfected Liens with respect to such of its assets and properties (other than
      Excluded Assets) as the Collateral Agent or the Trustee may designate.  Within ninety (90) days (or such later date as the Collateral Agent may agree in its reasonable discretion) following the acquisition by any Grantor of any After-Acquired
      Property (other than any Excluded Assets), including the formation of any new direct or indirect Subsidiary of a Grantor permitted in accordance with the Indenture, and to the extent such After-Acquired Property is not automatically included in the
      Collateral pursuant to the then-existing Security Documents or by operation of law (but subject to the limitations, if applicable, set forth herein, in the Indenture or in each Intercreditor Agreement), such Grantor shall execute and deliver such
      mortgages, deeds of trust, security instruments, pledge agreements, financing statements (or amendments to existing Security Documents and financing statements) and certificates and opinions of counsel as shall be reasonably necessary to vest in the
      Collateral Agent a perfected Lien in such After-Acquired Property and to have such After-Acquired Property added to the Collateral and shall promptly deliver such Officers’ Certificates and Opinions of Counsel as are customary in secured financing
      transactions in the relevant jurisdictions or as are reasonably requested by the Trustee or the Collateral Agent (subject to customary assumptions, exceptions and qualifications), and thereupon all provisions of this Agreement relating to the
      Collateral shall be deemed to relate to such After-Acquired Property to the same extent and with the same force and effect. If any property or asset of any Grantor originally deemed to be an Excluded Asset at any point ceases to be an Excluded Asset
      pursuant to such defined term, all or the applicable portion of such property or asset shall be deemed to be After-Acquired Property and shall be added to the Collateral in accordance with the Indenture, this Agreement and each Intercreditor
      Agreement. Subject to each Intercreditor Agreement, such Liens will be created under security agreements, mortgages, deeds of trust and other instruments and documents in form reasonably satisfactory to the Collateral Agent, and the Grantors shall
      deliver or cause to be delivered to the Collateral Agent and the Trustee all such instruments and documents (including legal opinions, Officers’ Certificates, title insurance policies and lien searches) as are necessary or that the Collateral Agent
      shall reasonably request to evidence compliance with this Section 4.12(a). The Grantors shall furnish to the Collateral Agent (i) each year at the time of delivery of the annual report required to be delivered by the Issuer pursuant to Section
      4.02(a) of the Indenture and (ii) whenever any change has occurred that would require any action to be taken to perfect the Liens on the Collateral, a revised Perfection Certificate or an Officers’ Certificate confirming that there has been no change
      in such information since the Effective Date or the date of the most recent certificate delivered pursuant to Section 4.1(e) or this Section 4.12(a).

     

    
      

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    (b)          With respect to any After-Acquired Property that consists of Real Estate, whether owned or leased, concurrently with the execution and delivery of a mortgage or deed of trust as required
      above, any Grantor acquiring such After-Acquired Property shall deliver to the Collateral Agent within ninety (90) days (or such later date as the Collateral Agent may agree in its reasonable discretion) following such acquisition: (i) a policy of
      title insurance insuring the lien of the mortgage on such Real Estate, in an amount equal to the appraised value of such Real Estate, as provided in the appraisal referred to in clause (iii) below, issued by a nationally recognized title insurance
      company insuring the lien of such mortgage as a valid first lien on the property described therein, free of all other liens other than Permitted Liens, containing no general survey exception or mechanics lien exception and issued together with such
      endorsements and affirmative coverage as the Collateral Agent may reasonably request; (ii) except with respect to leased Real Estate, a current ALTA/ACSM survey certified, and reasonably acceptable, to the Collateral Agent and that is sufficient for
      the title insurance company to remove the survey exception for each title insurance policy and to issue such survey-dependent endorsements as are requested by the Collateral Agent; (iii) an appraisal of the Real
        Estate, in form and substance reasonably satisfactory to the Collateral Agent, which appraisal shall establish an appraised value of (A) in the case of fee-owned Real Estate, the Real Estate (including land, building and improvements constructed or
        installed thereon, or to be constructed or installed thereon, and owned by such Grantor) as if, on the date of the appraisal, such Real Estate was fully operational for the purposes intended by such Grantor, but in no event less than the sum of the
        acquisition price of such Real Estate (or the full value of consideration paid or given for such Real Estate for such acquisition at the time acquired) and the estimated cost of the improvements reasonably anticipated to be constructed or installed
        thereon and owned or to be owned by such Grantor, and (B) in the case of leased Real Estate, the Real Estate (including any improvements constructed or installed thereon, or to be constructed or installed thereon, whether said improvements are
        leased or owned by the Grantor that acquired the Real Estate) but not less than the sum of (x) the net present value of all rental payments due under the lease for such Real Estate and (y) the value of any improvements constructed or installed
        thereon, or to be constructed or installed thereon, and leased or owned by such Grantor, in each case from an appraiser reasonably acceptable to the Collateral Agent; (iv) a Phase I environmental assessment prepared by an environmental
      consultant reasonably acceptable to the Collateral Agent, in form, scope and substance reasonably satisfactory to the Collateral Agent, together with a letter from the environmental consultant permitting the Collateral Agent and the Holders of the
      Securities to rely on the environmental assessment as if addressed to and prepared for each of them; (v) an executed legal opinion of local counsel to a Grantor with respect to each Mortgaged Property, in form and substance, and from counsel,
      reasonably satisfactory to the Collateral Agent and in accordance with customary opinion practice (and each such legal opinion shall cover such other matters incident to the transactions contemplated by this Agreement as the Collateral Agent may
      reasonably require in accordance with customary opinion practice); and (vi) for any Real Estate located in the United States of America, a “Life-of-Loan” Federal Emergency Management Agency Standard Flood Hazard Determination and, with respect to
      such Real Estate that is located in a flood zone, flood acknowledgements executed by a Grantor, as the case may be, and evidence of the payment of the applicable flood insurance premium. For purposes of this Section 4.12(b), in any matter that is
      required to be satisfactory, reasonably satisfactory or reasonably acceptable (or the like) to the Collateral Agent, the Collateral Agent may take instructions from the Majority Holders or may consult with and rely on counsel to the Purchasers.
      Counsel to the Purchasers shall not be obligated to consult with or otherwise advise the Collateral Agent on such matters.  Notwithstanding anything in this Agreement to the contrary, Grantors shall not be required to provide the Collateral Agent
      with a Lien upon leased Real Estate with respect to which Grantors have not obtained (after using commercially reasonable efforts to obtain) the consent of the lessor to grant a lien upon such leased Real Estate, provided, however, that no other
      Person is granted a Lien on such leased Real Estate other than Permitted Liens of the type described in clauses (3), (5), (13), (27) and (29) of the definition thereof.

     

    
      

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    Section 4.13        Post-Closing Obligations. The Issuer shall deliver the documents and take the actions specified on Schedule 4.13 as promptly as practicable following the date of this
      Agreement, but in any event no later than the times prescribed therein.

     

    ARTICLE V

    REMEDIES

     

    Section 5.1          Remedies.

     

    (a)          If an Event of Default has occurred and is continuing:

     

    (i)          the Collateral Agent may exercise those rights and remedies provided in this Agreement, the Indenture or any other Indenture Document; provided that this
      Section 5.1(a) shall not limit, or be deemed to limit, any rights available to the Collateral Agent, the Trustee, the Holders of the Securities or any other Secured Party prior to an Event of Default;

     

    (ii)        the Collateral Agent shall have, for the benefit of the Secured Parties, in addition to all other rights of the Collateral Agent and the Trustee, the rights and
      remedies of a secured party under the UCC (whether or not the UCC applies to the affected Collateral) or under any other applicable law when a debtor is in default under a security agreement;

     

    (iii)       the Collateral Agent may, at any time, take possession of the Collateral and keep it on any Grantor’s premises, at no cost to the Collateral Agent, the Trustee or any
      other Secured Party, or remove any part of it to such other place or places as the Collateral Agent may desire, or any Grantor shall, upon the Collateral Agent’s demand, at such Grantor’s cost, assemble the Collateral and make it available to the
      Collateral Agent at a place reasonably convenient to the Collateral Agent;

     

    (iv)       the Collateral Agent may sell and deliver any Collateral at public or private sales, for cash, upon credit or otherwise, at such prices and upon such terms as the
      Collateral Agent deems advisable, in its sole discretion, and may, if the Collateral Agent deems it reasonable, postpone or adjourn any sale of the Collateral by an announcement at the time and place of sale or of such postponed or adjourned sale
      without giving a new notice of sale; provided, that in connection with any such sale of Collateral, the Collateral Agent shall use its reasonable commercial efforts to maintain the confidentiality of any proprietary information of the
      Grantors (consistent with the confidentiality obligations of the Holders of the Securities as required by the Indenture Documents);

     

    (v)         the Collateral Agent may give notice of sole control or any other instruction under any Account Control Agreement and take any action provided therein with respect to
      the applicable Collateral; and

     

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

     

    
      

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    (b)          Without in any way requiring notice to be given in the following manner, each Grantor agrees that any notice by the Collateral Agent of a sale, disposition or other intended action
      hereunder or in connection herewith, whether required by the UCC or otherwise, shall constitute reasonable notice to the Grantors if such notice is mailed by registered or certified mail, return receipt requested, postage prepaid, or is delivered
      personally against receipt, at least five (5) Business Days prior to such action to the Grantors’ address specified in or pursuant to Section 8.1.

     

    (c)          If any Collateral is sold on terms other than payment in full at the time of sale, no credit shall be given against the Obligations until the Collateral Agent receives payment, and if
      the buyer defaults in payment, the Collateral Agent may resell the Collateral without further notice to any Grantor.

     

    (d)         In the event the Collateral Agent seeks to take possession of all or any portion of the Collateral by judicial process, each Grantor irrevocably waives: (i) the posting of any bond,
      surety or security with respect thereto that might otherwise be required; (ii) any demand for possession prior to the commencement of any suit or action to recover the Collateral; and (iii) any requirement that the Collateral Agent retain possession
      and not dispose of any Collateral until after trial or final judgment.

     

    (e)          If an Event of Default occurs and is continuing, each Grantor hereby waives all rights to notice and hearing prior to the exercise by the Collateral Agent of the Collateral Agent’s
      rights to repossess the Collateral without judicial process or to replevy, attach or levy upon the Collateral.

     

    (f)          Each Grantor acknowledges and agrees that the Collateral Agent has no obligation to preserve rights to the Collateral or marshal any Collateral for the benefit of any Person.

     

    (g)         Each Grantor acknowledges and agrees that the compliance by the Collateral Agent, on behalf of the Secured Parties, with any applicable state or federal law requirements may be required
      in connection with a disposition of the Collateral, and such compliance will not be considered to adversely affect the commercial reasonableness of any sale of the Collateral.

     

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

     

    
      

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    (i)          Until the Collateral Agent is able to effect a sale, lease, transfer or other disposition of Collateral, the Collateral Agent shall have the right, but no duty or obligation, to hold or
      use Collateral, or any part thereof, to the extent that it deems appropriate for the purpose of preserving Collateral or the value of the Collateral, or for any other purpose deemed appropriate by the Collateral Agent. The Collateral Agent may, if it
      so elects, but shall have no obligation to, seek the appointment of a receiver or keeper to take possession of Collateral and to enforce any of the Collateral Agent’s remedies (for the benefit of the Collateral Agent and the other Secured Parties),
      with respect to such appointment without prior notice or hearing as to such appointment.

     

    (j)          Each Grantor recognizes that the Collateral Agent may be unable to effect a public sale of any or all of the Collateral consisting of securities to be sold by reason of certain
      prohibitions contained in the laws of any jurisdiction outside the United States or in applicable federal or state securities laws but may be compelled to resort to one or more private sales thereof to a restricted group of purchasers who will be
      obliged to agree, among other things, to acquire such Collateral or other property to be sold for their own account for investment and not with a view to the distribution or resale thereof. Each Grantor acknowledges and agrees that any such private
      sale may result in prices and other terms less favorable to the seller than if such sale were a public sale and, notwithstanding such circumstances, agrees that any such private sale shall, to the extent permitted by law, be deemed to have been made
      in a commercially reasonable manner. Unless required by a Requirement of Law, the Collateral Agent shall not be under any obligation to delay a sale of any of the Collateral or other property to be sold for the period of time necessary to permit the
      issuer of any relevant securities to register such securities under the laws of any jurisdiction outside the United States or under any applicable United States federal or state securities laws, even if such issuer would agree to do so. Each Grantor
      further agrees to do or cause to be done, at its own cost and expense, to the extent that such Grantor may do so under Requirements of Law, all such other acts and things as may be necessary to make such sales or resales of any portion or all of the
      Collateral or other property to be sold valid and binding and in compliance with any and all Requirements of Law at the Grantors’ expense.

     

    (k)          Any remedy or enforcement action to be taken hereunder by the Collateral Agent with respect to the Collateral shall be at the written direction of the Trustee (acting pursuant to the
      direction of the Majority Holders pursuant to the Indenture, including Section 6.05 thereof).

     

    Section 5.2         Grant of Intellectual Property License. Effective only upon the occurrence and during the continuance of an Event of Default, for the purpose of enabling the Collateral
      Agent to exercise the rights and remedies under this Article V at such time as the Collateral Agent shall be lawfully entitled to exercise such rights and remedies, subject to the terms of each Intercreditor Agreement, each Grantor hereby grants to
      the Collateral Agent a non-exclusive license or other right to use, without charge, each Grantor’s labels, patents, copyrights, name, trade secrets, trade names, trademarks and advertising matter, or any similar property, to the extent constituting
      Collateral in completing production of, advertising or selling any Collateral, and, subject to the rights of any licensor or franchisor under such agreements and to the extent not in violation of such agreements, each Grantor’s rights under all
      licenses and all franchise agreements shall inure to the Collateral Agent’s benefit for such purpose.

     

    Section 5.3         Application of Proceeds. Subject to each Intercreditor Agreement, the Collateral Agent shall apply the proceeds of any collection, sale, foreclosure or other realization
      upon any Collateral, as well as any Collateral consisting of cash, resulting from the exercise of remedies following an Event of Default as follows:

     

    
      

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    FIRST, to the payment of all reasonable costs and expenses incurred by the Collateral Agent (in its capacity as such hereunder or under the Indenture or any other Indenture Document) and the Trustee
      in connection with such collection, sale, foreclosure or realization or reasonable costs, expenses, claims or liabilities of the Collateral Agent or the Trustee otherwise relating to or arising in connection with this Agreement, the Indenture or any
      other Indenture Document or any of the Obligations, including all court costs and the reasonable fees and expenses of its agents and legal counsel, the repayment of all advances made by the Collateral Agent or the Trustee hereunder or under the
      Indenture or any other Indenture Document on behalf of any Grantor, any other reasonable costs or expenses incurred by the Collateral Agent or the Trustee in connection with the exercise of any remedy hereunder or under the Indenture or any other
      Indenture Document, and any indemnification of the Collateral Agent and the Trustee required by the terms hereunder, under the Indenture or under any other Indenture Document; and

     

    SECOND, to the Trustee for distribution in accordance with the priorities set forth in Section 6.10 of the Indenture.

     

    Except as otherwise provided herein, the Collateral Agent shall have absolute discretion as to the time of application of any such proceeds, moneys or balances in accordance with this Agreement and
      each Intercreditor Agreement. Upon any sale of Collateral by the Collateral Agent (including pursuant to a power of sale granted by statute or under a judicial proceeding), the receipt of the Collateral Agent or of the officer making the sale shall
      be a sufficient discharge to the purchaser or purchasers of the Collateral so sold, and such purchaser or purchasers shall not be obligated to see to the application of any part of the purchase money paid over to the Collateral Agent or such officer
      or be answerable in any way for the misapplication thereof.

     

    ARTICLE VI

    CONCERNING THE COLLATERAL AGENT

     

    Section 6.1          Reliance by Collateral Agent; Indemnity Against Liabilities.

     

    (a)          Whenever in the performance of its duties under this Agreement or any other Indenture Document, the Collateral Agent shall deem it necessary or desirable that a matter be proved or
      established with respect to the Grantors or any other Person in connection with the taking, suffering or omitting of any action hereunder by the Collateral Agent, such matter may be conclusively deemed to be proved or established by a certificate
      executed by an Officer of such Person, including an Officers’ Certificate or an Opinion of Counsel, and the Collateral Agent shall have no liability with respect to any action taken, suffered or omitted in reliance thereon. The Collateral Agent may
      at any time solicit written confirmatory instructions, including a direction of the Trustee or any Grantor or an order of a court of competent jurisdiction as to any action that it may be requested or required to take or that it may propose to take
      in the performance of any of its obligations under this Agreement or any other Indenture Document and shall be fully justified in failing or refusing to act hereunder or under any other Indenture Document until it shall have received such requisite
      instruction.

     

    
      

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      (b)         The Collateral Agent shall be fully protected in relying upon any note, writing, affidavit, electronic communication, fax, resolution, statement, certificate, instrument, opinion, report, notice (including
        any notice of an Event of Default or of the cure or waiver thereof), request, consent, order or other paper or document or oral conversation (including telephone conversations) that it in good faith believes to be genuine and correct and to have
        been signed, presented or made by the proper party. The Collateral Agent may conclusively rely, as to the truth of the statements and the correctness of the opinions expressed therein, upon any notice, certificate or opinion furnished to the
        Collateral Agent in connection with this Agreement or any other Indenture Document and upon advice and statements of legal counsel (including counsel to any Grantor, independent accountants and other agents consulted by the Collateral Agent).

    

     

    

    Section 6.2         Exercise of Remedies. The remedies of the Collateral Agent hereunder and under the other Security Documents shall include the disposition of the Collateral by foreclosure
      or other sale and the exercising of all remedies of a secured lender under the UCC, bankruptcy laws or similar laws of any applicable jurisdiction.

     

    Section 6.3         Authorized Investments. Any and all funds held by the Collateral Agent in its capacity as Collateral Agent, whether pursuant to any provision hereof or of any other
      Security Document or otherwise, shall, to the extent reasonably practicable following receipt by the Collateral Agent from the Issuer of specific written instructions in form and substance reasonably satisfactory to the Collateral Agent delivered to
      the Collateral Agent at least three (3) Business Days prior to the proposed investment, be invested by the Collateral Agent within a reasonable time in the Cash Equivalents identified in such written instructions. Any interest earned on such funds
      shall be disbursed (a) during an Event of Default, in accordance with Section 5.3, and (b) at all other times, as the Issuer shall direct. To the extent that the interest rate payable with respect to any such account varies over time, the Collateral
      Agent may use an average interest rate in making the interest allocations among the respective Secured Parties. In the absence of gross negligence or willful misconduct as determined by a final non-appealable order of a court of competent
      jurisdiction, the Collateral Agent shall not be responsible for any investment losses in respect of any funds invested in accordance with this Section 6.3. The Collateral Agent shall have no duty or obligation regarding the reinvestment of any such
      funds in the absence of updated written instructions from the Issuer in form and substance reasonably satisfactory to the Collateral Agent.  The Collateral Agent or its Affiliates are permitted to receive additional compensation that could be deemed
      to be in the Collateral Agent’s economic self-interest for (i) serving as an investment advisor, administrator, shareholder servicing agent, custodian or subcustodian with respect to certain Cash Equivalents, (ii) using Affiliates to effect
      transactions in certain Cash Equivalents and (iii) effecting transactions in certain Cash Equivalents. The Collateral Agent does not guarantee the performance of any Eligible Investments. The Collateral Agent shall have no liability in respect of
      losses incurred as a result of the liquidation of any investment prior to its stated maturity or the failure of the Issuer to provide timely written investment direction. The Issuer acknowledges that to the extent regulations of the Comptroller of
      the Currency or other applicable regulatory entity grant the Issuer the right or option to receive individual confirmations of security transactions at no additional cost, as they occur, the Issuer specifically waives the option to receive such
      confirmation to the extent permitted by law. The Collateral Agent shall furnish the Issuer monthly cash transaction statements that include details of all investment transactions made by the Collateral Agent hereunder.

     

    Section 6.4          Bankruptcy Proceedings. The following provisions shall apply during any Bankruptcy Proceeding of any Grantor:

     

    
      

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    (a)         The Collateral Agent shall represent all Secured Parties in connection with all matters directly relating to the Collateral, including any use, sale or lease of Collateral, use of cash
      collateral, request for relief from the automatic stay and request for adequate protection.

     

    (b)         Each Secured Party shall be free to act independently on any issue not affecting the Collateral. Each Secured Party shall give prior notice to the Collateral Agent of any such action that
      could materially affect the rights or interests of the Collateral Agent or the other Secured Parties to the extent that such notice is reasonably practicable. If such prior notice is not given, such Secured Party shall give prompt notice following
      any action taken hereunder.

     

    (c)          Any proceeds of the Collateral received by any Secured Party as a result of, or during, any Bankruptcy Proceeding will be delivered promptly to the Collateral Agent for distribution in
      accordance with Section 5.3.

     

    ARTICLE VII

     COLLATERAL AGENT AND TRUSTEE RIGHTS, DUTIES AND LIABILITIES; ATTORNEY IN FACT; PROXY

     

    Section 7.1          The Collateral Agent’s and the Trustee’s Rights, Duties and Liabilities.

     

    (a)          The Grantors assume all responsibility and liability arising from or relating to the use, maintenance, storage, sale, collection, foreclosure, realization on, conveyance or other
      disposition of or involving the Collateral. The Obligations shall not be affected by any failure of any Grantor, the Collateral Agent or the Trustee to take any steps to perfect the Collateral Agent’s Liens or to collect or realize upon the
      Collateral, nor shall loss of or damage to the Collateral release any Grantor from any of the Obligations. Following the occurrence and during the continuation of an Event of Default, the Collateral Agent may (but shall not be required to), and at
      the direction of the Trustee (acting in accordance with the instructions of the Majority Holders pursuant to the Indenture including Section 6.05 thereof) shall, subject to each Intercreditor Agreement and the terms of the Indenture, without notice
      to or consent from any Grantor sue upon or otherwise collect, extend the time for payment of, modify or amend the terms of, compromise or settle for cash, credit or otherwise upon any terms, grant other indulgences, extensions, renewals, compositions
      or releases, and take or omit to take any other action with respect to the Collateral, any security therefor, any agreement relating thereto, any insurance applicable thereto or any Person liable directly or indirectly in connection with any of the
      foregoing, without discharging or otherwise affecting the liability of any Grantor for the Obligations or under the Indenture, any other Indenture Document or any other agreement now or hereafter existing between any Secured Party and any Grantor.

     

    (b)          It is expressly agreed by the Grantors that, anything herein to the contrary notwithstanding, each of the Grantors shall remain liable under each of its contracts and each of its
      licenses to observe and perform all the conditions and obligations to be observed and performed by it thereunder. Neither the Collateral Agent nor the Trustee shall have any obligation or liability under any contract or license by reason of or
      arising out of this Agreement or the granting herein of a Lien thereon or the receipt by the Collateral Agent or the Trustee of any payment relating to any contract or license pursuant hereto that is applied as required herein. Neither the Collateral
      Agent nor the Trustee shall be required or obligated in any manner to perform or fulfill any of the obligations of any Grantor under or pursuant to any contract or license, or to make any payment, or to make any inquiry as to the nature or the
      sufficiency of any payment received by it or the sufficiency of any performance by any party under any contract or license, or to present or file any claims, or to take any action to collect or enforce any performance or the payment of any amounts
      that may have been assigned to it or to which it may be entitled at any time or times.

     

    
      

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    Section 7.2          Right to Cure. The Collateral Agent may (but shall not be required to) in its reasonable discretion, subject to each Intercreditor Agreement, pay any reasonable amount or
      do any reasonable act required of any Grantor hereunder or under any other Indenture Document in order to preserve, protect, maintain or enforce the Obligations, the Collateral or the Collateral Agent’s Liens therein, and which any Grantor fails to
      timely pay or do, including payment of any judgment against any Grantor, any insurance premium, any warehouse charge, any finishing or processing charge, any landlord’s or bailee’s claim and any other Lien upon or with respect to the Collateral. All
      payments that the Collateral Agent makes under this Section 7.2 and all reasonable and documented out‐of‐pocket costs and expenses that the Collateral Agent pays or incurs in connection with any action taken by it hereunder shall be promptly
      reimbursed by such Grantor. Any payment made or other action taken by the Collateral Agent under this Section 7.2 shall be without prejudice to any right to assert an Event of Default hereunder and to proceed thereafter as herein provided.

     

    Section 7.3           Confidentiality.

     

    (a)          The Collateral Agent, accompanied by the Trustee if the Trustee so elects, may upon reasonable advance notice and at reasonable times during regular business hours, and at any time when
      an Event of Default exists, have access to, examine, audit, make extracts from or copies of, and inspect any or all of the Grantors’ records, files and books of account and the Collateral, and discuss the Grantors’ affairs with the Grantors’ officers
      and senior management. The Grantors will deliver to the Collateral Agent any instrument necessary for the Collateral Agent to obtain records from any service bureau maintaining records for the Grantors. The Collateral Agent may, and at the direction
      of the Trustee shall, at any time when an Event of Default exists, and at the Grantors’ expense, make copies of all of the Grantors’ books and records, or require the Grantors to deliver such copies to the Collateral Agent. Upon reasonable request to
      senior management of the Issuer, the Collateral Agent may, without expense to the Collateral Agent, use such of the Grantors’ respective personnel, supplies and premises as may be reasonably necessary for maintaining or enforcing the Collateral
      Agent’s Liens. The Collateral Agent shall have the right (but not the obligation), upon the occurrence and during the continuance of an Event of Default, in the Collateral Agent’s name or in the name of a nominee of the Collateral Agent, to verify
      the validity, amount or any other matter relating to the Accounts, Inventory or other Collateral (but if any such Accounts, Inventory or other Collateral constitute Intercreditor Collateral, only so long as no ABL Liens are outstanding on such
      Collateral), by mail, telephone or otherwise; provided, however, in the absence of an Event of Default, the Collateral Agent agrees that it will not attempt to verify more than five (5) Accounts each month.

     

    
      

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    (b)          The Collateral Agent, in its individual capacity and as Collateral Agent, and the Trustee, in its individual capacity and as Trustee, agree and acknowledge that all information provided
      to the Collateral Agent or the Trustee by any Grantor may be considered to be proprietary and confidential information (“Confidential Information”). Each of the Trustee and the Collateral Agent agrees to take all reasonable precautions
      necessary to keep such information confidential, which precautions shall be no less stringent than those that the Collateral Agent and the Trustee, as applicable, employs to protect its own confidential information. Each of the Collateral Agent and
      the Trustee shall not disclose to any third party other than as set forth herein, and shall not use for any purpose other than the exercise of the Collateral Agent’s and the Trustee’s rights and the performance of its respective obligations under
      this Agreement, any such information without the prior written consent of such Grantor, as applicable. Each of the Collateral Agent and the Trustee shall limit access to such information received hereunder to (i) its directors, officers, managers and
      employees and (ii) its legal advisors, to each of whom disclosure of such information is necessary for the purposes described above; provided, however, that in each case such party has expressly agreed to maintain such information in
      confidence under terms and conditions substantially identical to the terms of this Section 7.3(b).

     

    (c)          Each of the Collateral Agent and the Trustee agrees that no Grantor has any responsibility whatsoever for any reliance on Confidential Information by the Collateral Agent or the Trustee
      or by any Person to whom such information is disclosed in connection with this Agreement, whether related to the purposes described above or otherwise. Without limiting the generality of the foregoing, each of the Collateral Agent and the Trustee
      agrees that no Grantor makes any representation or warranty whatsoever to it with respect to Confidential Information or its suitability for such purposes. Each of the Collateral Agent and the Trustee further agrees that it shall not acquire any
      rights against any Grantor or any employee, officer, director, manager, representative or agent of any Grantor (collectively, “Confidential Parties”) as a result of the disclosure of Confidential Information to the Trustee or the Collateral
      Agent and that no Confidential Party has any duty, responsibility, liability or obligation to any Person as a result of any such disclosure.

     

    (d)          In the event the Collateral Agent or the Trustee is required to disclose any Confidential Information received hereunder in order to comply with any laws, regulations or court orders, it
      may disclose Confidential Information only to the extent necessary for such compliance; provided, however, that it shall give the relevant Grantor reasonable advance written notice of any such court proceeding in which such disclosure
      may be required pursuant to a court order so as to afford such Grantor full and fair opportunity to oppose the issuance of such order and to appeal therefrom and shall cooperate reasonably with such Grantor, as applicable, in opposing such order and
      in securing confidential treatment of any Confidential Information to be disclosed and/or obtaining a protective order narrowing the scope of such disclosure.

     

    
      

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    Section 7.4         Power of Attorney. Each Grantor, as to itself, hereby appoints the Collateral Agent and the Collateral Agent’s designee as such Grantor’s attorney, with power upon the
      occurrence and during the continuance of an Event of Default: (a) to endorse such Grantor’s name on any checks, notes, acceptances, money orders or other forms of payment or security that come into the Collateral Agent’s or any other Secured Parties’
      possession; (b) to sign such Grantor’s name on any invoice, bill of lading, warehouse receipt or other document of title relating to any Collateral, on drafts against customers, on assignments of Accounts, on notices of assignment, financing
      statements and other public records and to file any such financing statements by electronic means with or without a signature as authorized or required by applicable law or filing procedure; (c) to notify the post office authorities to change the
      address for delivery of such Grantor’s mail to an address designated by the Collateral Agent and to receive, open and dispose of all mail addressed to such Grantor; (d) to send requests for verification of Accounts to customers or Account Debtors
      (but if any such Accounts constitute Intercreditor Collateral, only so long as no ABL Liens are outstanding on such Collateral); (e) to clear Inventory through customs in such Grantor’s name, the Collateral Agent’s name or the name of the Collateral
      Agent’s designee, and to sign and deliver to customs officials powers of attorney in such Grantor’s name for such purpose; and (f) to do all things the Collateral Agent reasonably determines are necessary to carry out the security interest provisions
      of the Indenture and the provisions of this Agreement. Each Grantor ratifies and approves all acts of such attorney. Notwithstanding anything in this Agreement or any other Indenture Document to the contrary, none of the Trustee, the Collateral Agent
      or their attorneys, employees or Affiliates will be liable for any acts or omissions or for any error of judgment or mistake of fact or law other than any such liability arising from any such Person’s gross negligence or willful misconduct, as
      finally determined by a court of competent jurisdiction.

     

    Section 7.5     Proxy. CONSISTENT WITH AND SUBJECT TO THE LIMITATIONS IN SECTION 4.5(b), EACH GRANTOR HEREBY IRREVOCABLY CONSTITUTES AND APPOINTS THE COLLATERAL AGENT AS ITS PROXY AND
      ATTORNEY‐IN‐FACT (AS SET FORTH IN SECTION 7.4) WITH RESPECT TO THE INVESTMENT PROPERTY THAT IS COLLATERAL, INCLUDING THE RIGHT TO VOTE SUCH INVESTMENT PROPERTY, WITH FULL POWER OF SUBSTITUTION TO DO SO. IN ADDITION TO THE RIGHT TO VOTE ANY SUCH
      INVESTMENT PROPERTY, THE APPOINTMENT OF THE COLLATERAL AGENT AS PROXY AND ATTORNEY-IN-FACT SHALL INCLUDE THE RIGHT TO EXERCISE ALL OTHER RIGHTS, POWERS, PRIVILEGES AND REMEDIES TO WHICH A HOLDER OF SUCH INVESTMENT PROPERTY WOULD BE ENTITLED
      (INCLUDING GIVING OR WITHHOLDING WRITTEN CONSENTS OF SHAREHOLDERS, CALLING SPECIAL MEETINGS OF SHAREHOLDERS AND VOTING AT SUCH MEETINGS). SUBJECT TO SECTION 4.5(b), SUCH PROXY SHALL BE EFFECTIVE, AUTOMATICALLY AND WITHOUT THE NECESSITY OF ANY ACTION
      (INCLUDING ANY TRANSFER OF ANY SUCH INVESTMENT PROPERTY ON THE RECORD BOOKS OF THE ISSUER THEREOF) BY ANY PERSON (INCLUDING THE ISSUER OF SUCH INVESTMENT PROPERTY OR ANY OFFICER OR AGENT THEREOF), UPON THE OCCURRENCE AND DURING THE CONTINUANCE OF AN
      EVENT OF DEFAULT.

     

    Section 7.6         Nature of Appointment; Limitation of Duty. THE APPOINTMENT OF THE COLLATERAL AGENT AS PROXY AND ATTORNEY-IN-FACT IN THIS ARTICLE VII IS COUPLED WITH AN INTEREST AND SHALL
      BE IRREVOCABLE UNTIL THE DATE ON WHICH THIS AGREEMENT IS TERMINATED IN ACCORDANCE WITH SECTION 8.13. NOTWITHSTANDING ANYTHING CONTAINED IN THIS AGREEMENT OR IN ANY OTHER INDENTURE DOCUMENT, NONE OF THE COLLATERAL AGENT, ANY OTHER SECURED PARTY OR ANY
      OF THEIR RESPECTIVE AFFILIATES, OFFICERS, DIRECTORS, EMPLOYEES, AGENTS OR REPRESENTATIVES SHALL HAVE ANY DUTY TO EXERCISE ANY RIGHT OR POWER GRANTED HEREUNDER OR OTHERWISE OR TO PRESERVE THE SAME AND SHALL NOT BE LIABLE FOR ANY FAILURE TO DO SO OR
      FOR ANY DELAY IN DOING SO, EXCEPT TO THE EXTENT SUCH DAMAGES ARE ATTRIBUTABLE TO THEIR OWN GROSS NEGLIGENCE OR WILLFUL MISCONDUCT AS FINALLY DETERMINED BY A COURT OF COMPETENT JURISDICTION; PROVIDED THAT IN NO EVENT SHALL THEY BE LIABLE FOR
      ANY PUNITIVE, EXEMPLARY, INDIRECT OR CONSEQUENTIAL DAMAGES.

     

    
      

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    Section 7.7          Additional Matters Relating to the Collateral Agent.

     

    (a)          U.S. Bank National Association shall initially act as Collateral Agent for the Secured Parties and shall be authorized to appoint co-collateral agents as necessary in its sole
      discretion. U.S. Bank National Association, as Collateral Agent, is authorized and directed to (i) enter into the Indenture Documents, (ii) bind the Secured Parties on the terms as set forth in the Indenture Documents and (iii) perform and observe
      its obligations under the Indenture Documents.

     

    (b)          The rights, duties, liabilities and immunities of the Collateral Agent and its appointment, resignation and replacement hereunder and under the Indenture and the other Indenture
      Documents shall be governed by this Agreement, Article 11 of the Indenture and the relevant provisions contained in the other Indenture Documents. Without limiting the foregoing, the rights, privileges, protections and benefits given to the
      Collateral Agent under the Indenture are extended to, and shall be enforceable by, the Collateral Agent in connection with the execution, delivery and administration of this Agreement and the other Indenture Documents and any action taken or omitted
      to be taken by the Collateral Agent in connection with its appointment and performance under this Agreement and the other Indenture Documents to which it is a party.

     

    (c)         The Collateral Agent undertakes to perform or to observe only such of its agreements and obligations as are specifically set forth in this Agreement, the Indenture and the other Indenture
      Documents, and no implied agreements, covenants or obligations with respect to any Grantor or any Affiliate of any Grantor, any Secured Party or any other party shall be read into this Agreement against the Collateral Agent. The Collateral Agent in
      its capacity as such is not a fiduciary of and shall not owe or be deemed to owe any fiduciary duty to any Grantor or any Related Person of any Grantor.

     

    (d)          None of the Collateral Agent, the Trustee or any of their respective officers, directors, employees, agents, attorneys-in-fact or Related Persons shall be responsible or liable in any
      manner (i) to any Grantor or any of their respective Related Persons for any action taken or omitted to be taken by it under or in connection with this Agreement in compliance herewith, (ii) to any Secured Party or any other Person for any recitals,
      statements, representations, warranties, covenants or agreements contained in this Agreement or in any other Indenture Document or in any certificate, report, statement or other document referred to or provided for in, or received by the Collateral
      Agent under or in connection with, this Agreement or any other Indenture Document, (iii) to any Secured Party or any other Person for the validity, effectiveness, adequacy, genuineness or enforceability of this Agreement or any other Indenture
      Document, or any Lien purported to be created hereunder or under any other Indenture Document, (iv) to any Secured Party or any other Person for the validity or sufficiency of the Collateral or the validity of the title of any Grantor to the
      Collateral, for insuring the Collateral or for the payment of taxes, charges, assessments or Liens upon the Collateral or otherwise as to the maintenance of the Collateral or (v) to any Secured Party or other Person for any failure of any Grantor to
      perform its obligations hereunder or to perform any of the Obligations.

     

    
      

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    (e)          Notwithstanding anything to the contrary contained in this Agreement, (i) in no event shall the Trustee or the Collateral Agent be responsible for or have any obligation, duty or
      liability with respect to the creation, perfection, priority, maintenance, protection or enforcement of any lien on, security interest in or pledge or other encumbrance involving or relating to the Collateral or any other assets, properties or rights
      of the Grantors, provided, however that the Collateral Agent acknowledges that with respect to the enforcement of any Liens, its actions will be subject to each Intercreditor Agreement, (ii) neither the Trustee nor the Collateral
      Agent shall be responsible for filing any financing or continuation statements or recording any documents or instruments in any public office at any time or times or otherwise perfecting or maintaining the perfection of any Liens in the Collateral
      and (iii) neither the Trustee nor the Collateral Agent shall be under any obligation to any Person to ascertain or to inquire as to the observance or performance of any of the agreements contained in, or conditions of, this Agreement or to inspect
      the properties or records of any Grantor. The permissive rights of the Collateral Agent to do things enumerated in this Agreement shall not be construed as a duty or obligation. The Collateral Agent may rely conclusively on any Opinions of Counsel
      rendered to the Collateral Agent under the Indenture in determining any necessary or desirable actions under this Agreement. Notwithstanding anything to the contrary herein, the Collateral Agent’s sole duty with respect to the custody, safekeeping
      and physical preservation of the Collateral in its possession, under the UCC or otherwise, shall be to deal with it in the same manner as the Collateral Agent deals with similar property for its own account, and the Collateral Agent shall be deemed
      to have exercised reasonable care in the custody and preservation of the Collateral in its possession if the Collateral is accorded treatment substantially equal to that which comparable secured parties accord comparable collateral. Neither the
      Collateral Agent nor the Trustee shall be liable for failure to demand, collect or realize upon any of the Collateral or for any delay in doing so or shall be under any obligation to sell or otherwise dispose of any Collateral upon the request of any
      Grantor or any other Person or to take any other action whatsoever with regard to the Collateral or any part thereof.

     

    (f)          Notwithstanding anything to the contrary contained herein, none of the Collateral Agent, the Trustee or any of their respective officers, directors, employees, agents, attorneys-in-fact
      or Related Persons shall be exonerated from any liability arising from its or their own gross negligence or willful misconduct, as finally determined by a court of competent jurisdiction.

     

    (g)         The Grantors shall, jointly and severally, upon demand pay to the Collateral Agent and any other Secured Party the amount of any and all reasonable and documented out-of-pocket fees,
      costs and expenses (including the reasonable and documented fees and expenses of one external counsel for the Collateral Agent and one external counsel for the other Secured Parties as a whole (except to the extent the interests of the Secured
      Parties with respect to items (i) through (v) below diverge, in which case, one additional external counsel for each set of Secured Parties that have such divergent interests but no more than three (3) separate external counsel for the Secured
      Parties in the aggregate), any special consultants reasonably engaged (and, unless an Event of Default exists, engaged only with the consent of the Issuer), and any necessary local counsel who might reasonably be retained by the Collateral Agent or
      the Secured Parties, as the case may be (on corresponding terms as with external counsel above), in connection with the transactions contemplated hereby) that the Collateral Agent or any other Secured Party, as the case may be, may incur in
      connection with (i) any Event of Default, including the sale, lease, license or other disposition of, collection from, or other realization upon, any of the Collateral pursuant to the exercise or enforcement of any of their respective rights
      hereunder, (ii) the exercise of their respective rights under this Agreement or under any other Indenture Document, including the custody, preservation, use or operation of, or the sale of, any of the Collateral, (iii) performance by the Collateral
      Agent of any obligations of any Grantor that any Grantor has failed or refused to perform with respect to the Collateral, (iv) bankruptcy, insolvency, receivership, foreclosure, winding up or liquidation proceedings and defending or asserting rights
      and claims of the Collateral Agent in respect thereof, by litigation or otherwise, including expenses of insurance, or (v) the execution and delivery and administration of this Agreement, each Intercreditor Agreement and the other Indenture Documents
      and any agreement supplemental hereto or thereto, and any instruments of amendment, waiver, further assurance, release or termination, including with respect to the termination and/or release of any or all of the Liens in the Collateral provided for
      in this Agreement and the other Security Documents. Any amounts payable by any Grantor pursuant to this Section 7.7 shall be payable on demand.

     

    
      

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    (h)          The Grantors, jointly and severally, shall pay on demand all filing, registration and recording fees or re-filing, re-registration and re-recording fees, and all federal, state, county
      and municipal stamp taxes and other similar taxes, duties, imposts, assessments and charges arising out of or in connection with the execution and delivery of this Agreement, the Indenture, each Intercreditor Agreement, the other Indenture Documents
      and any agreement supplemental hereto or thereto and any instruments of further assurance or termination.

     

    (i)          Except for action expressly provided for herein and in the other Indenture Documents, the Collateral Agent shall be under no obligation to exercise any of the rights or powers vested in
      it by this Agreement or any other Indenture Document at the request, order or direction of any Secured Party pursuant to the provisions of the Indenture or any other Indenture Document, unless such Secured Party shall have offered to the Collateral
      Agent security or indemnity satisfactory to the Collateral Agent against the costs, expenses and liabilities that may be incurred by it in compliance with such request, order or direction.

     

    (j)          In no event shall the Collateral Agent or any other Secured Party be liable or responsible for any funds or investments of funds held by any Grantor or any Affiliates thereof.

     

    Section 7.8         Appointment of Co-Collateral Agent. In the event that the Collateral Agent appoints a Co-Collateral Agent or Co-Collateral Agents in accordance with Section 7.7(a), such
      Co-Collateral Agent(s) shall enter into an appointment agreement in a form satisfactory to the Collateral Agent and such Co-Collateral Agent, and, upon acceptance of the appointment, such Co-Collateral Agent shall be entitled to all of the rights,
      privileges, limitations on liability and immunities afforded to and subject to all the duties of the Collateral Agent hereunder and shall be deemed to be a party to this Agreement for all purposes provided in this Section 7.8, in each case, subject
      to the specific rights and duties vested in the Co-Collateral Agent pursuant to such appointment agreement and related Security Documents. It is accepted and acknowledged by the parties hereto that any Co-Collateral Agent appointed in accordance with
      Section 7.7(a) and this Section 7.8 shall be entitled to the payment of its fees and expenses as agreed to by the Issuer and, without limitation of any of the other provisions of this Agreement, shall be deemed to be an indemnified party under
      Section 8.17 with respect to any liability arising under this Agreement or the other Indenture Documents without need for further act by the Grantors.

     

    
      

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    Section 7.9          Instructions under Account Control Agreement. The Collateral Agent agrees not to issue a notice of exclusive control or any other instruction under such Account Control
      Agreement unless an Event of Default has occurred and is continuing.

     

    ARTICLE VIII

    GENERAL PROVISIONS

     

    Section 8.1          Notices. All notices and other communications provided for herein shall be in writing and shall be delivered by hand or overnight courier service, mailed by certified or
      registered mail or sent by fax, as follows:

     

    (a)          if to the Collateral Agent, to it at:

     

    U.S. Bank National Association

    Corporate Trust Services

    One Federal Street, 3rd Floor

    Boston, Massachusetts 02110

    Attention: Alison Nadeau (Aquestive Indenture)

    Facsimile: 617-603-6683

     

    (b)          if to the Trustee, to it at:

     

    U.S. Bank National Association

    Corporate Trust Services

    One Federal Street, 3rd Floor

    Boston, Massachusetts 02110

    Attention: Alison Nadeau (Aquestive Indenture)

    Facsimile: 617-603-6683

     

    (c)          if to any Grantor, to it at:

     

    Aquestive Therapeutics, Inc.

    30 Technology Drive

    Warren, New Jersey 07059

    Attention: Chief Financial Officer & General Counsel

    Facsimile: 908-561-1209

     

    With copies (which shall not constitute notice) to:

     

    Aquestive Therapeutics, Inc.

    30 Technology Drive

    Warren, New Jersey 07059

    Attention: Legal Department

    Facsimile: (908) 561-1209

     

    Dechert LLP

    1095 Avenue of the Americas

    New York, New York 10036

    Attention: David Rosenthal & Scott Zimmerman

    Facsimile: (212) 698-3599

     

    
      

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    Any party hereto may change its address or facsimile number for notices and other communications hereunder by notice to the other parties hereto (and for this purpose a notice to the Issuer shall be
      deemed to be a notice to each Grantor). All notices and other communications given to any party hereto in accordance with the provisions of this Agreement shall be deemed to have been given on the date of receipt if delivered by hand or overnight
      courier service or sent by facsimile or on the date five (5) Business Days after dispatch by certified or registered mail if mailed, in each case delivered, sent or mailed (properly addressed) to such party as provided in this Section 8.1 or in
      accordance with the latest unrevoked direction from such party given in accordance with this Section 8.1. Notwithstanding the foregoing, notices to the Collateral Agent shall only be effective upon actual receipt.

     

    Section 8.2          Waiver of Notices. Unless otherwise expressly provided herein, each Grantor hereby waives presentment, demand, protest or notice (to the maximum extent permitted by applicable law) of any kind in connection with this Agreement or any
        Collateral.

     

    Section 8.3          Limitation on Collateral Agent’s and Other Secured Parties’ Duty with Respect to the Collateral. The Collateral Agent shall have no obligation to clean up or otherwise
      prepare the Collateral for sale. The Collateral Agent and each Secured Party shall use reasonable care with respect to the Collateral in its possession or under its control. Neither the Collateral Agent nor any other Secured Party shall have any
      other duty as to any Collateral in its possession or control or in the possession or control of any agent or nominee of the Collateral Agent or such other Secured Party or any income thereon (other than to account for proceeds therefrom) or as to the
      preservation of rights against prior parties or any other rights pertaining thereto. To the extent that applicable law imposes duties on the Collateral Agent to exercise remedies in a commercially reasonable manner, and to the extent permitted by
      applicable law, each Grantor acknowledges and agrees that it would be commercially reasonable for the Collateral Agent (a) to fail to incur expenses deemed significant by the Collateral Agent to prepare Collateral for disposition or otherwise to
      transform raw material or work in process into finished goods or other finished products for disposition, (b) to fail to obtain third party consents for access to Collateral to be disposed of, or to obtain or, if not required by other law, to fail to
      obtain governmental or third party consents for the collection or disposition of Collateral to be collected or disposed of, (c) to fail to exercise collection remedies against Account Debtors or other Persons obligated on Collateral or to remove
      Liens on or any adverse claims against Collateral, (d) to exercise collection remedies against Account Debtors and other Persons obligated on Collateral directly or through the use of collection agencies and other collection specialists, (e) to
      advertise dispositions of Collateral through publications or media of general circulation, whether or not the Collateral is of a specialized nature, (f) to contact other Persons, whether or not in the same business as such Grantor, for expressions of
      interest in acquiring all or any portion of such Collateral, (g) to hire one or more professional auctioneers to assist in the disposition of Collateral, whether or not the Collateral is of a specialized nature, (h) to dispose of Collateral by
      utilizing internet sites that provide for the auction of assets of the types included in the Collateral or that have the reasonable capacity of doing so, or that match buyers and sellers of assets, (i) to dispose of assets in wholesale rather than
      retail markets, (j) to disclaim disposition warranties, such as title, possession or quiet enjoyment, (k) to purchase insurance or credit enhancements to insure the Collateral Agent against risks of loss, collection or disposition of Collateral or to
      provide to the Collateral Agent a guaranteed return from the collection or disposition of Collateral or (l) to the extent deemed appropriate by the Collateral Agent, to obtain the services of other brokers, investment bankers, consultants and other
      professionals to assist the Collateral Agent in the collection or disposition of any of the Collateral. Each Grantor acknowledges that the purpose of this Section 8.3 is to provide non-exhaustive indications of what actions or omissions by the
      Collateral Agent would be commercially reasonable in the Collateral Agent’s exercise of remedies against the Collateral and that other actions or omissions by the Collateral Agent shall not be deemed commercially unreasonable solely on account of not
      being indicated in this Section 8.3. Without limitation upon the foregoing, nothing contained in this Section 8.3 shall be construed to grant any rights to any Grantor or to impose any duties on the Collateral Agent that would not have been granted
      or imposed by this Agreement or by applicable law in the absence of this Section 8.3.

     

    
      

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    Section 8.4          Compromises and Collection of Collateral. Each Grantor and the Collateral Agent recognize that setoffs, counterclaims, defenses and other claims may be asserted by
      obligors with respect to certain of the Accounts, that certain of the Accounts may be or become uncollectible in whole or in part and that the expense and probability of success in litigating a disputed Account may exceed the amount that reasonably
      may be expected to be recovered with respect to an Account. In view of the foregoing, each Grantor agrees that the Collateral Agent may at any time and from time to time if an Event of Default has occurred and is continuing (but if such Account
      constitutes Intercreditor Collateral, only so long as no ABL Liens are outstanding in on such Collateral) compromise with the obligor on any Account, accept in full payment of any Account such amount as the Collateral Agent in its sole discretion
      shall determine or abandon any Account, and any such action by the Collateral Agent shall be commercially reasonable so long as the Collateral Agent acts in good faith based on information known to it at the time it takes any such action.

     

    Section 8.5          Specific Performance of Certain Covenants. Each Grantor acknowledges and agrees that a breach of any of the covenants contained in Sections 4.2(a), 4.5, 4.6, 4.7, 4.8,
      4.10, 4.12, 5.1(j), 7.3(a), 7.6, 8.11, 8.17 and 8.18 will cause irreparable injury to the Collateral Agent and the other Secured Parties and that the Collateral Agent and the other Secured Parties have no adequate remedy at law in respect of such
      breaches, and each Grantor therefore agrees, without limiting the right of the Collateral Agent or the other Secured Parties to seek and obtain specific performance of other obligations of any Grantor contained in this Agreement, that the covenants
      of such Grantor contained in the Sections referred to in this Section 8.5 shall be specifically enforceable against such Grantor.

     

    Section 8.6          Cumulative Remedies; No Prior Recourse to Collateral. The enumeration herein of the Collateral Agent’s and the Trustee’s rights and remedies is not intended to be
      exclusive, and such rights and remedies are in addition to and not by way of limitation of any other rights or remedies that the Collateral Agent and the Trustee may have under the UCC, other applicable law or the Indenture Documents. The Collateral
      Agent and the Trustee shall have the right, in their sole discretion, to determine which rights and remedies are to be exercised and in which order. The exercise of one right or remedy shall not preclude the exercise of any others, all of which shall
      be cumulative. The Collateral Agent and the Trustee may, without limitation, proceed directly against any Person liable therefor to collect the Obligations without any prior recourse to the Collateral. No failure to exercise and no delay in
      exercising, on the part of the Collateral Agent or the Trustee, any right, remedy, power or privilege hereunder shall operate as a waiver thereof, nor shall any single or partial exercise of any right, remedy, power or privilege hereunder preclude
      any other or further exercise thereof or the exercise of any other right, remedy, power or privilege.

     

    
      

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    Section 8.7        Limitation by Law; Severability of Provisions. All rights, remedies and powers provided in this Agreement may be exercised only to the extent that the exercise thereof does
      not violate any applicable provision of law, and all the provisions of this Agreement are intended to be subject to all applicable mandatory provisions of law that may be controlling and to be limited to the extent necessary so that they shall not
      render this Agreement invalid, unenforceable or not entitled to be recorded or registered, in whole or in part. The illegality or unenforceability of any provision of this Agreement or any instrument or agreement required hereunder shall not in any
      way affect or impair the legality or enforceability of the remaining provisions of this Agreement or any instrument or agreement required hereunder.

     

    Section 8.8          Reinstatement. This Agreement shall remain in full force and effect and continue to be effective should any petition be filed by or against any Grantor for liquidation or
      reorganization, should any Grantor become insolvent or make an assignment for the benefit of any creditor or creditors or should a receiver or trustee be appointed for all or any significant part of such Grantor’s assets. This Agreement shall
      continue to be effective or be reinstated, as the case may be, if at any time when there is or has been more than one Grantor payment and performance of the Obligations, or any part thereof, is, pursuant to applicable law, rescinded or reduced in
      amount, or must otherwise be restored or returned by any obligee of the Obligations, whether as a “voidable preference”, “fraudulent conveyance” or otherwise, all as though such payment or performance had not been made. In the event that any payment,
      or any part thereof, is rescinded, reduced, restored or returned, the Obligations shall be reinstated and deemed reduced only by such amount paid and not so rescinded, reduced, restored or returned.

     

    Section 8.9         Binding Effect. The provisions of this Agreement shall be binding upon and inure to the benefit of the respective representatives, successors and permitted assigns of the
      parties hereto; provided, however, no Grantor shall assign or delegate any of its rights or duties hereunder without the prior written consent of the Collateral Agent and the Trustee (other than pursuant to a transaction permitted
      under the Indenture), and any attempted assignment without such consent shall be null and void. The rights and benefits of the Collateral Agent and the Trustee hereunder shall, if such Persons so agree, inure to any party acquiring any interest in
      the Obligations or any part thereof in accordance with the terms hereof or of the Indenture.

     

    Section 8.10        Survival of Representations. All covenants, agreements, representations and warranties made by the Grantors in the Indenture Documents and in the certificates or other
      instruments prepared or delivered in connection with or pursuant to this Agreement or any other Indenture Document shall be considered to have been relied upon by the Secured Parties and shall survive the execution and delivery of the Indenture
      Documents and the purchase of the Securities by the Purchasers, regardless of any investigation made by any Secured Party or on its behalf and notwithstanding that the Collateral Agent, the Trustee or any other Secured Party may have had notice or
      knowledge of any Default or incorrect representation or warranty and shall continue in full force and effect as long as any Obligation (except for contingent indemnities and cost and reimbursement obligations to the extent no claim has been made)
      remains unpaid. Notwithstanding anything to the contrary set forth herein, the provisions of Section 8.17 and Section 8.18 shall survive and remain in full force and effect regardless of the consummation of the transactions contemplated hereby, the
      repayment in full of the Securities or the termination of this Agreement or any other Indenture Document.

     

    
      

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    Section 8.11       Guaranties; Third Party Joinder. Promptly upon creation or acquisition of any Subsidiary of a Grantor, such Grantor shall, to the extent such Subsidiary is required to
      become a Guarantor pursuant to the terms of the Indenture, cause such Subsidiary to become a Grantor by executing and delivering to the Collateral Agent such an instrument in the form of Exhibit C hereto and other instruments, certificates
      and agreements as the Collateral Agent may reasonably request. Upon execution and delivery of such instruments, certificates and agreements, such newly created or acquired Subsidiary shall automatically become a Grantor and thereupon shall have all
      of the rights, benefits, duties and obligations of a Grantor under the Indenture Documents.

     

    Section 8.12        Captions. The captions contained in this Agreement are for convenience of reference only, are without substantive meaning and should not be construed to modify, enlarge or
      restrict any provision.

     

    Section 8.13        Termination and Release. This Agreement and the security interests granted hereby shall terminate in accordance with the Indenture and each Intercreditor Agreement.

     

    Section 8.14       Entire Agreement. This Agreement taken together with the other Indenture Documents embody the entire agreement and understanding between each Grantor and the Collateral
      Agent relating to the Collateral and supersede all prior agreements and understandings between any Grantor and the Collateral Agent relating to the Collateral.

     

    Section 8.15        Governing Law; Jurisdiction; Consent to Service of Process.

     

    (a)         THIS AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK, WITHOUT REGARD TO PRINCIPLES OF CONFLICTS OF LAW (OTHER THAN SECTIONS 5-1401 AND
      5-1402 OF THE NEW YORK GENERAL OBLIGATIONS LAW), EXCEPT TO THE EXTENT THAT LOCAL LAW GOVERNS THE CREATION, PERFECTION, PRIORITY OR ENFORCEMENT OF SECURITY INTERESTS.

     

    (b)         EACH PARTY HERETO HEREBY SUBMITS TO THE NON-EXCLUSIVE JURISDICTION OF THE FEDERAL AND STATE COURTS OF COMPETENT JURISDICTION IN THE BOROUGH OF MANHATTAN IN THE CITY OF NEW YORK IN ANY
      SUIT OR PROCEEDING ARISING OUT OF OR RELATING TO THIS AGREEMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY. EACH PARTY TO THIS AGREEMENT IRREVOCABLY CONSENTS TO SERVICE OF PROCESS IN THE MANNER PROVIDED FOR NOTICES IN SECTION 8.1. NOTHING IN THIS
      AGREEMENT WILL AFFECT THE RIGHT OF ANY PARTY TO THIS AGREEMENT TO SERVE PROCESS IN ANY OTHER MANNER PERMITTED BY LAW.

     

    
      

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    Section 8.16       Waiver of Jury Trial. EACH PARTY HERETO HEREBY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN ANY LEGAL PROCEEDING
      DIRECTLY OR INDIRECTLY ARISING OUT OF OR RELATING TO THIS AGREEMENT. EACH PARTY HERETO (A) CERTIFIES THAT NO REPRESENTATIVE, AGENT OR ATTORNEY OF ANY OTHER PARTY HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PARTY WOULD NOT, IN THE EVENT
      OF LITIGATION, SEEK TO ENFORCE THE FOREGOING WAIVER AND (B) ACKNOWLEDGES THAT IT AND THE OTHER PARTIES HERETO HAVE BEEN INDUCED TO ENTER INTO THIS AGREEMENT BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS SECTION 8.16.

     

    Section 8.17      Indemnity. EACH GRANTOR AGREES, JOINTLY AND SEVERALLY, TO DEFEND, INDEMNIFY AND HOLD THE COLLATERAL AGENT, THE TRUSTEE AND EACH OF THEIR RELATED PERSONS (EACH, AN “INDEMNIFIED
        PERSON”) HARMLESS FROM AND AGAINST ANY AND ALL LIABILITIES, OBLIGATIONS, LOSSES, DAMAGES, PENALTIES, ACTIONS, JUDGMENTS, SUITS, COSTS, CHARGES, EXPENSES AND DISBURSEMENTS (INCLUDING REASONABLE AND DOCUMENTED ATTORNEY COSTS) OF ANY KIND OR
      NATURE WHATSOEVER THAT MAY AT ANY TIME (INCLUDING AT ANY TIME FOLLOWING THE TERMINATION, RESIGNATION OR REPLACEMENT OF THE COLLATERAL AGENT OR THE TRUSTEE) BE IMPOSED ON, INCURRED BY OR ASSERTED AGAINST ANY SUCH PERSON IN ANY WAY RELATING TO OR
      ARISING OUT OF THIS AGREEMENT, THE INDENTURE OR ANY OTHER INDENTURE DOCUMENT OR ANY DOCUMENT CONTEMPLATED BY OR REFERRED TO HEREIN OR THEREIN, OR THE TRANSACTIONS CONTEMPLATED HEREBY OR THEREBY, OR ANY ACTION TAKEN OR OMITTED BY ANY SUCH PERSON UNDER
      OR IN CONNECTION WITH ANY OF THE FOREGOING, INCLUDING WITH RESPECT TO ANY INVESTIGATION, LITIGATION, OR PROCEEDING (INCLUDING ANY INSOLVENCY PROCEEDING OR APPELLATE PROCEEDING) RELATED TO OR ARISING OUT OF THIS AGREEMENT, THE INDENTURE, THE
      SECURITIES OR ANY OTHER INDENTURE DOCUMENT OR THE USE OF THE PROCEEDS THEREOF, WHETHER OR NOT ANY INDEMNIFIED PERSON IS A PARTY THERETO, INCLUDING ANY SUCH LIABILITIES, OBLIGATIONS, LOSSES, DAMAGES, PENALTIES, ACTIONS, JUDGMENTS, SUITS, COSTS,
      CHARGES, EXPENSES AND REIMBURSEMENTS RESULTING FROM THE NEGLIGENCE OF SUCH INDEMNIFIED PERSON (ALL THE FOREGOING, COLLECTIVELY, THE “INDEMNIFIED LIABILITIES”); PROVIDED THAT THE GRANTORS SHALL HAVE NO OBLIGATION HEREUNDER TO ANY
      INDEMNIFIED PERSON WITH RESPECT TO INDEMNIFIED LIABILITIES TO THE EXTENT SUCH INDEMNIFIED LIABILITIES RESULT FROM (x) THE GROSS NEGLIGENCE OR  WILLFUL MISCONDUCT OF SUCH INDEMNIFIED PERSON OR ITS RESPECTIVE AFFILIATES, AS FINALLY DETERMINED BY A
      COURT OF COMPETENT JURISDICTION, OR (y) A CLAIM THAT IS SOLELY BETWEEN OR AMONG INDEMNIFIED PERSONS (OTHER THAN CLAIMS ARISING OUT OF ANY ACT OR OMISSION BY A GRANTOR).  THE AGREEMENTS IN THIS SECTION 8.17 SHALL SURVIVE PAYMENT OF ALL OTHER
      OBLIGATIONS AND ANY TERMINATION OR EXPIRATION OF THIS AGREEMENT OR ANY OTHER INDENTURE DOCUMENT.

     

    
      

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    Section 8.18      Limitation of Liability. NO CLAIM MAY BE MADE BY ANY GRANTOR OR OTHER PERSON AGAINST THE COLLATERAL AGENT, THE TRUSTEE OR THE AFFILIATES, DIRECTORS, OFFICERS, EMPLOYEES OR
      AGENTS OR THEIR RESPECTIVE RELATED PERSONS OF ANY OF THEM FOR ANY SPECIAL, INDIRECT, CONSEQUENTIAL OR PUNITIVE DAMAGES IN RESPECT OF ANY CLAIM FOR BREACH OF CONTRACT OR ANY OTHER THEORY OF LIABILITY ARISING OUT OF OR RELATED TO THE TRANSACTIONS
      CONTEMPLATED BY THIS AGREEMENT, THE INDENTURE OR ANY OTHER INDENTURE DOCUMENT OR ANY ACT, OMISSION OR EVENT OCCURRING IN CONNECTION THEREWITH, AND EACH GRANTOR HEREBY IRREVOCABLY WAIVES, RELEASES AND AGREES NOT TO SUE UPON OR BRING IN ANY JUDICIAL,
      ARBITRAL OR ADMINISTRATIVE FORUM ANY CLAIM FOR SUCH DAMAGES, WHETHER OR NOT ACCRUED AND WHETHER OR NOT KNOWN OR SUSPECTED TO EXIST IN ITS FAVOR. THE AGREEMENTS IN THIS SECTION 8.18 SHALL SURVIVE PAYMENT OF ALL OTHER OBLIGATIONS AND ANY TERMINATION OR
      EXPIRATION OF THIS AGREEMENT OR ANY OTHER INDENTURE DOCUMENT.

     

    Section 8.19        Currency of Account; Conversion of Currency; Foreign Exchange Restrictions.

     

    (a)         U.S. Dollars are the sole currency of account and payment for all sums payable by the Grantors under or in connection with this Agreement, including damages related thereto. Any amount
      received or recovered in a currency other than U.S. Dollars by the Trustee, the Collateral Agent or any other Secured Party (whether as a result of, or as a result of the enforcement of, a judgment or order of a court of any jurisdiction, in the
      winding-up or dissolution of any Grantor or otherwise) in respect of any sum expressed to be due to it from a Grantor shall only constitute a discharge to the Grantor to the extent of the U.S. Dollar amount, which the recipient is able to purchase
      with the amount so received or recovered in that other currency on the date of that receipt or recovery (or, if it is not practicable to make that purchase on that date, on the first date on which it is practicable to do so). If that U.S. Dollar
      amount is less than the U.S. Dollar amount expressed to be due to the recipient under the applicable Obligations, the Grantors shall indemnify it against any loss sustained by it as a result as set forth in Section 8.19(b). In any event, the Grantors
      shall indemnify the recipient against the cost of making any such purchase. For the purposes of this Section 8.19, it will be sufficient for the holder of any Obligations to certify in a satisfactory manner (indicating sources of information used)
      that it would have suffered a loss had an actual purchase of U.S. Dollars been made with the amount so received in that other currency on the date of receipt or recovery (or, if a purchase of U.S. Dollars on such date had not been practicable, on the
      first date on which it would have been practicable, it being required that the need for a change of date be certified in the manner mentioned above).

     

    (b)          The following provisions shall apply to conversion of currency for purposes of this Agreement:

     

    (i)        if for the purpose of obtaining judgment in, or enforcing the judgment of, any court in any country, it becomes necessary to convert into a currency (the “Judgment
        Currency”) an amount due in any other currency (the “Base Currency”), then the conversion shall be made at the rate of exchange prevailing on the Business Day before the day on which the judgment is given or the order of enforcement is
      made, as the case may be (unless a court shall otherwise determine);

     

    
      

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    (ii)         if there is a change in the rate of exchange prevailing between the Business Day before the day on which the judgment is given or an order of enforcement is made, as
      the case may be (or such other date as a court shall determine), and the date of receipt of the amount due, the Grantors will pay such additional (or, as the case may be, such lesser) amount, if any, as may be necessary so that the amount paid in the
      Judgment Currency when converted at the rate of exchange prevailing on the date of receipt will produce the amount in the Base Currency originally due; and

     

    (iii)       in the event of the winding-up of any Grantor at any time while any amount, payment or damages owing under this Agreement, or any judgment or order rendered in respect
      thereof, shall remain outstanding, the Grantors shall indemnify and hold the Trustee, the Collateral Agent and the other Secured Parties harmless against any deficiency arising or resulting from any variation in rates of exchange between (A) the date
      as of which the non-U.S. currency equivalent of the amount due or contingently due under this Agreement (other than under this subsection (b)(iii)) is calculated for the purposes of such winding-up and (B) the final date for the filing of proofs of
      claim in such winding-up (which shall be the date fixed by the liquidator or otherwise in accordance with the relevant provisions of applicable law as being the latest practicable date as at which liabilities of such Grantor may be ascertained for
      such winding-up prior to payment by the liquidator or otherwise in respect thereof).

     

    (c)         The obligations contained in this Section 8.19 shall constitute separate and independent obligations from the other obligations of the Grantors under this Agreement, shall give rise to
      separate and independent causes of action against the Grantors, shall apply irrespective of any waiver or extension granted by the Trustee or the Collateral Agent or either of them from time to time and shall continue in full force and effect
      notwithstanding any judgment or order or the filing of any proof of claim in the winding-up of any Grantor for a liquidated sum in respect of amounts due hereunder (other than under subsection (b)(iii) above) or under any such judgment or order. Any
      such deficiency as aforesaid shall be deemed to constitute a loss suffered by the Trustee, the Collateral Agent or any other Secured Party, as the case may be, and no proof or evidence of any actual loss shall be required by any Grantor or the
      liquidator or otherwise or any of them. In the case of subsection (b)(iii) above, the amount of such deficiency shall not be deemed to be reduced by any variation in rates of exchange occurring between the said final date and the date of any
      liquidating distribution.

     

    (d)         For purposes of this Section 8.19, the term “rate(s) of exchange” shall mean the rate of exchange quoted by Reuters at 10:00 a.m. (New York City time) for spot purchases of the Base
      Currency with the Judgment Currency other than the Base Currency and includes any premiums and costs of exchange payable.

     

    Section 8.20      Counterparts. This Agreement may be executed in any number of counterparts, each of which shall be deemed to be an original, and all such counterparts shall together
      constitute one and the same Agreement. Any counterpart may be executed by facsimile or other electronic transmission, and such facsimile or other electronic transmission shall be deemed an original.

     

    
      

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    Section 8.21        Amendments. Other than as permitted pursuant to the Indenture, neither this Agreement nor any provision hereof may be waived, amended or modified except pursuant to an
      agreement or agreements in writing entered into by the Collateral Agent, the Trustee and the Grantor or Grantors with respect to which such waiver, amendment or modification is to apply, subject to any consent that may be required in accordance with
      Section 9.02 of the Indenture.

     

    Section 8.22        Incorporation by Reference. It is expressly understood and agreed that U.S. Bank National Association is entering into this Agreement solely in its capacity as Collateral
      Agent and as Trustee as appointed pursuant to the Indenture and shall be entitled to all of the rights, privileges, immunities and protections under the Indenture as if such rights, privileges, immunities and protections were set forth herein.

     

    Section 8.23        English Language. All certificates, reports, notices and other documents and communications given or delivered by any party hereto pursuant to this Agreement or any other
      Indenture Document shall be in English or, if not in English, accompanied by a certified English translation thereof. The English version of any such document shall control the meaning of the matters set forth herein.

     

    Section 8.24        Intercreditor Agreements.  In the event of any conflict or inconsistency between the provisions of this Agreement and any Intercreditor Agreement, the provisions of such
      Intercreditor Agreement shall control and govern.

     

    {Signature Pages Follow}

     

    
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    IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly executed as of the date first written above.

     

    	 	
            AQUESTIVE THERAPEUTICS, INC.

          
	 	 	 
	 	
            By:

          	
            /s/ John Maxwell

          
	 	 	
            Name: John Maxwell

          
	 	 	
            Title:   CFO

          

    

    

    	 	
            U.S. BANK NATIONAL ASSOCIATION,

          
	 	
            as Collateral Agent

          
	 	 	 
	 	
            By:

          	
            /s/ Allison D.B. Nadeau

          
	 	 	
            Name:  Allison D.B. Nadeau

          
	 	 	
            Title:    Vice President

          
	 	 	 
	 	
            U.S. BANK NATIONAL ASSOCIATION,

          
	 	
            as Trustee

          
	 	 	 
	 	
            By:

          	
            /s/ Allison D.B. Nadeau

          
	 	 	
            Name:  Allison D.B. Nadeau

          
	 	 	
            Title:    Vice President

          

    

    

    {Signature Page to the Collateral Agreement}

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