Document:

Exhibit 10.1

 

EXECUTION VERSION

 

Michaels
Stores, Inc.

 

$375,000,000 4.750% Senior Secured Notes
due 2027

 

PURCHASE AGREEMENT

 

September 17, 2020

 

J.P. Morgan Securities LLC

       As Representative of the

Initial Purchasers listed

in Schedule I hereto

383 Madison Avenue

New York, New York 10179

 

Ladies and Gentlemen:

 

Michaels Stores, Inc., a Delaware corporation
(the “Issuer”), will issue and sell to the several parties named in Schedule I hereto (each an “Initial
Purchaser” and, together, the “Initial Purchasers”) $375,000,000 aggregate principal amount of its
4.750% Senior Secured Notes due 2027 (the “Securities”). The Securities will be issued by the Issuer pursuant
to an indenture, to be dated as of October 1, 2020 (the “Indenture”), among the Issuer, Michaels Funding, Inc.
(“Holdings”), the other Guarantors (as defined herein), U.S. Bank National Association, as trustee (the “Trustee”)
and collateral agent (the “Collateral Agent”). The Securities will be guaranteed (the “Guarantees”)
on a senior secured basis by Holdings and each of the guarantors listed on Annex A-1 hereto (together, the “Guarantors”).
Certain other terms used herein are defined in Section 17 hereof.

 

The sale of the Securities to the Initial
Purchasers will be made without registration of the Securities under the Act in reliance upon exemptions from the registration
requirements of the Act.

 

In connection with the sale of the Securities,
the Issuer has prepared a preliminary offering memorandum, dated September 17, 2020 (the “Preliminary Memorandum”)
setting forth or including a description of the terms of the Securities and the Guarantees, the terms of the offering of the Securities
and certain information concerning the Issuer and the Guarantors. As used herein, “Pricing Disclosure Package”
shall mean the Preliminary Memorandum, as supplemented or amended by any supplement to the Preliminary Memorandum listed on Annex
B hereto in the most recent form that has been prepared and delivered by the Issuer to the Initial Purchasers in connection
with their solicitation of offers to purchase Securities prior to the time when sales of the Securities were first made (the “Time
of Sale”). Promptly after the date hereof and in any event no later than the second Business Day following the date hereof,
the Issuer will prepare and deliver to each Initial Purchaser a final offering memorandum (the “Final Memorandum”),
which will consist of the Preliminary Memorandum with such changes therein as are required to reflect the information contained
in the amendments or supplements listed on Annex B hereto. Any reference herein to the Preliminary Memorandum, the Pricing
Disclosure Package or the Final Memorandum shall be deemed to refer to and include all documents filed with the Commission pursuant
to Section 13(a), 13(c) or 15(d) of the Exchange Act on or prior to the date of such document and incorporated by reference therein,
and any reference to the Preliminary Memorandum, the Pricing Disclosure Package or the Final Memorandum, as the case may be, as
amended or supplemented, as of any specified date, shall be deemed to include any documents filed with the Commission pursuant
to Section 13(a), 13(c) or 15(d) of the Exchange Act after the date of the Preliminary Memorandum or the Final Memorandum, as the
case may be, and prior to such specified date (such documents filed with the Commission, the “Incorporated Documents”).
The Issuer hereby confirms that it has authorized the use of the Pricing Disclosure Package, Final Memorandum and the Recorded
Road Show (defined below) in connection with the offer and sale of the Securities by the Initial Purchasers.

 

    

     

    

 

The Securities are being issued to repay,
together with the proceeds of other indebtedness, including new term loans, the Issuer’s outstanding term loan indebtedness
(the “Outstanding Term Loans”), pursuant to the Amended and Restated Credit Agreement, dated as of January 28,
2013, as amended, supplemented and/or otherwise modified through the date hereof, including pursuant to the Fourth Amendment to
Amended and Restated Credit Agreement, to be dated as of the Closing Date (as defined below) (the “Term Loan Credit Agreement”).
The issuance of the Securities, the repayment of the Outstanding Term Loans and the other related transactions described herein
and in the Pricing Disclosure Package are collectively referred to as the “Transactions.”

 

The Securities and the Guarantees will be
secured by (a) a first-priority lien, subject to Permitted Liens (as defined below), on substantially all of the tangible and intangible
assets (other than ABL Priority Collateral (as defined in the Pricing Disclosure Package)) of the Issuer and the Guarantors, now
owned or hereafter acquired by the Issuer and any Guarantor, subject to certain exceptions as described in the Indenture and the
Collateral Documents (as defined below) (the “First Priority Collateral”) and (b) a second-priority lien, subject
to Permitted Liens, in the ABL Priority Collateral, subject to certain exceptions as described in the Indenture and the Collateral
Documents (together with the First Priority Collateral, the “Collateral”) that secures the Issuer’s ABL
revolving credit facility pursuant to the Third Amended and Restated Credit Agreement, dated as of May 27, 2016, as amended, supplemented
and/or otherwise modified through the date hereof (the “Revolving Credit Agreement”) on a first-priority basis.
The Collateral shall be described in: (a) with respect to personal property that constitutes Collateral, the Notes Security Agreement
to be dated as of the Closing Date and entered into by the Issuer and the Guarantors (the “Security Agreement”)
and (b) with respect to the grants of security interests in registrations and/or applications for trademarks, patents and copyrights
(and exclusive licenses in any of the foregoing) constituting Collateral, in either the Security Agreement or, respectively, in
the Trademark Security Agreement, the Patent Security Agreement and the Copyright Security Agreement, each to be dated as of the
Closing Date and entered into by each of the Issuer and the Guarantors, as provided therein (the “Trademark Security Agreement,”
the “Patent Security Agreement” and the “Copyright Security Agreement,” respectively, and,
collectively, the “Intellectual Property Security Agreements”), each to be delivered to the Trustee, granting
a security interest in the Collateral, subject to Permitted Liens, to the Collateral Agent for its benefit and the benefit of the
Trustee and each holder of the Securities and the successors and assigns of the foregoing. The term “Collateral Documents,”
as used herein, shall mean the Security Agreement and the Intellectual Property Security Agreements. The rights of the holders
of the Securities with respect to the Collateral shall be further governed by (i) the intercreditor agreement to be dated as of
the Closing Date (the “Pari Passu Intercreditor Agreement”), among the Issuer, the Guarantors, the Trustee,
the Collateral Agent, the administrative agent for the lenders under the Term Loan Credit Agreement and the collateral agent for
the lenders under the Term Loan Credit Agreement (the “Term Loan Collateral Agent”), and (ii) the Amended and
Restated Intercreditor Agreement, to be dated as of the Closing Date (as amended and supplemented to date (including pursuant to
the Joinder Agreement, to be dated as of the Closing Date (the “ABL Intercreditor Joinder”), by and among the
Collateral Agent, the Term Loan Collateral Agent and the ABL Collateral Agent (as defined below)), the “ABL Intercreditor
Agreement”), among the Term Loan Collateral Agent, the collateral agent for the lenders under the Revolving Credit Agreement
(the “ABL Collateral Agent”) and the Collateral Agent. The Pari Passu Intercreditor Agreement and the ABL Intercreditor
Agreement are together referred to as the “Intercreditor Agreements.”

 

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1.         Representations
and Warranties. The Issuer and the Guarantors jointly and severally represent and warrant to each Initial Purchaser as follows
as of the date hereof and as of the Closing Date (references in this Section 1 to the “Offering Memorandum” are to
(x) the Pricing Disclosure Package in the case of representations and warranties made as of the date hereof and (y) both the Pricing
Disclosure Package and the Final Memorandum in the case of representations and warranties made as of the Closing Date):

 

(a)         The
Preliminary Memorandum, at the date thereof, did not contain any untrue statement of a material fact or omit to state any material
fact necessary to make the statements therein, in the light of the circumstances under which they were made, not misleading. At
the Time of Sale, the Pricing Disclosure Package does not, and on the Closing Date will not, and the Final Memorandum as of its
date and on the Closing Date will not, contain any untrue statement of a material fact or omit to state any material fact necessary
to make the statements therein, in the light of the circumstances under which they were made, not misleading; provided,
however, that the Issuer and the Guarantors make no representation or warranty as to the information contained in or omitted
from the Offering Memorandum, in reliance upon and in conformity with the Initial Purchaser Information (as defined below). The
Issuer has not distributed or referred to and will not distribute or refer to any written communication (as defined in Rule 405
of the Act) other than the Pricing Disclosure Package, the Final Memorandum and the investor presentation made orally to investors
and simultaneously recorded on September 17, 2020 and the corresponding slide deck (the “Recorded Road Show”).
The Recorded Road Show, when taken together with the Pricing Disclosure Package, as of the Time of Sale did not, and at the Closing
Date will not, contain any untrue statement of a material fact or omit 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; provided, however,
that the Issuer and the Guarantors make no representation or warranty as to the information contained in or omitted from the Recorded
Road Show, in reliance upon and in conformity with the Initial Purchaser Information.

 

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(b)       The
documents incorporated by reference in the Preliminary Memorandum, the Pricing Disclosure Package and the Final Memorandum, when
they were filed with the Commission, conformed in all material respects to 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 to make the statements
therein, in the light of the circumstances under which they were made, not misleading; and any further documents so filed and incorporated
by reference in the Preliminary Memorandum, the Pricing Disclosure Package or the Final Memorandum, when such documents are filed
with the Commission, will conform in all material respects to the requirements of the Exchange Act and will not contain any untrue
statement of a material fact or omit to state a material fact necessary to make the statements therein, in the light of the circumstances
under which they were made, not misleading.

 

(c)         Assuming
the accuracy of the representations and warranties of the Initial Purchasers contained in Section 4 and their compliance with the
agreements set forth therein, none of Holdings, the Issuer or any of its subsidiaries, nor any of their respective Affiliates,
or any person acting on their behalf has, directly or indirectly, made offers or sales of any security, or solicited offers to
buy, any security under circumstances that would require the registration of the Securities under the Act.

 

(d)          Assuming
the accuracy of the representations and warranties of the Initial Purchasers contained in Section 4 and their compliance with the
agreements set forth therein, none of Holdings, the Issuer or any of its subsidiaries or any of their respective Affiliates, or
any person acting on their behalf has: (i) engaged in any form of general solicitation or general advertising (within the meaning
of Regulation D) in connection with any offer or sale of the Securities or (ii) engaged in any directed selling efforts (within
the meaning of Regulation S) with respect to the Securities; and Holdings, the Issuer and each of its subsidiaries and each of
their respective Affiliates and each person acting on their behalf have complied with the offering restrictions requirement of
Regulation S. Any sale of the Securities by the Issuer pursuant to Regulation S is not part of a plan or scheme to evade the
registration provisions of the Act.

 

(e)           The
Securities satisfy the eligibility requirements of Rule 144A(d)(3) under the Act.

 

(f)            Assuming
the accuracy of the representations and warranties of the Initial Purchasers contained in Section 4 and their compliance with the
agreements set forth therein, no registration under the Act of the Securities is required for the offer and sale of the Securities
to the Initial Purchasers or by the Initial Purchasers to the initial purchasers therefrom, in each case in the manner contemplated
herein, in the Pricing Disclosure Package and in the Final Memorandum, and it is not necessary to qualify the Indenture under the
Trust Indenture Act. The Indenture, as of the Closing Date, will conform in all material respects to the requirements of an indenture
which is qualified under the Trust Indenture Act.

 

(g)            None
of the Issuer, the Guarantors or any of their respective subsidiaries is or, after giving effect to the offering and sale of the
Securities and the application of the proceeds thereof as described in the Offering Memorandum, will be required to register as
an “investment company” as defined in the Investment Company Act, without taking account of any exemption arising out
of the number of holders of the Issuer’s securities.

 

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(h)        None
of the Issuer, the Guarantors or any of their respective subsidiaries has paid or agreed to pay to any person any compensation
for soliciting another to purchase any Securities (except as contemplated in this Agreement).

 

(i)          None
of the Issuer, the Guarantors or any of their respective subsidiaries or any of their respective Affiliates has taken or will take,
directly or indirectly, any action designed to or that has constituted or that would reasonably be expected to cause or result,
under the Exchange Act or otherwise, in stabilization or manipulation of the price of any security of the Issuer or any of its
subsidiaries to facilitate the sale or resale of the Securities.

 

(j)           Holdings,
the Issuer and each of its subsidiaries have been duly organized and are validly existing and in good standing (or the equivalent
thereof with respect to the law of foreign countries, if applicable) under the laws of their respective jurisdictions of organization,
are duly qualified to do business and are in good standing (or the equivalent thereof with respect to the law of foreign countries,
if applicable) in each jurisdiction in which their respective ownership or lease of property or the conduct of their respective
businesses requires such qualification, and have all power and authority necessary to own or hold their respective properties and
to conduct the businesses in which they are engaged, except where the failure to be so qualified or in good standing (or the equivalent
thereof with respect to the law of foreign countries, if applicable) or have such power or authority would not, individually or
in the aggregate, reasonably be expected to have a material adverse effect on the business, properties, management, financial position,
results of operations or prospects of Holdings, the Issuer and its subsidiaries taken as a whole or on the performance by the Issuer
and the Guarantors taken as a whole of their obligations under this Agreement, the Indenture, the Securities, the Guarantees and
the Collateral Documents (a “Material Adverse Effect”).

 

(k)          As
of the date hereof, the Issuer has no subsidiaries other than the entities listed on Annex A-2 hereto.

 

(l)           As
of August 1, 2020, on a pro forma basis, after giving effect to the consummation of the Transactions, the Issuer and its
subsidiaries would have had the issued and outstanding capitalization as set forth in the Offering Memorandum under the heading
 “Capitalization,” and all the outstanding membership interests or shares of capital stock, as applicable, of Holdings,
the Issuer and each of its subsidiaries have been duly authorized and validly issued, if applicable, are fully paid and nonassessable
and were not issued in violation of any preemptive or similar rights; and, except as otherwise set forth in the Offering Memorandum,
all outstanding shares of capital stock or membership interests of the subsidiaries are owned by the Issuer either directly or
indirectly free and clear of any security interest, claim, lien or encumbrance (other than security interests, claims, liens, encumbrances
and restrictions imposed in connection with the Issuer’s senior secured credit facilities or permitted thereunder and by
the Act and state securities or “blue sky” laws of certain jurisdictions).

 

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(m)        (i)
This Agreement has been duly authorized, executed and delivered by the Issuer and each Guarantor; (ii) each of the Indenture, the
Pari Passu Intercreditor Agreement and each of the Collateral Documents has been duly authorized by the Issuer and each Guarantor,
to the extent a party thereto, and, on the Closing Date and prior to the issuance of the Securities, each of the Indenture, the
Pari Passu Intercreditor Agreement and each of the Collateral Documents will have been duly executed and delivered by the Issuer
and each Guarantor, to the extent a party thereto, and, assuming due authorization, execution and delivery thereof by the Collateral
Agent, the Trustee, the Term Loan Collateral Agent and the ABL Collateral Agent, as applicable, the Indenture, the Intercreditor
Agreements and each of the Collateral Documents will constitute a legally valid and binding instrument enforceable against the
Issuer and each Guarantor in accordance with its terms (in each case subject, as to the enforcement of remedies, to the effects
of (x) bankruptcy, reorganization, insolvency, fraudulent conveyance, moratorium or other laws affecting creditors’ rights
generally from time to time in effect, (y) general principles of equity (whether considered in a proceeding in equity or at law)
and (z) an implied covenant of good faith and fair dealing (collectively, the “Enforceability Limitations”));
(iii) the Securities have been duly authorized by the Issuer and, when executed and authenticated by the Trustee in accordance
with the provisions of the Indenture and delivered to and paid for by the Initial Purchasers, will have been duly executed and
issued by the Issuer and will constitute the legal, valid and binding obligations of the Issuer, entitled to the benefits of the
Indenture (subject to the Enforceability Limitations); and (iv) the Guarantees have been duly authorized by the Guarantors and,
when the Securities have been duly executed and issued, will constitute the legal, valid and binding obligations of each of the
Guarantors, enforceable against each of the Guarantors in accordance with their terms and entitled to the benefits of the Indenture
(subject to the Enforceability Limitations).

 

(n)          (i)
Upon execution and delivery, the Security Agreement and each of the Intellectual Property Security Agreements will be effective
to grant a legal, valid and enforceable security interest in all of the Issuer’s and the Guarantors’, to the extent
a party thereto, right, title and interest in the Collateral; and (ii) upon due and timely filing and/or recording of the financing
statements and Intellectual Property Security Agreements, as applicable, with respect to the Collateral described in the Security
Agreement and the Intellectual Property Security Agreements (the “Personal Property Collateral”), as applicable,
the security interests granted thereby will constitute valid, perfected first-priority liens and security interests in the Personal
Property Collateral constituting First Priority Collateral and valid, perfected second-priority liens and security interests in
the Personal Property Collateral constituting ABL Priority Collateral, to the extent such security interests can be perfected by
the filing and/or recording, as applicable, of financing statements and Intellectual Property Security Agreements for the benefit
of the Collateral Agent, the Trustee and the holders of the Securities, and such security interests will be enforceable in accordance
with the terms contained therein against all creditors of any grantor or mortgagor and subject only to liens expressly permitted
to be incurred or exist on the Collateral under the Indenture, including liens with respect to the Revolving Credit Agreement and
the Term Loan Credit Agreement (“Permitted Liens”).

 

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(o)          Since
the date of the most recent financial statements of The Michaels Companies, Inc. (the “Parent”) included or
incorporated by reference in the Offering Memorandum, (i) there has not been any change in the capital stock or other equity interests
of the Issuer or any of the Guarantors (other than the issuance of shares of common stock upon exercise of stock options, restricted
stock awards and warrants described as outstanding in, and the grant of options, restricted stock and other awards under existing
equity incentive plans described in, the Offering Memorandum), short-term debt or long-term debt of Holdings, the Issuer or any
of its subsidiaries that, individually or in the aggregate, is material to Holdings, the Issuer and its subsidiaries taken as a
whole, or any dividend or distribution of any kind declared, set aside for payment, paid or made by Holdings or the Issuer on any
class of capital stock or other equity interest, or any material adverse change, or any development involving a prospective material
adverse change, in or affecting the business, properties, management, financial position or results of operations of Holdings,
the Issuer and its subsidiaries taken as a whole; (ii) none of Holdings, the Issuer or any of its subsidiaries has entered into
any transaction or agreement that is material to Holdings, the Issuer and its subsidiaries taken as a whole or incurred any liability
or obligation, direct or contingent, that is material to Holdings, the Issuer and its subsidiaries taken as a whole; and (iii)
none of Holdings, the Issuer or any of its subsidiaries has sustained any loss or interference with its business that is material
to Holdings, the Issuer and its subsidiaries taken as a whole and that is either 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 court or arbitrator
or governmental or regulatory authority, except in each case under clauses (i) through (iii) above as otherwise disclosed or incorporated
by reference in the Offering Memorandum.

 

(p)           No
relationship, direct or indirect, exists between or among Holdings, the Issuer or any of its subsidiaries, on the one hand, and
the directors, officers, stockholders or other affiliates of Holdings, the Issuer or any of its subsidiaries, on the other, that
is required by the Exchange Act to be described in the Incorporated Documents and that is not so described in the Offering Memorandum.

 

(q)           The
term “Transaction Documents” refers to this Agreement, the Securities, the Indenture (including the Guarantees),
each of the Collateral Documents and the Intercreditor Agreements. Each of the Transaction Documents conforms in all material respects
to the description thereof in the Offering Memorandum.

 

(r)             No
consent, approval, authorization, order, registration or qualification of or with any court or arbitrator or governmental or regulatory
authority is required for the execution, delivery and performance by the Issuer and the Guarantors of the Transaction Documents
and the consummation by the Issuer and the Guarantors of the transactions contemplated thereby (including, without limitation,
the issuance of the Securities and the Guarantees), except such (i) as may be required under provincial securities or blue sky
laws of any jurisdiction in which the Securities are offered and sold or (ii) as shall have been obtained or made prior to the
Closing Date.

 

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(s)           None
of the execution and delivery of the Transaction Documents, the issuance and sale of the Securities, the issuance of the Guarantees,
the grant and perfection of liens and security interests in the Collateral pursuant to the Security Agreement and the Intellectual
Property Security Agreements (including, but not limited to, the filing of any applicable financing statements pursuant to the
Security Agreement or the filing or recording of the Intellectual Property Security Agreements) or the consummation of any other
of the transactions herein or therein contemplated, or the fulfillment of the terms hereof or thereof, will (i) conflict with or
result in a breach or violation of any of the terms or provisions of, or constitute a default under, or result in the creation
or imposition of any lien, charge or encumbrance (other than any lien, charge or encumbrance created or imposed pursuant to the
Collateral Documents or the collateral documents relating to the Revolving Credit Agreement or the Term Loan Credit Agreement)
upon any property or assets of the Issuer or any of the Guarantors pursuant to, any indenture, mortgage, deed of trust, loan agreement
or other agreement or instrument to which Holdings, the Issuer or any of its subsidiaries is a party or by which Holdings, the
Issuer or any of its subsidiaries is bound or to which any of the property or assets of Holdings, the Issuer or any of its subsidiaries
is subject, (ii) result in any violation of the provisions of the charter or by-laws or similar organizational documents of Holdings,
the Issuer or any of its subsidiaries or (iii) result in the violation of any law or statute or any judgment, order, rule or regulation
of any court or arbitrator or governmental or regulatory authority having jurisdiction over Holdings, the Issuer or any of its
subsidiaries, except, in the case of clauses (i) and (iii) above, for any such conflict, breach, violation or default that would
not, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect.

 

(t)        
    The consolidated historical financial statements (including the related notes thereto) of the Parent and
its consolidated subsidiaries included or incorporated by reference in the Offering Memorandum comply in all material
respects with the applicable requirements of the Exchange Act, present fairly in all material respects the financial position
of the Parent and its consolidated subsidiaries as of the dates indicated and the results of their operations and the changes
in their cash flows for the periods specified; such financial statements have been prepared in conformity with generally
accepted accounting principles in the United States (“GAAP”) applied on a consistent basis throughout the
periods covered thereby, and any supporting schedules included or incorporated by reference in the Offering Memorandum
present fairly in all material respects the information required to be stated therein; the selected historical financial data
set forth under the caption “Summary—Summary Consolidated Financial and Operating Data” in the Offering
Memorandum fairly present in all material respects, on the basis stated in the Offering Memorandum, the information included
therein; and the other financial information included or incorporated by reference in the Offering Memorandum has been
derived from the accounting records of the Parent and its consolidated subsidiaries and presents fairly in all material
respects the information shown thereby. The interactive data in eXtensible Business Reporting Language incorporated by
reference in the Offering Memorandum fairly presents the information called for in all material respects and has been
prepared in accordance with the Commission’s rules and guidelines applicable thereto.

 

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(u)          Except
as described, or incorporated by reference, in the Offering Memorandum, there are no legal, governmental or regulatory investigations,
actions, suits or proceedings pending to which Holdings, the Issuer or any of its subsidiaries is or may be a party or to which
any property of Holdings, the Issuer or any of its subsidiaries is or may be the subject that, individually or in the aggregate,
if determined adversely to Holdings, the Issuer or any of its subsidiaries, would reasonably be expected to have a Material Adverse
Effect; to the knowledge of the Issuer and Guarantors, no such investigations, actions, suits or proceedings are threatened or
contemplated by any governmental or regulatory authority or threatened by others; and (i) there are no current or pending legal,
governmental or regulatory actions, suits or proceedings that are required under the Exchange Act to be described in the Incorporated
Documents that are not so described in the Incorporated Documents and (ii) there are no statutes, regulations or contracts or other
documents that are required under the Exchange Act to be filed as exhibits to the Incorporated Documents or described in the Incorporated
Documents that are not so filed as exhibits to the Incorporated Documents or described in the Incorporated Documents.

 

(v)           Holdings,
the Issuer and its subsidiaries have good and marketable title in fee simple (in the case of real property) to, or have valid rights
to lease or otherwise use, all items of real property and have good title or a valid legal right to lease or otherwise use all
items of real property and personal property that are material to the business of Holdings, the Issuer and its subsidiaries taken
as a whole, in each case free and clear of all liens, encumbrances, claims and defects and imperfections of title (other than Permitted
Liens) except those that (i) do not materially interfere with the use made and proposed to be made of such property by Holdings,
the Issuer and its subsidiaries, (ii) would not reasonably be expected, individually or in the aggregate, to have a Material Adverse
Effect or (iii) are imposed pursuant to the Collateral Documents or the collateral documents relating to the Revolving Credit Agreement
or the Term Loan Credit Agreement.

 

(w)           None
of Holdings, the Issuer or any of its subsidiaries is (i) in violation of its charter or by-laws or similar organizational documents;
(ii) in default, and no event has occurred that, with notice or lapse of time or both, would constitute such a default, in the
due performance or observance of any term, covenant or condition contained in any indenture, mortgage, deed of trust, loan agreement
or other agreement or instrument to which Holdings, the Issuer or any of its subsidiaries is a party or by which Holdings, the
Issuer or any of its subsidiaries is bound or to which any of the property or assets of Holdings, the Issuer or any of its subsidiaries
is subject; or (iii) in violation of any law or statute or any judgment, order, rule or regulation of any court or arbitrator or
governmental or regulatory authority, except, in the case of clauses (ii) and (iii) above, for any such default or violation that
would not, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect.

 

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(x)          Ernst
 & Young LLP, which has certified certain financial statements of the Parent and its consolidated subsidiaries, is an independent
registered public accounting firm with respect to the Parent and its consolidated subsidiaries within the applicable rules and
regulations adopted by the Commission and the Public Company Accounting Oversight Board (United States) and as required by the
Act.

 

(y)           Holdings,
the Issuer and its subsidiaries have paid all federal, state, local and foreign taxes required to be paid, and filed all tax returns
required to be filed, through the date hereof, except as would not, individually or in the aggregate, reasonably be expected to
have a Material Adverse Effect; and except as otherwise disclosed, or incorporated by reference, in the Offering Memorandum, there
is no material tax deficiency that has been, or would reasonably be expected to be, asserted against Holdings, the Issuer or any
of its subsidiaries or any of their respective properties or assets.

 

(z)            No
labor disturbance by or dispute with employees of the Issuer or any of its subsidiaries exists or, to the knowledge of the Issuer
and the Guarantors, is contemplated or threatened, and the Issuer and the Guarantors are not aware of any existing or imminent
labor disturbance by, or dispute with, the employees of any of its or its subsidiaries’ principal suppliers, contractors
or customers, except as would not, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect.

 

(aa)           Holdings, the Issuer and
its subsidiaries have insurance covering their respective properties, operations, personnel and businesses, which insurance is
in amounts and insures against such losses and risks as are customary for businesses such as those of Holdings, the Issuer and
its subsidiaries; and none of Holdings, the Issuer or any of its subsidiaries has (i) received notice from any insurer or agent
of such insurer that capital improvements or other expenditures are required or necessary to be made in order to continue such
insurance or (ii) any reason to believe that it will not be able to renew its existing insurance coverage as and when such coverage
expires or to obtain similar coverage at reasonable cost from similar insurers as may be necessary to continue its business.

 

(bb)            No subsidiary of the Issuer
or any Guarantor is currently prohibited and, after giving effect to the Transactions, no subsidiary of the Issuer or any Guarantor
will be prohibited, directly or indirectly, under any agreement or other instrument to which it is a party or is subject, from
paying any lawful dividends to the Issuer or any Guarantor or any other subsidiary (except as may be limited by applicable laws
of each subsidiary’s state of incorporation or jurisdiction or organization, or by limited liability company or similar laws),
from making any other lawful distribution on such subsidiary’s capital stock or similar ownership interests (except as may
be limited by applicable law), from repaying to the Issuer or any Guarantor or any other subsidiary any loans or advances to such
subsidiary from the Issuer or any Guarantor or any other subsidiary or from transferring any of such subsidiary’s properties
or assets to the Issuer or any Guarantor or any other subsidiary of the Issuer or any Guarantor, except as described in the Offering
Memorandum or provided pursuant to the Issuer’s senior secured credit facilities.

 

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(cc)     Holdings, the Issuer and
its subsidiaries possess all licenses, certificates, permits and other authorizations issued by, and have made all declarations
and filings with, the appropriate federal, state, local or foreign governmental or regulatory authorities that are necessary for
the ownership or lease of their respective properties or the conduct of their respective businesses as described, or incorporated
by reference, in the Offering Memorandum, except where the failure to possess or make the same would not, individually or in the
aggregate, reasonably be expected to have a Material Adverse Effect; and except as described, or incorporated by reference, in
the Offering Memorandum, none of Holdings, the Issuer or any of its subsidiaries has received notice of any revocation or modification
of any such license, certificate, permit or authorization.

 

(dd)    The Parent and its consolidated
subsidiaries maintain systems of “internal control over financial reporting” (as defined in Rule 13a-15(f) of the Exchange
Act) that comply with the requirements of the Exchange Act and that have been designed by, or under the supervision of, their respective
principal executive and principal financial officers, or persons performing similar functions, to provide reasonable assurance
regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance
with generally accepted accounting principles, including, but not limited to, 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 generally accepted
accounting principles and to maintain asset accountability; (iii) access to assets is permitted only in accordance with management’s
general or specific authorization; (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; and (v) the interactive data in eXtensible Business
Reporting Language incorporated by reference in the Offering Memorandum fairly presents the information called for in all material
respects and has been prepared in accordance with the Commission’s rules and guidelines applicable thereto. Based on the
Parent’s most recent evaluation of its internal controls over financial reporting pursuant to Rule 13a-15(c) of the Exchange
Act, except as disclosed, or incorporated by reference, in the Offering Memorandum, there are no material weaknesses in the Issuer’s
internal controls. The Parent’s auditors and the Audit Committee of the Board of Directors of the Parent have been advised
of: (i) all significant deficiencies and material weaknesses in the design or operation of internal controls over financial reporting
which have adversely affected or are reasonably likely to adversely affect the Parent’s ability to record, process, summarize
and report financial information; and (ii) any fraud, whether or not material, that involves management or other employees who
have a significant role in the Parent’s internal controls over financial reporting.

 

    	 	-11-	 

     

    

 

(ee)    (i) Holdings, the Issuer
and its subsidiaries (x) are in compliance with, and have not violated, any and all applicable federal, state, local and foreign,
laws, rules, regulations, decisions and orders relating to the protection of human health and safety, the environment or hazardous
or toxic substances or wastes, pollutants or contaminants (collectively, “Environmental Laws”); (y) have received
and are in compliance with all permits, licenses or other approvals required of them under applicable Environmental Laws to conduct
their respective businesses; and (z) have not received notice of any actual or potential liability for the investigation or remediation
of any disposal or release of hazardous or toxic substances or wastes, pollutants or contaminants at any location, and have no
knowledge of any circumstance, event or condition that would reasonably be expected to result in any such notice or liability,
and (ii) there are no costs or liabilities associated with Environmental Laws of or relating to Holdings, the Issuer or its subsidiaries,
except in the case of either (i) or (ii) above, for any such failure to comply with, or failure to receive required permits, licenses
or approvals, or cost or liability, as would not, individually or in the aggregate, reasonably be expected to have a Material Adverse
Effect; and (iii) except as described in the Offering Memorandum, (x) there are no proceedings that are pending, or that are known
to the Issuer to be contemplated, against Holdings, the Issuer or any of its subsidiaries under any Environmental Laws in which
a governmental entity is also a party, other than such proceedings regarding which it is reasonably believed no monetary sanctions
of $100,000 or more will be imposed, (y) Holdings, the Issuer and its subsidiaries are not aware of any issues regarding compliance
with Environmental Laws, or liabilities or other obligations under Environmental Laws or concerning hazardous or toxic substances
or wastes, pollutants or contaminants, that would reasonably be expected to have a material effect on the capital expenditures,
earnings or competitive position of Holdings, the Issuer and its subsidiaries, and (z) none of Holdings, the Issuer and its subsidiaries
anticipates material capital expenditures relating to any Environmental Laws.

 

(ff)     (i) Each employee benefit
plan, within the meaning of Section 3(3) of the Employee Retirement Income Security Act of 1974, as amended (“ERISA”),
for which the Issuer or any member of its “Controlled Group” (defined as any organization which is a member of a controlled
group of corporations within the meaning of Section 414 of the Code), would have any liability (each, a “Plan”)
has been maintained in compliance with its terms and the requirements of any applicable statutes, orders, rules and regulations,
including but not limited to ERISA and the Code; (ii) no prohibited transaction, within the meaning of Section 406 of ERISA or
Section 4975 of the Code, has occurred with respect to any Plan excluding transactions effected pursuant to a statutory or administrative
exemption; (iii) for each Plan that is subject to the funding rules of Section 412 of the Code or Section 302 of ERISA, the minimum
funding standard of Section 412 of the Code and Section 302 of ERISA, as applicable, has been satisfied (without taking into account
any waiver thereof or extension of any amortization period) and is reasonably expected to be satisfied in the future (without taking
into account any waiver thereof or extension of any amortization period); (iv) except as otherwise disclosed, or incorporated by
reference, in the Offering Memorandum, the fair market value of the assets of each Plan exceeds the present value of all benefits
accrued under such Plan (determined based on those assumptions used to fund such Plan); (v) no “reportable event” (within
the meaning of Section 4043(c) of ERISA) has occurred or is reasonably expected to occur; and (vi) neither the Issuer nor any member
of the Controlled Group has incurred, nor reasonably expects to incur, any liability under Title IV of ERISA (other than contributions
to the Plan or premiums to the PBGC, in the ordinary course and without default) in respect of a Plan (including a “multiemployer
plan,” within the meaning of Section 4001(a)(3) of ERISA), and except for where failure to comply with any of the clauses
(i) through (vi) of this paragraph would not, individually or in the aggregate, reasonably be expected to result in a Material
Adverse Effect.

 

    	 	-12-	 

     

    

 

(gg)   Holdings, the Issuer and
its subsidiaries own or possess the right to use all patents, patent applications, trademarks, service marks, trade names, domain
names, trade mark registrations, service mark registrations, copyrights, licenses and know-how (including trade secrets and other
unpatented and/or unpatentable proprietary or confidential information, systems or procedures) (collectively, “Intellectual
Property”) material to the operation of the business of Holdings, the Issuer and its subsidiaries, taken as a whole.
Except as disclosed, or incorporated by reference, in the Offering Memorandum, Holdings, the Issuer and its subsidiaries have not
received any notice of infringement or conflict with the asserted rights of others or are aware of any valid basis for same that
would, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect.

 

(hh)   Neither the issuance,
sale and delivery of the Securities and, when issued, the Guarantees, nor the application of the proceeds thereof by the Issuer
as described in the Offering Memorandum will violate Regulation T, U or X of the Board of Governors of the Federal Reserve
System, as the same is in effect on the Closing Date.

 

(ii)      To
the knowledge of the Issuer and the Guarantors, immediately after the consummation of the Transactions and the other transactions
contemplated by this Agreement, (i) the fair value and present fair saleable value of the assets of Holdings, the Issuer and its
subsidiaries taken as a whole on a going concern basis will exceed the sum of their stated liabilities and identified contingent
liabilities taken as a whole; and (ii) Holdings, the Issuer and its subsidiaries on a consolidated basis will not be (a) left
with unreasonably small capital with which to carry on their business as it is proposed to be conducted, (b) unable to pay
their debts (contingent or otherwise) as they mature or (c) otherwise insolvent.

 

(jj)      No forward-looking statement
(within the meaning of Section 27A of the Act and Section 21E of the Exchange Act) contained, or incorporated by reference, in
the Offering Memorandum has been made or reaffirmed without a reasonable basis or has been disclosed other than in good faith.
Nothing has come to the attention of the Issuer that has caused the Issuer to believe that the statistical and market-related data
included, or incorporated by reference, in the Offering Memorandum is not based on or derived from sources that are reliable and
accurate in all material respects.

 

(kk)    There are no stamp or
other issuance or transfer taxes or duties or other similar fees or charges imposed by any governmental authority required under
applicable law to be paid in connection with the execution and delivery of this Agreement or the Indenture, the issuance or sale
hereunder by the Issuer of the Securities, or the issuance by the Guarantors of the Guarantees.

 

    	 	-13-	 

     

    

 

(ll)      The Parent and its consolidated
subsidiaries maintain an effective system of “disclosure controls and procedures” (as defined in Rule 13a-15(e) of
the Exchange Act) that complies with the requirements of the Exchange Act and that has been designed to ensure that information
required to be disclosed by the Parent in reports that it files or submits under the Exchange Act is recorded, processed, summarized
and reported within the time periods specified in the Commission’s rules and forms, including controls and procedures designed
to ensure that such information is accumulated and communicated to the Parent’s management as appropriate to allow timely
decisions regarding required disclosure. The Parent and its consolidated subsidiaries have carried out evaluations of the effectiveness
of their disclosure controls and procedures as required by Rule 13a-15 of the Exchange Act.

 

(mm)  None of Holdings, the
Issuer or any of its subsidiaries, nor, to the knowledge of the Issuer and the Guarantors, any director, officer, employee, affiliate
or other person associated with or acting on behalf of Holdings, the Issuer or any of its subsidiaries has (i) used any corporate
funds for any unlawful contribution, gift, entertainment or other unlawful expense relating to political activity; (ii) made or
taken an act in furtherance of an offer, promise or authorization of any direct or indirect unlawful payment or benefit to any
foreign or domestic government 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; (iii) violated or is in violation of any provision of the Foreign Corrupt Practices
Act of 1977, as amended, or any applicable law or regulation implementing the OECD Convention on Combating Bribery of Foreign Public
Officials in International Business Transactions, or committed an offence under the Bribery Act 2010 of the United Kingdom, or
any other applicable anti-bribery or anti-corruption law; or (iv) made, offered, agreed, requested or taken an act in furtherance
of any unlawful bribe or other unlawful benefit, including, without limitation, any rebate, payoff, influence payment, kickback
or other unlawful payment or benefit. Holdings, the Issuer and its subsidiaries have instituted, maintain and enforce, 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.

 

(nn)    The operations of Holdings,
the Issuer and its subsidiaries 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, the applicable
money laundering statutes of all jurisdictions where Holdings, the Issuer or any of its subsidiaries conducts business, the rules
and regulations thereunder and any related or similar rules, regulations or guidelines, issued, administered or enforced by any
governmental agency (collectively, the “Anti-Money Laundering Laws”), and no action, suit or proceeding by or
before any court or governmental agency, authority or body or any arbitrator involving Holdings, the Issuer or any of its subsidiaries
with respect to the Anti-Money Laundering Laws is pending or, to the knowledge of the Issuer and the Guarantors, threatened.

 

    	 	-14-	 

     

    

 

(oo)    None
of Holdings, the Issuer or any of its subsidiaries, nor, to the knowledge of the Issuer and the Guarantors, any director, officer,
employee, agent, affiliate or other person associated with or acting on behalf of Holdings, the Issuer or any of its subsidiaries
is currently the subject or the target of any sanctions administered or enforced by the U.S. government (including, without limitation,
the Office of Foreign Assets Control of the U.S. Department of the Treasury or the U.S. Department of State and including, without
limitation, 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 Holdings, the Issuer, any of its subsidiaries located, organized or resident in a country or territory that is the subject
or target of Sanctions, including, without limitation, Crimea region, Cuba, Iran, North Korea and Syria (each, a “Sanctioned
Country”); and the Issuer will not directly or indirectly use the proceeds of the offering contemplated hereby, or lend,
contribute or otherwise make available such proceeds to any joint venture partner or other person or entity, that to its and the
Guarantors knowledge intends to use such proceeds, or to any subsidiary (i) to fund any activities of or business with any person,
or in any country or territory, that, at the time of such funding, is the subject of Sanctions or (ii) in any other manner that
will result in a violation by any person (including any person participating in the transaction, whether as initial purchaser,
advisor, investor or otherwise) of Sanctions. For the past five years, Holdings, the Issuer and its subsidiaries have not knowingly
engaged in and are not now knowingly engaged 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.

 

(pp)    Holdings, the Issuer and
its subsidiaries’ information technology assets and equipment, computers, systems, networks, hardware, software, websites,
applications, and databases (collectively, “IT Systems”) are adequate for, and operate and perform in all material
respects as required in connection with the operation of the business of Holdings, the Issuer and its subsidiaries as currently
conducted. Holdings, the Issuer and its subsidiaries have implemented and maintained commercially reasonable controls, policies,
procedures, and safeguards to maintain and protect their material confidential information and the integrity, continuous operation
and security of all material IT Systems and material confidential data, including any of their material confidential data maintained
by a third party (including all personally identifiable data (“Personal Data”)) used in connection with their
businesses, and, to the knowledge of the Issuer and the Guarantors, since June 21, 2016, there have been no breaches to the confidentiality
or integrity of Personal Data or unauthorized uses of or accesses to Personal Data, except for those that have been remedied without
material cost or liability or the duty to notify any other person, nor are any incidents under internal review or investigations
relating to the same. Holdings, the Issuer and its subsidiaries are presently in material compliance with all applicable laws or
statutes and all judgments, orders, rules and regulations of any court or arbitrator or governmental or regulatory authority, internal
policies and contractual obligations relating to the privacy and security of IT Systems and Personal Data and to the protection
of such IT Systems and Personal Data from unauthorized use, access, misappropriation or modification.

 

Any certificate signed by any officer of the
Issuer, the Guarantors or their respective subsidiaries and delivered to the Initial Purchasers or counsel for the Initial Purchasers
in connection with the offering of the Securities and, when issued, the Guarantees, shall be deemed a joint and several representation
and warranty by each of the Issuer, the Guarantors and their respective subsidiaries, as to matters covered thereby, to each Initial
Purchaser.

 

    	 	-15-	 

     

    

 

2.        Purchase
and Sale. Subject to the terms and conditions and in reliance upon the representations and warranties herein set forth, the
Issuer agrees to issue and sell to each Initial Purchaser, and each Initial Purchaser agrees, severally and not jointly, to purchase
from the Issuer, at a purchase price of 99.00% of the principal amount thereof, plus accrued interest, if any, from October 1,
2020 to the Closing Date, the aggregate principal amount of Securities set forth opposite such Initial Purchaser’s name in
Schedule I hereto.

 

3.        Delivery
and Payment. Delivery of and payment for the Securities shall be made at the offices of Simpson Thacher & Bartlett LLP,
425 Lexington Avenue, New York, New York 10017, at 10:00 A.M. New York City time on October 1, 2020 or at such time on
such later date not more than three Business Days after the foregoing date as the Initial Purchasers shall designate, which date
and time may be postponed by agreement between the Initial Purchasers and the Issuer or as provided in Section 9 hereof (such
date and time of delivery and payment for the Securities being herein called the “Closing Date”). Delivery of
the Securities shall be made to the Initial Purchasers for the respective accounts of the several Initial Purchasers against payment
by the several Initial Purchasers of the purchase price thereof to or upon the order of the Issuer by wire transfer payable in
same-day funds to the account specified by the Issuer. Delivery of the Securities shall be made through the facilities of The Depository
Trust Company unless the Initial Purchasers shall otherwise instruct.

 

4.        Offering
by Initial Purchasers.

 

(a)      Each
Initial Purchaser acknowledges that the Securities have not been and will not be registered under the Act and may not be offered
or sold within the United States or to, or for the account or benefit of, U.S. persons, except pursuant to an exemption from, or
in a transaction not subject to, the registration requirements of the Act.

 

(b)      Each
Initial Purchaser, severally and not jointly, represents and warrants to and agrees with the Issuer and the Guarantors, that:

 

(i)       it
has not sold, and will not sell, any Securities within the United States or to, or for the account or benefit of, U.S. persons
as part of their distribution at any time except to those persons whom it reasonably believes to be “qualified institutional
buyers” (as defined in Rule 144A under the Act) or if any such person is buying for one or more institutional accounts
for which such person is acting as a fiduciary or agent, only when such person has represented to it that each such account is
a qualified institutional buyer to whom notice has been given that such sale or delivery is being made in reliance on Rule 144A
and, in each case, in transactions in accordance with Rule 144A;

 

(ii)      it
has not offered or sold, and will not offer or sell, any Securities outside the United States (x) as part of their distribution
at any time or (y) otherwise until 40 days after the later of the commencement of the offering and the Closing Date except
in accordance with Rule 903 of Regulation S;

 

(iii)     neither
it nor any person acting on its behalf has made or will make offers or sales of the Securities in the United States by means of
any form of general solicitation or general advertising (within the meaning of Regulation D) in the United States or in any
manner involving a public offering within the meaning of Section 4(a)(2) of the Act;

 

    	 	-16-	 

     

    

 

(iv)     in
connection with each sale pursuant to Section 4(b)(i) hereof, it has taken or will take reasonable steps to ensure that the
purchaser of such Securities is aware that such sale is being made in reliance on Rule 144A;

 

(v)       neither
it, nor any of its Affiliates nor any person acting on its or their behalf has engaged or will engage in any directed selling efforts
(within the meaning of Regulation S) with respect to the Securities;

 

(vi)     it
has not entered and will not enter into any contractual arrangement with any distributor (within the meaning of Regulation S)
with respect to the distribution of the Securities, except with its Affiliates or with the prior written consent of the Issuer;

 

(vii)    it
and its Affiliates and any person acting on its behalf have complied and will comply with the offering restrictions requirement
of Regulation S;

 

(viii)   at or prior to the confirmation
of sale of Securities sold in reliance of Regulation S (other than a sale of Securities pursuant to Section 4(b)(ii)
hereof), it shall have sent to each distributor, dealer or person receiving a selling concession, fee or other remuneration that
purchases Securities from it during the distribution compliance period (within the meaning of Regulation S) a confirmation
or notice to substantially the following effect:

 

“The Securities covered hereby have not
been registered under the U.S. Securities Act of 1933 (the “Act”) and may not be offered or sold within the
United States or to, or for the account or benefit of, U.S. persons (i) as part of their distribution at any time or (ii) otherwise
until 40 days after the later of the commencement of the offering and the date of closing of the offering, except in either case
in accordance with Regulation S or Rule 144A under the Act. Terms used in this paragraph have the meanings given to them
by Regulation S;” and

 

(xii)    it
is an institutional “accredited investor” (as defined in 501(a) of Regulation D).

 

5.        Agreements.
The Issuer and the Guarantors agree, jointly and severally, in each case with each Initial Purchaser as follows:

 

(a)       The
Issuer will furnish to each Initial Purchaser and to counsel for the Initial Purchasers, without charge, during the period referred
to in paragraph (c) below, as many copies of the Pricing Disclosure Package and Final Memorandum and any amendments and supplements
thereto as they may reasonably request.

 

(b)       The
Issuer and the Guarantors will not make any amendment or supplement to the Pricing Disclosure Package and Final Memorandum or otherwise
distribute or refer to any written communication that constitutes an offer to sell or a solicitation of an offer to buy the Securities
(other than the Pricing Disclosure Package, the Recorded Road Show and the Final Memorandum) that shall be reasonably disapproved
by the Representative after reasonable notice thereof.

 

    	 	-17-	 

     

    

 

(c)       (1)
If at any time prior to the completion of the sale of the Securities by the Initial Purchasers (as determined by the Representative,
but in no event more than 180 days after the date hereof), any event occurs as a result of which, in the opinion of counsel for
the Initial Purchasers, or counsel for the Issuer, it is necessary to amend or supplement the Final Memorandum, as then amended
or supplemented, (i) in order that the Final Memorandum would not include any untrue statement of a material fact or omit to state
any material fact necessary to make the statements therein, in the light of the circumstances under which they were made, not misleading,
or (ii) comply with applicable law, the Issuer will promptly (A) notify the Representative of any such event; (B) subject
to the requirements of paragraph (b) of this Section 5, prepare an amendment or supplement that will correct such statement
or omission or effect such compliance; and (C) supply any supplemented or amended Final Memorandum to the several Initial
Purchasers and counsel for the Initial Purchasers without charge in such quantities as they may reasonably request and (2) if at
any time prior to the Closing Date (i) any event shall occur or condition shall exist as a result of which any of the Pricing Disclosure
Package as then amended or supplemented or the Recorded Road Show would include any untrue statement of a material fact or omit
to state any material fact necessary in order to make the statements therein, in the light of the circumstances under which they
were made, not misleading or (ii) it is necessary to amend or supplement any of the Pricing Disclosure Package or the Recorded
Road Show so that any of the Pricing Disclosure Package or the Recorded Road Show, as the case may be, will comply with applicable
law, the Issuer will immediately notify the Initial Purchasers thereof and forthwith prepare and, subject to paragraph (b) above,
furnish to the Initial Purchasers such amendments or supplements to any of the Pricing Disclosure Package or the Recorded Road
Show as may be necessary so that the statements in any of the Pricing Disclosure Package or the Recorded Road Show as so amended
or supplemented do not contain any untrue statement of a material fact or omit to state any material fact necessary to make the
statements therein, in the light of the circumstances under which they were made, not misleading or so the Pricing Disclosure Package
or the Recorded Road Show will comply with applicable law.

 

(d)       The
Issuer will assist the Initial Purchasers in arranging, if necessary, for the qualification of the Securities for sale by the Initial
Purchasers under the laws of such jurisdictions in the United States as the Initial Purchasers may designate and will maintain
such qualifications in effect so long as required for the sale of the Securities; provided that in no event shall the Issuer
or any of the Guarantors be obligated to qualify to do business in any jurisdiction where it is not now so qualified or to take
any action that would reasonably be expected to subject it to service of process in suits, other than those arising out of the
offering or sale of the Securities, in any jurisdiction where it is not now so subject or to subject themselves to taxation in
any jurisdiction in which they are not otherwise so subject. The Issuer will promptly advise the Initial Purchasers of the receipt
by it or the Guarantors of any notification with respect to the suspension of the qualification of the Securities or the Guarantees
for sale in any jurisdiction or the initiation or threatening of any proceeding for such purpose.

 

    	 	-18-	 

     

    

 

(e)      During
the period from the Closing Date until one year after the Closing Date, the Issuer will not, and will not permit any current or
future subsidiaries of either the Company or any other Affiliates controlled by the Company or the Parent to, resell any Securities
that have been acquired by any of them except for Securities resold in a transaction registered under the Act.

 

(f)      The
Issuer, the Guarantors and their Affiliates and any person acting on their behalf will not make offers or sales of any security
(as defined in the Act), or solicit offers to buy any security, under circumstances that could be integrated with the sale of the
Securities in a manner that would reasonably be expected to require the registration of the Securities under the Act.

 

(g)     The
Issuer and its Affiliates and any person acting on their behalf will not engage in any form of general solicitation or general
advertising (within the meaning of Regulation D) in connection with any offer or sale of the Securities in the United States.

 

(h)      So
long as any of the Securities are “restricted securities” within the meaning of Rule 144(a)(3) under the Act,
Holdings, the Issuer and its subsidiaries will, unless they become subject to and comply with Section 13 or 15(d) of the Exchange
Act or they or the Parent file the periodic reports contemplated by such provisions pursuant to the terms of the Indenture, provide
to each holder of such restricted securities and to each prospective purchaser (as designated by such holder) of such restricted
securities, upon the request of such holder or prospective purchaser, any information required to be provided by Rule 144A(d)(4)
under the Act (it being acknowledged and agreed that, prior to the first date on which information is required to be provided under
the Indenture, the information contained, or incorporated by reference, in the Final Memorandum is sufficient for this purpose).

 

(i)      The
Issuer and its Affiliates and any person acting on their behalf will not engage in any directed selling efforts with respect to
the Securities, and each of them will comply with the offering restrictions requirement of Regulation S. Terms used in this
paragraph have the meanings given to them by Regulation S.

 

(j)       The
Issuer will cooperate with the Initial Purchasers and use its commercially reasonable efforts to permit the Securities to be eligible
for clearance and settlement through The Depository Trust Company.

 

(k)      The
Issuer, the Guarantors and their Affiliates will not for a period of 60 days following the Closing Date, without the prior written
consent of the Representative, offer, sell or contract to sell, pledge or otherwise dispose of (or enter into any transaction that
is designed to, or might reasonably be expected to, result in the disposition (whether by actual disposition or effective economic
disposition due to cash settlement or otherwise) by the Issuer, any of the Guarantors or any of their respective Affiliates or
any person in privity with the Issuer, any of the Guarantors or any of their respective Affiliates), directly or indirectly, or
announce the offering of, any capital markets debt securities issued or guaranteed by the Issuer or any of the Guarantors (other
than the Securities and the Guarantees).

 

    	 	-19-	 

     

    

 

(l)       The
Issuer and the Guarantors, jointly and severally, agree to pay the costs and expenses relating to the following matters: (i) the
fees of the Trustee and the Collateral Agent (and their respective counsel); (ii) the preparation, printing or reproduction
of the Pricing Disclosure Package and the Final Memorandum and each amendment or supplement to either of them; (iii) the printing
(or reproduction) and delivery (including postage, air freight charges and charges for counting and packaging) of such copies of
the Pricing Disclosure Package and the Final Memorandum, and all amendments or supplements to either of them, as may, in each case,
be reasonably requested for use in connection with the offering and sale of the Securities; (iv) any stamp or transfer taxes
in connection with the original issuance and sale of the Securities; (v) the printing (or reproduction) and delivery of any
blue sky memorandum to investors in connection with the offering of the Securities; (vi) any registration or qualification
of the Securities for offer and sale under the securities or blue sky laws of the several states and any other jurisdictions specified
pursuant to Section 5(d) (including filing fees and the reasonable fees and expenses of counsel for the Initial Purchasers
relating to such registration and qualification); (vii) the approval of the Securities for book-entry transfer by DTC; (viii) the
 “roadshow” and any other meetings with prospective investors in the Securities; (ix) the fees and expenses of
the Issuer’s accountants and the fees and expenses of counsel (including local and special counsel) of the Issuer; (x) the
rating of the Securities by rating agencies; (xi) the fees and expenses incurred with respect to creating, documenting and perfecting
the security interests in the Collateral as contemplated by the Collateral Documents (including the related fees and expenses of
counsel to the Initial Purchasers for all periods prior to and after the Closing Date); and (xii) all other costs and expenses
incident to the performance by the Issuer of their obligations hereunder.

 

(m)     The
Issuer will use the proceeds from the sale of the Securities in the manner described in the Pricing Disclosure Package and the
Final Memorandum under the caption “Use of Proceeds.”

 

(n)      The
Issuer and the Guarantors jointly and severally acknowledge and agree that each Initial Purchaser is acting solely in the capacity
of an arm’s length contractual counterparty to the Issuer and the Guarantors with respect to the offering of Securities contemplated
hereby (including in connection with determining the terms of the offering) and not as a financial advisor or a fiduciary to or
an agent of the Issuer, any of the Guarantors or any other person. Additionally, no Initial Purchaser is advising the Issuer, any
of the Guarantors or any other person as to any legal, tax, investment, accounting or regulatory matters in any jurisdiction. The
Issuer and the Guarantors shall consult with their own advisors concerning such matters and shall be responsible for making their
own independent investigation and appraisal of the transactions contemplated hereby, and the Initial Purchasers shall have no responsibility
or liability to the Issuer or any of the Guarantors with respect thereto. Any review by the Initial Purchasers of the Issuer and
the Guarantors, the transactions contemplated hereby or other matters relating to such transactions will be performed solely for
the benefit of the Initial Purchasers and shall not be on behalf of the Issuer or any of the Guarantors.

 

    	 	-20-	 

     

    

 

 

(o)           Prior
to the completion of the resale of the Securities by the Initial Purchasers to subsequent purchasers, the Parent shall file, on
a timely basis, with the Commission all reports and documents required to be filed under Section 13(a), 13(c) or 15(d) of the Exchange
Act.

 

(p)           The
Issuer and each Guarantor (i) shall complete on or prior to the Closing Date all filings and other similar actions required in
connection with the perfection of security interests in the Collateral as and to the extent contemplated by the Indenture and the
Collateral Documents and (ii) shall take all actions necessary to maintain such security interests and to perfect security interests
in any Collateral acquired after the Closing Date, in each case as and to the extent contemplated by the Indenture and the Collateral
Documents; provided if the certificated securities and instruments identified in the Security Agreement as of the Closing Date
are not located on or prior to the Closing Date, the Issuer and Guarantor agree to deliver such certificated securities and instruments
to the Term Loan Collateral Agent pursuant to the Collateral Documents and the Intercreditor Agreements as soon as commercially
reasonable, but in no event later than 90 days following the Closing Date.

 

(q)           The
Issuer and each Guarantor, as applicable, shall use commercially reasonable efforts to amend, supplement or otherwise modify the
Collateral Access Agreements (as defined in the Term Loan Credit Agreement) in order to have the Term Loan Collateral Agent and
Collateral Agent become parties thereto, such amendment, supplement or other modification to be in form and substance reasonably
satisfactory to both the Term Loan Collateral Agent and the Collateral Agent.

 

6.             Conditions
to the Obligations of the Initial Purchasers. The obligations of the Initial Purchasers to purchase the Securities shall be
subject to the accuracy of the representations and warranties of the Issuer and the Guarantors contained herein at the Time of
Sale and the Closing Date, to the accuracy of the statements of the Issuer and the Guarantors made in any certificates pursuant
to the provisions hereof, to the performance by the Issuer and the Guarantors of their obligations hereunder and to the following
additional conditions:

 

(a)           The
Issuer shall have requested and caused (i) Ropes & Gray LLP, counsel for the Issuer and those Guarantors organized or incorporated
in the State of Delaware, to furnish to the Initial Purchasers an opinion and negative assurance statement dated the Closing Date
in form and substance reasonably satisfactory to the Initial Purchasers, (ii) Troutman Pepper Hamilton Sanders LLP, Virginia counsel
for Michaels Stores Card Services, LLC, to furnish to the Initial Purchasers an opinion dated the Closing Date in form and substance
reasonably satisfactory to the Initial Purchasers and (iii) Jones Day, Ohio counsel for those Guarantors organized or incorporated
in the State of Ohio, to furnish to the Initial Purchasers an opinion dated the Closing Date in form and substance reasonably satisfactory
to the Initial Purchasers.

 

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(b)           The
Initial Purchasers shall have received from Simpson Thacher & Bartlett LLP, counsel for the Initial Purchasers, such opinion
and negative assurance statement, each dated the Closing Date and addressed to the Initial Purchasers, with respect to the issuance
and sale of the Securities, the Indenture, Pricing Disclosure Package and the Final Memorandum (as amended or supplemented at the
Closing Date) and other related matters as the Initial Purchasers may reasonably require, and the Issuer and the Guarantors shall
have furnished to such counsel such documents as they reasonably request for the purpose of enabling them to pass upon such matters.

 

(c)           The
Issuer shall have furnished to the Initial Purchasers a certificate, signed by (x) the chairman, chief executive officer, president
or vice president and (y) the chief financial officer, treasurer or principal financial or accounting officer of the Issuer and
the Guarantors, dated the Closing Date, to the effect that the signers of such certificate have reviewed the Pricing Disclosure
Package and the Final Memorandum, any amendment or supplement to the Pricing Disclosure Package and the Final Memorandum and this
Agreement and that:

 

(i)      the
representations and warranties of the Issuer and the Guarantors in this Agreement are true and correct in all material respects
(except to the extent already qualified by materiality, in which case such obligations shall be subject to the accuracy of such
representations and warranties in all respects) at the Time of Sale and on the Closing Date, and the Issuer and the Guarantors
have complied in all material respects with all the agreements and satisfied all the conditions on their part to be performed or
satisfied hereunder at or prior to the Closing Date; and

 

(ii)     since
the date of the most recent financial statements included in the Pricing Disclosure Package and the Final Memorandum (exclusive
of any amendment or supplement thereto), there has been no material adverse change in the condition (financial or otherwise), business
or results of operations of Holdings, the Issuer and its subsidiaries, taken as a whole, except as set forth in or contemplated
in the Pricing Disclosure Package and the Final Memorandum (exclusive of any amendment or supplement thereto).

 

(d)           The
Issuer shall have requested and caused Ernst & Young LLP to furnish to the Initial Purchasers a “comfort” letter,
(i) at and dated as of the date hereof with respect to the Pricing Disclosure Package and (ii) in bring-down form at and dated
as of the Closing Date with respect to the Final Memorandum, each such letter in form and substance reasonably satisfactory to
the Initial Purchasers, confirming that they are independent auditors within the meaning of the Exchange Act and the applicable
published rules and regulations thereunder and confirming certain matters with respect to the audited and unaudited financial statements
and other financial and accounting information contained in the Pricing Disclosure Package and Final Memorandum, as applicable,
including any amendment or supplement thereto at the date of the applicable letter.

 

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(e)            Subsequent
to the Time of Sale or, if earlier, the dates as of which information is given in the Pricing Disclosure Package and the Final
Memorandum, there shall not have been any change or development in the condition (financial or otherwise), business or results
of operations of Holdings, the Issuer and its subsidiaries, taken as a whole and after giving effect to the Transactions, except
as set forth in or contemplated in the Pricing Disclosure Package and the Final Memorandum (exclusive of any amendment or supplement
thereto), the effect of which is, or would reasonably be expected to become, in the judgment of the Representative, so material
and adverse as to make it impractical or inadvisable to proceed with the offering, sale or delivery of the Securities on the terms
and in the manner contemplated in the Pricing Disclosure Package and the Final Memorandum.

 

(f)            At
the Closing Date, the Issuer, the Guarantors and the Trustee shall have entered into the Indenture and the Initial Purchasers shall
have received counterparts, conformed as executed thereof.

 

(g)           Subsequent
to the date hereof, there shall not have been any decrease in the rating of the Securities by any “nationally recognized
statistical rating organization” (as defined in Section 3(a)(62) of the Exchange Act) or any notice given of any intended
or potential decrease in any such rating or of a possible change in any such rating that does not indicate the direction of the
possible change.

 

(h)           Prior
to the Closing Date, the Issuer and the Guarantors shall have furnished to the Initial Purchasers such further information, certificates
and documents as the Initial Purchasers may reasonably request, as set forth in the closing memorandum relating to the Transactions.

 

(i)             Prior
to the Closing Date, the Issuer and the Guarantors shall have taken all action reasonably required to be taken by them to have
the Securities declared eligible for clearance and settlement through The Depository Trust Company.

 

(j)            The
Issuer shall have furnished to the Initial Purchasers certificates of its chief financial officer with respect to certain financial
data (i) at and dated as of the date hereof with respect to the Pricing Disclosure Package and (ii) at and dated as of the Closing
Date with respect to the Final Memorandum, in each case providing “management comfort” with respect to such information,
in form and substance reasonably satisfactory to the Initial Purchasers.

 

(k)           The
Initial Purchasers shall have received conformed counterparts of the Security Agreement and each of the Intellectual Property Security
Agreements that shall have been executed and delivered by the requisite signatories thereto, in form and substance reasonably satisfactory
to the Representative.

 

(l)            The
Initial Purchasers shall have received conformed counterparts of the Pari Passu Intercreditor Agreement, the ABL Intercreditor
Agreement and the ABL Intercreditor Joinder that shall have been executed and delivered by duly authorized officers of each party
thereto, and an acknowledgement thereof by the Company, in each case, in form and substance reasonably satisfactory to the Representative.

 

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(m)          Except
as otherwise contemplated by the Intellectual Property Security Agreements and the Security Agreement, each document (including
any Uniform Commercial Code financing statement) required by the Intellectual Property Security Agreements and the Security Agreement,
or under law or reasonably requested by the Representative, in each case, to be filed, registered or recorded, or delivered for
filing on or prior to the Closing Date, including filings in the U.S. Patent and Trademark Office and the U.S. Copyright Office,
in order to create in favor of the Collateral Agent, for itself, the Trustee, and for the benefit of the holders of the Securities,
a perfected first-priority lien and security interest in the Personal Property Collateral constituting First Priority Collateral
and a perfected second-priority lien and security interest in the Personal Property Collateral constituting ABL Priority Collateral,
in each case, subject to Permitted Liens, that can be perfected by the making of such filings, registrations or recordations, prior
and superior to the right of any other person (other than Permitted Liens), shall be executed and in proper form for filing, registration
or recordation.

 

All opinions, letters, evidence and certificates
mentioned above or elsewhere in this Agreement shall be deemed to be in compliance with the provisions hereof only if they are
in form and substance reasonably satisfactory to the Initial Purchasers and counsel for the Initial Purchasers.

 

The documents required to be delivered by
this Section 6 will be available for inspection at the office of Simpson Thacher & Bartlett LLP, 425 Lexington Avenue,
New York, New York 10017, on the Business Day prior to the Closing Date.

 

7.             Reimbursement
of Expenses. If the sale of the Securities provided for herein is not consummated because any condition to the obligations
of the Initial Purchasers set forth in Section 6 hereof is not satisfied, because of any termination pursuant to Section 10
hereof or because of any refusal, inability or failure on the part of the Issuer or the Guarantors to perform any agreement herein
or comply with any provision hereof other than by reason of a default by any of the Initial Purchasers, including as described
in Section 9 hereof, the Issuer and the Guarantors will, jointly and severally, reimburse the Initial Purchasers on behalf of the
Initial Purchasers on demand for all reasonable expenses (including reasonable fees and disbursements of Simpson Thacher &
Bartlett LLP) that shall have been incurred by them in connection with the proposed purchase and sale of the Securities.

 

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8.             Indemnification
and Contribution.

 

(a)           The
Issuer and the Guarantors jointly and severally agree to indemnify and hold harmless each Initial Purchaser, the directors, officers
and Affiliates of each Initial Purchaser and each person who controls any Initial Purchaser within the meaning of either the Act
or the Exchange Act against any and all losses, claims, damages or liabilities, joint or several, to which they or any of them
may become subject under the Act, the Exchange Act or other U.S. federal or state statutory law or regulation, at common law or
otherwise, insofar as such losses, claims, damages or liabilities (or actions in respect thereof) arise out of or are based upon
any untrue statement or alleged untrue statement of a material fact contained in the Pricing Disclosure Package, Recorded Road
Show (when taken together with the Preliminary Offering Memorandum) or Final Memorandum or in any amendment or supplement thereto
or in any other written communication by the Issuer or a Guarantor that constitutes an offer to sell or a solicitation of an offer
to buy the Securities or arise out of or are based upon the omission or alleged omission to state therein a material fact necessary
to make the statements therein, in the light of the circumstances under which they were made, not misleading, and agree (subject
to the limitations set forth in the proviso to this sentence) to reimburse each such indemnified party, as incurred, for any legal
or other expenses reasonably incurred by it in connection with investigating or defending any such loss, claim, damage, liability
or action; provided, however, that the Issuer and the Guarantors will not be liable in any such case to the extent
that any such loss, claim, damage or liability arises out of or is based upon any such untrue statement or alleged untrue statement
or omission or alleged omission made in the Pricing Disclosure Package, the Recorded Road Show or Final Memorandum, or in any amendment
thereof or supplement thereto, in reliance upon and in conformity with the Initial Purchaser Information. This indemnity agreement
will be in addition to any liability that the Issuer and the Guarantors may otherwise have. The Issuer and the Guarantors shall
not be liable under this Section 8 to any indemnified party regarding any settlement or compromise or consent to the entry
of any judgment with respect to any pending or threatened claim, action, suit or proceeding in respect of which indemnification
or contribution may be sought hereunder (whether or not the indemnified parties are actual or potential parties to such claim or
action) unless such settlement, compromise or consent is consented to by the Issuer, which consent shall not be unreasonably withheld.

 

(b)           Each
Initial Purchaser severally, and not jointly, agrees to indemnify and hold harmless (i) the Issuer and the Guarantors, (ii) each
person, if any, who controls (within the meaning of either the Act or the Exchange Act) the Issuer or any of the Guarantors, and
(iii) the directors and officers of the Issuer and the Guarantors, to the same extent as the foregoing indemnity from the Issuer
and the Guarantors to each Initial Purchaser, but only with reference to the Initial Purchaser Information provided by such Initial
Purchaser. This indemnity agreement will be in addition to any liability that any Initial Purchaser may otherwise have. The Issuer
acknowledges that the first sentence of the third paragraph under the heading “Plan of Distribution” and the fourth
and fifth sentences of the third paragraph and the fourth paragraph under the heading “Plan of Distribution—General”
in the Preliminary Memorandum and the Final Memorandum constitute the only information furnished in writing by or on behalf of
the Initial Purchasers for inclusion in the Pricing Disclosure Package, the Recorded Road Show or the Final Memorandum or any other
written communication by the Issuer that constitutes an offer to sell or the solicitation of an offer to buy the Securities (the
 “Initial Purchaser Information”).

 

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(c)           Promptly
after receipt by an indemnified party under this Section 8 of notice of the commencement of any action, such indemnified party
will, if a claim in respect thereof is to be made against the indemnifying party under this Section 8, notify the indemnifying
party in writing of the commencement thereof; but the failure so to notify the indemnifying party (i) will not relieve it from
liability under paragraph (a) or (b) above unless and to the extent it did not otherwise learn of such action and such failure
results in the forfeiture by the indemnifying party of substantial rights or defenses and (ii) will not, in any event, relieve
the indemnifying party from any obligations to any indemnified party other than the indemnification obligation provided in paragraph
(a) or (b) above, except as provided in paragraph (d) below. The indemnifying party shall be entitled to appoint counsel (including
local counsel) of the indemnifying party’s choice at the indemnifying party’s expense to represent the indemnified
party in any action for which indemnification is sought (in which case the indemnifying party shall not thereafter be responsible
for the fees and expenses of any separate counsel, other than local counsel if not appointed by the indemnifying party, retained
by the indemnified party or parties except as set forth below); provided, however, that such counsel shall be reasonably
satisfactory to the indemnified party. Notwithstanding the indemnifying party’s election to appoint counsel (including local
counsel) to represent the indemnified party in an action, the indemnified party shall have the right to employ separate counsel
(including local counsel), and the indemnifying party shall bear the reasonable fees, costs and expenses of such separate counsel
if (i) the use of counsel chosen by the indemnifying party to represent the indemnified party would present such counsel with
a conflict of interest (based on the advice of counsel to the indemnified party); (ii) such action includes both the indemnified
party and the indemnifying party and the indemnified party shall have reasonably concluded (based on the advice of counsel to the
indemnified party) that there may be legal defenses available to it and/or other indemnified parties that are different from or
additional to those available to the indemnifying party; (iii) the indemnifying party shall not have employed counsel reasonably
satisfactory to the indemnified party to represent the indemnified party within a reasonable time after notice of the institution
of such action; or (iv) the indemnifying party shall authorize the indemnified party to employ separate counsel at the expense
of the indemnifying party. It is understood and agreed that the indemnifying party shall not, in connection with any proceeding
or related proceeding in the same jurisdiction, be liable for the reasonable fees and expenses of more than one separate firm (in
addition to any local counsel) for all indemnified parties. Any such separate firm for any Initial Purchaser, its Affiliates, directors
and officers and any control persons of such Initial Purchaser shall be designated in writing by the Representative, and any such
separate firm for the Issuer or any of the Guarantors, directors and officers and any control persons of the Issuer or any of the
Guarantors shall be designated in writing by the Issuer. An indemnifying party will not, without the prior written consent of the
indemnified parties, settle or compromise or consent to the entry of any judgment with respect to any pending or threatened claim,
action, suit or proceeding in respect of which indemnification or contribution may be sought hereunder (whether or not the indemnified
parties are actual or potential parties to such claim, action, suit or proceeding) unless such settlement, compromise or consent
includes an unconditional release of each indemnified party, in form and substance reasonably satisfactory to such indemnified
party, from all liability arising out of such claim, action, suit or proceeding and does not include any statement as to, or any
admission of, fault, culpability or failure to act by or on behalf of any indemnified party.

 

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(d)           In
the event that the indemnity provided in paragraph (a) or (b) of this Section 8 is unavailable to or insufficient to
hold harmless an indemnified party for any reason (other than by virtue of the failure of an indemnified party to notify the indemnifying
party of its right to indemnification pursuant to subsection (a) or (b) above, where such failure materially prejudices the indemnifying
party (through the forfeiture of substantial rights or defenses)), the Issuer and the Guarantors, jointly and severally on the
one hand, and the Initial Purchasers, on the other hand, severally agree to contribute to the aggregate losses, claims, damages
and liabilities (including legal or other expenses reasonably incurred in connection with investigating or defending any loss,
claim, damage, liability or action) (collectively “Losses”) to which the Issuer or any Guarantor and one or
more of the Initial Purchasers may be subject in such proportion as is appropriate to reflect the relative benefits received by
the Issuer and the Guarantors, on the one hand, and by the Initial Purchasers, on the other hand, from the offering of the Securities.
If the allocation provided by the immediately preceding sentence is unavailable for any reason or not permitted by applicable law,
the Issuer and the Guarantors, jointly and severally, on the one hand, and the Initial Purchasers, on the other hand, severally
shall contribute in such proportion as is appropriate to reflect not only such relative benefits but also the relative fault of
the Issuer and the Guarantors, on the one hand, and the Initial Purchasers, on the other hand, in connection with the statements
or omissions that resulted in such Losses, as well as any other relevant equitable considerations. Benefits received by the Issuer
and the Guarantors shall be deemed to be equal to the total net proceeds from the offering (before deducting expenses) received
by them, and benefits received by the Initial Purchasers shall be deemed to be equal to the total purchase discounts and commissions.
Relative fault shall be determined by reference to, among other things, whether any untrue or alleged untrue statement of a material
fact or the omission or alleged omission to state a material fact relates to information provided by the Issuer or any Guarantor,
on the one hand, or the Initial Purchasers, on the other hand, the intent of the parties and their relative knowledge, access to
information and opportunity to correct or prevent such untrue statement or omission and any other equitable considerations appropriate
in the circumstances. The Issuer, the Guarantors and the Initial Purchasers agree that it would not be just and equitable if the
amount of such contribution were determined by pro rata allocation or any other method of allocation that does not take account
of the equitable considerations referred to above. Notwithstanding the provisions of this Section 8, in no case shall any Initial
Purchaser be responsible for any amount in excess of the purchase discount or commission applicable to the Securities purchased
by such Initial Purchaser hereunder. Notwithstanding the provisions of this paragraph (d), no person guilty of fraudulent
misrepresentation (within the meaning of Section 11(f) of the Act) shall be entitled to contribution from any person who was
not guilty of such fraudulent misrepresentation. The Initial Purchasers’ obligations to contribute pursuant to this Section
8 are several in proportion to their respective purchase obligations hereunder and not joint. For purposes of this Section 8,
each person, if any, who controls an Initial Purchaser within the meaning of either the Act or the Exchange Act and each director,
officer, employee, Affiliate and agent of an Initial Purchaser shall have the same rights to contribution as such Initial Purchaser,
and each person who controls the Issuer or any Guarantor within the meaning of either the Act or the Exchange Act and the respective
officers and directors of the Issuer and the Guarantors shall have the same rights to contribution as the Issuer and the Guarantors,
subject in each case to the applicable terms and conditions of this paragraph (d).

 

     -27-

     

    

 

9.             Default
by an Initial Purchaser. If any one or more Initial Purchasers shall fail to purchase and pay for any of the Securities agreed
to be purchased by such Initial Purchaser hereunder and such failure to purchase shall constitute a default in the performance
of its or their obligations under this Agreement, the remaining Initial Purchasers shall be obligated severally to take up and
pay for (in the respective proportions that the principal amount of the Securities set forth opposite their names in Schedule I
hereto bears to the aggregate principal amount of the Securities set forth opposite the names of all the remaining Initial Purchasers)
the Securities that the defaulting Initial Purchaser or Initial Purchasers agreed but failed to purchase; provided, however,
that in the event that the aggregate principal amount of the Securities that the defaulting Initial Purchaser or Initial Purchasers
agreed but failed to purchase shall exceed 10% of the aggregate principal amount of the Securities set forth in Schedule I
hereto, the Issuer shall be entitled to a period of 36 hours within which to procure another party or parties reasonably satisfactory
to the non-defaulting Initial Purchasers to purchase no less than the amount of such unpurchased Securities that exceeds 10% of
the principal amount thereof upon such terms herein set forth. If, however, the Issuer shall not have completed such arrangements
within 36 hours after such default and the principal amount of unpurchased Securities exceeds 10% of the principal amount of Securities
to be purchased on such date, then this Agreement will terminate without liability as to the Securities to any non-defaulting Initial
Purchaser or the Issuer. In the event of a default by any Initial Purchaser as set forth in this Section 9, the Closing Date
shall be postponed for such period, not exceeding five Business Days, to effect any changes that in the opinion of counsel for
the Issuer or counsel for the Initial Purchasers shall determine are necessary in the Final Memorandum or in any other documents
or arrangements may be effected. Nothing contained in this Agreement shall relieve any defaulting Initial Purchaser of its liability,
if any, to the Issuer or any nondefaulting Initial Purchaser for damages occasioned by its default hereunder.

 

10.           Termination.
This Agreement shall be subject to termination in the absolute discretion of the Representative, by notice given to the Issuer
prior to delivery of and payment for the Securities, if at any time prior to such time (i) trading in any securities generally
on the New York Stock Exchange or the Nasdaq Stock Market shall have been suspended or materially limited or minimum prices shall
have been established on such exchange or the Nasdaq Stock Market; (ii) trading of any securities issued or guaranteed by
the Parent shall have been suspended on any exchange or in any over-the-counter market; (iii) a banking moratorium shall have been
declared either by U.S. federal or New York State authorities; or (iv) there shall have occurred any outbreak or escalation
of hostilities, declaration by the United States of a national emergency or war or other calamity or crisis the effect of which
on financial markets is such as to make it, in the judgment of the Representative, impractical or inadvisable to proceed with the
offering, sale or delivery of the Securities as contemplated in the Pricing Disclosure Package and the Final Memorandum.

 

11.           Representations
and Indemnities to Survive. The respective agreements, representations, warranties, indemnities and other statements of the
Issuer and the Guarantors or, with respect to Sections 5(f), (g) and (i) hereof, their respective officers and of the Initial Purchasers
set forth in or made pursuant to this Agreement will remain in full force and effect, regardless of any investigation made by or
on behalf of the Initial Purchasers or the Issuer or any Guarantor, or any of the indemnified parties referred to in Section 8
hereof, and will survive delivery of and payment for the Securities. The provisions of Sections 7 and 8 hereof shall survive
the termination or cancellation of this Agreement.

 

12.           Notices.
All communications hereunder will be in writing and effective only on receipt and, if sent to the Initial Purchasers, will be mailed
or delivered and confirmed to J.P. Morgan Securities LLC, 383 Madison Avenue, New York, New York 10179, Attention: Ryan P. Griswold;
or, if sent to the Issuer or the Guarantors, will be mailed, delivered or faxed c/o Chief Financial Officer (fax no.: (972) 409-1901)
and confirmed to it at 8000 Bent Branch Drive, Irving TX 75063 Attention: General Counsel (fax no.: (972) 409-1965). The Issuer
shall be entitled to act and rely upon any request, consent, notice or agreement given or made on behalf of the Initial Purchasers
by the Representative.

 

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13.           Successors.
This Agreement will inure to the benefit of and be binding upon the parties hereto and at and after the Closing Date, the Issuer
and the Guarantors and their respective successors and the indemnified parties referred to in Section 8 hereof and their respective
successors and no other person will have any right or obligation hereunder. No purchaser of Securities from any Initial Purchaser
shall be deemed to be a successor merely by reason of such purchase.

 

14.           Applicable
Law; Waiver of Jury Trial; Submission to Jurisdiction. This Agreement and any claim, controversy or dispute relating to or
arising out of this Agreement will be governed by and construed in accordance with the laws of the State of New York applicable
to contracts made and to be performed within the State of New York. THE PARTIES HERETO EACH HEREBY WAIVE ANY RIGHT TO TRIAL
BY JURY IN ANY ACTION, PROCEEDING OR COUNTERCLAIM ARISING OUT OF OR RELATING TO THIS AGREEMENT. Any proceeding related to this
Agreement or the transactions contemplated hereby shall be exclusively commenced, prosecuted or continued in any court of the State
of New York located in the City and County of New York or in the United States District Court for the Southern District of New
York, and the Issuer and the Guarantors hereby consent to the jurisdiction of such courts and personal service with respect thereto.

 

15.           Counterparts.
This Agreement may be signed in one or more counterparts (which may be delivered in original form or facsimile or “pdf”
file thereof), each of which when so executed shall constitute an original and all of which together shall constitute one and the
same agreement. The words “execution,” “executed,” “signed,” “signature,” “delivery,”
and words of like import in or relating to this Agreement or any document to be signed in connection with this Agreement shall
be deemed to include electronic signatures, deliveries or the keeping of records in electronic form, each of which shall be of
the same legal effect, validity or enforceability as a manually executed signature, physical delivery thereof or the use of a paper-based
recordkeeping system, as the case may be, and the parties hereto consent to conduct the transactions contemplated hereunder by
electronic means.

 

16.           Headings.
The section headings used herein are for convenience only and shall not affect the construction hereof.

 

17.           Definitions.
The terms that follow, when used in this Agreement, shall have the meanings indicated.

 

“Act” shall mean the Securities
Act of 1933, as amended, and the rules and regulations of the Commission promulgated thereunder.

 

“Affiliate” shall have
the meaning specified in Rule 501(b) of Regulation D.

 

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“Business Day” shall mean
any day other than a Saturday, a Sunday or a legal holiday or a day on which commercial banking institutions or trust companies
are authorized or required by law to close in New York City.

 

“Code” shall mean the Internal
Revenue Code of 1986, as amended.

 

“Commission” shall mean
the Securities and Exchange Commission.

 

“Exchange Act” shall mean
the Securities Exchange Act of 1934, as amended, and the rules and regulations of the Commission promulgated thereunder.

 

“Investment Company Act”
shall mean the Investment Company Act of 1940, as amended, and the rules and regulations of the Commission promulgated thereunder.

 

“Regulation D” shall
mean Regulation D under the Act.

 

“Regulation S” shall
mean Regulation S under the Act.

 

“Trust Indenture Act” shall
mean the Trust Indenture Act of 1939, as amended, and the rules and regulations of the Commission promulgated thereunder.

 

18.           Patriot
Act. In accordance with the requirements of the USA Patriot Act (Title III of Pub. L, 107-56 (signed into law October 26, 2001)),
the Initial Purchasers are required to obtain, verify and record information that identifies their clients, which may include the
name and address of their clients, as well as other information that will allow the Initial Purchasers to properly identify their
clients.

 

19.           Recognition
of the U.S. Special Resolution Regimes.

 

(a)           In
the event that any Initial Purchaser that is a Covered Entity becomes subject to a proceeding under a U.S. Special Resolution Regime,
the transfer from such Initial Purchaser of this Agreement, and any interest and obligation in or under this Agreement, will be
effective to the same extent as the transfer would be effective under the U.S. Special Resolution Regime if this Agreement, and
any such interest and obligation, were governed by the laws of the United States or a state of the United States.

 

(b)           In
the event that any Initial Purchaser that is a Covered Entity or a BHC Act Affiliate of such Initial Purchaser becomes subject
to a proceeding under a U.S. Special Resolution Regime, Default Rights under this Agreement that may be exercised against such
Initial Purchaser are permitted to be exercised to no greater extent than such Default Rights could be exercised under the U.S.
Special Resolution Regime if this Agreement were governed by the laws of the United States or a state of the United States.

 

“BHC Act Affiliate” has
the meaning assigned to the term “affiliate” in, and shall be interpreted in accordance with, 12 U.S.C. § 1841(k).

 

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“Covered Entity”
means any of the following:

 

(i)            a
 “covered entity” as that term is defined in, and interpreted in accordance with, 12 C.F.R. § 252.82(b);

 

(ii)           a
 “covered bank” as that term is defined in, and interpreted in accordance with, 12 C.F.R. § 47.3(b); or

 

(iii)         
a “covered FSI” as the term is defined in, and interpreted in accordance with, 12 C.F.R. § 382.2(b).

 

“Default Right” has the
meaning assigned to that term in, and shall be interpreted in accordance with, 12 C.F.R. §§ 252.81, 47.2 or 382.1, as
applicable.

 

“U.S. Special Resolution Regime”
means each of (i) the Federal Deposit Insurance Act and the regulations promulgated thereunder and (ii) Title II of the Dodd-Frank
Wall Street Reform and Consumer Protection Act and the regulations promulgated thereunder.

 

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If the foregoing is in accordance with your
understanding of our agreement, please sign and return to us the enclosed duplicate hereof, whereupon this letter and your acceptance
shall represent a binding agreement among the Issuer, the Guarantors and the several Initial Purchasers.

 

	 	Very truly yours,
	 	 
	 	MICHAELS
    STORES, INC.
	 	 
	 	By:/s/ Michael Diamond
	 	Name: Michael Diamond
	 	Title:Executive Vice President
    & Chief Financial Officer
	 	 
	 	 
	 	MICHAELS
    funding, INC.
	 	 
	 	By:/s/ Michael Diamond
	 	Name: Michael Diamond
	 	Title:Executive Vice President
    & Chief Financial Officer
	 	 
	 	 
	 	DARICE,
    INC.
	 	DARICE
    IMPORTS, INC.
	 	MICHAELS
    STORES PROCUREMENT COMPANY, INC.
	 	 
	 	By:/s/ Michael Diamond
	 	Name: Michael Diamond
	 	Title: Executive Vice President
    & Chief Financial Officer
	 	 
	 	 
	 	ARTISTREE,
    INC.
	 	MICHAELS
    FINANCE COMPANY, INC.
	 	MICHAELS
    STORES CARD SERVICES, LLC
	 	 
	 	By:/s/ Michael Diamond
	 	Name: Michael Diamond
	 	Title: Executive Vice President
    & Chief Financial Officer
	 	 
	 	 
	 	LAMRITE
    WEST, INC.
	 	 
	 	By:/s/ Michael Diamond
	 	Name: Michael Diamond
	 	Title: Executive Vice President
    & Chief Financial Officer

 

[Signature Page to Purchase Agreement]

 

 

     

     

    

 

	The foregoing Agreement is hereby
 confirmed and accepted as of the
 date first above written.	 
	 	 	 
	J.P. MORGAN SECURITIES LLC	 
	 	 	 
	By: J.P. Morgan Securities LLC	 
	 	 	 
	 	For itself, and the other several	 
	 	Initial Purchasers named	 
	 	in Schedule I to the foregoing Agreement	 
	 	 	 
	By:	/s/ Brandon Mallette	 
	 	Name: Brandon Mallette	 
	 	Title: Vice President	 

 

[Signature Page to Purchase Agreement]

 

     

     

    

 

SCHEDULE I

 

	Initial Purchasers	 	Aggregate Principal Amount of

                                                                                Securities To Be Purchased
	 
	J.P. Morgan Securities LLC 	 	$	105,000,000	 
	Wells Fargo Securities, LLC	 	$	60,375,000	 
	BofA Securities, Inc.	 	$	43,125,000	 
	Truist Securities, Inc.	 	$	25,500,000	 
	Goldman Sachs & Co. LLC	 	$	17,625,000	 
	Barclays Capital Inc.	 	$	17,625,000	 
	Citizens Capital Markets, Inc. 	 	$	17,625,000	 
	U.S. Bancorp Investments, Inc. 	 	$	17,625,000	 
	BMO Capital Markets Corp. 	 	$	17,625,000	 
	Fifth Third Securities, Inc. 	 	$	17,625,000	 
	Credit Suisse Securities (USA) LLC 	 	$	17,625,000	 
	UBS Securities LLC	 	$	17,625,000	 
	Total	 	$	375,000,000	 

 

     

     

    

 

ANNEX A-1

 

		Artistree, Inc., a Delaware corporation	 
	 	Darice, Inc., an Ohio Corporation	 
	 	Darice Imports, Inc., an Ohio Corporation	 
	 	Lamrite West, Inc., an Ohio Corporation	 
	 	Michaels Finance Company, Inc., a Delaware corporation
	 	Michaels Stores Procurement Company, Inc., a Delaware corporation
	 	Michaels Stores Card Services, LLC, a Virginia limited liability company

 

     

     

    

 

ANNEX A-2

 

		Artistree, Inc.	 
	 	Artistree of Canada, ULC	 
	 	Darice Global Sourcing S.à r.l.	 
	 	Darice Holdings Company Ltd.	 
	 	Darice Holdings I S.à r.l.	 
	 	Darice Holdings II S.à r.l.	 
	 	Darice Imports, Inc.	 
	 	Darice, Inc.	 
	 	Darice International Sourcing Group	 
	 	Darice International Sourcing Holdings S.à
r.l.	 
	 	Darice (Ningbo) Business Consulting Co. Ltd.	 
	 	Darice Product Development, LLC	 
	 	Lamrite West, Inc.	 
	 	Michaels Finance Company, Inc.	 
	 	Michaels of Canada Holdings LP No. 1	 
	 	Michaels of Canada Holdings LP No. 2	 
	 	Michaels of Canada, ULC	 
	 	Michaels of Luxembourg S.à r.l.	 
	 	Michaels Product Development, LLC	 
	 	Michaels Stores Card Services, LLC	 
	 	Michaels Stores Procurement Company, Inc.	 
	 	Michaels U.S. Holdings 1, LLC	 
	 	Michaels U.S. Holdings 2, LLC	 
	 	Michaels International Holdings, LLC	 
	 	Michaels Hong Kong Holdings Limited	 
	 	Michaels Urban Renewal LLC	 

 

     

     

    

 

ANNEX B

 

Preliminary Offering Memorandum Supplements

 

1.       Pricing Term Sheet,
dated September 17, 2020Exhibit 4.1 

 

Execution Version

 

SECOND AMENDED AND RESTATED

COMMON STOCK PURCHASE WARRANT

 

TELLURIAN
INC. 

 

	Warrant Shares: 6,847,274	 	Issue Date: September 21,
2020

 

THIS SECOND AMENDED AND
RESTATED COMMON STOCK PURCHASE WARRANT (this “Warrant”) certifies that, for value received, Nineteen77 Capital
Solutions A LP or its permitted assigns (the “Holder”) is entitled, upon the terms and subject to the conditions
set forth herein, in the amounts hereinafter specified from time to time on or after the Issue Date and on or prior to March 23,
2025 (the “Termination Date”), to purchase from Tellurian Inc., a Delaware corporation (the “Company”),
up to 6,847,274 shares (as adjusted from time to time pursuant to the terms of this Warrant, the “Warrant Shares”)
of the Company’s common stock, par value $0.01 per share (“Common Stock”), at a purchase price of $1.00
per share (such purchase price, as adjusted from time to time pursuant to the terms of this Warrant, the “Exercise Price”).
The Company and the Holder each acknowledges and agrees that this Warrant amends and restates in its entirety and replaces that
certain Amended and Restated Common Stock Purchase Warrant that was issued by the Company to the Holder on April 29, 2020, which
is deemed cancelled as of the date hereof.

 

Section 1.        Definitions.
As used in this Warrant, the terms set forth in this Section 1 shall have the respective meanings assigned to them in this Section
1.

 

“Affiliate”
means, with respect to any Person, any other Person that, directly or indirectly through one or more intermediaries, is in control
of, is controlled by, or is under common control with, such Person. For purposes of this definition, “control” of a
Person means the possession, directly or indirectly, of the power to direct or cause the direction of the management and policies
of such Person, whether through the exercise of voting power, by contract or otherwise.

 

“Aggregate
Exercise Price” means an amount equal to the product of (a) the number of Warrant Shares in respect of which this Warrant
is then being exercised pursuant to Section 2 hereof, multiplied by (b) the Exercise Price in effect
as of the applicable Exercise Date in accordance with the terms of this Warrant.

 

“Attribution
Parties” means, collectively, the following Persons and entities: (i) any investment vehicle, including, any funds, feeder
funds or managed accounts, currently, or from time to time after the Issue Date, directly or indirectly managed or advised by the
Holder’s investment manager or any of its Affiliates or principals, (ii) any direct or indirect Affiliates of the Holder
or any of the foregoing, (iii) any Person acting or who could be deemed to be acting as a Group together with the Holder or any
of the foregoing and (iv) any other Persons whose beneficial ownership of the Company’s Common Stock would or could be aggregated
with the Holder’s and the other Attribution Parties for purposes of Section 13(d) of the 1934 Act. For clarity, the purpose
of the foregoing is to subject collectively the Holder and all other Attribution Parties to the Maximum Percentage.

 

    1

     

    

 

“Bloomberg”
means Bloomberg Financial Markets.

 

“Business
Day” means any day except any Saturday, any Sunday or any day on which banking institutions in the State of New York
are authorized or required by law or other governmental action to close.

 

“Commission”
means the Securities and Exchange Commission.

 

“Credit and
Guaranty Agreement” means that certain Credit and Guaranty Agreement dated as of May 23, 2019, by and among Driftwood
Holdings LP (converted from Driftwood Holdings LLC), as borrower, the guarantors party thereto, the lenders from time to time party
thereto, and Wilmington Trust, N.A. as administrative agent and collateral agent for the lenders, as amended, restated, supplemented
or otherwise modified from time to time.

 

“Daily VWAP”
means, for any VWAP Trading Day, the per share volume-weighted average price of the Common Stock as displayed under the heading
 “Bloomberg VWAP” on Bloomberg page “TELL <EQUITY> VAP” (or, if such page is not available, its equivalent
successor page) in respect of the period from the scheduled open of trading until the scheduled close of trading of the primary
trading session on such VWAP Trading Day (or, if such volume-weighted average price is unavailable, the market value of one share
of Common Stock on such VWAP Trading Day, determined, using a volume-weighted average price method, by a nationally recognized
independent investment banking firm selected by the Company). The Daily VWAP will be determined without regard to after-hours trading
or any other trading outside of the regular trading session.

 

“Event of
Default” has the meaning set forth in the Credit and Guaranty Agreement.

 

“Exercise
Date” means the date on which a duly completed and executed Notice of Exercise has been delivered to the Company in accordance
with Section 2(a) of this Warrant.

 

“Fourth Amendment
to Credit and Guaranty Agreement” means that certain Fourth Amendment to Credit and Guaranty Agreement, dated as of September
21, 2020, by and among Driftwood Holdings LP (converted from Driftwood Holdings LLC), as borrower, the guarantors party thereto,
the lenders from time to time party thereto, and Wilmington Trust, N.A. as administrative agent and collateral agent for the lenders.

 

“Loans”
has the meaning set forth in the Credit and Guaranty Agreement.

 

“Permitted
Fund Transferees” means any fund or funds managed, directly or indirectly, by UBS O’Connor LLC, which funds are
managed by the same key persons that exercise managerial control and authority of Nineteen77 Capital Solutions A LP as of the Issue
Date.

 

“Person”
means an individual or corporation, partnership, trust, incorporated or unincorporated association, joint venture, limited liability
company, joint stock company, government (or an agency or subdivision thereof) or other entity of any kind.

 

“Trading Day”
means a day on which the principal Trading Market is open for trading.

 

    2

     

    

 

“Trading Market”
means any of the following markets or exchanges on which the Common Stock is listed or quoted for trading on the date in question:
the NYSE American, the Nasdaq Capital Market, the Nasdaq Global Market, the Nasdaq Global Select Market, the New York Stock Exchange,
OTCQB or OTCQX (or any successors to any of the foregoing).

 

“VWAP Market
Disruption Event” means, with respect to any date, (A) the failure by the principal U.S. national or regional securities
exchange on which the Common Stock is then listed, or, if the Common Stock is not then listed on a U.S. national or regional securities
exchange, the principal other market on which the Common Stock is then traded, to open for trading during its regular trading session
on such date; or (B) the occurrence or existence, for more than one half hour period in the aggregate, of any suspension or limitation
imposed on trading (by reason of movements in price exceeding limits permitted by the relevant exchange or otherwise) in the Common
Stock or in any options contracts or futures contracts relating to the Common Stock, and such suspension or limitation occurs or
exists at any time before 1:00 p.m., New York City time, on such date.

 

“VWAP Trading
Day” means a day on which (A) there is no VWAP Market Disruption Event; provided that the Holder, by notice to the Company,
may waive any such VWAP Market Disruption Event; and (B) trading in the Common Stock generally occurs on the principal U.S. national
or regional securities exchange on which the Common Stock is then listed or, if the Common Stock is not then listed on a U.S. national
or regional securities exchange, on the principal other market on which the Common Stock is then traded. If the Common Stock is
not so listed or traded, then “VWAP Trading Day” means a Business Day.

 

“Weighted
Average Price” means, for any security as of any date, the dollar volume-weighted average price for such security on
the Trading Market during the period beginning at 9:30:01 a.m., New York time (or such other time as the Trading Market publicly
announces is the official open of trading), and ending at 4:00:00 p.m., New York time (or such other time as the Principal Market
publicly announces is the official close of trading), as reported by Bloomberg through its “Volume at Price” function
or, if the foregoing does not apply, the dollar volume-weighted average price of such security in the over-the-counter market on
the electronic bulletin board for such security during the period beginning at 9:30:01 a.m., New York time (or such other time
as such market publicly announces is the official open of trading), and ending at 4:00:00 p.m., New York time (or such other time
as such market publicly announces is the official close of trading), as reported by Bloomberg, or, if no dollar volume-weighted
average price is reported for such security by Bloomberg for such hours, the average of the highest closing bid price and the lowest
closing ask price of any of the market makers for such security as reported in the OTC Link or “pink sheets” by OTC
Markets Group Inc. (formerly Pink OTC Markets Inc.). If the Weighted Average Price cannot be calculated for a security on a particular
date on any of the foregoing bases, the Weighted Average Price of such security on such date shall be the fair market value as
mutually determined by the Company and the Holder. All such determinations shall be appropriately adjusted for any stock dividend,
stock split, stock combination, reclassification or other similar transaction during the applicable calculation period.

 

    3

     

    

 

Section 2.         Exercise.

 

a)                
Exercise of Warrant. Exercise of the purchase rights represented by this Warrant may be made, in whole or in part
in increments of 25,000 Warrant Shares, subject to the following limitations:

 

i.           
Immediately upon the Issue Date, the aggregate amount of Warrant Shares in respect of which the purchase rights represented
by this Warrant may be exercised shall be 3,000,000 (the “First Tranche”) (as adjusted from time to time pursuant
to the terms of this Warrant and subject to Section 2(a)(v)); provided, that, until such date on which the aggregate principal
amount of the Loans is repaid in full, the Holder may not utilize the cashless exercise procedure specified in Section 2(c) hereof
with respect to any First Tranche Warrant Shares. Upon the exercise of this Warrant in respect of any First Tranche Warrant Shares
at any time prior to the repayment in full of the aggregate principal amount of the Loans, the Company shall use 100% of the cash
proceeds received in connection with such exercise to make a mandatory prepayment of the outstanding principal amount of the Loans
as required by and further described in Section 3(b) of the Fourth Amendment to the Credit and Guaranty Agreement. The period between
the Issue Date and March 22, 2021 is an “Exercise Period.”

 

ii.           
[Reserved]

 

iii.          
On March 23, 2021, the aggregate amount of Warrant Shares in respect of which the purchase rights represented by this Warrant
may be exercised shall be increased by 1,923,637 (the “Third Tranche”) (as adjusted from time to time pursuant
to the terms of this Warrant and subject to Section 2(a)(v)). The period between March 23, 2021 and June 22, 2021 is an “Exercise
Period.”

 

iv.         
On June 23, 2021, the aggregate amount of Warrant Shares in respect of which the purchase rights represented by this Warrant
may be exercised shall be increased by 1,923,637 (the “Fourth Tranche” and together with the First Tranche and
Third Tranche, each a “Tranche”) (as adjusted from time to time pursuant to the terms of this Warrant and subject
to Section 2(a)(v)). The period between June 23, 2021 and the Termination Date is an “Exercise Period.”

 

v.          
Notwithstanding anything to the contrary herein, in the event any portion of the outstanding principal amount of the Loans
is repaid in cash during an Exercise Period (including any such repayment on the Issue Date), the number of Warrant Shares represented
by each Tranche of each subsequent Exercise Period shall be equal to (A) the number of Warrant Shares represented by such Tranche
(as adjusted from time to time pursuant to the terms of this Warrant), multiplied by (B) a number that is the lesser of: (1) a
fraction, (x) the numerator of which is (I) $40,900,000; minus (II) as of the most recent Monthly Payment Date (as defined in the
Credit and Guaranty Agreement), the principal amount of the Loans (as defined in the Credit and Guaranty Agreement) that have been
repaid in cash after the Issue Date, and (y) the denominator of which is $37,900,000 and (2) 1.00. Further, in the event that the
outstanding balance of the Loans is repaid in full during an Exercise Period, then each Tranche with respect to all subsequent
Exercise Periods shall represent zero Warrant Shares.

 

    4

     

    

 

Subject to
the foregoing limitations, exercise of the purchase rights represented by this Warrant may be made, by delivery to the Company
of a duly completed and executed facsimile copy or PDF copy submitted by facsimile or e-mail attachment of the Notice of Exercise
in the form attached hereto (“Notice of Exercise”). Within two (2) Trading Days following delivery of the Notice
of Exercise, the Holder shall deliver the Aggregate Exercise Price to the Company, by wire transfer of immediately available funds
to an account designated by the Company in writing or cashier’s check drawn on a United States bank, unless the utilization
of the cashless exercise procedure specified in Section 2(c) below is specified in the applicable Notice of Exercise. No ink-original
Notice of Exercise shall be required, nor shall any medallion guarantee (or other type of guarantee or notarization) of any Notice
of Exercise be required. Notwithstanding anything in this Warrant to the contrary, the Holder shall not be required to physically
surrender this Warrant to the Company until the Holder has purchased all of the Warrant Shares available under this Warrant and
this Warrant has been exercised in full, in which case, the Holder shall surrender this Warrant to the Company for cancellation
at the same time that the final Notice of Exercise is delivered to the Company.

 

b)               
Partial Exercise. Any partial exercise of this Warrant resulting in the purchase of a portion of the total number
of Warrant Shares then available hereunder shall have the effect of lowering the outstanding number of Warrant Shares purchasable
hereunder by an amount equal to the applicable number of Warrant Shares purchased as a result of such partial exercise. The Company
shall maintain records reflecting the number of Warrant Shares purchased pursuant to the exercise of this Warrant and the date(s)
of such purchase(s).

 

c)                 Cashless
Exercise. Except as provided in Section 2(a)(i) hereof, this Warrant may be exercised, in whole or in part in increments of
25,000 Warrant Shares (and subject to the limitations on exercise set forth in Sections 2(a)(i)-(v)), at any time or times on
or after the Issue Date and on or prior to the Termination Date at the election of the Holder (in the Holder’s sole discretion)
by means of a “cashless exercise,” pursuant to which the Holder shall be entitled to receive a number of Warrant Shares
equal to the quotient obtained by dividing ((A-B) * (X)) by (A), where:

 

(A) = as applicable:
(i) the VWAP on the Trading Day immediately preceding the date of the applicable Notice of Exercise if such Notice of Exercise
is (1) both executed and delivered pursuant to Section 2(a) hereof on a day that is not a Trading Day or (2) both executed and
delivered pursuant to Section 2(a) hereof on a Trading Day prior to the opening of “regular trading hours” (as defined
in Rule 600(b)(68) of Regulation NMS promulgated under the federal securities laws) on such Trading Day, or (ii) the VWAP on the
date of the applicable Notice of Exercise if the date of such Notice of Exercise is a Trading Day and such Notice of Exercise is
both executed and delivered pursuant to Section 2(a) hereof during such Trading Day or after the close of “regular trading
hours” on such Trading Day;

 

    5

     

    

 

(B) = the
Exercise Price of this Warrant; and

 

(X) =
the number of Warrant Shares that would be issuable upon exercise of this Warrant in accordance with the terms of this Warrant
if such   exercise were by means of a cash exercise rather than a cashless exercise.

 

Any cashless
exercise of this Warrant shall have the effect of lowering the outstanding number of Warrant Shares purchasable hereunder by an
amount equal to the number of Warrant Shares that would be issuable upon exercise of this Warrant in accordance with the terms
of this Warrant if such exercise were by means of a cash exercise rather than a cashless exercise and not the number of Warrant
Shares actually received by the Holder.

 

For
purposes of Rule 144 promulgated under the Securities Act, it is intended, understood and acknowledged that any Warrant Shares
issued in a cashless exercise pursuant to this Section 2(c) shall be deemed to have been acquired by the Holder, and the holding
period for such Warrant Shares shall be deemed to have commenced, on the Issue Date.

 

“VWAP”
means, for any date, the price determined by the first of the following clauses that applies: (a) if the Common Stock is then listed
or quoted on a Trading Market, the daily volume weighted average price of the Common Stock for such date on the Trading Market
on which the Common Stock is then listed or quoted as reported by Bloomberg L.P., (b)  if the Common Stock is not then listed
or quoted for trading on a Trading Market and if prices for the Common Stock are then reported in the “Pink Sheets”
published by OTC Markets Group, Inc. (or a similar organization or agency succeeding to its functions of reporting prices), the
most recent bid price per share of the Common Stock so reported, or (c) in all other cases, the fair market value of a share
of Common Stock as determined by an independent appraiser selected in good faith by the Holder and reasonably acceptable to the
Company, the fees and expenses of which shall be paid by the Company.

 

Notwithstanding
anything in this Warrant to the contrary (except as set forth in Section 2(a)(i) hereof), on the Termination Date, this Warrant
shall be automatically exercised via cashless exercise pursuant to this Section 2(c) without any action on the part of the Holder.

 

    6

     

    

 

 d)                  Mechanics of Exercise.

 

i.           
Delivery of Warrant Shares Upon Exercise. The Company shall deliver, or shall cause to be delivered, the Warrant
Shares acquired hereunder to the Holder within one (1) Trading Day after the date on which the Aggregate Exercise Price has been
delivered pursuant to Section 2(a) (such date, the “Warrant Share Delivery Date”). Such Warrant Shares shall
be in certificated form and will bear an appropriate restrictive legend if required under the terms of this Warrant. The person
in whose name any Warrant Shares are to be issued upon exercise of this Warrant shall be deemed to have become the holder of record
of such shares on the date on which this Warrant was validly exercised, irrespective of the actual date of issuance of such Warrant
Shares, except that, if the date of such valid exercise is a date when the stock transfer books of the Company are closed, such
person shall be deemed to have become the holder of such Warrant Shares at the close of business on the next succeeding date on
which the stock transfer books are open.

 

ii.             
Delivery of New Warrants Upon Exercise. If this Warrant shall have been exercised in part, the Company shall, at
the request of a Holder and upon surrender of this Warrant certificate, at the time of delivery of the Warrant Shares, deliver
to the Holder a new Warrant evidencing the rights of the Holder to purchase the unpurchased Warrant Shares called for by this Warrant,
which new Warrant shall in all other respects be identical with this Warrant.

 

    7

     

    

 

iii.          
Company’s Failure to Timely Deliver Warrant Shares. If either (I) the Company shall fail for any reason or
for no reason on or prior to the applicable Warrant Share Delivery Date, if (x) the Company’s transfer agent is not participating
in The Depository Trust Company (“DTC”) Fast Automated Securities Transfer Program (“FAST”),
to issue to the Holder a certificate for the number of shares of Common Stock to which the Holder is entitled and register such
Common Stock on the Company’s share register or (y) the Company’s transfer agent is participating in FAST, to credit
the Holder’s balance account with DTC such number of shares of Common Stock to which the Holder is entitled upon the Holder’s
exercise of this Warrant or (II) a registration statement covering the issuance or resale of the Warrant Shares that are the subject
of the Notice of Exercise (the “Exercise Notice Warrant Shares”) is not available for the issuance or resale,
as applicable, of such Exercise Notice Warrant Shares and (x) the Company fails to promptly, but in no event later than two (2)
Business Days after such registration statement becomes unavailable, to so notify the Holder and (y) the Company is unable to deliver
the Exercise Notice Warrant Shares electronically without any restrictive legend by crediting such aggregate number of Exercise
Notice Warrant Shares to the Holder’s or its designee’s balance account with DTC through its Deposit / Withdrawal At
Custodian system (the event described in the immediately foregoing clause (II) is hereinafter referred as a “Notice Failure”
(provided that no Notice Failure shall be deemed to have occurred if the Exercise Notice Warrant Shares are freely tradeable upon
issuance to the Holder notwithstanding the unavailability of a registration statement and such shares do not bear any restrictive
legend) and together with the event described in clause (I) above, an “Exercise Failure”), then, in addition
to all other remedies available to the Holder, if on or prior to the applicable Warrant Share Delivery Date either (I) (x) if the
Company’s transfer agent is not participating in FAST and the Company shall have failed to issue and deliver a certificate
to the Holder and register such shares of Common Stock on the Company’s share register or, (y) if the Company’s transfer
agent is participating in FAST and the Company shall have failed to credit the Holder’s balance account with DTC the number
of shares of Common Stock to which the Holder is entitled upon the Holder’s exercise hereunder or pursuant to the Company’s
obligation pursuant to clause (ii) below, or (II) if a Notice Failure occurs, and if after such date the Holder is required by
its broker to purchase (in an open market transaction or otherwise) or the Holder’s brokerage firm otherwise purchases, shares
of Common Stock to deliver in satisfaction of a sale by the Holder of the Warrant Shares issuable hereunder pursuant to such exercise
and which the Holder anticipated receiving upon such exercise (a “Buy-In”), then the Company shall, within five
(5) Trading Days after the Holder’s request, (A) pay in cash to the Holder the amount, if any, by which (x) the Holder’s
total purchase price (including brokerage commissions, if any) for the shares of Common Stock so purchased exceeds (y) the amount
obtained by multiplying (1) the number of Warrant Shares that the Company was required to deliver to the Holder in connection with
the exercise at issue multiplied by (2) the price at which the sell order giving rise to such purchase obligation was executed,
and (B) at the option of the Holder, either reinstate the portion of the Warrant and equivalent number of Warrant Shares for which
such exercise was not honored (in which case such exercise shall be deemed rescinded) or deliver to the Holder the number of shares
of Common Stock that would have been issued had the Company timely complied with its exercise and delivery obligations hereunder.
For example, if the Holder purchases Common Stock having a total purchase price of $11,000 to cover a Buy-In with respect to an
attempted exercise of shares of Common Stock with an aggregate sale price giving rise to such purchase obligation of $10,000, under
clause (A) of the immediately preceding sentence the Company shall be required to pay the Holder $1,000. The Holder shall provide
the Company written notice indicating the amounts payable to the Holder in respect of the Buy-In and, upon request of the Company,
evidence of the amount of such loss. Nothing herein shall limit the Holder’s right to pursue any other remedies available
to it hereunder, at law or in equity including, without limitation, a decree of specific performance and/or injunctive relief with
respect to the Company’s failure to timely deliver shares of Common Stock upon exercise of this Warrant as required pursuant
to the terms hereof. In addition to the foregoing rights, (i) if the Company fails to deliver the applicable number of Warrant
Shares upon an exercise pursuant to Section 2(d)(i) by the applicable Warrant Share Delivery Date, then the Holder shall have the
right to rescind such exercise in whole or in part and retain and/or have the Company return, as the case may be, any portion of
this Warrant that has not been exercised pursuant to such Notice of Exercise; provided that the rescission of an exercise
shall not affect the Company’s obligation to make any payments that have accrued prior to the date of such notice pursuant
to this Section 2(d)(iii) or otherwise, and (ii) if a registration statement covering the issuance or resale of the Warrant Shares
that are subject to a Notice of Exercise is not available for the issuance or resale, as applicable, of such Exercise Notice Warrant
Shares and the Holder has submitted a Notice of Exercise prior to receiving notice of the non-availability of such registration
statement and the Company has not already delivered the Warrant Shares underlying such Notice of Exercise electronically without
any restrictive legend by crediting such aggregate number of Warrant Shares to which the Holder is entitled pursuant to such exercise
to the Holder’s or its designee’s balance account with DTC through its Deposit / Withdrawal At Custodian system, the
Holder shall have the option, by delivery of notice to the Company, to (x) rescind such Notice of Exercise in whole or in part
and retain or have returned, as the case may be, any portion of this Warrant that has not been exercised pursuant to such Notice
of Exercise; provided that the rescission of a Notice of Exercise shall not affect the Company’s obligation to make any payments
that have accrued prior to the date of such notice pursuant to this Section 2(d)(iii) or otherwise, and/or (y) to the extent permitted
hereunder, switch some or all of such Notice of Exercise from a cash exercise to a “cashless exercise” pursuant to
Section 2(c). In addition to the foregoing, if the Company fails for any reason to deliver to the Holder the Warrant Shares subject
to a Notice of Exercise by the third Trading Day following the Warrant Share Delivery Date, the Company shall pay to the Holder,
in cash, as liquidated damages and not as a penalty, for each $1,000 of Warrant Shares subject to such exercise (based on the Weighted
Average Price of the Common Stock on the date of the applicable Notice of Exercise), $10 per Trading Day (increasing to $20 per
Trading Day on the fifth Trading Day after such liquidated damages begin to accrue) for each Trading Day after the Share Delivery
Date until such Warrant Shares are delivered or Holder rescinds such exercise; provided, however, that, notwithstanding
the foregoing, (i) with respect to any particular Notice of Exercise, the Holder shall not be entitled to recover any liquidated
damages from the Company pursuant to this sentence above in connection with any failure to deliver any Exercise Notice Warrant
Shares to the Holder subject to such Notice of Exercise until the aggregate liquidated damages for which the Company would otherwise
be liable in respect of all failures to deliver Exercise Notice Warrant Shares hereunder (in the absence of this limitation) exceeds
$25,000 (the “LD Threshold”), after which the Holder shall be paid the aggregate amount of all such liquidated
damages in respect of all such failures to deliver Exercise Notice Warrant Shares hereunder from the first dollar thereof (including
the amount of the LD Threshold), and (ii) the maximum aggregate liquidated damages (cumulatively, inclusive of any and all liquidated
damages under this sentence) for which the Company will be liable will in no event exceed an amount equal to (A) $1,000,000, multiplied
by (B) a fraction (1) the numerator of which is the initial total number of Warrant Shares in respect of which this Warrant
may be exercised as of the Issuance Date, and (2) the denominator of which is 6,847,274, in each case, as proportionately adjusted
in accordance with the provisions of Section 3 hereof. Notwithstanding the foregoing, the rights and remedies for the benefit of
the Holder set forth in this Section 2(d)(iii) shall not apply with respect to the delivery of the First Tranche Warrant Shares
as a result of the imposition of, or failure to remove, the legend contemplated by Section 4(g)(ii) hereof in the manner provided
for in that section, and in no event will such imposition of, or failure to remove, such legend constitute either a Notice Failure
or an Exercise Failure.

 

    8

     

    

 

iv.         
No Fractional Shares or Scrip. No fractional shares or scrip representing fractional shares shall be issued upon
the exercise of this Warrant. As to any fraction of a share which the Holder would otherwise be entitled to purchase upon such
exercise, the Company shall, at its election, either (x) pay a cash adjustment in respect of such final fraction in an amount equal
to such fraction, multiplied by the Exercise Price or (y) round up to the next whole share.

 

v.          
Taxes. Issuance of Warrant Shares shall be made without charge to the Holder for any issue or transfer tax in respect
of the issuance of such Warrant Shares, all of which taxes shall be paid by the Company, and such Warrant Shares shall be issued
in the name of the Holder or in such name or names as may be directed by the Holder to the extent permitted under this Warrant;
provided, however, that in the event that Warrant Shares are to be so issued in a name other than the name of the
Holder, this Warrant when surrendered for exercise shall be accompanied by the assignment form attached hereto duly executed by
the Holder and the Company may require, as a condition thereto, the payment of a sum sufficient to reimburse it for any transfer
tax incidental thereto. For income tax purposes, the Holder agrees that the Company may withhold from any amounts payable to the
Holder or its permitted assignee or permitted transferee any taxes to be withheld from such amounts; provided that the Company
shall use reasonable efforts to notify the Holder of the Company’s intention to withhold such taxes and the reason therefor
prior to such withholding and the Company shall reasonably cooperate with the Holder to reduce or eliminate the amounts required
to be withheld.

 

    9

     

    

 

vi.         
Closing of Books. The Company will not close its stockholder books or records in any manner which prevents the timely
exercise of this Warrant, pursuant to the terms hereof.

 

Section 3.                  Certain
Adjustments.

 

a)               
Stock Dividends and Splits. If the Company, at any time while this Warrant is outstanding: (i) subdivides
outstanding shares of Common Stock into a larger number of shares, (ii) combines (including by way of reverse stock split) outstanding
shares of Common Stock into a smaller number of shares or (iii) issues by reclassification of shares of the Common Stock any shares
of capital stock of the Company, then in each case the Exercise Price shall be multiplied by a fraction of which the numerator
shall be the number of shares of Common Stock (excluding treasury shares, if any) outstanding immediately before such event and
of which the denominator shall be the number of shares of Common Stock outstanding immediately after such event, and the number
of shares issuable upon exercise of this Warrant (and the limitations set forth in Sections 2(a)(i)-(v)) shall be proportionately
adjusted such that the Aggregate Exercise Price in respect of the Warrant Shares that remain subject to this Warrant at such time
shall remain unchanged. Any adjustment made pursuant to this Section 3(a) shall become effective immediately after the record date
for the determination of stockholders entitled to receive such dividend or distribution and shall become effective immediately
after the effective date in the case of a subdivision, combination or re-classification.

 

b)               
Fundamental Transaction. If, at any time while this Warrant is outstanding, (i) the Company, directly or indirectly,
in one or more related transactions effects any merger or consolidation of the Company with or into another Person, (ii) the Company,
directly or indirectly, effects any sale, lease, license, assignment, transfer, conveyance or other disposition of all or substantially
all of its assets in one or a series of related transactions, (iii) any, direct or indirect, purchase offer, tender offer or exchange
offer (whether by the Company or another Person) is completed pursuant to which holders of Common Stock are permitted to sell,
tender or exchange their shares for other securities, cash or property and has been accepted by the holders of 50% or more of the
outstanding Common Stock, (iv) the Company, directly or indirectly, in one or more related transactions effects any reclassification,
reorganization or recapitalization of the Common Stock or any compulsory share exchange pursuant to which the Common Stock is effectively
converted into or exchanged for other securities, cash or property, or (v) the Company, directly or indirectly, in one or more
related transactions consummates a stock or share purchase agreement or other business combination (including, without limitation,
a reorganization, recapitalization, spin-off or scheme of arrangement) with another Person or group of Persons whereby such other
Person or group acquires more than 50% of the outstanding shares of Common Stock (not including any shares of Common Stock held
by the other Person or other Persons making or party to, or associated or affiliated with the other Persons making or party to,
such stock or share purchase agreement or other business combination) (each a “Fundamental Transaction”), then,
upon any subsequent exercise of this Warrant, the Holder shall have the right to receive, for each Warrant Share that would have
been issuable upon such exercise immediately prior to the occurrence of such Fundamental Transaction (as if the exercise of this
Warrant occurred immediately prior to the occurrence of such Fundamental Transaction), the number of shares of common stock of
the successor or acquiring corporation (if such successor or acquiring corporation assumed the obligations under this Warrant by
operation of law, provided that, in the absence of such assumption, immediately prior to the Fundamental Transaction, this Warrant
shall be automatically exercised via cashless exercise without any action on the part of the Holder) or shares of Common Stock
of the Company, if it is the surviving corporation, and any additional consideration (the “Alternate Consideration”)
receivable as a result of such Fundamental Transaction by a holder of the number of shares of Common Stock for which this Warrant
is exercisable immediately prior to such Fundamental Transaction. For purposes of any such exercise, the determination of the Exercise
Price shall be appropriately adjusted to apply to such Alternate Consideration based on the amount of Alternate Consideration issuable
in respect of one share of Common Stock in such Fundamental Transaction, and the Company shall apportion the Exercise Price among
the Alternate Consideration in a reasonable manner reflecting the relative value of any different components of the Alternate Consideration.
If holders of Common Stock are given any choice as to the securities, cash or property to be received in a Fundamental Transaction,
then the Holder shall be given the same choice as to the Alternate Consideration it receives upon any exercise of this Warrant
following such Fundamental Transaction.

 

    10

     

    

 

c)                
Calculations. All calculations under this Section 3 shall be made to the nearest cent or the nearest 1/100th of a
share, as the case may be. For purposes of this Section 3, the number of shares of Common Stock deemed to be issued and outstanding
as of a given date shall be the sum of the number of shares of Common Stock (excluding treasury shares, if any) issued and outstanding.
Notwithstanding anything to the contrary in this Section 3, if at any time the Exercise Price upon any adjustment thereto would
be less than par value per share of Common Stock, then the Exercise Price shall equal such par value.

 

d)               
Notice to Holder of Adjustment to Exercise Price. Whenever the Exercise Price is adjusted pursuant to any provision
of this Section 3, the Company shall within five (5) Trading Days deliver to the Holder by facsimile or email a notice setting
forth the Exercise Price after such adjustment and any resulting adjustment to the number of Warrant Shares and setting forth a
brief statement of the facts requiring such adjustment.

 

e)                
Rights Upon Distribution of Assets. In addition to any adjustments pursuant to this Section 3 above, if, on or after
the Issue Date and on or prior to the Expiration Date, the Company shall declare or make any dividend or other distribution of
its assets (or rights to acquire its assets) to holders of shares of Common Stock, by way of return of capital or otherwise (including,
without limitation, any distribution of cash, stock or other securities, property, options, evidence of indebtedness or any other
assets by way of a dividend, spin-off, reclassification, corporate rearrangement, scheme of arrangement or other similar transaction)
(a “Distribution”), at any time after the issuance of this Warrant, then, in each such case, the Holder shall
be entitled to participate in such Distribution to the same extent that the Holder would have participated therein if the Holder
had held the number of shares of Common Stock acquirable upon complete exercise of this Warrant (without regard to any limitations
or restrictions on exercise of this Warrant, including without limitation, the Maximum Percentage) immediately before the date
on which a record is taken for such Distribution, or, if no such record is taken, the date as of which the record holders of shares
of Common Stock are to be determined for the participation in such Distribution (provided, however, that to the extent
that the Holder's right to participate in any such Distribution would result in the Holder and the other Attribution Parties exceeding
the Maximum Percentage, then the Holder shall not be entitled to participate in such Distribution to such extent (and shall not
be entitled to beneficial ownership of such shares of Common Stock as a result of such Distribution (and beneficial ownership)
to such extent) and the portion of such Distribution shall be held in abeyance for the benefit of the Holder until such time or
times as its right thereto would not result in the Holder and the other Attribution Parties exceeding the Maximum Percentage, at
which time or times the Holder shall be granted such Distribution (and any Distributions declared or made on such initial Distribution
or on any subsequent Distribution held similarly in abeyance) to the same extent as if there had been no such limitation).

 

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Section
4.                  Transfer of Warrant.

 

a)               
Transferability. Subject to compliance with any applicable securities laws, this Warrant and all rights hereunder
(including, without limitation, any registration rights) are transferable to any Person, in whole or in part (but if in part, then
only in increments representing 25,000 Warrant Shares issuance pursuant hereto), upon surrender of this Warrant at the principal
office of the Company or its designated agent, together with a written assignment of this Warrant substantially in the form attached
hereto duly executed by the Holder or its agent or attorney and funds sufficient to pay any transfer taxes payable upon the making
of such transfer. Upon such surrender and, if required, such payment, the Company shall execute and deliver a new Warrant or Warrants
in the name of the Permitted Fund Transferee or Permitted Fund Transferees, as applicable, and in the denomination or denominations
specified in such instrument of assignment (provided that no new Warrant shall be exercisable for less than 25,000 Warrant Shares),
and shall issue to the assignor a new Warrant evidencing the portion of this Warrant not so assigned, and this Warrant shall promptly
be cancelled. This Warrant, if properly assigned in accordance herewith, may be exercised by a new holder for the purchase of Warrant
Shares without having a new Warrant issued.

 

b)               
New Warrants. This Warrant may be divided or combined with other Warrants upon presentation hereof at the aforesaid
office of the Company, together with a written notice specifying the names and denominations in which new Warrants are to be issued,
signed by the Holder or its agent or attorney; provided that no new Warrant shall be exercisable for less than 25,000 Warrant Shares.
Subject to compliance with Section 4(a), as to any transfer which may be involved in such division or combination, the Company
shall execute and deliver a new Warrant or Warrants in exchange for this Warrant or Warrants to be divided or combined in accordance
with such notice. All Warrants issued on transfers or exchanges shall be dated the original issue date and shall be identical with
this Warrant except as to the number of Warrant Shares issuable pursuant thereto.

 

c)               
Warrant Register. The Company shall register this Warrant, upon records to be maintained by the Company for that
purpose (the “Warrant Register”), in the name of the record Holder hereof from time to time. The Company may
deem and treat the registered Holder of this Warrant as the absolute owner hereof for the purpose of any exercise hereof or any
distribution to the Holder, and for all other purposes, absent actual notice to the contrary.

 

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d)            Representation by the Holder. The Holder, by the acceptance hereof, represents and warrants that:

 

i.          it is an “accredited investor” as defined in Regulation D of the Securities
Act; 

 

ii.         it is acquiring this Warrant and, upon any exercise hereof, will acquire the Warrant Shares issuable upon such exercise,
for investment for its own account and not with a view to or for distributing or reselling such Warrant Shares or any part thereof
in violation of the Securities Act or any applicable state securities law, except pursuant to sales registered or exempted under
the Securities Act.

 

iii.        it understands and acknowledges that this Warrant and the Warrant Shares to be issued upon exercise hereof are “restricted
securities” under the federal securities laws and may not be offered, sold, pledged or otherwise transferred expect (A) pursuant
to an exemption from registration under the Securities Act and, if the Company requests, upon delivery of an opinion of counsel
to such effect, in form and substance reasonably satisfactory to the Company or (B) pursuant to an effective registration statement
under the Securities Act, in each case in accordance with all applicable state securities laws and the securities laws of other
jurisdictions; and

 

iv.        it can bear the economic and financial risk of its investment for an indefinite period and has such knowledge and experience
in financial or business matters that it is capable of evaluating the merits and risks of the investment in the Warrant and the
Warrant Shares.

 

e)            Removal of Legends.

 

i.        Until such time as the Warrant Shares have been sold pursuant to an effective registration statement under the Securities
Act, or the Warrant Shares are eligible for resale pursuant to Rule 144 promulgated under the Securities Act without any restriction
as to the number of securities as of a particular date that can then be immediately sold, any certificate(s) representing the Warrant
Shares sold pursuant to this Agreement will be imprinted (and any Warrant Shares issued in book entry form will have a notation
in the Company’s stock transfer records) with a legend in substantially the following form (the “Securities Act
Legend”):

 

    13

     

    

 

THE SECURITIES
EVIDENCED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”),
OR THE SECURITIES LAWS OF ANY STATE OR OTHER JURISDICTION. THE SECURITIES EVIDENCED BY THIS CERTIFICATE MAY NOT BE OFFERED, SOLD,
PLEDGED OR OTHERWISE TRANSFERRED EXCEPT (1) PURSUANT TO AN EXEMPTION FROM REGISTRATION UNDER THE SECURITIES ACT and,
if the Company requests, upon delivery of an opinion of counsel to such effect, in form and substance reasonably satisfactory to
the Company OR (2) PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT, IN EACH CASE IN ACCORDANCE
WITH ALL APPLICABLE STATE SECURITIES LAWS AND THE SECURITIES LAWS OF OTHER JURISDICTIONS.

 

ii.       Except as set forth in Section 4(g)(ii) hereof, certificates evidencing the Warrant Shares shall not contain any legend
(including the Securities Act Legend): (i) while a registration statement covering the resale of such security is effective under
the Securities Act, (ii) if such Warrant Shares are eligible for sale under Rule 144, or (iii) if such legend is not required under
applicable requirements of the Securities Act (including judicial interpretations and pronouncements issued by the staff of the
Commission). If all or any portion of this Warrant is exercised at a time when there is an effective registration statement to
cover the resale of the Warrant Shares, or if such Warrant Shares may be sold under Rule 144 or if such legend is not otherwise
required under applicable requirements of the Securities Act (including judicial interpretations and pronouncements issued by the
staff of the Commission) then such Warrant Shares shall be issued free of any Securities Act Legend. The Company agrees that following
such time as such legend is no longer required under this Section 4(e)(iii) and upon the request of the Holder, the Company will,
no later than three (3) Trading Days following the delivery by a Holder to the Company of a certificate representing Warrant Shares,
as applicable, issued with a Securities Act Legend (such third Trading Day, the “Legend Removal Date”), deliver
or cause to be delivered to such Holder a certificate representing such shares that is free from any Securities Act Legend.

 

f)             Registration Rights. If at any time the Company shall determine to (x) prepare and file with the SEC a registration
statement for the sale of Common Stock or other equity securities of the Company, or (y) sell shares of Common Stock or other equity
securities of the Company in an underwritten offering pursuant to a registration statement filed with the SEC on Form S-3 (or any
successor form or other appropriate form promulgated under the Securities Act) for an offering to be made on a continuous or delayed
basis pursuant to Rule 415 promulgated under the Securities Act, in each case, either for its own account or for the account of
other holders of equity securities in the Company, the Company shall (i) promptly, but no less than ten (10) Business Days prior
to the anticipated filing date of the registration statement (in the case of clause (x) above) or such sale (in the case of clause
(y) above), give to each holder of Warrant Shares written notice thereof and (ii) subject to customary limitations (including,
without limitation, underwriter cutbacks) and receipt of customary information, representations and undertakings from the Holder,
include in such registration statement or sale, as applicable, all Warrant Shares specified in a written request or requests, made
by the holders of the Warrant Shares within five (5) Business Days after receipt of the notice from the Company described in clause
(i) above. For the avoidance of doubt, this Section 4(f) shall survive the exercise in full of this Warrant or, if this
exercise shall have been exercised in part or in full prior to such termination, the termination of this Warrant.

 

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g)            Sales Volume Limitation.

 

i.        In the event the Holder exercises this Warrant in respect of any First Tranche Warrant Shares and until all amounts outstanding
under the Credit and Guaranty Agreement are repaid in full, the Holder shall not sell an amount of First Tranche Warrant Shares
in any single Trading Day in excess of the greater of: (1) two percent (2%) of the reported daily volume of trading in the Common
Stock on the Trading Day on which the relevant sale was executed, as reported by the Trading Market on which the Common Stock is
then listed upon the close of market on such Trading Day, or (2) 100,000 shares of Common Stock (the “Sales Cap”).

 

ii.       Until such time as such legend is removed pursuant to Section 4(g)(iii) hereof, any certificate(s) representing First Tranche
Warrant Shares will be imprinted (and any First Tranche Warrant Shares issued in book entry form will have a notation in the Company’s
stock transfer records) with a legend in substantially the following form:

 

THE SECURITIES
EVIDENCED BY THIS CERTIFICATE ARE SUBJECT TO CERTAIN RESTRICTIONS AGAINST TRANSFER BY THE TERMS OF AN AMENDED AND RESTATED WARRANT
AGREEMENT, DATED AS OF SEPTEMBER 21, 2020, A COPY OF WHICH IS ON FILE AT THE PRINCIPAL OFFICE OF THE CORPORATION.

 

iii.      The Company shall, within two Trading Days following its receipt from the Holder of (i)
a trading confirmation, as provided by either (A) a selling broker, (B) a trade execution report from a trading order management
system of the Holder, (C) a prime brokerage statement of trading activity or (D) other as reasonably agreed between the Holder
and the Company, that confirms (1) the date on which any First Tranche Warrant Shares were sold and (2) the number of First Tranche
Warrant Shares sold (“Sold First Tranche Warrant Shares”); provided that the Holder may redact or anonymize
all information other than (1) and (2); and (ii) any documentation requested by the Company’s transfer agent required to
remove the legend referenced in Section 4(g)(ii) hereof (the “Required Documentation”), cause such legend
to be removed on a number of First Tranche Warrant Shares that is the lesser of the (1) Sold First Tranche Warrant Shares and (2)
Sales Cap. Required Documentation shall be deemed to have been received on a particular Trading Day only if received by the Company
and its transfer agent, as applicable, by 5:00 p.m. Central time on such Trading Day.

 

    15

     

    

 

Section 5.              Miscellaneous.

 

a)             No Rights as Stockholder Until Exercise. This Warrant does not entitle the Holder to any voting rights, dividends
or other rights as a stockholder of the Company prior to the exercise hereof as set forth in Section 2(d)(i).

 

b)             Loss, Theft, Destruction or Mutilation of Warrant. The Company covenants that upon receipt by the Company of evidence
reasonably satisfactory to it of the loss, theft, destruction or mutilation of this Warrant or any stock certificate relating to
the Warrant Shares, and in case of loss, theft or destruction, of an affidavit of loss and indemnity or security reasonably satisfactory
to it (which, in the case of this Warrant, shall not include the posting of any bond), and upon surrender and cancellation of such
Warrant or stock certificate, if mutilated, the Company will make and deliver a new Warrant or stock certificate of like tenor
and dated as of such cancellation, in lieu of such Warrant or stock certificate.

 

c)             Saturdays, Sundays, Holidays, etc. If the last or appointed day for the taking of any action or the expiration of
any right required or granted in this Warrant is not a Business Day, then, such action may be taken or such right may be exercised
on the next succeeding Business Day.

 

d)             Authorized Shares.

 

i.        During the period this Warrant is outstanding from and after the Issue Date, the Company covenants that it will reserve
from its authorized and unissued Common Stock a sufficient number of shares to provide for the issuance of the Warrant Shares upon
the exercise of any purchase rights under this Warrant. The Company further covenants that its issuance of this Warrant shall constitute
full authority to its officers who are charged with the duty of issuing the necessary Warrant Shares upon the exercise of the purchase
rights under this Warrant. The Company will take all such reasonable action as may be necessary to assure that such Warrant Shares
may be issued as provided in this Warrant without violation of any applicable law or regulation, or of any requirements of the
Trading Market upon which the Common Stock may be listed. The Company covenants that all Warrant Shares which may be issued upon
the exercise of the purchase rights represented by this Warrant will, upon exercise of the purchase rights represented by this
Warrant and payment for such Warrant Shares in accordance herewith, be duly authorized, validly issued, fully paid and nonassessable
and free from all taxes, liens and charges created by the Company in respect of the issue thereof (other than taxes in respect
of any transfer occurring contemporaneously with such issue or the Holder’s income taxes).

 

    16

     

    

 

ii.        Except and to the extent as waived or consented to by the Holder, the Company shall not by any action, including, without
limitation, amending its certificate of incorporation or through any reorganization, transfer of assets, consolidation, merger,
dissolution, issue or sale of securities or any other voluntary action, avoid or seek to avoid the observance or performance of
any of the terms of this Warrant, but will at all times in good faith assist in the carrying out of all such terms and in the taking
of all such actions as may be necessary or appropriate to protect the rights of Holder as set forth in this Warrant against impairment.
Without limiting the generality of the foregoing, the Company will (i) not increase the par value of any Warrant Shares above the
amount payable therefor upon such exercise immediately prior to such increase in par value, (ii) take all such action as may be
necessary or appropriate in order that the Company may validly and legally issue fully paid and nonassessable Warrant Shares upon
the exercise of this Warrant and (iii) use commercially reasonable efforts to obtain all such authorizations, exemptions or consents
from any public regulatory body having jurisdiction thereof, as may be, necessary to enable the Company to perform its obligations
under this Warrant.

 

iii.       Before taking any action which would result in an adjustment in the number of Warrant Shares for which this Warrant is exercisable
or in the Exercise Price, the Company shall use commercially reasonable efforts to obtain all such authorizations or exemptions
thereof, or consents thereto, as may be necessary from any public regulatory body or bodies having jurisdiction thereof.

 

iv.      In addition to the foregoing, in the event of any failure by the Company to reserve from its authorized and unissued Common
Stock a sufficient number of shares to provide for the issuance of the Warrant Shares upon the exercise of any purchase rights
under this Warrant that results in the failure of the Company to deliver any shares of Common Stock that would have otherwise been
deliverable pursuant to a Notice of Exercise (such shares the “Authorized Shares Failure Shares”), (1) the Company
will promptly pay to the Holder, as liquidated damages and not as a penalty, cash in an amount equal (i) to the product of (x)
the number of such Authorized Shares Failure Shares; and (y) the Daily VWAP per share of Common Stock on the date the Holder delivered
the applicable Notice of Exercise hereunder (or, if such date is not a VWAP Trading Day, the immediately preceding VWAP Trading
Day), minus (ii) if such exercise is not a cashless exercise the Aggregate Exercise Price applicable to such Authorized
Shares Failure Shares, to the extent not previously paid; and (2) to the extent the Holder purchases (in an open market transaction
or otherwise) shares of Common Stock to deliver in settlement of a sale by the Holder of such Authorized Shares Failure Shares,
the Company will reimburse the Holder for (x) any brokerage commissions and other out-of-pocket expenses, if any, of the Holder
incurred in connection with such purchases and (y) the excess, if any, of (A) the aggregate purchase price of such purchases over
(B) an amount equal to (i) the product of (I) the number of such Authorized Shares Failure Shares purchased by the Holder; and
(II) the Daily VWAP per share of Common Stock on the date the Holder delivered the applicable Notice of Exercise hereunder (or,
if such date is not a VWAP Trading Day, the immediately preceding VWAP Trading Day), minus (ii) if such exercise is not
a cashless exercise, the Aggregate Exercise Price applicable to such Authorized Shares Failure Shares, to the extent not previously
paid.

 

    17

     

    

 

e)             Jurisdiction. This Warrant shall be interpreted and enforced in accordance with and governed by the laws of the State
of Delaware applicable to agreements made and to be performed wholly within that jurisdiction without regard to conflicts of laws
principles thereof that would result in the application of the law of any other jurisdiction.

 

f)              Restrictions. The Holder acknowledges that the Warrant Shares acquired upon the exercise of this Warrant, if not
registered and the Holder does not utilize cashless exercise, will have restrictions upon resale imposed by state and federal securities
laws.

 

g)             Nonwaiver and Expenses. No course of dealing or any delay or failure to exercise any right hereunder on the part
of Holder shall operate as a waiver of such right or otherwise prejudice the Holder’s rights, powers or remedies, notwithstanding
the fact that all rights hereunder (other than the Holder’s rights set forth in Section 4(f)) terminate on the Termination
Date. If the Company willfully and knowingly fails to comply with any provision of this Warrant, which results in any material
damages to the Holder, the Company shall pay to the Holder such amounts as shall be sufficient to cover any out-of-pocket costs
and expenses including, but not limited to, reasonable attorneys’ fees, including those of appellate proceedings, incurred
by the Holder in collecting any amounts due pursuant hereto or in otherwise enforcing any of its rights, powers or remedies hereunder.

 

h)             Notices. All notices and other communications provided for hereunder shall be (i) in writing (including facsimile
and email) and (ii) sent by facsimile, email or overnight courier (if for inland delivery) or international courier (if for overseas
delivery) to a party hereto at its address and contact number specified below, or at such other address and contact number as is
designated by such party in a written notice to the other parties hereto:

 

		i.	The Company:

 

	 	
        Tellurian Inc.

        1201 Louisiana St

        Suite 3100

        Houston, TX 77002

        Attention: Legal

        Email: legal.notices@tellurianinc.com 

 

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		ii.	The Holder:

 

	 	
        Nineteen77 Capital Solutions A LP

        c/o UBS O’Connor LLC

        787 7th Avenue, 13th Floor

        New York, NY 10019

        Attention: Rodrigo Trelles

        Email: OL-OCS@ubs.com 

	 	 
	with copies (which shall not constitute notice) to:	
        Nineteen77 Capital Solutions A LP

        c/o UBS O’Connor LLC

        UBS Tower

        1 N. Wacker Drive

        Chicago, IL 60606

        Attention: Andrew Hollenbeck

        Email: andrew.hollenbeck@ubs.com 

	 	 
	with copies (which shall not constitute notice) to:	
        Latham & Watkins LLP

        885 Third Avenue

        New York, NY 10022

        Attention: Matthew Henegar

        Telephone No.: 212-906-1814

        Email: matthew.henegar@lw.com

         

        Latham & Watkins LLP

        885 Third Avenue

        New York, NY 10022

        Attention: David E. Owen

        Telephone No.: 212-906-4503

        Email: david.owen@lw.com 

	 	 

All notices and communications
shall be effective when received by the addressee thereof during business hours on a Business Day in such Person’s location
as indicated by such Person’s address above, or at such other address as is designated by such Person in a written notice
to the other parties hereto.

 

i)              Limitation of Liability. No provision hereof, in the absence of any affirmative action by the Holder to exercise
this Warrant to purchase Warrant Shares, and no enumeration herein of the rights or privileges of the Holder, shall give rise to
any liability of the Holder for the purchase price of any Common Stock or as a stockholder of the Company, whether such liability
is asserted by the Company or by creditors of the Company.

 

j)              Remedies. The Holder, in addition to being entitled to exercise all rights granted by law, including recovery of
damages, will be entitled to specific performance of its rights under this Warrant. The Company agrees that monetary damages would
not be adequate compensation for any loss incurred by reason of a breach by it of the provisions of this Warrant and hereby agrees
to waive and not to assert the defense in any action for specific performance that a remedy at law would be adequate.

 

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k)             Successors and Assigns. Subject to applicable securities laws, this Warrant and the rights and obligations evidenced
hereby shall inure to the benefit of and be binding upon the successors and permitted assigns of the Company and the successors
and permitted assigns of Holder. The provisions of this Warrant are intended to be for the benefit of any Holder from time to time
of this Warrant and shall be enforceable by the Holder or holder of Warrant Shares.

 

l)              Amendment. This Warrant may be modified or amended or the provisions hereof waived with the written consent of the
Company and the Holder.

 

m)            Severability. Wherever possible, each provision of this Warrant shall be interpreted in such manner as to be effective
and valid under applicable law, but if any provision of this Warrant shall be prohibited by or invalid under applicable law, such
provision shall be ineffective to the extent of such prohibition or invalidity, without invalidating the remainder of such provisions
or the remaining provisions of this Warrant.

 

n)             Headings. The headings used in this Warrant are for the convenience of reference only and shall not, for any purpose,
be deemed a part of this Warrant.

 

o)             Tax Treatment. This Warrant has been issued as part of an “investment unit” (within the meaning of Treasury
Regulations Section 1.1273-2(h)), consisting of this Warrant and loans advanced by the Holder pursuant to the Credit and Guaranty
Agreement. The Company and the Holder agree that solely for purposes of Treasury Regulations Section 1.1273-2(h), the initial issue
price of such loans and the fair market value and purchase price of this Warrant shall be amounts reasonably agreed by the Holder
and the Company within thirty (30) days after the Issue Date. The Company and the Holder shall file all income tax returns consistent
with the foregoing tax treatment, including the issue price and purchase price specified in the preceding sentence.

 

    20

     

    

 

p)             Limitation on Exercise. Notwithstanding anything to the contrary contained herein, the Company shall not effect the
exercise of any portion of this Warrant, and the Holder shall not have the right to exercise any portion of this Warrant, pursuant
to the terms and conditions of this Warrant and any such exercise shall be null and void and treated as if never made, to the extent
that after giving effect to such exercise, the Holder together with the other Attribution Parties collectively would beneficially
own in the aggregate in excess of 9.99% (the “Maximum Percentage”) of the number of shares of Common Stock outstanding
immediately after giving effect to such exercise. For purposes of this Section 5(p), beneficial ownership shall be calculated in
accordance with Section 13(d) of the Securities Exchange Act of 1934, as amended (the “1934 Act”). For purposes
of this Warrant, in determining the number of outstanding shares of Common Stock the Holder may acquire upon the exercise of this
Warrant without exceeding the Maximum Percentage, the Holder may rely on the number of outstanding shares of Common Stock as reflected
in (x) the Company’s most recent Annual Report on Form 10-K, Quarterly Report on Form 10-Q and Current Reports on Form 8-K
or other public filing with the Securities and Exchange Commission (the “SEC”), as the case may be, (y) a more
recent public announcement by the Company or (z) any other written notice by the Company or the Transfer Agent setting forth the
number of shares of Common Stock outstanding (the “Reported Outstanding Share Number”). If the Company receives
an Exercise Notice from the Holder at a time when the actual number of outstanding shares of Common Stock is less than the Reported
Outstanding Share Number, the Company shall (i) notify the Holder in writing of the number of shares of Common Stock then outstanding
and, to the extent that such Exercise Notice would otherwise cause the Holder’s beneficial ownership, as determined pursuant
to this Section 5(p), to exceed the Maximum Percentage, the Holder must notify the Company of a reduced number of Warrant Shares
to be purchased pursuant to such Exercise Notice (the number of shares by which such purchase is reduced, the “Reduction
Shares”) and (ii) as soon as reasonably practicable, the Company shall return to the Holder the Aggregate Exercise Price
(or applicable portion thereof) paid by the Holder for the Reduction Shares. For any reason at any time, upon the written or oral
request of the Holder, the Company shall within one (1) Business Day confirm orally and in writing or by electronic mail to the
Holder the number of shares of Common Stock then outstanding. In any case, the number of outstanding shares of Common Stock shall
be determined after giving effect to the conversion or exercise of securities of the Company, including this Warrant, by the Holder
and any other Attribution Party since the date as of which the Reported Outstanding Share Number was reported. In the event that
the issuance of Common Stock to the Holder upon exercise of this Warrant results in the Holder and the other Attribution Parties
being deemed to beneficially own, in the aggregate, more than the Maximum Percentage of the number of outstanding shares of Common
Stock (as determined under Section 13(d) of the 1934 Act), the number of shares so issued by which the Holder’s and the other
Attribution Parties’ aggregate beneficial ownership exceeds the Maximum Percentage (the “Excess Shares”)
shall be deemed null and void and shall be cancelled ab initio, and the Holder shall not have the power to vote or to transfer
the Excess Shares. As soon as reasonably practicable after the issuance of the Excess Shares has been deemed null and void, the
Company shall return to the Holder the Aggregate Exercise Price (or applicable portion thereof) paid by the Holder for the Excess
Shares. Upon delivery of a written notice to the Company, the Holder may from time to time increase or decrease the Maximum Percentage
to any other percentage not in excess of 9.99% as specified in such notice; provided that (i) any such increase in the Maximum
Percentage will not be effective until the sixty-first (61st) day after such notice is delivered to the Company and
(ii) any such increase or decrease will apply only to the Holder and the other Attribution Parties and not to any other holder
of Warrants that is not an Attribution Party of the Holder. For purposes of clarity, the shares of Common Stock issuable pursuant
to the terms of this Warrant in excess of the Maximum Percentage shall not be deemed to be beneficially owned by the Holder for
any purpose including for purposes of Section 13(d) or Rule 16a-1(a)(1) of the 1934 Act. No prior inability to exercise this Warrant
pursuant to this paragraph shall have any effect on the applicability of the provisions of this paragraph with respect to any subsequent
determination of exercisability. The provisions of this paragraph shall be construed and implemented in a manner otherwise than
in strict conformity with the terms of this Section 5(p) to the extent necessary to correct this paragraph or any portion of this
paragraph which may be defective or inconsistent with the intended beneficial ownership limitation contained in this Section 5(p)
or to make changes or supplements necessary or desirable to properly give effect to such limitation. The limitation contained in
this paragraph may not be waived and shall apply to a successor holder of this Warrant. The Holder hereby acknowledges and agrees
that the Company shall be entitled to rely on the representations and other information set forth in any Exercise Notice and shall
not be required to independently verify whether any exercise of this Warrant would cause the Holder (together with the other Attribution
Parties) to collectively beneficially own in excess of the Maximum Percentage of the number of shares of Common Stock outstanding
after giving effect to such exercise or otherwise trigger the provisions of this Section 5(p).

 

********************

 

(Signature Page Follows)

 

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IN WITNESS WHEREOF, the
Company has caused this Warrant to be executed by its officer thereunto duly authorized as of the date first above indicated.

 

	 	TELLURIAN INC.
	 	 
	 	 
	 	By:	/s/ Kian Granmayeh
	 	 	Name: 	Kian Granmayeh
	 	 	Title: 	Chief Financial Officer

 

[Signature
page to Amended Warrant]

 

    

     

    

 

NOTICE OF EXERCISE

 

	To:	TELLURIAN INC.

 

(1)  
The undersigned hereby elects to purchase ________ Warrant Shares of the Company pursuant to the terms of the attached Warrant
(only if exercised in full), and tenders herewith payment of the exercise price in full.

 

(2)  
Exercise Price: $___________

 

(3)  
Payment shall take the form of (check applicable box):

 

[ ] in lawful
money of the United States; or

 

[ ] the cancellation
of such number of Warrant Shares as is necessary, in accordance with the formula set forth in subsection 2(c), to exercise this
Warrant with respect to the maximum number of Warrant Shares purchasable pursuant to the cashless exercise procedure set forth
in subsection 2(c).

 

(4)  
Please issue said Warrant Shares in the name of the undersigned or in such other name as is specified below:

 

_______________________________

 

(5)  
Accredited Investor. The undersigned is an “accredited investor” as defined in Regulation D promulgated
under the Securities Act of 1933, as amended, and reaffirms as of the date hereof, the representations and warranties set forth
in Section 4(d) of the Warrant.

 

(6)  
Maximum Percentage Representation. Notwithstanding anything to the contrary contained herein, this Notice of Exercise
shall constitute a representation by the Holder that, after giving effect to the exercise provided for in this Notice of Exercise,
the Holder (together with the other Attribution Parties) will not have beneficial ownership of a number of shares of Common Stock
in excess of the Maximum Percentage of the total outstanding shares of Common Stock of the Company as determined pursuant to the
provisions of Section 5(p) of the Warrant and utilizing a Reported Outstanding Share Number (as provided or reported by the Company,
as applicable) equal to ______________.

 

[SIGNATURE
OF HOLDER]

 

	Name of Investing Entity:	 

 

	Signature of Authorized Signatory of
Investing Entity: 	 

 

	Name of Authorized Signatory:	 

 

	Title of Authorized Signatory:	 

 

	Date: 	 

 

	Address: 	 

 

    

     

    

 

ASSIGNMENT
FORM

 

(To assign the foregoing Warrant, execute
this form and supply required information. Do not use this form to purchase shares.)

 

FOR VALUE RECEIVED, the foregoing Warrant
and all rights evidenced thereby are hereby assigned to

 

	Name:	
	 	(Please Print)
	Address:	
	 	 
	 	(Please Print)
	 	 
	Phone
        Number:	 
	 	 
	Email
        Address:	 
	 	 
	Dated: _______________ __, ________________	 
	 	 
	Holder’s Signature:	 	 
	 	 	 
	Holder’s Address:

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