Document:

Exhibit 10.2

 

EXECUTION VERSION

 

September 11, 2015

 

Sequential Brands Group, Inc.

1065 Avenue of the Americas

Suite 1705

New York, NY 10018

Attention: Gary Klein

 

		Re:	Limited Consent and Waiver

 

Ladies and Gentlemen:

 

Reference is made to that certain Second
Amended and Restated First Lien Credit Agreement, dated as of April 8, 2015, among Sequential Brands Group, Inc., as borrower (the
“Borrower”), the Guarantors party thereto, the lenders from time to time party thereto (the “Lenders”),
and Bank of America, N.A.), as administrative agent and collateral agent (the “Agent”) (as amended, restated,
supplemented or otherwise modified from time to time, the “First Lien Credit Agreement”). Capitalized
terms used herein and not otherwise defined shall have the meaning given to such terms in the First Lien Credit Agreement.

 

The Borrower has requested that, notwithstanding
the limitations set forth in clause (u) of the definition of “Permitted Investments” as set forth in the First Lien
Credit Agreement, the First Lien Agent and the Required Lenders (i) consent to the temporary increase of the basket set forth in
such clause (u) from $10,000,000 to $15,000,000 from the date hereof through and until December 31, 2015 (the “Temporary
Basket Increase”) and permit any Investment made in reliance on such clause to be made in a Person that engages in lines
of business that are substantially the same lines of business as one or more of the principal businesses of the Borrower and its
Subsidiaries in the ordinary course (the “Temporary Basket Expansion”) and (ii) waive the requirement that the
Agent obtain a Lien on and security interest in any Equity Interests obtained by the Borrower pursuant to any Investment made in
reliance on clause (u) of the definition of “Permitted Investments”, but solely to the extent such Equity Interests
would constitute margin stock under the Second Lien Facility (within the meaning of Regulation U of the Board of Governors of the
Federal Reserve System of the United States).

 

Upon effectiveness of this letter agreement,
the Agent and the Required Lenders hereby consent to the Temporary Basket Increase and to the Temporary Basket Expansion and waive
the requirement that the Agent obtain a Lien on and security interest in any Equity Interests obtained by the Borrower pursuant
to any Investment made in reliance on clause (u) of the definition of “Permitted Investments” to the extent such Equity
Interests would constitute margin stock under the Second Lien Facility (within the meaning of Regulation U of the Board of Governors
of the Federal Reserve System of the United States), provided that the following conditions shall have been satisfied in
connection with the Temporary Basket Increase:

 

(i)With respect to any Investment
made pursuant to the provisions of clause (u) of the definition of “Permitted Investments” during the time period that
the Temporary Basket Increase is in effect, an amount of $10,000,000 constituting proceeds of the loans under the Second Lien Credit
Agreement shall be used to pay a portion of the consideration for such Investment, and the remaining portion of such consideration
shall be paid from cash on hand of the Borrower. For the avoidance of doubt, no proceeds of the Loans under the First Lien Credit
Agreement shall be used to pay any portion of the consideration for any Investment made pursuant to the provisions of clause (u)
of the definition of “Permitted Investments” during the time period that the Temporary Basket Increase is in effect.

 

     

     

    

  

(ii)After giving effect to
any Investment made pursuant to the provisions of clause (u) of the definition of “Permitted Investments” during the
time period that the Temporary Basket Increase is in effect, the amount available to be invested by the Borrower pursuant to clause
(u) of the definition of “Permitted Investments” shall be decreased by the amount of such Investment until such time,
as any, as the Borrower has sold all or any portion of any such Investment, at which time the basket set forth in clause (u) of
the definition of “Permitted Investments” shall be increased in proportion to the amount received by the Borrower in
connection with any such sale of such Investment, but in no event shall the amount of such basket exceed $10,000,000 at any time
from and after January 1, 2016.

 

For the avoidance of doubt, any Investment
made in reliance on, and compliance of, clause (u) of the definition of “Permitted Investments” during the time period
that the Temporary Basket Increase is in effect may be maintained and held by the Borrower and its Subsidiaries during the term
of the First Lien Credit Agreement without regard to the amount available under such clause.

 

In addition to the foregoing, notwithstanding
anything to the contrary in the First Lien Credit Agreement and the other Loan Documents, the Agent and the Required Lenders hereby
consent (1) to the incurrence of, and the increase in, the aggregate outstanding principal amount of Indebtedness in respect of
the Second Lien Facility (including the increase of the principal amount pursuant to the incremental provisions therein) to $220,000,000
at any time (it being understood that the outstanding principal amount of the loans under the Second Lien Facility will be $216,000,000
as of the date hereof after giving effect to the funding on such date); provided that, the aggregate outstanding principal
amount of Indebtedness in respect of the Second Lien Facility shall not be increased to an amount greater than $220,000,000 at
any time without further consent of the Required Lenders, and (2) to the incurrence of, and the increase in, the Liens securing
the Second Lien Facility to the extent the outstanding principal amount of such Second Lien Facility does not exceed the maximum
amount permitted pursuant to clause (1) above.

 

The foregoing consent and waiver is a one-time
consent and waiver and shall apply only to the matters set forth in this letter agreement. Without limiting the generality of the
foregoing, the limited consent herein shall not apply to any future circumstances whether or not similar to the foregoing.

 

The Borrower hereby represents and warrants
that the execution and delivery of this letter agreement (a) are within the power of the Borrower and (b) have been duly authorized
by all necessary action on the part of the Borrower. The Borrower confirms that after giving effect to this letter agreement, the
representations and warranties contained in the Credit Agreement and the other Loan Documents are true and correct on and as of
the date hereof, except (i) to the extent such representations and warranties specifically refer to an earlier date, in which case
they are true and correct as of such earlier date, (ii) in the case of any representation and warranty that is qualified by materiality,
such representation and warranty is true and correct in all respects and (iii) with respect to the representations and warranties
contained in subsections (a) and (b) of Section 5.05 of the Credit Agreement, such representations and warranties shall be deemed
to refer to the most recent statements furnished pursuant to clauses (a) and (b), respectively, of Section 6.01 of the Credit Agreement.

 

Bank of America, N.A., in its capacity as
the Administrative Agent, hereby certifies that the Lenders signatory to this letter agreement constitute the Required Lenders
under the First Lien Credit Agreement as of the date hereof.

 

The provisions of this letter agreement
shall be effective on the date on which the First Lien Administrative Agent shall have received this letter agreement, duly executed
by the First Lien Administrative Agent, the Required Lenders, the Borrower and the other Loan Parties.

 

Except as specifically modified herein,
the Credit Agreement and the other Loan Documents shall remain in full force and effect and are hereby ratified and confirmed by
the Borrower and the other Loan Parties in all respects. This letter agreement may be executed in any number of counterparts and
any party hereto may execute any counterpart, each of which when executed and delivered will be deemed to be an original and all
of which counterparts of this letter agreement when taken together will be deemed to be but one and the same instrument. Transmission
by fax (or an email of a PDF or similar electronic image file) of an executed counterpart of this letter agreement shall be deemed
to constitute due and sufficient delivery of such counterpart. This letter agreement shall be governed by, and construed and enforced
in accordance with, the law of the State of New York.

 

    	 	2	 

     

    

  

This letter agreement is a Loan Document
as defined in the Credit Agreement, and the provisions of the Credit Agreement generally applicable to Credit Documents are applicable
hereto and incorporated herein by this reference.

 

[This Space Intentionally Left Blank]

 

 

 

 

 

 

 

 

 

 

 

 

 

    	 	3	 

     

    

 

	 	Very truly yours,
	 	 	 
	 	BANK OF AMERICA, N.A.
	 	 	 
	 	By:	/s/ Andrew Cerussi
	 	Name:	Andrew Cerussi
	 	Title:	Director

 

 

	 	FIFTH THIRD BANK
	 	 	 
	 	By:	/s/ Patrick Lingrosso
	 	Name:	Patrick Lingrosso
	 	Title:	Vice President

 

 

	 	ISRAEL DISCOUNT BANK OF NEW
YORK
	 	 	 
	 	By:	/s/ Michael Paul
	 	Name:	 Michael Paul
	 	Title:	Senior Vice President

 

 

	 	By:	/s/ Li Zhou
	 	Name:	Li Zhou
	 	Title:	Vice President

 

  

	 	BANK HAPOALIM
	 	 	 
	 	By:	 
	 	Name:	 
	 	Title:	 

 

    	 	4	 

     

    

  

Acknowledged and Agreed:

 

BORROWER:

 

SEQUENTIAL BRANDS GROUP, INC.,

a Delaware corporation

 

 

By: /s/ Gary Klein

Name: Gary Klein

Title: Chief Financial Officer

 

 

GUARANTORS:

 

SEQUENTIAL LICENSING, INC.

 

By: /s/ Gary Klein

Name: Gary Klein

Title: Chief Financial Officer

 

BELLA ROSE, LLC

 

By: /s/ Gary Klein

Name: Gary Klein

Title: Chief Financial Officer

 

WILLIAM RAST SOURCING, LLC

 

By: /s/ Gary Klein

Name: Gary Klein

Title: Chief Financial Officer

 

WILLIAM RAST LICENSING, LLC

 

By: /s/ Gary Klein

Name: Gary Klein

Title: Chief Financial Officer

 

HEELYS, INC.

 

By: /s/ Gary Klein

Name: Gary Klein

Title: Chief Financial Officer

 

    	 	5	 

     

    

 

HEELING MANAGEMENT CORP.

 

By: /s/ Gary Klein

Name: Gary Klein

Title: Chief Financial Officer

 

HEELING HOLDING CORPORATION

 

By: /s/ Gary Klein

Name: Gary Klein

Title: Chief Financial Officer

 

HEELING SPORTS LIMITED

 

By: /s/ Gary Klein

Name: Gary Klein

Title: Chief Financial Officer

 

B®AND MATTER, LLC

 

By: /s/ Gary Klein

Name: Gary Klein

Title: Chief Financial Officer

 

SBG REVO HOLDINGS, LLC

 

By: /s/ Gary Klein

Name: Gary Klein

Title: Chief Financial Officer

 

SBG FM, LLC

 

By: /s/ Gary Klein

Name: Gary Klein

Title: Chief Financial Officer

 

    	 	6	 

     

    

  

SBG UNIVERSE BRANDS, LLC

 

By: /s/ Gary Klein

Name: Gary Klein

Title: Chief Financial Officer

 

GALAXY BRANDS LLC

 

By: /s/ Gary Klein

Name: Gary Klein

Title: Chief Financial Officer

 

THE BASKETBALL MARKETING COMPANY, INC.

 

By: /s/ Gary Klein

Name: Gary Klein

Title: Chief Financial Officer

 

AMERICAN SPORTING GOODS CORPORATION

 

By: /s/ Gary Klein

Name: Gary Klein

Title: Chief Financial Officer

 

LNT BRANDS LLC

 

By: /s/ Gary Klein

Name: Gary Klein

Title: Chief Financial Officer

 

    	 	7Exhibit 10.3

 

EXECUTION
VERSION

 

Incremental Joinder Agreement, First
Amendment to Amended and Restated Second Lien Credit Agreement and Waiver

 

THIS INCREMENTAL
JOINDER AGREEMENT, FIRST AMENDMENT TO AMENDED AND RESTATED SECOND LIEN CREDIT AGREEMENT AND WAIVER, dated as of September 11,
2015 (this “Agreement”), by and among DARBY CREEK LLC, LEHIGH RIVER LLC, LOCUST STREET FUNDING LLC and
FS INVESTMENT CORPORATION III (each, an “Additional Commitment Lender”), the other Lenders party hereto,
SEQUENTIAL BRANDS GROUP, INC., a Delaware corporation (the “Borrower”),
and the Required Lenders under the Credit Agreement referenced below and acknowledged by Wilmington
Trust, National Association, in its capacity as Administrative Agent and Collateral Agent (the “Agent”),
under that certain Amended and Restated Second Lien Credit Agreement, dated as of April 8, 2015 (as amended hereby and as may be
further amended, modified, restated, supplemented or extended from time to time, the “Credit Agreement”), among
the Borrower, the Lenders from time to time party thereto and the Agent. Capitalized terms used herein but not otherwise defined
shall have the meanings provided in the Credit Agreement.

 

RECITALS:

 

WHEREAS,
subject to the terms and conditions of Section 2.14 of the Credit Agreement, the Borrower may obtain additional Loans by entering
into one or more joinder agreements (as more specifically described in Section 2.14(e) of the Credit Agreement) with the Agent
and the Additional Commitment Lenders; and

 

WHEREAS, the
Additional Commitment Lenders have agreed to provide such additional Loans (collectively, the “Additional Term Loan”)
which will be added to and become part of the outstanding Loans in existence on the First Amendment Effective Date (as defined
below).

 

WHEREAS, the
Loan Parties have requested that the Required Lenders: (a) amend certain provisions of the Credit Agreement; and (b) waive (i)
the requirements for any notice time period set forth in Section 2.14 of the Credit Agreement and (ii) the requirement for Agent
and the Arranger consent for commitments less than the $5,000,000 minimum commitment requirement set forth in the proviso of Section
2.14(c) of the Credit Agreement, in each case of (i) and (ii) above, solely in connection with the Additional Term Loan to be made
on the First Amendment Effective Date (collectively, the “Waived Requirements”); and

 

WHEREAS, the
Agent, the Arranger and the Required Lenders are willing make such amendments to the Loan Agreement and grant such waivers, in
each case, in accordance with and subject to the terms and conditions set forth herein.

 

NOW, THEREFORE,
in consideration of the agreements hereinafter set forth, and for other good and valuable consideration, the receipt and adequacy
of which are hereby acknowledged, the parties hereto agree as follows:

 

		1.	Commitment.

 

a. Each Additional Commitment Lender party hereto
hereby agrees to commit to provide its respective portion (its “Additional Term Loan Commitment”) of the Additional
Term Loan as set forth on Schedule A annexed hereto, on the terms and subject to the conditions set forth in this Agreement.

 

    	 		 

     

    

  

b.Each Additional Commitment
Lender (i) confirms that it has received a copy of the Credit Agreement and the other Loan Documents, together with copies
of the financial statements referred to therein and such other documents and information as it has deemed appropriate to make its
own credit analysis and decision to enter into this Agreement, and it is sophisticated with respect to decisions to make loans
similar to those contemplated to be made hereunder and it is experienced in making loans of such type, (ii) agrees that it
will, independently and without reliance upon the Agent or any other Lender and based on such documents and information as it shall
deem appropriate at the time, continue to make its own credit decisions in taking or not taking action under the Credit Agreement,
(iii) appoints and authorizes the Agent to take such action as agent on its behalf and to exercise such powers under the Credit
Agreement and the other Loan Documents as are delegated to the Agent by the terms thereof, together with such powers as are reasonably
incidental thereto and (iv) agrees that it will perform in accordance with their terms all of the obligations which by the terms
of the Credit Agreement are required to be performed by it as a Lender.

 

		2.	Upfront Structuring Fees. The Borrower agrees to pay (or cause to be paid) on First
Amendment Effective Date to each Additional Commitment Lender, or one of its Affiliates, the upfront structuring fees set forth
in that certain Incremental Fee Letter, dated the date hereof, by and among the Borrower and the Additional Commitment Lenders
(the “Incremental Fee Letter”).

 

		3.	Proposed Borrowing. This Agreement represents the Borrower’s request to borrow the
Additional Term Loan from the Additional Commitment Lenders as follows (the “Proposed Borrowing”):

 

		a.	Business Day of Increase Effective Date (as defined in Section 2.14 of the Credit Agreement): September 11, 2015

 

		b.	Amount of Proposed Borrowing: $56,000,000.00

 

		4.	New Lenders. Each Additional Commitment Lender not already a Lender under the Credit Agreement
acknowledges and agrees that upon its execution of this Agreement and the making of its portion of the Additional Term
Loan that such Additional Commitment Lender shall become a “Lender” under, and for all purposes of, the Credit
Agreement and the other Loan Documents, and shall be subject to and bound by the terms thereof, and shall perform all the obligations
of and shall have all rights of a Lender thereunder.

 

		5.	Credit Agreement Governs. The Additional Term Loan shall (a) constitute a Loan for
all purposes of the Credit Agreement and the other Loan Documents, and (b) be subject to the same terms and provisions in the Credit
Agreement and the other Loan Documents applicable to the Loans in existence and outstanding immediately prior to the First Amendment
Effective Date.

 

		6.	Amendments to Section 1.01 of the Credit Agreement. Section 1.01 of the Credit Agreement
is hereby amended by:

 

(a) inserting
the following definitions in appropriate alphabetical order:

 

““First
Amendment Effective Date” means September 11, 2015.”;

 

““Joe’s
Jeans Acquired Brands” means certain intellectual property assets used or held prior to the First Amendment Effective Date
for use in the business of Joe’s Jeans, Inc., a Delaware corporation, and certain of its subsidiaries and affiliates operated
under the brand names “Joe’s Jeans” and certain other brands and certain other assets as more fully described
in the Joe’s Jeans Acquisition Agreement, to be owned on and after the First Amendment Effective Date by Joe’s Holdings
LLC, a Delaware limited liability company, pursuant to the terms of the Joe’s Jeans Acquisition Agreement.”;

 

    	 	2	 

     

    

  

““Joe’s
Jeans Acquisition” means the acquisition of the Joe’s Jeans Acquired Brands pursuant to the Joe’s Jeans Acquisition
Agreement.”;

 

““Joe’s
Jeans Acquisition Agreement” means that certain Asset Purchase Agreement, dated as of September 8, 2015 by and among Joe’s
Jeans Inc., Joe’s Holdings LLC and the Borrower.”;

 

(b) deleting the following parenthetical
and the text contained therein) from clause (b) of the definition of “Change of Control”:

 

“(excluding, in the case of both
clause (ii) and clause (iii), any individual whose initial nomination for, or assumption of office as, a member of that board or
equivalent governing body occurs as a result of an actual or threatened solicitation of proxies or consents for the election or
removal of one or more directors by any person or group other than a solicitation for the election of one or more directors by
or on behalf of the board of directors)”; and

 

(c) deleting clause (u) of the
definition of “Permitted Investment” in its entirety and replacing it with the following in lieu thereof:

 

“(u) From
the period beginning on the First Amendment Effective Date and ending on December 31, 2015, Investments by the Borrower and its
Subsidiaries not otherwise permitted under this definition of “Permitted Investments” in an aggregate amount not to
exceed $15,000,000; provided that, with respect to each Investment made pursuant to this clause (u): (i) such Investment shall
be in property that is part of, or in a Person that engages in, lines of business that are, substantially the same lines of business
as one or more of the principal businesses of the Borrower and its Subsidiaries in the ordinary course; (ii) any determination
of the amount of such Investment shall include all cash and noncash consideration paid by or on behalf of the Borrower and its
Subsidiaries in connection with such Investment; and (iii) immediately before and immediately after giving pro forma effect to
any such purchase or other acquisition, no Default shall have occurred and be continuing; and”;

 

		7.	Amendment to Section 2.14 of the Credit Agreement. Section 2.14 of the Credit Agreement
is hereby amended by replacing the reference to “$40,000,000” in clause (a) of such Section 2.14 with the following:
“$56,000,000”.

 

		8.	Amendment to Schedule 2.01(c) of the Credit Agreement. Upon the funding of the Additional
Term Loan, Schedule 2.01(c) of the Credit Agreement shall be hereby amended and restated by replacing such schedule with Schedule
2.01(c) annexed hereto, which in Part III thereof, reflects the new “Applicable Percentages” of each Lender (including
the Additional Commitment Lenders) after giving effect to the funding of the Additional Term Loan.

 

    	 	3	 

     

    

 

		9.	Eligible Assignee. By its execution of this Agreement, each Additional Commitment
Lender not already a Lender under the Credit Agreement represents and warrants that it is an Eligible Assignee.

 

		10.	Notice. For purposes of the Credit Agreement, the initial notice address of each Additional
Commitment Lender not already a Lender under the Credit Agreement shall be as set forth below its signature.

 

		11.	Use of Proceeds. Notwithstanding anything in Section 7.11 of the Credit Agreement to the
contrary, the Required Lenders and the Additional Commitment Lenders hereby agree that (a) up to $10,000,000 of the proceeds of
the Additional Term Loan made on the First Amendment Effective Date (i) may be used by the Borrower, solely with respect to Investments
permitted under clause (u) of the definition of “Permitted Investments” in the Credit Agreement, to purchase or carry
margin stock (within the meaning of Regulation U of the FRB) or (ii) otherwise, shall be used for general corporate purposes to
the extent expressly permitted under Law and the Loan Documents and (b) up to $46,500,000 of the proceeds of the Additional Term
Loan shall be used to consummate the Joe’s Jeans Acquisition and pay the related expenses and fees.

 

		12.	Availability of Incremental Facility. The parties hereby agree that, immediately upon the
funding of the Additional Term Loan, the amount available to the Borrower under Section 2.14(a) of the Credit Agreement (Incremental
Facility) shall be reduced to $0.

 

		13.	Waiver.

 

		a.	Waiver. Subject to the terms and conditions set forth herein, the Required Lenders hereby
waive the Waived Requirements.

 

		b.	Effectiveness of Waiver. The waiver set forth in this Agreement shall be effective only
to the extent specifically set forth herein and shall not (i) be construed as a consent to or waiver of any other provision of
the Credit Agreement or as a consent to or waiver of any breach, Default or Event of Default of the Credit Agreement and/or the
other Loan Documents, except as modified or waived by this Agreement, (ii) affect the right of the Lenders to demand compliance
by the Loan Parties with all terms and conditions of the Credit Agreement and/or the other Loan Documents, except as specifically
modified or waived by this Agreement, (iii) be deemed a consent to or waiver of any transaction or future action on the part of
the Loan Parties requiring the Lenders’ or the Required Lenders’ consent or approval under the Credit Agreement and/or
the other Loan Documents, or (iv) except as waived hereunder, be deemed or construed to be a consent, waiver or release of, or
a limitation upon, the Agent’s or the Lenders’ exercise of any rights or remedies under the Credit Agreement or any
other Loan Document, whether arising as a consequence of any Default or Event of Default which may now exist or otherwise, all
such rights and remedies hereby being expressly reserved.

 

		14.	Closing Conditions. This Agreement shall become effective as of September 11, 2015 (the
“First Amendment Effective Date”) upon satisfaction of the following conditions (in each case, in form and substance
reasonably acceptable to the Required Lenders and the Additional Commitment Lenders):

 

		a.	Executed Agreement. The Agent shall have received a copy of this Agreement duly executed
by each of the Loan Parties, the Additional Commitment Lenders and the Required Lenders.

 

    	 	4	 

     

    

 

		b.	Incremental Fee Letter. The Additional Commitment Lenders shall have received a copy of
the Incremental Fee Letter duly executed by the Borrower and the other parties thereto.

 

		c.	Amendment to Security Agreement. The Agent shall have received a copy of that certain Amendment
to Security Agreement, dated as of the date hereof, duly executed by the Loan Parties and the Agent (“Security Agreement
Amendment”).

 

		d.	[Reserved].  

 

		e.	[Reserved].

 

		f.	First Lien Credit Agreement Documents;
Funding. (i) The Agent shall have received a duly executed copy of that certain Limited Consent and Waiver relating to the
Second Amended and Restated First Lien Credit Agreement, dated as of September 11, 2015, by and among, the Loan Parties, the First
Lien Agent and the required lenders under the First Lien Credit Agreement, which shall be in form and substance reasonably satisfactory
to the Required Lenders and (ii) the First Lien Agent shall have funded, or substantially simultaneously with the funding of the
Additional Term Loan hereunder shall fund, a revolving loan under the First Lien Credit Agreement in an amount equal to $18,000,000.

 

		g.	Borrower’s Closing Certificate. The Agent shall have received a duly executed copy
of a certificate which, among other things, (i) shall contain (A) certifications of the type described in Section 2.14(e)(i) of
the Credit Agreement, (B) a certification in respect of the closing conditions set forth in clauses (f), (k), (l) and (m) of this
Section 14 shall have been met or satisfied as of the First Amendment Effective Date and (C) a certification that after giving
effect to the Joe’s Jeans Acquisition and the transactions contemplated hereunder, the Loan Parties and their subsidiaries
on a consolidated basis are Solvent and (ii) shall attach a certified copy of the fully executed Joe’s Jeans Acquisition
Agreement (and all schedules, exhibits and annexes attached thereto) and any permitted amendment or supplement thereto, executed
by the parties thereto, which certificate shall be in form and substance reasonably satisfactory to the Required Lenders and the
Additional Commitment Lenders.

 

		h.	Organization Documents. The Agent shall have received (i) customary bring-down certifications
that none of the certificates of resolution or other action, incumbency certificates and Organization Documents for any Loan Party
delivered to the Agent on April 8, 2015 (the “Delivery Date”), pursuant to Section 4.01(a)(iii) and (iv) of
the Credit Agreement, has changed since the Delivery Date, and such certificates or Organizational Documents are in full force
and effect or, to the extent such certificates or Organizational Documents
were amended, restated, supplemented or modified, such amendments, restatements, supplements or modifications, as the case may
be and (ii) certificates to evidence that each Loan Party (other
than Bella Rose, LLC and William Rast Licensing, LLC (collectively, the “Specified California Subsidiaries”))
is in good standing in its jurisdiction of organization or formation.

 

		i.	Opinion. The Agent shall have received an opinion of Gibson, Dunn & Crutcher LLP, counsel
to the Loan Parties, addressed to the Agent and each Lender, as to such customary matters concerning the Loan Parties (other than
Heeling Holding Corporation, Heeling Management Corp. and Heeling Sports Limited and, with respect to good standing opinions, the
Specified California Subsidiaries), this Agreement and the other Loan Documents as the GSO Entities may reasonably request, in
form and substance reasonably satisfactory to the Required Lenders and the Additional Commitment Lenders.

 

    	 	5	 

     

    

 

		j.	Default. Immediately before and after giving effect to this Agreement, no Default or Event
of Default shall exist.

 

		k.	Joe’s Jeans Acquisition. The Joe’s Jeans Acquisition shall have been or shall
be consummated substantially simultaneously with the funding of the Additional Term Loan in accordance with the terms of the Joe’s
Jeans Acquisition Agreement (the terms and conditions of which shall not be amended, modified or waived in a manner that would
be materially adverse to the Lenders without the consent of the Required Lenders (such consent not to be unreasonably withheld,
conditioned or delayed)). 

 

		l.	Purchase Agreement Representations; Specified Representations. Each of (i) the representations
made by or on behalf of or with respect to the Joe’s Jeans Acquired Brands in the Joe’s Jeans Acquisition Agreement
as are material to the interests of the Lenders, but only to the extent that the Borrower has (or an Affiliate of the Borrower
has) the right (after giving effect to any applicable cure provisions) to terminate the Borrower’s (or its Affiliate’s)
obligations under the Joe’s Jeans Acquisition Agreement or not consummate the Joe’s Jeans Acquisition as a result of
a breach of such representations in the Joe’s Jeans Acquisition Agreement (the “Purchase Agreement Representations”)
and (b) the representations and warranties contained in Sections 5.01 (except to the extent of the Specified California Subsidiaries’
failure to be in good standing as of the date hereof), 5.02(a), (b), (c) (solely as it relates to the Joe’s Jeans Acquisition
Agreement) and (d), 5.04 (except to the extent of the Specified California Subsidiaries’ failure to be in good standing as
of the date hereof), 5.14 (other than the representation and warranty contained in the second sentence of Section 5.14(a) of the
Credit Agreement), 5.19 (except to the extent of the Specified California Subsidiaries’ failure to be in good standing as
of the date hereof), 5.20 and 5.24 of the Credit Agreement (the “Specified Representations”) shall be accurate
in all material respects, except that any Purchase Agreement Representations or Specified Representations subject to “materiality”,
“Material Adverse Effect” or similar materiality qualifiers shall be true and correct in all respects.

 

		m.	Filing Fees and Taxes. The Borrower shall have duly paid all filing and recording fees and
taxes due and owing by the Borrower.

 

		n.	[Reserved].

 

		o.	Fees and Expenses. The Agent and the Arranger shall have received from the Borrower such
fees and expenses that are payable in connection with the consummation of the transactions contemplated hereby (including the fees
set forth in the Incremental Fee Letter), and King & Spalding LLP and James-Bates-Brannan-Groover-LLP shall have received from
the Borrowers payment of all outstanding fees and expenses previously incurred and all fees and expenses incurred in connection
with this Agreement.

 

		15.	Amendment, Modification and Waiver. This Agreement may not be amended, modified or waived
except by an instrument or instruments in writing signed and delivered on behalf of each of the parties hereto. On and after the
First Amendment Effective Date, all references to the Credit Agreement in each of the Loan Documents shall hereafter mean the Credit
Agreement as amended by this Amendment. Except as specifically amended hereby or otherwise agreed, this Amendment shall not operate
as a waiver of any right, power or remedy of Agent or Lenders, nor constitute a waiver of any provision of the Credit Agreement,
any other Loan Documents, or any other documents, instruments or agreements executed and/or delivered under or in connection therewith.

 

    	 	6	 

     

    

 

		16.	Agreements Concerning Apron Commitment Letter.  In connection with the First Amendment Effective
Date, each of FS Investment Corporation, Cobbs Creek LLC and FS Investment Corporation III, which are sub-advised by Affiliates
of the Arranger substantially simultaneously have entered into certain stock subscription agreements with the Borrower, each dated
as of the date hereof, to purchase the common stock of the Borrower in the aggregate amount of $10,000,000 subject to the terms
under such stock subscription agreements. It is understood and agreed by GSO Capital Partners LP and the Borrower that upon the
closing of such $10,000,000 investment under such stock subscription agreements, the “GSO Equity Investment” referenced
to and as defined in that certain commitment letter, dated June 22, 2015, by and between the Borrower and the Arranger (the “Apron
Commitment Letter”) shall deem to have been consummated for all purposes of the Apron Commitment Letter, and the applicable
condition precedent in respect of “GSO Equity Investment” set forth in the “Conditions to Closing” section
thereof shall deem to have been satisfied.

 

		17.	Post-Closing Covenants. 

 

		a.	On or before the date that is 15 Business Days following the First Amendment Effective Date (which
period may be extended with the consent of the GSO Entities), the Agent shall have received customary lien searches for the Loan
Parties and the Joe’s Jeans Acquired Brands requested by the Arranger at least 10 days prior to the First Amendment Effective
Date pursuant to arrangements to be mutually agreed by the GSO Entities and Borrower.

 

		b.	On or before the date that is 15 Business Days following the First
Amendment Effective Date (which period may be extended with the consent of the GSO Entities), the Arranger (on behalf of the Lenders)
shall have received all documentation and other information requested in writing by the Arranger at least 5 business days prior
to the First Amendment Effective Date as being required by regulatory authorities under applicable “know your customer”
and anti-money laundering rules and regulations, including without limitation the PATRIOT Act pursuant to arrangements to be mutually
agreed by the GSO Entities and Borrower. 

 

		c.	On or before the date that is 30 days following the First Amendment Effective Date (which period
may be extended with the consent of the GSO Entities), the Borrower shall have paid the taxes owed by the Specified
California Subsidiaries(in amounts approximately equal to $500 in the aggregate), and the Agent shall have received certification
from the State of California that each of the Specified California Subsidiaries
is in good standing in such State, pursuant to arrangements to be mutually agreed by the GSO Entities and Borrower.

 

The failure to perform any of the covenants
in accordance with the terms thereof in this Section 17 shall constitute an Event of Default under Section 8.01(b)(i) of the Credit
Agreement.

 

		18.	Entire Agreement. This Agreement, the Credit Agreement
and the other Loan Documents constitute the entire agreement among the parties with respect to the subject matter hereof and thereof
and supersede all other prior agreements and understandings, both written and verbal, among the parties or any of them with respect
to the subject matter hereof.

 

    	 	7	 

     

    

 

		19.	GOVERNING LAW. THIS AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED AND ENFORCED IN ACCORDANCE
WITH THE LAW OF THE STATE OF NEW YORK.

 

		20	Successors and Assigns. This Agreement shall be binding upon and inure to the benefit of
the parties hereto and their respective successors and assigns.

 

		21.	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 Credit Agreement are hereby
incorporated by reference, mutatis mutandis, including as if this Agreement was the “Agreement” referred
to therein and each of the parties hereto was a party thereto.

 

		22.	Severability. Any term or provision of this Agreement which is invalid or unenforceable
in any jurisdiction shall, as to that jurisdiction, be ineffective to the extent of such invalidity or unenforceability without
rendering invalid or unenforceable the remaining terms and provisions of this Agreement or affecting the validity or enforceability
of any of the terms or provisions of this Agreement in any other jurisdiction. If any provision of this Agreement is so broad as
to be unenforceable, the provision shall be interpreted to be only so broad as would be enforceable.

 

		23.	No Actions, Claims, Etc. As of the First Amendment Effective
Date, each of the Loan Parties hereby acknowledges and confirms that it has no knowledge of any actions, causes of action, claims,
demands, damages and liabilities of whatever kind or nature, in law or in equity, against the Lender or the Lenders’ respective
officers, employees, representatives, agents, counsel or directors arising from any action by such Persons, or failure of such
Persons to act under the Credit Agreement or the other Loan Documents on or prior to the date hereof.

 

		24.	Counterparts; Telecopy. This Agreement (a) may be executed in two or more counterparts,
each of which shall constitute an original but all of which when taken together shall constitute one contract, and (b) may, upon
execution, be delivered by facsimile or electronic mail, which shall be deemed for all purposes to be an original signature.

 

		25.	Reaffirmation of Obligations. Each of the Loan Parties hereby (a) acknowledges that all
Obligations in respect of the Credit Agreement constitute valid and existing Obligations under the Credit Agreement (as amended
hereby) (b) acknowledges that all “Guaranteed Obligations” (as defined in the Facility Guaranty) constitute valid and
existing Guaranteed Obligations of the Guarantors under the Facility Guaranty and (c) confirms that (i) the Security Documents
to which it is a party and (ii) its respective pledges and grants of security interests or other similar rights or obligations,
as applicable, under the Security Documents to which it is a party, remain in full force and effect notwithstanding the effectiveness
of the Credit Agreement (as amended hereby). Without limiting the generality of the foregoing, each of the Loan Parties further
agrees (A) that any reference to “Obligations” or “Secured Obligations” or any similar term contained in
the Security Documents to which it is a party shall include, without limitation, the “Obligations” as such term is
defined in the Credit Agreement (as amended hereby) and the “Guaranteed Obligations” (as defined in the Facility Guaranty)
and (B) that the related pledges and grants of security contained in the Security Documents to which it is a party shall include
and extend to such Obligations and Guaranteed Obligations, as applicable.

 

		26.	Loan Documents. Each of this Agreement, the Security Agreement Amendment and the Incremental
Fee Letter shall constitute a Loan Document.

 

    	 	8	 

     

    

 

		27.	Agent Authorization. The Agent is hereby authorized and directed by the Lenders to execute
and deliver this Agreement and any additional Loan Documents entered into in connection with the subject matter of this Agreement
(including joinder agreements and collateral documents required in connection with the assets acquired in the Joe’s Jeans
Acquisition and any entities joined as a Loan Party in connection therewith), in its capacity as Agent, and, by its execution below,
each of the undersigned Lenders and Additional Commitment Lenders agrees to be bound by the terms and conditions of this Agreement
and such other Loan Documents. The Agent shall have all of the benefits, indemnities, powers, privileges, protections and rights
contained in the Loan Agreement (including, for the avoidance of any doubt, Article IX of the Credit Agreement) in connection with
acting in its capacity as Agent hereunder.

 

[Remainder of page intentionally
left blank]

 

    	 	9	 

     

    

 

IN WITNESS WHEREOF,
each of the undersigned has caused its duly authorized officer to execute and deliver this Agreement as of the date first above
written.

 

	ADDITIONAL COMMITMENT LENDERS AND REQUIRED LENDERS:	LOCUST STREET FUNDING LLC
	 	By:	FS Investment Corporation, as Sole
        Member
	 	By:	GSO / Blackstone Debt Funds
Management LLC, as Sub-Adviser
	 	 	 
	 	 	 
	 	DARBY CREEK LLC
	 	By:	FS Investment Corporation II, as Sole
        Member
	 	By:	GSO / Blackstone Debt Funds
Management LLC, as Sub-Adviser
	 	 	 
	 	 	 
	 	GREEN CREEK LLC
	 	By:	FS Investment Corporation II, as Sole
        Member
	 	By:	GSO / Blackstone Debt Funds
Management LLC, as Sub-Adviser
	 	 	 
	 	 	 
	 	LEHIGH RIVER LLC
	 	By:	FS Investment Corporation II, as Sole
        Member
	 	By:	GSO / Blackstone Debt Funds
Management LLC, as Sub-Adviser
	 	 	 
	 	 	 
	 	JUNIATA RIVER LLC
	 	By:	FS Investment Corporation II, as Sole
        Member
	 	By:	GSO / Blackstone Debt Funds
Management LLC, as Sub-Adviser
	 	 	 
	 	 	 
	 	DUNLAP FUNDING LLC
	 	By:	FS Investment Corporation III, as Sole
        Member
	 	By:	GSO / Blackstone Debt Funds
Management LLC, as Sub-Adviser
	 	 	 
	 	 	 
	 	By:	/s/ Marisa Beeney
	 	Name:	Marisa Beeney
	 	Title:	Authorized Signatory

 

[Signature Page to Incremental Joinder Agreement]

 

    	 		 

     

    

 

	ADDITIONAL COMMITMENT LENDERS AND REQUIRED LENDERS:	 
	 	FS INVESTMENT CORPORATION III
	 	By:	GSO / Blackstone Debt Funds
Management LLC, as Sub-Adviser
	 	 	 
	 	 	 
	 	By:	/s/ Marisa Beeney
	 	Name:	Marisa Beeney
	 	Title:	Authorized Signatory
	 	 	 
	 	 	 
	 	Notice Information for New Lender:
	 	 
	 	GSO CAPITAL PARTNERS LP
	 	345 Park Avenue, 31st Floor
	 	New York, New York 10154
	 	Attention: Brad Colman
	 	Telephone: (212) 503-6917
	 	Email: Brad.Colman@gsocap.com
	 	 
	 	With copies to (such copies not to constitute notice):
	 	 	 
	 	FRANKLIN SQUARE CAPITAL PARTNERS
	 	201 Rouse Boulevard
	 	Philadelphia, PA 19112
	 	Attention: General Counsel
	 	Email: Stephen.sypherd@franklinsquare.com
	 	 
	 	and
	 	 
	 	King & Spalding LLP
	 	100 N. Tryon Street, Suite 3900
	 	Charlotte, North Carolina 28202
	 	Attention: W. Todd Holleman, Esq.
	 	Telephone: (704) 503-2567
	 	Facsimile: (704) 503-2622
	 	Email: tholleman@kslaw.com

 

 

[Signature Page to Incremental Joinder Agreement]

 

    	 		 

     

    

 

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

 

 

 

[Signature Page to Incremental Joinder Agreement]

 

    	 		 

     

    

  

Acknowledged by:

 

WILMINGTON
TRUST, NATIONAL ASSOCIATION,

as Agent

 

By: /s/ Cora Holland-Koller

Name: Cora Holland-Koller

Title: Banking Officer

 

 

[Signature Page to Incremental Joinder Agreement]

 

    	 		 

     

    

 

  

Acknowledged and Agreed by:

 

Guarantors:

 

Sequential
Licensing, Inc.

 

 

 

By: /s/ Gary Klein

Name: Gary Klein

Title: Chief Financial Officer

 

BELLA ROSE, LLC

 

 

By: /s/ Gary Klein

Name: Gary Klein

Title: Chief Financial Officer

 

WILLIAM RAST SOURCING, LLC

 

 

By: /s/ Gary Klein

Name: Gary Klein

Title: Chief Financial Officer

 

WILLIAM RAST LICENSING, LLC

 

 

By: /s/ Gary Klein

Name: Gary Klein

Title: Chief Financial Officer

 

HEELYS, INC.

 

By: /s/ Gary Klein

Name: Gary Klein

Title: Chief Financial Officer

 

 

[Signature Page to Incremental Joinder Agreement]

 

    	 		 

     

    

  

HEELING MANAGEMENT CORP.

 

 

By: /s/ Gary Klein

Name: Gary Klein

Title: Chief Financial Officer

 

HEELING HOLDING CORPORATION

 

 

By: /s/ Gary Klein

Name: Gary Klein

Title: Chief Financial Officer

 

HEELING SPORTS LIMITED

 

 

By: /s/ Gary Klein

Name: Gary Klein

Title: Chief Financial Officer

 

B®AND MATTER, LLC

 

 

By: /s/ Gary Klein

Name: Gary Klein

Title: Chief Financial Officer

 

SBG
Revo Holdings, LLC

 

 

By: /s/ Gary Klein

Name: Gary Klein

Title: Chief Financial Officer

 

SBG
FM, LLC

 

 

By: /s/ Gary Klein

Name: Gary Klein

Title: Chief Financial Officer

 

 

[Signature Page to Incremental Joinder Agreement]

 

    	 		 

     

    

 

SBG
UNIVERSE BRANDS, LLC

 

 

By: /s/ Gary Klein

Name: Gary Klein

Title: Chief Financial Officer

 

Galaxy
Brands LLC

 

 

By: /s/ Gary Klein

Name: Gary Klein

Title: Chief Financial Officer

 

The
Basketball Marketing Company, Inc. 

 

 

By: /s/ Gary Klein

Name: Gary Klein

Title: Chief Financial Officer

 

American
Sporting Goods Corporation

 

 

By: /s/ Gary Klein

Name: Gary Klein

Title: Chief Financial Officer

 

LNT
Brands LLC

 

 

By: /s/ Gary Klein

Name: Gary Klein

Title: Chief Financial Officer

 

 

joe’s
holdings llc

 

 

By: /s/ Gary Klein

Name: Gary Klein

Title: Chief Financial Officer

 

 

[Signature Page to Incremental Joinder Agreement]

 

    	 		 

     

    

  

Acknowledged and Agreed by (solely with respect to Section
16 hereof):

 

GSO
CAPITAL PARTNERS LP

 

By: /s/ Marisa Beeney

Name: Marisa Beeney

Title: Authorized Signatory

 

 

 

 

[Signature Page to Incremental Joinder Agreement]

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00251-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00251-of-00352.parquet"}]]