Document:

Exhibit 10.1 

 

Execution Version

 

LIMITED WAIVER
TO THIRD AMENDED AND RESTATED CREDIT AGREEMENT

 

THIS
LIMITED WAIVER TO THIRD AMENDED AND RESTATED CREDIT AGREEMENT (this “Waiver”), dated as of May 25, 2021, is entered
into by and among WILMINGTON TRUST, NATIONAL ASSOCIATION, as administrative agent and collateral agent for Lenders (in such capacity,
together with its successors and assigns in such capacity, “Agent”), the Lenders identified on the signature pages
hereof, and SEQUENTIAL BRANDS GROUP, INC., a Delaware corporation (the “Borrower”), and acknowledged and agreed
to by each of the Guarantors identified on the signature pages hereof.

 

RECITALS

 

A.       The
Borrower, certain subsidiaries of the Borrower party thereto from time to time, the lenders party thereto from time to time (the “Lenders”)
and Agent have previously entered into that certain Third Amended and Restated Credit Agreement dated as of July 1, 2016 (as the same
has been amended, restated, amended and restated, supplemented, or otherwise modified prior to the date hereof, the “Credit
Agreement”), pursuant to which the Lenders have made certain loans and financial accommodations available to the Borrower.
Terms used herein without definition shall have the meanings ascribed to them in the Credit Agreement.

 

B.       The
Borrower has requested that the Lenders (x)(i) waive the Default that has arisen under Section 6.01(b) of the Credit Agreement due to
the failure of the Borrower to deliver the financial statements of the Borrower and its Subsidiaries for the Fiscal Quarter ended March
31, 2021 (“2021 Financials”) in accordance with the provisions set forth in Section 6.01(b) of the Credit Agreement
(“2021 Financials Default”), (ii) waive the Default that has arisen under Section 6.02(b) of the Credit Agreement
due to the failure of the Borrower to deliver the Compliance Certificate for the Fiscal Quarter ended March 31, 2021 (“2021
Compliance Certificate”) in accordance with the provisions set forth in Section 6.02(b) of the Credit Agreement (the “2021
Compliance Certificate Default”), and (iii) waive any Event of Default that has arisen under Section 8.01(e) of the Credit
Agreement due to the failure of the Borrower to (A) deliver the financial statements of the Borrower and its Subsidiaries for the Fiscal
Quarter ended March 31, 2021 (the “BoA Financials”) in accordance with the provisions set forth in Section 6.01(b)
of the BoA Credit Agreement (the “BoA Financials Default”), and (B) deliver the Compliance Certificate for the Fiscal
Quarter ended March 31, 2021 (“BoA Compliance Certificate”) in accordance with the provisions set forth in Section
6.02(b) of the BoA Credit Agreement (the “BoA Compliance Certificate Default”; and together with the 2021 Financials
Default, the 2021 Compliance Certificate Default and the BoA Financials Default, collectively, the “Potential Events of Defaults”)
and (y) extend the deadline under the Credit Agreement to deliver the 2021 Financials and the 2021 Compliance Certificate to June 8,
2021.

 

C.       The
Agent (at the direction of the Lenders) and Lenders (constituting the Required Lenders) party hereto are willing to grant a limited waiver
with respect to the Potential Events of Defaults (such waiver, the “Requested Waiver”) under the Credit Agreement,
subject to the terms and conditions set forth herein.

 

     

     

    

 

D.       The
Borrower is entering into this Waiver with the understanding and agreement that, except as specifically provided herein, none of Agent’s
or any Lender’s rights or remedies as set forth in the Credit Agreement or the other Loan Documents are being waived or modified
by the terms of this Waiver.

 

AGREEMENT

 

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

 

1.            
Limited Waiver. Subject to the satisfaction of the conditions precedent set forth in Section 2 of this Waiver, Agent
(at the direction of the Lenders) and the Lenders party hereto (constituting the Required Lenders) hereby grant the Requested Waiver;
provided, that the 2021 Financials, the 2021 Compliance Certificate, the BoA Financials and the BoA Compliance Certificate are
delivered to the Administrative Agent, for delivery to the Lenders on or before June 8, 2021 (or such later date to which the Required
Lenders may agree in writing, which shall include, for the avoidance of doubt, written confirmation by e-mail); provided, further
that the foregoing waiver shall be effective only to the extent specifically set forth herein and shall not (a) be construed as a
consent to or waiver of (i) any breach, Default or Event of Default other than as specifically waived herein, or (ii) any breach, Default
or Event of Default of which Agent or any of the Lenders have not been informed by any Loan Party, (b) affect the right of Agent or any
of the Lenders to demand compliance by each Loan Party with all terms and conditions of the Credit Agreement and the Loan Documents,
except as specifically consented to, modified or waived by the terms hereof, (c) be deemed a consent to or waiver of any future transaction
or action on the part of any Loan Party requiring the Lenders’ or the Required Lenders’ consent or approval under the Credit
Agreement or the Loan Documents, or (d) except as set forth specifically herein, diminish, prejudice or waive any of Agent’s or
any Lender’s rights and remedies under the Credit Agreement, any of the other Loan Documents, or applicable law, whether arising
as a consequence of any Default or Event of Default which may now exist or otherwise, and Agent and each of the Lenders hereby reserve
all of such rights and remedies. Upon the expiration of the Requested Waiver, each Potential Event of Default, to the extent not cured
prior to the expiration of the Requested Waiver, shall constitute an immediate Event of Default under the Credit Agreement. For the avoidance
of doubt and notwithstanding anything herein to the contrary, during the period in which the Requested Waiver is in effect, to the extent
any provision of the Credit Agreement or any other Loan Document is qualified by, or requires the absence of, any Default, a Default
shall be deemed to have occurred for purposes of such provisions as a result of the Potential Events of Defaults notwithstanding the
Requested Waiver.

 

2.            
Conditions Precedent to Effectiveness of this Waiver. This Waiver shall not become effective until all of the following
conditions precedent shall have been satisfied in the sole discretion of the Administrative Agent and the Required Lenders:

 

(a)              
Agent shall have received fully executed counterparts to this Waiver, in form and substance satisfactory to the Required Lenders.

 

    2

     

    

 

(b)              
 Agent shall have received fully executed counterparts of a limited waiver letter (the “BoA Waiver”) in respect
of the BoA Credit Agreement, in form and substance satisfactory to the Required Lenders, and the conditions precedent set forth therein
shall have been satisfied.

 

3.            
Release.

 

In
consideration of the Lenders’ willingness to enter into this Limited Waiver, each Loan Party hereby releases and forever discharges
the Agent and each Lender and the Agent’s and each Lender’s respective predecessors, successors, assigns, officers, managers,
directors, employees, agents, attorneys, representatives, and affiliates (hereinafter all of the above collectively referred to as the
 “Bank Group”), from any and all claims, counterclaims, demands, damages, debts, suits, liabilities, actions and causes
of action of any nature whatsoever, including, without limitation, all claims, demands, and causes of action for contribution and indemnity,
whether arising at law or in equity, whether known or unknown, whether liability be direct or indirect, liquidated or unliquidated, whether
absolute or contingent, foreseen or unforeseen, and whether or not heretofore asserted, which any Loan Party may have or claim to have
against any of the Bank Group in any way related to or connected with the Loan Documents and the transactions contemplated thereby.

 

4.            
Representations and Warranties. The Borrower represents and warrants as follows:

 

(a)              
Authority. The Borrower has the requisite corporate power and authority to execute and deliver this Waiver, and to perform
its obligations hereunder and under the Loan Documents (as amended or modified hereby) to which it is a party. The execution, delivery
and performance by the Borrower of this Waiver have been duly approved by all necessary corporate action, have received all necessary
governmental approval, if any, and do not contravene (i) any material provision of any law or (ii) where such contravention could individually
or in the aggregate reasonably be expected to result in a Material Adverse Effect, any material contractual restriction binding on the
Borrower. No other corporate proceedings are necessary to consummate such transactions.

 

(b)              
Enforceability. This Waiver has been duly executed and delivered by the Borrower. This Waiver and each Loan Document (as
amended or modified hereby) are the legal, valid and binding obligations of the Borrower, enforceable against the Borrower in accordance
with their respective terms, and are in full force and effect.

 

(c)              
Representations and Warranties. Immediately after giving effect to the terms of this Waiver, the representations and warranties
contained in each Loan Document (other than any such representations or warranties that, by their terms, are specifically made as of
a date other than the date hereof) are true and correct in all material respects (except that such materiality qualifier shall not be
applicable to any portion of any representation and warranty that is already qualified or modified by materiality in the text thereof)
on and as of the date hereof as though made on and as of the date hereof.

 

5.            
No Default. Immediately after giving effect to the terms of this Waiver, no event has occurred and is continuing that constitutes
a Default or Event of Default.

 

    3

     

    

 

6.             
 Binding Effect. The terms and provisions hereof shall be binding upon and inure to the benefit of the parties hereto and
their heirs, representatives, successors and assigns.

 

7.             
Reaffirmation of Obligations. The Borrower and each Guarantor hereby ratifies the Loan Documents and acknowledges and reaffirms
(a) that it is bound by all terms of the Loan Documents applicable to it and (b) that it is responsible for the observance
and full performance of its respective Obligations.

 

8.             
Loan Document. This Waiver shall constitute a Loan Document under the terms of the Amended Credit Agreement.

 

9.             
Multiple Counterparts. This Waiver may be executed in counterparts (and by different parties hereto in different counterparts),
each of which shall constitute an original, but all of which when taken together shall constitute a single contract. Delivery of an executed
counterpart of a signature page of this Waiver by telecopy, pdf or other electronic transmission shall be as effective as delivery of
a manually executed counterpart of this Waiver.

 

10.          
Governing Law. THIS WAIVER AND ANY CLAIMS, CONTROVERSY, DISPUTE OR CAUSE OF ACTION, WHETHER IN LAW OR EQUITY, WHETHER IN
CONTRACT OR IN TORT OR OTHERWISE BASED UPON, ARISING OUT OF OR RELATING TO THIS WAIVER AND THE TRANSACTIONS CONTEMPLATED HEREBY SHALL
BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAW OF THE STATE OF NEW YORK.

 

11.          
Consent to Jurisdiction; Service of Process; Waiver of Jury Trial. The jurisdiction, service of process and waiver of jury
trial provisions set forth in Sections 10.14 and 10.15 of the Amended Credit Agreement are hereby incorporated by reference, mutatis
mutandis.

 

12.          
Agent Authorization. Each of the undersigned Lenders hereby authorizes and directs Agent to execute and deliver this Waiver
on its behalf and, by its execution below, each of the undersigned Lenders agrees to be bound by the terms and conditions of this Waiver.

 

[Remainder
of Page Left Intentionally Blank]

 

    4

     

    

 

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

 

 

	 	WILMINGTON TRUST, NATIONAL ASSOCIATION, 
	 	as Agent
	 	 
	 	By:	/s/ Andrew Lennon
	 	Name:	Andrew Lennon
	 	Title:	Assistant Vice President

 

[Signature page to Waiver to Sequential Credit Agreement] 

 

     

     

    

 

LENDERS:

 

	 	FS KKR CAPITAL CORP.
	 	 
	 	By:	/s/ Jessica Woolf
	 	Name:	Jessica Woolf
	 	Title:	Authorized Signatory
	 	 
	 	DARBY CREEK LLC
	 	 
	 	By:	/s/ Jessica Woolf
	 	Name:	Jessica Woolf
	 	Title:	Authorized Signatory
	 	 
	 	FS KKR CAPITAL CORP. II
	 	 
	 	By:	/s/ Jessica Woolf
	 	Name:	Jessica Woolf
	 	Title:	Authorized Signatory
	 	 
	 	DUNLAP FUNDING LLC
	 	 
	 	By:	/s/ Jessica Woolf
	 	Name:	Jessica Woolf
	 	Title:	Authorized Signatory

 

    2

     

    

 

ACKNOWLEDGED AND AGREED:

 

	BORROWER:  	SEQUENTIAL BRANDS GROUP, INC.,
	 	a Delaware corporation
	 	 
	 	By:	/s/ Lorraine DiSanto
	 	Name:	Lorraine DiSanto
	 	Title:	Chief Financial Officer

 

	GUARANTORS:	SQBG, INC.
	 	 
	 	By:	/s/ Lorraine DiSanto
	 	Name:	Lorraine DiSanto
	 	Title:	Chief Financial Officer
	 	 
	 	SEQUENTIAL LICENSING, INC.
	 	 
	 	By:	/s/ Lorraine DiSanto
	 	Name:	Lorraine DiSanto
	 	Title:	Chief Financial Officer
	 	 
	 	WILLIAM RAST LICENSING, LLC
	 	 
	 	By:	/s/ Lorraine DiSanto
	 	Name:	Lorraine DiSanto
	 	Title:	 Chief Financial Officer
	 	 
	 	HEELING SPORTS LIMITED
	 	 
	 	By:	/s/ Lorraine DiSanto
	 	Name:	 Lorraine DiSanto
	 	Title:	Chief Financial Officer
	 	 
	 	B®AND MATTER, LLC
	 
	 	By:	/s/ Lorraine DiSanto
	 	Name:	Lorraine DiSanto
	 	Title:	Chief Financial Officer

 

    3

     

    

 

	 	SBG FM, LLC
	 	 
	 	By:	/s/ Lorraine DiSanto
	 	Name:	Lorraine DiSanto
	 	Title:	Chief Financial Officer
	 	 
	 	SBG UNIVERSE BRANDS, LLC
	 	 
	 	By:	/s/ Lorraine DiSanto
	 	Name:	Lorraine DiSanto
	 	Title:	Chief Financial Officer
	 	 
	 	GALAXY BRANDS LLC
	 	 
	 	By:	/s/ Lorraine DiSanto
	 	Name:	Lorraine DiSanto
	 	Title:	Chief Financial Officer
	 	 
	 	The Basketball Marketing Company, Inc.
	 	 
	 	By:	/s/ Lorraine DiSanto
	 	Name:	Lorraine DiSanto
	 	Title:	Chief Financial Officer
	 	 
	 	AMERICAN SPORTING GOODS CORPORATION
	 	 
	 	By:	/s/ Lorraine DiSanto
	 	Name:	Lorraine DiSanto
	 	Title:	 Chief Financial Officer
	 	 
	 	LNT BRANDS LLC
	 	 
	 	By:	/s/ Lorraine DiSanto
	 	Name:	 Lorraine DiSanto
	 	Title:	Chief Financial Officer
	 	 
	 	JOE’S HOLDINGS LLC
	 	 
	 	By:	 /s/ Lorraine DiSanto
	 	Name:	Lorraine DiSanto
	 	Title:	Chief Financial Officer

 

    4

     

    

 

	 	GAIAM BRAND HOLDCO, LLC
	 	 
	 	By:	/s/ Lorraine DiSanto
	 	Name:	 Lorraine DiSanto
	 	Title:	Chief Financial Officer
	 	 
	 	GAIAM AMERICAS, INC.
	 	 
	 	By:	/s/ Lorraine DiSanto
	 	Name:	Lorraine DiSanto
	 	Title:	Chief Financial Officer
	 	 
	 	SBG-GAIAM HOLDINGS, LLC
	 	 
	 	By:	/s/ Lorraine DiSanto
	 	Name:	Lorraine DiSanto
	 	Title:	Chief Financial Officer

 

    5Exhibit 10.2 

 

May 25, 2021

 

Sequential Brands Group, Inc.

1407 Broadway, 38th Floor

New York, NY 10018

 

Attention: Lorraine DiSanto

 

Dear Lorraine:

 

Reference
is hereby made to that certain Third Amended and Restated First Lien Credit Agreement dated as of July 1, 2016 (as amended, restated,
amended and restated, supplemented, or otherwise modified from time to time, the “Credit Agreement”) by and
between Sequential Brands Group, Inc., as Borrower, the Guarantors party thereto, the Lenders party thereto, and Bank of America, N.A.,
as Administrative Agent and Collateral Agent. All capitalized terms used herein and not otherwise defined shall have the same meaning
herein as in the Credit Agreement.

 

Pursuant
to Section 6.01(b) of the Credit Agreement, as soon as available, but in any event within 45 days after the end of each Fiscal Quarter
of the Borrower, the Borrower is obligated to deliver quarterly financial statements as required by the Credit Agreement (the “Quarterly
Financial Statements”), together with a Compliance Certificate as required by Section 6.02(b) of the Credit Agreement (the
 “Quarterly Compliance Certificate”). The failure of the Borrower to so deliver such Quarterly Financial Statements
and Quarterly Compliance Certificate within ten (10) days of such due date is an Event of Default under Section 8.01(b) of the Credit
Agreement. As of May [25], 2021, the Borrower has not yet delivered the Quarterly Financial Statements or the Quarterly Compliance Certificate
for the Fiscal Quarter ending March 31, 2021, which each such failure constitutes a Default under the Credit Agreement (collectively,
the “Existing Defaults”), and, in each case, if not so delivered on or before May 25, 2021, shall constitute
an Event of Default under the Credit Agreement (collectively, the “Potential Events of Default”). The Borrower
has requested that the Agent and the Required Lenders temporarily waive the Existing Defaults and the Potential Events of Default, and
the Agent and the Required Lenders are willing to do so on the terms and conditions set forth herein.

 

Accordingly,
the Agent and the Lenders parties hereto (constituting the Required Lenders) hereby waive (the “Waiver”) the
Existing Defaults and the Potential Events of Default, subject to the following:

 

1.       The
Waiver is a one-time waiver only, relates only to the Existing Defaults and the Potential Events of Default, and shall not be deemed
to constitute a modification or waiver of any other provisions of the Credit Agreement or other Loan Documents. This Waiver relates solely
to the matters set forth herein and shall not be deemed to be a continuing consent or waiver to any other provisions of the Credit Agreement
or any other Loan Document.

 

     

     

    

 

Sequential Brands Groups,

Inc. May 25, 2021

Page 2 

 

2.
        The Waiver will expire and be of no force and effect on June 8, 2021 (or such later date to which the Required Lenders may agree in writing,
which shall include, for the avoidance of doubt, written confirmation by e-mail), unless on or before such date the Borrower shall have
delivered the Quarterly Financial Statements and the Quarterly Compliance Certificate for the Fiscal Quarter ending March 31, 2021 as
required by Sections 6.01(b) or 6.02(b) of the Credit Agreement, as applicable, in which case, no Default or Event of Default with respect
to the Existing Defaults or the Potential Events of Default shall be deemed to have occurred or be continuing on a permanent basis.

 

3.
        For the avoidance of doubt and notwithstanding anything herein to the contrary, during the period in which the Waiver is in effect,
to the extent any provision of the Credit Agreement or any other Loan Document is qualified by, or requires the absence of, any
Default or Event of Default, a Default or Event of Default shall not be deemed to have occurred for purposes of such provisions as a
result of the Existing Default or the Potential Event of Default.

 

4.
        Except as specifically set forth herein, all terms and conditions of the Credit Agreement
and the other Loan Documents remain in full force and effect.

 

[SIGNATURE
PAGES FOLLOW]

 

     

     

    

 

Sequential Brands Groups,

Inc. May 25, 2021

Page 3

 

If
the foregoing correctly sets forth our understanding, please indicate your acceptance of the terms hereof by returning to us an executed
counterpart hereof, whereupon this letter agreement shall become a binding agreement between us.

 

 

	 	Very truly yours,
	 	 
	 	BANK OF AMERICA, N.A., as Agent and Lender
	 	 
	 	By	/s/ Matthew Potter
	 	Title:	Senior Vice President

 

     

     

    

 	 	Citizens Bank, n.a.,
    as Lender
	 	 
	 	By	/s/ Madison Burns
	 	Title:	Assistant Vice President

 

     

     

    

 

The foregoing is agreed to:

 

	SEQUENTIAL BRANDS GROUP, INC.	 
	 	 
	By	/s/ Lorraine DiSanto	 
	Title:	Lorraine DiSanto	 
	Dated: Chief Financial Officer

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