Document:

Exhibit 10.1

 

Execution Version

 

 

CREDIT AGREEMENT

dated as of October 23, 2019

by and among

FRANCHISE GROUP INTERMEDIATE S, LLC,

as Holdings,

FRANCHISE GROUP NEWCO S, LLC,

as Borrower,

any Subsidiaries of Borrower party hereto as Guarantors,

 

each other Affiliate of Borrower party
hereto,

VARIOUS LENDERS FROM TIME TO TIME PARTY HERETO,

and

GUGGENHEIM CREDIT SERVICES, LLC,

as Administrative Agent and Collateral Agent

 

 

 

     

     

    

 

TABLE OF CONTENTS

 

	 	Page
	ARTICLE I DEFINITIONS AND INTERPRETATION	1
	Section 1.01   Definitions	1
	Section 1.02   Accounting and Other Terms	48
	Section 1.03   Construction	49
	Section 1.04   Time References	50
	Section 1.05   Effect  of Benchmark Transition Event	50
	ARTICLE II LOANS	54
	Section 2.01   Term Loans	54
	Section 2.02   [Reserved]	55
	Section 2.03   Protective Advances	55
	Section 2.04   Pro Rata Shares; Availability of Funds	56
	Section 2.05   Use of Proceeds	56
	Section 2.06   Evidence of Debt; Register; Lenders’ Books and Records; Notes	57
	Section 2.07   Interest	57
	Section 2.08   Conversion/Continuation	59
	Section 2.09   Default Interest	59
	Section 2.10   Fees	59
	Section 2.11   Repayments of Loans and Commitment Reductions	61
	Section 2.12   Voluntary Prepayments	61
	Section 2.13   Mandatory Prepayments	62
	Section 2.14   Application of Prepayments/Reductions	64
	Section 2.15   General Provisions Regarding Payments	65
	Section 2.16   Ratable Sharing	67
	Section 2.17   Making or Maintaining LIBOR Rate Loans	67
	Section 2.18   Increased Costs	69
	Section 2.19   Taxes; Withholding, etc.	70
	Section 2.20   Obligation to Mitigate	73
	Section 2.21   Defaulting Lenders	74
	Section 2.22   Removal or Replacement of a Lender	74
	ARTICLE III CONDITIONS PRECEDENT	75
	Section 3.01   Closing Date	75
	ARTICLE IV REPRESENTATIONS AND WARRANTIES	78
	Section 4.01   Organization; Requisite Power and Authority; Qualification	78
	Section 4.02   Capital Stock and Ownership	78
	Section 4.03   Due Authorization	78
	Section 4.04   No Conflict	79
	Section 4.05   Governmental Consents	79

 

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TABLE OF CONTENTS

 

	 	Page
	Section 4.06   Binding Obligation	79
	Section 4.07   Historical Financial Statements	79
	Section 4.08   Projections	80
	Section 4.09   No Material Adverse Effect	80
	Section 4.10   Adverse Proceedings, etc.	80
	Section 4.11   Payment of Taxes	80
	Section 4.12   Properties	80
	Section 4.13   Environmental Matters	81
	Section 4.14   Eligible Credit Card Receivables	81
	Section 4.15   Eligible Inventory	82
	Section 4.16   Governmental Regulation	82
	Section 4.17   Margin Stock	82
	Section 4.18   Employee Matters	82
	Section 4.19   Employee Benefit Plans	83
	Section 4.20   Certain Fees	83
	Section 4.21   Solvency	83
	Section 4.22   Gift Cards, Points Programs, and Other Incentive Programs	83
	Section 4.23   Compliance with Statutes, etc	84
	Section 4.24   Intellectual Property	84
	Section 4.25   Inventory and Equipment	84
	Section 4.27   Insurance	85
	Section 4.28   Franchise Agreements	85
	Section 4.29   Permits, etc.	85
	Section 4.30   Cash Mangement	86
	Section 4.31   Security Interests	86
	Section 4.32   PATRIOT ACT	86
	Section 4.33   OFAC/Sanctions	86
	Section 4.34   Disclosure	87
	Section 4.35   Use of Proceeds	87
	ARTICLE V AFFIRMATIVE COVENANTS	87
	Section 5.01   Financial Statements and Other Reports	87
	Section 5.02   Existence	92
	Section 5.03   Payment of Taxes and Claims	92
	Section 5.04   Maintenance of Properties	92
	Section 5.05   Insurance	93
	Section 5.06   Inspections	93
	Section 5.07   Lenders Meetings and Conference Calls	94
	Section 5.08   Compliance with Laws	94
	Section 5.09   Environmental	94
	Section 5.10   Subsidiaries	95
	Section 5.11   Additional Material Real Estate Assets	96

 

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TABLE OF CONTENTS

 

	 	Page
	Section 5.12   Location of Inventory and Equipment	97
	Section 5.13   Further Assurances	97
	Section 5.14   [Reserved]	97
	Section 5.15   [Reserved]	97
	Section 5.16   Post-Closing Matters	97
	Section 5.17   Use of Proceeds	98
	Section 5.18   Franchise Agreements	98
	ARTICLE VI NEGATIVE COVENANTS	98
	Section 6.01   Indebtedness	98
	Section 6.02   Liens	98
	Section 6.03   Equitable Lien	98
	Section 6.04   No Further Negative Pledges	98
	Section 6.05   Restricted Junior Payments	99
	Section 6.06   Restrictions on Subsidiary Distributions	100
	Section 6.07   Investments	100
	Section 6.08   Financial Covenants	101
	Section 6.09   Fundamental Changes; Disposition of Assets; Acquisitions	103
	Section 6.10   Disposal of Subsidiary Interests	104
	Section 6.11   Sales and Lease Backs	105
	Section 6.12   Transactions with Affiliates	105
	Section 6.13   Conduct of Business	106
	Section 6.14   Permitted Activities of Holdings, Global Parent, Liberty Top Parent, and S/B Parent	106
	Section 6.15   Changes to Certain Agreements and Organizational Documents	108
	Section 6.16   Accounting Methods	109
	Section 6.17   Cash Management	109
	Section 6.18   Prepayments of Certain Indebtedness	110
	Section 6.19   Issuance of Capital Stock	111
	Section 6.20   Anti-Terrorism Laws	111
	Section 6.21   Franchise Agreements	111
	ARTICLE VII GUARANTY	111
	Section 7.01   Guaranty of the Obligations	111
	Section 7.02   Contribution by Guarantors	111
	Section 7.03   Payment by Guarantors	112
	Section 7.04   Liability of Guarantors Absolute	112
	Section 7.05   Waivers by Guarantors	114
	Section 7.06   Guarantors’ Rights of Subrogation, Contribution, etc	115
	Section 7.07   Subordination of Other Obligations	115
	Section 7.08   Continuing Guaranty	115
	Section 7.09   Authority of Guarantors or Borrower	116

 

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TABLE OF CONTENTS

 

	 	Page
	Section 7.10   Financial Condition of Borrower	116
	Section 7.11   Bankruptcy, etc	116
	Section 7.12   Discharge of Guaranty Upon Sale of Guarantor	117
	ARTICLE VIII EVENTS OF DEFAULT	117
	Section 8.01   Events of Default	117
	Section 8.02   Curative Equity	120
	ARTICLE IX ADMINISTRATIVE AGENT	121
	Section 9.01   Appointment of Agents	122
	Section 9.02   Powers and Duties	122
	Section 9.03   General Immunity	122
	Section 9.04   Agents Entitled to Act as Lender	124
	Section 9.05   Lenders’ Representations, Warranties and Acknowledgment	124
	Section 9.06   Right to Indemnity	124
	Section 9.07   Successor Administrative Agent	125
	Section 9.08   Collateral Documents and Guaranty	127
	Section 9.09   Agency for Perfection	127
	Section 9.10   [Reserved]	128
	Section 9.11   Reports and Other Information; Confidentiality; Disclaimers	128
	ARTICLE X MISCELLANEOUS	129
	Section 10.01   Notices	129
	Section 10.02   Expenses	130
	Section 10.03   Indemnity	131
	Section 10.04   Setoff	132
	Section 10.05   Amendments and Waivers	132
	Section 10.06   Successors and Assigns; Participations	134
	Section 10.07   Independence of Covenants	138
	Section 10.08   Survival of Representations, Warranties, and Agreements	138
	Section 10.09   No Waiver; Remedies Cumulative	138
	Section 10.10   Marshalling; Payments Set Aside	138
	Section 10.11   Severability	139
	Section 10.12   Obligations Several; Independent Nature of Lenders’ Rights	139
	Section 10.13   Headings	139
	Section 10.14   APPLICABLE LAW	139
	Section 10.15   CONSENT TO JURISDICTION	139
	Section 10.16   WAIVER OF JURY TRIAL	140
	Section 10.17   Confidentiality	140
	Section 10.18   Usury Savings Clause	142
	Section 10.19   Counterparts	142

 

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TABLE OF CONTENTS

 

	 	Page
	Section 10.20   Effectiveness	142
	Section 10.21   Acknowledgement and Consent to Bail-In of EEA Financial Institutions	142
	Section 10.22   PATRIOT Act Notice	143

 

 

 

 

 

 

 

 

 

 

 

    	 	-v-	 

     

    

 

 

 

 

	APPENDICES:	A	Term Loan Commitments
	 	B	Notice Addresses
	 	 	 
	 	 	 
	SCHEDULES:	1.1	Third Party Franchisees
	 	4.1	Jurisdiction of Organization
	 	4.2	Capital Stock and Ownership
	 	4.12	Material Real Estate Assets
	 	4.13	Environmental Matters
	 	4.24	Intellectual Property
	 	4.25	Inventory and Equipment
	 	4.27	Insurance
	 	4.30	Bank Accounts and Securities Accounts
	 	5.1	Performance Information
	 	5.16	Certain Post Closing Matters
	 	6.1	Certain Indebtedness
	 	6.2	Certain Liens
	 	6.5	Quarterly Dividend Leverage Ratio
	 	6.7	Certain Investments
	 	6.12	Certain Affiliate Transactions
	 	6.17	Credit Card Issuers and Credit Card Processors
	 	 	 
	 	 	 
	EXHIBITS:	A-1	Funding Notice
	 	A-2	Conversion/Continuation Notice
	 	C	Compliance Certificate
	 	D	Assignment Agreement
	 	E-1	Certificate Regarding Non-Bank Status (For Non-US Lenders That Are Not Partnerships or Pass-Thru Entities

For U.S. Federal Income Tax Purposes)
	 	E-2	Certificate Regarding Non-Bank Status (For Non-US Lenders That Are Partnerships or Pass-Thru Entities

For U.S. Federal Income Tax Purposes)
	 	F-1	Closing Date Certificate
	 	F-2	Solvency Certificate
	 	G	Security Agreement
	 	H	Parent Guaranty and Collateral Agreement
	 	I	Credit Card Notifications
	 	J	Borrowing Base Certificate

 

     

     

    

 

CREDIT AGREEMENT

 

This CREDIT AGREEMENT,
dated as of October 23, 2019, by and among the lenders identified on the signature pages hereof (each of such lenders, together
with its successors and permitted assigns, is referred to hereinafter as a “Lender,” as that term is hereinafter
further defined), GUGGENHEIM CREDIT SERVICES, LLC., a Delaware limited liability company (“Guggenheim”), as
administrative agent for each of the Lenders (in such capacity, together with its successors and assigns in such capacity, “Administrative
Agent”), Guggenheim, as collateral agent for each of the Lenders (in such capacity, together with its successors and
assigns in such capacity, “Collateral Agent”), Guggenheim, as sole lead arranger, and sole book runner, FRANCHISE
GROUP INTERMEDIATE S LLC, a Delaware limited liability company (“Holdings”), as a Guarantor, FRANCHISE GROUP
NEWCO S, LLC, a Delaware limited liability company (“Borrower”), certain Subsidiaries of Holdings as Guarantors,
Franchise Group Intermediate L, LLC, a Delaware limited liability company (“Liberty
Top Parent”), Franchise Group New Holdco, LLC, a Delaware limited liability
company (“Global Parent”), and Franchise Group Intermediate Holdco,
LLC, a Delaware limited liability company (“S/B Parent”).

 

W I T N E S S E T H:

 

WHEREAS, capitalized
terms used in these Recitals shall have the respective meanings set forth for such terms in Section 1.01 hereof;

 

WHEREAS, Lenders have
agreed to extend a certain facility to Borrower in an aggregate principal amount not exceeding $105,000,000, consisting of $105,000,000
in term loans, the proceeds of which will be used as described in Section 2.05.

 

NOW, THEREFORE, in consideration
of the premises and the agreements, provisions and covenants herein contained, the parties hereto agree as follows:

 

ARTICLE
I

DEFINITIONS AND INTERPRETATION

 

Section 1.01       
Definitions. As used in this Agreement, the following terms shall have the following definitions:

 

“Accounts”
means all “accounts” (as defined in the UCC) of the Loan Parties (or, if referring to another Person, of such Person),
including, without limitation, accounts, accounts receivable, monies due or to become due, and obligations in any form (whether
arising in connection with contracts, contract rights, instruments, general intangibles, or chattel paper), in each case whether
arising out of goods sold or services rendered or from any other transaction and whether or not earned by performance, now or hereafter
in existence, and all documents of title or other documents representing any of the foregoing, and all collateral security and
guaranties of any kind, now or hereafter in existence, given by any Person with respect to any of the foregoing.

 

    	 	- 1 -	 

     

    

 

“Account Debtor”
means any Person who is obligated on an Account, chattel paper, or a general intangible.

 

“Accounting
Changes” means changes in accounting principles required by the promulgation of any rule, regulation, pronouncement,
or opinion by the Financial Accounting Standards Board of the American Institute of Certified Public Accountants (or any successor
thereto or any agency with similar functions).

 

“Adjusted LIBOR
Rate” means for any Interest Rate Determination Date with respect to an Interest Period for a LIBOR Rate Loan, the greater
of (a) the rate per annum obtained by dividing (and rounding upward to the next whole multiple of 1/100 of 1%) (i)
(A) the rate per annum (rounded to the nearest 1/100 of 1%) equal to the rate determined by Administrative Agent
to be the offered rate appearing on Bloomberg L.P.’s service for ICE LIBO USD (for delivery on the first day of such period)
with a term equivalent to such period in Dollars, determined as of approximately 11:00 a.m. (London, England time) on such
Interest Rate Determination Date or (B) in the event the rate referenced in the preceding clause (a) does not
appear on such page or service or if such page or service shall cease to be available, the rate per annum (rounded to the nearest 1/100
of 1%) equal to the rate determined by Administrative Agent to be the offered rate on such other page or other service which
displays ICE LIBO USD (for delivery on the first day of such period) with a term equivalent to such period in Dollars, determined
as of approximately 11:00 a.m. (London, England time) on such Interest Rate Determination Date (the rate described in this
clause (a)(i), the “LIBOR Rate”), by (ii) an amount equal to (A) one, minus (B) the Applicable
Reserve Requirement, and (b) 1.50% per annum.

 

“Administrative
Agent” has the meaning specified in the preamble hereto.

 

“Administrative
Agent’s Account” means an account at a bank designated by Administrative Agent from time to time as the account
into which the Loan Parties shall make all payments to Administrative Agent under this Agreement and the other Loan Documents.

 

“Adverse Proceeding”
means any action, suit, proceeding (whether administrative, judicial, or otherwise), governmental investigation, or arbitration
(whether or not purportedly on behalf of Holdings or any of its Subsidiaries) at law or in equity, or before or by any Governmental
Authority, domestic or foreign (including any Environmental Actions) or other regulatory body or any mediator or arbitrator, whether
pending or, to the knowledge of Holdings or any of its Subsidiaries, threatened in writing against or affecting Holdings or any
of its Subsidiaries or any property of Holdings or any of its Subsidiaries.

 

“Affected Lender”
has the meaning specified in Section 2.17(b).

 

“Affected Loans”
has the meaning specified in Section 2.17(b).

 

“Affiliate”
means, as applied to any Person, any other Person who controls, is controlled by, or is under common control with such Person.
For purposes of this definition, “control” means the possession, directly or indirectly through one or more intermediaries,
of the power to direct the management and policies of a Person, whether through the ownership of Capital Stock, by contract, or
otherwise; provided, that for purposes of Section 6.12 of this Agreement: (a) any Person which owns directly
or indirectly 10% or more of the Capital Stock having ordinary voting power for the election of directors or other members
of the governing body of a Person or 10% or more of the partnership or other ownership interests of a Person (other than as
a limited partner of such Person) shall be deemed an Affiliate of such Person, (b) each director (or comparable manager) of
a Person shall be deemed to be an Affiliate of such Person, (c) each partnership in which a Person is a general partner shall
be deemed an Affiliate of such Person and (d) each Permitted Holder and each of its employees, directors, officers and other Affiliates
shall be deemed an Affiliate of the Loan Parties. Notwithstanding anything herein to the contrary, in no event shall Administrative
Agent or any Lender be considered an “Affiliate” of any Loan Party.

 

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“Agent”
means each of Administrative Agent and Collateral Agent.

 

“Aggregate Amounts
Due” has the meaning specified in Section 2.16.

 

“Aggregate Payments”
has the meaning specified in Section 7.02.

 

“Agreement”
means this Credit Agreement and any annexes, exhibits, and schedules attached hereto as it may be amended, supplemented, or otherwise
modified from time to time.

 

“Alternate Base
Rate” shall mean, for any day, a rate per annum equal to the greatest of (a) the per annum rate publicly quoted
from time to time by The Wall Street Journal as the “Prime Rate” in the United States (or, if The Wall Street Journal
ceases quoting a prime rate of the type described, either (i) the per annum rate quoted as the base rate on such corporate
loans in a different national publication as reasonably selected by Administrative Agent or (ii) the highest per annum rate
of interest published by the Federal Reserve Board in Federal Reserve statistical release H.15 (519) entitled “Selected
Interest Rates” as the bank prime loan rate or its equivalent), (b) the Federal Funds Effective Rate (but not less than
zero) in effect on such day, plus 1/2 of 1.00%, (c) the Adjusted LIBOR Rate (taking into account the 1.50%
floor therein) for a one month Interest Period on such day (or if such day is not a Business Day, the immediately preceding Business
Day), plus 1.00%, and (d) 2.50%. Any change in the Alternate Base Rate due to a change in such Prime Rate, the Federal
Funds Effective Rate or the Adjusted LIBOR Rate shall be effective on the effective date of such change in the Prime Rate, the
Federal Funds Effective Rate or the Adjusted LIBOR Rate, as the case may be.

 

“Anti-corruption
Laws” means the FCPA, and all other applicable laws concerning or relating to bribery, money laundering or corruption.

 

“Applicable
ECF Percentage” means, for any Fiscal Year of Borrower, 75%.

 

“Applicable
Margin” means (a) with respect to Term Loans that are LIBOR Rate Loans, 6.50%, and (b) with respect to Term Loans that
are Base Rate Loans, 5.50%.

 

“Applicable
Reserve Requirement” means, at any time, for any LIBOR Rate Loan, the maximum rate, expressed as a decimal, at which
reserves (including, without limitation, any basic marginal, special, supplemental, emergency, or other reserves) are required
to be maintained with respect thereto against “Eurocurrency liabilities” (as such term is defined in Regulation D)
under regulations issued from time to time by the Board of Governors of the Federal Reserve System or other applicable banking
regulator. Without limiting the effect of the foregoing, the Applicable Reserve Requirement shall reflect any other reserves required
to be maintained by such member banks with respect to (a) any category of liabilities which includes deposits by reference
to which the applicable Adjusted LIBOR Rate or any other interest rate of a Loan is to be determined or (b) any category of
extensions of credit or other assets which include LIBOR Rate Loans. A LIBOR Rate Loan shall be deemed to constitute Eurocurrency
liabilities and as such shall be deemed subject to reserve requirements without benefits of credit for proration, exceptions, or
offsets that may be available from time to time to the applicable Lender. The rate of interest on LIBOR Rate Loans shall be adjusted
automatically on and as of the effective date of any change in the Applicable Reserve Requirement.

 

    	 	- 3 -	 

     

    

 

“Application
Event” means the (a) occurrence of an Event of Default and (b) the election by Administrative Agent or the
Required Lenders during the continuance of such Event of Default to require that payments and proceeds of Collateral be applied
pursuant to Section 2.15(g).

 

“Asset Sale”
means a sale, lease, or sub lease (as lessor or sublessor), sale and leaseback, assignment, conveyance, transfer, license, or other
disposition to (other than to or with a Loan Party which is not Holdings), or any exchange of property with, any Person, in one
transaction or a series of transactions, of all or any part of any Loan Party’s businesses, assets, or properties of any
kind, whether real, personal, or mixed and whether tangible or intangible, whether now owned or hereafter acquired, including,
without limitation, the Capital Stock of any Loan Party (other than Holdings to the extent the issuance of such Capital Stock does
not result in a Change of Control), other than inventory (or other assets) sold, licensed in the ordinary course of business, or
leased in the ordinary course of business. For purposes of clarification, “Asset Sale” shall include (a) the sale
or other disposition for value of any contracts, or (b) any sale of merchant accounts (or any rights thereto, including, without
limitation, any rights to any residual payment stream with respect thereto) by any Loan Party.

 

“Assignment
Agreement” means an Assignment and Assumption Agreement substantially in the form of Exhibit D, with such
amendments or modifications as may be approved by Administrative Agent.

 

“A Team”
means A Team Sales, LLC, a Delaware limited liability company.

 

“Authorized
Officer” means, as applied to any Person, any individual holding the position of chairman of the board (if an officer),
chief executive officer, chief operating officer, secretary, president, or one of its vice presidents (or the equivalent thereof),
and such Person’s chief financial officer or treasurer.

 

“Bail-In Action”
means the exercise of any Write-Down and Conversion Powers by the applicable EEA Resolution Authority in respect of any liability
of an EEA Financial Institution.

 

“Bail-In Legislation”
means, with respect to any EEA Member Country implementing Article 55 of Directive 2014/59/EU of the European Parliament
and of the Council of the European Union, the implementing law for such EEA Member Country from time to time which is described
in the EU Bail-In Legislation Schedule.

 

    	 	- 4 -	 

     

    

 

“Bankruptcy
Code” means Title 11 of the United States Code entitled “Bankruptcy,” as now and hereafter in effect,
or any successor statute.

 

“Base Rate Loan”
means a Loan bearing interest at a rate determined by reference to the Alternate Base Rate.

 

“Beneficiary”
means each Agent and each Lender.

 

“Board”
means (a) with respect to any corporation, the board of directors of the corporation or any committee thereof duly authorized
to act on behalf of such board, (b) with respect to a partnership, the board of directors of the general partner of the partnership,
(c) with respect to a limited liability company, the managing member or members or any controlling committee or board of directors
of such company or the sole member or the managing member thereof, and (d) with respect to any other Person, the board or
committee of such Person serving a similar function.

 

“Borrower”
has the meaning specified in the preamble hereto.

 

“Borrowing Base”
means, as of any date of determination, the result of:

 

(a) 90% multiplied by
the face amount of Eligible Credit Card Receivables, plus

 

(b) the Net Orderly Liquidation
Value of Eligible Inventory (such determination may be made as to different categories of Eligible Inventory based upon the net
recovery percentage applicable to such categories) at such time, minus

 

(c) Reserves implemented
by the Administrative Agent in its Permitted Discretion.

 

“Borrowing Base
Certificate” means a certificate substantially in the form of Exhibit J hereto (with such changes therein as may
be required by the Agent to reflect the components of and reserves against the Borrowing Base as provided for hereunder from time
to time), executed and certified as accurate and complete by an Authorized Officer of the Borrower.

 

“Borrowing Base
Ratio” means, as of the end of any fiscal month the ratio of (x) the Borrowing Base as at the end of such fiscal month
(calculated pursuant to the Borrowing Base Certificate delivered as of the last day of such fiscal month pursuant to Section
5.01(k)) to (y) Consolidated Total Debt as at the end of such fiscal month.

 

“Business Day”
means (a) any day excluding Saturday, Sunday, and any day which is a legal holiday under the laws of the State of New York
or is a day on which banking institutions located in such state are authorized or required by law or other governmental action
to close and (b) with respect to all notices, determinations, fundings, and payments in connection with the Adjusted LIBOR
Rate or any LIBOR Rate Loans, the term “Business Day” shall mean any day which is a Business Day described in clause (a)
and which is also a day for trading by and between banks in Dollar deposits in the London interbank market.

 

    	 	- 5 -	 

     

    

 

“Capital Lease”
means, as applied to any Person, any lease of any property (whether real, personal, or mixed) by that Person (a) as lessee
that, in conformity with GAAP as in effect on the date hereof, is or should be accounted for as a capital lease on the balance
sheet of that Person or (b) as lessee which is a transaction of a type commonly known as a “synthetic lease” (i.e.,
a transaction that is treated as an operating lease for accounting purposes but with respect to which payments of rent are intended
to be treated as payments of principal and interest on a loan for Federal income tax purposes).

 

“Capital Stock”
means any and all shares, interests, participations, or other equivalents (however designated) of capital stock of a corporation,
any and all equivalent ownership interests in a Person (other than a corporation), including, without limitation, partnership interests
and membership interests, and any and all warrants, rights, or options to purchase, or other arrangements or rights to acquire
any of the foregoing.

 

“Cash”
means money, currency, or a credit balance in any demand or Deposit Account.

 

“Cash Equivalents”
means, as at any date of determination, (a) marketable securities (i) issued or directly and unconditionally guaranteed
as to interest and principal by the United States Government or (ii) issued by any agency of the United States, the obligations
of which are backed by the full faith and credit of the United States, in each case maturing within one year after such date, (b) marketable
direct obligations issued by any state of the United States of America or any political subdivision of any such state or any public
instrumentality thereof, in each case maturing within one year after such date and having, at the time of the acquisition thereof,
a rating of at least A-1 from S&P or at least P-1 from Moody’s, (c) commercial paper maturing no more than one year
from the date of creation thereof and having, at the time of the acquisition thereof, a rating of at least A-1 from S&P or
at least P-1 from Moody’s, (d) certificates of deposit or bankers’ acceptances maturing within one year after
such date and issued or accepted by any Lender or by any commercial bank organized under the laws of the United States of America
or any state thereof or the District of Columbia that (i) is at least “adequately capitalized” (as defined in
the regulations of its primary Federal banking regulator) and (ii) has Tier 1 capital (as defined in such regulations)
of not less than $100,000,000, and (e) shares of any money market mutual fund that (i) has substantially all of its assets
invested continuously in the types of investments referred to in clauses (a) and (b) above, (ii) has
net assets of not less than $250,000,000, and (iii) has the highest rating obtainable from either S&P or Moody’s.

 

“Cash Management
Services” means any cash management or related services including treasury, depository, return items, overdraft, controlled
disbursement, merchant store value cards, e-payables services, electronic funds transfer, interstate depository network, automatic
clearing house transfer (including the Automated Clearing House processing of electronic funds transfers through the direct Federal
Reserve Fedline system) and other customary cash management arrangements.

 

    	 	- 6 -	 

     

    

 

“Casualty Event”
means any involuntary loss of title, any involuntary loss of, damage to, or any destruction of, or any condemnation or other taking
(including by any Governmental Authority) of, any property of Holdings or any of its Subsidiaries. “Casualty Event”
shall include, but not be limited to, any taking of all or any part of any real estate of any Person or any part thereof, in or
by condemnation or other eminent domain proceedings pursuant to any requirement of law, or by reason of the temporary requisition
of the use or occupancy of all or any part of any Real Property of any Person or any part thereof by any Governmental Authority,
civil or military, or any settlement in lieu thereof.

 

“Certificate
Regarding Non-Bank Status” means a certificate substantially in the form of Exhibit E.

 

“Change
of Control” means that:

 

(a)              
any Person or two or more Persons acting in concert (other than Permitted Holders) shall have acquired beneficial ownership,
directly or indirectly, of Capital Stock of Holdings (or other securities convertible into such Capital Stock) representing 35%
or more of the combined voting power of all Capital Stock of Holdings entitled (without regard to the occurrence of any contingency)
to vote for the election of members of the Board of Holdings,

 

(b)              
during any period of 24 consecutive months commencing on or after the Closing Date, the occurrence of a change in the
composition of the Board of Holdings such that a majority of the members of such Board are not Continuing Directors,

 

(c)              
Holdings fails to own and control, directly or indirectly, 100% of the Capital Stock of each other Loan Party (other than
as permitted by Section 6.10),

 

(d)              
Vintage Capital Management, LLC fails to own and control, directly or indirectly, Capital Stock in Holdings in an amount
equal to 80% or greater than the amount held by it immediately following the consummation of the tender offer by Liberty for its
outstanding common stock (other than common stock owned by the Permitted Holders), or

 

(e)              
the occurrence of a Change of Management.

 

“Change of Management”
means that Brian Kahn’s direct or indirect management responsibilities of Borrower are materially diminished from those held
by him on the Closing Date, in each case, other than as a result of (a) death or (b) physical or mental incapacity.

 

“Closing Date”
means the date on which the initial Term Loans are made.

 

“Closing Date
Acquisition” means that acquisition by Borrower of the Business (as defined in the Closing Date Acquisition Agreement)
pursuant to the terms of the Closing Date Acquisition Agreement.

 

“Closing Date
Acquisition Agreement” means that certain Equity and Asset Purchase Agreement, dated as of August 27, 2019, by and among
Liberty, Borrower, and Sears Hometown and Outlet Stores, Inc., a Delaware corporation, as waived, amended, supplemented or otherwise
modified (including any consents thereunder) from time to time, so long as, unless the Administrative Agent shall have consented
thereto (such consent not to be unreasonably withheld, delayed or conditioned), such waivers, amendments, supplements and other
modifications are not materially adverse to the Lenders (it being understood that (i) any increase in the consideration for the
Closing Date Acquisition shall not be deemed to be materially adverse to the interests of the Lenders so long as such increase
in consideration (x) is pursuant to any purchase price or similar adjustment provisions set forth in the Closing Date Acquisition
Agreement as in effect on August 27, 2019 or (y) is not funded with additional Indebtedness, (ii) any reduction in the purchase
price consideration shall be deemed not to be adverse to the Lenders so long as such reduction (A) is pursuant to any purchase
price or similar adjustment provisions set forth in the Closing Date Acquisition Agreement as in effect on August 27, 2019 or (B)
is applied to the Term Loans and the Equity Contribution on a pro rata basis, (iii) any consent, waiver, amendment, supplement,
or other modification in respect of the third party beneficiary rights applicable to the Administrative Agent or the Lenders or
in the governing law without the prior written consent of the Administrative Agent shall be deemed to be materially adverse to
the interests of the Lenders, and (iv) any consent, waiver, amendment, supplement, or other modification to the definition of “Material
Adverse Effect” without the prior written consent of the Administrative Agent shall be deemed to be materially adverse to
the interests of the Lenders).

 

    	 	- 7 -	 

     

    

 

“Closing Date
Certificate” means a Closing Date Certificate substantially in the form of Exhibit F-1.

 

“Collateral”
means, collectively, all of the real, personal, and mixed property (including Capital Stock) and all interests therein and proceeds
thereof now owned or hereafter acquired by any Person upon which a Lien is granted or purported to be granted by such Person pursuant
to the Collateral Documents as security for the Obligations.

 

“Collateral
Access Agreement” means a collateral access agreement in form and substance reasonably satisfactory to Collateral Agent.

 

“Collateral
Agent” has the meaning specified in the preamble hereto.

 

“Collateral
Coverage Test” has the meaning specified in Section 5.10.

 

“Collateral
Documents” means the Security Agreement, the Parent Guaranty and Collateral Agreement, the Credit Card Notifications,
the Mortgages, if any, the Collateral Access Agreements, if any, any Control Agreement, and all other instruments, documents, and
agreements delivered by any Loan Party, Global Parent, Liberty Top Parent or S/B Parent pursuant to this Agreement or any of the
other Loan Documents in order to grant to Collateral Agent, for the benefit of Secured Parties, a Lien on any real, personal, or
mixed property of such Loan Party, Global Parent, Liberty Top Parent or S/B Parent, as the case may be, as security for the Obligations,
in each case, as such Collateral Documents may be amended or otherwise modified from time to time.

 

“Commitment”
means any Term Loan Commitment.

 

“Compliance
Certificate” means a Compliance Certificate substantially in the form of Exhibit C.

 

    	 	- 8 -	 

     

    

 

“Consolidated
Amortization Expense” means, for any period, the amortization expense of the Borrower and its Subsidiaries for such period,
determined on a consolidated basis in accordance with GAAP.

 

“Consolidated
Capital Expenditures” means, for any period, the aggregate of all expenditures of the Borrower and its Subsidiaries during
such period determined on a consolidated basis that, in accordance with GAAP, are or should be included in “purchase of property
and equipment or which should otherwise be capitalized” or similar items reflected in the consolidated statement of cash
flows of the Borrower and its Subsidiaries.

 

“Consolidated
Cash Interest Expense” means, for any period, Consolidated Interest Expense for such period based upon GAAP, excluding
any paid-in-kind interest, and amortization of deferred financing costs.

 

“Consolidated
Current Assets” means, as at any date of determination, the total assets of the Borrower and its Subsidiaries on a consolidated
basis that may properly be classified as current assets in conformity with GAAP, excluding Cash and Cash Equivalents.

 

“Consolidated
Current Liabilities” means, as at any date of determination, the total liabilities of the Borrower and its Subsidiaries
on a consolidated basis that may properly be classified as current liabilities in conformity with GAAP, excluding the current portion
of long term debt.

 

“Consolidated
Depreciation Expense” means, for any period, the depreciation expense of the Borrower and its Subsidiaries for such period,
determined on a consolidated basis in accordance with GAAP.

 

“Consolidated
EBITDA” means, for any period, Consolidated Net Income for such period, adjusted by (a) adding thereto, in each
case only to the extent deducted in determining such Consolidated Net Income and without duplication:

 

(i)                
Consolidated Interest Expense,

 

(ii)             
Consolidated Amortization Expense,

 

(iii)           
Consolidated Depreciation Expense,

 

(iv)            
Consolidated Tax Expense and, without duplication, Permitted Tax Payments,

 

(v)              
reasonable and documented costs and expenses incurred by the Borrower on or prior to 30 days after the Closing Date
in connection with the Transactions,

 

(vi)            
 (A) the aggregate amount of all other non-cash charges, non-cash write-downs, non-cash expenses, non-cash
losses, or non-cash items (including, without limitation, purchase accounting adjustments under ASC 805 or similar acquisition
accounting under GAAP or similar provisions under GAAP) reducing Consolidated Net Income (including any non-cash expense relating
to the vesting of warrants), (B) net non-cash exchange, non-cash translation, or non-cash performance losses relating
to foreign currency transactions and currency fluctuations, and (C) cash charges resulting from the application of ASC 805,

 

    	 	- 9 -	 

     

    

 

(vii)         
charges, losses, expenses, and payments that are covered by indemnification, reimbursement, guaranty, or purchase
price adjustment provisions in favor of Holdings or any of its Subsidiaries in any agreement entered into by Holdings or any of
its Subsidiaries to the extent such expenses and payments have been reimbursed pursuant to the applicable indemnity, guaranty,
or acquisition agreement in such period (or reasonably expected to be so paid or reimbursed within one year after the end of such
period to the extent not accrued) or an earlier period if not added back to Consolidated EBITDA in such earlier period; provided,
that (A) if such amount is not so reimbursed within such one-year period, such expenses or losses shall be subtracted in the subsequent
calculation period and (B) if reimbursed or received in a subsequent period, such amount shall not be added back in calculating
Consolidated EBITDA in such subsequent period,

 

(viii)       
any non-cash extraordinary, non-cash unusual, or non-cash non-recurring expenses, losses, or charges
incurred,

 

(ix)            
any cash extraordinary, unusual, or non-recurring expenses, losses, or charges incurred,

 

(x)              
any restructuring, business optimization, integration or similar charges,

 

(xi)            
the unamortized fees, costs, and expenses paid in cash in connection with the repayment of Indebtedness to persons
that are not Affiliates of Holdings or any of its Subsidiaries,

 

(xii)         
letter of credit fees,

 

(xiii)       
any net loss included in Consolidated Net Income attributable to non-controlling interests in any non-Wholly Owned
Subsidiary, and

 

(xiv)        
any Exit Fees paid in cash;

 

and (b) subtracting
therefrom, in each case only to the extent (and in the same proportion) added in determining such Consolidated Net Income and,
without duplication, the aggregate amount of (i) all non-cash items increasing Consolidated Net Income for such period
(other than the accrual of revenue or recording of receivables in the ordinary course of business), (ii) any extraordinary,
unusual, or non-recurring gains increasing Consolidated Net Income for such period, (iii) the amount of any minority interest
net income attributable to non-controlling interests in any non-Wholly Owned Subsidiary, and (iv) the amount of any tax credits
realized during such period.

 

Notwithstanding anything
to the contrary, it is agreed, that for any period that includes the fiscal quarters ended on December 31, 2018, March 31, 2019,
or June 30, 2019, Consolidated EBITDA shall be deemed to be $5,933,339, $10,046,527, or $4,547,000, respectively, in each case,
as adjusted on a pro forma basis. For the purposes of calculating Consolidated EBITDA for any period, if at any time during such
period (and after the Closing Date), Holdings or any of its Subsidiaries shall have consummated (a) an acquisition permitted hereunder
or (b) a material disposition permitted hereunder (including the termination or discontinuance of activities constituting the disposed
of business) of business entities, properties, or assets, in each case, constituting one or more divisions or lines of business
of any business entity, (i) Consolidated EBITDA for such period shall be calculated after giving pro forma effect thereto as if
any such acquisition or disposition occurred on the first day of such period. For the avoidance of doubt, Consolidated EBITDA shall
not be calculated on a cash basis.

 

    	 	- 10 -	 

     

    

 

Notwithstanding anything
to the contrary, the aggregate amount of addbacks made pursuant to clauses (ix) and (x) of clause (a) above shall not exceed 10%
of Consolidated EBITDA (calculated prior to giving effect to any such addbacks or pro forma adjustments) for such four fiscal quarter
period.

 

“Consolidated
Excess Cash Flow” means, for any period, Consolidated EBITDA for such period,

 

minus, without
duplication:

 

(a)              
Consolidated Cash Interest Expense and other payments of Indebtedness (including, without limitation, related fees
and expenses, to the extent paid in cash and to the extent such payments are permitted hereunder, but excluding any required cash
payments with respect to the Loans under this Agreement of the Borrower and its Subsidiaries, in each case, to the extent made
from Internally Generated Cash); provided, that, in each case, payments of revolving Indebtedness shall not be deducted
from Consolidated Excess Cash Flow pursuant to this clause (a) unless accompanied by a permanent reduction in the relevant
commitment,

 

(b)              
Consolidated Capital Expenditures made from Internally Generated Cash that are paid in cash (excluding Consolidated
Capital Expenditures made in such period that were included in the calculation of Consolidated Excess Cash Flow in a prior period
and net of any (i) Net Proceeds from Asset Sales to the extent reinvested in accordance with Section 2.13(a), (ii) Net
Proceeds to the extent reinvested in accordance with Section 2.13(b), and (iii) any proceeds of related financings
with respect to such expenditures),

 

(c)              
the aggregate amount of Consolidated Tax Expense (including, but without duplication, any direct or indirect distributions
for the payment of such Consolidated Tax Expense) paid or payable with respect to such period and, if payable, for which reserves
have been established to the extent required under GAAP,

 

(d)              
the absolute value of, if negative, (i) the amount of Net Working Capital at the end of the prior period (or the
beginning of the period in the case of the first period) minus (ii) the amount of Net Working Capital at the end of such
period,

 

(e)              
the aggregate amount of cash items added back to Consolidated EBITDA in the calculation of Consolidated EBITDA for
such period to the extent paid with Internally Generated Cash by the Borrower and its Subsidiaries during such period,

 

    	 	- 11 -	 

     

    

 

(f)               
the aggregate amount of Restricted Junior Payments and other payments made in cash permitted by Sections 6.05(a)
(but without duplication of clause (c) above) and, to the extent made with Internally Generated Cash, (c) during such period,
and

 

(g)              
to the extent added to determine Consolidated EBITDA pursuant to clause (viii) of the definition of Consolidated
EBITDA, such amounts with respect to which no cash payment to Holdings or any of its Subsidiaries was received during such period;
provided, that any such cash payment subsequently received shall be included in the calculation of Consolidated Excess Cash
Flow for the subsequent period when received;

 

provided, that
any amount deducted pursuant to any of the foregoing clauses that will be paid after the close of such period shall not be deducted
again in a subsequent period;

 

plus,
without duplication:

 

(i)                
if positive, (A) the amount of Net Working Capital at the end of the prior period (or the beginning of the period
in the case of the first period) minus (B) the amount of Net Working Capital at the end of such period,

 

(ii)             
cash items of income during such period not included in calculating Consolidated EBITDA, including, without limitation,
proceeds from Asset Sales to the extent not reinvested in accordance with Section 2.13(a),

 

(iii)           
the aggregate amount of non-cash items deducted from Consolidated EBITDA in the calculation of Consolidated EBITDA
for such period, and

 

(iv)            
any cash payment that was actually received by Holdings or any Subsidiary during such period with respect to which
a deduction was taken pursuant to clause (g) above during the previous period.

 

“Consolidated
Fixed Charges” means, for any period, the sum, without duplication, of the amounts determined for the Borrower and its
Subsidiaries on a consolidated basis equal to (a) Consolidated Cash Interest Expense, (b) scheduled payments of principal
on Consolidated Total Debt.

 

“Consolidated
Interest Expense” means, for any period, total interest expense (including that portion attributable to Capital Leases
in accordance with GAAP and capitalized interest) of the Borrower and its Subsidiaries on a consolidated basis with respect to
all outstanding Consolidated Total Debt, including all commissions, discounts, and other fees and charges owed with respect to
letters of credit, but excluding, however, any amounts referred to in Section 2.10 payable on or before the Closing Date.

 

“Consolidated
Liquidity” means, for any period, an amount determined for Holdings and its Subsidiaries on a consolidated basis, equal
to the aggregate sum of Qualified Cash of Holdings and its Subsidiaries.

 

“Consolidated
Net Income” means, for any period, (a) the net income (or loss) of the Borrower and its Subsidiaries on a consolidated
basis for such period taken as a single accounting period determined in conformity with GAAP, minus (b) the sum of
(i) the income (or loss) of any Person (other than a Subsidiary of Holdings) in which any other Person (other than Holdings
or any of its Subsidiaries) has a joint interest, plus (ii) the income (or loss) of any Person accrued prior to the
date it becomes a Subsidiary of Holdings or is merged into or consolidated with Holdings or any of its Subsidiaries or that Person’s
assets are acquired by Holdings or any of its Subsidiaries, plus (iii) the income of any Subsidiary of Holdings to
the extent that the declaration or payment of dividends or similar distributions by that Subsidiary of that income is not at the
time permitted by operation of the terms of its charter or any agreement, instrument, judgment, decree, order, statute, rule, or
governmental regulation applicable to that Subsidiary, plus (iv) any gains or losses attributable to Asset Sales or
returned surplus assets of any Pension Plan, plus (v) (to the extent not included in clauses (b)(i) through
(iv) above) any net extraordinary gains or net extraordinary losses.

 

    	 	- 12 -	 

     

    

 

“Consolidated
Pre-Tax Net Income” means, for any period, Consolidated EBITDA minus (A) Consolidated Interest Expense, (B) Consolidated
Amortization Expense solely with respect to “property, plant and equipment,” and (C) Consolidated Depreciation Expense
solely with respect to “property, plant and equipment”.

 

“Consolidated
Tax Expense” means, for any period, the tax expense (including federal, state, local, foreign, franchise, excise, and
foreign withholding taxes) of the Borrower and its Subsidiaries, including any penalties and interest relating to any tax examinations
for such period, determined on a consolidated basis in accordance with GAAP.

 

“Consolidated
Total Debt” means, as at any date of determination, the aggregate stated balance sheet amount of all Indebtedness of
the Borrower and its Subsidiaries determined on a consolidated basis in accordance with GAAP, less, solely for purposes
of the Total Leverage Ratio, the lesser of (x) the aggregate amount of Qualified Cash and (y) $2,500,000.

 

“Continuing
Director” means (a) any member of the Board who was a director (or comparable manager) of Holdings on the Closing
Date and (b) any individual who becomes a member of the Board after the Closing Date if such individual was approved, appointed,
or nominated for election to the Board by either the Permitted Holders or a majority of the Continuing Directors.

 

“Contractual
Obligation” means, as applied to any Person, any provision of any Security issued by that Person or of any indenture,
mortgage, deed of trust, contract, undertaking, agreement, or other instrument to which that Person is a party or by which it or
any of its properties is bound or to which it or any of its properties is subject.

 

“Control Agreement”
means a control agreement, in form and substance reasonably satisfactory to Collateral Agent, executed and delivered by Collateral
Agent, the applicable securities intermediary (with respect to a Securities Account) or bank (with respect to a Deposit Account)
and Holdings, one of its Subsidiaries, Global Parent, Liberty Top Parent or S/B Parent, as the case may be.

 

“Conversion/Continuation
Date” means the effective date of a continuation or conversion, as the case may be, as set forth in the applicable Conversion/Continuation
Notice.

 

    	 	- 13 -	 

     

    

 

“Conversion/Continuation
Notice” means a Conversion/Continuation Notice substantially in the form of Exhibit A-2.

 

“Credit Card
Issuer” shall mean any person (other than a Borrower or other Loan Party) who issues or whose members issue credit cards,
including, without limitation, MasterCard or VISA bank credit or debit cards or other bank credit or debit cards issued through
MasterCard International, Inc., Visa, U.S.A., Inc. or Visa International and American Express, Discover, Diners Club, Carte Blanche
and other non-bank credit or debit cards, including, without limitation, credit or debit cards issued by or through American Express
Travel Related Services Company, Inc., and Novus Services, Inc. and other issuers approved by Administrative Agent.

 

“Credit Card
Processor” shall mean any servicing or processing agent or any factor or financial intermediary who facilitates, services,
processes or manages the credit authorization, billing transfer and/or payment procedures with respect to any Loan Party’s
sales transactions involving credit card or debit card purchases by customers using credit cards or debit cards issued by any Credit
Card Issuer.

 

“Credit Card
Notification” has the meaning provided in Section 6.17(d).

 

“Credit Card
Receivables” means each “Account” or “payment intangible” (each as defined in the UCC) together
with all income, payments and proceeds thereof, owed by a Credit Card Issuer or Credit Card Processor to a Loan Party resulting
from charges by a customer of a Loan Party on credit or debit cards issued by such Credit Card Issuer in connection with the sale
of goods by a Loan Party, or services performed by a Loan Party, in each case in the ordinary course of its business.

 

“Credit Extension”
means the making of a Loan.

 

“Curative Equity”
means (i) equity investments (other than in respect of Disqualified Capital Stock) made by Permitted Holders, S/B Parent, Global
Parent or Liberty Top Parent to Borrower (whether directly or through one or more intermediate Persons, including Holdings) in
immediately available funds and (ii) unsecured intercompany Indebtedness which is subject to the Intercompany Subordination Agreement,
is incurred by Borrower and is made by any of S/B Parent, Global Parent or Liberty Top Parent and, in each case, which is designated
“Curative Equity” by Borrower under Section 8.02 of this Agreement at the time it is contributed or incurred,
as applicable.

 

“Debtor Relief
Law” means the Bankruptcy Code and any other liquidation, conservatorship, bankruptcy, assignment for the benefit of
creditors, moratorium, rearrangement, receivership, insolvency, reorganization, or similar debtor relief law of the United States
or other applicable jurisdiction from time to time in effect.

 

“Default”
means a condition or event that, after notice or lapse of time or both, would constitute an Event of Default.

 

“Default Excess”
means, with respect to any Defaulting Lender, the excess, if any, of such Defaulting Lender’s Pro Rata Share of the aggregate
outstanding principal amount of Loans of all Lenders (calculated as if all Defaulting Lenders (other than such Defaulting Lender)
had funded all of their respective Defaulted Loans) over the aggregate outstanding principal amount of all Loans of such Defaulting
Lender.

 

    	 	- 14 -	 

     

    

 

“Default Period”
means, with respect to any Defaulting Lender, the period commencing on the date of the applicable Funding Default, or violation
of Section 9.05(c), and ending on the earliest of the following dates: (a) the date on which all Commitments are cancelled
or terminated, and/or the Obligations are declared or become immediately due and payable, (b) the date on which (i) the
Default Excess with respect to such Defaulting Lender shall have been reduced to zero (whether by the funding by such Defaulting
Lender of any Defaulted Loans of such Defaulting Lender or by the non pro rata application of any voluntary or mandatory prepayments
of the Loans in accordance with the terms of Section 2.11 or Section 2.13 or by a combination thereof), and (ii) such
Defaulting Lender shall have delivered to Borrower and Administrative Agent a written reaffirmation of its intention to honor its
obligations hereunder with respect to its Commitments, (c) with respect to a Funding Default, the date on which Borrower,
Administrative Agent, and Required Lenders waive all Funding Defaults of such Defaulting Lender in writing, and (d) with respect
to violation of Section 9.05(c), the date on which Administrative Agent shall have waived all violations of Section 9.05(c)
by such Defaulting Lender in writing.

 

“Defaulted Loan”
has the meaning specified in Section 2.21.

 

“Defaulting
Lender” has the meaning specified in Section 2.21.

 

“Default Rate”
means any interest payable pursuant to Section 2.09.

 

“Deposit Account”
means a demand, time, savings, passbook, or like account with a bank, savings and loan association, credit union, or like organization,
other than an account evidenced by a negotiable certificate of deposit.

 

“Disqualified
Capital Stock” means any Capital Stock that, by its terms (or by the terms of any security or other Capital Stock into
which it is convertible or for which it is exchangeable), or upon the happening of any event or condition (a) matures or is
mandatorily redeemable (other than solely for Qualified Capital Stock), pursuant to a sinking fund obligation or otherwise (except
as a result of a change of control or asset sale so long as any rights of the holders thereof upon the occurrence of a change of
control or asset sale event shall be subject to the prior repayment in full of the Loans and all other Obligations that are accrued
and payable and the termination of the Commitments), (b) is redeemable at the option of the holder thereof (other than solely
for Qualified Capital Stock), in whole or in part, (c) provides for the scheduled payments of dividends in cash, or (d) is
or becomes convertible into or exchangeable for Indebtedness or any other Capital Stock that would constitute Disqualified Capital
Stock, in each case, prior to the date that is 180 days after the Maturity Date. Any Capital Stock in any Person that is issued
to any director, officer, or other employee shall not constitute a Disqualified Capital Stock solely because it may be required
to be repurchased by such Person or any of its subsidiaries in order to satisfy applicable statutory or regulatory obligations
or as a result of such employee’s termination, death, or disability.

 

    	 	- 15 -	 

     

    

 

“Disqualified
Institutions” means (a) any person that has been separately identified in writing by Liberty to Administrative Agent
on or prior to the Closing Date, (b) those persons who are competitors of Liberty, the Business (as defined in the Closing Date
Acquisition Agreement) and its and their subsidiaries that are separately identified in writing by Liberty or the Borrower to Administrative
Agent from time to time, and (c) in the case of each of clauses (a) and (b), any of their respective Affiliates (which, for the
avoidance of doubt, shall not include any bona fide debt investment funds that are Affiliates of the persons referenced in clause
(b) above, unless separately identified by Liberty or the Borrower pursuant to clause (a) above) that are either (i) identified
in writing by Liberty or the Borrower from time to time or (ii) readily identifiable on the basis of such Affiliate’s name;
provided that no updates to the list of Disqualified Institutions shall be deemed to retroactively disqualify any parties
that have previously acquired an assignment or participation interest in respect of the Loans from continuing to hold or vote such
previously acquired assignments and participations on the terms set forth herein for Lenders that are not Disqualified Institutions
(it being understood and agreed that such prohibitions with respect to Disqualified Institutions shall apply to any potential future
assignments or participations to any such parties).

 

“Dividend Opportunity
Amount” means, in respect of any Subject Fiscal Quarter, the lesser of (x) 1.0 and (y) (a) Consolidated Excess Cash Flow
(without giving effect to any reduction of Consolidated Excess Cash Flow set forth in the definition thereof by any Restricted
Junior Payments pursuant to Section 6.05(c)) for the four-Fiscal Quarter period ending on the last day of such Subject Fiscal Quarter;
divided by (b) 25% of Consolidated EBITDA for the four-Fiscal Quarter period ending on the last day of such Subject Fiscal Quarter;
provided that, notwithstanding anything to the contrary contained herein, the first fiscal month included in any calculation of
Consolidated EBITDA or Consolidated Excess Cash Flow for purposes of this definition shall be the first full fiscal month ending
after the Closing Date.

 

“Dollars”
and the sign “$” mean the lawful money of the United States of America.

 

“ECF Payment
Amount” has the meaning specified in Section 2.13(e).

 

“EEA Financial
Institution” means (a) any credit institution or investment firm established in any EEA Member Country which is
subject to the supervision of an EEA Resolution Authority, (b) any entity established in an EEA Member Country which is a
parent of an institution described in clause (a) of this definition, or (c) any financial institution established in
an EEA Member Country which is a subsidiary of an institution described in clauses (a) or (b) of this definition and
is subject to consolidated supervision with its parent.

 

“EEA Member
Country” means any of the member states of the European Union, Iceland, Liechtenstein, and Norway.

 

“EEA Resolution
Authority” means any public administrative authority or any person entrusted with public administrative authority of
any EEA Member Country (including any delegee) having responsibility for the resolution of any EEA Financial Institution.

 

    	 	- 16 -	 

     

    

 

“Eligible Credit
Card Receivables” means at the time of any determination thereof, each Credit Card Receivable that satisfies the following
criteria at the time of creation and continues to meet the same at the time of such determination: such Credit Card Receivable
(i) has been earned by performance and represents the bona fide amounts due to a Loan Party from a Credit Card Issuer or Credit
Card Processor, and in each case is originated in the ordinary course of business of such Loan Party, and (ii) in each case is
not ineligible for inclusion in the calculation of the Borrowing Base pursuant to any of clauses (a) through (i) below. Without
limiting the foregoing, to qualify as an Eligible Credit Card Receivable, a Credit Card Receivable shall indicate no Person other
than a Loan Party as payee or remittance party. In determining the amount to be so included, the face amount of a Credit Card Receivable
shall be reduced by, without duplication, to the extent not reflected in such face amount, (i) the amount of all accrued and actual
discounts, claims, credits or credits pending, promotional program allowances, price adjustments, finance charges or other allowances
and (ii) the aggregate amount of all cash received in respect of such Credit Card Receivable but not yet applied by the Loan Parties
to reduce the amount of such Credit Card Receivable. Except as otherwise agreed by the Agent, any Credit Card Receivable included
within any of the following categories shall not constitute an Eligible Credit Card Receivable:

 

(a)       Credit
Card Receivables which do not constitute an “Account” or “payment intangible” (each as defined in the UCC);

 

(b)       Credit
Card Receivables that have been outstanding for more than ten (10) Business Days from the date of sale;

 

(c)       Credit
Card Receivables (i) that are not subject to a perfected first priority security interest in favor of the Collateral Agent (subject
to Permitted Liens having priority over the Lien of the Agent by operation of applicable Requirements of Law), or (ii) with respect
to which a Loan Party does not have good and valid title thereto, free and clear of any Lien (other than Permitted Liens);

 

(d)       Credit
Card Receivables which are disputed or with respect to which a claim, counterclaim, offset or chargeback has been asserted by the
applicable credit card processor (to the extent of such dispute, claim, counterclaim, offset or chargeback);

 

(e)       Credit
Card Receivables as to which a Credit Card Issuer or a Credit Card Processor has the right under certain circumstances to require
a Loan Party to repurchase the entire portfolio of Credit Card Receivables from such Credit Card Issuer or Credit Card Processor;

 

(f)       Credit
Card Receivables due from a Credit Card Issuer or a Credit Card Processor of the applicable credit card which is the subject of
any Insolvency Proceeding;

 

(g)        Credit
Card Receivables which are not a valid, legally enforceable obligation of the applicable Credit Card Issuer or a Credit Card Processor
with respect thereto;

 

    	 	- 17 -	 

     

    

 

(h)        Credit
Card Receivables which do not conform to all representations, warranties or other provisions in the Loan Documents relating to
Credit Card Receivables; or

 

(i)        Credit
Card Receivables which Administrative Agent determines in its Permitted Discretion to be uncertain of collection or which do not
meet such other reasonable eligibility criteria for Credit Card Receivables as Administrative Agent may determine in its Permitted
Discretion.

 

“Eligible Assignee”
means (a) any Lender, any Affiliate of any Lender, and any Related Fund (any two or more Related Funds being treated as a
single Eligible Assignee for all purposes hereof), and (b) any commercial bank, insurance company, investment or mutual fund,
or other entity that is an “accredited investor” (as defined in Regulation D under the Securities Act) and which
extends credit or buys loans as one of its businesses, and (c) any other Person (other than a natural Person) approved by
Borrower (so long as no Specified Event of Default has occurred and is continuing) and Administrative Agent (each such consent
not to be unreasonably withheld or delayed); provided, that (i) no approval of Borrower shall be required during the
continuance of a Specified Event of Default, (ii) no approval of Borrower shall be required for Disqualified Institutions during
the continuance of an Event of Default, and (iii) to the extent the consent of Borrower is required for any assignment, such
consent shall be deemed to have been given if Borrower has not responded within ten (10) Business Days of a written request for
such consent; provided further, that (x) neither (A) Borrower nor any Affiliate of Borrower nor (B) the Permitted Holders
nor any Affiliate of the Permitted Holders shall, in any event, be an Eligible Assignee, and (y) no Person owning or controlling
any trade debt or Indebtedness of any Loan Party (other than the Obligations) or any Capital Stock of any Loan Party shall, in
any event, be an Eligible Assignee.

 

“Eligible Inventory”
means, as of the date of determination thereof, items of Inventory of a Loan Party that are finished goods, merchantable and readily
saleable to the public in the ordinary course of the Loan Parties’ business, in each case that, except as otherwise agreed
by the Agent, (A) complies with each of the representations and warranties respecting Inventory made by the Loan Parties in the
Loan Documents, and (B) is not excluded as ineligible by virtue of one or more of the criteria set forth below. Except as otherwise
agreed by Administrative Agent, in its Permitted Discretion, the following items of Inventory shall not be included in Eligible
Inventory:

 

(a)       Inventory
(i) that is not subject to a perfected first priority security interest in favor of Collateral Agent (subject to Permitted Liens
having priority over the Lien of Collateral Agent by operation of applicable Requirements of Law), or (ii) with respect to which
a Loan Party does not have good and valid title thereto, free and clear of any Lien (other than Permitted Liens);

 

(b)       Inventory
that is leased or consigned from a vendor to a Loan Party;

 

(c)       Inventory
that is consigned by a Loan Party to a Person which is not a Loan Party other than Inventory that is consigned to Third Party Franchisees
for which the Loan Parties have met the Third Party Franchisee Eligibility Requirements;

 

    	 	- 18 -	 

     

    

 

(d)       Inventory
that is not located in the United States of America (excluding territories or possessions of the United States) or Puerto Rico
at a location that is owned or leased by a Loan Party, except (i) Inventory in transit between such owned or leased locations,
(ii) Inventory at locations owned or leased by Third Party Franchisees for which the Loan Parties have met the Third Party Franchisee
Eligibility Requirements, and (iii) to the extent permitted by clause (e), Inventory located in a distribution or warehouse center;

 

(e)        (i)
Inventory that is located in a distribution center leased by a Loan Party unless the applicable lessor has delivered to Collateral
Agent a Collateral Access Agreement; provided, that if such a Collateral Access Agreement is not obtained within thirty
(30) days following such time as the applicable Loan Party has entered into such arrangement with such applicable lessor (or such
later date as Administrative Agent may agree in its Permitted Discretion), Inventory at such locations shall constitute Eligible
Inventory as long as Administrative Agent has established a Reserve in such amount as Administrative Agent in its Permitted Discretion
deemed appropriate or (ii) Inventory that is located in a distribution or warehouse center unless the applicable owner or lessee
of such distribution or warehouse center has delivered to Collateral Agent a Collateral Access Agreement; provided, that
if such a Collateral Access Agreement is not obtained within thirty (30) days following such time as the applicable Loan Party
has entered into such arrangement with such applicable distribution or warehouse center owner or lessee (or such later date as
Administrative Agent may agree in its Permitted Discretion), Inventory at such locations shall constitute Eligible Inventory as
long as Administrative Agent has established a Reserve in such amount as Administrative Agent in its Permitted Discretion deemed
appropriate;

 

(f)        Other
than Inventory customarily sold at outlet locations in the ordinary course of business or otherwise in a manner consistent with
past practice, Inventory that is comprised of goods which (i) are damaged, defective, “seconds,” or otherwise unmerchantable,
(ii) are to be returned to the vendor, (iii) are obsolete, or custom items, work-in-process, raw materials, or that constitute
samples, spare parts, promotional, marketing, labels, bags and other packaging and shipping materials or supplies used or consumed
in a Loan Party’s business, (iv) which have been packed away and stored for more than 12 months, (v) are not in material
compliance with all standards imposed by any Governmental Authority having regulatory authority over such Inventory, its use or
sale, or (vi) are bill and hold goods;

 

(g)        Inventory
that is not insured in compliance with the provisions of Section 4.27 hereof;

 

(h)        Inventory
that has been sold but not yet delivered or as to which a Loan Party has accepted a deposit from a third party;

 

(i)        Inventory
that exhibits, includes or is identified by any trademark, tradename or other Intellectual Property right which trademark, tradename
or other Intellectual Property right (i) is subject to a restriction that could reasonably be expected to adversely affect Agents’
ability to liquidate such Inventory or (ii) the relevant Loan Party does not have the right to use in connection with the sale
of such Inventory, either through direct ownership or through a written license or sublicense;

 

    	 	- 19 -	 

     

    

 

(j)        Inventory
acquired through an acquisition (including, without limitation, acquisitions effected by mergers or consolidations) of all of or
substantially all of the Capital Stock or assets of any Person, or of any division or line of business or other business unit of
any Person, unless and until Agent has completed or received (A) an appraisal of such Inventory from appraisers reasonably satisfactory
to Administrative Agent and establishes Reserves (if applicable) therefor, and (B) such other due diligence as Administrative Agent
may reasonably require, all of the results of the foregoing to be reasonably satisfactory to Administrative Agent; provided
that such Inventory shall be deemed to constitute Eligible Inventory for a period of 45 days after the date of its acquisition
notwithstanding that the Agent has not completed such due diligence as long as such Inventory is of the same kind and quality as
other of the Loan Parties’ Inventory and would otherwise constitute Eligible Inventory;

 

(k)        Inventory
(other than Inventory acquired in an acquisition which is governed by clause (j) above) which is not of the type usually sold in
the ordinary course of any Loan Party’s business, unless and until Administrative Agent agrees in its Permitted Discretion
that such Inventory shall be deemed Eligible Inventory; or

 

(l)        Inventory
which does not meet such other reasonable eligibility criteria for Inventory as Administrative Agent may determine in its Permitted
Discretion.

 

“Employee Benefit
Plan” means any “employee benefit plan” as defined in Section 3(3) of ERISA which is or was sponsored,
maintained, or contributed to, or required to be contributed, by Holdings, any of its Subsidiaries, or any of their respective
ERISA Affiliates.

 

“Environmental
Action” means any written complaint, summons, citation, notice, directive, order, claim, litigation, investigation, judicial
or administrative proceeding, judgment, letter, or other written communication from any Governmental Authority or any third party
involving violations of Environmental Laws or releases of Hazardous Materials (a) from any assets, properties, or businesses
of Borrower, any Subsidiary of Borrower, or any of their predecessors in interest, (b) from adjoining properties or businesses,
or (c) from or onto any facilities which received Hazardous Materials generated by Borrower, any Subsidiary of Borrower, or
any of their predecessors in interest.

 

“Environmental
Law” means any applicable federal, state, provincial, foreign or local statute, law, rule, regulation, ordinance, code,
binding and enforceable guideline, binding and enforceable written policy, or rule of common law now or hereafter in effect and
in each case as amended, or any judicial or administrative interpretation thereof, including any judicial or administrative order,
consent decree, or judgment, in each case, to the extent binding on any Loan Party or its Subsidiaries, relating to protection
of the environment, protection of employee health (from exposure to Hazardous Materials), or Hazardous Materials, in each case
as amended from time to time.

 

    	 	- 20 -	 

     

    

 

“Environmental
Liabilities” means all liabilities, monetary obligations, losses, damages, costs, and expenses (including all reasonable
fees, disbursements, and expenses of counsel, experts, or consultants, and costs of investigation and feasibility studies), fines,
penalties, sanctions, and interest incurred as a result of any claim or demand, or Remedial Action required, by any Governmental
Authority or any third party, and which relate to any Environmental Action.

 

“Environmental
Lien” means any Lien in favor of any Governmental Authority for Environmental Liabilities.

 

“Equipment”
has the meaning ascribed to such term in the Security Agreement.

 

“Equity Contribution”
has the meaning specified in Section 3.01(e).

 

“ERISA”
means the Employee Retirement Income Security Act of 1974, as amended from time to time, and any successor thereto.

 

“ERISA Affiliate”
means, as applied to any Person, (a) any corporation which is a member of a controlled group of corporations within the meaning
of Section 414(b) of the Internal Revenue Code of which that Person is a member, (b) any trade or business (whether or
not incorporated) which is a member of a group of trades or businesses under common control within the meaning of Section 414(c)
of the Internal Revenue Code of which that Person is a member, and (c) any member of an affiliated service group within the
meaning of Section 414(m) or (o) of the Internal Revenue Code of which that Person, any corporation described in clause (a)
above, or any trade or business described in clause (b) above is a member. Any former ERISA Affiliate of Holdings or
any of its Subsidiaries shall continue to be considered an ERISA Affiliate of Holdings or any such Subsidiary within the meaning
of this definition with respect to the period such entity was an ERISA Affiliate of Holdings or such Subsidiary and with respect
to liabilities arising after such period for which Holdings or such Subsidiary could be liable under the Internal Revenue Code
or ERISA.

 

“ERISA Event”
means: (a) a “reportable event” within the meaning of Section 4043 of ERISA and the regulations issued thereunder
with respect to any Pension Plan (excluding those for which the provision for thirty day notice to the PBGC has been waived by
regulation); (b) the failure to meet the minimum funding standard of Section 412 of the Internal Revenue Code or Section
302 of ERISA with respect to any Pension Plan (whether or not waived in accordance with Section 412(d) of the Internal Revenue
Code), the failure to make by its due date a required installment under Section 412(m) of the Internal Revenue Code with respect
to any Pension Plan, or the failure to make any required contribution to a Multiemployer Plan; (c) the provision by the administrator
of any Pension Plan pursuant to Section 4041(a)(2) of ERISA of a notice of intent to terminate such plan in a distress termination
described in Section 4041(c) of ERISA; (d) the withdrawal by Holdings, any of its Subsidiaries, or any of their respective
ERISA Affiliates from any Pension Plan with two or more contributing sponsors or the termination of any such Pension Plan resulting
in liability to Holdings, any of its Subsidiaries, or any of their respective Affiliates pursuant to Section 4063 or 4064
of ERISA; (e) the institution by the PBGC of proceedings to terminate any Pension Plan or the occurrence of any event or condition
which might constitute grounds under ERISA for the termination of or the appointment of a trustee to administer, any Pension Plan;
(f) the imposition of liability on Holdings, any of its Subsidiaries, or any of their respective ERISA Affiliates pursuant
to Section 4062(e) or 4069 of ERISA or by reason of the application of Section 4212(c) of ERISA; (g) the withdrawal
of Holdings, any of its Subsidiaries, or any of their respective ERISA Affiliates in a complete or partial withdrawal (within the
meaning of Sections 4203 and 4205 of ERISA) from any Multiemployer Plan if there is any potential liability therefor,
or the receipt by Holdings, any of its Subsidiaries, or any of their respective ERISA Affiliates of notice from any Multiemployer
Plan (1) imposing withdrawal liability, (2) that such Multiemployer Plan is in reorganization or insolvency pursuant to Section 4241
or 4245 of ERISA, (3) that such Multiemployer Plan is in “endangered” or “critical” status (within
the meaning of Section 432 of the Code or Section 305 of ERISA), or (4) that such Multiemployer Plan intends to terminate or has
terminated under Section 4041A or 4042 of ERISA; (h) the occurrence of an act or omission which could give rise
to the imposition on Holdings, any of its Subsidiaries, or any of their respective ERISA Affiliates of fines, penalties, taxes,
or related charges under Chapter 43 of the Internal Revenue Code or under Section 409, Section 502(c), (i), or
(l), or Section 4071 of ERISA in respect of any Employee Benefit Plan; (i) the assertion of a material claim (other than
routine claims for benefits) against any Employee Benefit Plan other than a Multiemployer Plan or the assets thereof, or against
Holdings, any of its Subsidiaries, or any of their respective ERISA Affiliates in connection with any Employee Benefit Plan; (j) receipt
from the Internal Revenue Service of notice of the failure of any Pension Plan (or any other Employee Benefit Plan intended to
be qualified under Section 401(a) of the Internal Revenue Code) to qualify under Section 401(a) of the Internal Revenue
Code or the failure of any trust forming part of any Pension Plan to qualify for exemption from taxation under Section 501(a)
of the Internal Revenue Code, (k) the imposition of a Lien pursuant to Section 430(k) of the Internal Revenue Code or pursuant
to Section 303(k) of ERISA with respect to any Pension Plan, (l) the existence with respect to any funded Employee Benefit Plan
sponsored by a Holdings, any of its Subsidiaries, or any of their respective ERISA Affiliates of a non-exempt “Prohibited
Transaction” (within the meaning of Section 406 of ERISA or Section 4975(c) of the Code), (m) the filing, pursuant to Section
412(c) of the Code or Section 302(c) of ERISA, of an application for a waiver of the minimum funding standard with respect to any
Pension Plan, (n) a determination that any Pension Plan is in “at risk” status (within the meaning of Section 430 of
the Code or Section 303 of ERISA).

 

    	 	- 21 -	 

     

    

 

“EU Bail-In
Legislation Schedule” means the EU Bail-In Legislation Schedule published by the Loan Market Association (or any successor
person), as in effect from time to time.

 

“Event of Default”
means each of the conditions or events set forth in Section 8.01.

 

“Exchange Act”
means the Securities Exchange Act of 1934, as amended from time to time, and any successor statute.

 

“Excluded Accounts”
means Deposit Accounts, Securities Accounts and Commodity Accounts (1) specially and exclusively used for payroll, payroll taxes,
accrued and unpaid employee compensation payments and other employee wage and benefit payments to or for any Grantor’s employees
and (including salaries, wages, benefits and expense reimbursements, 401(k) and other retirement plans and employee benefits, including
rabbi trusts for deferred compensation and health care benefits), (2) that are zero balance accounts or other accounts (including,
for the avoidance of doubt, local operating accounts of individual retail locations) that automatically sweep balances on an at
least daily basis (other than days that are not business days for the applicable bank) to a concentration account that is subject
to a Control Agreement (subject to the timing requirements set forth in Section 6.17), (3) that (x) individually have a daily balance
of not more than $100,000 and (y) together with all other Deposit Accounts, Securities Accounts and Commodity Accounts constituting
Excluded Accounts under this clause (3), have a daily balance of not more than $1,000,000 in the aggregate for all such Deposit
Accounts, Securities Accounts or Commodity Accounts and (4) consisting solely of Cash or Cash Equivalents securing Permitted Indebtedness
(other than the Obligations) to the extent such security constitutes Permitted Liens (including, for avoidance of doubt, any account
used solely in connection with cash collateralizing the Workers Comp L/C to the extent not in violation of clause (o) of the definition
of “Permitted Liens”), and (5) used solely for withholding and trust accounts, escrow and any other fiduciary accounts.

 

    	 	- 22 -	 

     

    

 

“Excluded Subsidiary”
means any Subsidiary (a) that is prohibited, but only so long as such Subsidiary would be prohibited, by applicable law, rule,
or regulation from providing a guaranty of the Obligations or granting a Lien on its assets to secure the Obligations or that would
require governmental (including regulatory) consent, approval, license or authorization to provide such a guaranty or grant such
a Lien, unless such consent, approval, license or authorization has been received (it being understood that the Loan Parties shall
not be obligated to seek any such consent, approval, license or authorization); provided that the exclusion in this clause
(a) shall in no way be construed to (A) apply to the extent that any described prohibition is ineffective under Section 9-406,
9-407, 9-408, or 9-409 of the Code or other applicable law, or (B) limit, impair, or otherwise affect any of the Collateral Agent’s
continuing security interests in and liens upon any rights or interests of any Loan Party in or to (1) monies due or to become
due under or in connection with the Capital Stock of such Excluded Subsidiary, or (2) any proceeds from the sale, license, lease,
or other dispositions of the Capital Stock of such Excluded Subsidiary; (b) to the extent the Administrative Agent and the Borrower
mutually determine that the cost and/or burden of obtaining a guaranty of the Obligations and/or a grant of a Lien on its assets
to secure the Obligations by such Subsidiary outweighs the benefit to the Lenders, (c) that is, or if it were a Loan Party, would
be, an “investment company” under the Investment Company Act of 1940, (d) that is a not-for-profit entity with a charitable
purpose, or (e) that is a direct or indirect Subsidiary of an entity described in clause (a), (b), (c) or (d) above. For the avoidance
of doubt, none of the Subsidiaries that are Loan Parties as of the Closing Date shall be an Excluded Subsidiary as of the Closing
Date.

 

“Existing Businesses”
means each of the businesses owned or operated, directly or indirectly, as of the Closing Date by any of Franchise Group Intermediate
B, LLC, a Delaware limited liability company, S/B Parent, Liberty Top Parent, Liberty Parent or Liberty Borrower.

 

“Existing Indebtedness”
means Indebtedness and other obligations outstanding under each of (i) that certain Amended and Restated Credit Agreement, dated
as of November 1, 2016, among Sears Authorized Hometown Stores, LLC, Sears Hometown and Outlet Stores, Inc., Sears Home Appliance
Showrooms, LLC, Sears Outlet Stores, LLC, Bank of America, N.A., as administrative agent, and the lenders and other financial institutions
party thereto, as amended or otherwise modified, and (ii) that certain Term Loan Credit Agreement, dated as of February 16, 2018,
among Sears Authorized Hometown Stores, LLC, Sears Hometown and Outlet Stores, Inc., Sears Home Appliance Showrooms, LLC, Sears
Outlet Stores, LLC, Gordon Brothers Finance Company, as administrative agent, and the lenders and other financial institutions
party thereto, as amended or otherwise modified.

 

    	 	- 23 -	 

     

    

 

“Exit Fee”
has the meaning specified in Section 2.10.

 

“Extraordinary
Receipts” means any cash received by Holdings or any of its Subsidiaries not in the ordinary course of business (and
not consisting of proceeds described in Section 2.13(a) or (b) hereof), including, without limitation, (a) foreign,
United States, state, or local tax refunds, (b) pension plan reversions, (c) judgments, proceeds of settlements, or other
consideration of any kind in connection with any cause of action, (d) condemnation awards (and payments in lieu thereof),
(e) indemnity payments, and (f) any purchase price adjustment received in connection with any purchase agreement, excluding
for the avoidance of doubt proceeds from (i) the issuance of Capital Stock of Holdings or the issuance of Capital Stock of any
of its Subsidiaries (so long as such issuance is to its direct parent company that owns 100% of the Capital Stock of such Subsidiary
prior to such issuance) and (ii) the issuance of Indebtedness (it being understood and agreed that the issuance of Indebtedness
not permitted to be incurred pursuant to Section 6.01 shall remain subject to Section 2.13(d)).

 

“Fair Share”
has the meaning specified in Section 7.02.

 

“Fair Share
Contribution Amount” has the meaning specified in Section 7.02.

 

“FATCA”
means Sections 1471 through 1474 of the Internal Revenue Code, in effect as of the date of this Agreement (or any amended
or successor version that is substantively comparable and not materially more onerous to comply with), any current or future regulations
or official interpretations thereof, any agreements entered into pursuant to Section 1471(b)(1) of the Code and any fiscal
or regulatory legislation, rules or practices adopted pursuant to any intergovernmental agreement, treaty or convention among Governmental
Authorities and implementing such Sections of the Code.

 

“Federal Funds
Effective Rate” means for any day, the rate per annum (expressed, as a decimal, rounded upwards, if necessary, to the
next higher 1/100 of 1%) equal to the weighted average of the rates on overnight Federal funds transactions with members
of the Federal Reserve System arranged by Federal funds brokers on such day, as published by the Federal Reserve Bank of New York
on the Business Day next succeeding such day; provided, that if such day is not a Business Day, the Federal Funds Effective
Rate for such day shall be such rate on such transactions on the next preceding Business Day as so published on the next succeeding
Business Day.

 

“Fee Letter”
means the fee letter, dated as of August 27, 2019, by and between Liberty, Guggenheim and each Lender party thereto.

 

“Financial Officer
Certification” means, with respect to the financial statements for which such certification is required, the certification
of the chief operating officer, chief financial officer, chief executive officer or other officer with similar responsibilities
of the Borrower that such financial statements fairly present, in all material respects, the financial condition of the Borrower
and its Subsidiaries (or Holdings and its Subsidiaries, or any direct parent of Holdings and its Subsidiaries, as the case may
be) as at the dates indicated and the results of their operations and their cash flows for the periods indicated, subject to changes
resulting from audit and normal year-end adjustments.

 

    	 	- 24 -	 

     

    

 

“Financial Plan”
has the meaning specified in Section 5.01(i).

 

“First Priority”
means, with respect to any Lien purported to be created in any Collateral pursuant to any Collateral Document, that such Lien is
the only Lien to which such Collateral is subject, other than any Permitted Lien.

 

“Fiscal Quarter”
means a fiscal quarter of any Fiscal Year, which quarters shall generally end on (a) with respect to the first fiscal quarter of
any Fiscal Year, the Saturday of the thirteenth week of such Fiscal Year, (b) with respect to the second fiscal quarter of any
Fiscal Year, the Saturday of the twenty-sixth week of such Fiscal Year, (c) with respect to the third fiscal quarter of any Fiscal
Year, the Saturday of the thirty-ninth week of such Fiscal Year, and (d) with respect to the last fiscal quarter of any Fiscal
Year, the last day of such Fiscal Year, as such Fiscal Quarters may be amended in accordance with the provisions of Section 6.16
hereof.

 

“Fiscal Year”
means the fiscal year of the Borrower and its Subsidiaries ending on the Saturday closest to December 31 of each calendar year
(or such other date as may be permitted by Section 6.16).

 

“Fixed Charge
Coverage Ratio” means the ratio as of the last day of:

 

(a) the first
full Fiscal Quarter ending after the Closing Date of:

 

(i) (w) (A) Consolidated
EBITDA for the four-Fiscal Quarter period then ending plus (B) net cash received from A Team and its Subsidiaries and
utilized repay or prepay Indebtedness during such Fiscal Quarter multiplied by four (4), minus

 

(x) the sum
of (A) Consolidated Capital Expenditures for such Fiscal Quarter multiplied by four (4), plus (B) the aggregate amount of
federal, state, local and foreign income taxes paid in cash during such Fiscal Quarter (net of cash refunds of such taxes received
during such Fiscal Quarter) multiplied by four (4); provided that in no event shall the amounts calculated under this clause
(B) be less than zero, plus (C) the aggregate amount of Restricted Junior Payments paid in cash during such Fiscal Quarter
multiplied by four (4), plus (D) four (4) multiplied by the absolute value, if negative, of (I) the amount of Net Working
Capital at the end of the prior Fiscal Quarter minus (II) the amount of Net Working Capital at the end of such Fiscal Quarter,
plus

 

(y) the lesser
of (I) $5,000,000 and (II) four (4) multiplied by the amount (if positive) of (A) Net Working Capital at the end of the prior Fiscal
Quarter minus (B) Net Working Capital at the end of such Fiscal Quarter plus

 

(z) the lesser
of (I) $2,500,000 and (II) (A) the aggregate amount of Qualified Cash as at the end of such Fiscal Quarter minus (B) the
amount of Consolidated Liquidity required to be maintained as at the end of such Fiscal Quarter under Section 6.08(c) to

 

    	 	- 25 -	 

     

    

 

(ii) Consolidated
Fixed Charges for such Fiscal Quarter multiplied by four (4),

 

(b) the second full
Fiscal Quarter ending after the Closing Date of:

 

(i) (w) (A)
Consolidated EBITDA for the four Fiscal Quarter period then ending plus (B) net cash received from A Team and its Subsidiaries
and utilized repay or prepay Indebtedness during such two-Fiscal Quarter period ending on such date multiplied by two (2), minus

 

(x) the sum
of (A) Consolidated Capital Expenditures for the two-Fiscal Quarter period ending on such date multiplied by two (2), plus
(B) the aggregate amount of federal, state, local and foreign income taxes paid in cash during the two-Fiscal Quarter period ending
on such date (net of cash refunds of such taxes received during such two-Fiscal Quarter period) multiplied by two (2); provided
that in no event shall the amounts calculated under this clause (B) be less than zero, plus (C) the aggregate amount of
Restricted Junior Payments paid in cash during such two-Fiscal Quarter period ending on such date multiplied by two (2), plus
(D) two (2) multiplied by the absolute value, if negative, of (I) the amount of Net Working Capital at the end of the second preceding
Fiscal Quarter minus (II) the amount of Net Working Capital at the end of such Fiscal Quarter, plus

 

(y) the lesser
of (I) $5,000,000 and (II) two (2) multiplied by the amount (if positive) of (A) Net Working Capital at the end of the second preceding
Fiscal Quarter minus (B) Net Working Capital at the end of such Fiscal Quarter plus

 

(z) the lesser
of (I) $2,500,000 and (II) (A) the aggregate amount of Qualified Cash as at the end of such Fiscal Quarter minus (B) the
amount of Consolidated Liquidity required to be maintained as at the end of such Fiscal Quarter under Section 6.08(c) to

 

(ii) Consolidated
Fixed Charges for such Fiscal Quarter multiplied by two (2),

 

(c) the third full
Fiscal Quarter ending after the Closing Date of:

 

(i) (w) (A)
Consolidated EBITDA for the four Fiscal Quarter period then ending plus (B) net cash received from A Team and its Subsidiaries
and utilized repay or prepay Indebtedness during such three-Fiscal Quarter period ending on such date multiplied by four thirds
(4/3), minus

 

    	 	- 26 -	 

     

    

 

(x) the sum
of (A) Consolidated Capital Expenditures for the three-Fiscal Quarter period ending on such date multiplied by four thirds (4/3),
plus (B) the aggregate amount of federal, state, local and foreign income taxes paid in cash during the three-Fiscal Quarter
period ending on such date (net of cash refunds of such taxes received during such three-Fiscal Quarter period) multiplied by four
thirds (4/3); provided that in no event shall the amounts calculated under this clause (B) be less than zero, plus (C) the
aggregate amount of Restricted Junior Payments paid in cash during such three-Fiscal Quarter period ending on such date multiplied
by four thirds (4/3), plus (D) four thirds (4/3) multiplied by the absolute value, if negative, of (I) the amount of Net
Working Capital at the end of the third preceding Fiscal Quarter minus (II) the amount of Net Working Capital at the end of such
Fiscal Quarter, plus

 

(y) the lesser
of (I) $5,000,000 and (II) four thirds (4/3) multiplied by the amount (if positive) of (A) Net Working Capital at the end of the
third preceding Fiscal Quarter minus (B) Net Working Capital at the end of such Fiscal Quarter plus

 

(z) the lesser
of (I) $2,500,000 and (II) (A) the aggregate amount of Qualified Cash as at the end of such Fiscal Quarter minus (B) the
amount of Consolidated Liquidity required to be maintained as at the end of such Fiscal Quarter under Section 6.08(c) to

 

(ii) Consolidated
Fixed Charges for such Fiscal Quarter multiplied by four thirds (4/3), and

 

(d) any
other Fiscal Quarter of:

 

(i) (w) (A)
Consolidated EBITDA for the four Fiscal Quarter period then ending plus (B) net cash received from A Team and its Subsidiaries
and utilized repay or prepay Indebtedness during such four-Fiscal Quarter period ending on such date, minus

 

(x) the sum
of (A) Consolidated Capital Expenditures for such four Fiscal Quarter period then ending, plus (B) the aggregate amount
of federal, state, local and foreign income taxes paid in cash during the four Fiscal Quarter period then ending (net of cash refunds
of such taxes received during such four-Fiscal Quarter period); provided that in no event shall the amounts calculated under this
clause (B) be less than zero, plus (C) the aggregate amount of Restricted Junior Payments paid in cash during such four-Fiscal
Quarter period then ending, plus (D) the absolute value, if negative, of (I) the amount of Net Working Capital at the end
of the fourth preceding Fiscal Quarter minus (II) the amount of Net Working Capital at the end of such Fiscal Quarter, plus

 

    	 	- 27 -	 

     

    

 

(y) the lesser
of (I) $5,000,000 and (II) the amount (if positive) of (A) Net Working Capital at the end of the fourth preceding Fiscal Quarter
minus (B) Net Working Capital at the end of such Fiscal Quarter plus

 

(z) the lesser
of (I) $2,500,000 and (II) (A) the aggregate amount of Qualified Cash as at the end of such Fiscal Quarter minus (B) the
amount of Consolidated Liquidity required to be maintained as at the end of such Fiscal Quarter under Section 6.08(c) to

 

(ii) Consolidated
Fixed Charges for the four Fiscal Quarter period then ending.

 

“Flood Hazard
Property” means any Real Estate Asset subject to a mortgage in favor of Collateral Agent, for the benefit of the Secured
Parties, and located in an area designated by the Federal Emergency Management Agency as having special flood or mud slide hazards.

 

“Flow of Funds
Agreement” means that certain Flow of Funds Agreement, dated as of the Closing Date, duly executed by each Loan Party
and any other parties thereto, in form and substance reasonably satisfactory to the Administrative Agent, in connection with the
disbursement of Loan proceeds in accordance with Section 2.05.

 

“Franchise Agreement”
means a franchising agreement between Borrower or any Subsidiary thereof, as franchisor, and any other Person, as franchisee, pertaining
to the establishment and operation of a business with operations comparable to the operations of the Borrower and its Subsidiaries.

 

“Franchise Disclosure
Documents” means any uniform franchise offering circulars and franchise disclosure documents used by (and, to the extent
required, filed by) any Loan Party or Subsidiary to comply with any applicable law, rule, regulation or order of any Governmental
Authority.

 

“Franchise Laws”
means all applicable laws, rules, regulations, orders, binding guidance or other requirements of the United States Federal Trade
Commission or any other Governmental Authority relating to the relationship between franchisor and franchisees or to the offer,
sale, termination, non-renewal or transfer of a franchise.

 

“Funding Default”
has the meaning specified in Section 2.21.

 

“Funding Notice”
means a notice substantially in the form of Exhibit A-1.

 

“GAAP”
means, subject to the limitations on the application thereof set forth in Section 1.02, United States generally accepted
accounting principles in effect as of the date of determination thereof.

 

“Global Parent”
has the meaning ascribed thereto in the preamble to this Agreement..

 

“Governmental
Authority” means any federal, state, municipal, national, or other government, governmental department, commission, board,
bureau, court, agency, or instrumentality or political subdivision thereof, or any entity or officer exercising executive, legislative,
judicial, regulatory, or administrative functions of or pertaining to any government or any court, in each case whether associated
with a state of the United States, the United States, or a foreign entity or government.

 

    	 	- 28 -	 

     

    

 

“Governmental
Authorization” means any permit, license, authorization, plan, directive, consent order, or consent decree of or from
any Governmental Authority.

 

“Grantor”
has the meaning specified in the Security Agreement.

 

“Guaranteed
Obligations” has the meaning specified in Section 7.01.

 

“Guarantor”
means (a) Holdings, (b) Borrower (other than with respect to its own Obligations), (c) each Subsidiary of Holdings that
is a party to this Agreement (whether by executing the a signature page hereto or pursuant to a joinder to this Agreement) as a
Guarantor Subsidiary, (d) each Guarantor under and as defined in the Parent Guaranty and Collateral Agreement and (e) each other
Person which guarantees, pursuant to Article VII or otherwise, all or any part of the Obligations.

 

“Guarantor Subsidiary”
means each Guarantor that is a Subsidiary of Holdings.

 

“Guaranty”
means (a) the guaranty of each Guarantor set forth in Article VII, (b) the guaranty set forth in the Parent Guaranty
and Collateral Agreement, and (c) each other guaranty, in form and substance satisfactory to Administrative Agent, made by any
other Guarantor for the benefit of the Secured Parties guaranteeing all or part of the Obligations.

 

“Guggenheim”
has the meaning ascribed thereto in the preamble to this Agreement.

 

“Hazardous Materials”
means (a) substances that are defined or listed in, or otherwise classified pursuant to, any applicable laws or regulations
as “hazardous substances,” “hazardous materials,” “hazardous wastes,” “toxic substances,”
or any other formulation intended to define, list, or classify substances by reason of deleterious properties such as ignitability,
corrosivity, reactivity, carcinogenicity, reproductive toxicity, or “EP toxicity,” (b) oil, petroleum, or petroleum
derived substances, natural gas, natural gas liquids, synthetic gas, drilling fluids, produced waters, and other wastes associated
with the exploration, development, or production of crude oil, natural gas, or geothermal resources, (c) any flammable substances
or explosives or any radioactive materials, and (d) asbestos in any form or electrical equipment that contains any oil or
dielectric fluid containing levels of polychlorinated biphenyls in excess of 50 parts per million.

 

“Highest Lawful
Rate” means the maximum lawful interest rate, if any, that at any time or from time to time may be contracted for, charged,
or received under the laws applicable to any Lender which are presently in effect or, to the extent allowed by law, under such
applicable laws which may hereafter be in effect and which allow a higher maximum non-usurious interest rate than applicable laws
now allow.

 

    	 	- 29 -	 

     

    

 

“Historical
Financial Statements” means the unaudited financial statements of the Business (as defined in the Closing Date Acquisition
Agreement) for the Fiscal Quarter ended June 30, 2019, consisting of balance sheets and the related consolidated statements of
income, stockholders’ equity, and cash flows for such Fiscal Quarter.

 

“Holdings”
has the meaning specified in the preamble hereto.

 

“Increased Cost
Lender” has the meaning specified in Section 2.22.

 

“Indebtedness”
means, as applied to any Person, without duplication, (a) all indebtedness for borrowed money, (b) that portion of obligations
with respect to Capital Leases that is properly classified as a liability on a balance sheet in conformity with GAAP, (c) all
obligations of such Person evidenced by notes, bonds, or similar instruments or upon which interest payments are customarily paid
and all obligations in respect of notes payable and drafts accepted representing extensions of credit whether or not representing
obligations for borrowed money, (d) any obligation owed for all or any part of the deferred purchase price of property or
services, including any deferred payment obligations in connection with an acquisition to the extent such deferred payment obligations
are fixed and non-contingent (excluding any such obligations incurred under ERISA and excluding trade payables incurred in the
ordinary course of business and repayable in accordance with customary trade terms), (e) all obligations created or arising
under any conditional sale or other title retention agreement with respect to property acquired by such Person, (f) all indebtedness
secured by any Lien on any property or asset owned or held by that Person regardless of whether the indebtedness secured thereby
shall have been assumed by that Person or is non-recourse to the credit of that Person, (g) the face amount of any letter
of credit or letter of guaranty issued, bankers’ acceptances facilities, surety bonds, and similar credit transactions issued
for the account of that Person or as to which that Person is otherwise liable for reimbursement of drawings, (h) the direct
or indirect guaranty, endorsement (otherwise than for collection or deposit in the ordinary course of business), co-making, discounting
with recourse, or sale with recourse by such Person of the obligation of another, (i) any obligation of such Person the primary
purpose or intent of which is to provide assurance to an obligee that the obligation of the obligor thereof will be paid or discharged,
or any agreement relating thereto will be complied with, or the holders thereof will be protected (in whole or in part) against
loss in respect thereof, (j) any liability of such Person for an obligation of another through any agreement (contingent or
otherwise) (i) to purchase, repurchase, or otherwise acquire such obligation or any security therefor, or to provide funds
for the payment or discharge of such obligation (whether in the form of loans, advances, stock purchases, capital contributions,
or otherwise) or (ii) to maintain the solvency or any balance sheet item, level of income, or financial condition of another
if, in the case of any agreement described under subclauses (i) or (ii) of this clause (j),
the primary purpose or intent thereof is as described in clause (i) above, (k) all obligations of such Person
in respect of any exchange traded or over the counter derivative transaction, whether entered into for hedging or speculative purposes.
The Indebtedness of any Person shall include the Indebtedness of any partnership or joint venture in which such Person is a general
partner or joint venturer, unless such Indebtedness is expressly non-recourse to such Person.

 

    	 	- 30 -	 

     

    

 

“Indemnified
Liabilities” means, collectively, any and all liabilities, obligations, losses, damages (including natural resource damages),
penalties and claims (including Environmental Liabilities), and reasonable and documented out-of-pocket costs (including the costs
of any investigation, study, sampling, testing, abatement, cleanup, removal, remediation, or other response action necessary to
remove, remediate, clean up, or abate any Hazardous Materials), expenses, and disbursements of any kind or nature whatsoever (including
the reasonable and documented fees and reasonable and documented out-of-pocket disbursements of counsel for Indemnitees in connection
with any investigative, administrative, or judicial proceeding commenced or threatened in writing by any Person, whether or not
any such Indemnitee shall be designated as a party or a potential party thereto, and any reasonable and documented fees or expenses
incurred by Indemnitees in enforcing this indemnity (limited, in the case of legal expenses, to the reasonable and documented fees
and reasonable and documented out-of-pocket disbursements of one primary counsel (to be retained by the Administrative Agent) to
all Indemnitees, taken as a whole, and, if reasonably necessary, one local counsel in any relevant jurisdiction (which may include
a single firm of counsel acting in multiple jurisdictions) and, in the case of an actual or perceived conflict of interest where
any Indemnitee affected by such conflict informs Borrower of such conflict, in each case, of a single additional firm of counsel
in each relevant jurisdiction for all similarly situated affected Indemnitees)), whether direct, indirect, or consequential and
whether based on any federal, state, or foreign laws, statutes, rules, or regulations (including securities and commercial
laws, statutes, rules, or regulations and Environmental Laws), on common law or equitable cause or on contract or otherwise, that
may be imposed on, incurred by, or asserted against any such Indemnitee, in any manner relating to or arising out of (a) this
Agreement or the other Loan Documents or the transactions contemplated hereby or thereby (including Lenders’ agreement to
make Credit Extensions or the use or intended use of the proceeds thereof, or any enforcement of any of the Loan Documents (including
any sale of, collection from, or other realization upon any of the Collateral or the enforcement of the Guaranty)), (b) the
statements contained in any commitment letter delivered by any Lender to Borrower with respect to the transactions contemplated
by this Agreement, or (c) any Environmental Liabilities or any Hazardous Materials relating to or arising from, directly or
indirectly, any past or present activity, operation, land ownership, or practice of Holdings or any of its Subsidiaries.

 

“Indemnified
Taxes” has the meaning specified in Section 2.19(a).

 

“Indemnitee”
has the meaning specified in Section 10.03(a).

 

“Indemnitee
Agent Party” has the meaning specified in Section 9.06.

 

“Insolvency
Proceeding” means any proceeding commenced by or against any Person under any provision of any Debtor Relief Law.

 

“Installment”
has the meaning specified in Section 2.11.

 

“Installment
Date” has the meaning specified in Section 2.11.

 

“Intellectual
Property” has the meaning ascribed to such term in the Security Agreement.

 

“Intercompany
Subordination Agreement” means that certain Intercompany Subordination Agreement, dated as of the Closing Date, made
by the Loan Parties, S/B Parent, Global Parent, and Liberty Top Parent in favor of Collateral Agent, for the benefit of the Secured
Parties, in form and substance satisfactory to Collateral Agent.

 

    	 	- 31 -	 

     

    

 

“Internally
Generated Cash” shall mean any Cash or Cash Equivalents of Holdings or any of its Subsidiaries that is not generated
from an Asset Sale, a Casualty Event, an incurrence of Indebtedness, an issuance of Capital Stock or a capital contribution.

 

“Interest Payment
Date” means with respect to (a) any Base Rate Loan, (i) the first day of each fiscal quarter, commencing on
the first such date to occur after the Closing Date, and (ii) the final maturity date of such Loan, and (b) any LIBOR
Rate Loan, (i) the last day of each Interest Period applicable to such Loan and (ii) if earlier, three months after the commencement
of such Interest Period.

 

“Interest Period”
means, in connection with a LIBOR Rate Loan, an interest period of one, two, three, or six months, as selected by Borrower
in the applicable Funding Notice or Conversion/Continuation Notice, (a) initially, commencing on the Closing Date or Conversion/Continuation
Date thereof, as the case may be and (b) thereafter, commencing on the day on which the immediately preceding Interest Period
expires; provided, that (i) if an Interest Period would otherwise expire on a day that is not a Business Day, such
Interest Period shall expire on the next succeeding Business Day unless no further Business Day occurs in such month, in which
case such Interest Period shall expire on the immediately preceding Business Day, (ii) any Interest Period that begins on
the last Business Day of a calendar month (or on a day for which there is no numerically corresponding day in the calendar month
at the end of such Interest Period) shall, subject to clause (b)(iii) of this definition, end on the last Business
Day of a calendar month, and (iii) no Interest Period with respect to any portion of any Term Loans shall extend beyond the
Maturity Date.

 

“Interest Rate
Determination Date” means, with respect to any Interest Period, the date that is two (2) Business Days prior to the first
day of such Interest Period.

 

“Internal Revenue
Code” means the Internal Revenue Code of 1986, as amended to the date hereof and from time to time hereafter, and
any successor statute.

 

“Inventory”
has the meaning ascribed to such term in the Security Agreement.

 

“Investment”
means (a) any direct or indirect purchase or other acquisition by Holdings or any of its Subsidiaries of, or of a beneficial
interest in, any of the Securities or all or substantially all of the assets of any other Person (other than a Guarantor Subsidiary)
(or of any division or business line of such other Person), (b) any direct or indirect redemption, retirement, purchase, or
other acquisition for value by any Subsidiary of Holdings from any Person (other than a Loan Party), of any Capital Stock of such
Person, (c) any direct or indirect loan, advance, or capital contributions by Holdings or any of its Subsidiaries to any other
Person (other than a Loan Party), including all indebtedness and accounts receivable from that other Person that are not current
assets or did not arise from sales to that other Person in the ordinary course of business, and (d) any direct or indirect
Guaranty of any obligations of any other Person (other than a Loan Party). The amount of any Investment shall be the original cost
of such Investment plus the cost of all additions thereto, without any adjustments for increases or decreases in value, or write
ups, write downs, or write offs with respect to such Investment.

 

    	 	- 32 -	 

     

    

 

“Joinder”
means a Joinder substantially in the form of Annex 1 to the Security Agreement delivered by a Loan Party pursuant to
Section 5.10.

 

“Joint Venture”
means a joint venture, partnership, or other similar arrangement, whether in corporate, partnership, or other legal form; provided,
that in no event shall any corporate Subsidiary of any Person be considered to be a Joint Venture to which such Person is a party.

 

“Lender”
means (i) each lender listed on the signature pages hereto as a Lender, and (ii) any other Person that becomes a party hereto pursuant
to an Assignment Agreement other than any Person that ceases to be a party hereto pursuant to any Assignment Agreement.

 

“Liberty”
means Franchise Group, Inc., a Delaware corporation (f/k/a Liberty Tax, Inc.).

 

“Liberty Borrower”
means Franchise Group Intermediate L 2, LLC, a Delaware limited liability company.

 

“Liberty Parent”
means Franchise Group Intermediate L 1, LLC, a Delaware limited liability company.

 

“Liberty Subordinated
Debt” means Indebtedness incurred by Liberty Borrower, which constitutes Subordinated Debt (under and as defined in that
certain Credit Agreement, dated as of May 16, 2019, among Liberty Borrower, the other loan parties party thereto, CIBC Bank USA,
as administrative agent, and the lenders and other financial institutions party thereto, as such Credit Agreement may be amended,
restated, amended and restated, supplemented, modified or replaced not in violation of this Agreement).

 

“Liberty Top
Parent” has the meaning ascribed thereto in the preamble to this Agreement.

 

“LIBOR Rate”
has the meaning assigned to such term in the definition of Adjusted LIBOR Rate.

 

“LIBOR Rate
Loan” means a Loan bearing interest at a rate determined by reference to the Adjusted LIBOR Rate.

 

“Licensed Trademarks”
has the meaning specified in Section 4.26.

 

“Lien”
means (a) any lien, mortgage, pledge, assignment, hypothecation, deed of trust, security interest, charge, or encumbrance
of any kind (including any agreement to give any of the foregoing, any conditional sale or other title retention agreement, and
any lease in the nature thereof) and any option, trust, or other preferential arrangement having the practical effect of any of
the foregoing, and (b) in the case of Securities, any purchase option, call, or similar right of a third party with respect
to such Securities.

 

    	 	- 33 -	 

     

    

 

“Loan”
means a Term Loan.

 

“Loan Account”
means an account maintained hereunder by Administrative Agent on its books of account at the Payment Office and with respect to
Borrower, in which it will be charged with all Loans made to, and all other Obligations incurred by, the Loan Parties.

 

“Loan Document”
means any of this Agreement, the Notes, if any, the Collateral Documents, the Fee Letter, the Flow of Funds Agreement, any Guaranty,
the Intercompany Subordination Agreement, the Parent Guaranty and Collateral Agreement, each Borrowing Base Certificate, and all
other documents, instruments, or agreements executed and delivered by a Loan Party, S/B Parent, Global Parent, or Liberty Top Parent
for the benefit of Administrative Agent or any Lender in connection herewith.

 

“Loan Party”
means Holdings, Borrower or any Guarantor Subsidiary.

 

“Margin Stock”
has the meaning specified in Regulation U of the Board of Governors of the Federal Reserve System as in effect from time to
time.

 

“Material Adverse
Effect” means (i) after the Closing Date, a material adverse effect on and/or material adverse developments with respect
to (a) the business operations, properties, assets, condition (financial or otherwise) or liabilities of the Borrower and
its Subsidiaries taken as a whole, (b) the ability of any Loan Party, S/B Parent, Global Parent, or Liberty Top Parent to
fully and timely perform its obligations under any Loan Document to which it is a party, (c) the legality, validity, binding
effect, or enforceability against a Loan Party, S/B Parent, Global Parent, or Liberty Top Parent of a Loan Document to which it
is a party or (ii) on the Closing Date, a “Material Adverse Effect” as defined in the Closing Date Acquisition Agreement.

 

“Material Intellectual
Property” means (i) all Intellectual Property with a material value to the business engaged in by the Borrower or any
of its Subsidiaries, or (ii) generates material revenue for Borrower or any of Subsidiary thereof (but not to include any “intent-to-use”
trademark applications until such time that a statement of use has been accepted for filing).

 

“Material Real
Estate Asset” means any fee owned Real Estate Asset having a fair market value in excess of $500,000 (as of the
Closing Date or, with respect to any Real Estate Asset acquired after the Closing Date, as of the date of acquisition thereof,
in each case, as reasonably estimated by the Borrower in good faith in consultation with Collateral Agent).

 

“Maturity Date”
means the earlier of (a) October 23, 2023 and (b) the date that the Term Loan shall become due and payable in full hereunder,
whether by acceleration or otherwise.

 

“Moody’s”
means Moody’s Investor Services, Inc.

 

“Mortgage”
means a mortgage, deed of trust, or other deed to secure debt, in form and substance reasonably satisfactory to Collateral Agent,
made by a Loan Party, S/B Parent, Global Parent, or Liberty Top Parent in favor of Collateral Agent, for the benefit of the Secured
Parties, granting a Lien on any Real Property securing the Obligations and delivered to Collateral Agent.

 

    	 	- 34 -	 

     

    

 

“Multiemployer
Plan” means any Employee Benefit Plan which is a “multiemployer plan” as defined in Section 3(37) or Section
4001(a)(3) of ERISA.

 

“Narrative Report”
means, with respect to the financial statements for which such narrative report is required, (a) a narrative report describing
the operations of the Borrower and its Subsidiaries in the form prepared for presentation to senior management thereof, and (b) a
financial report package including management’s discussion and analysis of the financial condition and results of operations,
in each case, for the applicable fiscal month, Fiscal Quarter or Fiscal Year and for the period from the beginning of the then
current Fiscal Year to the end of such period to which such financial statements relate with comparison to and variances from the
immediately preceding period and budget.

 

“Net Orderly
Liquidation Value” means, as of any date of determination, with respect to Eligible Inventory, the percentage of the
book value of such Inventory that is estimated to be recoverable in an orderly liquidation of such Inventory net of all associated
costs and expenses of such liquidation, such percentage to be determined as to each category of Inventory and as specified in the
most recent appraisal of Inventory delivered pursuant to Section 5.06; provided that the Net Orderly Liquidation
Value shall be calculated with respect to Eligible Inventory by (x) any one of the following that is mutually agreeable to Administrative
Agent and Borrower: Gordon Brothers, Great America, or Hilco or (y) any other appraiser selected by Administrative Agent and reasonably
acceptable to Borrower.

 

“Net Proceeds”
means (a) with respect to any Asset Sale, an amount equal to: (i) Cash payments received by Holdings or any of its Subsidiaries
from such Asset Sale, minus (ii) any bona fide direct costs incurred in connection with such Asset Sale to the extent
paid or payable to non-Affiliates, including (A) income or gains taxes payable by the seller as a result of any gain recognized
in connection with such Asset Sale during the tax period the sale occurs, (B) payment of the outstanding principal amount
of, premium or penalty and interest on, any Indebtedness (other than the Loans) that is secured by a Lien on the stock or assets
in question and that is required to be repaid under the terms thereof as a result of such Asset Sale, and (C) a reasonable
reserve for any indemnification payments (fixed or contingent) attributable to seller’s indemnities and representations and
warranties to purchaser in respect of such Asset Sale undertaken by Holdings or any of its Subsidiaries in connection with such
Asset Sale; provided, that upon release of any such reserve, the amount released shall be considered Net Proceeds, and (b) with
respect to any insurance, condemnation, taking, or other casualty proceeds, an amount equal to: (i) any Cash payments or proceeds
received by Holdings or any of its Subsidiaries (A) under any casualty, business interruption, or “key man” insurance
policies in respect of any covered loss thereunder or (B) as a result of the condemnation or taking of any assets of Holdings
or any of its Subsidiaries by any Person pursuant to the power of eminent domain, condemnation, or otherwise, or pursuant to a
sale of any such assets to a purchaser with such power under threat of such a taking, minus (ii) (A) any actual and
reasonable costs incurred by Holdings or any of its Subsidiaries in connection with the adjustment or settlement of any claims
of Holdings or such Subsidiary in respect thereof, and (B) any bona fide direct costs incurred in connection with any sale
of such assets as referred to in clause (b)(i)(B) of this definition to the extent paid or payable to non-Affiliates,
including income taxes payable as a result of any gain recognized in connection therewith (including, without limitation, Permitted
Tax Payments).

 

    	 	- 35 -	 

     

    

 

“Net
Working Capital” means, at any time, Consolidated Current Assets at such time minus Consolidated Current Liabilities
at such time.

 

“Non-Consenting
Lender” shall have the meaning assigned to such term in Section 2.22).

 

“Non-US Lender”
has the meaning specified in Section 2.19(d)(i).

 

“Note”
means a promissory note evidencing the Term Loan.

 

“Obligations”
means all loans (including the Term Loans (inclusive of Protective Advances)), debts, principal, interest (including any interest
that accrues after the commencement of an Insolvency Proceeding, regardless of whether allowed or allowable in whole or in part
as a claim in any such Insolvency Proceeding), the Exit Fee, liabilities, obligations (including indemnification obligations),
fees (including the fees provided for in the Fee Letter), expenses (including any fees or expenses that accrue after the commencement
of an Insolvency Proceeding, regardless of whether allowed or allowable in whole or in part as a claim in any such Insolvency Proceeding),
guaranties, and all covenants and duties of any other kind and description owing by any Loan Party, S/B Parent, Global Parent,
or Liberty Top Parent arising out of, under, pursuant to, in connection with, or evidenced by this Agreement or any of the other
Loan Documents, and irrespective of whether for the payment of money, whether direct or indirect, absolute or contingent, due or
to become due, now existing or hereafter arising, and including all interest not paid when due and all other expenses or other
amounts that any Loan Party, S/B Parent, Global Parent, or Liberty Top Parent is required to pay or reimburse by the Loan Documents,
by law, or otherwise in connection therewith. Without limiting the generality of the foregoing, the Obligations of Borrower under
the Loan Documents include the obligation to pay (a) the principal of the Term Loans, (b) interest accrued on the Term
Loans, (c) expenses, (d) the Exit Fee and other fees payable under this Agreement or any of the other Loan Documents,
and (e) indemnities and other amounts payable by any Loan Party, S/B Parent, Global Parent, or Liberty Top Parent under any
Loan Document. Any reference in this Agreement or in the Loan Documents to the Obligations shall include all or any portion thereof
and any extensions, modifications, renewals, or alterations thereof, both prior and subsequent to any Insolvency Proceeding.

 

“OFAC”
means The Office of Foreign Assets Control of the U.S. Department of the Treasury.

 

“OFAC Sanctions
Programs” means (a) the Requirements of Law and Executive Orders administered by OFAC, including but not limited
to, Executive Order No. 13224, and (b) the list of Specially Designated Nationals and Blocked Persons administered by OFAC,
in each case, as renewed, extended, amended, or replaced.

 

“Organizational
Documents” means (a) with respect to any corporation, its certificate or articles of incorporation or organization,
as amended, and its by-laws, as amended, (b) with respect to any limited partnership, its certificate of limited partnership,
as amended, and its partnership agreement, as amended, (c) with respect to any general partnership, its partnership agreement,
as amended, and (d) with respect to any limited liability company, its articles of organization or certificate of formation,
as amended, and its operating agreement or limited liability company agreement, as amended. In the event any term or condition
of this Agreement or any other Loan Document requires any Organizational Document to be certified by a secretary of state or similar
governmental official, the reference to any such “Organizational Document” shall only be to a document of a type customarily
certified by such governmental official.

 

    	 	- 36 -	 

     

    

 

“Other Connection
Taxes” has the meaning specified in Section 2.19(a).

 

“Other Taxes”
has the meaning specified in Section 2.19(b).

 

“Owned Trademarks”
has the meaning specified in Section 4.26.

 

“Parent Guaranty
and Collateral Agreement” means the Parent Guaranty and Collateral Agreement, substantially in the form of Exhibit H,
as it may be amended, supplemented, or otherwise modified from time to time.

 

“Participant
Register” has the meaning specified in Section 10.06(h)(ii).

 

“PATRIOT Act”
has the meaning specified in Section 4.32.

 

“Payment Office”
means Administrative Agent’s office located at 330 Madison Avenue, 11th Floor, New York, New York 10017 or
such other office or offices of Administrative Agent as may be designated in writing from time to time by Administrative Agent
to Borrower.

 

“PBGC”
means the Pension Benefit Guaranty Corporation or any successor thereto.

 

“Pension Plan”
means any Employee Benefit Plan, other than a Multiemployer Plan, which is subject to Section 412 of the Internal Revenue
Code or Section 302 of ERISA.

 

“Perfection
Certificate” means a certificate in form reasonably satisfactory to Collateral Agent that provides information with respect
to the assets of each Loan Party, S/B Parent Global Parent, or Liberty Top Parent.

 

“Permitted Discretion”
means a good faith determination made by the Administrative Agent, exercising commercially reasonable business judgment.

 

“Permitted Holders”
means Vintage Capital Management, LLC and its Affiliates.

 

“Permitted Indebtedness”
means:

 

(a)              
the Obligations,

 

(b)              
Indebtedness of any Guarantor Subsidiary to Borrower or to any other Guarantor Subsidiary, or of Borrower to any Guarantor
Subsidiary, or of any Loan Party to any Subsidiary of Holdings that is not a Loan Party; provided, that (i) all such
Indebtedness shall be evidenced by promissory notes and all such notes shall be subject to a First Priority Lien pursuant to the
Security Agreement, and (ii) all such Indebtedness shall be unsecured and subordinated in right of payment to the payment
in full of the Obligations pursuant to the terms of the Intercompany Subordination Agreement,

 

    	 	- 37 -	 

     

    

 

(c)              
Indebtedness incurred by Holdings or any of its Subsidiaries arising from agreements providing for indemnification, adjustment
of purchase or acquisition price, deferred purchase price or similar obligations, or from guaranties or letters of credit, surety
bonds, or performance bonds securing the performance of Borrower or any such Subsidiary pursuant to such agreements, in connection
with permitted dispositions of any business or assets of Holdings or any of its Subsidiaries,

 

(d)              
Indebtedness which may be deemed to exist pursuant to any guaranties, performance, surety, statutory, appeal, or similar
obligations incurred in the ordinary course of business and Indebtedness constituting guaranties in the ordinary course of business
of the obligations of suppliers, customers, franchisees, and licensees of Holdings and its Subsidiaries (including, without limitation,
Indebtedness consisting of take or pay obligations contained in supply agreements in the ordinary course of business),

 

(e)              
Indebtedness in respect of netting services, overdraft protections, and otherwise in connection with deposit accounts,

 

(f)               
Indebtedness described in Schedule 6.1, but not any extensions, renewals, or replacements of such Indebtedness
except (i) renewals and extensions expressly provided for in the agreements evidencing any such Indebtedness as the same are
in effect on the date of this Agreement, and (ii) refinancings and extensions of any such Indebtedness if the terms and conditions
thereof are not less favorable to the obligor thereon or to Lenders than the Indebtedness being refinanced or extended (except
that the interest rate on such Indebtedness shall be at the then prevailing market rate), and the average life to maturity thereof
is greater than or equal to that of the Indebtedness being refinanced or extended; provided, that such Indebtedness permitted
under the immediately preceding clause (i) or (ii) above shall not (A) include Indebtedness of an
obligor that was not an obligor with respect to the Indebtedness being extended, renewed, or refinanced, (B) exceed in a principal
amount the Indebtedness being renewed, extended, or refinanced, or (C) be incurred, created, or assumed if any Default or
Event of Default has occurred and is continuing or would result therefrom,

 

(g)              
Permitted Purchase Money Indebtedness,

 

(h)              
Indebtedness owing to insurance carriers and incurred to finance insurance premiums of Holdings or any of its Subsidiaries
in the ordinary course of business,

 

(i)                
guarantees by Holdings, Borrower and the Guarantor Subsidiaries of any indebtedness or other obligations of any Loan Party
permitted to be incurred hereunder,

 

(j)                
Indebtedness incurred by Holdings or any of its Subsidiaries arising under the Workers Comp L/C so long as the face amount
thereof does not exceed $5,565,000, together with any additional amounts (in an aggregate additional face amount not exceeding
$5,565,000) temporarily outstanding for no longer than ten (10) Business Days (or such later date as the Administrative Agent may
approve) during the replacement process of the Workers Comp L/C as permitted by the definition of Workers Comp L/C, and

 

    	 	- 38 -	 

     

    

 

(k)              
other Indebtedness in an aggregate principal amount not exceeding $250,000 at any time outstanding.

 

“Permitted Investments”
means:

 

(a)              
Investments in Cash and Cash Equivalents,

 

(b)              
equity Investments owned as of the Closing Date in any Subsidiary of Holdings and Investments made after the Closing Date
in any wholly owned Guarantor Subsidiaries,

 

(c)              
Investments (i) in any Securities received in satisfaction or partial satisfaction thereof from financially troubled
account debtors, and (ii) deposits, prepayments, and other credits to suppliers made in the ordinary course of business consistent
with the past practices of Holdings and its Subsidiaries,

 

(d)              
to the extent constituting an Investment, Permitted Indebtedness,

 

(e)              
Consolidated Capital Expenditures,

 

(f)               
the Closing Date Acquisition,

 

(g)              
Investments described in Schedule 6.7,

 

(h)              
Investments consisting of extensions of credit in the nature of accounts receivable or notes receivable arising from the
grant of trade credit in the ordinary course of business,

 

(i)                
advances in the form of prepayment of expenses that are expected to be due and payable in connection with operations of
the Loan Parties in the ordinary course of business, so long as such expenses are being paid in accordance with customary trade
terms of the applicable Loan Party,

 

(j)                
other Investments made on the Closing Date in connection with the Transactions in an aggregate original amount not to exceed
$15,000,000, and

 

(k)              
other Investments not otherwise described above in an aggregate amount not to exceed at any time $1,000,000.

 

“Permitted Liens”
means:

 

(a)              
Liens in favor of Collateral Agent for the benefit of the Secured Parties granted pursuant to any Loan Document,

 

    	 	- 39 -	 

     

    

 

(b)              
Liens for Taxes if obligations with respect to such Taxes are being contested in good faith by appropriate proceedings promptly
instituted and diligently conducted and reserves required by GAAP have been made, so long as the aggregate amount of such Taxes
does not exceed $100,000,

 

(c)              
statutory Liens of landlords, banks (and rights of set off), carriers, warehousemen, mechanics, repairmen, workmen, and
materialmen, and other Liens imposed by law (other than any such Lien imposed pursuant to Section 430(k) of the Internal Revenue
Code or by Section 303(k) of ERISA), in each case incurred in the ordinary course of business for amounts not overdue by more than
thirty (30) days or which are being contested in good faith by appropriate proceedings promptly instituted and diligently conducted
and reserves required by GAAP have been made,

 

(d)              
Liens incurred in the ordinary course of business in connection with workers’ compensation, unemployment insurance,
and other types of social security, or to secure appeal bonds or the performance of tenders, statutory obligations, surety and
appeal bonds, bids, leases, government contracts, trade contracts, performance and return of money bonds, and other similar obligations
(exclusive of obligations for the payment of borrowed money or other Indebtedness), so long as no foreclosure, sale, or similar
proceedings have been commenced with respect to any portion of the Collateral on account thereof,

 

(e)              
easements, rights of way, restrictions, encroachments, and other minor defects or irregularities in title, in each case
which do not and will not interfere in any material respect with the ordinary conduct of the business of Holdings or any of its
Subsidiaries,

 

(f)               
any interest or title of a lessor or sublessor under any lease of real estate permitted hereunder,

 

(g)              
Liens solely on any cash earnest money deposits made by Holdings or any of its Subsidiaries in connection with any letter
of intent or purchase agreement permitted hereunder,

 

(h)              
purported Liens evidenced by the filing of precautionary UCC financing statements relating solely to operating leases of
personal property entered into in the ordinary course of business,

 

(i)                
Liens in favor of customs and revenue authorities arising as a matter of law to secure payment of customs duties in connection
with the importation of goods,

 

(j)                
any zoning or similar law or right reserved to or vested in any governmental office or agency to control or regulate the
use of any real property,

 

(k)              
licenses of patents, trademarks, and other intellectual property rights granted by Holdings or any of its Subsidiaries in
the ordinary course of business and not interfering in any respect with the ordinary conduct of the business of Borrower or such
Subsidiary,

 

    	 	- 40 -	 

     

    

 

(l)                
Liens in favor of banking or other financial institutions arising as a matter of law or relating exclusively to Cash Management
Services,

 

(m)            
Liens described in Schedule 6.2,

 

(n)              
Liens securing Permitted Purchase Money Indebtedness; provided, that any such Lien shall encumber only the asset
subject to such Capital Lease or the asset acquired with the proceeds of such Indebtedness,

 

(o)              
cash collateral in an aggregate amount at any time not exceeding 105% multiplied the face amount of the Workers Comp L/C,
together with any additional cash collateral (in an aggregate additional amount not exceeding 105% off the face amount of any replacement
Workers Comp LC) temporarily outstanding for no longer than ten (10) Business Days (or such later date as the Administrative Agent
may approve) during the replacement process of the Workers Comp L/C as permitted by the definition of Workers Comp L/C,

 

(p)              
Liens in favor of Credit Card Issuers and Credit Card Processors arising in the ordinary course of business securing the
obligation to pay customary fees and expenses in connection with credit card arrangements,

 

(q)              
Liens in respect of any judgments that, individually or in the aggregate, would not constitute an Event of Default hereunder,

 

(r)               
possessory Liens in favor of brokers and dealers in connection with the acquisition or dispositions of Permitted Investments,
provided that such liens (i) attach only to such Investments and (ii) secure only obligations incurred in the ordinary course
and arising in connection with the acquisition or disposition of such Investments and not any obligation in connection with Margin
Stock,

 

(s)               
any interest of, and Liens granted to, consignors in the ordinary course of business with respect to the consignment of
goods to a Loan Party,

 

(t)                
Liens constituting premium rebates securing financing arrangements with respect to insurance premiums, and

 

(u)              
other Liens securing obligations in an aggregate principal amount not exceeding $250,000 at any time outstanding.

 

“Permitted Purchase
Money Indebtedness” means, as of any date of determination, Indebtedness (other than the Obligations, but including Capital
Leases and purchase money Indebtedness), incurred after the Closing Date and at the time of, or within 20 days after,
the acquisition of any fixed assets for the purpose of financing all or any part of the acquisition cost thereof, in an aggregate
principal amount outstanding at any one time not in excess of $5,000,000.

 

“Permitted Tax
Payments” means distributions or other payments from Borrower to Holdings, which will in turn be distributed by Holdings,
in an amount equal to 25% times the Consolidated Pre-Tax Net Income.

 

    	 	- 41 -	 

     

    

 

“Person”
means and includes natural persons, corporations, limited partnerships, general partnerships, limited liability companies, limited
liability partnerships, joint stock companies, Joint Ventures, associations, companies, trusts, banks, trust companies, land trusts,
business trusts, or other organizations, whether or not legal entities, and Governmental Authorities.

 

“Phase I Report”
means, with respect to any Real Property, a report that (a) conforms to the ASTM Standard Practice for Environmental Site Assessments:
Phase I Environmental Site Assessment Process, E 1527, (b) was conducted no more than six months prior to the date such report
is required to be delivered hereunder, by one or more environmental consulting firms reasonably satisfactory to Collateral Agent,
(c) includes an assessment of asbestos containing materials at such Real Property, and (d) is accompanied by an estimate of the
reasonable worst case cost of investigating and remediating any Hazardous Materials Activity identified in the Phase I Report as
giving rise to an actual or potential material violation of any Environmental Law or as presenting a material risk of giving rise
to a material Environmental Action.

 

“Principal Office”
means, the Administrative Agent’s “Principal Office” as set forth on Appendix B or such other office
as such Person may from time to time designate in writing to Borrower and each Lender.

 

“Projections”
has the meaning specified in Section 4.08.

 

“Pro Rata Share”
means (a) with respect to all payments, computations, and other matters relating to the Term Loan of any Lender, the percentage
obtained by dividing (i) the Term Loan Exposure of that Lender, by (ii) the aggregate Term Loan Exposure of all Lenders,
and (b) for all other purposes with respect to each Lender, the percentage obtained by dividing (i) an amount equal to
the sum of the Term Loan Exposure of that Lender, by (ii) an amount equal to the sum of the aggregate Term Loan Exposure of
all Lenders.

 

“Protective
Advances” has the meaning specified in Section 2.03.

 

“Qualified Capital
Stock” means and refers to any Capital Stock issued by Holdings or Borrower (and not by any other Person) that is not
Disqualified Capital Stock.

 

“Qualified Cash”
means, as of any date of determination, the amount of unrestricted Cash and Cash Equivalents of the Loan Parties that is in Deposit
Accounts or in Securities Accounts, or any combination thereof, which such Deposit Account or Securities Account is subject to
a Control Agreement (subject to the timing requirements set forth in Section 6.17) and is maintained by a branch office
of the bank or securities intermediary located within the United States.

 

“Real Estate
Asset” means, at any time of determination, any interest (fee, leasehold, or otherwise) then owned by any Loan Party,
S/B Parent, Global Parent, or Liberty Top Parent in any real property.

 

    	 	- 42 -	 

     

    

 

“Real Property”
means any real property (including all buildings, fixtures, or other improvements located thereon) now, hereafter, or heretofore
owned or leased by Holdings or any of its Subsidiaries or any of their respective predecessors or Affiliates.

 

“Refranchising
Activity” means the sale of any retail locations owned or operated by Borrower to franchisee(s) to be owned and operated
by such franchisee(s), with such franchisee(s) to provide royalties to Borrower in connection with the operation of such retail
locations.

 

“Register”
has the meaning specified in Section 2.06(b).

 

“Regulation D”
means Regulation D of the Board of Governors of the Federal Reserve System, as in effect from time to time.

 

“Reinvestment
Amounts” has the meaning specified in Section 2.13(a).

 

“Related Fund”
means, with respect to any Lender that is an investment fund, any other investment fund that invests in commercial loans and that
is managed or advised by the same investment advisor as such Lender or by an Affiliate of such investment advisor.

 

“Remedial Action”
means all actions taken to (a) clean up, remove, remediate, contain, treat, monitor, assess, evaluate, or in any way address
Hazardous Materials in the indoor or outdoor environment, (b) prevent or minimize a release or threatened release of Hazardous
Materials so they do not migrate or endanger or threaten to endanger public health or welfare or the indoor or outdoor environment,
(c) restore or reclaim natural resources or the environment, (d) perform any pre-remedial studies, investigations, or
post-remedial operation and maintenance activities, or (e) conduct any other actions with respect to Hazardous Materials required
by Environmental Laws.

 

“Replacement
Lender” has the meaning specified in Section 2.22.

 

“Reports”
has the meaning specified in Section 9.11(a).

 

“Required Lenders”
means, as of any date of determination, Lenders whose Pro Rata Shares aggregate to at least 50.1%.

 

“Required Prepayment
Date” has the meaning specified in Section 2.14(b).

 

“Requirements
of Law” means, with respect to any Person, collectively, the common law and all federal, state, provincial, local, foreign,
multinational or international laws, statutes, codes, treaties, standards, rules and regulations, guidelines, ordinances, orders,
judgments, writs, injunctions, decrees (including administrative or judicial precedents or authorities) and the interpretation
or administration thereof by, and other determinations, directives, requirements or requests of, any Governmental Authority, in
each case that are applicable to or binding upon such Person or any of its property or to which such Person or any of its property
is subject.

 

    	 	- 43 -	 

     

    

 

“Reserves”
means, (1) without duplication of any other Reserves or items that are otherwise addressed or excluded through eligibility criteria
or the definition of “Borrowing Base” or “Net Orderly Liquidation Value”, such reserves as Administrative
Agent from time to time determines in its Permitted Discretion as being appropriate (a) to reflect the impediments to Agents’
ability to realize upon the Collateral, (b) to reflect claims and liabilities that Administrative Agent determines will need to
be satisfied in connection with the realization upon the Collateral, (c) to reflect criteria, events, conditions, contingencies
or risks which adversely affect any component of the Borrowing Base, or (d) to reflect that a Default or an Event of Default then
exists; provided that, without limiting the generality of the foregoing, such Reserves may include, in Administrative Agent’s
Permitted Discretion, (but are not limited to) reserves based on: (i) rent; (ii) customs duties, and other costs to release Inventory
which is being imported into the United States; (iii) outstanding Taxes and other governmental charges, including, without limitation,
ad valorem, real estate, personal property, sales, claims of the PBGC and other Taxes which may have priority over the interests
of Agents in the Collateral; (iv) the aggregate remaining value at such time of outstanding merchandise credits of the Loan Parties,
(v) deposits made by customers with respect to the purchase of goods or the performance of services and layaway obligations of
the Loan Parties, (vi) reserves for reasonably anticipated changes in the Net Orderly Liquidation Value of Eligible Inventory between
appraisals, (vii) warehousemen’s or bailee’s charges and other Permitted Liens which may have priority over the interests
of Agents in the Collateral, (viii) commissions and other amounts due to Third Party Franchisees, and (ix) reserves as Administrative
Agent from time to time determines in its Permitted Discretion as being appropriate to reflect the reasonably anticipated liabilities
and obligations of the Loan Parties with respect to Cash Management Services then provided or outstanding, and (2) such reserves
as may be established from time to time by Administrative Agent in its Permitted Discretion, without duplication of any other Reserves
or items that are otherwise addressed or excluded through eligibility criteria or the definition of “Borrowing Base”
or “Net Orderly Liquidation Value”, with respect to the determination of the saleability, at retail, of the Eligible
Inventory, which reflect such other factors as affect the market value of the Eligible Inventory or which reflect claims and liabilities
that Administrative Agent determines will need to be satisfied in connection with the realization upon the Inventory; provided
that, without limiting the generality of the foregoing, such Reserves under this clause (2) may, in Administrative Agent’s
Permitted Discretion, include (but are not limited to) reserves based on: (a) obsolescence; (b) seasonality; (c) Inventory which
has been lost, misplaced, stolen, or is otherwise unaccounted for; (d) Imbalance; (e) change in Inventory character; (f) change
in Inventory composition; (g) change in Inventory mix; (h) mark-downs (both permanent and point of sale); and (i) retail mark-ons
and mark-ups inconsistent with prior period practice and performance, industry standards, current business plans or advertising
calendar and planned advertising events.

 

“Restricted
Junior Payment” means (a) any dividend or other distribution, direct or indirect, on account of any shares of any
class of Capital Stock of Borrower or Holdings now or hereafter outstanding, except a dividend payable solely in shares of that
class of Capital Stock to the holders of that class, (b) any redemption, retirement, sinking fund or similar payment, purchase,
or other acquisition for value, direct or indirect, of any shares of any class of Capital Stock of Holdings or any of its Subsidiaries
that is not a Loan Party now or hereafter outstanding, (c) any payment made to retire, or to obtain the surrender of, any
outstanding warrants, options, or other rights to acquire shares of any class of Capital Stock of Holdings or any of its Subsidiaries
that is not a Loan Party now or hereafter outstanding, (d) management or similar fees (and related expenses) payable to any
Permitted Holder or any of its Affiliates or any other Affiliates of any Loan Party, and (e) any payment or prepayment of
principal of, premium, if any, or interest on, or redemption, purchase, retirement, defeasance (including in substance or legal
defeasance), sinking fund, or similar payment with respect to, any subordinated Indebtedness, in each case, whether such dividend,
distribution or other payment is made in cash or other assets.

 

    	 	- 44 -	 

     

    

 

“S&P”
means Standard & Poor’s Ratings Group, a division of The McGraw Hill Corporation.

 

“S/B Parent”
has the meaning ascribed thereto in the preamble to this Agreement.

 

“Sanctioned
Entity” means (a) a country or a government of a country, (b) an agency of the government of a country, (c) an
organization directly or indirectly controlled by a country or its government, or (d) a Person resident in or determined to
be resident in a country, in each case of clauses (a) through (d) that is a target of Sanctions, including a target of
any country sanctions program administered and enforced by OFAC.

 

“Sanctioned
Person” means, at any time, (a) any Person named on the list of Specially Designated Nationals and Blocked Persons
maintained by OFAC or any other Sanctions-related list maintained by any relevant Sanctions authority, (b) a Person or legal
entity that is a target of Sanctions, (c) any Person operating, organized, or resident in a country that is a Sanctioned Entity,
or (d) any Person directly or indirectly owned or controlled (individually or in the aggregate) by or acting on behalf of
any such Person or Persons described in clauses (a) through (c) above.

 

“Sanctions”
means individually and collectively, respectively, any and all economic, trade, financial, or other sanctions laws, regulations,
or embargoes imposed, administered, or enforced from time to time by: (a) the United States of America, including, without
limitation, those administered by OFAC or the U.S. Department of State, (b) the United Nations Security Council, or (c)
any other governmental authority in any jurisdiction in which any Loan Party, any of its Subsidiaries, S/B Parent, Global Parent,
or Liberty Top Parent is located or doing business.

 

“Secured Parties”
means the Agents and Lenders.

 

“Securities”
means any stock, shares, partnership interests, voting trust certificates, certificates of interest or participation in any profit
sharing agreement or arrangement, options, warrants, bonds, debentures, notes, or other evidences of indebtedness, secured or unsecured,
convertible, subordinated, or otherwise, or in general any instruments commonly known as “securities” or any certificates
of interest, shares, or participations in temporary or interim certificates for the purchase or acquisition of, or any right to
subscribe to, purchase, or acquire, any of the foregoing.

 

“Securities
Account” means a securities account (as defined in the UCC).

 

    	 	- 45 -	 

     

    

 

“Securities
Act” means the Securities Act of 1933, as amended from time to time, and any successor statute.

 

“Security Agreement”
means the Security Agreement executed by Grantors in favor of Administrative Agent, for the benefit of the Secured Parties, substantially
in the form of Exhibit G, as it may be amended, supplemented, or otherwise modified from time to time.

 

“Solvent”
means, with respect to the Borrower and its Subsidiaries (on a consolidated basis), that as of the date of determination, both
(a)(i) the sum of the debt (including contingent liabilities) of the Borrower and its Subsidiaries (on a consolidated basis)
does not exceed the present fair saleable value of the present assets of the Borrower and its Subsidiaries (on a consolidated basis),
(ii) the capital of the Borrower and its Subsidiaries (on a consolidated basis) is not unreasonably small in relation to its
business as contemplated on the date of determination, and (iii) the Borrower and its Subsidiaries (on a consolidated basis)
have not incurred and do not intend to incur, or believe (nor should they reasonably believe) that they will incur, debts beyond
their ability to pay such debts as they become due (whether at maturity or otherwise), and (b) the Borrower and its Subsidiaries
(on a consolidated basis) are “solvent” within the meaning given that term and similar terms under applicable laws
relating to fraudulent transfers and conveyances. For purposes of this definition, the amount of any contingent liability at any
time shall be computed as the amount that, in light of all of the facts and circumstances existing at such time, represents the
amount that can reasonably be expected to become an actual or matured liability (irrespective of whether such contingent liabilities
meet the criteria for accrual under Statement of Financial Accounting Standard No. 5).

 

“Specified Acquisition
Agreement Representations” means such of the representations made by, or with respect to, the Business (as defined in
the Closing Date Acquisition Agreement) in the Closing Date Acquisition Agreement, but only to the extent that Liberty (or its
applicable affiliate) has a right (taking into account any applicable cure provisions) not to consummate the transactions contemplated
by the Closing Date Acquisition Agreement or to terminate its (or its applicable affiliate’s) obligations under the Closing
Date Acquisition Agreement, in each case, as a result of a breach of such representations and warranties that are material to the
interests of the Lenders.

 

“Specified Event
of Default” means an Event of Default described under Section 8.01(a), (c) (solely with respect to Section
5.01(a), (b), (c) and (d) and Section 6.08), (f) or (g); provided, that, solely
for purposes of Section 9.05, Section 10.06, and the definition of “Eligible Assignee”, any Event of
Default pursuant to Section 8.01(c) shall constitute a Specified Event of Default only if such Event of Default occurs in
(x) two consecutive Fiscal Quarters or (y) two Fiscal Quarters in any four-Fiscal Quarter period. For the avoidance of doubt, the
immediately preceding proviso shall not apply for purposes of determining whether default interest applies pursuant to Section
2.09.

 

“Specified Representations”
means the representations and warranties set forth in Sections 4.01(a), 4.01(b) (solely with respect to power and
authority to enter into the Loan Documents and to carry out the transactions contemplated thereby), 4.03, 4.04(f),
4.16 (as to clause (a) thereof, solely with respect to the Investment Company Act of 1940), 4.17, 4.21, 4.31,
4.32, 4.33, and 4.35.

 

    	 	- 46 -	 

     

    

 

“Subject Transaction”
has the meaning specified in Section 6.08(e).

 

“Subsidiary”
means, with respect to any Person, any corporation, partnership, limited liability company, association, joint venture, or other
business entity of which more than 50% of the total voting power of shares of stock or other ownership interests entitled
(without regard to the occurrence of any contingency) to vote in the election of the Person or Persons (whether directors, managers,
trustees, or other Persons performing similar functions) having the power to direct or cause the direction of the management and
policies thereof is at the time owned or controlled, directly or indirectly, by that Person or one or more of the other Subsidiaries
of that Person or a combination thereof; provided, that in determining the percentage of ownership interests of any Person
controlled by another Person, no ownership interest in the nature of a “qualifying share” of the former Person shall
be deemed to be outstanding.

 

“Tax”
means any present or future tax, levy, impost, duty, assessment, charge, fee, deduction, or withholding imposed, levied, collected,
withheld, or assessed by any Governmental Authority and all interest, penalties and additions to tax with respect thereto.

 

“Term Loan”
means a Term Loan made by a Lender to Borrower pursuant to Section 2.01(a).

 

“Term Loan Commitment”
means the commitment of a Lender to make or otherwise fund a Term Loan, and “Term Loan Commitments” means such commitments
of all Lenders in the aggregate. The amount of each Lender’s Term Loan Commitment is set forth on Appendix A
or in the applicable Assignment Agreement, subject to any adjustment or reduction pursuant to the terms and conditions hereof.
The aggregate amount of the Term Loan Commitments as of the Closing Date is $105,000,000.

 

“Term Loan Exposure”
means, with respect to any Lender, as of any date of determination, the outstanding principal amount of the Term Loan of such Lender;
provided, that at any time prior to the making of the Term Loan, the Term Loan Exposure of any Lender shall be equal to
such Lender’s Term Loan Commitment.

 

“Terminated
Lender” has the meaning specified in Section 2.22.

 

“Third Party
Franchisee Eligibility Requirements” means, collectively, each of the following:

 

(a) The applicable Loan
Party has executed an agreement with the applicable Third Party Franchisee to operate a “Sears Outlet” (or any subsequent
rebranding of “Sears Outlet”) at a location owned or leased and operated by such Third Party Franchisee, substantially
on the standard form agreements containing terms and conditions established by the Loan Parties from time to time and, with respect
to any agreement executed or renewed or extended after October 11, 2012, to include (A) an acknowledgement from such Third Party
Franchisee that the Loan Parties, or Administrative Agent, acting on behalf of the Loan Parties, are authorized to transfer proceeds
of the Inventory consigned by such Loan Party to such Third Party Franchisee from the bank account maintained by such Third Party
Franchisee to an account in the name of a Loan Party, and (B) an acknowledgement by the Third Party Franchisee that the applicable
Loan Party has granted a Lien to Collateral Agent on the Inventory consigned by such Loan Party to the Third Party Franchisee and
an agreement by the Third Party Franchisee to reasonably cooperate with Agents in the event of the exercise by Agents of their
rights and remedies with respect to such Lien;

 

    	 	- 47 -	 

     

    

 

(b) The applicable Loan
Party has provided Administrative Agent with evidence that such Loan Party has filed appropriate UCC financing statements against
the applicable Third Party Franchisee evidencing the consignment arrangement between such Loan Party and the applicable Third Party
Franchisee with respect to the Inventory consigned by the such Loan Party to the applicable Third Party Franchisee, and has taken
all other action required under applicable Requirements of Law to obtain a valid, first priority perfected security interest in
such Inventory (including, without limitation, providing notification to other secured parties of the applicable Third Party Franchisee
as required by the UCC);

 

(c) If requested by Administrative
Agent, the applicable Loan Party has provided the Agent with an assignment of the UCC financing statements set forth in clause
(b) above;

 

(d) The applicable Loan
Party has complied with all representations, warranties and covenants set forth herein and in the other Loan Documents relating
to federal and state franchise and other regulatory Requirements of Law in connection with the operation of “Sears Outlet”
(or any subsequent rebranding of “Sears Outlet”) by the applicable Third Party Franchisee; and

 

(e) The agreements between
the applicable Loan Party and the applicable Third Party Franchisee provide that all amounts owed by such Third Party Franchisee
to such Loan Party shall be swept at least daily into an account of a Loan Party which is subject to a Control Agreement.

 

For the purposes of paragraph
(a) above, “reasonably cooperate with Agents” means that the Third Party Franchisee will, at the Agents’ expense,
(i) give Agents and their representatives access during normal business hours to all Inventory consigned by the applicable Loan
Party to the Third Party Franchisee, (ii) permit Agents and their representatives to take possession and control of the Inventory
consigned by the applicable Loan Party to the Third Party Franchisee, and to remove the Inventory from the premises of the Third
Party Franchisee, (iii) to the extent not prohibited by applicable location occupancy agreements (such as leases), conduct “going
out of business sales” and engage in similar activities with respect to the Inventory consigned by the applicable Loan Party
to the Third Party Franchisee, and (iv) take all other commercially reasonable actions with respect to the Inventory consigned
by the applicable Loan Party to the Third Party Franchisee that, upon Administrative Agent’s request, may be reasonably necessary
to permit Agents to exercise all of its rights and remedies with respect to the Lien on the Inventory consigned by such Loan Party
to the Third Party Franchisee.

 

“Third Party
Franchisees” means, as of the Closing Date, the individuals and entities listed in Schedule 1.1 as “third party
franchisees”, and thereafter, any additional individual or entity that meets the Third Party Franchisee Eligibility Requirements.

 

“Trade Announcements”
has the meaning specified in Section 10.17.

 

    	 	- 48 -	 

     

    

 

“Total Leverage
Ratio” means the ratio as of the last day of any Fiscal Quarter or other date of determination of (a) Consolidated
Total Debt as of such day, to (b) Consolidated EBITDA for the four-Fiscal Quarter period ending on such date (or if such
date of determination is not the last day of a Fiscal Quarter, for the four-Fiscal Quarter period ending as of the most recently
concluded Fiscal Quarter).

 

“Transactions”
means the transactions contemplated by the Closing Date Acquisition Agreement, the agreements governing the Closing Date Dispositions,
and the Loan Documents, including without limitation, (i) the consummation of the Closing Date Acquisition and the Closing Date
Dispositions, (ii) the execution and delivery of the Loan Documents, the creation of the Liens pursuant to the Collateral Documents
and the initial borrowing of the Term Loan on the Closing Date, and (iii) the payment of Transaction Costs.

 

“Transaction
Costs” means the fees, costs, and expenses payable by Holdings or any of its Subsidiaries in connection with the transactions
contemplated by the Loan Documents, the Closing Date Acquisition Agreement, and the Closing Date Dispositions.

 

“Type of Loan”
means a Base Rate Loan or a LIBOR Rate Loan.

 

“UCC”
means the Uniform Commercial Code (or any similar or equivalent legislation) as in effect in any applicable jurisdiction.

 

“Waivable Mandatory
Prepayment” has the meaning specified in Section 2.14(b).

 

“Wholly Owned
Subsidiary” shall mean, as to any person, (a) any corporation 100% of whose capital stock (other than directors’
qualifying shares or other nominal issuance in order to comply with local laws) is at the time owned by such person and/or one
or more Wholly Owned Subsidiaries of such person, and (b) any partnership, association, joint venture, limited liability company,
or other entity in which such person and/or one or more Wholly Owned Subsidiaries of such person have a 100% equity interest at
such time.

 

“Workers Comp
L/C” means letter of credit number 68087802 issued on October 25, 2012 (as amended or replaced by a new or additional
letter of credit from time to time) by Bank of America, N.A. for the benefit of ACE American Insurance Company.

 

“Write-Down
and Conversion Powers” means, with respect to any EEA Resolution Authority, the write-down and conversion powers of such
EEA Resolution Authority from time to time under the Bail-In Legislation for the applicable EEA Member Country, which write-down
and conversion powers are described in the EU Bail-In Legislation Schedule.

 

Section 1.02       
Accounting and Other Terms.

 

(a)              
All accounting terms not specifically defined herein shall be construed in accordance with GAAP; provided, that if
Borrower notifies Administrative Agent that Borrower requests an amendment to any provision hereof to eliminate the effect of any
Accounting Change occurring after the Closing Date or in the application thereof on the operation of such provision (or if Administrative
Agent notifies Borrower that the Required Lenders request an amendment to any provision hereof for such purpose), regardless of
whether any such notice is given before or after such Accounting Change or in the application thereof, then Administrative Agent
and Borrower agree that they will negotiate in good faith amendments to the provisions of this Agreement that are directly affected
by such Accounting Change with the intent of having the respective positions of Lenders and Borrower after such Accounting Change
conform as nearly as possible to their respective positions immediately before such Accounting Change took effect and, until any
such amendments have been agreed upon and agreed to by the Required Lenders, the provisions in this Agreement shall be calculated
as if no such Accounting Change had occurred. When used herein, the term “financial statements” shall include the notes
and schedules thereto. Whenever the term “Holdings” is used in respect of a financial covenant or a related definition,
it shall be understood to mean Holdings and its Subsidiaries on a consolidated basis, unless the context clearly requires otherwise.
Notwithstanding anything to the contrary contained herein, all financial statements delivered hereunder shall be prepared, and
all financial covenants contained herein shall be calculated, without giving effect to any election under the Statement of Financial
Accounting Standards Board’s Accounting Standards Codification Topic 825 (or any similar accounting principle) permitting
a Person to value its financial liabilities or Indebtedness at the fair value thereof.

 

    	 	- 49 -	 

     

    

 

(b)              
Any terms used in this Agreement that are defined in the UCC shall be construed and defined as set forth in the UCC as in
effect from time to time in the State of New York unless otherwise defined herein; provided, that to the extent that the
UCC is used to define any term herein and such term is defined differently in different Articles of the UCC, the definition of
such term contained in Article 9 of the UCC shall govern.

 

(c)              
All terms used in this Agreement which are defined in Article 8 or Article 9 of the UCC as in effect from time
to time in the State of New York and which are not otherwise defined herein shall have the same meanings herein as set forth therein;
provided, that terms used herein which are defined in the UCC as in effect in the State of New York on the date hereof shall
continue to have the same meaning notwithstanding any replacement or amendment of such statute except as Administrative Agent may
otherwise determine.

 

Section 1.03       
Construction. Unless the context of this Agreement or any other Loan Document clearly requires otherwise, references
to the plural include the singular, references to the singular include the plural, the terms “includes” and “including”
are not limiting, and the term “or” has, except where otherwise indicated, the inclusive meaning represented by the
phrase “and/or.” The words “hereof,” “herein,” “hereby,” “hereunder,”
and similar terms in this Agreement or any other Loan Document refer to this Agreement or such other Loan Document, as the case
may be, as a whole and not to any particular provision of this Agreement or such other Loan Document, as the case may be. Section,
subsection, clause, schedule, and exhibit references herein are to this Agreement unless otherwise specified. Any reference in
this Agreement or in any other Loan Document to any agreement, instrument, or document shall include all alterations, amendments,
changes, extensions, modifications, renewals, replacements, substitutions, joinders, and supplements, thereto and thereof, as applicable
(subject to any restrictions on such alterations, amendments, changes, extensions, modifications, renewals, replacements, substitutions,
joinders, and supplements set forth herein). The words “asset” and “property” shall be construed to have
the same meaning and effect and to refer to any and all tangible and intangible assets and properties. Any reference herein or
in any other Loan Document to the satisfaction, repayment, or payment in full of the Obligations or Guaranteed Obligations shall
mean (a) the payment or repayment in full in immediately available funds of (i) the principal amount of, and interest
accrued and unpaid with respect to, all outstanding Loans, together with the payment of the Exit Fee, (ii) all costs, expenses,
or indemnities payable pursuant to Section 10.02 or 10.03 of this Agreement that have accrued and are unpaid regardless
of whether demand has been made therefor, and (iii) all fees or charges that have accrued hereunder or under any other Loan
Document and are unpaid, (b) the receipt by Collateral Agent of cash collateral in order to secure any other contingent Obligations
for which a claim or demand for payment has been made on or prior to such time or in respect of matters or circumstances known
to an Agent or a Lender at such time that are reasonably expected to result in any loss, cost, damage, or expense (including attorneys’
fees and legal expenses), such cash collateral to be in such amount as Agents reasonably determine is appropriate to secure such
contingent Obligations, (c) the payment or repayment in full in immediately available funds of all other outstanding Obligations
(other than contingent reimbursement and indemnification obligations for which a claim has not been asserted), and (d) the
termination of all of the Commitments of Lenders. Notwithstanding anything in the Agreement to the contrary, (y) the Dodd-Frank
Wall Street Reform and Consumer Protection Act and all requests, rules, guidelines, or directives thereunder or issued in connection
therewith and (z) all requests, rules, guidelines, or directives concerning capital adequacy promulgated by the Bank for International
Settlements, the Basel Committee on Banking Supervision (or any successor or similar authority), or the United States or foreign
regulatory authorities shall, in each case, be deemed to be enacted, adopted, issued, phased in, or effective after the date of
this Agreement regardless of the date enacted, adopted, issued, phased in, or effective.

 

    	 	- 50 -	 

     

    

 

Section 1.04       
Time References. Unless the context of this Agreement or any other Loan Document clearly requires otherwise, all
references to time of day refer to Eastern standard time or Eastern daylight saving time, as in effect in New York, New York on
such day. For purposes of the computation of a period of time from a specified date to a later specified date, unless otherwise
expressly provided, the word “from” means “from and including” and the words “to” and “until”
each means “to and including;” provided, that with respect to computation of fees or interest payable to Agent
or any Lender, such period shall in any event consist of at least one full day.

 

Section 1.05       
Effect of Benchmark Transition Event.

 

(a)              
Benchmark Replacement. Notwithstanding anything to the contrary herein or in any other Loan Document, upon the occurrence
of a Benchmark Transition Event or an Early Opt-in Election, as applicable, Administrative Agent and Borrower may amend this Agreement
to replace the Adjusted LIBOR Rate with a Benchmark Replacement. Any such amendment with respect to a Benchmark Transition Event
will become effective at 5:00 p.m. on the fifth (5th) Business Day after Administrative Agent has posted such proposed amendment
to all Lenders and Borrower so long as Administrative Agent has not received, by such time, written notice of objection to such
amendment from Lenders comprising the Required Lenders. Any such amendment with respect to an Early Opt-in Election will become
effective on the date that Lenders comprising the Required Lenders have delivered to Administrative Agent written notice that such
Required Lenders accept such amendment. No replacement of the Adjusted LIBOR Rate with a Benchmark Replacement pursuant to this
Section titled “Effect of Benchmark Transition Event” will occur prior to the applicable Benchmark Transition Start
Date.

 

    	 	- 51 -	 

     

    

 

(b)              
Benchmark Replacement Conforming Changes. In connection with the implementation of a Benchmark Replacement, Administrative
Agent will have the right to make Benchmark Replacement Conforming Changes from time to time and, notwithstanding anything to the
contrary herein or in any other Loan Document, any amendments implementing such Benchmark Replacement Conforming Changes will become
effective without any further action or consent of any other party to this Agreement.

 

(c)              
Notices; Standards for Decisions and Determinations. Administrative Agent will promptly notify Borrower and the Lenders
of (i) any occurrence of a Benchmark Transition Event or an Early Opt-in Election, as applicable, and its related Benchmark Replacement
Date and Benchmark Transition Start Date, (ii) the implementation of any Benchmark Replacement, (iii) the effectiveness of any
Benchmark Replacement Conforming Changes and (iv) the commencement or conclusion of any Benchmark Unavailability Period. Any determination,
decision or election that may be made by Administrative Agent or Lenders pursuant to this Section titled “Effect of Benchmark
Transition Event,” including any determination with respect to a tenor, rate or adjustment or of the occurrence or non-occurrence
of an event, circumstance or date and any decision to take or refrain from taking any action, will be conclusive and binding absent
manifest error and may be made in its or their sole discretion and without consent from any other party hereto, except, in each
case, as expressly required pursuant to this Section titled “Effect of Benchmark Transition Event.”

 

(d)              
Benchmark Unavailability Period. Upon Borrower’s receipt of notice of the commencement of a Benchmark Unavailability
Period, Borrower may revoke any request for a borrowing of LIBOR Rate Loans, conversion to or continuation of LIBOR Rate Loans
to be made, converted or continued during any Benchmark Unavailability Period and, failing that, Borrower will be deemed to have
converted any such request into a request for a borrowing of or conversion to Base Rate Loans. During any Benchmark Unavailability
Period, the component of the Alternate Base Rate based upon the Adjusted LIBOR Rate will not be used in any determination of the
Alternate Base Rate.

 

(e)              
Certain Defined Terms. As used in this Section titled “Effect of Benchmark Transition Event”:

 

(i)                       
“Benchmark Replacement” means the sum of: (A) the alternate benchmark rate (which may include Term SOFR)
that has been selected by Administrative Agent and Borrower giving due consideration to (x) any selection or recommendation of
a replacement rate or the mechanism for determining such a rate by the Relevant Governmental Body or (y) any evolving or then-prevailing
market convention for determining a rate of interest as a replacement to the Adjusted LIBOR Rate for U.S. dollar-denominated syndicated
credit facilities and (B) the Benchmark Replacement Adjustment; provided that, if the Benchmark Replacement as so determined
would be less than zero, the Benchmark Replacement will be deemed to be zero for the purposes of this Agreement.

 

    	 	- 52 -	 

     

    

 

(ii)                       
“Benchmark Replacement Adjustment” means, with respect to any replacement of the Adjusted LIBOR Rate
with an Unadjusted Benchmark Replacement for each applicable Interest Period, the spread adjustment, or method for calculating
or determining such spread adjustment, (which may be a positive or negative value or zero) that has been selected by Administrative
Agent and Borrower giving due consideration to (A) any selection or recommendation of a spread adjustment, or method for calculating
or determining such spread adjustment, for the replacement of the Adjusted LIBOR Rate with the applicable Unadjusted Benchmark
Replacement by the Relevant Governmental Body or (B) any evolving or then-prevailing market convention for determining a spread
adjustment, or method for calculating or determining such spread adjustment, for the replacement of the Adjusted LIBOR Rate with
the applicable Unadjusted Benchmark Replacement for U.S. dollar-denominated syndicated credit facilities at such time.

 

(iii)                       
“Benchmark Replacement Conforming Changes” means, with respect to any Benchmark Replacement, any technical,
administrative or operational changes (including changes to the definition of “Alternate Base Rate,” the definition
of “Interest Period,” timing and frequency of determining rates and making payments of interest and other administrative
matters) that Administrative Agent decides may be appropriate to reflect the adoption and implementation of such Benchmark Replacement
and to permit the administration thereof by Administrative Agent in a manner substantially consistent with market practice (or,
if Administrative Agent decides that adoption of any portion of such market practice is not administratively feasible or if Administrative
Agent determines that no market practice for the administration of the Benchmark Replacement exists, in such other manner of administration
as Administrative Agent decides is reasonably necessary in connection with the administration of this Agreement).

 

(iv)                       
“Benchmark Replacement Date” means the earlier to occur of the following events with respect to the Adjusted
LIBOR Rate:

 

(A)            
in the case of clause (A) or (B) of the definition of “Benchmark Transition Event,” the later of (a) the date
of the public statement or publication of information referenced therein and (b) the date on which the administrator of the LIBOR
Rate permanently or indefinitely ceases to provide the LIBOR Rate; or

 

(B)             
in the case of clause (C) of the definition of “Benchmark Transition Event,” the date of the public statement
or publication of information referenced therein.

 

(v)                       
“Benchmark Transition Event” means the occurrence of one or more of the following events with respect
to the LIBOR Rate:

 

(A)            
a public statement or publication of information by or on behalf of the administrator of the LIBOR Rate announcing that
such administrator has ceased or will cease to provide the LIBOR Rate, permanently or indefinitely, provided that, at the
time of such statement or publication, there is no successor administrator that will continue to provide the LIBOR Rate;

 

    	 	- 53 -	 

     

    

 

(B)             
a public statement or publication of information by the regulatory supervisor for the administrator of the LIBOR Rate, the
U.S. Federal Reserve System, an insolvency official with jurisdiction over the administrator for the LIBOR Rate, a resolution authority
with jurisdiction over the administrator for the LIBOR Rate or a court or an entity with similar insolvency or resolution authority
over the administrator for the LIBOR Rate, which states that the administrator of the LIBOR Rate has ceased or will cease to provide
the LIBOR Rate permanently or indefinitely, provided that, at the time of such statement or publication, there is no successor
administrator that will continue to provide the LIBOR Rate; or

 

(C)             
a public statement or publication of information by the regulatory supervisor for the administrator of the LIBOR Rate announcing
that the LIBOR Rate is no longer representative.

 

(vi)                       
“Benchmark Transition Start Date” means (A) in the case of a Benchmark Transition Event, the earlier
of (x) the applicable Benchmark Replacement Date and (y) if such Benchmark Transition Event is a public statement or publication
of information of a prospective event, the 90th day prior to the expected date of such event as of such public statement or publication
of information (or if the expected date of such prospective event is fewer than 90 days after such statement or publication, the
date of such statement or publication) and (B) in the case of an Early Opt-in Election, the date specified by Administrative Agent
or the Required Lenders, as applicable, by notice to Borrower, Administrative Agent (in the case of such notice by the Required
Lenders) and the Lenders.

 

(vii)                       
“Benchmark Unavailability Period” means, if a Benchmark Transition Event and its related Benchmark Replacement
Date have occurred with respect to the Adjusted LIBOR Rate (or the LIBOR Rate component thereof) and solely to the extent that
the Adjusted LIBOR Rate has not been replaced with a Benchmark Replacement, the period (A) beginning at the time that such Benchmark
Replacement Date has occurred if, at such time, no Benchmark Replacement has replaced the Adjusted LIBOR Rate for all purposes
hereunder in accordance with the Section titled “Effect of Benchmark Transition Event” and (B) ending at the time that
a Benchmark Replacement has replaced the Adjusted LIBOR Rate for all purposes hereunder pursuant to the Section titled “Effect
of Benchmark Transition Event.”

 

(viii)                       
“Early Opt-in Election” means the occurrence of:

 

(A)            
(x) a determination by Administrative Agent or (y) a notification by the Required Lenders to Administrative Agent (with
a copy to Borrower) that the Required Lenders have determined that U.S. dollar-denominated syndicated credit facilities being executed
at such time, or that include language similar to that contained in this Section titled “Effect of Benchmark Transition Event,”
are being executed or amended, as applicable, to incorporate or adopt a new benchmark interest rate to replace the Adjusted LIBOR
Rate, and

 

(B)             
(x) the election by Administrative Agent or (y) the election by the Required Lenders to declare that an Early Opt-in Election
has occurred and the provision, as applicable, by Administrative Agent of written notice of such election to Borrower and the Lenders
or by the Required Lenders of written notice of such election to Administrative Agent.

 

    	 	- 54 -	 

     

    

 

(ix)                       
“Federal Reserve Bank of New York’s Website” means the website of the Federal Reserve Bank of New
York at http://www.newyorkfed.org, or any successor source.

 

(x)                       
“Relevant Governmental Body” means the Federal Reserve Board and/or the Federal Reserve Bank of New York,
or a committee officially endorsed or convened by the Federal Reserve Board and/or the Federal Reserve Bank of New York or any
successor thereto.

 

(xi)                       
“SOFR” with respect to any day means the secured overnight financing rate published for such day by the
Federal Reserve Bank of New York, as the administrator of the benchmark, (or a successor administrator) on the Federal Reserve
Bank of New York’s Website.

 

(xii)                       
“Term SOFR” means the forward-looking term rate based on SOFR that has been selected or recommended by
the Relevant Governmental Body.

 

(xiii)                       
“Unadjusted Benchmark Replacement” means the Benchmark Replacement excluding the Benchmark Replacement
Adjustment.

 

Section 1.06       
Fiscal Periods. Unless the context of this Agreement or any other Loan Document clearly requires otherwise, all references
to a fiscal month, Fiscal Quarter or Fiscal Year ending on a certain date shall be deemed to refer to the fiscal month, Fiscal
Quarter or Fiscal Year, respectively, ending on or closest to such date; provided that this Section 1.06 shall not apply to any
references to fiscal months, fiscal quarters or fiscal years that are expressly stated to relate to any Person other than a Loan
Party, a Subsidiary of a Loan Party, Global Parent, S/B Parent or Liberty Top Parent.

 

ARTICLE
II

LOANS

 

Section 2.01       
Term Loans.

 

(a)              
Loan Commitments. Subject to the terms and conditions hereof, each Lender severally agrees to make, on the Closing
Date, a Term Loan to Borrower in an amount equal to such Lender’s Term Loan Commitment.

 

Borrower may only request one borrowing
under the Term Loan Commitment which shall be on the Closing Date. Any amount borrowed under this Section 2.01(a) and subsequently
repaid or prepaid may not be reborrowed. Subject to Section 2.11 and Section 2.12, all amounts owed hereunder with
respect to the Term Loan shall be paid in full no later than the Maturity Date. Each Lender’s Term Loan Commitment shall
terminate immediately and without further action on the Closing Date after giving effect to the funding of such Lender’s
Term Loan Commitment on such date.

 

(b)              
Borrowing Mechanics for Term Loans.

 

    	 	- 55 -	 

     

    

 

(i)                       
Borrower shall deliver to Administrative Agent a fully executed Funding Notice no later than (A) if such Funding Notice
requests a LIBOR Rate Loan, three (3) Business Days prior to the Closing Date or (B) if such Funding Notice requests a Base Rate
Loan, two (2) Business Days prior to the Closing Date, or, in each case, such later date as Administrative Agent may agree. Except
as otherwise provided herein, a Funding Notice for a Term Loan that is a LIBOR Rate Loan shall be irrevocable on and after the
related Interest Rate Determination Date, and Borrower shall be bound to make a borrowing in accordance therewith. Promptly upon
receipt by Administrative Agent of such Funding Notice, Administrative Agent shall notify each Lender of the proposed borrowing.
Administrative Agent and Lenders (A) may act without liability upon the basis of written, facsimile, or telephonic notice
believed by Administrative Agent in good faith to be from Borrower (or from any Authorized Officer thereof designated in writing
purportedly from Borrower to Administrative Agent), (B) shall be entitled to rely conclusively on any Authorized Officer’s
authority to request a Term Loan on behalf of Borrower until Administrative Agent receives written notice to the contrary, and
(C) shall have no duty to verify the authenticity of the signature appearing on any written Funding Notice.

 

(ii)                       
Each Lender shall make its Term Loan available to Administrative Agent not later than noon (New York time) on the Closing
Date, by wire transfer of same day funds in Dollars, at Administrative Agent’s Principal Office (as identified on Appendix
B). Upon satisfaction or waiver of the conditions precedent specified herein, Administrative Agent shall make the proceeds of the
Term Loans available to Borrower by the close of business on the Closing Date by causing an amount of same day funds in Dollars
equal to the proceeds of all such Loans received by Administrative Agent from Lenders to be credited (A) in the case of Loans
made on the Closing Date, in accordance with the provisions of the Flow of Funds Agreement or (B) after the Closing Date,
to the account of Borrower at Administrative Agent’s Principal Office or to such other account as may be designated in writing
to Administrative Agent by Borrower.

 

Section 2.02       
[Reserved].

 

Section 2.03       
Protective Advances. Subject to the limitations set forth below, and whether or not an Event of Default or a Default
shall have occurred and be continuing, each Agent is authorized by Borrower and Lenders, from time to time in such Agent’s
sole discretion (but such Agent shall have absolutely no obligation to), to make disbursements or advances to Borrower, which such
Agent, in its sole discretion, deems necessary or desirable (a) to preserve or protect the Collateral, or any portion thereof,
(b) to enhance the likelihood of, or maximize the amount of, repayment of the Loans and other Obligations, or (c) to
pay any other amount chargeable to, or required to be paid by, Borrower pursuant to the terms of this Agreement and the other Loan
Documents, including, without limitation, payments of principal, interest, fees, and reimbursable expenses (any of such Loans are
in this clause (c) referred to as “Protective Advances”). Protective Advances may be made even if the conditions
precedent set forth in Article III have not been satisfied. The interest rate on all Protective Advances shall be at the
Alternate Base Rate plus the Applicable Margin for the Term Loans. Protective Advances shall not exceed 15% of the Term
Loan Exposure in the aggregate at any time without the prior written consent of Required Lenders. Each Protective Advance shall
be secured by the Liens in favor of Collateral Agent in and to the Collateral and shall constitute Obligations hereunder. The Protective
Advances shall constitute Obligations hereunder which may be charged to the Loan Account in accordance with Section 2.15(f).
Borrower shall pay the unpaid principal amount and all unpaid and accrued interest of each Protective Advance on the earlier of
the Maturity Date and the date that is three (3) Business Days following the date on which demand for payment is made by the applicable
Agent. The applicable Agent shall notify each Lender and Borrower in writing of each such Protective Advance, which notice shall
include a description of the purpose of such Protective Advance. Without limitation to its obligations pursuant to Section 9.06,
each Lender agrees that it shall make available to the applicable Agent, upon such Agent’s demand, in Dollars in immediately
available funds, the amount equal to such Lender’s Pro Rata Share of each such Protective Advance. If such funds are not
made available to the applicable Agent by such Lender, such Agent shall be entitled to recover such funds on demand from such Lender,
together with interest thereon for each day from the date such payment was due until the date such amount is paid to the applicable
Agent, at the Federal Funds Effective Rate for three (3) Business Days and thereafter at the Alternate Base Rate.

 

    	 	- 56 -	 

     

    

 

Section 2.04       
Pro Rata Shares; Availability of Funds.

 

(a)              
Pro Rata Shares. All Loans shall be made by Lenders simultaneously and proportionately to their respective Pro Rata
Shares, it being understood that no Lender shall be responsible for any default by any other Lender in such other Lender’s
obligation to make a Loan requested hereunder, nor shall any Term Loan Commitment of any Lender be increased or decreased as a
result of a default by any other Lender in such other Lender’s obligation to make a Loan requested hereunder.

 

(b)              
Availability of Funds. Unless Administrative Agent shall have been notified by any Lender prior to the Closing Date
that such Lender does not intend to make available to Administrative Agent the amount of such Lender’s Loan requested on
the Closing Date, Administrative Agent may assume that such Lender has made such amount available to Administrative Agent on the
Closing Date, and Administrative Agent may, with the consent of the Required Lenders, but shall not be obligated to, make available
to Borrower a corresponding amount on the Closing Date. If such corresponding amount is not in fact made available to Administrative
Agent by such Lender, Administrative Agent shall be entitled to recover such corresponding amount on demand from such Lender together
with interest thereon, for each day from the Closing Date until the date such amount is paid to Administrative Agent, at the customary
rate set by Administrative Agent for the correction of errors among banks for three (3) Business Days and thereafter at the Alternate
Base Rate. If such Lender does not pay such corresponding amount forthwith upon Administrative Agent’s demand therefor, Administrative
Agent shall promptly notify Borrower, and Borrower shall immediately pay such corresponding amount to Administrative Agent together
with interest thereon, for each day from the Closing Date until the date such amount is paid to Administrative Agent, at the rate
payable hereunder for Base Rate Loans for such Loans. Nothing in this Section 2.04(b) shall be deemed to relieve any Lender
from its obligation to fulfill its Term Loan Commitments hereunder or to prejudice any rights that Borrower may have against any
Lender as a result of any default by such Lender hereunder.

 

Section 2.05       
Use of Proceeds. The proceeds of the Term Loans made on the Closing Date shall be applied by Borrower (i) to consummate
the Transactions (including, without limitation, to pay the Transaction Costs), (ii) to repay the Existing Indebtedness, (iii)
to cash collateralize the Workers Comp L/C and to pay costs, fees and expenses in connection with the issuance of the Workers Comp
L/C and the cash collateralization thereof, and/or (iv) for general corporate purposes. No portion of the proceeds of any Credit
Extension shall be used in any manner that causes or could reasonably be expected to cause such Credit Extension or the application
of such proceeds to violate Regulation T, Regulation U, or Regulation X of the Board of Governors of the Federal
Reserve System or any other regulation thereof or to violate the Exchange Act.

 

    	 	- 57 -	 

     

    

 

Section 2.06       
Evidence of Debt; Register; Lenders’ Books and Records; Notes.

 

(a)              
Lenders’ Evidence of Debt. Each Lender shall maintain on its internal records an account or accounts evidencing
the Obligations of Borrower to such Lender, including the amounts of the Loans made by it and each repayment and prepayment in
respect thereof. Any such recordation shall be conclusive and binding on Borrower, absent manifest error; provided, that
the failure to make any such recordation, or any error in such recordation, shall not affect Borrower’s Obligations in respect
of any applicable Loans; provided further, that in the event of any inconsistency between the Register and any Lender’s
records, the recordations in the Register shall govern.

 

(b)              
Register. Administrative Agent shall maintain at its Principal Office a register for the recordation of the names
and addresses of Lenders and the principal amount of the Loans (and stated interest therein) of each Lender from time to time (the
“Register”). The Register shall be available for inspection by Borrower at any reasonable time and from time
to time upon reasonable prior notice. Administrative Agent shall record in the Register the Loans, and each repayment or prepayment
in respect of the principal amount of the Loans, and any such recordation shall be conclusive and binding on Borrower and each
Lender, absent manifest error; provided, that failure to make any such recordation, or any error in such recordation, shall
not affect Borrower’s Obligations in respect of any Loan. Borrower hereby designates the entity serving as Administrative
Agent to serve as Borrower’s non-fiduciary agent solely for purposes of maintaining the Register as provided in this Section
2.06, and Borrower hereby agrees that, to the extent such entity serves in such capacity, the entity serving as Administrative
Agent and its officers, directors, employees, agents, and affiliates shall constitute “Indemnitees.”

 

(c)              
Notes. If so requested by any Lender by written notice to Borrower (with a copy to Administrative Agent) at least
two (2) Business Days prior to the Closing Date, or at any time thereafter, Borrower shall execute and deliver to such Lender (and/or,
if applicable and if so specified in such notice, to any Person who is an assignee of such Lender pursuant to Section 10.06)
on the Closing Date (or, if such notice is delivered after the Closing Date, promptly after Borrower’s receipt of such notice)
a Note or Notes.

 

Section 2.07       
Interest.

 

(a)              
Except as otherwise set forth herein, each Loan shall bear interest on the unpaid principal amount thereof from the date
made through repayment (whether by acceleration or otherwise) thereof as follows:

 

    	 	- 58 -	 

     

    

 

(i)                       
if a Base Rate Loan, at the Alternate Base Rate plus the Applicable Margin.

 

(ii)                       
if a LIBOR Rate Loan, at the Adjusted LIBOR Rate plus the Applicable Margin.

 

(b)              
The basis for determining the rate of interest with respect to any Loan, and the Interest Period with respect to any LIBOR
Rate Loan, shall be selected by Borrower and notified to Administrative Agent and Lenders pursuant to the applicable Funding Notice
or Conversion/Continuation Notice, as the case may be. If on any day a Loan is outstanding with respect to which a Funding Notice
or Conversion/Continuation Notice has not been delivered to Administrative Agent in accordance with the terms hereof specifying
the applicable basis for determining the rate of interest, then for that day such Loan shall be a Base Rate Loan.

 

(c)              
In connection with LIBOR Rate Loans there shall be no more than five Interest Periods outstanding at any time. In the
event Borrower fails to specify between a Base Rate Loan or a LIBOR Rate Loan in the applicable Funding Notice or Conversion/Continuation
Notice, such Loan (if outstanding as a LIBOR Rate Loan) will be automatically converted into a Base Rate Loan on the last day of
the then current Interest Period for such Loan (or if outstanding as a Base Rate Loan will remain as, or (if not then outstanding)
will be made as, a Base Rate Loan). In the event Borrower fails to specify an Interest Period for any LIBOR Rate Loan in the applicable
Funding Notice or Conversion/Continuation Notice, Borrower shall be deemed to have selected an Interest Period of one month. As
soon as practicable after 10:00 a.m. (New York City time) on each Interest Rate Determination Date, Administrative Agent shall
determine (which determination shall, absent manifest error, be final, conclusive, and binding upon all parties) the interest rate
that shall apply to the LIBOR Rate Loans for which an interest rate is then being determined for the applicable Interest Period
and shall promptly give notice thereof to Borrower and each Lender.

 

(d)              
Interest payable pursuant to Section 2.07(a) shall be computed on the basis of a 360-day year and actual days elapsed,
other than for Base Rate Loans which shall be calculated on the basis of a 365-day or 366-day year, as applicable, and actual days
elapsed. In computing interest on any Loan, the date of the making of such Loan or the first day of an Interest Period applicable
to such Loan or, with respect to a Base Rate Loan being converted from a LIBOR Rate Loan, the date of conversion of such LIBOR
Rate Loan to such Base Rate Loan, as the case may be, shall be included, and the date of payment of such Loan or the expiration
date of an Interest Period applicable to such Loan or, with respect to a Base Rate Loan being converted to a LIBOR Rate Loan, the
date of conversion of such Base Rate Loan to such LIBOR Rate Loan, as the case may be, shall be excluded; provided, that
if a Loan is repaid on the same day on which it is made, one day’s interest shall be paid on that Loan.

 

(e)              
Except as otherwise set forth herein, interest on each Loan shall be payable in cash and in arrears on and to (i) each
Interest Payment Date applicable to that Loan, (ii) upon any prepayment of that Loan, whether voluntary or mandatory, to the
extent accrued on the amount being prepaid, and (iii) at maturity, including final maturity.

 

    	 	- 59 -	 

     

    

 

(f)               
At any time that an Event of Default has occurred and is continuing, at the written election of Administrative Agent or
the Required Lenders, Borrower no longer shall have the option to request that any portion of the Term Loan bear interest at a
rate based upon the Adjusted LIBOR Rate.

 

Section 2.08       
Conversion/Continuation.

 

(a)              
Subject to Section 2.17 and so long as no Default or Event of Default shall have occurred and then be continuing,
Borrower shall have the option:

 

(i)                       
to convert at any time all or any part of any Term Loan equal to $5,000,000 and integral multiples of $1,000,000 in excess
of that amount from one Type of Loan to another Type of Loan; provided, that a LIBOR Rate Loan may only be converted on
the expiration of the Interest Period applicable to such LIBOR Rate Loan unless Borrower shall pay all amounts due under Section
2.17 in connection with any such conversion, or

 

(ii)                       
upon the expiration of any Interest Period applicable to any LIBOR Rate Loan, to continue all or any portion of such Loan
equal to $5,000,000 and integral multiples of $1,000,000 in excess of that amount as a LIBOR Rate Loan.

 

(b)              
Borrower shall deliver a Conversion/Continuation Notice to Administrative Agent no later than noon (New York time) at least
two Business Days in advance of the proposed conversion date (in the case of a conversion to a Base Rate Loan) and at least three
(3) Business Days in advance of the proposed conversion/continuation date (in the case of a conversion to, or a continuation of,
a LIBOR Rate Loan). Except as otherwise provided herein, a Conversion/Continuation Notice for conversion to, or continuation of,
any LIBOR Rate Loans (or telephonic notice in lieu thereof) shall be irrevocable on and after the related Interest Rate Determination
Date, and Borrower shall be bound to effect a conversion or continuation in accordance therewith.

 

Section 2.09       
Default Interest. Upon the occurrence and during the continuance of an Event of Default, the principal amount of
all Loans outstanding and, to the extent permitted by applicable law, any interest payments on the Loans or any fees or other amounts
owed hereunder, shall thereafter bear interest (including any interest that accrues after the commencement of an Insolvency Proceeding,
regardless of whether allowed or allowable in whole or in part as a claim in any such Insolvency Proceeding), payable on demand
at a rate that is 2.00% per annum in excess of the interest rate otherwise payable hereunder with respect to the applicable Loans
(or, in the case of any such fees and other amounts, at a rate which is 2.00% per annum in excess of the interest rate otherwise
payable hereunder for Base Rate Loans); provided, that in the case of LIBOR Rate Loans, upon the expiration of the Interest
Period in effect at the time any such increase in interest rate is effective, such LIBOR Rate Loans shall thereupon become Base
Rate Loans and shall thereafter bear interest payable upon demand at a rate which is 2.00% per annum in excess of the interest
rate otherwise payable hereunder for Base Rate Loans. Payment or acceptance of the increased rates of interest provided for in
this Section 2.09 is not a permitted alternative to timely payment and shall not constitute a waiver of any Event of Default
or otherwise prejudice or limit any rights or remedies of any Agent or any Lender.

 

    	 	- 60 -	 

     

    

 

Section 2.10       
Fees.

 

(a)              
Fee Letter. Without duplication of any other fees set forth in this Section 2.10, Borrower agrees to pay to
Administrative Agent all fees payable by it in the Fee Letter in the amounts and at the times specified therein. The Fee Letter
shall survive the termination or expiration of any commitment letter issued in connection therewith.

 

(b)              
Exit Fees. (i) If all or any part of the principal balance of any Loan is paid in whole or in part for any reason
at any time during the term of the Term Loans or at maturity (including, but not limited to, whether voluntary or mandatory, and
whether before or after acceleration of the Obligations or the commencement of any Insolvency Proceeding, but in any event including
any such prepayment in connection with (I) a Change of Control, (II) an acceleration of the Obligations as a result of the occurrence
of an Event of Default, (III) foreclosure and sale of, or collection of, the Collateral, (IV) sale of the Collateral in any Insolvency
Proceeding, (V) the restructure, reorganization, or compromise of the Obligations by the confirmation of a plan of reorganization
or any other plan of compromise, restructure, or arrangement in any Insolvency Proceeding, or (VI) the termination of this Agreement
for any reason), Borrower shall pay to Administrative Agent, for the benefit of all Lenders entitled to a portion of such prepayment
or repayment, as liquidated damages and compensation for the costs of being prepared to make funds available hereunder with respect
to the Loans, an exit fee (the “Exit Fee”) equal to the amount of such prepayment or repayment multiplied by
one percent (1.00%). Notwithstanding anything to the contrary contained in this Agreement, to the extent that any Non-Consenting
Lender is replaced pursuant to Section 2.22 due to such Lender’s failure to approve a consent, waiver, or amendment,
such Non-Consenting Lender shall be entitled to receive the Exit Fee in connection with such replacement in the amount that would
have been payable in respect of the Term Loans of such Non-Consenting Lender under this clause (b)(i) had such Term Loans been
the subject of a voluntary prepayment at such time; provided, that after any such payment of the Exit Fee to such Non-Consenting
Lender pursuant to this sentence, the Exit Fee with respect to that portion of the Term Loans shall be deemed fully satisfied,
and notwithstanding anything to the contrary in this clause (b), the Borrower shall not be required to pay any additional Exit
Fee on or after such date with respect to that portion of the Term Loans.

 

(ii)Without limiting
the generality of the foregoing, it is understood and agreed that if the Obligations are accelerated prior to the Maturity Date
for any reason, including because of default, the commencement of any Insolvency Proceeding or other proceeding pursuant to any
applicable debtor relief laws, sale, disposition, or encumbrance (including that by operation of law or otherwise), the Exit Fee,
determined as of the date of acceleration, will also be due and payable as though said Obligations were voluntarily prepaid as
of such date and shall constitute part of the Obligations, in view of the impracticability and extreme difficulty of ascertaining
actual damages and by mutual agreement of the parties as to a reasonable calculation of each Lender’s lost profits as a result
thereof. The Exit Fee payable in accordance with the immediately preceding sentence shall be presumed to be the liquidated damages
sustained by each Lender as the result of the early termination, and Borrower agrees that it is reasonable under the circumstances.
The Exit Fee shall also be payable in the event the Obligations (and/or this Agreement or the Notes evidencing the Obligations)
are satisfied or released by foreclosure (whether by power of judicial proceeding), deed in lieu of foreclosure, or by any other
means. BORROWER EXPRESSLY WAIVES THE PROVISIONS OF ANY PRESENT OR FUTURE STATUTE OR LAW THAT PROHIBITS OR MAY PROHIBIT THE COLLECTION
OF THE FOREGOING Exit Fee IN CONNECTION WITH ANY SUCH ACCELERATION. The Borrower
expressly agrees that: (A) the Exit Fee is reasonable and is the product of an arm’s length transaction between sophisticated
business people, ably represented by counsel, (B) the Exit Fee shall be payable notwithstanding the then prevailing market rates
at the time payment is made, (C) there has been a course of conduct between Lenders and Borrower giving specific consideration
in this transaction for such agreement to pay the Exit Fee, and (D) Borrower shall be estopped hereafter from claiming differently
than as agreed to in this paragraph. The Borrower expressly acknowledges that its agreement to pay the Exit Fee as herein described
is a material inducement to the Lenders to provide the Commitments and make the Loans.

 

    	 	- 61 -	 

     

    

 

Section 2.11       
Repayments of Loans and Commitment Reductions. The principal amounts of the Term Loans shall be repaid in equal quarterly
installments (each, an “Installment”) on the first day of each Fiscal Quarter (each, an “Installment
Date”), each in an amount equal to $2,500,000, commencing on April 1, 2020, with any outstanding principal amounts due
and payable on the earlier of (a) the Maturity Date and (b) the date on which the Term Loans otherwise become due and
payable pursuant to the terms of this Agreement. Notwithstanding the foregoing, (a) such Installments shall be reduced in
connection with any voluntary or mandatory prepayments of the Term Loan in accordance with Sections 2.12 and 2.13,
as applicable, and (b) the Term Loan, together with all other amounts owed hereunder with respect thereto, shall, in any event,
be paid in full no later than the Maturity Date.

 

Section 2.12       
Voluntary Prepayments.

 

(a)              
Voluntary Prepayments.

 

(i)                       
Any time and from time to time:

 

(A)            
with respect to Base Rate Loans, Borrower may prepay any such Loans on any Business Day in whole or in part, in an aggregate
minimum amount of $1,000,000 and integral multiples of $100,000 in excess of that amount (or such lesser amount outstanding), and

 

(B)             
with respect to LIBOR Rate Loans, Borrower may prepay any such Loans on any Business Day in whole or in part (together with
any amounts due pursuant to Section 2.17(c)) in an aggregate minimum amount of $1,000,000 and integral multiples of $100,000
in excess of that amount (or such lesser amount outstanding).

 

(ii)                       
All such prepayments shall be made:

 

(A)            
upon not less than one Business Day’s prior written or telephonic notice in the case of Base Rate Loans, and

 

(B)             
upon not less than three (3) Business Days’ prior written notice in the case of LIBOR Rate Loans,

 

in each case given to Administrative Agent
by 10:00 a.m. (New York time) on the date required (and Administrative Agent will promptly transmit such notice for Term Loans
to each Lender). Upon the giving of any such notice, unless such notice is expressly conditioned on the occurrence of another transaction,
the principal amount of the Loans specified in such notice shall become due and payable on the prepayment date specified therein.
Any such voluntary prepayment shall be applied as specified in Section 2.14(a).

 

    	 	- 62 -	 

     

    

 

Section 2.13       
Mandatory Prepayments.

 

(a)              
Asset Sales. No later than the fifth Business Day following the date of receipt by any Loan Party or any of its Subsidiaries
of any Net Proceeds from Asset Sales consummated pursuant to Section 6.09(e), Borrower shall prepay the Loans as set forth
in Section 2.14(a) in an aggregate amount equal to such Net Proceeds; provided, that so long as (i) no Default
or Event of Default shall have occurred and be continuing as of the date of such Asset Sale, (ii) Borrower has delivered Collateral
Agent prior written notice of Borrower’s intention to apply such monies (the “Reinvestment Amounts”) to
the costs of replacement of the properties or assets that are the subject of such sale or disposition or the cost of purchase or
construction of other assets useful in the business of Holdings or its Subsidiaries reinvested within six months (or within nine
months following receipt thereof if a contractual commitment to reinvest is entered into within nine months following receipt thereof),
following the date of such Asset Sale, (iii) the monies are held in a Deposit Account in which Collateral Agent has a perfected
first-priority security interest, and (iv) Holdings or its Subsidiaries, as applicable, complete such replacement, purchase,
or construction within 180 days after the initial receipt of such monies, Holdings and its Subsidiaries shall have the option to
apply such monies, in an aggregate amount not to exceed $250,000 in any Fiscal Year, to the costs of replacement of the assets
that are the subject of such sale or disposition or the costs of purchase or construction of other assets useful in the business
of Holdings and its Subsidiaries unless and to the extent that such applicable period shall have expired without such replacement,
purchase, or construction being made or completed, in which case, any amounts remaining in the cash collateral account shall be
paid to Administrative Agent and applied in accordance with Section 2.14(a); provided further that, notwithstanding
the foregoing proviso, all Net Proceeds from Refranchising Activity or any store liquidation shall be applied in accordance with
Section 2.14(a). Nothing contained in this Section 2.13(a) shall permit Borrower or any of its Subsidiaries
to sell or otherwise dispose of any assets other than in accordance with Section 6.09.

 

(b)              
Insurance/Condemnation Proceeds. No later than the fifth Business Day following the date of receipt by Holdings or
any of its Subsidiaries, or Collateral Agent as loss payee, of any Net Proceeds from insurance or any condemnation, taking, or
other casualty, Borrower shall prepay the Loans in an aggregate amount equal to such Net Proceeds; provided, that (i) so
long as no Default or Event of Default shall have occurred and be continuing, (ii) Borrower has delivered Collateral Agent
prior written notice of Borrower’s intention to apply the Reinvestment Amounts to the costs of replacement of the properties
or assets that are the subject of such condemnation, taking, or other casualty or the cost of purchase or construction of other
assets useful in the business of Holdings or its Subsidiaries reinvested within six months (or within nine months following receipt
thereof if a contractual commitment to reinvest is entered into within nine months following receipt thereof) following the date
of the receipt of such Net Proceeds, (iii) the monies are held in a Deposit Account in which Collateral Agent has a perfected
first-priority security interest, and (iv) Holdings or its Subsidiaries, as applicable, complete such replacement, purchase,
or construction within 180 days after the initial receipt of such monies, Holdings and its Subsidiaries shall have the option
to apply such monies, in an aggregate amount not to exceed $500,000 in any Fiscal Year, to the costs of replacement of the assets
that are the subject of such condemnation, taking, or other casualty or the costs of purchase or construction of other assets useful
in the business of Holdings and its Subsidiaries unless and to the extent that such applicable period shall have expired without
such replacement, purchase, or construction being made or completed, in which case, any amounts remaining in the cash collateral
account shall be paid to Administrative Agent and applied in accordance with Section 2.14(a).

 

    	 	- 63 -	 

     

    

 

(c)              
Issuance of Equity Securities. On the date of receipt by Holdings or any of its Subsidiaries of Cash proceeds from
a capital contribution to, or the issuance of any Capital Stock of, Holdings or any of its Subsidiaries (other than Capital Stock
issued by Borrower (i) pursuant to any employee stock or stock option compensation plan or (ii) for purposes approved in writing
by Administrative Agent), Borrower shall prepay the Loans as set forth in Section 2.14(a) in an aggregate amount equal to
100% of such proceeds, net of underwriting discounts and commissions and other reasonable costs and expenses associated therewith,
in each case, paid to non-Affiliates, including reasonable legal fees and expenses; provided, that the foregoing shall not
apply to Cash proceeds of Curative Equity.

 

(d)              
Issuance of Debt. On the date of receipt by Holdings or any of its Subsidiaries of any Cash proceeds from the incurrence
of any Indebtedness of Holdings or any of its Subsidiaries (other than with respect to any Indebtedness permitted to be incurred
pursuant to Section 6.01), Borrower shall prepay the Loans as set forth in Section 2.14(a) in an aggregate amount
equal to 100% of such proceeds, net of underwriting discounts and commissions and other reasonable costs and expenses associated
therewith, in each case, paid to non-Affiliates, including reasonable legal fees and expenses.

 

(e)              
Consolidated Excess Cash Flow. In the event that there shall be Consolidated Excess Cash Flow for any Fiscal Year
(commencing with the Fiscal Year ending December 26, 2020), Borrower shall, no later than 90 days after the end of such Fiscal
Year, prepay the Loans as set forth in Section 2.14(a) in an aggregate amount equal to the Applicable ECF Percentage of
such Consolidated Excess Cash Flow (the “ECF Payment Amount”); provided that, (i) solely with respect
to Fiscal Year ending December 26, 2020, Consolidated Excess Cash Flow shall be based on the fifteen (15) month period from October
1, 2019 through and including December 26, 2020, and (ii) the aggregate amount of prepayment made pursuant to Section 2.12
during any Fiscal Year shall reduce the ECF Payment Amount due pursuant to this Section 2.13(e) for such Fiscal Year on
a dollar-for-dollar basis..

 

(f)               
Workers’ Comp L/C. No later than the fifth Business Day following the date (x) the face amount of the Workers
Comp L/C is reduced and (y) the Workers Comp L/C is terminated, Borrower shall prepay the outstanding principal of the Obligations
as set forth in Section 2.14(a) in an amount equal to 100% of such reduction, in the case of the preceding clause (x), or 100%
of the face amount of the Workers Comp L/C, in the case of the preceding clause (y).

 

    	 	- 64 -	 

     

    

 

(g)              
Extraordinary Receipts and Refranchising. On the date of receipt by Holdings or any of its Subsidiaries of (i) any
Extraordinary Receipts in excess of $250,000 in the aggregate in any Fiscal Year or (ii) any Net Proceeds attributable to any Refranchising
Activity, Borrower shall prepay Loans as set forth in Section 2.14(a) in the amount of such Extraordinary Receipts or Net
Proceeds, as applicable.

 

(h)              
Liberty Subordinated Debt. Promptly after receipt by Liberty Borrower of the proceeds of any Liberty Subordinated
Debt incurred upon the request of Administrative Agent pursuant to Section 6.14(f), Borrower shall prepay Loans as set forth
in Section 2.14(a) in an aggregate amount equal to 100% of the aggregate principal amount of such Liberty Subordinated Debt,
net of underwriting discounts and commissions and other reasonable costs and expenses associated therewith, in each case, paid
to non-Affiliates, including reasonable legal fees and expenses.

 

(i)                
Existing Businesses. Without limitation of Section 8.01(k), promptly after the consummation of any sale, transfer
or other conveyance of all or substantially all of the assets of any of the Existing Businesses, or a majority of the Capital Stock
of any of the Existing Businesses, Borrower shall prepay Loans as set forth in Section 2.14(a) in an aggregate amount sufficient
to cause the Borrowing Base Ratio, as of the last day of the most recently ended fiscal month in respect of which a Borrowing Base
Certificate was delivered pursuant to Section 5.01(k), on a pro forma basis giving effect to such prepayment, to be no less than
100%.

 

(j)                
Prepayment Certificate. Concurrently with any prepayment of the Loans pursuant to Sections 2.13(a) through
2.13(i), Borrower shall deliver to Administrative Agent a certificate of an Authorized Officer demonstrating the calculation
of the amount of the applicable net proceeds or Consolidated Excess Cash Flow and compensation owing to Lenders under Section
2.10(b). In the event that the actual amount received exceeded the amount set forth in such certificate, Borrower shall promptly
make an additional prepayment of the Loans, and Borrower shall concurrently therewith deliver to Administrative Agent a certificate
of an Authorized Officer demonstrating the derivation of such excess.

 

Section 2.14       
Application of Prepayments/Reductions.

 

(a)              
Application of Prepayments of Term Loans. (i) Any prepayment of any Term Loan pursuant to Section 2.12
shall be applied as directed by the Borrower (and absent such direction, in direct order of maturity thereof), and (ii) any
mandatory prepayment of any Loan pursuant to Section 2.13 shall be applied to reduce the then remaining installments of
the Term Loans (including the installment thereof due on the Maturity Date) pro rata based upon the respective then remaining
principal amounts thereof, in each case, until paid in full.

 

(b)              
Waivable Mandatory Prepayment. Anything contained herein to the contrary notwithstanding, in the event Borrower is
required to make any mandatory prepayment (a “Waivable Mandatory Prepayment”) of the Term Loans, not less than
three (3) Business Days prior to the date (the “Required Prepayment Date”) on which Borrower is required to
make such Waivable Mandatory Prepayment, Borrower shall notify Administrative Agent of the amount of such prepayment, and Administrative
Agent will promptly thereafter notify each Lender holding an outstanding Term Loan of the amount of such Lender’s Pro Rata
Share of such Waivable Mandatory Prepayment and such Lender’s option to refuse such amount. Each such Lender may exercise
such option by giving written notice to Borrower and Administrative Agent of its election to do so, or if it elects not to do so
and other Lenders elect to exercise such option, if it elects to receive its pro rata share of the portion of such Waivable Mandatory
Prepayment that such other Lenders have elected to refuse, in each case on or before the first Business Day prior to the Required
Prepayment Date (it being understood that any Lender which does not notify Borrower and Administrative Agent of its election to
exercise such option on or before the first Business Day prior to the Required Prepayment Date shall be deemed to have elected,
as of such date, not to exercise such option to refuse such Waivable Mandatory Prepayment and not to exercise the option to receive
its pro rata share of the portion of such Waivable Mandatory Prepayment that other Lenders have elected to refuse, if any). On
the Required Prepayment Date, Borrower shall pay to Administrative Agent the amount of the Waivable Mandatory Prepayment, which
amount shall be applied (i) in an amount equal to that portion of the Waivable Mandatory Prepayment payable to those Lenders
that have elected not to exercise such option to refuse such Waivable Mandatory Prepayment, to prepay the Term Loans of such Lenders
(which prepayment shall be applied to the scheduled Installments of principal of the Term Loan in accordance with Section 2.14(a)),
(ii) to the extent of any excess, ratably to Lenders that have elected to receive the portion of such Waivable Mandatory Prepayment
that such other Lenders have elected to refuse, until paid in full (which prepayment shall be applied to the scheduled Installments
of principal of the Term Loan in accordance with Section 2.14(a)), and (iii) to the extent of any excess, to Borrower
for working capital and general corporate purposes.

 

    	 	- 65 -	 

     

    

 

(c)              
At any time an Application Event has occurred and is continuing, all payments shall be applied pursuant to Section 2.15(g).
Nothing contained herein shall modify the provisions of Section 2.10(b) or Section 2.15(b) regarding the requirement
that all prepayments be accompanied by accrued interest and fees on the principal amount being prepaid to the date of such prepayment
and the Exit Fee, or any requirement otherwise contained herein to pay all other amounts as the same become due and payable.

 

Section 2.15       
General Provisions Regarding Payments.

 

(a)              
All payments by Borrower of principal, interest, fees, and other Obligations shall be made in Dollars in immediately available
funds, without defense, recoupment, setoff, or counterclaim, free of any restriction or condition, and delivered to Administrative
Agent, for the account of Lenders, not later than noon (New York time) to Administrative Agent’s Account or via wire transfer
of immediately available funds to account number 4451238935 maintained at Bank of America N.A., ABA# 026009593; funds received
by Administrative Agent after that time on such due date shall be deemed to have been paid by Borrower on the next Business Day.

 

(b)              
All payments in respect of the principal amount of any Loan shall be accompanied by payment of accrued interest on the principal
amount being repaid or prepaid, the Exit Fee (if applicable), and all other amounts payable with respect to the principal amount
being repaid or prepaid.

 

    	 	- 66 -	 

     

    

 

(c)              
Administrative Agent shall promptly distribute to each Lender at such address as such Lender shall indicate in writing,
such Lender’s applicable Pro Rata Share of all payments and prepayments of principal and interest due hereunder, together
with all other amounts due with respect thereto, including, without limitation, all fees payable with respect thereto, to the extent
received by Administrative Agent.

 

(d)              
Notwithstanding the foregoing provisions hereof, if any Conversion/Continuation Notice is withdrawn as to any Affected Lender
or if any Affected Lender makes Base Rate Loans in lieu of its Pro Rata Share of any LIBOR Rate Loans, Administrative Agent shall
give effect thereto in apportioning payments received thereafter.

 

(e)              
Subject to the provisos set forth in the definition of “Interest Period,” whenever any payment to be made hereunder
shall be stated to be due on a day that is not a Business Day, such payment shall be made on the next succeeding Business Day,
and such extension of time shall be included in the computation of the payment of interest hereunder.

 

(f)               
Administrative Agent shall deem any payment by or on behalf of Borrower hereunder that is not made in same day funds prior
to noon (New York time) to be a non-conforming payment. Any such payment shall not be deemed to have been received by Administrative
Agent until the later of (i) the time such funds become available funds and (ii) the applicable next Business Day. Administrative
Agent shall give prompt notice to Borrower and each applicable Lender if any payment is non-conforming. Any non-conforming payment
may constitute or become a Default or Event of Default in accordance with the terms of Section 8.01(a). Interest shall continue
to accrue on any principal as to which a non-conforming payment is made until such funds become available funds (but in no
event less than the period from the date of such payment to the next succeeding applicable Business Day) at the Default Rate determined
pursuant to Section 2.09 from the date such amount was due and payable until the date such amount is paid in full.

 

(g)              
At any time an Application Event has occurred and is continuing, or the maturity of the Obligations shall have been accelerated
pursuant to Section 8.01, all payments or proceeds received by any Agent hereunder or under any Collateral Document in respect
of any of the Obligations, including, but not limited, to all proceeds received by any Agent in respect of any sale, any collection
from, or other realization upon all or any part of the Collateral, shall be applied in full or in part as follows:

 

(i)                
first, ratably to pay the Obligations in respect of any fees (other than the Exit Fee), expense reimbursements, indemnities,
and other amounts then due and payable to the Agents until paid in full,

 

(ii)             
second, ratably to pay interest then due and payable in respect of Protective Advances until paid in full,

 

(iii)           
third, ratably to pay principal of Protective Advances then due and payable until paid in full,

 

(iv)            
fourth, ratably to pay the Obligations in respect of the Exit Fee then due and payable to Lenders with a Term Loan
Commitment until paid in full, and

 

    	 	- 67 -	 

     

    

 

(v)              
fifth, to the ratable payment of all other Obligations then due and payable until paid in full.

 

(h)              
For purposes of Section 2.15(g) “paid in full” means payment in cash of all amounts owing under the Loan
Documents according to the terms thereof, including loan fees, service fees, professional fees, interest (and specifically including
any interest that accrues after the commencement of an Insolvency Proceeding), default interest, interest on interest, and expense
reimbursements, regardless of whether the same would be or is allowed or allowable in whole or in part as a claim in any such Insolvency
Proceeding.

 

(i)                
In the event of a direct conflict between the priority provisions of Section 2.15(g) and other provisions contained
in any other Loan Document, it is the intention of the parties hereto that both such priority provisions in such documents shall
be read together and construed, to the fullest extent possible, to be in concert with each other. In the event of any actual, irreconcilable
conflict that cannot be resolved as aforesaid, the terms and provisions of Section 2.15(g) shall control and govern.

 

Section 2.16       
Ratable Sharing. Lenders hereby agree among themselves that, except as otherwise provided in the Collateral Documents
with respect to amounts realized from the exercise of rights with respect to Liens on the Collateral, if any of them shall, whether
by voluntary payment (other than a voluntary prepayment of Loans made and applied in accordance with the terms hereof), through
the exercise of any right of set-off or banker’s lien, by counterclaim or cross action, or by the enforcement of any right
under the Loan Documents or otherwise, or as adequate protection of a deposit treated as cash collateral under the Bankruptcy Code,
receive payment or reduction of a proportion of the aggregate amount of principal, interest, fees, and other amounts then due and
owing to such Lender hereunder or under the other Loan Documents (collectively, the “Aggregate Amounts Due”
to such Lender) which is greater than the proportion received by any other Lender in respect of the Aggregate Amounts Due to such
other Lender, then the Lender receiving such proportionately greater payment shall (a) notify Administrative Agent and each
other Lender of the receipt of such payment and (b) apply a portion of such payment to purchase participations (which it shall
be deemed to have purchased from each seller of a participation simultaneously upon the receipt by such seller of its portion of
such payment) in the Aggregate Amounts Due to the other Lenders so that all such recoveries of Aggregate Amounts Due shall be shared
by all Lenders in proportion to the Aggregate Amounts Due to them; provided, that if all or part of such proportionately
greater payment received by such purchasing Lender is thereafter recovered from such Lender upon the bankruptcy or reorganization
of Borrower or otherwise, those purchases shall be rescinded and the purchase prices paid for such participations shall be returned
to such purchasing Lender ratably to the extent of such recovery, but without interest. Borrower expressly consents to the foregoing
arrangement and agrees that any holder of a participation so purchased may exercise any and all rights of banker’s lien,
set-off, or counterclaim with respect to any and all monies owing by Borrower to that holder with respect thereto as fully as if
that holder were owed the amount of the participation held by that holder.

 

Section 2.17       
Making or Maintaining LIBOR Rate Loans.

 

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(a)              
Inability to Determine Applicable Interest Rate. In the event that Administrative Agent shall have determined (which
determination shall be final and conclusive and binding upon all parties hereto), on any Interest Rate Determination Date with
respect to any LIBOR Rate Loans, that by reason of circumstances affecting the London interbank market adequate and fair means
do not exist for ascertaining the interest rate applicable to such LIBOR Rate Loans on the basis provided for in the definition
of Adjusted LIBOR Rate, Administrative Agent shall on such date give notice to Borrower and each Lender of such determination,
whereupon (i) no Loans may be made as, or converted to, LIBOR Rate Loans until such time as Administrative Agent notifies
Borrower and Lenders that the circumstances giving rise to such notice no longer exist, and (ii) any Funding Notice or Conversion/Continuation
Notice given by Borrower with respect to the Loans in respect of which such determination was made shall be deemed to be rescinded
by Borrower.

 

(b)              
Illegality or Impracticability of LIBOR Rate Loans. In the event that on any date any Lender shall have determined
(which determination shall be final and conclusive and binding upon all parties hereto but shall be made only after consultation
with Borrower and Administrative Agent) that the making, maintaining, or continuation of its LIBOR Rate Loans (i) has become
unlawful as a result of compliance by such Lender in good faith with any law, treaty, governmental rule, regulation, guideline,
or order (or would conflict with any such treaty, governmental rule, regulation, guideline, or order not having the force of law
even though the failure to comply therewith would not be unlawful), or (ii) has become impracticable, as a result of contingencies
occurring after the date hereof which materially and adversely affect the London interbank market or the position of such Lender
in that market, then, and in any such event, such Lender shall be an “Affected Lender,” and it shall on that
day give notice (by facsimile or by telephone confirmed in writing) to Borrower and Administrative Agent of such determination
(which notice Administrative Agent shall promptly transmit to each other Lender). Thereafter, (A) the obligation of the Affected
Lender to make Loans as, or to convert Loans to, LIBOR Rate Loans shall be suspended until such notice shall be withdrawn by the
Affected Lender, (B) to the extent such determination by the Affected Lender relates to a LIBOR Rate Loan then being requested
by Borrower pursuant to a Funding Notice or a Conversion/Continuation Notice, the Affected Lender shall make such Loan as (or continue
such Loan as or convert such Loan to, as the case may be) a Base Rate Loan, (C) the Affected Lender’s obligation to
maintain its outstanding LIBOR Rate Loans (the “Affected Loans”) shall be terminated at the earlier to occur
of the expiration of the Interest Period then in effect with respect to the Affected Loans or when required by law, and (D) the
Affected Loans shall automatically convert into Base Rate Loans on the date of such termination. Notwithstanding the foregoing,
to the extent a determination by an Affected Lender as described above relates to a LIBOR Rate Loan then being requested by Borrower
pursuant to a Funding Notice or a Conversion/Continuation Notice, Borrower shall have the option, subject to the provisions of
Section 2.17(c), to rescind such Funding Notice or Conversion/Continuation Notice as to all Lenders by giving notice to
Administrative Agent of such rescission on the date on which the Affected Lender gives notice of its determination as described
above (which notice of rescission Administrative Agent shall promptly transmit to each other Lender). Except as provided in the
immediately preceding sentence, nothing in this Section 2.17(b) shall affect the obligation of any Lender other than an
Affected Lender to make or maintain Loans as, or to convert Loans to, LIBOR Rate Loans in accordance with the terms hereof.

 

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(c)              
Compensation for Breakage or Non-Commencement of Interest Periods. Borrower shall compensate each Lender, upon written
request by such Lender (which request shall set forth in reasonable detail the basis for requesting such amounts), for all reasonable
losses, expenses, and liabilities (including any interest paid or calculated to be due and payable by such Lender to lenders of
funds borrowed by it to make or carry its LIBOR Rate Loans and any loss, expense, or liability sustained by such Lender in connection
with the liquidation or re-employment of such funds but excluding loss of anticipated profits) which such Lender may sustain: (i) if
for any reason (other than a default by such Lender) a borrowing of any LIBOR Rate Loan does not occur on a date specified therefor
in a Funding Notice or a telephonic request for borrowing, or a conversion to or continuation of any LIBOR Rate Loan does not occur
on a date specified therefor in a Conversion/Continuation Notice or a telephonic request for conversion or continuation, (ii) if
any prepayment or other principal payment of, or any conversion of, any of its LIBOR Rate Loans occurs on any day other than the
last day of an Interest Period applicable to that Loan (whether voluntary, mandatory, automatic, by reason of acceleration, or
otherwise), or (iii) if any prepayment of any of its LIBOR Rate Loans is not made on any date specified in a notice of prepayment
given by Borrower.

 

(d)              
Booking of LIBOR Rate Loans. Any Lender may make, carry, or transfer LIBOR Rate Loans at, to, or for the account
of any of its branch offices or the office of an Affiliate of such Lender.

 

(e)              
Assumptions Concerning Funding of LIBOR Rate Loans. Calculation of all amounts payable to a Lender under this Section
2.17 and under Section 2.18 shall be made as though such Lender had actually funded each of its relevant LIBOR Rate
Loans through the purchase of a LIBOR deposit bearing interest at the rate obtained pursuant to clause (a)(i) of the
definition of Adjusted LIBOR Rate in an amount equal to the amount of such LIBOR Rate Loan and having a maturity comparable to
the relevant Interest Period and through the transfer of such LIBOR deposit from an offshore office of such Lender to a domestic
office of such Lender in the United States of America; provided, that each Lender may fund each of its LIBOR Rate Loans
in any manner it sees fit, and the foregoing assumptions shall be utilized only for the purposes of calculating amounts payable
under this Section 2.17 and under Section 2.18.

 

Section 2.18       
Increased Costs.

 

(a)              
Compensation For Increased Costs and Taxes. Subject to the provisions of Section 2.19 (which shall be controlling
with respect to the matters covered thereby), in the event that any Lender shall determine (which determination shall, absent manifest
error, be final and conclusive and binding upon all parties hereto) that any law, treaty, or governmental rule, regulation, or
order, or any change therein or in the interpretation, administration, or application thereof (including the introduction of any
new law, treaty, or governmental rule, regulation, or order), or any determination of a court or Governmental Authority, in each
case that becomes effective after the date hereof, or compliance by such Lender with any guideline, request, or directive issued
or made after the date hereof by any central bank or other governmental or quasi-Governmental Authority (whether or not having
the force of law): (i) subjects such Lender (or its applicable lending office) to any additional Tax (other than Indemnified
Tax, Other Tax or any Excluded Tax) with respect to this Agreement or any of the other Loan Documents or any of its obligations
hereunder or thereunder or any payments to such Lender (or its applicable lending office) of principal, interest, fees or any other
amounts payable hereunder, (ii) imposes, modifies, or holds applicable any reserve (including any marginal, emergency, supplemental,
special, or other reserve), special deposit, compulsory loan, FDIC insurance, or similar requirement against assets held by, or
deposits or other liabilities in or for the account of, or advances or loans by, or other credit extended by, or any other acquisition
of funds by, any office of such Lender (other than any such reserve or other requirements with respect to LIBOR Rate Loans that
are reflected in the definition of Adjusted LIBOR Rate), or (iii) imposes any other condition (other than with respect to
a Tax matter) on or affecting such Lender (or its applicable lending office) or its obligations hereunder or the London interbank
market; and the result of any of the foregoing is to increase the cost to such Lender of agreeing to make, making, or maintaining
Loans hereunder or to reduce any amount received or receivable by such Lender (or its applicable lending office) with respect thereto;
then, in any such case, Borrower shall promptly pay to such Lender, upon receipt of the statement referred to in the next sentence,
such additional amount or amounts (in the form of an increased rate of, or a different method of calculating, interest or otherwise
as such Lender shall determine in its reasonable discretion) as may be necessary to compensate such Lender for any such increased
cost or reduction in amounts received or receivable hereunder. Such Lender shall deliver to Borrower (with a copy to Administrative
Agent) a written statement, setting forth in reasonable detail the basis for calculating the additional amounts owed to such Lender
under this Section 2.18(a), which statement shall be conclusive and binding upon all parties hereto absent manifest error.

 

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Section 2.19       
Taxes; Withholding, etc.

 

(a)              
Withholding of Taxes. All sums payable by any Loan Party hereunder and under the other Loan Documents shall (except
to the extent required by applicable law) be paid free and clear of, and without any deduction or withholding on account of, any
Tax, other than (i) Taxes imposed on or measured by the recipient’s net income (however denominated), franchise Taxes,
and branch profits Taxes, imposed on the recipient, in each case, (A) as a result of such recipient being organized under
the laws of, having its principal office in, or, in the case of any Lender, its applicable lending office is located in, the jurisdiction
imposing such Tax (or any political subdivision thereof), or (B) as the result of any present or former connection between
such recipient and the jurisdiction imposing such Tax (other than connections arising from such recipient having executed, delivered,
become a party to, performed its obligations under, received payments under, received or perfected a security interest under, or
engaged in any other transaction pursuant to, or enforced any, Loan Document) (Taxes described in this clause (i)(B), “Other
Connection Taxes”), (ii) in the case of a Lender, United States federal income withholding Taxes imposed on amounts
payable to or for the account of such Lender pursuant to a law in effect on the date on which (x) such Lender becomes a party hereto
or acquires an interest in the Loan (other than pursuant to an assignment request by a Loan Party under Section 2.22), or
(y) such Lender changes its lending office, except that this clause (ii) shall not apply to the extent that, pursuant
to this Section 2.19, amounts with respect to such Taxes were payable either to such Lender’s assignor immediately
before such Lender became a party hereto or to such Lender immediately before it changed its lending office, (iii) Taxes attributable
to such recipient’s failure to comply with Section 2.19(d), and (iv) Taxes imposed under FATCA (all such excluded
Taxes, collectively or individually, “Excluded Taxes” and all such non-excluded Taxes, collectively or individually,
“Indemnified Taxes”). If any Loan Party or any other Person is required by applicable law to make any deduction
or withholding on account of any Indemnified Tax or Other Tax from any sum paid or payable by any Loan Party to any Agent or any
Lender under any of the Loan Documents: (1) Borrower shall notify Administrative Agent of any such requirement as soon as
reasonably practicable after Borrower becomes aware of it, (2) Borrower shall timely pay any such Tax, (3) the sum payable
by such Loan Party shall be increased to the extent necessary to ensure that, after the making of that deduction, withholding,
or payment, such Agent or such Lender, as the case may be, receives on the due date an amount equal to what it would have received
had no such deduction, withholding, or payment been required or made, and (4) within thirty days after paying any sum from
which it is required by law to make any deduction or withholding, Borrower shall deliver to Administrative Agent the original or
a certified copy of a receipt issued by the applicable Governmental Authority evidencing such payment, a copy of the return reporting
such payment or other evidence of such payment reasonably satisfactory to the Administrative Agent.

 

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(b)              
Other Taxes. The Loan Parties shall pay to the relevant Governmental Authorities any present or future stamp or documentary,
intangible, recording, filing or similar Taxes that arise from any payment made hereunder or from the execution, delivery, performance,
enforcement or registration of, from the receipt or perfection of a security interest under, or otherwise with respect to, this
Agreement or any other Loan Document, except any such Taxes that are Other Connection Taxes imposed with respect to an assignment
(other than an assignment made pursuant to Section 2.22) (“Other Taxes”). Within thirty days after paying
any such Other Taxes, each Loan Party shall deliver to Administrative Agent the original or a certified copy of a receipt issued
by such Governmental Authority evidencing such payment, a copy of the return reporting such payment or other evidence of such payment
reasonably satisfactory to the Administrative Agent.

 

(c)              
Tax Indemnification. The Loan Parties hereby jointly and severally indemnify and agree to hold each Agent and Lender
harmless from and against all Indemnified Taxes and (without duplication) Other Taxes (including, without limitation, Indemnified
Taxes and Other Taxes imposed on any amounts payable under this Section 2.19) paid by such Person, whether or not such Indemnified
Taxes or Other Taxes were correctly or legally asserted by the relevant Governmental Authority. Such indemnification shall be paid
within ten (10) days from the date on which any Agent or Lender makes written demand therefor specifying in reasonable detail the
nature and amount of such Indemnified Taxes or Other Taxes.

 

(d)              
Evidence of Exemption From or Reduction of U.S. Withholding Tax.

 

(i)                       
Any Lender that is entitled to an exemption from or reduction of withholding Tax with respect to payments made under any
Loan Document shall deliver to a Loan Party and the Administrative Agent, at the time or times reasonably requested by a Loan Party
or the Administrative Agent, such properly completed and executed documentation reasonably requested by a Loan Party or the Administrative
Agent as will permit such payments to be made without withholding or at a reduced rate of withholding. In addition, any Lender,
if reasonably requested by a Loan Party or the Administrative Agent, shall deliver such other documentation prescribed by applicable
law or reasonably requested by a Loan Party or the Administrative Agent as will enable a Loan Party or the Administrative Agent
to determine whether or not such Lender is subject to backup withholding or information reporting requirements. Notwithstanding
anything to the contrary in the preceding two sentences, the completion, execution and submission of such documentation (other
than such documentation set forth in paragraphs (ii), (iv) and (v) of this Section) shall not be required if in the Lender’s
reasonable judgment such completion, execution or submission would subject such Lender to any material unreimbursed cost or expense
or would materially prejudice the legal or commercial position of such Lender.

 

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(ii)                       
Each Lender that is not a United States Person (as such term is defined in Section 7701(a)(30) of the Internal Revenue
Code) for United States federal income tax purposes (a “Non-US Lender”) shall deliver to Administrative Agent
(for transmission to Borrower upon Borrower’s written request), on or prior to the Closing Date (in the case of each Lender
listed on the signature pages hereof on the Closing Date) or on or prior to the date such Person becomes a Lender hereunder, and
at such other times as may be necessary in the determination of Administrative Agent (in its reasonable exercise of its discretion)
or upon the reasonable request of a Loan Party, (i) two original copies of Internal Revenue Service Form W-8IMY (with
appropriate attachments), W-8BEN or W-8BEN-E, or W-8ECI (or any successor forms), as applicable, properly completed and duly
executed by such Lender to establish that such Lender is not subject to, or is subject to a reduced rate of, deduction or withholding
of United States federal income tax with respect to any payments to such Lender of principal, interest, fees, or other amounts
payable under any of the Loan Documents, and (ii) if such Lender is claiming exemption from United States federal income tax
under Section 871(h) or 881(c) of the Internal Revenue Code, a Certificate Regarding Non-Bank Status, properly completed and
duly executed by such Lender. Each Lender required to deliver any forms or certificates with respect to United States federal income
tax withholding matters pursuant to this Section 2.19(d) hereby agrees, from time to time after the initial delivery by
such Lender of such forms or certificates, whenever a lapse in time or change in circumstances renders such forms or certificates
obsolete or inaccurate in any material respect, that such Lender shall deliver to Administrative Agent (for transmission to Borrower)
two new original copies of Internal Revenue Service Form W-8IMY (with appropriate attachments thereto), W-8BEN or W-8BEN-E,
or W-8ECI, as applicable, and, if applicable, a Certificate Regarding Non-Bank Status (or any successor forms), as the case may
be, properly completed and duly executed by such Lender, or promptly notify Administrative Agent and Borrower of its inability
to deliver any such forms or certificates. Notwithstanding the above, a Non-US Lender shall not be required to deliver any form
pursuant to this Section 2.19(d)(ii) that such Non-US Lender is not legally able to deliver.

 

(iii)                       
Any Non-US Lender shall, to the extent it is legally entitled to do so, deliver to Borrower and the Administrative Agent
(in such number of copies as shall be requested by the recipient) on or about the date on which such Non-US Lender becomes a Lender
under this Agreement (and from time to time thereafter upon the reasonable request of a Loan Party or the Administrative Agent),
executed copies of any other form prescribed by applicable law as a basis for claiming exemption from or a reduction in United
States federal withholding Tax, duly completed, together with such supplementary documentation as may be prescribed by applicable
law to permit a Loan Party or the Administrative Agent to determine the withholding or deduction required to be made.

 

(iv)                       
If a payment made to a Lender under any Loan Document would be subject to United States federal withholding Tax imposed
by FATCA if such Lender were to fail to comply with the applicable reporting requirements of FATCA (including those contained in
Section 1471(b) or 1472(b) of the Internal Revenue Code, as applicable), such Lender shall deliver to Borrower and Administrative
Agent at the time or times prescribed by law and at such time or times reasonably requested by a Loan Party or Administrative Agent
such documentation prescribed by applicable law (including as prescribed by Section 1471(b)(3)(C)(i) of the Internal Revenue
Code) and such additional documentation reasonably requested by a Loan Party or Administrative Agent as may be necessary for the
Loan Party and Administrative Agent to comply with their obligations under FATCA and to determine that such Lender has complied
with such Lender’s obligations under FATCA or to determine the amount to deduct and withhold from such payment. Solely for
purposes of this Section 2.19(d)(iv), FATCA shall include any amendments made to FATCA after the date of this Agreement.
Notwithstanding the above, a Lender shall not be required to deliver any form or other form of documentation pursuant to this Section
2.19(d)(iv) that such Non-US Lender is not legally able to deliver.

 

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(v)                       
Each Lender that is a United States Person (as such term is defined in Section 7701(a)(30) of the Internal Revenue
Code) for United States federal income tax purposes shall deliver to Administrative Agent (for transmission to Borrower), on or
prior to the Closing Date (in the case of each such Lender listed on the signature pages hereof on the Closing Date) or on or prior
to the date such Person becomes a Lender hereunder, and at such other times as may be necessary in the determination of Administrative
Agent (in its reasonable exercise of its discretion) or upon the reasonable request of a Loan Party, two original copies of Internal
Revenue Service Form W-9 (or any successor forms) properly completed and duly executed by such Lender to establish that such
Lender is not subject to United States backup withholding taxes with respect to any payments to such Lender of principal, interest,
fees, or other amounts payable under any of the Loan Documents.

 

(e)              
Treatment of Certain Refunds. If any party determines, in its sole discretion exercised in good faith, that it has
received a refund of any Taxes as to which it has been indemnified pursuant to this Section 2.19 (including by the payment
of additional amounts pursuant to this Section 2.19), it shall pay to the indemnifying party an amount equal to such refund
(but only to the extent of indemnity payments made under this Section 2.19 with respect to the Taxes giving rise to such
refund), net of all out-of-pocket expenses (including Taxes) of such indemnified party and without interest (other than any interest
paid by the relevant Governmental Authority with respect to such refund). Such indemnifying party, upon the request of such indemnified
party, shall repay to such indemnified party the amount paid over pursuant to this paragraph (e) (plus any penalties, interest
or other charges imposed by the relevant Governmental Authority) in the event that such indemnified party is required to repay
such refund to such Governmental Authority. Notwithstanding anything to the contrary in this paragraph (e), in no event will the
indemnified party be required to pay any amount to an indemnifying party pursuant to this paragraph (e) the payment of which would
place the indemnified party in a less favorable net after-Tax position than the indemnified party would have been in if the Tax
subject to indemnification and giving rise to such refund had not been deducted, withheld or otherwise imposed and the indemnification
payments or additional amounts with respect to such Tax had never been paid. This paragraph shall not be construed to require any
indemnified party to make available its Tax returns (or any other information relating to its Taxes that it deems confidential)
to the indemnifying party or any other Person.

 

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(f)               
Survival. Each party’s obligations under this Section 2.19 shall survive the resignation or replacement
of the Administrative Agent or any assignment of rights by, or the replacement of, a Lender, the termination of the Commitments
and the repayment, satisfaction or discharge of all obligations under any Loan Document.

 

(g)              
For purposes of this Section 2.19, “applicable law” shall include FATCA.

 

Section 2.20       
Obligation to Mitigate. Each Lender agrees that, as promptly as practicable after the officer of such Lender responsible
for administering its Loans, as the case may be, becomes aware of the occurrence of an event or the existence of a condition that
would cause such Lender to become an Affected Lender or that would entitle such Lender to receive payments under Section 2.17,
2.18, or 2.19, it will, to the extent not inconsistent with the internal policies of such Lender and any applicable
legal or regulatory restrictions, use reasonable efforts to (a) make, issue, fund, or maintain its Credit Extensions, including
any Affected Loans, through another office of such Lender or (b) take such other measures as such Lender may deem reasonable,
if as a result thereof the circumstances which would cause such Lender to be an Affected Lender would cease to exist or the additional
amounts which would otherwise be required to be paid to such Lender pursuant to Section 2.17, 2.18, or 2.19
would be materially reduced and if, as determined by such Lender in its sole discretion, the making, funding, or maintaining of
such Loans through such other office or in accordance with such other measures, as the case may be, would not otherwise adversely
affect such Loans or the interests of such Lender; provided, that such Lender will not be obligated to utilize such other
office pursuant to this Section 2.20 unless Borrower agrees to pay all incremental expenses incurred by such Lender as a
result of utilizing such other office as described above. A certificate as to the amount of any such expenses payable by Borrower
pursuant to this Section 2.20 (setting forth in reasonable detail the basis for requesting such amount) submitted by such
Lender to Borrower (with a copy to Administrative Agent) shall be conclusive absent manifest error.

 

Section 2.21       
Defaulting Lenders. Anything contained herein to the contrary notwithstanding, in the event that any Lender violates
any provision of Section 9.05(c), or, other than at the direction or request of any regulatory agency or authority, defaults
(in each case, a “Defaulting Lender”) in its obligation to fund (a “Funding Default”) any
Term Loan (in each case, a “Defaulted Loan”), then (a) during any Default Period with respect to such Defaulting
Lender, such Defaulting Lender shall be deemed not to be a “Lender” for purposes of voting on any matters (including
the granting of any consents or waivers) with respect to any of the Loan Documents, and (b) to the extent permitted by applicable
law, until such time as the Default Excess, if any, with respect to such Defaulting Lender shall have been reduced to zero, (i) any
voluntary prepayment of the Term Loans shall, if Administrative Agent so directs at the time of making such voluntary prepayment,
be applied to the Term Loans of other Lenders as if such Defaulting Lender had no Term Loans outstanding and the outstanding Term
Loans of such Defaulting Lender were zero and (ii) any mandatory prepayment of the Term Loans shall, if Administrative Agent
so directs at the time of making such mandatory prepayment, be applied to the Term Loans of other Lenders (but not to the Term
Loans of such Defaulting Lender) as if such Defaulting Lender had funded all Defaulted Loans of such Defaulting Lender, it being
understood and agreed that Borrower shall be entitled to retain any portion of any mandatory prepayment of the Term Loans that
is not paid to such Defaulting Lender solely as a result of the operation of the provisions of this clause (b). No
Term Loan Commitment of any Lender shall be increased or otherwise affected, and, except as otherwise expressly provided in this
Section 2.21, performance by Borrower of its obligations hereunder and the other Loan Documents shall not be excused or
otherwise modified as a result of any Funding Default or the operation of this Section 2.21. The rights and remedies against
a Defaulting Lender under this Section 2.21 are in addition to other rights and remedies which Borrower may have against
such Defaulting Lender with respect to any Funding Default and which Administrative Agent or any Lender may have against such Defaulting
Lender with respect to any Funding Default or violation of Section 9.05(c).

 

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Section 2.22       
Removal or Replacement of a Lender. Anything contained herein to the contrary notwithstanding, in the event that:
(a) (i) any Lender (an “Increased Cost Lender”) shall give notice to Borrower that such Lender is an Affected
Lender or that such Lender is entitled to receive payments under Section 2.18, 2.19, or 2.20, (ii) the
circumstances which have caused such Lender to be an Affected Lender or which entitle such Lender to receive such payments shall
remain in effect, and (iii) such Lender shall fail to withdraw such notice within five Business Days after Borrower’s
request for such withdrawal, (b) (i) any Lender shall become a Defaulting Lender, (ii) the Default Period for such Defaulting
Lender shall remain in effect, and (iii) such Defaulting Lender shall fail to cure the default as a result of which it has
become a Defaulting Lender within five Business Days after Borrower’s request that it cure such default, or (c) in connection
with any proposed amendment, modification, termination, waiver, or consent with respect to any of the provisions hereof as contemplated
by Section 10.05(b), the consent of Administrative Agent and Required Lenders shall have been obtained but the consent of
one or more of such other Lenders (each a “Non-Consenting Lender”) whose consent is required shall not have
been obtained; then, with respect to each such Increased Cost Lender, Defaulting Lender, or Non-Consenting Lender (the “Terminated
Lender”), (x) Administrative Agent may (except as to any Increased Cost Lender), by giving written notice to Borrower
and any Terminated Lender of its election to do so, and (y) the Borrower may, upon notice to the Administrative Agent and any Terminated
Lender, in the case of each of clauses (x) and (y), require such Terminated Lender (and such Terminated Lender hereby irrevocably
agrees) to assign its outstanding Loans and Commitments, if any, in full to one or more Eligible Assignees (each a “Replacement
Lender”) in accordance with the provisions of Section 10.06, and Terminated Lender shall pay any fees payable
thereunder in connection with such assignment; provided, that (A) on the date of such assignment, the Replacement Lender
shall pay to Terminated Lender an amount equal to the sum of (1) an amount equal to the principal of, and all accrued interest
on, all outstanding Loans of the Terminated Lender, together with, in the case of a Non-Consenting Lender, the Exit Fee with respect
thereto (as if such Loans had been prepaid to such Non-Consenting Lender pursuant to Section 2.10 hereof) and (2) an
amount equal to all accrued, but theretofore unpaid fees owing to such Terminated Lender pursuant to Section 2.10, (B) on
the date of such assignment, Borrower shall pay any amounts payable to such Terminated Lender pursuant to Section 2.18 or
2.19, (C) in the event such Terminated Lender is a Non-Consenting Lender, each Replacement Lender shall consent, at
the time of such assignment, to each matter in respect of which such Terminated Lender was a Non-Consenting Lender. Upon the prepayment
of all amounts owing to any Terminated Lender and the termination of such Terminated Lender’s Commitments, if any, such Terminated
Lender shall no longer constitute a “Lender” for purposes hereof; provided, that any rights of such Terminated
Lender to indemnification hereunder shall survive as to such Terminated Lender, and (D) the Administrative Agent shall take all
actions reasonably required to effect any assignment that the Borrower may require pursuant to, and in compliance with, this Section
2.22.

 

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ARTICLE
III

CONDITIONS PRECEDENT

 

Section 3.01       
Closing Date. The obligation of each Lender to make a Credit Extension on the Closing Date is subject to the satisfaction,
or waiver in accordance with Section 10.05, of the following conditions on or before the Closing Date:

 

(a)              
Loan Documents. Administrative Agent shall have received copies of each Loan Document executed by each applicable
Loan Party, Global Parent, Liberty Top Parent and S/B Parent, as applicable, and each other party thereto.

 

(b)              
Organizational Documents; Incumbency. Administrative Agent shall have received (i)  copies of each Organizational
Document executed by each Loan Party, by S/B Parent by Global Parent, and by Liberty Top Parent, as applicable, and, to the extent
applicable, certified as of a recent date by the appropriate governmental official, each dated the Closing Date or a recent date
prior thereto, (ii) signature and incumbency certificates of the officers of such Person executing the Loan Documents to which
it is a party, (iii) resolutions of the Board or similar governing body of each Loan Party, of S/B Parent, of Global Parent,
and of Liberty Top Parent, in each case, approving and authorizing the execution, delivery, and performance of this Agreement and
the other Loan Documents to which it is a party or by which it or its assets may be bound as of the Closing Date, certified as
of the Closing Date by its secretary or an assistant secretary or other similar responsible officer as being in full force and
effect without modification or amendment, (iv) a good standing certificate from the applicable Governmental Authority of each
Loan Party’s, of S/B Parent’s, of Global Parent’s, and Liberty Top Parent’s jurisdiction of incorporation,
organization, or formation dated a recent date prior to the Closing Date and (v) such other documents as Administrative Agent may
reasonably request.

 

(c)              
Consummation of the Closing Date Acquisition. The Closing Date Acquisition shall have been consummated substantially
simultaneously with the initial Credit Extension hereunder in accordance with the terms of the Closing Date Acquisition Agreement.

 

(d)              
Existing Indebtedness. On the Closing Date, substantially simultaneously with the initial Credit Extension hereunder,
Holdings and its Subsidiaries shall have (i) terminated any commitments to lend or make other extensions of credit to, and all
guarantees of, Holdings and its Subsidiaries under or in respect of the Existing Indebtedness and (ii) delivered to Administrative
Agent (or filed directly or indirectly) all documents or instruments necessary to release all Liens in favor of the secured parties
under the Existing Indebtedness on the assets and other property (including Capital Stock) of Holdings and its Subsidiaries.

 

(e)              
Equity Contribution. Immediately prior to the consummation of the Closing Date Acquisition, Liberty shall have, directly
or indirectly, made common equity contributions to Holdings in an aggregate amount of not less than $55,000,000, which proceeds
shall have been contributed to Borrower as cash common equity (the “Equity Contribution”).

 

    	 	- 77 -	 

     

    

 

(f)               
[Intentionally Omitted].

 

(g)              
Personal Property Collateral. In order to create in favor of Collateral Agent, for the benefit of Secured Parties,
a valid, perfected First Priority security interest in personal property Collateral, Collateral Agent shall have received:

 

(i)                       
evidence satisfactory to Collateral Agent of the compliance by each Loan Party, S/B Parent, Global Parent, and Liberty Top
Parent of their obligations under the Security Agreement and the other Collateral Documents to which they are parties (including,
without limitation, their obligations to authorize or execute, as the case may be, and deliver UCC financing statements, originals
of securities, instruments and chattel paper, and any agreements governing deposit and/or securities accounts as provided therein),
together with (A) appropriate financing statements on Form UCC-1 duly filed in such office or offices as may be necessary
or, in the opinion of Collateral Agent, desirable to perfect the security interests purported to be created by each Security Agreement,
and (B) evidence satisfactory to Collateral Agent of the filing of such UCC-1 financing statements,

 

(ii)                       
original certificates (if any) with respect to all of the Capital Stock issued by (A) any of the Loan Parties, (B) Franchise
Group Intermediate B, LLC, a Delaware limited liability company, and (C) Liberty Top Parent, Liberty Parent, and S/B Parent, in
each case, together with undated powers executed in blank with respect thereto (provided, that any such certificates issued
by any Person other than Borrower shall only be required to be delivered on the Closing Date to the extent timely received after
using commercially reasonable efforts to obtain them), and

 

(iii)                       
A completed Perfection Certificate dated the Closing Date and executed by an Authorized Officer of each Loan Party, S/B
Parent, Global Parent; and Liberty Top Parent), together with all attachments contemplated thereby.

 

(h)              
Opinions of Counsel. Lenders and their respective counsel shall have received executed copies of the favorable written
opinions of counsel for Loan Parties, S/B Parent, Global Parent; and Liberty Top Parent, and as to such other matters as Administrative
Agent may reasonably request, dated as of the Closing Date and otherwise in form and substance satisfactory to Administrative Agent
(and such counsel is hereby instructed to deliver such opinions to Agents and Lenders).

 

(i)                
Fees and Expenses. All accrued costs, fees, and expenses (including, without limitation, legal fees and expenses
and the fees and expenses of any other advisors) and other compensation due and payable to Administrative Agent, Guggenheim, and
the Lenders and required by this Agreement and the other Loan Documents (including, without limitation, the Fee Letter, Section
2.10(a), and Section 10.02 hereof) to be paid on the Closing Date shall have been paid, in the case of expenses, to
the extent a reasonably detailed invoice has been delivered to Borrower at least two (2) Business Days prior to the Closing Date;
provided, that the foregoing amounts may, at the Borrower’s option, be offset against the proceeds of the Term Loans
funded on the Closing Date.

 

    	 	- 78 -	 

     

    

 

(j)                
Solvency Certificate. On the Closing Date, Administrative Agent shall have received a solvency certificate of the
chief operating officer or chief financial officer of the Borrower substantially in the form of Exhibit F-2, dated
as of the Closing Date and addressed to the Agents and Lenders.

 

(k)              
Closing Date Certificate. Holdings and Borrower shall have delivered to the Agents an executed Closing Date Certificate,
together with all attachments thereto.

 

(l)                
No Material Adverse Effect. Since August 27, 2019, there shall not have occurred a Material Adverse Effect (as defined
in the Closing Date Acquisition Agreement).

 

(m)            
Bank Regulations. Each Loan Party, S/B Parent, Global Parent, and Liberty Top Parent shall have provided to the Lenders
no less than three (3) Business Days prior to the Closing Date the documentation and other information that are reasonably requested
by the Lenders no later than 10 days prior to the Closing Date under the applicable “know-your-customer” rules and
regulations, including, without limitation, the PATRIOT Act.

 

(n)              
Funding Notice. Administrative Agent shall have received a fully executed and delivered Funding Notice (which on
the Closing Date shall be satisfied by the execution and delivery of the Flow of Funds Agreement).

 

(o)              
Specified Acquisition Agreement Representations and Specified Representations. As of the Closing Date, the Specified
Acquisition Agreement Representations and the Specified Representations shall be true and correct in all material respects (except
that such materiality qualifier shall not be applicable to any representations or warranties that already are qualified or modified
as to “materiality” or “Material Adverse Effect” in the text thereof, which representations and warranties
shall be true and correct in all respects subject to such qualification).

 

Each Lender, by delivering its signature
page to this Agreement and funding a Loan on the Closing Date, shall be deemed to have acknowledged receipt of, and consented to
and approved, each Loan Document and each other document required to be approved by any Agent, Required Lenders, or Lenders, as
applicable, on the Closing Date.

 

ARTICLE
IV

REPRESENTATIONS AND WARRANTIES

 

In order to induce Agents
and Lenders to enter into this Agreement and to make each Credit Extension to be made thereby, each Loan Party (and, to the extent
applicable, each of Global Parent, Liberty Top Parent and S/B Parent) represents and warrants to each Agent and Lenders, on the
Closing Date, that the following statements are true and correct:

 

Section 4.01       
Organization; Requisite Power and Authority; Qualification. Each of Holdings, the Borrower and its Subsidiaries (a) is
duly organized, validly existing, and in good standing under the laws of its jurisdiction of organization as identified in Schedule 4.1,
(b) has all requisite power and authority to own and operate its properties, to carry on its business as now conducted and
as proposed to be conducted, to enter into the Loan Documents to which it is a party and to carry out the transactions contemplated
thereby and, in the case of Borrower, to make the borrowings hereunder, and (c) is qualified to do business and in good standing
in every jurisdiction where its assets are located and wherever necessary to carry out its business and operations, except, in
the case of this clause (c), in jurisdictions where the failure to be so qualified or in good standing could not be reasonably
expected to have a Material Adverse Effect.

 

    	 	- 79 -	 

     

    

 

Section 4.02       
Capital Stock and Ownership. The Capital Stock of each of Holdings, the Borrower and its Subsidiaries has been duly
authorized and validly issued and is fully paid and non-assessable. Except as set forth on Schedule 4.2, as of the
date hereof, there is no existing option, warrant, call, right, commitment, or other agreement to which Holdings or any of its
Subsidiaries is a party requiring, and there is no membership interest or other Capital Stock of Holdings or any of its Subsidiaries
outstanding which upon conversion or exchange would require, the issuance by Holdings or any of its Subsidiaries of any additional
membership interests or other Capital Stock of Holdings or any of its Subsidiaries or other Securities convertible into, exchangeable
for, or evidencing the right to subscribe for or purchase a membership interest or other Capital Stock of Holdings or any of its
Subsidiaries. Schedule 4.2 correctly sets forth the ownership interest of Holdings and each of its Subsidiaries in
their respective Subsidiaries as of the Closing Date after giving effect to the Transactions.

 

Section 4.03       
Due Authorization. The execution, delivery, and performance of the Loan Documents have been duly authorized by all
necessary action on the part of each Loan Party that is a party thereto.

 

Section 4.04       
No Conflict. The execution, delivery, and performance by Loan Parties of the Loan Documents to which they are parties
and the consummation of the transactions contemplated by the Loan Documents do not and will not (a) violate any provision
of any law or any governmental rule, or regulation applicable to Holdings or any of its Subsidiaries, or any order, judgment, or
decree of any court or other agency of government binding on Holdings or any of its Subsidiaries, (b) conflict with, result
in a breach of, or constitute (with due notice or lapse of time or both) a default under any Contractual Obligation of Holdings
or any of its Subsidiaries, (c) result in or require the creation or imposition of any Lien upon any of the properties or
assets of Holdings or any of its Subsidiaries (other than any Liens created under any of the Loan Documents in favor of Collateral
Agent, on behalf of Secured Parties), (d) result in any default, non-compliance, suspension, revocation, impairment, forfeiture,
or non-renewal of any permit, license, authorization, or approval applicable to its operations or any of its properties, (e) require
any approval of stockholders, members, or partners or any approval or consent of any Person under any Contractual Obligation of
Holdings or any of its Subsidiaries, except for such approvals or consents which will be obtained on or before the Closing Date
and disclosed in writing to Lenders, or (f) violate any provision of any of the Organizational Documents of Holdings or any of
its Subsidiaries, except, in the case of the preceding clauses (a), (b), (d) and (e), for any violation, conflict, breach, default,
creation, imposition, non-compliance, suspension, revocation, impairment, forfeiture, non-renewal, or requirement, in each case,
that could not reasonably be expected, either individually or in the aggregate, to have a Material Adverse Effect.

 

    	 	- 80 -	 

     

    

 

Section 4.05       
Governmental Consents. As of the Closing Date, except to the extent the failure to obtain or make the same could
not reasonably be expected to have, individually or in the aggregate, a Material Adverse Effect, the execution, delivery, and performance
by Loan Parties of the Loan Documents to which they are parties and the consummation of the transactions contemplated by the Loan
Documents do not and will not require any registration with, consent or approval of, or notice to, or other action to, with or
by, any Governmental Authority except for filings and recordings (i) with respect to the Collateral to be made or otherwise delivered
to Collateral Agent for filing and/or recordation or (ii) that have already been made or obtained.

 

Section 4.06       
Binding Obligation. Each Loan Document has been duly executed and delivered by each Loan Party that is a party thereto
and is the legally valid and binding obligation of such Loan Party, enforceable against such Loan Party in accordance with its
respective terms, except as may be limited by bankruptcy, insolvency, reorganization, moratorium, or similar laws relating to or
limiting creditors’ rights generally or by equitable principles relating to enforceability.

 

Section 4.07       
Historical Financial Statements. The Historical Financial Statements were prepared in conformity with GAAP and fairly
present, in all material respects, the financial position, on a consolidated basis, of the Business (as defined in the Closing
Date Acquisition Agreement) described in such financial statements as at the respective dates thereof and the results of operations
and cash flows, on a consolidated basis, of the Business (as defined in the Closing Date Acquisition Agreement) described therein
for each of the periods then ended, subject, in the case of any such unaudited financial statements, to changes resulting from
audit and normal year-end adjustments. As of the Closing Date, neither the Borrower nor any of its Subsidiaries has any unusual
forward or long term commitment that is not reflected in the Historical Financial Statements or the notes thereto and which in
any such case is material in relation to the business, operations, properties, assets, or condition (financial or otherwise) of
Holdings, the Borrower and its Subsidiaries taken as a whole.

 

Section 4.08       
Projections. On and as of the Closing Date, the projections of the Borrower and its Subsidiaries for the period of
Fiscal Year 2020 through and including Fiscal Year 2023, including quarterly projections for each quarter not yet completed during
the Fiscal Year in which the Closing Date takes place (the “Projections”), are based on good faith estimates
and assumptions made by the management of Holdings; provided, that the Projections are not to be viewed as facts and that
actual results during the period or periods covered by the Projections may differ from such Projections and that the differences
may be material; provided further, that as of the Closing Date, management of Holdings believed that the Projections were
reasonable and attainable. Such Projections, as so updated, shall be believed by Holdings at the time furnished to be reasonable,
shall have been prepared on a reasonable basis and in good faith by Holdings, and shall have been based on assumptions believed
by Holdings to be reasonable at the time made, and Holdings shall not be aware of any facts or information that would lead it to
believe that such projections, as so updated, are not attainable in any material respect.

 

Section 4.09       
No Material Adverse Effect. Since the Closing Date, no event, circumstance, or change has occurred that has caused
or evidences, either in any case or in the aggregate, a Material Adverse Effect.

 

    	 	- 81 -	 

     

    

 

Section 4.10       
Adverse Proceedings, etc.. There are no Adverse Proceedings, individually or in the aggregate, that (a) relate
to any Loan Document or the transactions contemplated hereby or thereby or (b) could reasonably be expected to have a Material
Adverse Effect. Neither Holdings nor any of its Subsidiaries (y) is in violation of any applicable laws that, individually
or in the aggregate, could reasonably be expected to have a Material Adverse Effect or (z) is subject to, or in default with
respect to, any final judgments, writs, injunctions, decrees, rules, or regulations of any court or any federal, state, municipal,
or other governmental department, commission, board, bureau, agency, or instrumentality, domestic or foreign, that, individually
or in the aggregate, could reasonably be expected to have a Material Adverse Effect.

 

Section 4.11       
Payment of Taxes. Except as otherwise permitted under Section 5.03, all income and other material tax returns
and reports of Holdings, the Borrower and its Subsidiaries required to be filed by any of them have been timely filed, and all
material taxes shown as due and payable on such tax returns have been paid when due and payable. Holdings knows of no proposed
tax assessment against Holdings or any of its Subsidiaries with respect to a material amount of tax which is not being actively
contested by Holdings or such Subsidiary in good faith and by appropriate proceedings; provided, that such reserves or other
appropriate provisions, if any, as shall be required in conformity with GAAP shall have been made or provided therefor.

 

Section 4.12       
Properties.

 

(a)              
Title. Each of Holdings, the Borrower and its Subsidiaries has (i) good, marketable and legal title to (in the
case of fee interests in real property), (ii) valid leasehold interests in (in the case of leasehold interests in real or
personal property), and (iii) good and valid title to (in the case of all other personal property), all of its respective
properties and assets reflected in the most recent financial statements delivered pursuant to Section 5.01, in each case
except for assets disposed of since the date of such financial statements in the ordinary course of business or as otherwise permitted
under Section 6.09 and except where failure to have such good and legal title or valid leasehold interests could not reasonably
be expected, individually or in the aggregate, to result in a Material Adverse Effect. All such properties and assets are in working
order and condition, ordinary wear and tear excepted, and except as permitted by this Agreement, all such properties and assets
are free and clear of Liens.

 

(b)              
Real Estate. As of the Closing Date, Schedule 4.12 contains a true, accurate, and complete list of all
Material Real Estate Assets. Except as could not, either individually or in the aggregate, reasonably be expected to result in
a Material Adverse Effect, each lease or sublease to which any Loan Party is a party is in full force and effect, and Holdings
does not have knowledge of any default that has occurred and is continuing thereunder, and each such agreement constitutes the
legally valid and binding obligation of each applicable Loan Party, enforceable against such Loan Party in accordance with its
terms, except as enforcement may be limited by bankruptcy, insolvency, reorganization, moratorium, or similar laws relating to
or limiting creditors’ rights generally or by equitable principles. Except as could not, either individually or in the aggregate,
reasonably be expected to result in a Material Adverse Effect, to the knowledge of each Loan Party, (i) no other party to any such
agreement is in default of its obligations thereunder, (ii) no Loan Party (or any other party to any such agreement) has at any
time delivered or received any notice of default which remains uncured under any such lease, and (iii) as of the Closing Date,
no event has occurred which, with the giving of notice or the passage of time or both, would constitute a default under any such
agreement.

 

    	 	- 82 -	 

     

    

 

Section 4.13       
Environmental Matters. As of the Closing Date, except as set forth on Schedule 4.13, (a) to Borrower’s
knowledge, no Loan Party’s nor any of its Subsidiaries’ properties or assets has ever been used by a Loan Party, its
Subsidiaries, or by previous owners or operators in the disposal of, or to produce, store, handle, treat, release, or transport,
any Hazardous Materials, where such disposal, production, storage, handling, treatment, release, or transport was in violation
of any applicable Environmental Law, except such non-compliance that, individually or in the aggregate, could not reasonably be
expected to result in a Material Adverse Effect, (b) to Borrower’s knowledge, no Loan Party’s nor any of its Subsidiaries’
properties or assets has ever been designated or identified in any manner pursuant to any environmental protection statute as a
Hazardous Materials disposal site, (c) no Loan Party nor any of its Subsidiaries has received notice that a Lien arising under
any Environmental Law has attached to any revenues or to any Real Property owned or operated by a Loan Party or its Subsidiaries,
and (d) no Loan Party nor any of its Subsidiaries nor any of their respective facilities or operations is subject to any outstanding
written order, consent decree, or settlement agreement with any Person relating to any Environmental Law or Environmental Liability
that, individually or in the aggregate, could reasonably be expected to result in a Material Adverse Effect.

 

Section 4.14       
Eligible Credit Card Receivables. As to each Account that is identified by Borrower as an Eligible Credit Card Receivable
in a Borrowing Base Certificate submitted to Administrative Agent, such Account is (a) a bona fide existing payment obligation
of the applicable Account Debtor created by the sale and delivery of Inventory or the rendition of services to such Account Debtor
in the ordinary course of business of Borrower and the Guarantor Subsidiaries, (b) owed to Borrower or a Guarantor Subsidiary without
any known defenses, disputes, offsets, counterclaims, or rights of return or cancellation, and (c) not excluded as ineligible by
virtue of one or more of the excluding criteria (other than any Agent-discretionary criteria) set forth in the definition of Eligible
Credit Card Receivables.

 

Section 4.15       
Eligible Inventory. As to each item of Inventory that is identified by Borrower as Eligible Inventory in a Borrowing
Base Certificate submitted to Administrative Agent, such Inventory is (a) of good and merchantable quality, free from known defects,
and (b) not excluded as ineligible by virtue of one or more of the excluding criteria (other than any Agent-discretionary criteria)
set forth in the definition of Eligible Inventory.

 

Section 4.16       
Governmental Regulation.

 

(a)              
Neither Holdings nor any of its Subsidiaries is subject to regulation under the Public Utility Holding Company Act of 2005,
the Federal Power Act, or the Investment Company Act of 1940 or under any other federal or state statute or regulation which may
limit its ability to incur Indebtedness or which may otherwise render all or any portion of the Obligations unenforceable.

 

(b)              
Neither Holdings nor any of its Subsidiaries is a “registered investment company” or a company “controlled”
by a “registered investment company” or a “principal underwriter” of a “registered investment company”
as such terms are defined in the Investment Company Act of 1940.

 

    	 	- 83 -	 

     

    

 

Section 4.17       
Margin Stock. Neither Holdings nor any of its Subsidiaries is engaged principally, or as one of its important activities,
in the business of extending credit for the purpose of purchasing or carrying any Margin Stock. No part of the proceeds of the
Loans made to such Loan Party will be used to purchase or carry any such Margin Stock or to extend credit to others for the purpose
of purchasing or carrying any such Margin Stock or for any purpose that violates, or is inconsistent with, the provisions of Regulation T,
U, or X of the Board of Governors of the Federal Reserve System.

 

Section 4.18       
Employee Matters. Neither Holdings nor any of its Subsidiaries is engaged in any unfair labor practice that could
reasonably be expected to have a Material Adverse Effect. There is (a) no unfair labor practice complaint pending against Holdings
or any of its Subsidiaries, or to the best knowledge of Holdings and Borrower, threatened against any of them before the National
Labor Relations Board and no grievance or arbitration proceeding arising out of or under any collective bargaining agreement that
is so pending against Holdings or any of its Subsidiaries or to the best knowledge of Holdings and Borrower, threatened against
any of them, (b) no strike or work stoppage or other labor disputes in existence or, to the knowledge of Borrower, threatened,
involving Holdings or any of its Subsidiaries, and (c) to the best knowledge of Borrower, no union representation question existing
with respect to the employees of Holdings or any of its Subsidiaries and, to the best knowledge of Holdings and Borrower, no union
organization activity that is taking place, except (with respect to any matter specified in clause (a), (b), or (c) above, either
individually or in the aggregate) such as is not reasonably likely to have a Material Adverse Effect.

 

Section 4.19       
Employee Benefit Plans. Holdings, each of its Subsidiaries, and each of their respective ERISA Affiliates are in
compliance with all applicable provisions and requirements of ERISA and the Internal Revenue Code and the regulations and published
interpretations thereunder with respect to each Employee Benefit Plan and have performed all their obligations under each Employee
Benefit Plan except, in each case, where failure to do so, individually or in the aggregate, could not be reasonably expected to
have a Material Adverse Effect. Each Employee Benefit Plan which is intended to qualify under Section 401(a) of the Internal
Revenue Code has received a favorable determination letter from the Internal Revenue Service indicating that such Employee Benefit
Plan is so qualified, and nothing has occurred subsequent to the issuance of such determination letter which would cause such Employee
Benefit Plan to lose its qualified status. No liability to the PBGC (other than required premium payments), the Internal Revenue
Service, any Employee Benefit Plan or any trust established under Title IV of ERISA has been or is expected to be incurred
by Holdings, any of its Subsidiaries, or any of their ERISA Affiliates, except, in each case, for a liability or liabilities that
could not, individually or in the aggregate, be reasonably expected to have a Material Adverse Effect. No ERISA Event has occurred
or is reasonably expected to occur. Except to the extent required under Section 4980B of the Internal Revenue Code or similar
state laws, no Employee Benefit Plan provides health or welfare benefits (through the purchase of insurance or otherwise) for any
retired or former employee of Holdings, any of its Subsidiaries, or any of their respective ERISA Affiliates. The present value
of the aggregate benefit liabilities under each Pension Plan sponsored, maintained, or contributed to by Holdings, any of its Subsidiaries,
or any of their ERISA Affiliates (determined as of the end of the most recent plan year on the basis of the actuarial assumptions
specified for funding purposes in the most recent actuarial valuation for such Pension Plan), did not exceed the aggregate current
value of the assets of such Pension Plan. As of the most recent valuation date for each Multiemployer Plan for which the actuarial
report is available, the potential liability of Holdings, its Subsidiaries, and their respective ERISA Affiliates for a complete
withdrawal from such Multiemployer Plan (within the meaning of Section 4203 of ERISA), when aggregated with such potential
liability for a complete withdrawal from all Multiemployer Plans, based on information available pursuant to Section 4221(e)
of ERISA is zero. Holdings, each of its Subsidiaries, and each of their ERISA Affiliates have complied with the requirements of
Section 515 of ERISA with respect to each Multiemployer Plan and are not in “default” (as defined in Section 4219(c)(5)
of ERISA) with respect to payments to a Multiemployer Plan.

 

    	 	- 84 -	 

     

    

 

Section 4.20       
Certain Fees. No broker’s or finder’s fee or commission will be payable with respect hereto or any of
the transactions contemplated hereby.

 

Section 4.21       
Solvency. The Loan Parties on a consolidated basis are and, upon the incurrence of any Credit Extension by Borrower
on any date on which this representation and warranty is made will be, Solvent.

 

Section 4.22       
Gift Cards, Points Programs, and Other Incentive Programs. The liabilities and obligations of the Loan Parties in
respect of (i) any point or credit based program that rewards a customer’s credit card use or spending with points or credits
that may be redeemed for goods and/or services, (ii) outstanding gift certificates and gift cards of the Loan Parties entitling
the holder thereof to use all or a portion of the certificate or gift card to pay all or a portion of the purchase price for any
Inventory, and (iii) outstanding merchandise credits of the Loan Parties, net of any dormancy reserves maintained by the Loan
Parties on their books and records in the ordinary course of business consistent with past practices, are accurately reflected
in the financial statements and the Borrowing Base Certificate most recently delivered to the Administrative Agent.

 

Section 4.23       
Compliance with Statutes, etc. Each of Holdings, the Borrower and its Subsidiaries is in compliance with (a) its
Organizational Documents and (b) all applicable statutes, regulations, and orders of, and all applicable restrictions imposed
by, all Governmental Authorities in respect of the conduct of its business and the ownership of its property (including compliance
with all applicable Environmental Laws with respect to any Real Estate Asset or governing its business and the requirements of
any permits issued under such Environmental Laws with respect to any such Real Estate Asset or the operations of Holdings or any
of its Subsidiaries), except such non-compliance that, individually or in the aggregate, could not reasonably be expected to
result in a Material Adverse Effect.

 

Section 4.24       
Intellectual Property. Holdings, the Borrower and their Subsidiaries own, or hold licenses in, all Material Intellectual
Property that is necessary to the conduct of their business as currently conducted. Attached hereto as Schedule 4.24
is a true, correct, and complete listing of all registered material trademarks, trade names, copyrights, and patents, and applications
therefor, as to which Holdings or one of its Subsidiaries is the owner; provided, that Borrower may amend Schedule 4.24
to add additional intellectual property, or to remove intellectual property in the ordinary course, so long as such amendment occurs
by written notice to Administrative Agent at the time that Holdings provides its Compliance Certificate pursuant to Section
5.01(d).

 

    	 	- 85 -	 

     

    

 

Section 4.25       
Inventory and Equipment. The Inventory and Equipment (other than vehicles or Equipment out for repair and other than
Inventory and Equipment with, in the aggregate, a de minimis value) of Holdings, the Borrower and its Subsidiaries are not stored
with a bailee, warehouseman, or similar party (other than Third Party Franchisees) and are located only at, or are in-transit between
or to, the locations identified on Schedule 4.25 (as such Schedule may be updated pursuant to Section 5.12).

 

Section 4.26       
Trademarks and Key Trademark Licenses. Holdings, the Borrower, and their Subsidiaries have the licenses to use all
trademarks owned by third parties that are necessary to the conduct of their business as currently conducted (including, without
limitation, Material Intellectual Property) (“Licensed Trademarks”). All registered trademarks and trademark
applications owned by or filed in the name of Holdings, the Borrower, or one of its Subsidiaries (“Owned Trademarks”)
are in good standing and in compliance with all formal legal requirements, and all filings, payments, and other actions required
to be made or taken to maintain such Owned Trademarks in full force and effect have been made by the applicable deadline. The goodwill
associated with all Owned Trademarks that are currently used in commerce have not been impaired. No proceeding (including any opposition
or cancellation) is pending or threatened that challenges the validity or enforceability of the Owned Trademarks. Holdings, the
Borrower, and its Subsidiaries have not granted any licenses or rights in the Owned Trademarks to any third party. Holdings, the
Borrower, and its Subsidiaries are not parties to any co-existence agreement with respect to the Owned Trademarks. Except as would
not, individually or in the aggregate, constitute a Material Adverse Effect, use of the Owned Trademarks or the Licensed Trademarks
by Holdings, the Borrower or one of their Subsidiaries does not infringe any intellectual property rights of any third party.

 

Section 4.27       
Insurance. Each of Holdings, the Borrower and its Subsidiaries keeps its property adequately insured and maintains
(a) insurance to such extent and against such risks, as is customary with companies in the same or similar businesses, (b) workmen’s
compensation insurance in the amount required by applicable law, (c) public liability insurance, which shall include product
liability insurance, in the amount customary with companies in the same or similar business against claims for personal injury
or death on properties owned, occupied, or controlled by it, and (d) such other insurance as may be required by law. Schedule 4.27
sets forth a list of all property and liability insurance maintained by each Loan Party on the Closing Date (or attaches insurance
certificates specifying such insurance).

 

Section 4.28       
Franchise Agreements.

 

(a)              
Schedule 4.28 sets forth a complete and accurate list as of the Closing Date of all Franchise Agreements to which
any Loan Party or any of their Subsidiaries is a party.

 

(b)              
Except as set forth on Schedule 4.28, as of the Closing Date, to the knowledge of the Loan Parties, none of the Franchise
Agreements contains any grant of exclusive rights to a territory designated therein which conflicts, or potentially conflicts,
with any grant of exclusive rights to a territory granted under any other Franchise Agreement. Except as set forth in Schedule
4.28, as of the Closing Date, no current franchisee under a Franchise Agreement has given written notice to a Loan Party’s
management during the six (6) month period before the Closing Date of its intention to rescind or terminate (with or without cause)
any Franchise Agreement.

 

    	 	- 86 -	 

     

    

 

(c)              
Except as could not reasonably be expected to have a Material Adverse Effect, (i) each Loan Party has prepared and maintained
each of its Franchise Disclosure Documents, in an accurate and correct manner, (ii) each Loan Party has filed all required Franchise
Disclosure Documents required by law in all states and jurisdictions requiring registration and approval prior to any offers or
sales of franchises in such states, and (iii) each Loan Party has filed all material changes, amendments, renewals thereto on a
timely and accurate basis as required under, and required by applicable Requirements of Law. Except as could not reasonably be
expected to have a Material Adverse Effect, each Loan Party’s Franchise Disclosure Documents were prepared in compliance
with applicable Franchise Laws and disclosure guidelines, and there were no misrepresentations or omissions of information in any
Franchise Disclosure Documents at the time such Loan Party was using such Franchise Disclosure Documents. Each Franchise Agreement
complies, and the offer and sale of such Franchise Agreement complied, in each case at the time such offer and sale was made, with
all Franchise Laws, except to the extent of any non-compliance therewith which could not reasonably be expected to have a Material
Adverse Effect.

 

Section 4.29       
Permits, etc. Each Loan Party has, and is in material compliance with, all permits, licenses, authorizations, approvals,
entitlements, and accreditations required for such Person lawfully to own, lease, manage, or operate, or to acquire, each business
currently owned, leased, managed, or operated, or to be acquired, by such Person, which, if not obtained, could reasonably be expected
to have a Material Adverse Effect. No condition exists or event has occurred which, in itself or with the giving of notice or lapse
of time or both, would result in the suspension, revocation, impairment, forfeiture, or non-renewal of any such permit, license,
authorization, approval, entitlement, or accreditation, and there is no claim that any thereof is not in full force and effect,
except, to the extent any such condition, event, or claim could not be reasonably expected to have a Material Adverse Effect.

 

Section 4.30       
Cash Management. Schedule 4.30 sets forth a complete and accurate list as of the Closing Date of all
deposit, checking, and other bank accounts, all securities and other accounts maintained with any broker dealer, and all other
similar accounts maintained by each Loan Party and each of and, to the extent applicable, each of Global Parent, Liberty Top Parent
and S/B Parent, together with a description thereof (i.e., the bank or broker dealer at which such deposit or other account
is maintained and the account number and the purpose thereof). Schedule 6.17 sets forth a list describing all arrangements
as of the Closing Date to which any Loan Party or any of Global Parent, Liberty Top Parent or S/B Parent is a party with respect
to the processing and/or payment to such Loan Party of the proceeds of any credit card charges and debit card charges for sales
made by such Loan Party.

 

Section 4.31       
Security Interests. The Security Agreement creates in favor of Collateral Agent, for the benefit of Secured Parties,
a legal, valid, and enforceable security interest in the Collateral secured thereby. Upon the filing of the UCC-1 financing statements
described in Section 3.01(g), and the recording of any applicable intellectual property security agreements as referred
to in the Security Agreement in the United States Patent and Trademark Office and the United States Copyright Office, if and as
applicable, and the entry into Control Agreements with respect to any Deposit Accounts, Securities Accounts and Commodities Accounts,
such security interests in and Liens on the Collateral granted thereby (with respect to the types of Collateral that can be perfected
by the filing of a financing statement or recordation of an intellectual property security agreement) shall be perfected, First
Priority security interests, and no further recordings or filings are or will be required in connection with the creation, perfection,
or enforcement of such security interests and Liens, other than (a) the filing of continuation statements in accordance with
applicable law, (b) the recording of intellectual property security agreements pursuant to the Security Agreement in the United
States Patent and Trademark Office and the United States Copyright Office, as applicable, with respect to after-acquired U.S. patent
and trademark applications and registrations and U.S. copyrights; provided, that notwithstanding anything herein to the contrary,
in no event shall any Loan Party be required to take perfection steps with respect to any motor vehicle or any other collateral
subject to a certificate of title or ownership.

 

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Section 4.32       
PATRIOT ACT. To the extent applicable, each Loan Party is in compliance, in all material respects, with the (a) Trading
with the Enemy Act, as amended, and each of the foreign assets control regulations of the United States Treasury Department (31
CFR, Subtitle B, Chapter V, as amended) and any other enabling legislation or executive order relating thereto, and (b) Uniting
and Strengthening America by Providing Appropriate Tools Required to Intercept and Obstruct Terrorism (USA Patriot Act of 2001,
as amended) (the “PATRIOT Act”).

 

Section 4.33       
OFAC/Sanctions. No Loan Party nor any of its Subsidiaries is in violation of any applicable Sanctions. No Loan Party
nor any of its Subsidiaries nor any director, officer, employee, agent, or Affiliate of such Loan Party or such Subsidiary (a) is
a Sanctioned Person or a Sanctioned Entity, (b) has any assets located in Sanctioned Entities, or (c) derives revenues
from investments in, or transactions with, Sanctioned Persons or Sanctioned Entities. Each of the Loan Parties and its Subsidiaries,
and each director, officer, employee, agent (when acting on behalf of a Loan Party or subsidiary thereof, within the scope of the
agent’s designated duties), and Affiliate of each such Loan Party and each such Subsidiary, is in compliance with the Anti-corruption
Laws in all material respects. No proceeds of any Loan made hereunder will be used to fund any operations in, finance any investments
or activities in, or make any payments to, a Sanctioned Person or a Sanctioned Entity, or otherwise be used in any manner that
would result in a violation of any applicable Sanction by any Person (including any Lender or other individual or entity participating
in any transaction).

 

Section 4.34       
Disclosure. No representation or warranty of any Loan Party contained in any Loan Document or in any other documents,
certificates, or written statements furnished to Lenders by or on behalf of Holdings or any of its Subsidiaries for use in connection
with the transactions contemplated hereby, when taken as a whole, contains any untrue statement of a material fact or omits to
state a material fact (known to Holdings or Borrower, in the case of any document not furnished by either of them) necessary in
order to make the statements contained herein or therein not misleading in light of the circumstances in which the same were made.
Any projections and pro forma financial information contained in such materials are based upon good faith estimates and assumptions
believed by Holdings or Borrower to be reasonable at the time made, it being recognized by Lenders that such projections as to
future events are not to be viewed as facts and that actual results during the period or periods covered by any such projections
may differ from the projected results and such difference may be material. There are no facts known (or which should upon the reasonable
exercise of diligence be known) to Holdings or Borrower (other than matters of a general economic nature) that, individually or
in the aggregate, could reasonably be expected to result in a Material Adverse Effect and that have not been disclosed herein or
in such other documents, certificates, and statements furnished to Lenders for use in connection with the transactions contemplated
hereby.

 

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Section 4.35       
Use of Proceeds. The proceeds of the Term Loans made on the Closing Date shall be applied by Borrower as set forth
in Section 2.05 hereof.

 

ARTICLE
V

AFFIRMATIVE COVENANTS

 

Each Loan Party covenants
and agrees that so long as any Commitment is in effect and until payment in full of all Obligations, each Loan Party (and, to the
extent applicable, each of Global Parent, Liberty Top Parent and S/B Parent) shall perform, and shall cause each of its Subsidiaries
to perform, all covenants in this Article V.

 

Section 5.01       
Financial Statements and Other Reports. Unless otherwise provided below, Borrower will deliver to Administrative
Agent:

 

(a)              
Monthly Reports. As soon as available, and in any event within 45 days after the end of each fiscal month (excluding
the last fiscal month of each Fiscal Quarter), (i) consolidated balance sheet of the Borrower and its Subsidiaries as at the
end of such fiscal month and the related consolidated statements of income, consolidated statements of stockholders’ equity,
and consolidated statements of cash flows of the Borrower and its Subsidiaries for such fiscal month and for the period from the
beginning of the then current Fiscal Year to the end of such fiscal month, setting forth in each case in comparative form the corresponding
figures for the corresponding periods of the previous Fiscal Year and the corresponding figures from the Financial Plan for the
current Fiscal Year, all in reasonable detail, together with a schedule of reconciliations for any reclassifications with respect
to prior fiscal months or periods (and, in connection therewith, copies of any restated financial statements for any impacted fiscal
month or period), (ii) a Financial Officer Certification with respect the foregoing, (iii) the information described
on Schedule 5.1 hereto under the heading “Monthly Reporting”, in form and substance reasonably acceptable to
Administrative Agent, and (iv) a Narrative Report with respect the foregoing;

 

(b)              
Quarterly Financial Statements. As soon as available, and in any event within 50 days after the end of each
Fiscal Quarter of each Fiscal Year (including the fourth Fiscal Quarter), (i) consolidated balance sheet of the Borrower and
its Subsidiaries as at the end of such Fiscal Quarter and the related consolidated statements of income, stockholders’ equity,
and cash flows of the Borrower and its Subsidiaries for such Fiscal Quarter and for the period from the beginning of the then current
Fiscal Year to the end of such Fiscal Quarter, setting forth in each case in comparative form the corresponding figures for the
corresponding periods of the previous Fiscal Year and the corresponding figures from the Financial Plan for the current Fiscal
Year, all in reasonable detail, (ii) a Financial Officer Certification with respect to the foregoing, (iii) the information
described on Schedule 5.1 hereto under the heading “Quarterly Reporting”, in form and substance reasonably acceptable
to Administrative Agent, and (iv) a Narrative Report with respect the foregoing;

 

    	 	- 89 -	 

     

    

 

(c)              
Annual Financial Statements. As soon as available, and in any event within 120 days after the end of each Fiscal
Year commencing with Fiscal Year 2019, (i) the consolidated balance sheet of the Borrower and its Subsidiaries as at the end
of such Fiscal Year and the related consolidated statements of income, stockholders’ equity, and cash flows of the Borrower
and its Subsidiaries for such Fiscal Year, prepared in conformity with GAAP, setting forth in each case in comparative form the
corresponding figures for the previous Fiscal Year and the corresponding figures from the Financial Plan for the Fiscal Year covered
by such financial statements, in reasonable detail, together with a Financial Officer Certification and a Narrative Report with
respect thereto and (ii) with respect to such consolidated financial statements a report thereon of BDO, Deloitte or other
independent certified public accountants of recognized national standing selected by Holdings, and reasonably satisfactory to Administrative
Agent (which report shall be unqualified as to going concern and contain no material qualifications as to scope of audit other
than solely with respect to, or resulting solely from (x) an upcoming maturity date of the Term Loans occurring within one year
from the time such opinion is delivered or (y) any potential inability to satisfy any covenant described in Section 6.08
on a future date or in a future period, and shall state that such consolidated financial statements fairly present, in all material
respects, the consolidated financial position of the Borrower and its Subsidiaries as at the dates indicated and the results of
their operations and their cash flows for the periods indicated in conformity with GAAP applied on a basis consistent with prior
years (except as otherwise disclosed in such financial statements) and that the examination by such accountants in connection with
such consolidated financial statements has been made in accordance with generally accepted auditing standards); provided,
that in lieu of providing the consolidated annual audited financial statements of the Borrower and its Subsidiaries required by
this clause (c) and the report thereon of the Borrower’s independent certified public accountants (but not, for the avoidance
of doubt, any of the other related materials required by this clause (c) (including, without limitation, the comparison to the
corresponding figures for the previous Fiscal Year and the corresponding figures from the Financial Plan for the Fiscal Year, the
Financial Officer Certification, or the Narrative Report)), the Borrower may provide the consolidated annual financial statements
of Holdings and its Subsidiaries, or of any direct parent of Holdings and its Subsidiaries, so long as the Borrower concurrently
provides (A) the Administrative Agent with consolidating information, which shall be audited, that explains in reasonable detail
the differences between the information relating Holdings and its Subsidiaries or such direct parent of Holdings and its Subsidiaries,
on the one hand, and the information relating to the Borrower and its Subsidiaries on a stand-alone basis, on the other hand, and
(B) a report of the independent certified public accountants of recognized national standing selected by Holdings or such direct
parent of Holdings, as applicable, and reasonably satisfactory to Administrative Agent (which report shall be unqualified to the
extent set forth in the preceding clause (ii));

 

(d)              
Compliance Certificate. Together with each delivery of financial statements of the Borrower and its Subsidiaries
(or of Holdings and its Subsidiaries, or any direct parent of Holdings and its Subsidiaries, as the case may be) pursuant to Section
5.01(b) or Section 5.01(c), a duly executed and completed Compliance Certificate;

 

    	 	- 90 -	 

     

    

 

(e)              
Statements of Reconciliation after Change in Accounting Principles. If, as a result of any change in accounting principles
and policies from those used in the preparation of the Historical Financial Statements, the consolidated financial statements of
the Borrower and its Subsidiaries delivered pursuant to Section 5.01(a), Section 5.01(b), or Section 5.01(c)
will differ in any material respect from the consolidated financial statements that would have been delivered pursuant to such
subdivisions had no such change in accounting principles and policies been made, then, together with the first delivery of such
financial statements after such change, one or more statements of reconciliation for all such prior financial statements in form
and substance reasonably satisfactory to Administrative Agent;

 

(f)               
Notice of Default. Promptly (but in any event within three (3) Business Days) upon any officer of Holdings or Borrower
obtaining knowledge (i) of any condition or event that constitutes a Default or an Event of Default or that notice (from a
Person other than the Administrative Agent) has been given to Holdings or Borrower with respect thereto, (ii) that any Person has
given any notice to Holdings or any of its Subsidiaries or taken any other action with respect to any event or condition set forth
in Section 8.01(b), or (iii) of the occurrence of any event or change that has caused or evidences, either in any case or
in the aggregate, a Material Adverse Effect, a certificate of an Authorized Officer specifying the nature and period of existence
of such condition, event, or change, or specifying the notice given and action taken by any such Person (if applicable) and the
nature of such claimed Event of Default, Default, default, event or condition, and what action Borrower has taken, is taking, and
proposes to take with respect thereto, together with copies of any such notice or other document received by Holdings or any of
its Subsidiaries related thereto;

 

(g)              
Notice of Litigation. Promptly (but in any event within three (3) Business Days) upon any senior officer of Holdings
or Borrower obtaining knowledge of (i) the institution of, or non-frivolous threat (in writing) of, any Adverse Proceeding
not previously disclosed in writing by Borrower to Lenders, or (ii) any material development in any Adverse Proceeding that,
in the case of either clause (i) or (ii) if adversely determined, could be reasonably expected to have
a Material Adverse Effect, or seeks to enjoin or otherwise prevent the consummation of, or to recover any damages or obtain relief
as a result of, the transactions contemplated hereby, written notice thereof together with such other information as may be reasonably
available to Holdings or Borrower to enable Lenders and their counsel to evaluate such matters;

 

(h)              
ERISA. (i) Promptly (but in any event within three (3) Business Days) upon becoming aware of the occurrence
of or forthcoming occurrence of any ERISA Event, a written notice specifying the nature thereof, what action Holdings, any of its
Subsidiaries, or any of their respective ERISA Affiliates has taken, is taking, or proposes to take with respect thereto and, when
known, any action taken or threatened, in writing, by the Internal Revenue Service, the Department of Labor, or the PBGC with respect
thereto, and (ii) with reasonable promptness, copies of (A) each Schedule B (Actuarial Information) to the annual
report (Form 5500 Series) filed by Holdings, any of its Subsidiaries, or any of their respective ERISA Affiliates with the
Internal Revenue Service with respect to each Pension Plan, (B) all notices received by Holdings, any of its Subsidiaries,
or any of their respective ERISA Affiliates from a Multiemployer Plan sponsor concerning an ERISA Event, and (C) copies of
such other documents or governmental reports or filings relating to any Employee Benefit Plan as Administrative Agent shall reasonably
request;

 

    	 	- 91 -	 

     

    

 

(i)                
Financial Plan. As soon as practicable and in any event no later than thirty days prior to the beginning of
each Fiscal Year, a consolidated plan and financial forecast for such Fiscal Year and each Fiscal Year (or portion thereof) through
the final maturity date of the Loans (a “Financial Plan”), including (i) a forecasted consolidated balance
sheet and forecasted consolidated statements of income and cash flows of the Borrower and its Subsidiaries for each such Fiscal
Year, (ii) forecasted consolidated statements of income and cash flows of the Borrower and its Subsidiaries for each fiscal
month of each such Fiscal Year, (iii) forecasted calculations of the ratios described in Section 6.08 for such Fiscal Year,
(iv) forecasted calculations of liquidity for such Fiscal Year, together, in each case, with an explanation of the assumptions
on which such forecasts are based all in form and substance reasonably satisfactory to Administrative Agent, and (v) a forecast
of Consolidated Fixed Chagres, both in the aggregate and of each component item thereof;

 

(j)                
Insurance Report.Upon request of the Administrative Agent or any Lender, a report in form and substance reasonably
satisfactory to Administrative Agent outlining all material insurance coverage maintained as of the date of such report by Holdings,
the Borrower and its Subsidiaries;

 

(k)              
Borrowing Base Certificates and Collateral Reporting. On or prior to the tenth (10th) Business Day of
each fiscal month, (i) a completed Borrowing Base Certificate as of the last day of the immediately preceding fiscal month, (ii)
a summary source document of stock ledger, (iii) a summary source document of inventory ineligibles, (iv) a summary source document
showing Credit Card Receivables, (v) a summary source document showing Credit Card Receivables ineligibles, (vi) a monthly store
rent summary in respect of Washington, Virginia and Pennsylvania, (vii) a report identifying customer deposits and (viii) a report
with franchisee commission payable accruals;

 

(l)                
Third Party Franchisees. Promptly upon any senior officer of Holdings or Borrower obtaining knowledge of any material
breach or non-performance of, or any material default under, any agreements with any Third Party Franchisee that would materially
and adversely impact the Borrowing Base or materially and adversely impact the ability of Agents to realize upon the Collateral;

 

(m)            
Environmental Reports and Audits. Within ten (10) days following the receipt thereof, copies of all environmental
audits and reports with respect to any environmental matter which have resulted in or are reasonably likely to result in an Environmental
Claim asserted against any Loan Party or in any Environmental Liabilities of any Loan Party which, in either case, could reasonably
be expected to result in a Material Adverse Effect;

 

(n)              
Information Regarding Collateral. Borrower (or to the extent applicable, each of Global Parent, Liberty Top Parent
and S/B Parent) will furnish to Collateral Agent prior written notice of any change in any Loan Party’s or any of Global
Parent’s, Liberty Top Parent’s or S/B Parent’s (i) corporate name, (ii) chief executive office, (iii) identity
or corporate structure, or (iv)  Federal Taxpayer Identification Number. Borrower (and, to the extent applicable, each of
Global Parent, Liberty Top Parent and S/B Parent) agrees not to effect or permit any change referred to in the preceding sentence
unless all filings have been made under the UCC or otherwise that are required in order for Collateral Agent to continue at all
times following such change to have a valid, legal, and perfected security interest in all the Collateral as contemplated by the
Collateral Documents. Borrower also agrees promptly to notify Collateral Agent if any material portion of the Collateral is damaged
or destroyed;

 

    	 	- 92 -	 

     

    

 

(o)              
Annual Collateral Verification. Each year, at the time of delivery of annual financial statements with respect to
the preceding Fiscal Year pursuant to Section 5.01(c), Borrower shall deliver to Collateral Agent an officer’s certificate either
confirming that there has been no change in such information since the date of the Perfection Certificate delivered on the Closing
Date or the date of the most recent certificate delivered pursuant to this Section 5.01 and/or identifying such changes;

 

(p)              
Tax Returns. As soon as practicable and in any event within fifteen (15) days following the filing thereof, copies
of each United States federal income tax return filed by or on behalf of any Loan Party; and

 

(q)              
Other Information. (i) Promptly upon their becoming available, copies of (A) all financial statements,
reports, notices, and proxy statements sent or made available generally by Holdings to its security holders acting in such capacity
or by any Subsidiary of Holdings to its security holders other than Holdings or another Subsidiary of Holdings, and (B) all
regular and periodic reports and all registration statements and prospectuses, if any, filed by Holdings or any of its Subsidiaries
with any securities exchange or with the Securities and Exchange Commission or any governmental or private regulatory authority,
(ii) promptly after submission to any Governmental Authority, solely to the extent not legally prohibited from disclosing
such information, all documents and information furnished to such Governmental Authority in connection with any investigation of
any Loan Party (other than a routine inquiry), (iii) promptly upon receipt thereof, copies of all financial reports (including,
without limitation, management letters) submitted to any Loan Party by its auditors in connection with any annual interim audit
of the books thereof, (iv) prompt notice of the acquisition by any Loan Party or any of their respective Subsidiaries of any
Margin Stock, together with a completed and executed Form U-1, together with such other information reasonably requested by
Administrative Agent to enable any Lender to comply with any of the requirements under Regulations T, U, and X, and (v) such
other information and data with respect to Borrower or any of its Subsidiaries as from time to time may be reasonably requested
by any Agent.

 

Section 5.02       
Existence. Except as otherwise permitted under Section 6.09, each Loan Party will, and will cause each of
its Subsidiaries to, at all times preserve and keep in full force and effect its existence, and all rights, Governmental Authorizations,
qualifications, franchises, licenses, and permits material to its business and to the conduct of its business in each material
jurisdiction in which its business is conducted; provided, that no Loan Party or any of its Subsidiaries shall be required
to preserve any such existence, rights, Governmental Authorizations, qualifications, franchise, licenses, and permits if such Person’s
Board (or similar governing body) shall determine that the preservation thereof is no longer desirable in the conduct of the business
of such Person, and that the loss thereof is not disadvantageous in any material respect to such Person or to Lenders.

 

    	 	- 93 -	 

     

    

 

Section 5.03       
Payment of Taxes and Claims. Each Loan Party will, and will cause each of its Subsidiaries to, timely file all income
tax returns and all other material tax returns required to be filed by Holdings or any of its Subsidiaries and timely pay all income
Taxes and all other material Taxes imposed upon it or any of its properties or assets, or in respect of any of its income or businesses;
provided, that no such Tax need be paid if it is being contested in good faith by appropriate proceedings promptly instituted
and diligently conducted, so long as (a) adequate reserve or other appropriate provision, as shall be required in conformity
with GAAP, shall have been made therefor and (b) in the case of a Tax which has or may become a Lien against any of the Collateral,
such contest proceedings conclusively operate to stay imposition of any penalty, fine, or Lien resulting from the non-payment thereof.
No Loan Party will, nor will it permit any of its Subsidiaries to, file or consent to the filing of any consolidated income tax
return with any Person (other than Liberty or any of its Subsidiaries).

 

Section 5.04       
Maintenance of Properties. Each Loan Party will, and will cause each of its Subsidiaries to, except as could not,
either individually or in the aggregate, reasonably be expected to result in a Material Adverse Effect, (a) maintain or cause to
be maintained in reasonably good repair, working order and condition, ordinary wear and tear, casualty and condemnation excepted,
all properties used or useful in the business of Holdings, the Borrower and its Subsidiaries and from time to time will make or
cause to be made all reasonably appropriate repairs, renewals, and replacements thereof and (b) comply at all times with the provisions
of all material leases to which it is a party as lessee or under which it occupies property, so as to prevent any loss or forfeiture
thereof or thereunder.

 

Section 5.05       
Insurance.

 

(a)              
The Loan Parties will maintain or cause to be maintained, with financially sound and reputable insurers, (i) business
interruption insurance reasonably satisfactory to Administrative Agent, and (ii) casualty insurance, such public liability
insurance, third party property damage insurance, or such other insurance with respect to liabilities, losses, or damage in respect
of the assets, properties, and businesses of the Loan Parties as may customarily be carried or maintained under similar circumstances
by Persons of established reputation engaged in similar businesses, in each case in such amounts (giving effect to self-insurance),
with such deductibles, covering such risks, and otherwise on such terms and conditions as shall be customary for such Persons.
Without limiting the generality of the foregoing, the Loan Parties will maintain or cause to be maintained (A) flood insurance
with respect to each Flood Hazard Property that is located in a community that participates in the National Flood Insurance Program,
in each case in compliance with any applicable regulations of the Board of Governors of the Federal Reserve System and (B) replacement
value casualty insurance on the Collateral under such policies of insurance, with such insurance companies, in such amounts, with
such deductibles, and covering such risks as are at all times carried or maintained under similar circumstances by Persons of established
reputation engaged in similar businesses. Each such policy of insurance shall (1) in the case of each liability insurance
policy, name Collateral Agent, on behalf of Lenders, as an additional insured thereunder as its interests may appear, and (2) in
the case of each casualty insurance policy covering Collateral, contain a loss payable clause or endorsement, reasonably satisfactory
in form and substance to Collateral Agent, that names Collateral Agent, on behalf of Secured Parties, as the loss payee thereunder.

 

    	 	- 94 -	 

     

    

 

(b)              
The Loan Parties will deliver to Administrative Agent copies of certificates of insurance upon request of the Administrative
Agent. Each of the insurance policies required to be maintained under this Section 5.05 shall provide for at least thirty
(30) days’ prior written notice to Collateral Agent of the cancellation or substantial modification thereof. Receipt
of such notice shall entitle Collateral Agent (but Collateral Agent shall not be obligated) to renew any such policies, cause
the coverages and amounts thereof to be maintained at levels required pursuant to this Section 5.05, or otherwise to obtain
similar insurance in place of such policies, in each case at the expense of the Loan Parties.

 

Section 5.06       
Inspections; Field Examinations and Appraisals. Each Loan Party will, and will cause each of its Subsidiaries to,
(a) keep adequate books of record and account in which full, true, and correct entries are made of all dealings and transactions
in relation to its business and activities and (b) permit any representatives designated by Administrative Agent or any Lender
(including employees of Administrative Agent or such Lender or any consultants, auditors, accountants, lawyers, and appraisers
retained by Administrative Agent or such Lender) to visit and inspect any of the properties of any Loan Party and any of its respective
Subsidiaries (including Phase I Environmental Site Assessments), to conduct audits, valuations, appraisals, and/or field examinations
of any Loan Party and any of its respective Subsidiaries, to inspect, copy, and take extracts from its and their financial and
accounting records, and to discuss its and their affairs, finances, and accounts with its and their officers and independent accountants
and auditors, all upon reasonable notice and at such reasonable times during normal business hours and as often as may reasonably
be requested. The Loan Parties agree to pay (y) the field examiner’s and the appraiser’s reasonable and documented
fees and out-of-pocket costs and expenses incurred in connection with all such visits, audits, appraisals, inspections, valuations,
and field examinations, and (z) the reasonable and documented out-of-pocket costs of all visits, audits, appraisals, inspections,
valuations, and field examinations conducted by a third party on behalf of the Agents and Lenders. Notwithstanding anything to
the contrary in this Section 5.06, excluding any such visits, appraisals, field examinations, and inspections during the
continuation of an Event of Default, (x) only Administrative Agent on behalf of the Lenders may exercise the rights of Administrative
Agent and the Lenders under this Section 5.06 and, subject to clause (y) hereof, Administrative Agent shall not exercise
its rights under clause (b) hereof more often than two (2) times during any calendar year and only one (1) such time shall be at
the Loan Parties’ expense and (y) Administrative Agent (or an appraiser or field examiner, in each case, selected by Administrative
Agent in its Permitted Discretion) may conduct two (2) field examinations and two (2) appraisals of the Collateral, in each case,
during any calendar year at the Loan Parties’ expense; provided, that when an Event of Default exists, Administrative Agent
or any Lender (or any of their respective representatives or independent contractors) may undertake any of the actions described
in this Section 5.06 at the expense of the Loan Parties at any time during normal business hours and upon reasonable advance
notice, without limitation as to frequency. The Loan Parties acknowledge that Administrative Agent or any Lender, after exercising
its rights of inspection, may prepare and distribute to Lenders certain reports pertaining to the Loan Parties’ assets for
internal use by Administrative Agent and Lenders.

 

Section 5.07       
Lenders Meetings and Conference Calls.

 

    	 	- 95 -	 

     

    

 

(a)              
Holdings and Borrower will, upon the request of Administrative Agent or Required Lenders, participate in a meeting of Administrative
Agent and Lenders once during each Fiscal Year to be held at Borrower’s corporate offices (or at such other location as may
be agreed to by Borrower and Administrative Agent) at such time as may be agreed to by Borrower and Administrative Agent.

 

(b)              
Following the delivery of financial statements and other information required to be delivered pursuant to Section 5.01(b)
or Section 5.01(c), Holdings shall, not later than 15 Business Days following the request of Administrative Agent,
cause its chief operating officer or chief financial officer to participate in a conference call with Administrative Agent and
all Lenders who
choose to participate in such conference call during which conference call the chief operating officer or
chief financial officer shall review the financial condition of the Borrower and
its Subsidiaries and such other matters as Administrative Agent or
any Lender may reasonably request.

 

Section 5.08       
Compliance with Laws. Each Loan Party will comply, and shall cause each of its Subsidiaries to comply, with the requirements
of all applicable laws, rules, regulations, and orders of any Governmental Authority, non-compliance with which could reasonably
be expected to have, individually or in the aggregate, a Material Adverse Effect, including, without limitation, Anti-corruption
Laws, the PATRIOT Act, and OFAC Sanctions Programs.

 

Section 5.09       
Environmental. Each Loan Party will, and will cause each of its Subsidiaries to,

 

(a)              
Keep any property either owned or operated by any Loan Party or its Subsidiaries free of any Environmental Liens or post
bonds or other financial assurances sufficient to satisfy the obligations or liability evidenced by such Environmental Liens,

 

(b)              
Comply, in all material respects, with Environmental Laws and provide to Administrative Agent documentation of such compliance
which Administrative Agent reasonably requests, except such non-compliance that, individually or in the aggregate, could not
reasonably be expected to result in a Material Adverse Effect,

 

(c)              
Promptly notify Administrative Agent of any release of which any Loan Party has knowledge of a Hazardous Material in any
reportable quantity from or onto property owned or operated by any Loan Party or its Subsidiaries which could reasonably be expected
to result in a Material Adverse Effect, and take any Remedial Actions required to abate said release or otherwise to come into
compliance with applicable Environmental Law, and

 

(d)              
Promptly, but in any event within ten (10) Business Days of its receipt thereof, provide Administrative Agent with written
notice of any of the following: (i) notice that an Environmental Lien has been filed against any of the real or personal property
of a Loan Party or its Subsidiaries, (ii) commencement of any Environmental Action or written notice that an Environmental
Action will be filed against a Loan Party or its Subsidiaries, in either case, that could reasonably be expected to result in a
Material Adverse Effect and (iii) written notice of a violation, citation, or other administrative order from a Governmental
Authority that could reasonably be expected to result in a Material Adverse Effect.

 

    	 	- 96 -	 

     

    

 

Section 5.10       
Subsidiaries.In the event that (A) any Person becomes a Subsidiary of Holdings after the Closing Date (other
than any Subsidiary of Holdings that is incorporated or organized in a jurisdiction other than the United States or any State thereof)
or (B) the Collateral Coverage Test is not satisfied with respect to one or more jurisdictions as of the date of any financial
statements delivered pursuant to Section 5.01(b) or 5.01(c), Holdings and the Borrower shall (i) within 45 days
(or 90 days with respect to any Subsidiary for which the execution of any mortgages relative to Real Property is required to comply
with this Section 5.10 with respect to such Subsidiary) after the date when such Person becomes a Subsidiary (in the case of the
foregoing clause (A)) or the date such financial statements were delivered (in the case of the foregoing clause (B)) (in each case,
or such later date as may be agreed by the Administrative Agent), cause such Subsidiary (in the case of the foregoing clause (A))
or all Subsidiaries incorporated or organized in the jurisdiction or jurisdictions as to which the Collateral Coverage Test was
not satisfied (in the case of the foregoing clause (B)) to become a Guarantor Subsidiary hereunder by executing a joinder to this
Agreement (provided that no Excluded Subsidiary shall be required to become a Guarantor Subsidiary hereunder for so long
as such Subsidiary remains an Excluded Subsidiary) and (a) if such Subsidiary is incorporated or organized under the laws of the
United States or any State thereof, cause such Subsidiary to be a Grantor under the Security Agreement by executing and delivering
to the Administrative Agent a Joinder (provided that no Excluded Subsidiary shall be required to become a Grantor under
the Security Agreement for so long as such Subsidiary remains an Excluded Subsidiary), (b) if such Subsidiary is incorporated or
organized under the laws of a jurisdiction other than the United States or any State thereof, (1) cause any Loan Party that directly
owns the Capital Stock of such Subsidiary to grant to the Collateral Agent a legal, valid, enforceable perfected, First Priority
security interest in such Capital Stock of such Subsidiary pursuant to documentation in form and substance reasonably acceptable
to Administrative Agent and (2) cause such Subsidiary to grant to the Collateral Agent a legal, valid, enforceable perfected, First
Priority security interest in all Collateral owned by it pursuant to documentation in form and substance reasonably acceptable
to Administrative Agent (provided that no Excluded Subsidiary shall be required to grant such a security interest for so
long as such Subsidiary remains an Excluded Subsidiary) and (ii) take all such actions and execute and deliver, or cause to
be executed and delivered, all such documents, instruments, agreements, and certificates as are reasonably requested by Administrative
Agent in connection therewith; provided, however, that notwithstanding the foregoing, in no event shall the foregoing
require (x) any Person to enter into any security agreement or pledge governed by the laws of any jurisdiction other than the United
States or any State thereof or (y) any filing or other action in any jurisdiction other than the United States or any State thereof
in order to create or perfect a security interest, in the case of the foregoing clauses (x) and (y), unless (1) the total property
and assets of the Subsidiaries incorporated or organized in such jurisdiction, determined in accordance with GAAP, exceeds 7.5%
of the total property and assets of Borrower and its Subsidiaries, determined in accordance with GAAP, as set forth on the consolidated
balance sheet of Borrower most recently delivered pursuant to Section 5.01(b) or 5.01(c), as applicable or (2) the
consolidated revenue of the Subsidiaries incorporated or organized in such jurisdiction exceeds 7.5% of the consolidated revenue
of Borrower and its Subsidiaries, determined in accordance with GAAP, as set forth on the consolidated balance sheet of Borrower
most recently delivered pursuant to Section 5.01(b) or 5.01(c), as applicable (the foregoing clauses (1) and (2),
the “Collateral Coverage Test”; the Collateral Coverage Test is deemed to be “satisfied” with respect
to all Subsidiaries organized or incorporated under the laws of any particular jurisdiction (other than the United States or any
State thereof) if such Subsidiaries, collectively, do not satisfy clauses (1) and/or (2) of the definition of “Collateral
Coverage Test”, and is otherwise deemed to be “not satisfied” with respect to such Subsidiaries). With respect
to each such Subsidiary, Borrower shall, within 45 days (or 90 days with respect to any Subsidiary for which the execution of any
mortgages relative to Real Property is required to comply with this Section 5.10 with respect to such Subsidiary) after the date
when such Person becomes a Subsidiary, promptly send to Administrative Agent written notice setting forth with respect to such
Person (A) the date on which such Person became a Subsidiary of Borrower, and (B) all of the data required to be set
forth in Schedules 4.1 and 4.2 with respect to all Subsidiaries of Borrower; provided, that such written
notice shall be deemed to supplement Schedules 4.1 and 4.2 for all purposes hereof.

 

    	 	- 97 -	 

     

    

 

Section 5.11       
Additional Material Real Estate Assets. In the event that any Loan Party acquires a Material Real Estate Asset located
in the United States or a Real Estate Asset owned on the Closing Date and located in the United States becomes a Material Real
Estate Asset and such interest has not otherwise been made subject to the Lien of the Collateral Documents in favor of Collateral
Agent, for the benefit of Secured Parties, then such Loan Party, no later than 90 days after acquiring such Material Real Estate
Asset, or no later than 90 days after a Real Estate Asset owned on the Closing Date becomes a Material Real Estate Asset (in each
case, or such later date as may be agreed by the Collateral Agent), shall take all such actions and execute and deliver, or cause
to be executed and delivered, with respect to such Material Real Estate Asset, (i) a Mortgage, (ii) an opinion of counsel in the
jurisdiction where such Material Real Estate Asset is located with respect to the enforceability of such Mortgage and such other
reasonable and customary matters as the Collateral Agent may reasonably request, and (iii) a mortgagee policy of title insurance
(or a marked up title insurance commitment having the effect of a mortgagee policy of title insurance) issued by a title company
reasonably satisfactory to Collateral Agent, in an amount not less than the fair market value of such Material Real Estate Asset,
insuring the Lien of such Mortgage as a valid First Priority security interest on such Material Real Estate Asset. In addition
to the foregoing, Borrower shall, at the request of Required Lenders, deliver, from time to time, to Collateral Agent such appraisals
as are required by law or regulation of Real Estate Assets with respect to which Collateral Agent has been granted a Lien; provided,
however, that in no event shall Borrower be required to deliver an appraisal to Collateral Agent for a particular Material Real
Estate Asset more than once in any given calendar year. Notwithstanding anything to the contrary set forth in this Agreement or
in any other Loan Document, in no event shall any Loan Party be required to deliver a Mortgage with respect to any Real Estate
Asset that is not a Material Real Estate Asset.

 

Section 5.12       
Location of Inventory and Equipment. Keep each of Holdings’ and its Subsidiaries’ Inventory and Equipment
(other than vehicles and Equipment out for repair, and other than Inventory and Equipment with, in the aggregate, a de minimis
value) only at the locations identified on Schedule 4.25; provided, that Borrower may amend Schedule 4.25
so long as such amendment occurs by written notice to Collateral Agent not less than 10 days prior to the date on which such
Inventory or Equipment is moved to such new location or such chief executive office is relocated and so long as such new location
is within the United States; provided that, within 120 days of the Closing Date (or, as to any properties added to Schedule
4.25 after the Closing Date, within 120 days of the delivery of the amended Schedule 4.25 including such property) (or,
in each case, such later date to which the Administrative Agent may otherwise agree) Borrower shall use its commercially reasonable
efforts to provide to Collateral Agent a Collateral Access Agreement with respect to any such location identified on Schedule
4.25 that is not a fee owned Real Estate Asset if the aggregate fair market value of the Inventory and Equipment located on
such premises exceeds $100,000; provided that, following the occurrence and during the continuance of a Default or an Event
of Default, no Inventory or Equipment shall be moved to any location not identified on the most recently provided Schedule 4.25
unless such Collateral Access Agreement is provided prior thereto or the Administrative Agent shall consent in writing to moving
specified Inventory or Equipment to a particular location or locations identified on Section 4.25.

 

    	 	- 98 -	 

     

    

 

Section 5.13       
Further Assurances. At any time or from time to time upon the request of any Agent, each Loan Party will, at its
expense, promptly execute, acknowledge, and deliver such further documents and do such other acts and things as such Agent may
reasonably request in order to effect fully the purposes of the Loan Documents, including providing Lenders with any information
reasonably requested pursuant to Section 10.22. In furtherance and not in limitation of the foregoing, each Loan Party shall
take such actions as any Agent may reasonably request from time to time to ensure that, subject in each case to Section 5.10,
the Obligations are guaranteed by the Guarantors and are secured by substantially all of the assets of Holdings, the Borrower and
its Subsidiaries and all of the outstanding Capital Stock of Borrower and its Subsidiaries.

 

Section 5.14       
[Reserved].

 

Section 5.15       
[Reserved].

 

Section 5.16       
Post-Closing Matters. Borrower shall, and shall cause each of the Loan Parties to, satisfy the requirements set forth
on Schedule 5.16 on or before the date specified for such requirement or such later date to be determined by Administrative
Agent in its sole discretion.

 

Section 5.17       
Use of Proceeds. Borrower shall apply the proceeds of the Term Loans as set forth in Section 2.05 hereof.

 

Section 5.18       
Franchise Agreements. Each Loan Party shall, and shall cause each of its subsidiaries to, satisfy and perform in
all material respects all obligations of each such Person under each Franchise Agreement, except such non-compliance that,
individually or in the aggregate, could not reasonably be expected to result in a Material Adverse Effect.

 

ARTICLE
VI

NEGATIVE COVENANTS

 

Each Loan Party covenants
and agrees that, so long as any Commitment is in effect and until payment in full of all Obligations, such Loan Party (and, to
the extent applicable, each of Global Parent, Liberty Top Parent and S/B Parent) shall perform, and shall cause each of its Subsidiaries
to perform, all covenants in this Article VI.

 

    	 	- 99 -	 

     

    

 

Section 6.01       
Indebtedness. No Loan Party shall, nor shall it permit any of its Subsidiaries to, directly or indirectly, create,
incur, assume, or guarantee, or otherwise become or remain directly or indirectly liable with respect to any Indebtedness, except
Permitted Indebtedness.

 

Section 6.02       
Liens. No Loan Party shall, nor shall it permit any of its Subsidiaries to, directly or indirectly, create, incur,
assume, or permit to exist any Lien on or with respect to any property or asset of any kind (including any document or instrument
in respect of goods or accounts receivable) of Holdings or any of its Subsidiaries, whether now owned or hereafter acquired, or
any income or profits therefrom, or file or permit the filing of, or permit to remain in effect, any financing statement or other
similar notice of any Lien with respect to any such property, asset, income, or profits under the UCC of any State or under any
similar recording or notice statute, except Permitted Liens.

 

Section 6.03       
Equitable Lien. If any Loan Party or any of its Subsidiaries shall create or assume any Lien upon any of its properties
or assets, whether now owned or hereafter acquired, other than Permitted Liens, it shall make or cause to be made effective provisions
whereby the Obligations will be secured by such Lien equally and ratably with any and all other Indebtedness secured thereby as
long as any such Indebtedness shall be so secured; provided, notwithstanding the foregoing, this covenant shall not be construed
as a consent by Required Lenders to the creation or assumption of any such Lien not otherwise permitted hereby.

 

Section 6.04       
No Further Negative Pledges. Except with respect to (a) specific property encumbered to secure payment of particular
Indebtedness or to be sold pursuant to an executed agreement with respect to an Asset Sale permitted under Section 6.09,
(b) restrictions by reason of customary provisions restricting assignments, subletting, or other transfers contained in leases,
licenses, and similar agreements entered into in the ordinary course of business (provided that such restrictions are limited to
the property or assets secured by such Liens or the property or assets subject to such leases, licenses, or similar agreements,
as the case may be), (c) any covenants contained in this Agreement or in any other Loan Documents, and (d) restrictions imposed
by law, no Loan Party nor any of its Subsidiaries shall enter into any agreement prohibiting the creation or assumption of any
Lien upon any of its properties or assets, whether now owned or hereafter acquired.

 

Section 6.05       
Restricted Junior Payments. No Loan Party shall, nor shall it permit any of its Subsidiaries or Affiliates through
any manner or means or through any other Person to, directly or indirectly, declare, order, pay, make, or set apart, or agree to
declare, order, pay, make, or set apart, any sum for any Restricted Junior Payment except:

 

(a)              
the making of (i) Permitted Tax Payments and (ii) to the extent constituting a Restricted Junior Payment, the payment of
fees and expenses (or the distribution of amounts used to pay such fees and expenses) incurred by Liberty in connection with (x)
corporate and public company overhead costs and expenses (including administrative, legal accounting, tax reporting, insurance
and other similar expenses payable to third parties) solely attributable to the operations of Holdings and its Subsidiaries (in
the good faith judgment of the Borrower) that are incurred in the ordinary course of business in an aggregate amount not to exceed
$1,000,000 in any Fiscal Year; and (y) the Transactions;

 

    	 	- 100 -	 

     

    

 

(b)              
so long as no Default or Event of Default shall have occurred and be continuing or shall be caused thereby, Restricted Junior
Payments made solely in Capital Stock of Holdings (other than Disqualified Capital Stock) shall be permitted so long as a Change
of Control does not occur after giving effect to any such Restricted Junior Payments;

 

(c)              
Borrower may make Restricted Junior Payments in cash to Holdings in respect of any Fiscal Quarter (a “Subject Fiscal
Quarter”) following the first full Fiscal Quarter ending after the Closing Date, and concurrently therewith, Holdings
(and any direct or indirect parent thereof) may make Restricted Junior Payments in cash to the direct or indirect holders of its
Capital Stock so long as (i) no Default or Event of Default shall have occurred and be continuing or would result therefrom, (ii)
the Total Leverage Ratio, calculated as of the last day of such Subject Fiscal Quarter pursuant to the Compliance Certificate delivered
in respect of such Subject Fiscal Quarter pursuant to Section 5.01(d), after giving pro forma effect to such Restricted
Junior Payment, does not exceed the level indicated in Schedule 6.5 for such Subject Fiscal Quarter, (iii) the Borrower
and its Subsidiaries are in compliance with Section 6.08(c) after giving pro forma effect to such Restricted Junior Payment
and (iv) such Restricted Junior Payment in respect of such Subject Fiscal Quarter does not exceed the Dividend Opportunity Amount,
as of the end of such Subject Fiscal Quarter multiplied by 25% of Consolidated EBITDA for such Subject Fiscal Quarter;

 

(d)              
within 10 calendar days after the end of any Cure Quarter, Borrower may make Restricted Junior Payments in cash to Holdings,
and concurrently therewith, Holdings (and any direct or indirect parent thereof) may make Restricted Junior Payments in cash in
an amount not exceeding the proceeds of Curative Equity received by Borrower during such Fiscal Quarter to the direct or indirect
holders of its Capital Stock so long as (i) no Default or Event of Default shall have occurred and be continuing or would result
therefrom and (ii) immediately before and after giving effect to such Restricted Junior Payment, and after giving effect to any
Restricted Junior Payment made pursuant to Section 6.05(c) in respect of such Fiscal Quarter, Consolidated Liquidity of
Borrower and its Subsidiaries shall not be less than $5,000,000;

 

(e)              
so long as no Default or Event of Default shall have occurred and be continuing or shall be caused thereby, the repayment
or prepayment of all or any part of the principal on any Indebtedness owed by any Loan Party or any of their respective Subsidiaries
to any of Global Parent, Liberty Top Parent, or S/B Parent; provided, that any interest, fees and expenses thereon may accrue so
long as such interest, fees and expenses are not paid in cash until payment in full of all Obligations; provided, further, that
in no event shall any Loan Party or any of their Subsidiaries be permitted to repay or prepay any Indebtedness incurred as Curative
Equity pursuant to this Section 6.05(e);

 

(f)               
so long as no Default or Event of Default shall have occurred and be continuing or shall be caused thereby, the making of
cash payments to S/B Parent, Global Parent or Liberty Top Parent to redeem, retire, purchase or otherwise acquire the shares of
Capital Stock of Holdings or the Borrower issued or sold to S/B Parent, Global Parent or Liberty Top Parent, respectively, in reliance
on Section 6.19(b) and not constituting Curative Equity; provided, that cash payments made in reliance on this clause (f) shall
not exceed, in the aggregate, the amounts paid to Holdings or Borrower by S/B Parent, Global Parent or Liberty Top Parent, respectively,
in exchange for such shares of Capital Stock; and

 

    	 	- 101 -	 

     

    

 

(g)              
Restricted Junior Payments made on the Closing Date in connection with the Transactions in an aggregate amount not to exceed
$15,000,000;

 

provided that,
notwithstanding anything to the contrary contained herein, in no event shall any Loan Party make any Restricted Junior Payment
that results in the transfer of ownership (directly or indirectly) of any Material Intellectual Property or any interest in any
Franchise Agreement to any Person that is not a Loan Party.

 

Section 6.06       
Restrictions on Subsidiary Distributions. Except as provided herein, no Loan Party shall, nor shall it permit any
of its Subsidiaries to, create or otherwise cause or suffer to exist or become effective any consensual encumbrance or restriction
of any kind on the ability of any Subsidiary of Borrower to (a) pay dividends or make any other distributions on any of such
Subsidiary’s Capital Stock owned by Borrower or any other Subsidiary of Borrower, (b) repay or prepay any Indebtedness
owed by such Subsidiary to Borrower or any other Subsidiary of Borrower, (c) make loans or advances to Borrower or any other
Subsidiary of Borrower, or (d) transfer any of its property or assets to Borrower or any other Subsidiary of Borrower other
than restrictions (i) in agreements evidencing Permitted Purchase Money Indebtedness that impose restrictions on the property
so acquired, (ii) by reason of customary provisions restricting assignments, subletting, or other transfers contained in leases,
licenses, joint venture agreements, and similar agreements entered into in the ordinary course of business, (iii) that are
or were created by virtue of any transfer of, agreement to transfer, or option or right with respect to any property, assets, or
Capital Stock not otherwise prohibited under this Agreement, and (iv) that are imposed by law. No Loan Party shall, nor shall it
permit its Subsidiaries to, enter into any Contractual Obligations which would prohibit a Subsidiary of Holdings from being a Loan
Party.

 

Section 6.07       
Investments. No Loan Party shall, nor shall it permit any of its Subsidiaries to, directly or indirectly, make or
own any Investment in any Person, including, without limitation, any Joint Venture, except the Borrower or any Subsidiary thereof
may make or own Permitted Investments. Notwithstanding the foregoing, in no event shall any Loan Party make any Investment (i)
which results in or facilitates in any manner any Restricted Junior Payment not otherwise permitted under the terms of Section
6.05 or (ii) that results in the transfer of ownership (directly or indirectly) of any Material Intellectual Property or any
interest in any Franchise Agreement to any Person that is not a Loan Party.

 

Section 6.08       
Financial Covenants.

 

(a)              
Fixed Charge Coverage Ratio. The Borrower and its Subsidiaries shall not permit the Fixed Charge Coverage Ratio for
any four-Fiscal Quarter period, beginning with the four-Fiscal Quarter period ending December 28, 2019, to be less than 1.10:1.00.

 

(b)              
Total Leverage Ratio. The Borrower and its Subsidiaries shall not permit the Total Leverage Ratio as of the last
day of any Fiscal Quarter, beginning with the Fiscal Quarter ending December 28, 2019, to exceed the correlative ratio indicated:

 

    	 	- 102 -	 

     

    

 

	Fiscal Quarter Ending On	Total Leverage Ratio
	December 28, 2019	3.40:1.00
	March 28, 2020	3.10:1.00
	June 27, 2020	3.05:1.00
	September 26, 2020	3.00:1.00
	December 26, 2020	2.75:1.00
	March 27, 2021	2.55:1.00
	June 26, 2021	2.45:1.00
	September 25, 2021	2.35:1.00
	December 25, 2021	2.25:1.00
	March 26, 2022	2.15:1.00
	June 25, 2022	2.05:1.00
	September 24, 2022	2.00:1.00
	December 31, 2022	1.90:1.00
	April 1, 2023	1.75:1.00
	July 1, 2023	1.70:1.00
	September 30, 2023	1.60:1.00

 

(c)              
Minimum Consolidated Liquidity. The Borrower and its Subsidiaries shall not permit Consolidated Liquidity to be less
than (i) $2,500,000 as of the last day of any fiscal quarter ending on or prior to March 28, 2020 and (ii) $5,000,000 as of the
last day of any fiscal quarter ending after March 28, 2020.

 

(d)              
Borrowing Base. The Borrower and its Subsidiaries shall not permit the Borrowing Base Ratio as of the last day of
any month, beginning with the month ending December 31, 2019, to be less than the correlative ratio indicated:

 

    	 	- 103 -	 

     

    

 

	Each month during the Fiscal Quarter Ending On	Minimum Borrowing Base Ratio
	December 28, 2019	65%
	March 28, 2020	65%
	June 27, 2020	65%
	September 26, 2020	65%
	December 26, 2020	65%
	March 27, 2021	70%
	June 26, 2021	70%
	September 25, 2021	75%
	December 25, 2021	75%
	March 26, 2022	80%
	June 25, 2022	80%
	September 24, 2022	80%
	December 31, 2022	80%
	April 1, 2023	80%
	July 1, 2023	80%
	September 30, 2023	80%

 

(e)              
Certain Calculations. With respect to any period during which an Asset Sale has occurred (each, a “Subject
Transaction”), for purposes of determining compliance with the financial covenants set forth in this Section 6.08,
Consolidated EBITDA and the components of Consolidated Fixed Charges shall be calculated with respect to such period on a pro forma
basis (including pro forma adjustments approved by Administrative Agent in its sole discretion) using the historical audited financial
statements of any business so acquired or to be acquired or sold or to be sold, in an amount that is validated by a quality of
earnings report that is reasonably satisfactory to Administrative Agent from an auditing firm that is acceptable to Administrative
Agent and based on the definition of Consolidated EBITDA set forth in this agreement. For the purposes of the foregoing, the consolidated
financial statements of the Borrower and its Subsidiaries shall be reformulated as if such Subject Transaction, and any Indebtedness
incurred or repaid in connection therewith, had been consummated or incurred or repaid at the beginning of such period (and assuming
that such Indebtedness bears interest during any portion of the applicable measurement period prior to the relevant acquisition
at the weighted average of the interest rates applicable to outstanding Loans incurred during such period).

 

Section 6.09       
Fundamental Changes; Disposition of Assets; Acquisitions. No Loan Party shall, nor shall it permit any of its Subsidiaries
to, enter into any transaction of merger or consolidation, or liquidate, wind up, or dissolve itself (or suffer any liquidation
or dissolution), or convey, sell, lease, or sub-lease (as lessor or sublessor), exchange, transfer, or otherwise dispose of, in
one transaction or a series of transactions, all or any part of its business, assets, or property of any kind whatsoever, whether
real, personal, or mixed and whether tangible or intangible, whether now owned or hereafter acquired, or acquired by purchase or
otherwise (other than purchases or other acquisitions of inventory, materials, and equipment and capital expenditures in the ordinary
course of business) the business, property, or fixed assets of, or stock or other evidence of beneficial ownership of, any Person
or any division or line of business or other business unit of any Person, except:

 

    	 	- 104 -	 

     

    

 

(a)              
any Subsidiary of Holdings may be merged with or into Borrower or any Guarantor Subsidiary, or be liquidated, wound up,
or dissolved so long as all the assets of such liquidating, wound up or dissolved entity are transferred to a Loan Party (other
than Holdings) that is not liquidating, winding up or dissolving, or all or any part of its business, property, or assets may be
conveyed, sold, leased, transferred, or otherwise disposed of, in one transaction or a series of transactions, to Borrower or any
Guarantor Subsidiary; provided, that in the case of such a merger, Borrower or such Guarantor Subsidiary, as applicable,
shall be the continuing or surviving Person,

 

(b)              
sales or other dispositions of assets that do not constitute Asset Sales,

 

(c)              
dispositions of equipment and other property in the ordinary course of business that is worn (other than normal “wear
and tear”), damaged, obsolete or, in the judgment of a Loan Party, no longer useful or necessary in its business or that
of any Subsidiary,

 

(d)              
to the extent constituting an Asset Sale, (i) the incurrence of Permitted Liens, (ii) the making of Restricted Junior Payments
permitted pursuant to Section 6.05 and sale and lease back transactions permitted by Section 6.11,

 

(e)              
Asset Sales; provided, that (A) the consideration received for such assets shall be in an amount at least equal
to the fair market value thereof (determined in good faith by Board of Borrower or Holdings (or similar governing body) (except
such Board (or similar governing body) need not make a determination as to fair market value with respect to any single Asset Sale
the proceeds of which are less than $2,500,000)), which consideration is received in an arm’s length transaction from a Person
other than an Affiliate of a Loan Party (provided that Asset Sales as permitted by Section 6.12(e) may be consummated with
an Affiliate of a Loan Party), (B) no less than 75% thereof shall be paid in Cash, (C) no Default or Event of Default
has occurred and is continuing and on a pro forma basis after giving effect to such Asset Sale, the Borrower and its Subsidiaries
shall be in compliance with the financial covenants set forth in Section 6.08(a), (b) and (d) as of the last
day of the most recent Fiscal Quarter for which financial statements have been delivered pursuant to Section 5.01(b) and
(D) the Net Proceeds thereof shall be applied as required by Section 2.13(a),

 

(f)               
the Borrower or any Subsidiary thereof may make or own Permitted Investments,

 

(g)              
sales, transfers and other dispositions among the Loan Parties that are Subsidiaries of Holdings,

 

    	 	- 105 -	 

     

    

 

(h)              
sales, transfers, and other dispositions by any Subsidiary which is not a Loan Party to any Loan Party or any other Subsidiary
that is not a Loan Party,

 

(i)                
dispositions of Cash or Cash Equivalents in the ordinary course of business;

 

(j)                
the dispositions (including any lease assignments) contemplated by (i) that certain Asset Purchase Agreement, dated on or
about the Closing Date, by and between A Team, as purchaser, and Borrower, as seller, and (ii) that certain Asset Purchase Agreement,
dated on or about the Closing Date, by and between EightSixThree RTO, LLC, a Florida limited liability company, as purchaser, and
Leasing Operations, LLC, a Delaware limited liability company, as seller (collectively, the “Closing Date Dispositions”);
and

 

(k)              
to the extent constituting a disposition, the waiver of any payments due on or in respect of Indebtedness (other than payments
due at the maturity thereof) owing to the Loan Parties by any other Persons;

 

provided that,
notwithstanding anything to the contrary contained herein, in no event shall any Loan Party make any Asset Sale or other asset
sale or disposition of assets that results in the transfer of ownership (directly or indirectly) of any Material Intellectual Property
or any interest in any Franchise Agreement to any Person that is not a Loan Party.

 

Section 6.10       
Disposal of Subsidiary Interests. Except for any sale of all of its interests in the Capital Stock of any of its
Subsidiaries in compliance with the provisions of Section 6.09, no Loan Party shall, nor shall it permit any of its Subsidiaries
to, (a) directly or indirectly sell, assign, pledge, or otherwise encumber or dispose of any Capital Stock of any of its Subsidiaries,
except to qualify directors if required by applicable law or (b) permit any of its Subsidiaries directly or indirectly to
sell, assign, pledge, or otherwise encumber or dispose of any Capital Stock of any of its Subsidiaries, except to another Loan
Party (subject to the restrictions on such disposition otherwise imposed hereunder), or to qualify directors if required by applicable
law.

 

Section 6.11       
Sales and Lease Backs. No Loan Party shall, nor shall it permit any of its Subsidiaries to, directly or indirectly,
become or remain liable as lessee or as a guarantor or other surety with respect to any lease of any property (whether real, personal,
or mixed), whether now owned or hereafter acquired, which such Loan Party (a) has sold or transferred or is to sell or to
transfer to any other Person (other than Borrower or any of its Subsidiaries that is a Loan Party) or (b) intends to use for
substantially the same purpose as any other property which has been or is to be sold or transferred by such Loan Party to any Person
(other than Borrower or any of its Subsidiaries that is a Loan Party) in connection with such lease.

 

Section 6.12       
Transactions with Affiliates. No Loan Party shall, nor shall it permit any of its Subsidiaries to, directly or indirectly,
enter into or permit to exist any transaction (including the purchase, sale, lease, or exchange of any property or the rendering
of any service) with any holder of 5% or more of any class of Capital Stock of Holdings or any of its Subsidiaries or with any
Affiliate of Holdings or of any such holder; provided, that the foregoing restrictions shall not apply to any of the following:

 

    	 	- 106 -	 

     

    

 

(a)              
any transaction among the Loan Parties,

 

(b)              
compensation arrangements for officers and other employees of Holdings and its Subsidiaries entered into in the ordinary
course of business,

 

(c)              
the payment of Restricted Junior Payments permitted by Section 6.05,

 

(d)              
any Loan Party may purchase assets from Affiliates thereof in the ordinary course of business so long as (i) no Default
or Event of Default has occurred and is continuing or would result therefrom, (ii) such purchase is consummated pursuant to an
arm’s length transaction and (iii) such assets are purchased for fair market value,

 

(e)              
Asset Sales in the form of a sale of furniture and assignment of lease agreements to franchisees in the ordinary course
of business consistent with past practices, so long as (i) the sale thereof is approved by independent members of the Board that
do not have any economic or voting interest in Borrower (other than such position on the Board); (ii) concurrently with such sale,
Administrative Agent shall receive a copy of an executed Franchise Agreement in which such franchisee agrees to pay for the right
to use the brand name, products, suppliers, equipment, and systems of Borrower; (iii) the Borrower and its Subsidiaries shall be
in pro forma compliance with the financial covenants in Section 6.08 for the immediately preceding four-Fiscal Quarter period
for which financial statements have been (or were required to be) delivered pursuant to Section 5.01(b), and (iv) in connection
with the sale referenced in this clause (e), such sale meets the terms and conditions set forth in clause (e) of Section 6.09
and the Net Proceeds thereof shall be applied as required by Section 2.13(a),

 

(f)               
financial advisory services with Affiliates so long as such financial advisory services are at arm’s length and provided
for a customary fee consistent with industry standards, and

 

(g)              
transactions described in Schedule 6.12;

 

provided, further,
that, notwithstanding anything to the contrary contained herein, in no event shall any Loan Party enter into any transaction (including
the purchase, sale, lease, or exchange of any property or the rendering of any service) with any holder of 5% or more of any class
of Capital Stock of Holdings or any of its Subsidiaries or with any Affiliate of Holdings or of any such holder, that results in
the transfer of ownership (directly or indirectly) of any Material Intellectual Property or any interest in any Franchise Agreement
to any Person that is not a Loan Party.

 

Section 6.13       
Conduct of Business. From and after the Closing Date, no Loan Party shall, nor shall it permit any of its Subsidiaries
to, engage in any business other than (a) the businesses engaged in by such Loan Party on the Closing Date and any other business
reasonably related or complimentary thereto and (b) such other lines of business as may be consented to by Required Lenders.

 

    	 	- 107 -	 

     

    

 

Section 6.14       
Permitted Activities of Holdings, Global Parent, Liberty Top Parent, and S/B Parent.

 

(a)              
Holdings shall not (i) incur, directly or indirectly, any Indebtedness or any other obligation or liability whatsoever
other than the Obligations, (ii) create or suffer to exist any Lien upon any property or assets now owned or hereafter acquired
by it other than the Liens created under the Collateral Documents to which it is a party or permitted pursuant to Section 6.02,
(iii) engage in any business or activity or own any assets other than (1) holding 100% of the Capital Stock of the Borrower,
(2) performing its obligations and activities incidental thereto under the Loan Documents, (3) making Restricted Junior
Payments and Investments to the extent permitted by this Agreement, and (4) carrying out activities incidental to maintenance of
its corporate existence and the management of Borrower and its Subsidiaries, (iv) consolidate with or merge with or into,
or convey, transfer, or lease all or substantially all its assets to, any Person, (v) sell or otherwise dispose of any Capital
Stock of any of its Subsidiaries, (vi) create or acquire any Subsidiary or make or own any Investment in any Person other
than Borrower and its Subsidiaries, or (vii) fail to hold itself out to the public as a legal entity separate and distinct
from all other Persons. Notwithstanding anything to the contrary herein or in any other Loan Documents, Holdings shall not directly
hold the Capital Stock of any entity other than Borrower.

 

(b)              
S/B Parent shall not (i) incur, directly or indirectly, any material Indebtedness for borrowed money other than the
Obligations and intercompany Indebtedness owing to other Loan Parties, (ii) create or suffer to exist any Lien upon any property
or assets now owned or hereafter acquired by it other than (A) the Liens created under the Collateral Documents to which it is
a party and (B) the Liens contemplated by clause (iii)(5) below, (iii) engage in any business or activity or own any assets
other than (1) holding Capital Stock of its Subsidiaries and other investments contemplated by clause (iii)(5) below, (2) performing
its obligations and activities incidental thereto under the Loan Documents, (3) making Restricted Junior Payments and Investments;
provided that, after giving effect to any prepayment of the Loans pursuant to Section 2.13(i) (calculated assuming that
no such prepayment was waived pursuant to Section 2.14(b)), not more than 50% of any remaining proceeds of the sale, transfer
or other conveyance of all or substantially all of the assets of any of the Existing Businesses, or a majority of the Capital Stock
of any of the Existing Businesses, shall be permitted to be utilized for Restricted Junior Payments (or any payment that would
constitute a Restricted Junior Payment if made by, or on account of, the Capital Stock of Holdings or the Borrower), (4) carrying
out activities incidental to maintenance of its corporate existence and the management of its Subsidiaries and (5) any other transactions
in the ordinary course of business (including, without limitation, making Investments and forming or acquiring new Subsidiaries)
as permitted by its constituent documents (other than become an operating company or engage in significant operating company activities),
(iv) cease to exist, consolidate with or merge with or into, or convey, transfer, or lease all or substantially all its assets
to, any Person, or (v) fail to hold itself out to the public as a legal entity separate and distinct from all other Persons.
Any Subsidiary of S/B Parent which directly or indirectly owns any of the Capital Stock of Holdings shall (x) automatically be
subject to the restrictions of this Section 6.14(b) as if such Subsidiary were named herein as a party in addition to S/B
Parent and (y) concurrently with the formation or acquisition of such Subsidiary, become party to the Parent Guaranty and Collateral
Agreement as a guarantor and a grantor.

 

    	 	- 108 -	 

     

    

 

(c)              
Global Parent shall not (i) incur, directly or indirectly, any material Indebtedness for borrowed money other than
the Obligations and intercompany Indebtedness owing to other Loan Parties, (ii) create or suffer to exist any Lien upon any
property or assets now owned or hereafter acquired by it other than (A) the Liens created under the Collateral Documents to which
it is a party and (B) the Liens contemplated by clause (iii)(5) below, (iii) engage in any business or activity or own any
assets other than (1) holding Capital Stock of its Subsidiaries and other investments contemplated by clause (iii)(5) below,
(2) performing its obligations and activities incidental thereto under the Loan Documents, (3) making Restricted Junior
Payments and Investments; provided that, after giving effect to any prepayment of the Loans pursuant to Section 2.13(i)
(calculated assuming that no such prepayment was waived pursuant to Section 2.14(b)), not more than 50% of any remaining
proceeds of the sale, transfer or other conveyance of all or substantially all of the assets of any of the Existing Businesses,
or a majority of the Capital Stock of any of the Existing Businesses, shall be permitted to be utilized for Restricted Junior Payments
(or any payment that would constitute a Restricted Junior Payment if made by, or on account of, the Capital Stock of Holdings or
the Borrower), (4) carrying out activities incidental to maintenance of its corporate existence and the management of its Subsidiaries
and (5) any other transactions in the ordinary course of business (including, without limitation, making Investments and forming
or acquiring new Subsidiaries) as permitted by its constituent documents (other than become an operating company or engage in significant
operating company activities), (iv) cease to exist, consolidate with or merge with or into, or convey, transfer, or lease
all or substantially all its assets to, any Person or (v) fail to hold itself out to the public as a legal entity separate
and distinct from all other Persons; provided that, notwithstanding anything to the contrary contained herein, Global Parent
shall be permitted to refinance (or to cause the refinancing) of the Indebtedness under that certain Credit Agreement, dated as
of May 16, 2019, among Franchise Group Intermediate L 2, LLC, a Delaware limited liability company (as assignee of the rights and
obligations of Liberty thereunder), Citizens Bank, N.A., as administrative agent, the lenders party thereto and the other parties
party thereto, as amended or otherwise modified prior to the Closing Date, with another secured revolving credit facility so long
as the aggregate commitments under such refinancing Indebtedness do not exceed $135,000,000 (such Credit Agreement, as amended
or otherwise modified not violation of this Agreement, or as refinanced in accordance with this proviso, the “Liberty
Credit Agreement”). Any Subsidiary of Global Parent which directly or indirectly owns any of the Capital Stock of Liberty
Top Parent and/or S/B Parent shall (x) automatically be subject to the restrictions of this Section 6.14(c) as if such Subsidiary
were named herein as a party in addition to Global Parent and (y) concurrently with the formation or acquisition of such Subsidiary,
become party to the Parent Guaranty and Collateral Agreement as a guarantor and a grantor.

 

(d)              
Liberty Top Parent shall not (i) incur, directly or indirectly, any material Indebtedness for borrowed money other
than the Obligations and intercompany Indebtedness owing to other Loan Parties, (ii) create or suffer to exist any Lien upon
any property or assets now owned or hereafter acquired by it other than (A) the Liens created under the Collateral Documents to
which it is a party and (B) the Liens contemplated by clause (iii)(5) below, (iii) engage in any business or activity or own
any assets other than (1) holding Capital Stock of its Subsidiaries and other investments contemplated by clause (iii)(5)
below, (2) performing its obligations and activities incidental thereto under the Loan Documents, (3) making Restricted
Junior Payments and Investments; provided that, after giving effect to any prepayment of the Loans pursuant to Section 2.13(i)
(calculated assuming that no such prepayment was waived pursuant to Section 2.14(b)), not more than 50% of any remaining
proceeds of the sale, transfer or other conveyance of all or substantially all of the assets of any of the Existing Businesses,
or a majority of the Capital Stock of any of the Existing Businesses, shall be permitted to be utilized for Restricted Junior Payments
(or any payment that would constitute a Restricted Junior Payment if made by, or on account of, the Capital Stock of Holdings or
the Borrower), (4) carrying out activities incidental to maintenance of its corporate existence and the management of its Subsidiaries
and (5) any other transactions in the ordinary course of business (including, without limitation, making Investments and forming
or acquiring new Subsidiaries) as permitted by its constituent documents (other than become an operating company or engage in significant
operating company activities), (iv) cease to exist, consolidate with or merge with or into, or convey, transfer, or lease
all or substantially all its assets to, any Person or (v) fail to hold itself out to the public as a legal entity separate
and distinct from all other Persons. Any Subsidiary of Liberty Top Parent which directly or indirectly owns any of the Capital
Stock of Liberty Parent shall (x) automatically be subject to the restrictions of this Section 6.14(d) as if such Subsidiary
were named herein as a party in addition to Liberty Top Parent and (y) concurrently with the formation or acquisition of such Subsidiary,
become party to the Parent Guaranty and Collateral Agreement as a guarantor and a grantor.

 

    	 	- 109 -	 

     

    

 

(e)              
Global Parent, Liberty Top Parent, S/B Parent and the Loan Parties shall use their commercially reasonable efforts to consummate
or abandon the tender offer by Liberty for its outstanding common stock (other than common stock owned by the Permitted Holders)
by December 31, 2019.

 

(f)               
Upon the request of Administrative Agent, Global Parent, Liberty Top Parent, and S/B Parent shall use commercially reasonable
efforts to cause Liberty Borrower to incur up to $15,000,000 aggregate principal amount of Liberty Subordinated Debt provided by
certain accounts for which Guggenheim Partners Investment Management, LLC or an affiliate thereof provides investment management
services, so long as the incurrence of such debt is not in violation of any Requirements of Law and does not breach the Liberty
Credit Agreement.

 

Section 6.15       
Changes to Certain Agreements and Organizational Documents.

 

(a)              
No Loan Party shall, nor shall it permit any of its Subsidiaries to, agree to any material amendment, restatement, supplement,
or other modification to, or waiver of, any of its material rights under the Closing Date Acquisition Agreement after the Closing
Date without in each case obtaining the prior written consent of Administrative Agent and Required Lenders to such amendment, restatement,
supplement, or other modification or waiver.

 

(b)              
No Loan Party nor any of Global Parent, Liberty Top Parent or S/B Parent shall amend or permit any amendments to any Loan
Party’s Organizational Documents if such amendment, termination, or waiver would be material and adverse to Administrative
Agent or Lenders.

 

(c)              
No Loan Party shall, nor shall it permit any of its Subsidiaries to, amend or otherwise change the terms of any Indebtedness
that is expressly subordinated to the Obligations, except as may be permitted pursuant to the applicable subordination and/or intercreditor
arrangements, the terms and conditions of which are satisfactory to Administrative Agent.

 

    	 	- 110 -	 

     

    

 

Section 6.16       
Accounting Methods. The Loan Parties will not and will not permit any of their Subsidiaries to modify or change its
fiscal year or its method of accounting (other than as may be required to conform to GAAP); provided that the Loan Parties
may change their fiscal year following 30 days’ prior written notice to Administrative Agent; provided further that,
immediately following such notice, the Loan Parties will (i) provide such information as reasonably requested by Administrative
Agent or Required Lenders, including without limitation, a Financial Plan reflecting such new fiscal year, as applicable, and (ii)
negotiate in good faith technical amendments to this Agreement and the other Loan Documents, as necessary, to reflect such new
fiscal year.

 

Section 6.17       
Cash Management.

 

(a)              
Neither S/B Parent nor any Loan Party shall establish or maintain a Deposit Account or a Securities Account that is not
subject to a Control Agreement; provided, that no Excluded Account shall be required to be subject to a Control Agreement;
provided, further, that S/B Parent and the Loan Parties shall have (x) in the case of S/B Parent, sixty (60) days
after the date hereof and (y) in the case of the Loan Parties, sixty (60) days after the date hereof (or, in each case, with respect
to Deposit Accounts or Securities Accounts opened or acquired after the Closing Date, sixty (60) days after the date of such opening
or acquisition) (or, in each case, such later date to which the Administrative Agent may otherwise agree) to cause a Deposit Account
or Securities Account to become subject to a Control Agreement so long as no Cash or securities being held in a Deposit Account
or Securities Account subject to a Control Agreement is transferred to any such new Deposit Account or Securities Account prior
to such new Deposit Account or Securities Account becoming subject to a Control Agreement. The Loan Parties shall transfer no less
frequently than daily to a Deposit Account subject to a Control Agreement all payments received from all Credit Card Issuers and
Credit Card Processors (other than to the extent such payments are received directly into a Deposit Account subject to a Control
Agreement).

 

(b)              
Beginning on the later of (A) 20 calendar days (or such later date to which the Administrative Agent may otherwise agree)
following the earlier of (1) the date that Liberty has consummated the tender offer for its outstanding common stock (other than
common stock owned by the Permitted Holders) and (2) the date Liberty has publicly announced that it has abandoned the tender offer
referred to in the preceding clause (1); and (B) sixty (60) days after the Closing Date (or such later date to which the Administrative
Agent may otherwise agree), Global Parent and Liberty Top Parent shall not establish or maintain a Deposit Account or a Securities
Account that is not subject to a Control Agreement; provided, that no Excluded Account shall be required to be subject to
a Control Agreement; provided, further, that Global Parent and Liberty Top Parent shall have, with respect to Deposit
Accounts or Securities Accounts opened or acquired after the date referenced in clause (A) above, sixty (60) days after the date
of such opening or acquisition (or such later date to which the Administrative Agent may otherwise agree) to cause a Deposit Account
or Securities Account to become subject to a Control Agreement so long as no Cash or securities being held in a Deposit Account
or Securities Account subject to a Control Agreement is transferred to any such new Deposit Account or Securities Account prior
to such new Deposit Account or Securities Account becoming subject to a Control Agreement.

 

    	 	- 111 -	 

     

    

 

(c)              
Each Control Agreement shall provide that the applicable depositary bank or securities intermediary will comply with any
instructions originated by the Collateral Agent directing the disposition of funds in the applicable deposit account or securities
account without further consent by the Loan Party, Global Parent, Liberty Top Parent or S/B Parent, as applicable; provided
that the Collateral Agent shall not issue such instructions except during the continuance of an Event of Default; provided,
further, that notwithstanding the foregoing, the Collateral Agent shall not issue such instructions under any Control Agreement
in respect of a Deposit Account or Securities Account owned or maintained by Global Parent or Liberty Top Parent except during
the continuance of an Event of Default under Sections 8.01(a), (f), or (g) (provided that, unless the
Administrative Agent otherwise agrees, such Control Agreements shall provide that the Collateral Agent’s instructions shall
automatically be deemed to have been issued upon an Event of Default under Sections 8.01(f) or (g)).

 

(d)              
To the extent not previously delivered prior to the Closing Date, deliver to Administrative Agent within five (5) Business
Days after the Closing Date (or such longer period as agreed to by Administrative Agent) copies of notifications in the form of
Exhibit I hereto (each, a “Credit Card Notification”), or otherwise reasonably satisfactory in form and substance
to Administrative Agent which have been executed by the applicable Loan Parties and delivered to such Loan Party’s Credit
Card Issuers and Credit Card Processors listed in Schedule 6.17 with respect to which the Loan Parties have established
credit card processing arrangements; provided that, notwithstanding the foregoing, with respect to any multi-party credit card
processing arrangements or credit card processing arrangements entered into by any predecessors in interest to the Loan Parties,
the Loan Parties shall be required to use commercially reasonable efforts to ensure the delivery of such Credit Card Notifications
as promptly as reasonably practicable following the Closing Date.

 

(e)              
Upon entering into any agreements with any new Credit Card Issuer or Credit Card Processor, the Loan Parties shall deliver
to Administrative Agent a Credit Card Notification as set forth in Section 6.17(d) hereof.

 

(f)               
Administrative Agent agrees that (1) it shall not direct any Credit Card Issuer or Credit Card Processor to transfer any
proceeds pursuant to any Credit Card Notification unless an Event of Default has occurred and is continuing and (2) if any Loan
Party shall so request, unless an Event of Default has occurred and is continuing, Administrative Agent shall countersign any notification,
request, order or direction from such Loan Party to any Credit Card Issuer or Credit Card Processor directing payments from such
Credit Card Issuer or Credit Card Processor to be made to a new or different Deposit Account, provided such Deposit Account is
subject to a Control Agreement.

 

Section 6.18       
Prepayments of Certain Indebtedness. No Loan Party shall, directly or indirectly, voluntarily purchase, redeem, defease
or prepay any principal of, premium, interest or other amount payable in respect of any Indebtedness prior to its scheduled maturity,
other than prepayments and repayments of Permitted Indebtedness.

 

    	 	- 112 -	 

     

    

 

Section 6.19       
Issuance of Capital Stock. Except for (a) the issuance or sale of Qualified Capital Stock by Borrower pursuant to
an investment of Curative Equity or as otherwise expressly permitted under this Agreement, and (b) the issuance or sale of Capital
Stock of Holdings or Borrower to S/B Parent, Global Parent or Liberty Top Parent in exchange for cash payments by S/B Parent, Global
Parent or Liberty Top Parent to Holdings or Borrower, Holdings will not, and will not permit any of its Subsidiaries to, issue
or sell any of its Capital Stock.

 

Section 6.20       
Anti-Terrorism Laws. No part of the proceeds of any Loan will be used, directly or, to the knowledge of a Loan Party,
indirectly, to make any payments to a Sanctioned Entity or a Sanctioned Person, to finance any investments in a Sanctioned Entity
or a Sanctioned Person, to fund any operations of a Sanctioned Entity or a Sanctioned Person, or in any other manner that would
result in a violation of Sanctions by any Person, and no part of the proceeds of any Loan will be used, directly or, to the knowledge
of a Loan Party, indirectly, in furtherance of an offer, payment, promise to pay, or authorization of the payment or giving of
money, or anything else of value, to any Person in violation of the Anti-corruption Laws.

 

Section 6.21       
Franchise Agreements. No Loan Party will maintain or distribute any Franchise Disclosure Documents, or enter into
any Franchise Agreements, in violation of Section 4.28(c).

 

ARTICLE
VII

GUARANTY

 

Section 7.01       
Guaranty of the Obligations. Subject to the provisions of Section 7.02, Guarantors jointly and severally hereby
irrevocably and unconditionally guarantee for the ratable benefit of the Beneficiaries the due and punctual payment in full of
all Obligations when the same shall become due, whether at stated maturity, by required prepayment, declaration, acceleration,
demand, or otherwise (including amounts that would become due but for the operation of the automatic stay under Section 362(a)
of the Bankruptcy Code) (collectively, the “Guaranteed Obligations”).

 

Section 7.02       
Contribution by Guarantors. All Guarantors desire to allocate among themselves, in a fair and equitable manner, their
obligations arising under the Guaranties. Accordingly, in the event any payment or distribution is made on any date by a Guarantor
under any Guaranty such that its Aggregate Payments exceeds its Fair Share as of such date, such Guarantor shall be entitled to
a contribution from each of the other Guarantors in an amount sufficient to cause each Guarantor’s Aggregate Payments to
equal its Fair Share as of such date. “Fair Share” means, with respect to any Guarantor as of any date of determination,
an amount equal to (a) the ratio of (i) the Fair Share Contribution Amount with respect to such Guarantor, to (ii) the
aggregate of the Fair Share Contribution Amounts with respect to all Guarantors multiplied by, (b) the aggregate amount paid
or distributed on or before such date by all Guarantors under all Guaranties in respect of the Obligations guaranteed. “Fair
Share Contribution Amount” means, with respect to any Guarantor as of any date of determination, the maximum aggregate
amount of the obligations of such Guarantor under the Guaranties that would not render its obligations under the Guaranties subject
to avoidance as a fraudulent transfer or conveyance under Section 548 of the Bankruptcy Code or any comparable applicable
provisions of state or foreign law; provided, that solely for purposes of calculating the Fair Share Contribution Amount
with respect to any Guarantor for purposes of this Section 7.02, any assets or liabilities of such Guarantor arising by
virtue of any rights to subrogation, reimbursement, or indemnification or any rights to or obligations of contribution under any
Guaranty shall not be considered as assets or liabilities of such Guarantor. “Aggregate Payments” means, with
respect to any Guarantor, as of any date of determination, an amount equal to (y) the aggregate amount of all payments and
distributions made on or before such date by such Guarantor in respect of any Guaranties (including, without limitation, in respect
of this Section 7.02), minus (z) the aggregate amount of all payments received on or before such date by such
Guarantor from the other Guarantors as contributions under this Section 7.02. The amounts payable as contributions hereunder
shall be determined as of the date on which the related payment or distribution is made by the applicable Guarantor. The allocation
among Guarantors of their obligations as set forth in this Section 7.02 shall not be construed in any way to limit the liability
of any Guarantor under any Guaranty. Each Guarantor is a third party beneficiary to the contribution agreement set forth in this
Section 7.02.

 

    	 	- 113 -	 

     

    

 

Section 7.03       
Payment by Guarantors. Subject to Section 7.02, Guarantors hereby jointly and severally agree, in furtherance
of the foregoing and not in limitation of any other right which any Beneficiary may have at law or in equity against any Guarantor
by virtue hereof, that upon the failure of Borrower to pay any of the Guaranteed Obligations when and as the same shall become
due, whether at stated maturity, by required prepayment, declaration, acceleration, demand, or otherwise (including amounts that
would become due but for the operation of the automatic stay under Section 362(a) of the Bankruptcy Code), Guarantors will
upon demand pay, or cause to be paid, in Cash, to Administrative Agent for the ratable benefit of Beneficiaries, an amount equal
to the sum of the unpaid principal amount of all Guaranteed Obligations then due as aforesaid, accrued and unpaid interest on such
Guaranteed Obligations (including interest which, but for Borrower’s becoming the subject of a case under the Bankruptcy
Code, would have accrued on such Guaranteed Obligations, whether or not a claim is allowed or allowable against Borrower for such
interest in the related bankruptcy case) and all other Guaranteed Obligations then owed to Beneficiaries as aforesaid.

 

Section 7.04       
Liability of Guarantors Absolute. Each Guarantor agrees that its obligations hereunder are irrevocable, absolute,
independent, and unconditional and shall not be affected by any circumstance which constitutes a legal or equitable discharge of
a guarantor or surety other than payment in full of the Guaranteed Obligations. In furtherance of the foregoing and without limiting
the generality thereof, each Guarantor agrees as follows:

 

(a)              
this Guaranty is a guaranty of payment when due and not of collectability. This Guaranty is a primary obligation of each
Guarantor and not merely a contract of surety,

 

(b)              
any Agent may enforce this Guaranty upon the occurrence of an Event of Default notwithstanding the existence of any dispute
between Borrower and any Beneficiary with respect to the existence of such Event of Default,

 

(c)              
the obligations of each Guarantor hereunder are independent of the obligations of Borrower and the obligations of any other
guarantor (including any other Guarantor) of the obligations of Borrower, and a separate action or actions may be brought and prosecuted
against such Guarantor whether or not any action is brought against Borrower or any of such other guarantors and whether or not
Borrower is joined in any such action or actions,

 

    	 	- 114 -	 

     

    

 

(d)              
payment by any Guarantor of a portion, but not all, of the Guaranteed Obligations shall in no way limit, affect, modify,
or abridge any Guarantor’s liability for any portion of the Guaranteed Obligations which has not been paid. Without limiting
the generality of the foregoing, if any Agent is awarded a judgment in any suit brought to enforce any Guarantor’s covenant
to pay a portion of the Guaranteed Obligations, such judgment shall not be deemed to release such Guarantor from its covenant to
pay the portion of the Guaranteed Obligations that is not the subject of such suit, and such judgment shall not, except to the
extent satisfied by such Guarantor, limit, affect, modify, or abridge any other Guarantor’s liability hereunder in respect
of the Guaranteed Obligations,

 

(e)              
any Beneficiary, upon such terms as it deems appropriate, without notice or demand and without affecting the validity or
enforceability hereof or giving rise to any reduction, limitation, impairment, discharge, or termination of any Guarantor’s
liability hereunder, from time to time may (i) renew, extend, accelerate, increase the rate of interest on, or otherwise change
the time, place, manner, or terms of payment of the Guaranteed Obligations, (ii) settle, compromise, release, or discharge,
or accept or refuse any offer of performance with respect to, or substitutions for, the Guaranteed Obligations or any agreement
relating thereto and/or subordinate the payment of the same to the payment of any other obligations, (iii) request and accept
other guaranties of the Guaranteed Obligations and take and hold security for the payment hereof or the Guaranteed Obligations,
(iv) release, surrender, exchange, substitute, compromise, settle, rescind, waive, alter, subordinate, or modify, with or
without consideration, any security for payment of the Guaranteed Obligations, any other guaranties of the Guaranteed Obligations,
or any other obligation of any Person (including any other Guarantor) with respect to the Guaranteed Obligations, (v) enforce
and apply any security now or hereafter held by or for the benefit of such Beneficiary in respect hereof or the Guaranteed Obligations
and direct the order or manner of sale thereof, or exercise any other right or remedy that such Beneficiary may have against any
such security, in each case as such Beneficiary in its discretion may determine consistent herewith and any applicable security
agreement, including foreclosure on any such security pursuant to one or more judicial or non-judicial sales, whether or not every
aspect of any such sale is commercially reasonable, and even though such action operates to impair or extinguish any right of reimbursement
or subrogation or other right or remedy of any Guarantor against Borrower or any security for the Guaranteed Obligations, and (vi) exercise
any other rights available to it under the Loan Documents, and

 

(f)               
this Guaranty and the obligations of Guarantors hereunder shall be valid and enforceable and shall not be subject to any
reduction, limitation, impairment, discharge, or termination for any reason (other than payment in full of the Guaranteed Obligations),
including the occurrence of any of the following, whether or not any Guarantor shall have had notice or knowledge of any of them:
(i) any failure or omission to assert or enforce or agreement or election not to assert or enforce, or the stay or enjoining,
by order of court, by operation of law or otherwise, of the exercise or enforcement of, any claim or demand or any right, power,
or remedy (whether arising under the Loan Documents, at law, in equity, or otherwise) with respect to the Guaranteed Obligations
or any agreement relating thereto, or with respect to any other guaranty of, or security for the payment of, the Guaranteed Obligations,
(ii) any rescission, waiver, amendment, or modification of, or any consent to departure from, any of the terms or provisions
(including provisions relating to Events of Default) hereof, any of the other Loan Documents or any agreement or instrument executed
pursuant thereto, or of any other guaranty or security for the Guaranteed Obligations, in each case whether or not in accordance
with the terms hereof or such Loan Document or any agreement relating to such other guaranty or security, (iii) the Guaranteed
Obligations, or any agreement relating thereto, at any time being found to be illegal, invalid, or unenforceable in any respect,
(iv) the application of payments received from any source (other than payments received pursuant to the other Loan Documents
or from the proceeds of any security for the Guaranteed Obligations, except to the extent such security also serves as collateral
for Indebtedness other than the Guaranteed Obligations) to the payment of Indebtedness other than the Guaranteed Obligations, even
though any Beneficiary might have elected to apply such payment to any part or all of the Guaranteed Obligations, (v) any
Beneficiary’s consent to the change, reorganization, or termination of the corporate structure or existence of Holdings or
any of its Subsidiaries and to any corresponding restructuring of the Guaranteed Obligations, (vi) any failure to perfect
or continue perfection of a security interest in any Collateral which secures any of the Guaranteed Obligations, (vii) any
defenses, set-offs, or counterclaims which Borrower may allege or assert against any Beneficiary in respect of the Guaranteed Obligations,
including failure of consideration, breach of warranty, payment, statute of frauds, statute of limitations, accord and satisfaction,
and usury, and (viii) any other act or thing or omission, or delay to do any other act or thing, which may or might in any
manner or to any extent vary the risk of any Guarantor as an obligor in respect of the Guaranteed Obligations.

 

    	 	- 115 -	 

     

    

 

Section 7.05       
Waivers by Guarantors. Each Guarantor hereby waives, for the benefit of Beneficiaries: (a) any right to require
any Beneficiary, as a condition of payment or performance by such Guarantor, to (i) proceed against Borrower, any other guarantor
(including any other Guarantor) of the Guaranteed Obligations, or any other Person, (ii) proceed against or exhaust any security
held from Borrower, any such other guarantor, or any other Person, (iii) proceed against or have resort to any balance of
any Deposit Account or credit on the books of any Beneficiary in favor of Borrower or any other Person, or (iv) pursue any
other remedy in the power of any Beneficiary whatsoever, (b) any defense arising by reason of the incapacity, lack of authority,
or any disability or other defense of Borrower or any other Guarantor including any defense based on or arising out of the lack
of validity or the unenforceability of the Guaranteed Obligations or any agreement or instrument relating thereto or by reason
of the cessation of the liability of Borrower or any other Guarantor from any cause other than payment in full of the Guaranteed
Obligations, (c) any defense based upon any statute or rule of law which provides that the obligation of a surety must be
neither larger in amount nor in other respects more burdensome than that of the principal, (d) any defense based upon any
Beneficiary’s errors or omissions in the administration of the Guaranteed Obligations, except behavior which amounts to bad
faith, (e) (i) any principles or provisions of law, statutory or otherwise, which are or might be in conflict with the terms
hereof and any legal or equitable discharge of such Guarantor’s obligations hereunder, (ii) the benefit of any statute
of limitations affecting such Guarantor’s liability hereunder or the enforcement hereof, (iii) any rights to set-offs,
recoupments, and counterclaims, and (iv) promptness, diligence, and any requirement that any Beneficiary protect, secure,
perfect, or insure any security interest or lien or any property subject thereto, (f) notices, demands, presentments, protests,
notices of protest, notices of dishonor, and notices of any action or inaction, including acceptance hereof, notices of default
hereunder, or any agreement or instrument related thereto, notices of any renewal, extension, or modification of the Guaranteed
Obligations or any agreement related thereto, notices of any extension of credit to Borrower, and notices of any of the matters
referred to in Section 7.04 and any right to consent to any thereof, and (g) any defenses or benefits that may be derived
from or afforded by law which limit the liability of or exonerate guarantors or sureties or which may conflict with the terms hereof.

 

    	 	- 116 -	 

     

    

 

Section 7.06       
Guarantors’ Rights of Subrogation, Contribution, etc. Until the Guaranteed Obligations shall have been indefeasibly
paid in full, each Guarantor hereby waives any claim, right, or remedy, direct or indirect, that such Guarantor now has or may
hereafter have against Borrower or any other Guarantor or any of its assets in connection with this Guaranty or the performance
by such Guarantor of its obligations hereunder, in each case whether such claim, right, or remedy arises in equity, under contract,
by statute, under common law, or otherwise and including, without limitation, (a) any right of subrogation, reimbursement,
or indemnification that such Guarantor now has or may hereafter have against Borrower with respect to the Guaranteed Obligations,
(b) any right to enforce, or to participate in, any claim, right, or remedy that any Beneficiary now has or may hereafter
have against Borrower, and (c) any benefit of, and any right to participate in, any collateral or security now or hereafter
held by any Beneficiary. In addition, until the Guaranteed Obligations shall have been indefeasibly paid in full, each Guarantor
shall withhold exercise of any right of contribution such Guarantor may have against any other guarantor (including any other Guarantor)
of the Guaranteed Obligations, including, without limitation, any such right of contribution as contemplated by Section 7.02.
Each Guarantor further agrees that, to the extent the waiver or agreement to withhold the exercise of its rights of subrogation,
reimbursement, indemnification, and contribution as set forth herein is found by a court of competent jurisdiction to be void or
voidable for any reason, any rights of subrogation, reimbursement, or indemnification such Guarantor may have against Borrower
or against any collateral or security, and any rights of contribution such Guarantor may have against any such other guarantor,
shall be junior and subordinate to any rights any Beneficiary may have against Borrower, to all right, title, and interest any
Beneficiary may have in any such collateral or security, and to any right any Beneficiary may have against such other guarantor.
If any amount shall be paid to any Guarantor on account of any such subrogation, reimbursement, indemnification, or contribution
rights at any time when all Guaranteed Obligations shall not have been finally and indefeasibly paid in full, such amount shall
be held in trust for Administrative Agent, on behalf of Beneficiaries, and shall forthwith be paid over to Administrative Agent,
for the benefit of Beneficiaries, to be credited and applied against the Guaranteed Obligations, whether matured or unmatured,
in accordance with the terms hereof.

 

Section 7.07       
Subordination of Other Obligations. Any Indebtedness of Borrower or any Guarantor now or hereafter held by any Guarantor
is hereby subordinated in right of payment to the Guaranteed Obligations, and any such indebtedness collected or received by such
Guarantor after an Event of Default has occurred and is continuing shall be held in trust for Administrative Agent, on behalf of
Beneficiaries, and shall forthwith be paid over to Administrative Agent, for the benefit of Beneficiaries, to be credited and applied
against the Guaranteed Obligations but without affecting, impairing, or limiting in any manner the liability of such Guarantor
under any other provision hereof.

 

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Section 7.08       
Continuing Guaranty. This Guaranty is a continuing guaranty and shall remain in effect until all of the Guaranteed
Obligations shall have been indefeasibly paid in full. Each Guarantor hereby irrevocably waives any right to revoke this Guaranty
as to future transactions giving rise to any Guaranteed Obligations.

 

Section 7.09       
Authority of Guarantors or Borrower. It is not necessary for any Beneficiary to inquire into the capacity or powers
of any Guarantor or Borrower or the officers, directors, or any agents acting or purporting to act on behalf of any of them.

 

Section 7.10       
Financial Condition of Borrower. Any Credit Extension may be made to Borrower or continued from time to time without
notice to or authorization from any Guarantor regardless of the financial or other condition of Borrower at the time of any such
grant or continuation is entered into, as the case may be. No Beneficiary shall have any obligation to disclose or discuss with
any Guarantor its assessment, or any Guarantor’s assessment, of the financial condition of Borrower. Each Guarantor has adequate
means to obtain information from Borrower on a continuing basis concerning the financial condition of Borrower and its ability
to perform its obligations under the Loan Documents, and each Guarantor assumes the responsibility for being and keeping informed
of the financial condition of Borrower and of all circumstances bearing upon the risk of non-payment of the Guaranteed Obligations.
Each Guarantor hereby waives and relinquishes any duty on the part of any Beneficiary to disclose any matter, fact, or thing relating
to the business, operations, or conditions of Borrower now known or hereafter known by any Beneficiary.

 

Section 7.11       
Bankruptcy, etc.

 

(a)              
So long as any Guaranteed Obligations remain outstanding, no Guarantor shall, without the prior written consent of Administrative
Agent acting pursuant to the instructions of Required Lenders, commence or join with any other Person in commencing any bankruptcy,
reorganization, or insolvency case or proceeding of or against Borrower or any other Guarantor. The obligations of Guarantors hereunder
shall not be reduced, limited, impaired, discharged, deferred, suspended, or terminated by any case or proceeding, voluntary or
involuntary, involving the bankruptcy, insolvency, receivership, reorganization, liquidation, or arrangement of Borrower or any
other Guarantor or by any defense which Borrower or any other Guarantor may have by reason of the order, decree, or decision of
any court or administrative body resulting from any such proceeding.

 

(b)              
Each Guarantor acknowledges and agrees that any interest on any portion of the Guaranteed Obligations which accrues after
the commencement of any case or proceeding referred to in clause (a) above (or, if interest on any portion of the Guaranteed
Obligations ceases to accrue by operation of law by reason of the commencement of such case or proceeding, such interest as would
have accrued on such portion of the Guaranteed Obligations if such case or proceeding had not been commenced) shall be included
in the Guaranteed Obligations because it is the intention of Guarantors and Beneficiaries that the Guaranteed Obligations which
are guaranteed by Guarantors pursuant hereto should be determined without regard to any rule of law or order which may relieve
Borrower of any portion of such Guaranteed Obligations. Guarantors will permit any trustee in bankruptcy, receiver, debtor in possession,
assignee for the benefit of creditors, or similar person to pay Administrative Agent, or allow the claim of Administrative Agent
in respect of, any such interest accruing after the date on which such case or proceeding is commenced.

 

    	 	- 118 -	 

     

    

 

(c)              
In the event that all or any portion of the Guaranteed Obligations are paid by Borrower, the obligations of Guarantors hereunder
shall continue and remain in full force and effect or be reinstated, as the case may be, in the event that all or any part of such
payment(s) are rescinded or recovered directly or indirectly from any Beneficiary as a preference, fraudulent transfer, or otherwise,
and any such payments which are so rescinded or recovered shall constitute Guaranteed Obligations for all purposes hereunder.

 

Section 7.12       
Discharge of Guaranty upon Sale of Guarantor. If all of the Capital Stock of any Guarantor or any of its successors
in interest hereunder shall be sold or otherwise disposed of (including by merger or consolidation) in accordance with the terms
and conditions hereof, the Guaranty of such Guarantor or such successor in interest, as the case may be, hereunder shall automatically
be discharged and released without any further action by any Beneficiary or any other Person effective as of the time of such Asset
Sale.

 

ARTICLE
VIII

EVENTS OF DEFAULT

 

Section 8.01       
Events of Default. If any one or more of the following conditions or events shall occur:

 

(a)              
Failure to Make Payments When Due. Failure by Borrower to pay (i) the principal of any Loan when due (whether
at stated maturity, by acceleration, or otherwise), (ii) when due any installment of principal of any Loan, by notice of voluntary
prepayment, by mandatory prepayment, or otherwise, (iii) within three (3) Business Days after the date when due, any interest
on any Loan or any fee (including the Exit Fee) or any other amount due hereunder, or

 

(b)              
Default in Other Agreements. (i) Failure of any Loan Party or any of its respective Subsidiaries to pay when
due any principal of or interest on or any other amount payable in respect of one or more items of Indebtedness (other than Indebtedness
referred to in Section 8.01(a)) in an aggregate principal amount of $1,000,000 or more, in each case beyond the grace period,
if any, provided therefor, or (ii) breach or default by any Loan Party with respect to any other material term of (A) one
or more items of Indebtedness in the individual or aggregate principal amounts referred to in subclause (i) above or
(B) any loan agreement, mortgage, indenture, or other agreement relating to such item(s) of Indebtedness, in each case beyond
the grace period, if any, provided therefor, if the effect of such breach or default is to cause, or to permit the holder or holders
of that Indebtedness (or a trustee on behalf of such holder or holders) to cause, that Indebtedness to become or be declared due
and payable (or subject to a compulsory repurchase or redeemable) or to require the prepayment, redemption, repurchase, or defeasance
of, or to cause Holdings or any of its Subsidiaries to make any offer to prepay, redeem, repurchase, or defease such Indebtedness,
prior to its stated maturity or the stated maturity of any underlying obligation, as the case may be, or

 

    	 	- 119 -	 

     

    

 

(c)              
Breach of Certain Covenants. Failure of any Loan Party, S/B Parent, Global Parent or Liberty Top Parent, as applicable,
to perform or comply with any term or condition contained in Section 2.05, Section 5.01, Section 5.16 or Article
VI, or

 

(d)              
Breach of Representations, etc. Any representation, warranty, certification, or other statement made or deemed made
by any Loan Party, S/B Parent, Global Parent or Liberty Top Parent, as the case may be, in any Loan Document or in any statement
or certificate at any time given by any Loan Party, any of its Subsidiaries, S/B Parent, Global Parent or Liberty Top Parent, as
the case may be, in writing pursuant hereto or thereto or in connection herewith or therewith shall be false in any material respect
(except that such materiality qualifier shall not be applicable to any representations or warranties that already are qualified
or modified as to “materiality” or “Material Adverse Effect” in the text thereof, which representations
and warranties shall be true and correct in all respects subject to such qualification) as of the date made or deemed made, or

 

(e)              
Other Defaults Under Loan Documents. Any Loan Party, S/B Parent, Global Parent or Liberty Top Parent, as the case
may be, shall default in the performance of, or compliance with, any term contained herein or any of the other Loan Documents,
other than any such term referred to in any other Section of this Section 8.01, and such default shall not have been remedied
or waived within 30 days after the earlier of (i) an officer of such Loan Party, S/B Parent, or Global Parent or Liberty Top
Parent, as the case may be, becoming aware of such default or (ii) receipt by Borrower of notice from Administrative Agent
or any Lender of such default, or

 

(f)               
Involuntary Bankruptcy; Appointment of Receiver, etc. (i) A court of competent jurisdiction shall enter a decree
or order for relief in respect of Holdings or any of its Subsidiaries in an involuntary case under the Bankruptcy Code or under
any other applicable bankruptcy, insolvency, or similar law now or hereafter in effect, which decree or order is not stayed, or
any other similar relief shall be granted under any applicable federal or state law, or (ii) an involuntary case shall be
commenced against Holdings or any of its Subsidiaries under the Bankruptcy Code or under any other applicable bankruptcy, insolvency,
or similar law now or hereafter in effect, or a decree or order of a court having jurisdiction in the premises for the appointment
of a receiver, liquidator, sequestrator, trustee, custodian, or other officer having similar powers over Holdings by or any of
its Subsidiaries, or over all or a substantial part of its property, shall have been entered, or there shall have occurred the
involuntary appointment of an interim receiver, trustee, or other custodian of Holdings or any of its Subsidiaries for all or a
substantial part of its property, or a warrant of attachment, execution, or similar process shall have been issued against any
substantial part of the property of Holdings or any of its Subsidiaries, and any such event described in this clause (ii)
shall continue for 60 days without having been dismissed, bonded, or discharged, or

 

(g)              
Voluntary Bankruptcy; Appointment of Receiver, etc. (i) Holdings or any of its Subsidiaries shall have an order
for relief entered with respect to it or shall commence a voluntary case under the Bankruptcy Code or under any other applicable
bankruptcy, insolvency, or similar law now or hereafter in effect, or shall consent to the entry of an order for relief in an involuntary
case, or to the conversion of an involuntary case to a voluntary case, under any such law, or shall consent to the appointment
of or taking possession by a receiver, trustee, or other custodian for all or a substantial part of its property, or Holdings or
any of its Subsidiaries shall make any assignment for the benefit of creditors, or (ii) Holdings or any of its Subsidiaries
shall be unable, or shall fail generally, or shall admit in writing its inability, to pay its debts as such debts become due, or
the Board (or similar governing body) of Holdings or any of its Subsidiaries (or any committee thereof with authority therefor)
shall adopt any resolution or otherwise authorize any action to approve any of the actions referred to herein or in Section
8.01(f), or

 

    	 	- 120 -	 

     

    

 

(h)              
Judgments and Attachments. Any money judgment, writ, or warrant of attachment or similar process involving in the
aggregate at any time an amount in excess of $1,000,000 (in either case to the extent not adequately covered by any indemnity or
by insurance as to which a solvent and unaffiliated insurance company has not denied coverage) shall be entered or filed against
Holdings or any of its Subsidiaries or any of their respective assets and shall remain undischarged, unvacated, unbonded, or unstayed
for a period of 60 days, or

 

(i)                
Dissolution. Any order, judgment, or decree shall be entered against any Loan Party, S/B Parent, Global Parent, or
Liberty Top Parent, decreeing the dissolution or split up of such Loan Party, S/B Parent, Global Parent or Liberty Top Parent,
as the case may be, and such order shall remain undischarged or unstayed for a period in excess of 60 days, or

 

(j)                
Employee Benefit Plans. (i) There shall occur one or more ERISA Events which individually or in the aggregate
that results in or might reasonably be expected to have a Material Adverse Effect during the term hereof, or (ii) there exists
any fact or circumstance that reasonably could be expected to result in the imposition of a Lien or security interest under Section 430(k)
of the Internal Revenue Code or under Section 303(k) of ERISA, or

 

(k)              
Change of Control. A Change of Control shall occur, or

 

(l)                
Guaranties, Collateral Documents, and Other Loan Documents. At any time after the execution and delivery thereof,
(i)  the Guaranty hereunder or under the Parent Guaranty and Collateral Agreement for any reason, other than the satisfaction
in full of all Obligations, shall cease to be in full force and effect (other than in accordance with its terms) or shall be declared
to be null and void or any Guarantor shall repudiate its obligations thereunder, (ii) this Agreement, or any Collateral Documents
representing a material portion of the Collateral Agent’s security interest securing the Obligations, ceases to be in full
force and effect (other than by reason of a release of Collateral in accordance with the terms hereof or thereof or the satisfaction
in full of the Obligations in accordance with the terms hereof) or shall be declared null and void, or Collateral Agent shall not
have or shall cease to have a valid and perfected Lien in any material portion of the Collateral purported to be covered by the
Collateral Documents with the priority required by the relevant Collateral Document, in each case for any reason other than the
failure of Collateral Agent or any Secured Party to take any action within its control, or (iii) S/B Parent, any Loan Party,
Global Parent, or Liberty Top Parent shall contest the validity or enforceability of any Loan Document in writing or deny in writing
that it has any further liability, including with respect to future advances by Lenders, under any Loan Document to which it is
a party,

 

    	 	- 121 -	 

     

    

 

(m)            
Proceedings. The indictment of any Loan Party, any of its Subsidiaries, S/B Parent, Global Parent, or Liberty Top
Parent, under any criminal statute or commencement of criminal or civil proceedings against any Loan Party, any of its Subsidiaries,
S/B Parent, Global Parent, or Liberty Top Parent, pursuant to which statute or proceedings the penalties or remedies sought or
available include forfeiture to any Governmental Authority of any material portion of the property of such Person,

 

(n)              
Cessation of Business. (i) Any Loan Party, any of its Subsidiaries, S/B Parent, Global Parent, or Liberty Top Parent,
is enjoined, restrained, or in any way prevented by the order of any court or any Governmental Authority from conducting all or
any material part of its business for more than 15 days, (ii) any other cessation of a substantial part of the business of Holdings
or any of its Subsidiaries for a period which materially and adversely affects Holdings or any of its Subsidiaries, or (iii) any
material damage to, or loss, theft, or destruction of, any Collateral, whether or not insured, or any strike, lockout, labor dispute,
embargo, condemnation, act of God or public enemy, or other casualty which causes, for more than 15 consecutive days, the cessation
or substantial curtailment of revenue producing activities at a Real Property that, in any case described in clause (i), (ii) or
(iii), results in or could reasonably be expected to have a Material Adverse Effect during the term hereof; or

 

(o)              
Subordinated Indebtedness. (i) Any of the Obligations for any reason shall cease to be “Senior Indebtedness”
or “Designated Senior Indebtedness” (or any comparable terms) under, and as defined in, the documents evidencing or
governing any Indebtedness that is expressly subordinated to the Obligations, (ii) any Indebtedness other than the Obligations
shall constitute “Designated Senior Indebtedness” (or any comparable term) under, and as defined in, the documents
evidencing or governing any Indebtedness that is expressly subordinated to the Obligations, or (iii) the subordination provisions
of the documents evidencing or governing any Indebtedness that is expressly subordinated to the Obligations, shall, in whole or
in part, terminate, cease to be effective, or cease to be legally valid, binding, and enforceable against any holder of the applicable
subordinated Indebtedness;

 

THEN, (A) upon the occurrence of any
Event of Default described in Section 8.01(f) or Section 8.01(g), automatically and (B) upon the occurrence
of any other Event of Default, at the request of (or with the consent of) Required Lenders, upon notice to Borrower by Administrative
Agent, (1) the Commitments, if any, of each Lender having such Commitments shall immediately terminate, (2) each of the
following shall immediately become due and payable, in each case without presentment, demand, protest, or other requirements of
any kind, all of which are hereby expressly waived by each Loan Party, S/B Parent, Global Parent and Liberty Top Parent: (x) the
unpaid principal amount of and accrued interest on the Loans, and (y) all other Obligations, and (3) Agents may enforce any
and all Liens and security interests created pursuant to Collateral Documents and apply the proceeds thereof pursuant to Section
2.15(g).

 

Section 8.02       
Curative Equity.

 

(a)              
Subject to the limitations set forth in clause (f) below, Borrower may cure (and shall be deemed to have
cured) an Event of Default arising out of a breach of the financial covenant set forth in Section 6.08(c) (the “Specified
Financial Covenant”) if Borrower receives the cash proceeds of an investment of Curative Equity within 10 Business Days
after the date such breach occurred. Upon the receipt of Curative Equity pursuant to this Section 8.02 and inclusion of
such Curative Equity in the calculation of Consolidated Liquidity pursuant to this Section 8.02, then no Event of Default
solely with respect to determining compliance with the Specified Financial Covenant shall be deemed to have occurred. For the avoidance
of doubt, no Event of Default arising out of a breach of any of the financial covenants set forth in Section 6.08(a), (b)
or (d) may be cured pursuant to this Section 8.02.

 

    	 	- 122 -	 

     

    

 

(b)              
Borrower shall promptly notify Administrative Agent of its receipt of any proceeds of Curative Equity.

 

(c)              
Any investment of Curative Equity shall be in immediately available funds and, subject to the limitations set forth in clause (f)
below, shall be in an amount equal to the amount required to cause Borrower to be in compliance the Specified Financial Covenant
as at such date.

 

(d)              
Contemporaneously with the receipt and application of Curative Equity, Borrower shall tender an updated Compliance Certificate
that shall (i) include evidence of its receipt of Curative Equity proceeds and (ii) set forth a calculation of the Consolidated
Liquidity (including for such purposes the proceeds of such Curative Equity (broken out separately)), which shall confirm that
on a pro forma basis after taking into account the receipt of the Curative Equity proceeds, Borrower would have been in compliance
with the Specified Financial Covenant as of such date.

 

(e)              
Upon delivery of an updated Compliance Certificate conforming to the requirements of this Section 8.02, any Event
of Default that occurred and is continuing as a result of a breach of any of the Specified Financial Covenant shall be deemed cured
with no further action required by the Required Lenders or any other Person. Prior to the date of the delivery of an updated Compliance
Certificate conforming to the requirements of this Section, any Event of Default that has occurred as a result of a breach of the
Specified Financial Covenant shall be deemed to be continuing. In the event Borrower does not cure the Specified Financial Covenant
as provided in this Section 8.02, the existing Event(s) of Default shall continue unless waived in writing by the Required
Lenders in accordance herewith.

 

(f)               
Notwithstanding the foregoing, Borrower’s rights under this Section 8.02 may (i) be exercised not more
than four times during the term of this Agreement, (ii) not be exercised more than twice during any four consecutive Fiscal
Quarter period, and (iii) may not be exercised more than once during any Fiscal Quarter. The amount of Curative Equity received
during any Fiscal Quarter shall not exceed $5,000,000. All proceeds of Curative Equity shall be held in a deposit account subject
to a Control Agreement until the last day of the Fiscal Quarter during which such Curative Equity was received (any such Fiscal
Quarter, a “Cure Quarter”). Any amount of Curative Equity that is in excess of the amount sufficient to cause
Borrower to be in compliance with the Specified Financial Covenant as at such date shall not constitute Curative Equity. Curative
Equity shall be disregarded for purposes of determining Consolidated EBITDA for any pricing, financial covenant-based condition,
any baskets with respect to the covenants contained in this Agreement, or for any other purposes under this Agreement, and there
shall be no pro forma or other reduction in Indebtedness (via cash netting or otherwise) with the proceeds of any Curative Equity
for purposes of determining compliance with the Specified Financial Covenant or for determining any financial covenant-based conditions,
or baskets with respect to the covenants contained in this Agreement, in each case in the quarter in which such Curative Equity
is used.

 

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ARTICLE
IX

ADMINISTRATIVE AGENT

 

Section 9.01       
Appointment of Agents.

 

(a)              
Guggenheim is hereby appointed Administrative Agent hereunder and under the other Loan Documents, and each Lender hereby
authorizes Guggenheim, in such capacity, to act as its agent in accordance with the terms hereof and the other Loan Documents,
including, without limitation, to make loans and Protective Advances, for such Agent or on behalf of the applicable Lenders as
provided in this Agreement or any other Loan Document and to perform, exercise, and enforce any and all other rights and remedies
of Lenders with respect to the Loan Parties, S/B Parent, Global Parent and Liberty Top Parent, the Obligations, or otherwise related
to any of same to the extent reasonably incidental to the exercise by such Agent of the rights and remedies specifically authorized
to be exercised by such Agent by the terms of this Agreement or any other Loan Parties, S/B Parent, Global Parent or Liberty Top
Parent.

 

(b)              
Guggenheim is hereby appointed Collateral Agent hereunder and under the other Loan Documents, and each Lender hereby authorizes
Guggenheim, in such capacity, to act as its agent in accordance with the terms hereof and the other Loan Documents, including,
without limitation, to make loans and Protective Advances, for such Agent or on behalf of the applicable Lenders as provided in
this Agreement or any other Loan Document and to perform, exercise, and enforce any and all other rights and remedies of Lenders
with respect to the Loan Parties, S/B Parent, Global Parent and Liberty Top Parent, the Obligations, or otherwise related to any
of same to the extent reasonably incidental to the exercise by such Agent of the rights and remedies specifically authorized to
be exercised by such Agent by the terms of this Agreement or any other Loan Parties, S/B Parent, Global Parent or Liberty Top Parent.

 

(c)              
Each Agent hereby agrees to act upon the express conditions contained herein and the other Loan Documents, as applicable.
The provisions of this Article IX are solely for the benefit of Agents and Lenders, and neither any Loan Party, S/B Parent,
nor Global Parent nor Liberty Top Parent shall have any rights as a third party beneficiary of any of the provisions thereof. In
performing its functions and duties hereunder, each Agent shall act solely as an agent of Lenders and does not assume, and shall
not be deemed to have assumed, any obligation towards, or relationship of agency or trust with or for, Holdings or any of its Subsidiaries.

 

Section 9.02       
Powers and Duties. Each Lender irrevocably authorizes each Agent to take such action on such Lender’s behalf
and to exercise such powers, rights, and remedies hereunder and under the other Loan Documents as are specifically delegated or
granted to such Agent by the terms hereof and thereof, together with such powers, rights, and remedies as are reasonably incidental
thereto. Each Agent shall have only those duties and responsibilities that are expressly specified herein and the other Loan Documents.
Each Agent may exercise such powers, rights, and remedies and perform such duties by or through its agents or employees. No Agent
shall have, by reason hereof or any of the other Loan Documents, a fiduciary relationship in respect of any Lender; and nothing
herein or in any of the other Loan Documents, expressed or implied, is intended to or shall be so construed as to impose upon any
Agent any obligations in respect hereof or any of the other Loan Documents except as expressly set forth herein or therein.

 

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Section 9.03       
General Immunity.

 

(a)              
No Responsibility for Certain Matters. No Agent shall be responsible to any Lender for the execution, effectiveness,
genuineness, validity, enforceability, collectability, or sufficiency hereof or any other Loan Document or for any representations,
warranties, recitals, or statements made herein or therein or made in any written or oral statements or in any financial or other
statements, instruments, reports, or certificates or any other documents furnished or made by any Agent to Lenders or by or on
behalf of any Loan Party, S/B Parent, Global Parent or Liberty Top Parent to any Agent or any Lender in connection with the Loan
Documents and the transactions contemplated thereby or for the financial condition or business affairs of any Loan Party or any
other Person liable for the payment of any Obligations, nor shall any Agent be required to ascertain or inquire as to the performance
or observance of any of the terms, conditions, provisions, covenants, or agreements contained in any of the Loan Documents or as
to the use of the proceeds of the Loans or as to the existence or possible existence of any Event of Default or Default or to make
any disclosures with respect to the foregoing. Anything contained herein to the contrary notwithstanding, Administrative Agent
shall not have any liability arising from confirmations of the amount of outstanding Loans.

 

(b)              
Exculpatory Provisions. No Agent nor any of its officers, partners, directors, employees, or agents shall be liable
to Lenders for any action taken or omitted by any Agent under or in connection with any of the Loan Documents except to the extent
caused by any Agent’s gross negligence or willful misconduct, as determined by a court of competent jurisdiction in a final,
non-appealable order. Each Agent shall be entitled to refrain from any act or the taking of any action (including the failure to
take an action) in connection herewith or any of the other Loan Documents or from the exercise of any power, discretion, or authority
vested in it hereunder or thereunder unless and until such Agent shall have received instructions in respect thereof from Required
Lenders (or such other Lenders as may be required to give such instructions under Section 10.05) and, upon receipt of such
instructions from Required Lenders (or such other Lenders, as the case may be), such Agent shall be entitled to act or (where so
instructed) refrain from acting, or to exercise such power, discretion, or authority, in accordance with such instructions. Without
prejudice to the generality of the foregoing, (i) each Agent shall be entitled to rely, and shall be fully protected in relying,
upon any communication, instrument, or document believed by it to be genuine and correct and to have been signed or sent by the
proper Person or Persons, and shall be entitled to rely and shall be protected in relying on opinions and judgments of attorneys
(who may be attorneys for Holdings and its Subsidiaries), accountants, experts, and other professional advisors selected by it,
and (ii) no Lender shall have any right of action whatsoever against any Agent as a result of such Agent acting or (where
so instructed) refraining from acting hereunder or any of the other Loan Documents in accordance with the instructions of Required
Lenders (or such other Lenders as may be required to give such instructions under Section 10.05).

 

    	 	- 125 -	 

     

    

 

(c)              
Notice of Default. Neither Agent shall be deemed to have knowledge or notice of the occurrence of any Default or
Event of Default, except with respect to Events of Default in the payment of principal, interest, and fees required to be paid
to Administrative Agent for the account of Lenders, unless such Agent shall have received written notice from a Lender or the Loan
Party referring to this Agreement, describing such Default or Event of Default and stating that such notice is a “notice
of default.” Such Agent will notify Lenders of its receipt of any such notice. Collateral Agent shall take such action with
respect to any such Default or Event of Default as may be directed by the Required Lenders in accordance with Article VIII;
provided, that unless and until Collateral Agent has received any such direction, Collateral Agent may (but shall not be
obligated to) take such action, or refrain from taking such action, with respect to such Default or Event of Default as it shall
deem advisable or in the best interest of Lenders.

 

Section 9.04       
Agents Entitled to Act as Lender. The agency hereby created shall in no way impair or affect any of the rights and
powers of, or impose any duties or obligations upon, any Agent in its individual capacity as a Lender hereunder. With respect to
its participation in the Loans, each Agent shall have the same rights and powers hereunder as any other Lender and may exercise
the same as if it were not performing the duties and functions delegated to it hereunder, and the term “Lender” shall,
unless the context clearly otherwise indicates, include each Agent in its individual capacity. Any Agent or its Affiliates may
accept deposits from, lend money to, own securities of, and generally engage in any kind of banking, trust, financial advisory,
or other business with Holdings or any of its Affiliates as if it were not performing the duties specified herein and may accept
fees and other consideration from Borrower for services in connection herewith and otherwise without having to account for the
same to Lenders.

 

Section 9.05       
Lenders’ Representations, Warranties and Acknowledgment.

 

(a)              
Each Lender represents and warrants that it has made its own independent investigation of the financial condition and affairs
of Holdings and its Subsidiaries in connection with the Credit Extensions hereunder and that it has made and shall continue to
make its own appraisal of the creditworthiness of Holdings and its Subsidiaries. No Agent shall have any duty or responsibility,
either initially or on a continuing basis, to make any such investigation or any such appraisal on behalf of Lenders or to provide
any Lender with any credit or other information with respect thereto, whether coming into its possession before the making of the
Loans or at any time or times thereafter, and no Agent shall have any responsibility with respect to the accuracy of, or the completeness
of, any information provided to Lenders.

 

(b)              
Each Lender, by delivering its signature page to this Agreement or a Joinder and funding its Term Loan on the Closing Date,
shall be deemed to have acknowledged receipt of, and consented to and approved, each Loan Document and each other document required
to be approved by any Agent, Required Lenders, or Lenders, as applicable on the Closing Date.

 

(c)              
Each Lender (i) represents and warrants that, as of the Closing Date, neither such Lender nor its Affiliates or Related
Funds owns or controls, or owns or controls any Person owning or controlling, any trade debt or Indebtedness of any Loan Party
other than the Obligations or any Capital Stock of any Loan Party, and (ii) covenants and agrees that from and after the Closing
Date neither such Lender nor its Affiliates and Related Funds shall purchase any trade debt or Indebtedness of any Loan Party other
than the Obligations or Capital Stock described in subclause (i) above without the prior written consent of the Administrative
Agent and, so long as no Specified Event of Default has occurred and is continuing, Borrower.

 

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Section 9.06       
Right to Indemnity. EACH LENDER, IN PROPORTION TO ITS PRO RATA SHARE, SEVERALLY AGREES TO INDEMNIFY EACH AGENT, ITS
AFFILIATES, AND ITS RESPECTIVE OFFICERS, PARTNERS, DIRECTORS, TRUSTEES, EMPLOYEES, AND AGENTS OF EACH AGENT (EACH, AN “INDEMNITEE
AGENT PARTY”), TO THE EXTENT THAT SUCH INDEMNITEE AGENT PARTY SHALL NOT HAVE BEEN REIMBURSED BY ANY LOAN PARTY, FOR AND
AGAINST ANY AND ALL LIABILITIES, OBLIGATIONS, LOSSES, DAMAGES, PENALTIES, ACTIONS, JUDGMENTS, SUITS, COSTS, EXPENSES (INCLUDING
COUNSEL FEES AND DISBURSEMENTS), OR DISBURSEMENTS OF ANY KIND OR NATURE WHATSOEVER WHICH MAY BE IMPOSED ON, INCURRED BY, OR ASSERTED
AGAINST SUCH INDEMNITEE AGENT PARTY IN EXERCISING ITS POWERS, RIGHTS, AND REMEDIES OR PERFORMING ITS DUTIES HEREUNDER OR UNDER
THE OTHER LOAN DOCUMENTS OR OTHERWISE IN ITS CAPACITY AS SUCH INDEMNITEE AGENT PARTY IN ANY WAY RELATING TO OR ARISING OUT OF THIS
AGREEMENT OR THE OTHER LOAN DOCUMENTS, IN ALL CASES, WHETHER OR NOT CAUSED BY OR ARISING, IN WHOLE OR IN PART, OUT OF THE COMPARATIVE,
CONTRIBUTORY, OR SOLE NEGLIGENCE OF SUCH INDEMNITEE AGENT PARTY; PROVIDED, THAT NO LENDER SHALL BE LIABLE FOR ANY PORTION
OF SUCH LIABILITIES, OBLIGATIONS, LOSSES, DAMAGES, PENALTIES, ACTIONS, JUDGMENTS, SUITS, COSTS, EXPENSES, OR DISBURSEMENTS RESULTING
FROM SUCH INDEMNITEE AGENT PARTY’S GROSS NEGLIGENCE OR WILLFUL MISCONDUCT, AS DETERMINED BY A COURT OF COMPETENT JURISDICTION
IN A FINAL, NON-APPEALABLE ORDER. IF ANY INDEMNITY FURNISHED TO ANY INDEMNITEE AGENT PARTY FOR ANY PURPOSE SHALL, IN THE OPINION
OF SUCH INDEMNITEE AGENT PARTY, BE INSUFFICIENT OR BECOME IMPAIRED, SUCH INDEMNITEE AGENT PARTY MAY CALL FOR ADDITIONAL INDEMNITY
AND CEASE, OR NOT COMMENCE, TO DO THE ACTS INDEMNIFIED AGAINST UNTIL SUCH ADDITIONAL INDEMNITY IS FURNISHED; PROVIDED, THAT
IN NO EVENT SHALL THIS SENTENCE REQUIRE ANY LENDER TO INDEMNIFY ANY INDEMNITEE AGENT PARTY AGAINST ANY LIABILITY, OBLIGATION, LOSS,
DAMAGE, PENALTY, ACTION, JUDGMENT, SUIT, COST, EXPENSE, OR DISBURSEMENT IN EXCESS OF SUCH LENDER’S PRO RATA SHARE THEREOF;
PROVIDED FURTHER, THAT THIS SENTENCE SHALL NOT BE DEEMED TO REQUIRE ANY LENDER TO INDEMNIFY ANY INDEMNITEE AGENT PARTY AGAINST
ANY LIABILITY, OBLIGATION, LOSS, DAMAGE, PENALTY, ACTION, JUDGMENT, SUIT, COST, EXPENSE, OR DISBURSEMENT DESCRIBED IN THE PROVISO
IN THE IMMEDIATELY PRECEDING SENTENCE.

 

Section 9.07       
Successor Administrative Agent.

 

    	 	- 127 -	 

     

    

 

(a)              
Any Agent may resign at any time by giving thirty days’ (or such shorter period as shall be agreed by the Required
Lenders) prior written notice thereof to Lenders, Borrower, and the other Agent. Upon any such notice of resignation, Required
Lenders shall have the right, with Borrower’s consent (which consent shall not be unreasonably withheld or delayed) (other
than during the existence of an Event of Default, provided that during the existence of an Event of Default, the Required Lenders
shall give five (5) Business Days’ prior notice to Borrower), to appoint a successor Agent that is not a Disqualified Institution.
If no successor shall have been so appointed by the Required Lenders and shall have accepted such appointment within 30 days after
the retiring Agent gives notice of its resignation, then the retiring Agent may, on behalf of Lenders, appoint a successor Administrative
Agent or Collateral Agent meeting the qualifications set forth above (including that such successor not be a Disqualified Institution),
as applicable, from among Lenders. Upon the acceptance of any appointment as Administrative Agent or Collateral Agent, as applicable,
hereunder by a successor Administrative Agent or Collateral Agent, as the case may be, that successor Administrative Agent or Collateral
Agent, as applicable, shall thereupon succeed to and become vested with all the rights, powers, privileges and duties of the retiring
Agent, and the retiring Agent shall promptly (i) transfer to such successor Administrative Agent or Collateral Agent, as applicable,
all sums, Securities, and other items of Collateral held under the Collateral Documents, together with all records and other documents
necessary or appropriate in connection with the performance of the duties of the successor Administrative Agent or Collateral Agent,
as applicable, under the Loan Documents, and (ii) execute and deliver to such successor Administrative Agent or Collateral
Agent, as applicable, such amendments to financing statements and take such other actions, as may be necessary or appropriate in
connection with the assignment to such successor Administrative Agent or Collateral Agent, as applicable, of the security interests
created under the Collateral Documents, whereupon such retiring Agent shall be discharged from its duties and obligations hereunder.
Notwithstanding the foregoing, if no successor Administrative Agent or Collateral Agent, as applicable, has accepted an appointment
by the retiring Agent, on behalf of the Lenders, within 30 days after the retiring Agent appoints such successor Agent, such retiring
Agent’s resignation shall be deemed effective, and Borrower shall appoint the successor Administrative Agent or Collateral
Agent, as applicable, on behalf of the Lenders, without their further consent. After any retiring Agent’s resignation hereunder
as Administrative Agent or Collateral Agent, as applicable, the provisions of this Article IX shall inure to its benefit
as to any actions taken or omitted to be taken by it while it was Administrative Agent or Collateral Agent, as applicable, hereunder.

 

(b)              
Notwithstanding anything herein to the contrary, any Agent may assign their rights and duties as Administrative Agent or
Collateral Agent, as applicable, hereunder to an Affiliate of Guggenheim without the prior written consent of, or prior written
notice to, Borrower or Lenders; provided, that Borrower and Lenders may deem and treat such assigning Agent as Administrative
Agent or Collateral Agent, as applicable, for all purposes hereof, unless and until such assigning Agent provides written notice
to Borrower and Lenders of such assignment. Upon such assignment, such Affiliate shall succeed to and become vested with all rights,
powers, privileges and duties as Administrative Agent or Collateral Agent, as applicable, hereunder and under the other Loan Documents.

 

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(c)              
Each Agent may perform any and all of its duties and exercise its rights and powers under this Agreement or under any other
Loan Document by or through any one or more sub-agents appointed by such Agent. Each Agent and any such sub-agent may perform any
and all of its duties and exercise its rights and powers by or through its respective Affiliates. The exculpatory, indemnification,
and other provisions of Section 9.03, Section 9.06, and this Section 9.07 shall apply to any of the Affiliates
of each Agent and shall apply to their respective activities in connection with the syndication of the credit facilities provided
for herein as well as activities as Administrative Agent or Collateral Agent, as applicable. All of the rights, benefits, and privileges
(including the exculpatory and indemnification provisions) of Section 9.03, Section 9.06, and this Section 9.07
shall apply to any such sub-agent and to the Affiliates of any such sub-agent and shall apply to their respective activities as
sub-agent as if such sub-agent and Affiliates were named herein. Notwithstanding anything herein to the contrary, with respect
to each sub-agent appointed by any Agent, (i) such sub-agent shall be a third party beneficiary under this Agreement with
respect to all such rights, benefits, and privileges (including exculpatory and rights to indemnification) and shall have all of
the rights, benefits, and privileges of a third party beneficiary, including an independent right of action to enforce such rights,
benefits, and privileges (including exculpatory rights and rights to indemnification) directly, without the consent or joinder
of any other Person, against any or all of the Loan Parties, S/B Parent, Global Parent, Liberty Top Parent and Lenders, (ii) such
rights, benefits, and privileges (including exculpatory rights and rights to indemnification) shall not be modified or amended
without the consent of such sub-agent, and (iii) such sub-agent shall only have obligations to Administrative Agent or Collateral
Agent, as applicable, and not to any Loan Party, Lender, or any other Person and no Loan Party, Lender, or any other Person shall
have the rights, directly or indirectly, as a third party beneficiary or otherwise, against such sub-agent.

 

Section 9.08       
Collateral Documents and Guaranty.

 

(a)              
Agents Under Collateral Documents and Guaranty. Each Lender hereby further authorizes Administrative Agent or Collateral
Agent, as applicable, on behalf of and for the benefit of Lenders, to be the agent for, and representative of, Lenders with respect
to the Guaranty, the Collateral, and the Collateral Documents. Subject to Section 10.05, without further written consent
or authorization from Lenders, Administrative Agent or Collateral Agent, as applicable, may execute any documents or instruments
necessary to (i) release any Lien encumbering any item of Collateral that is the subject of a sale or other disposition of
assets permitted hereby or to which Required Lenders (or such other Lenders as may be required to give such consent under Section
10.05) have otherwise consented, or (ii) release any Guarantor from the Guaranty pursuant to Section 7.12 or with
respect to which Required Lenders (or such other Lenders as may be required to give such consent under Section 10.05) have
otherwise consented.

 

(b)              
Right to Realize on Collateral and Enforce Guaranty. Anything contained in any of the Loan Documents to the contrary
notwithstanding, Borrower, Administrative Agent, Collateral Agent, and each Lender hereby agree that (i) no Lender shall have
any right individually to realize upon any of the Collateral or to enforce the Guaranty, it being understood and agreed that all
powers, rights, and remedies hereunder may be exercised solely by Collateral Agent, on behalf of Lenders, in accordance with the
terms hereof and all powers, rights, and remedies under the Collateral Documents may be exercised solely by Collateral Agent, and
(ii) in the event of a foreclosure by Collateral Agent on any of the Collateral pursuant to a public or private sale or any
sale of the Collateral in a case under the Bankruptcy Code, Collateral Agent or any Lender may be the purchaser of any or all of
such Collateral at any such sale and Collateral Agent, as agent for, and representative of, Secured Parties (but not any Lender
or Lenders in its or their respective individual capacities unless Required Lenders shall otherwise agree in writing) shall be
entitled, for the purpose of bidding and making settlement or payment of the purchase price for all or any portion of the Collateral
sold at any such public sale, to use and apply any of the Obligations as a credit on account of the purchase price for any collateral
payable by Collateral Agent at such sale.

 

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Section 9.09       
Agency for Perfection. Each Agent and each Lender hereby appoints each other Agent and each other Lender as agent
and bailee for the purpose of perfecting the security interests in and liens upon the Collateral in assets which, in accordance
with Article 9 of the UCC, can be perfected only by possession or control (or where the security interest of a secured party
with possession or control has priority over the security interest of another secured party), and each Agent and each Lender hereby
acknowledges that it holds possession of or otherwise controls any such Collateral for the benefit of the Agents and Lenders as
secured party. Should Administrative Agent or any Lender obtain possession or control of any such Collateral, Administrative Agent
or such Lender shall notify Collateral Agent thereof, and, promptly upon Collateral Agent’s request therefor shall deliver
such Collateral to Collateral Agent or in accordance with Collateral Agent’s instructions. In addition, Collateral Agent
shall also have the power and authority hereunder to appoint such other sub-agents as may be necessary or required under applicable
state law or otherwise to perform its duties and enforce its rights with respect to the Collateral and under the Loan Documents.
Each Loan Party by its execution and delivery of this Agreement hereby consents to the foregoing.

 

Section 9.10       
[Reserved].

 

Section 9.11       
Reports and Other Information; Confidentiality; Disclaimers. By becoming a party to this Agreement, each Lender and
other Agent:

 

(a)              
is deemed to have requested that Administrative Agent furnish such Lender, promptly after it becomes available, a copy of
each field audit or examination report with respect to Holdings or its Subsidiaries (each, a “Report” and, collectively,
the “Reports”) prepared by or at the request of Administrative Agent, and Administrative Agent shall so furnish
each Lender and Agent with such Reports,

 

(b)              
expressly agrees and acknowledges that Administrative Agent does not (i) make any representation or warranty as to
the accuracy of any Report and (ii) shall not be liable for any information contained in any Report,

 

(c)              
expressly agrees and acknowledges that the Reports are not comprehensive audits or examinations, and that Administrative
Agent or other party performing any audit or examination will inspect only specific information regarding Holdings, the Borrower
and its Subsidiaries and will rely significantly upon Holdings’ and its Subsidiaries’ books and records, as well as
on representations of such Person’s personnel,

 

    	 	- 130 -	 

     

    

 

(d)              
agrees to keep all Reports and other material, non-public information regarding Holdings and its Subsidiaries and their
operations, assets, and existing and contemplated business plans in a confidential manner in accordance with Section 10.17,
and

 

(e)              
without limiting the generality of any other indemnification provision contained in this Agreement, agrees: (i) to
hold Administrative Agent and any other Lender or Agent preparing a Report harmless from any action the indemnifying Lender or
Agent may take or fail to take or any conclusion the indemnifying Lender or Agent may reach or draw from any Report in connection
with any loans or other credit accommodations that the indemnifying Lender or Agent has made or may make to Borrower, or the indemnifying
Lender’s or Agent’s participation in, or the indemnifying Lender’s or Agent’s purchase of, a loan or loans
of Borrower, and (ii) to pay and protect, and indemnify, defend, and hold Administrative Agent, and any such other Lender
or Agent preparing a Report, harmless from and against, the claims, actions, proceedings, damages, costs, expenses, and other amounts
(including attorneys’ fees and costs) incurred by Administrative Agent and any such other Lender or Agent preparing a Report
as the direct or indirect result of any third parties who might obtain all or part of any Report through the indemnifying Lender
or Agent.

 

In addition to the foregoing:
(x) any Lender or other Agent may from time to time request of Administrative Agent in writing that Administrative Agent provide
to such Lender or other Agent a copy of any report or document provided by Holdings or its Subsidiaries to Administrative Agent
that has not been contemporaneously provided by Holdings or such Subsidiary to such Lender or other Agent, and, upon receipt of
such request, Administrative Agent promptly shall provide a copy of same to such Lender, (y) to the extent that Administrative
Agent is entitled, under any provision of the Loan Documents, to request additional reports or information from Holdings or its
Subsidiaries, any Lender or other Agent may, from time to time, reasonably request Administrative Agent to exercise such right
as specified in such Lender’s or other Agent’s notice to Administrative Agent, whereupon Administrative Agent may (and
upon the request of the Required Lenders promptly shall) request of Holdings or Borrower the additional reports or information
reasonably specified by such Lender or other Agent (or by Required Lenders), and, upon receipt thereof from Holdings or Borrower
or such Subsidiary, Administrative Agent promptly shall provide a copy of same to such Lender or other Agent (or to Required Lenders),
and (z) any time that Administrative Agent renders to Borrower a statement regarding the Loan Account, Administrative Agent
shall send a copy of such statement to each Lender.

 

ARTICLE
X

MISCELLANEOUS

 

Section 10.01   
Notices.

 

(a)              
Notices Generally. Unless otherwise specifically provided herein, any notice or other communication herein required
or permitted to be given to a Loan Party, S/B Parent, Global Parent, Liberty Top Parent, Collateral Agent, or Administrative Agent
shall be sent to such Person’s address as set forth on Appendix B or in the other relevant Loan Document, and
in the case of any Lender, the address as indicated on Appendix B or otherwise indicated to Administrative Agent in
writing. Each notice hereunder shall be in writing and may be personally served, or sent by facsimile or United States mail or
courier service, and shall be deemed to have been given when delivered in person or by courier service and signed for against receipt
thereof, upon receipt of facsimile, or three (3) Business Days after depositing it in the United States mail with postage prepaid
and properly addressed; provided, that no notice to any Agent shall be effective until received by such Agent. Any Loan
Party, S/B Parent, Global Parent or Liberty Top Parent may change its address, facsimile number or email address for notices and
other communications hereunder by notice to the Administrative Agent, and any Agent may change its address, facsimile number or
email address for notices and other communications hereunder by notice to the Loan Parties, S/B Parent, Global Parent, Liberty
Top Parent and the other Agent (which notice to such other Agent shall not be required if both Agents are the same Person).

 

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(b)              
Electronic Communications.

 

(i)                       
Each of the Agents and Borrower may, in its discretion, agree to accept notices and other communications to it hereunder
by electronic communications pursuant to procedures approved by it; provided, that approval of such procedures may be limited
to particular notices or communications. Notices and other communications to Lenders hereunder may be delivered or furnished by
electronic communication (including e-mail and Internet or intranet websites) pursuant to procedures approved by the Agents,
provided, that the foregoing shall not apply to notices to any Lender pursuant to ARTICLE II if such Lender has notified
the Agents that it is incapable of receiving notices under such Article by electronic communication.

 

(ii)                       
Unless Administrative Agent otherwise prescribes, (A) notices and other communications sent to an e-mail address shall
be deemed received upon the sender’s receipt of an acknowledgement from the intended recipient (such as by the “return
receipt requested” function, as available, return e-mail, or other written acknowledgement) and (B) notices or communications
posted to an Internet or intranet website shall be deemed received upon the deemed receipt by the intended recipient, at its e-mail
address as described in the foregoing clause (A), of notification that such notice or communication is available and
identifying the website address therefor; provided, that for both subclauses (A) and (B) above,
if such notice, email, or other communication is not sent during the normal business hours of the recipient, such notice or communication
shall be deemed to have been sent at the opening of business on the next Business Day for the recipient.

 

Section 10.02   
Expenses. Whether or not the transactions contemplated hereby shall be consummated, Borrower agrees to pay promptly
(a) all of each Agent’s reasonable and documented out-of-pocket costs and expenses of preparation of the Loan Documents
and any consents, amendments, waivers, or other modifications thereto, (b) all the reasonable and documented fees and reasonable
and documented out-of-pocket expenses and disbursements of one primary counsel to Agents, taken as a whole, in connection with
the negotiation, preparation, execution, and administration of the Loan Documents and any consents, amendments, waivers, or other
modifications thereto and any other documents or matters requested by Borrower, (c) all the reasonable and documented out-of-pocket
costs and reasonable and documented out-of-pocket expenses of creating and perfecting Liens in favor of Collateral Agent, for the
benefit of Secured Parties, including filing and recording fees, expenses and taxes, stamp or documentary taxes (in each case,
without duplication of any indemnification obligation under Section 2.19), search fees, title insurance premiums, and reasonable
and documented fees and reasonable and documented out-of-pocket fees, expenses, and disbursements of counsel to each Agent and
of counsel providing any opinions that any Agent or Required Lenders may request in respect of the Collateral or the Liens created
pursuant to the Collateral Documents, (d) all of each all the reasonable and documented out-of-pocket costs and expenses (including
the reasonable and documented fees and reasonable and documented out-of-pocket expenses and disbursements, of any appraisers, field
examiners, asset-based lending service providers, consultants, advisors, and agents (whether internal or external) employed or
retained by Collateral Agent and its counsel) in connection with the valuation of and the custody or preservation of any of the
Collateral; provided that the such costs, expenses and fees shall be subject to the limitations set forth in Section
5.06, (e) all the reasonable and documented out-of-pocket costs and expenses of Agents and Lenders in connection with
the attendance at any meetings in connection with this Agreement and the other Loan Documents (including the meetings referred
to in Section 5.07 and excluding, for avoidance of doubt, the inspections referred to in Section 5.06), (f) all
other reasonable and documented out-of-pocket costs and expenses incurred by each Agent in connection with the negotiation, preparation,
and execution of the Loan Documents and any consents, amendments, waivers, or other modifications thereto and the transactions
contemplated thereby (limited, in the case of any legal expenses, to the reasonable and documented fees and reasonable and documented
out-of-pocket disbursements of one primary counsel to Agents, taken as a whole), and (g) after the occurrence of an Event
of Default, all reasonable and documented out-of-pocket costs and expenses, including reasonable and documented attorneys’
fees and reasonable and documented out-of-pocket costs of settlement, incurred by any Agent and Lenders in enforcing any Obligations
of, or in collecting any payments due from, any Loan Party, S/B Parent, Global Parent or Liberty Top Parent hereunder or under
the other Loan Documents by reason of such Event of Default (including in connection with the sale of, collection from, or other
realization upon any of the Collateral or the enforcement of the Guaranty or in connection with any refinancing or restructuring
of the credit arrangements provided hereunder in the nature of a “work out” or pursuant to any Insolvency Proceeding)
(limited, in the case of legal expenses, to the reasonable and documented fees and reasonable and documented out-of-pocket disbursements
of one primary counsel (to be retained by the Administrative Agent) to all Agents and Lenders, taken as a whole); provided
that, in any case in which the reimbursement of expenses for counsel is limited to one primary counsel, if reasonably necessary,
Borrower shall also pay promptly pay reasonable and documented fees and reasonable and documented out-of-pocket disbursements of
(x) one local counsel in any relevant jurisdiction (which may include a single firm of counsel acting in multiple jurisdictions)
and, (y) in the case of an actual or perceived conflict of interest where any such Person affected by such conflict informs Borrower
of such conflict, in each case, a single additional firm of counsel in each relevant jurisdiction for all similarly situated affected
Persons).

 

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Section 10.03   
Indemnity.

 

(a)              
IN ADDITION TO THE PAYMENT OF EXPENSES PURSUANT TO SECTION 10.02, WHETHER OR NOT THE TRANSACTIONS CONTEMPLATED HEREBY
SHALL BE CONSUMMATED, EACH LOAN PARTY AGREES TO DEFEND (SUBJECT TO INDEMNITEES’ SELECTION OF COUNSEL), INDEMNIFY, PAY, AND
HOLD HARMLESS EACH AGENT AND LENDER, THEIR AFFILIATES, AND EACH OF THEIR RESPECTIVE OFFICERS, PARTNERS, DIRECTORS, TRUSTEES, EMPLOYEES,
AND AGENTS (EACH, AN “INDEMNITEE”), FROM AND AGAINST ANY AND ALL INDEMNIFIED LIABILITIES, IN ALL CASES, WHETHER
OR NOT CAUSED BY OR ARISING, IN WHOLE OR IN PART, OUT OF THE COMPARATIVE, CONTRIBUTORY, OR SOLE NEGLIGENCE OF SUCH INDEMNITEE;
PROVIDED, THAT NO LOAN PARTY SHALL HAVE ANY OBLIGATION TO ANY INDEMNITEE HEREUNDER WITH RESPECT TO ANY INDEMNIFIED LIABILITIES
(I) TO THE EXTENT SUCH INDEMNIFIED LIABILITIES ARISE FROM THE BAD FAITH, GROSS NEGLIGENCE OR WILLFUL MISCONDUCT, AS DETERMINED
BY A COURT OF COMPETENT JURISDICTION IN A FINAL, NON-APPEALABLE ORDER OR JUDGMENT, OF THAT INDEMNITEE OR ANY OF ITS OFFICERS, PARTNERS,
DIRECTORS, TRUSTEES, EMPLOYEES, OR AGENTS OR (II) TO THE EXTENT SUCH INDEMNIFIED LIABILITIES ARISE FROM A CLAIM, ACTION, LITIGATION,
INVESTIGATION OR OTHER PROCEEDING THAT DOES NOT ARISE FROM ANY ACT OR OMISSION BY ANY LOAN PARTY OR ANY OFFICER, PARTNER, DIRECTOR,
TRUSTEE, EMPLOYEE OR AGENT OF ANY LOAN PARTY AND THAT IS BROUGHT BY ANY INDEMNITEE AGAINST ANOTHER INDEMNITEE (AND EACH INDEMNITEE,
BY ACCEPTING THE BENEFITS HEREOF, AGREES TO PROMPTLY REFUND OR RETURN ANY INDEMNITY RECEIVED HEREUNDER TO THE EXTENT IT IS LATER
DETERMINED BY A FINAL, NON-APPEALABLE ORDER OR JUDGMENT OF A COURT OF COMPETENT JURISDICTION THAT SUCH INDEMNITEE IS NOT ENTITLED
THERETO). TO THE EXTENT THAT THE UNDERTAKINGS TO DEFEND, INDEMNIFY, PAY, AND HOLD HARMLESS SET FORTH IN THIS SECTION 10.03
MAY BE UNENFORCEABLE IN WHOLE OR IN PART BECAUSE THEY ARE VIOLATIVE OF ANY LAW OR PUBLIC POLICY, THE APPLICABLE LOAN PARTY SHALL
CONTRIBUTE THE MAXIMUM PORTION THAT IT IS PERMITTED TO PAY AND SATISFY UNDER APPLICABLE LAW TO THE PAYMENT AND SATISFACTION OF
ALL INDEMNIFIED LIABILITIES INCURRED BY INDEMNITEES OR ANY OF THEM.

 

    	 	- 133 -	 

     

    

 

(b)              
To the extent permitted by applicable law, no Loan Party shall assert, and each Loan Party hereby waives, any claim against
Lenders, Agents, and their respective Affiliates, directors, employees, attorneys, or agents, on any theory of liability, for special,
indirect, consequential, or punitive damages (as opposed to direct or actual damages) (whether or not the claim therefor is based
on contract, tort, or duty imposed by any applicable legal requirement) arising out of, in connection with, as a result of, or
in any way related to, this Agreement or any Loan Document or any agreement or instrument contemplated hereby or thereby or referred
to herein or therein, the transactions contemplated hereby or thereby, any Loan or the use of the proceeds thereof, or any act
or omission or event occurring in connection therewith, and Holdings and Borrower hereby waives, releases, and agrees not to sue
upon any such claim or any such damages, whether or not accrued and whether or not known or suspected to exist in its favor.

 

Section 10.04   
Setoff. In addition to any rights now or hereafter granted under applicable law and not by way of limitation of any
such rights, upon the occurrence of any Event of Default, each Lender and its respective Affiliates are hereby authorized by each
Loan Party at any time or from time to time, subject to the consent of Administrative Agent (such consent not to be unreasonably
withheld or delayed), without notice to any Loan Party or to any other Person (other than Administrative Agent), any such notice
being hereby expressly waived, to set off and to appropriate and to apply any and all deposits (general or special, including Indebtedness
evidenced by certificates of deposit, whether matured or unmatured, but not including trust accounts (in whatever currency)) and
any other Indebtedness at any time held or owing by such Lender and its respective Affiliates to or for the credit or the account
of any Loan Party (in whatever currency) against and on account of the obligations and liabilities of any Loan Party to such Lender
and its respective Affiliates hereunder, or with any other Loan Document, irrespective of whether or not (a) such Lender and
its respective Affiliates shall have made any demand hereunder, (b) the principal of, or the interest on, the Loans or any
other amounts due hereunder shall have become due and payable pursuant to Article II and although such obligations and liabilities,
or any of them, may be contingent or unmatured, or (c) such obligation or liability is owed to a branch or office of such
Lender different from the branch or office holding such deposit or obligation or such Indebtedness.

 

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Section 10.05   
Amendments and Waivers.

 

(a)              
Required Lenders’ Consent. Subject to Sections 10.05(b) and 10.05(c), (i) no amendment,
modification, termination, or waiver of any provision of the Loan Documents shall in any event be effective without the written
concurrence of the Loan Parties party to such Loan Document or S/B Parent, Global Parent or Liberty Top Parent, as the case may
be, and (ii) no consent to any departure by any Loan Party, S/B Parent, Global Parent or Liberty Top Parent from any provision
of the Loan Documents, shall in any event be effective without the written concurrence of Administrative Agent and the Required
Lenders.

 

(b)              
Affected Lenders’ Consent. Without the written consent of each Lender (other than a Defaulting Lender) that
would be adversely affected thereby, no amendment, modification, termination, or consent shall be effective if the effect thereof
would:

 

(i)                       
extend the scheduled final maturity of any Loan or Note,

 

(ii)                       
waive, reduce, or postpone any scheduled repayment (but not prepayment),

 

(iii)                       
reduce the rate of interest on any Loan (other than any waiver of any increase in the interest rate applicable to any Loan
pursuant to Section 2.09) or any fee payable hereunder,

 

(iv)                       
extend the time for payment of any such interest or the Exit Fee,

 

(v)                       
reduce the principal amount of any Loan,

 

(vi)                       
amend, modify, terminate, or waive (A) any pro rata sharing, payment, or setoff provision of any Loan Document (including,
without limitation, Section 2.16 of this Agreement) or (B) any other provision of a Loan Document, in each case, in a manner
that would alter (or have the effect of altering) the pro rata allocation among the Lenders of any payments, disbursements, or
setoffs, or

 

    	 	- 135 -	 

     

    

 

(vii)                       
consent to the assignment or transfer by any Loan Party, S/B Parent, Global Parent or Liberty Top Parent of any of its material
rights and obligations under any Loan Document.

 

(c)              
Other Consents. No amendment, modification, termination, or waiver of any provision of the Loan Documents, or consent
to any departure by any Loan Party, S/B Parent, Global Parent or Liberty Top Parent therefrom, shall:

 

(i)                       
amend, modify, terminate, or waive any provision of Section 10.05(b) or this Section 10.05(c) without the
consent of each Lender,

 

(ii)                       
amend the definition of “Required Lenders” or “Pro Rata Share” without the consent of each Lender,

 

(iii)                       
release all or a material portion of the Guaranty or release (or subordination of the Collateral Agent’s liens on)
all or a material portion of the Collateral, in each case, in any transaction or series of related transactions (other than in
connection with permitted asset sales, permitted dispositions, permitted mergers, permitted liquidations or dissolutions or as
otherwise permitted under the Loan Documents) without the consent of each Lender,

 

(iv)                       
subordinate any of the Obligations, or any Liens on any portion of the Collateral created by this Agreement or any other
Loan Document (other than to the extent permitted by Section 6.02), without the consent of each Lender, or

 

(v)                       
amend, modify, terminate, or waive any provision of Article IX as the same applies to any Agent, or any other provision
hereof as the same applies to the rights or obligations of any Agent, in each case without the consent of such Agent.

 

(d)              
Technical Amendments.Notwithstanding the foregoing, this Agreement may be amended solely with the consent of
Administrative Agent and Borrower without the need to obtain the consent of any other Lender if such amendment is delivered in
order to (i) correct or cure (A) ambiguities, errors, omissions, or defects or (B) incorrect cross-references or
similar inaccuracies or (ii) effectuate administrative changes of a technical or immaterial nature.

 

(e)              
Execution of Amendments, etc. Administrative Agent may, but shall have no obligation to, with the concurrence of
any Lender, execute amendments, modifications, waivers, or consents on behalf of such Lender. Any waiver or consent shall be effective
only in the specific instance and for the specific purpose for which it was given. No notice to or demand on any Loan Party, S/B
Parent, Global Parent or Liberty Top Parent in any case shall entitle any Loan Party, S/B Parent, Global Parent or Liberty Top
Parent to any other or further notice or demand in similar or other circumstances. Any amendment, modification, termination, waiver,
or consent effected in accordance with this Section 10.05 shall be binding upon each Lender at the time outstanding, each
future Lender, and, if signed by a Loan Party, S/B Parent, Global Parent, or Liberty Top Parent, by such of such Loan Party, S/B
Parent, Global Parent and Liberty Top Parent signatory thereto.

 

    	 	- 136 -	 

     

    

 

Section 10.06   
Successors and Assigns; Participations.

 

(a)              
Generally. This Agreement shall be binding upon the parties hereto and their respective successors and assigns and
shall inure to the benefit of the parties hereto and the successors and assigns of Lenders; provided, that any assignment
that is not permitted pursuant to the terms of this Agreement shall be absolutely void ab initio. No rights or obligations
of a Loan Party, S/B Parent, Global Parent or Liberty Top Parent hereunder or under any other Loan Document nor any interest therein
may be assigned or delegated by any Loan Party, S/B Parent, Global Parent or Liberty Top Parent without the prior written consent
of all Lenders. Nothing in this Agreement, expressed or implied, shall be construed to confer upon any Person (other than the parties
hereto, Indemnitee Agent Parties under Section 9.06, Indemnitees under Section 10.03, their respective successors
and assigns permitted hereby, and, to the extent expressly contemplated hereby, Affiliates of Administrative Agent and each Lender)
any legal or equitable right, remedy, or claim under or by reason of this Agreement.

 

(b)              
Register. Borrower, Administrative Agent, and Lenders shall deem and treat the Persons listed as Lenders in the Register
as the holders and owners of the corresponding Commitments and Loans listed therein for all purposes hereof, and no assignment
or transfer of any such Commitment or Loan shall be effective, in each case, unless and until an Assignment Agreement effecting
the assignment or transfer thereof shall have been delivered to and accepted by Administrative Agent and recorded in the Register
as provided in Section 10.06(e). Prior to such recordation, all amounts owed with respect to the applicable Commitment or
Loan shall be owed to the Lender listed in the Register as the owner thereof, and any request, authority, or consent of any Person
who, at the time of making such request or giving such authority or consent, is listed in the Register as a Lender shall be conclusive
and binding on any subsequent holder, assignee, or transferee of the corresponding Commitments or Loans.

 

(c)              
Right to Assign. Each Lender shall have the right at any time to sell, assign, or transfer all or a portion of its
rights and obligations under this Agreement, including, without limitation, all or a portion of its Commitment or Loans owing to
it or other Obligations (provided, that each such assignment shall be of a uniform, and not varying, percentage of all rights
and obligations under and in respect of any Loan and any related Commitments):

 

(i)                       
to any Person meeting the criteria of clause  (a) of the definition of the term of “Eligible Assignee”
upon the giving of notice to Borrower and Administrative Agent, and

 

(ii)                       
to any Person otherwise constituting an Eligible Assignee with the consent of Administrative Agent and Borrower (such consent
not be unreasonably withheld or delayed); provided, that (A) no consent of Borrower shall be required if a Specified
Event of Default has occurred and is continuing, (B) Borrower shall be deemed to have consented to any such assignment unless it
shall object thereto by written notice to the Administrative Agent within ten (10) Business Days after having received notice thereof,
and (C) each such assignment pursuant to this Section 10.06(c)(ii) shall be in an aggregate amount of not less than
$1,000,000 (or such lesser amount as may be agreed to by Borrower and Administrative Agent or as shall constitute the aggregate
amount of the Term Loan of the assigning Lender) with respect to the assignment of Term Loans.

 

    	 	- 137 -	 

     

    

 

(d)              
Mechanics. The assigning Lender and the assignee thereof shall (i) execute and deliver to Administrative Agent an
Assignment Agreement, together with such forms or certificates with respect to United States federal income tax withholding matters
as the assignee under such Assignment Agreement may be required to deliver to Administrative Agent pursuant to Section 2.19(d),
and (ii) pay to Administrative Agent a processing and recordation fee of $3,500 (which fee may be waived or reduced in the sole
discretion of the Administrative Agent); provided that, notwithstanding anything to the contrary herein, such processing
and recordation fee shall not constitute Indemnified Liabilities.

 

(e)              
Notice of Assignment. Upon its receipt and acceptance of a duly executed and completed Assignment Agreement and any
forms or certificates required by this Agreement in connection therewith, Administrative Agent shall record the information contained
in such Assignment Agreement in the Register, shall give prompt notice thereof to Borrower, and shall maintain a copy of such Assignment
Agreement.

 

(f)               
Representations and Warranties of Assignee. Each Lender, upon execution and delivery hereof or upon executing and
delivering an Assignment Agreement, as the case may be, represents and warrants as of the Closing Date or as of the applicable
Effective Date (as defined in the applicable Assignment Agreement) that (i) it is an Eligible Assignee, (ii) it has experience
and expertise in the making of, or investing in, commitments or loans such as the applicable Commitments or Loans, as the case
may be, (iii) it will make or invest in, as the case may be, its Commitments or Loans for its own account in the ordinary
course of its business and without a view to distribution of such Commitments or Loans within the meaning of the Securities Act
or the Exchange Act or other federal securities laws (it being understood that, subject to the provisions of this Section 10.06,
the disposition of such Loans or any interests therein shall at all times remain within its exclusive control), and (iv) such
Lender does not own or control, or own or control any Person owning or controlling, any trade debt or Indebtedness of any Loan
Party other than the Obligations or any Capital Stock of any Loan Party (as to this clause (iv), unless such assignment was approved
by Administrative Agent and, so long as no Specified Event of Default had occurred and was continuing, Borrower).

 

(g)              
Effect of Assignment. Subject to the terms and conditions of this Section 10.06, as of the later (i) of
the “Effective Date” specified in the applicable Assignment Agreement or (ii) the date such assignment is recorded
in the Register: (A) the assignee thereunder shall have the rights and obligations of a “Lender” hereunder to
the extent such rights and obligations hereunder have been assigned to it pursuant to such Assignment Agreement and shall thereafter
be a party hereto and a “Lender” for all purposes hereof, (B) the assigning Lender thereunder shall, to the extent
that rights and obligations hereunder have been assigned thereby pursuant to such Assignment Agreement, relinquish its rights (other
than any rights which survive the termination hereof under Section 10.08) and be released from its obligations hereunder
(and, in the case of an Assignment Agreement covering all or the remaining portion of an assigning Lender’s rights and obligations
hereunder, such Lender shall cease to be a party hereto; provided, that anything contained in any of the Loan Documents
to the contrary notwithstanding, such assigning Lender shall continue to be entitled to the benefit of all indemnities hereunder
as specified herein with respect to matters arising out of the prior involvement of such assigning Lender as a Lender hereunder),
(C) the Commitments shall be modified to reflect the Commitment of such assignee and any Commitment of such assigning Lender,
if any, and (D) if any such assignment occurs after the issuance of any Note hereunder, the assigning Lender shall, upon the
effectiveness of such assignment or as promptly thereafter as practicable, surrender its applicable Notes to Administrative Agent
for cancellation, and thereupon, Borrower shall issue and deliver new Notes, if so requested by the assignee and/or assigning Lender,
to such assignee and/or to such assigning Lender, with appropriate insertions, to reflect the new Commitments and/or outstanding
Loans of the assignee and/or the assigning Lender.

 

    	 	- 138 -	 

     

    

 

(h)              
Participations.

 

(i)                       
Each Lender shall have the right at any time to sell one or more participations to any Eligible Assignee in all or any part
of its Commitments, Loans, or in any other Obligation; provided, that any sale of any participation made to any Person other
than an Eligible Assignee shall be absolutely void ab initio. The holder of any such participation, other than an Affiliate
of Lender granting such participation, shall not be entitled to require such Lender to take or omit to take any action hereunder
except with respect to any amendment, modification, or waiver that would (A) extend the final scheduled maturity of any Loan
or Note in which such participant is participating, reduce the rate or extend the time of payment of interest or fees thereon (except
in connection with a waiver of applicability of any post default increase in interest rates) or reduce the principal amount thereof,
or increase the amount of the participant’s participation over the amount thereof then in effect (it being understood that
a waiver of any Default or Event of Default or of a mandatory reduction in the Commitment shall not constitute a change in the
terms of such participation, and that an increase in any Commitment or Loan shall be permitted without the consent of any participant
if the participant’s participation is not increased as a result thereof) or (B)  release all or substantially all
of the Collateral under the Collateral Documents or all or substantially all of the Guarantors from the Guaranty (in each case,
except as expressly provided in the Loan Documents) supporting the Loans hereunder in which such participant is participating.
Borrower agrees that each participant shall be entitled to the benefits of Sections 2.17(c), 2.18, and 2.19
to the same extent as if it were a Lender and had acquired its interest by assignment pursuant to Section 10.06(c); provided,
that such participant complies with Section 2.19 as though it were a Lender (it being understood that the documentation
required under Section 2.19(d) shall be delivered to the participating Lender). To the extent permitted by law, each participant
also shall be entitled to the benefits of Section 10.04 as though it were a Lender, provided such participant agrees to
be subject to Section 2.16 as though it were a Lender.

 

(ii)                       
In the event that any Lender sells participations in its Commitments, Loans, or in any other Obligation hereunder, such
Lender shall, acting solely for this purpose as a non-fiduciary agent of Borrower, maintain a register on which it enters the name
of all participants in the Commitments, Loans, or Obligations held by it and the principal amount (and stated interest thereon)
of the portion of such Commitments, Loans, or Obligations which are the subject of the participation (the “Participant
Register”); provided that no Lender shall have any obligation to disclose all or any portion of the Participant
Register (including the identify of any participant or any information relating to a participant’s interest in any commitments,
loans, letters of credit or its other obligations under any Loan Document) to any Person except to the extent that such disclosure
is necessary to establish that such commitment, loan, letter of credit or other obligation is in registered form under Section
5f.103-1(c) of the United States Treasury Regulations. The entries in the Participant Register shall be conclusive absent manifest
error, and such Lender shall treat each Person whose name is recorded in the Participant Register as the owner of such participation
for all purposes of this Agreement notwithstanding any notice to the contrary. A Commitment, Loan, or Obligation hereunder may
be participated in whole or in part only by registration of such participation on the Participant Register (and each Note shall
expressly so provide). For the avoidance of doubt, the Administrative Agent (in its capacity as Administrative Agent) shall have
no responsibility for maintaining the Participant Register.

 

    	 	- 139 -	 

     

    

 

(i)                
Certain Other Assignments. In addition to any other assignment permitted pursuant to this Section 10.06, any
Lender may assign, pledge, and/or grant a security interest in all or any portion of its Loans, the other Obligations owed by or
to such Lender, and its Notes, if any, to secure obligations of such Lender or any of its Affiliates to any Person providing any
loan, letter of credit, or other extension of credit or financial arrangement to or for the account of such Lender or Agent or
any of its Affiliates and any agent, trustee, or representative of such Person (without the consent of, notice to, or any other
action by any other party hereto), including, without limitation, any Federal Reserve Bank as collateral security pursuant to Regulation A
of the Board of Governors of the Federal Reserve System and any operating circular issued by such Federal Reserve Bank; provided,
that no Lender or Agent, as between Borrower and such Lender or Agent, shall be relieved of any of its obligations hereunder as
a result of any such assignment and pledge; provided further, that in no event shall such Person, agent, trustee, or representative
of such Person or the applicable Federal Reserve Bank be considered to be a “Lender” or be entitled to require the
assigning Lender or Agent to take or omit to take any action hereunder.

 

(j)                
Assignments to Holdings or its Subsidiaries or Affiliates thereof. No assignment shall be made to Holdings or any
of its Subsidiaries, or to any of their respective Affiliates (including, for the avoidance of doubt, any Permitted Holder, Liberty,
Global Parent, Liberty Top Parent and S/B Parent).

 

(k)              
Disqualified Institutions. So long as no Event of Default has occurred and is continuing, no assignment or participation
shall be made to a Disqualified Institution without Borrower’s consent in writing (which consent may be withheld in its sole
discretion) (with any assignment or participation in violation of the foregoing to be absolutely void ab initio), and upon an inquiry
by any Lender to Administrative Agent as to whether a specific potential assignee or prospective participant is a Disqualified
Institution, Administrative Agent shall be permitted to disclose the list of Disqualified Institutions to such inquiring Lenders;
provided, that Administrative Agent shall not, in any event, be responsible for, nor have any liability in connection with, maintaining,
updating, monitoring, or enforcing the list of Disqualified Institutions, nor for any assignment or participation to a Disqualified
Institution to which Borrower has consented (including deemed consent), except to the extent determined by a court of competent
jurisdiction in a final and non-appealable decision to have been caused by, or be the result, of the gross negligence or willful
misconduct of Administrative Agent.

 

Section 10.07   
Independence of Covenants. All covenants hereunder shall be given independent effect so that if a particular action
or condition is not permitted by any of such covenants, the fact that it would be permitted by an exception to, or would otherwise
be within the limitations of, another covenant shall not avoid the occurrence of a Default or an Event of Default if such action
is taken or condition exists.

 

    	 	- 140 -	 

     

    

 

Section 10.08   
Survival of Representations, Warranties, and Agreements. All representations, warranties, and agreements made herein
shall survive the execution and delivery hereof and the making of any Credit Extension. Notwithstanding anything herein or implied
by law to the contrary, the agreements of each Loan Party set forth in Sections 2.17(c), 2.18, 2.19,
10.02, 10.03, 10.04, and 10.10 and the agreements of Lenders set forth in Sections 2.16,
9.03(b), and 9.06 shall survive the payment of the Loans.

 

Section 10.09   
No Waiver; Remedies Cumulative. No failure or delay on the part of any Agent or any Lender in the exercise of any
power, right, or privilege hereunder or under any other Loan Document shall impair such power, right, or privilege or be construed
to be a waiver of any default or acquiescence therein, nor shall any single or partial exercise of any such power, right, or privilege
preclude other or further exercise thereof or of any other power, right, or privilege. The rights, powers, and remedies given to
each Agent and each Lender hereby are cumulative and shall be in addition to and independent of all rights, powers, and remedies
existing by virtue of any statute or rule of law or in any of the other Loan Documents. Any forbearance or failure to exercise,
and any delay in exercising, any right, power, or remedy hereunder shall not impair any such right, power, or remedy or be construed
to be a waiver thereof, nor shall it preclude the further exercise of any such right, power, or remedy.

 

Section 10.10   
Marshalling; Payments Set Aside. Neither any Agent nor any Lender shall be under any obligation to marshal any assets
in favor of any Loan Party or any other Person or against or in payment of any or all of the Obligations. To the extent that any
Loan Party, S/B Parent, Global Parent, or Liberty Top Parent makes a payment or payments to Administrative Agent or Lenders (or
to Administrative Agent, on behalf of Lenders), or Administrative Agent, Collateral Agent, or Lenders enforce any security interests
or exercise their rights of setoff, and such payment or payments or the proceeds of such enforcement or setoff or any part thereof
are subsequently invalidated, declared to be fraudulent or preferential, set aside, and/or required to be repaid to a trustee,
receiver, or any other party under any bankruptcy law, any other state or federal law, common law, or any equitable cause, then,
to the extent of such recovery, the obligation or part thereof originally intended to be satisfied, and all Liens, rights, and
remedies therefor or related thereto, be revived and continued in full force and effect as if such payment or payments had not
been made or such enforcement or setoff had not occurred.

 

Section 10.11   
Severability. In case any provision herein or obligation hereunder or any Note or other Loan Document shall be invalid,
illegal, or unenforceable in any jurisdiction, the validity, legality, and enforceability of the remaining provisions or obligations,
or of such provision or obligation in any other jurisdiction, shall not in any way be affected or impaired thereby.

 

Section 10.12   
Obligations Several; Independent Nature of Lenders’ Rights. The obligations of Lenders hereunder are several,
and no Lender shall be responsible for the obligations or Commitment of any other Lender hereunder. Nothing contained herein or
in any other Loan Document, and no action taken by Lenders pursuant hereto or thereto, shall be deemed to constitute Lenders as
a partnership, an association, a joint venture, or any other kind of entity. The amounts payable at any time hereunder to each
Lender shall be a separate and independent debt.

 

    	 	- 141 -	 

     

    

 

Section 10.13   
Headings. Section headings herein are included herein for convenience of reference only and shall not constitute
a part hereof for any other purpose or be given any substantive effect.

 

Section 10.14   
APPLICABLE LAW. THIS AGREEMENT AND THE RIGHTS AND OBLIGATIONS OF THE PARTIES HEREUNDER SHALL BE GOVERNED BY, AND
SHALL BE CONSTRUED AND ENFORCED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK WITHOUT REGARD TO CONFLICT OF LAWS PRINCIPLES
(OTHER THAN SECTIONS 5-1401 AND 5-1402 OF THE NEW YORK GENERAL OBLIGATIONS LAW) THEREOF.

 

Section 10.15   
CONSENT TO JURISDICTION. (a) ALL JUDICIAL PROCEEDINGS BROUGHT AGAINST ANY LOAN PARTY ARISING OUT OF OR RELATING
HERETO OR ANY OTHER LOAN DOCUMENT, OR ANY OF THE OBLIGATIONS, SHALL BE BROUGHT IN ANY STATE OR FEDERAL COURT OF COMPETENT JURISDICTION
IN THE STATE, COUNTY, AND CITY OF NEW YORK. BY EXECUTING AND DELIVERING THIS AGREEMENT, EACH LOAN PARTY, FOR ITSELF AND IN CONNECTION
WITH ITS PROPERTIES, IRREVOCABLY (I) ACCEPTS GENERALLY AND UNCONDITIONALLY THE EXCLUSIVE JURISDICTION AND VENUE OF SUCH COURTS,
(II) WAIVES ANY DEFENSE OF FORUM NON CONVENIENS, (III) AGREES THAT SERVICE OF ALL PROCESS IN ANY SUCH PROCEEDING IN ANY
SUCH COURT MAY BE MADE BY REGISTERED OR CERTIFIED MAIL, RETURN RECEIPT REQUESTED, TO THE APPLICABLE LOAN PARTY AT ITS ADDRESS PROVIDED
IN ACCORDANCE WITH SECTION 10.01, WHICH IS SUFFICIENT TO CONFER PERSONAL JURISDICTION OVER THE APPLICABLE LOAN PARTY IN
ANY SUCH PROCEEDING IN ANY SUCH COURT, AND OTHERWISE CONSTITUTES EFFECTIVE AND BINDING SERVICE IN EVERY RESPECT, AND (IV) AGREES
THAT AGENTS AND LENDERS RETAIN THE RIGHT TO SERVE PROCESS IN ANY OTHER MANNER PERMITTED BY LAW OR TO BRING PROCEEDINGS AGAINST
ANY LOAN PARTY IN THE COURTS OF ANY OTHER JURISDICTION.

 

(b)       EACH
LOAN PARTY HEREBY AGREES THAT PROCESS MAY BE SERVED ON IT BY CERTIFIED MAIL, RETURN RECEIPT REQUESTED, TO THE ADDRESSES PERTAINING
TO IT AS SPECIFIED IN SECTION 10.01. ANY AND ALL SERVICE OF PROCESS AND ANY OTHER NOTICE IN ANY SUCH ACTION, SUIT,
OR PROCEEDING SHALL BE EFFECTIVE AGAINST ANY LOAN PARTY IF GIVEN BY REGISTERED OR CERTIFIED MAIL, RETURN RECEIPT REQUESTED, OR
BY ANY OTHER MEANS OR MAIL WHICH REQUIRES A SIGNED RECEIPT, POSTAGE PREPAID, MAILED AS PROVIDED ABOVE.

 

Section 10.16   
WAIVER OF JURY TRIAL. EACH OF THE PARTIES HERETO HEREBY AGREES TO WAIVE ITS RESPECTIVE RIGHTS TO A JURY TRIAL OF
ANY CLAIM OR CAUSE OF ACTION BASED UPON OR ARISING HEREUNDER OR UNDER ANY OF THE OTHER LOAN DOCUMENTS OR ANY DEALINGS BETWEEN THEM
RELATING TO THE SUBJECT MATTER OF THIS LOAN TRANSACTION OR THE LENDER/BORROWER RELATIONSHIP THAT IS BEING ESTABLISHED. THE SCOPE
OF THIS WAIVER IS INTENDED TO BE ALL ENCOMPASSING OF ANY AND ALL DISPUTES THAT MAY BE FILED IN ANY COURT AND THAT RELATE TO THE
SUBJECT MATTER OF THIS TRANSACTION, INCLUDING CONTRACT CLAIMS, TORT CLAIMS, BREACH OF DUTY CLAIMS, AND ALL OTHER COMMON LAW AND
STATUTORY CLAIMS. EACH PARTY HERETO ACKNOWLEDGES THAT THIS WAIVER IS A MATERIAL INDUCEMENT TO ENTER INTO A BUSINESS RELATIONSHIP,
THAT EACH HAS ALREADY RELIED ON THIS WAIVER IN ENTERING INTO THIS AGREEMENT, AND THAT EACH WILL CONTINUE TO RELY ON THIS WAIVER
IN ITS RELATED FUTURE DEALINGS. EACH PARTY HERETO FURTHER WARRANTS AND REPRESENTS THAT IT HAS REVIEWED THIS WAIVER WITH ITS LEGAL
COUNSEL AND THAT IT KNOWINGLY AND VOLUNTARILY WAIVES ITS JURY TRIAL RIGHTS FOLLOWING CONSULTATION WITH LEGAL COUNSEL. THIS WAIVER
IS IRREVOCABLE, MEANING THAT IT MAY NOT BE MODIFIED EITHER ORALLY OR IN WRITING (OTHER THAN BY A MUTUAL WRITTEN WAIVER SPECIFICALLY
REFERRING TO THIS SECTION 10.16 AND EXECUTED BY EACH OF THE PARTIES HERETO), AND THIS WAIVER SHALL APPLY TO ANY SUBSEQUENT
AMENDMENTS, RENEWALS, SUPPLEMENTS, OR MODIFICATIONS HERETO OR ANY OF THE OTHER LOAN DOCUMENTS OR TO ANY OTHER DOCUMENTS OR AGREEMENTS
RELATING TO THE LOANS MADE HEREUNDER. IN THE EVENT OF LITIGATION, THIS AGREEMENT MAY BE FILED AS A WRITTEN CONSENT TO A TRIAL BY
THE COURT.

 

    	 	- 142 -	 

     

    

 

Section 10.17   
Confidentiality. Each Agent and Lender agrees to maintain the confidentiality of all non-public information regarding
Global Parent, Liberty Top Parent, S/B Parent, Holdings and its Subsidiaries and their businesses identified as such by Borrower
or any of such Persons and obtained by such Lender from Global Parent, Liberty Top Parent, S/B Parent, Holdings or its Subsidiaries
pursuant to the requirements hereof in accordance with such Lender’s customary procedures for handling confidential information
of such nature, it being understood and agreed by Borrower that, in any event, any Agent or Lender may make (a) disclosures
of such information to Affiliates of such Agent or Lender and to their agents, advisors, directors, and shareholders (and to other
persons authorized by a Lender or Agent to organize, present, or disseminate such information in connection with disclosures otherwise
made in accordance with this Section 10.17) who are directly involved with Loan Documents and related transactions and for
whom the applicable Agent or Lender shall be responsible for any breach of this Section by such Persons (it being understood that
the Persons to whom such disclosure is made will be informed of the confidential nature of such information and instructed to keep
such information confidential), (b) disclosures of such information reasonably required by any bona fide or potential assignee,
transferee, or participant in connection with the contemplated assignment, transfer, or participation by any such Lender of any
Loans or any participations therein, (c) disclosure to any rating agency when required by it; provided, that prior
to any disclosure, such rating agency shall undertake in writing to preserve the confidentiality of any confidential information
relating to the Loan Parties and their Subsidiaries, S/B Parent, Global Parent and Liberty Top Parent received by it from any of
Agents or any Lender, (d) disclosure to any Lender’s financing sources; provided, that prior to any disclosure,
such financing source is informed of the confidential nature of the information and instructed to keep such information confidential;
provided, further, that the applicable Lender shall be responsible for any breach of this Section by such financing
sources, (e) disclosures of such information to any investors and partners of any Lender; provided, that prior to any
disclosure, such investor or partner is informed of the confidential nature of the information and instructed to keep such information
confidential; provided, further, that the applicable Lender shall be responsible for any breach of this Section by
such investors or partners, (f) disclosure required or requested in connection with any public filings, whether pursuant to
any securities laws or regulations or rules promulgated therefor (including the Investment Company Act of 1940 or otherwise) or
representative thereof or by the National Association of Insurance Commissioners (and any successor thereto) or pursuant to legal
or judicial process; provided, that unless specifically prohibited by applicable law or court order, each Agent and Lender
shall make reasonable efforts to notify Borrower of any request by any Governmental Authority or representative thereof (other
than any such request in connection with any examination of the financial condition or other routine examination of such Lender
by such Governmental Authority) for disclosure of any such non-public information prior to disclosure of such information, (g)
disclosures of such information to the extent any such information becomes publicly available other than by reason of disclosure
by any Agents or Lenders, any Affiliates of the Agents or Lenders, or any officers, directors, agents, employees, attorneys, accountants,
or advisors of any Agents or Lenders or of any Affiliates of any Agents or Lenders, in breach of this Agreement, or to the extent
any such information is developed independently by any such Persons, (h) to the extent not known by us to consist of material non-public
information, (i) for purposes of establishing a “due diligence” defense or to exercise rights or remedies hereunder
or under any other Loan Document, and (j) solely with and to the extent of the Borrower’s consent therefor, disclosures of
any information to any Person. Notwithstanding the foregoing, on or after the Closing Date, Administrative Agent may, at its own
expense, issue news releases and publish “tombstone” advertisements and other announcements relating to this transaction
in newspapers, trade journals, and other appropriate media (which may include use of logos of one or more of the Loan Parties)
(collectively, “Trade Announcements”). No Loan Party nor any of S/B Parent, Global Parent and Liberty Top Parent
shall issue any Trade Announcement except (y) disclosures required by applicable law, regulation, legal process, or the rules
of the Securities and Exchange Commission, or (z) with the prior approval of Administrative Agent.

 

    	 	- 143 -	 

     

    

 

Section 10.18   
Usury Savings Clause. Notwithstanding any other provision herein, the aggregate interest rate charged or agreed to
be paid with respect to any of the Obligations, including all charges or fees in connection therewith deemed in the nature of interest
under applicable law shall not exceed the Highest Lawful Rate. If the rate of interest (determined without regard to the preceding
sentence) under this Agreement at any time exceeds the Highest Lawful Rate, the outstanding amount of the Loans made hereunder
shall bear interest at the Highest Lawful Rate until the total amount of interest due hereunder equals the amount of interest which
would have been due hereunder if the stated rates of interest set forth in this Agreement had at all times been in effect. In addition,
if when the Loans made hereunder are repaid in full the total interest due hereunder (taking into account the increase provided
for above) is less than the total amount of interest which would have been due hereunder if the stated rates of interest set forth
in this Agreement had at all times been in effect, then to the extent permitted by law, Borrower shall pay to Administrative Agent
an amount equal to the difference between the amount of interest paid and the amount of interest which would have been paid if
the Highest Lawful Rate had at all times been in effect. Notwithstanding the foregoing, it is the intention of Lenders and Borrower
to conform strictly to any applicable usury laws. Accordingly, if any Lender contracts for, charges, or receives any consideration
which constitutes interest in excess of the Highest Lawful Rate, then any such excess shall be cancelled automatically and, if
previously paid, shall at such Lender’s option be applied to the outstanding amount of the Loans made hereunder or be refunded
to Borrower. In determining whether the interest contracted for, charged, or received by Administrative Agent or a Lender exceeds
the Highest Lawful Rate, such Person may, to the extent permitted by applicable law, (a) characterize any payment that is
not principal as an expense, fee, or premium rather than interest, (b) exclude voluntary prepayments and the effects thereof,
and (c) amortize, prorate, allocate, and spread in equal or unequal parts the total amount of interest, throughout the contemplated
term of the Obligations hereunder.

 

    	 	- 144 -	 

     

    

 

Section 10.19   
Counterparts. This Agreement may be executed in any number of counterparts, each of which when so executed and delivered
shall be deemed an original, but all such counterparts together shall constitute but one and the same instrument. Delivery of an
executed counterpart of a signature page of this Agreement by facsimile or other electronic means shall be effective as delivery
of an original counterpart of this Agreement.

 

Section 10.20   
Effectiveness. This Agreement shall become effective upon the execution of a counterpart hereof by each of the parties
hereto and receipt by Borrower and each Agent of written or telephonic notification of such execution and authorization of delivery
thereof.

 

Section 10.21   
Acknowledgement and Consent to Bail-In of EEA Financial Institutions. Notwithstanding anything to the contrary in
any Loan Document or in any other agreement, arrangement, or understanding among any such parties, each party hereto acknowledges
that any liability of any EEA Financial Institution arising under any Loan Document, to the extent such liability is unsecured,
may be subject to the Write-Down and Conversion Powers of an EEA Resolution Authority and agrees and consents to, and acknowledges
and agrees to be bound by:

 

(a)              
the application of any Write-Down and Conversion Powers by an EEA Resolution Authority to any such liabilities arising hereunder
which may be payable to it by any party hereto that is an EEA Financial Institution, and

 

(b)              
the effects of any Bail-in Action on any such liability, including, if applicable:

 

(i)                       
a reduction in full or in part or cancellation of any such liability,

 

(ii)                       
a conversion of all, or a portion of, such liability into shares or other instruments of ownership in such EEA Financial
Institution, its parent undertaking, or a bridge institution that may be issued to it or otherwise conferred on it, and that such
shares or other instruments of ownership will be accepted by it in lieu of any rights with respect to any such liability under
this Agreement or any other Loan Document, or

 

    	 	- 145 -	 

     

    

 

(iii)                       
the variation of the terms of such liability in connection with the exercise of the Write-Down and Conversion Powers of
any EEA Resolution Authority.

 

Section 10.22   
PATRIOT Act Notice. Each Lender and Agent (for itself and not on behalf of any Lender) hereby notifies the Loan Parties,
S/B Parent, Global Parent and Liberty Top Parent that pursuant to the requirements of the PATRIOT Act, it may be required to obtain,
verify, and record information that identifies each Loan Party, S/B Parent, Global Parent and Liberty Top Parent, which information
includes the name and address of such Persons and other information that will allow such Lender or Agent, as applicable, to identify
such Person in accordance with the PATRIOT Act.

 

[Remainder of page intentionally left blank]

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

    	 	- 146 -	 

     

    

 

IN WITNESS WHEREOF, the
parties hereto have caused this Agreement to be duly executed and delivered by their respective officers thereunto duly authorized
as of the date first written above.

 

	 	FRANCHISE GROUP INTERMEDIATE S, LLC,
	 	as Holdings	 
	 	 	 	 
	 	 	 	 
	 	By:	/s/ Michael S. Piper	 
	 	Name:	Michael S. Piper	 
	 	Title:	Authorized Signatory	 
	 	 	 	 
	 	 	 	 
	 	FRANCHISE GROUP NEWCO S, LLC,
	 	as Borrower	 
	 	 	 	 
	 	 	 	 
	 	By:	/s/ Michael S. Piper	 
	 	Name:	Michael S. Piper	 
	 	Title:	Authorized Signatory	 
	 	 	 	 
	 	 	 	 
	 	SEARS OUTLET STORES, L.L.C.,
	 	as a Guarantor Subsidiary
	 	 	 	 
	 	 	 	 
	 	By:	/s/ E.J. Bird	 
	 	Name:	E.J. Bird	 
	 	Title:	Senior Vice President	 
	 	 	 	 
	 	 	 	 
	 	OUTLET MERCHANDISE, LLC,
	 	as a Guarantor Subsidiary
	 	 	 	 
	 	 	 	 
	 	By:	/s/ E.J. Bird	 
	 	Name:	E.J. Bird	 
	 	Title:	Senior Vice President and Chief Financial Officer	 

    	[SIGNATURE PAGE TO CREDIT AGREEMENT]

     

    

 

	 	LEASING OPERATIONS, LLC,
	 	as a Guarantor Subsidiary
	 	 	 	 
	 	 	 	 
	 	By:	/s/ E.J. Bird	 
	 	Name:	E.J. Bird	 
	 	Title:	Senior Vice President and Chief Financial Officer	 
	 	 	 	 
	 	 	 	 
	 	BUDDY’S DISCOUNT OUTLET FRANCHISING, LLC,
	 	as a Guarantor Subsidiary
	 	 	 	 
	 	 	 	 
	 	By:	/s/ Michael S. Piper	 
	 	Name:	Michael S. Piper	 
	 	Title:	Authorized Signatory	 
	 	 	 	 
	 	 	 	 
	 	FRANCHISE GROUP INTERMEDIATE HOLDCO, LLC,
	 	as a Guarantor	 
	 	 	 	 
	 	 	 	 
	 	By:	/s/ Michael S. Piper	 
	 	Name:	Michael S. Piper	 
	 	Title:	Authorized Signatory	 
	 	 	 	 
	 	 	 	 
	 	FRANCHISE GROUP NEW HOLDCO, LLC,
	 	as a Guarantor	 
	 	 	 	 
	 	 	 	 
	 	By:	/s/ Michael S. Piper	 
	 	Name:	Michael S. Piper	 
	 	Title:	Authorized Signatory	 
	 	 	 	 
	 	 	 	 
	 	Franchise Group Intermediate L, LLC,
	 	as a Guarantor	 
	 	 	 	 
	 	 	 	 
	 	By:	/s/ Michael S. Piper	 
	 	Name:	Michael S. Piper	 
	 	Title:	Authorized Signatory	 

 

    	[SIGNATURE PAGE TO CREDIT AGREEMENT]

     

    

 

	 	GUGGENHEIM CREDIT SERVICES, LLC,
	 	as Administrative Agent and Collateral Agent
	 	 	 	 
	 	 	 	 
	 	By:	/s/ John Mulreaney	 
	 	 	Name: John Mulreaney	 
	 	 	Title: Authorized Signatory	 
	 	 	 	 
	 	 	 	 
	 	Guggenheim Credit
    Income Fund,
	 	as a Lender	 
	 	 	 	 
	 	By: Guggenheim Partners Investment Management, LLC as Advisor
	 	 	 	 
	 	 	 	 
	 	By: 	/s/ Kevin M. Robinson	 
	 	  Name: Kevin M. Robinson	 
	 	  Title: Attorney-in-Fact
	 	 	 	 
	 	 	 	 
	 	Guggenheim Private	 
	 	Debt Fund 2.0-I,
    LLC,
	 	as a Lender	 
	 	 	 	 
	 	By: Guggenheim Partners Investment Management, LLC as Manager
	 	 	 	 
	 	 	 	 
	 	By: 	/s/ Kevin M. Robinson	 
	 	  Name: Kevin M. Robinson	 
	 	  Title: Attorney-in-Fact
	 	 	 	 
	 	 	 	 
	 	Guggenheim Private	 
	 	Debt Fund 2.0, LLC.
	 	as a Lender	 
	 	 	 	 
	 	By: Guggenheim Partners Investment Management, LLC as Manager
	 	 	 	 
	 	 	 	 
	 	By: 	/s/ Kevin M. Robinson	 
	 	  Name: Kevin M. Robinson	 
	 	  Title: Attorney-in-Fact

 

    	[SIGNATURE PAGE TO CREDIT AGREEMENT]

     

    

 

	 	Guggenheim MM CLO
    2018-1, LTD,
	 	as a Lender	 
	 	 	 	 
	 	By: Guggenheim Partners Investment Management, LLC as Collateral Manager
	 	 	 	 
	 	 	 	 
	 	By: 	/s/ Kevin M. Robinson	 
	 	  Name: Kevin M. Robinson	 
	 	  Title: Attorney-in-Fact
	 	 	 	 
	 	 	 	 
	 	Guggenheim Private
    Debt
	 	Fund NOTE ISSUER
    2.0, LLC,
	 	as a Lender	 
	 	 	 	 
	 	By: Guggenheim Partners Investment Management, LLC as Manager
	 	 	 	 
	 	 	 	 
	 	By:	/s/ Kevin M. Robinson	 
	 	  Name: Kevin M. Robinson	 
	 	  Title: Attorney-in-Fact
	 	 	 	 
	 	Hobson Capital, LLC,
	 	as a Lender	 
	 	 	 	 
	 	By: Guggenheim Partners Investment Management, LLC as Collateral Manager
	 	 	 	 
	 	 	 	 
	 	By:	/s/ Kevin M. Robinson	 
	 	  Name: Kevin M. Robinson	 
	 	  Title: Attorney-in-Fact

 

    	[SIGNATURE PAGE TO CREDIT AGREEMENT]

     

    

 

	 	KIM Global KPI Guggenheim
    Professional Private Trust,
	 	as a Lender	 
	 	 	 	 
	 	By: Guggenheim Partners Investment Management, LLC as Advisor
	 	 	 	 
	 	 	 	 
	 	By: 	/s/ Kevin M. Robinson	 
	 	  Name: Kevin M. Robinson	 
	 	  Title: Attorney-in-Fact
	 	 	 	 
	 	 	 	 
	 	KIM Global KPS Guggenheim
    Professional Private Trust,
	 	as a Lender	 
	 	 	 	 
	 	By: Guggenheim Partners Investment Management, LLC as Advisor
	 	 	 	 
	 	 	 	 
	 	By: 	/s/ Kevin M. Robinson	 
	 	  Name: Kevin M. Robinson	 
	 	  Title: Attorney-in-Fact
	 	 	 	 
	 	 	 	 
	 	MIDLAND NATIONAL LIFE INSURANCE COMPANY,
	 	as a Lender	 
	 	 	 	 
	 	By: Guggenheim Partners Investment Management, LLC as investment adviser
	 	 	 	 
	 	 	 	 
	 	By: 	/s/ Kevin M. Robinson	 
	 	  Name: Kevin M. Robinson	 
	 	  Title: Attorney-in-Fact

 

    	[SIGNATURE PAGE TO CREDIT AGREEMENT]

     

    

 

	 	NORTH AMERICAN COMPANY FOR LIFE AND HEALTH INSURANCE,
	 	as a Lender	 
	 	 	 	 
	 	By: Guggenheim Partners Investment Management, LLC as investment adviser
	 	 	 	 
	 	 	 	 
	 	By:	/s/ Kevin M. Robinson	 
	 	  Name: Kevin M. Robinson	 
	 	  Title: Attorney-in-Fact
	 	 	 	 
	 	DLHPII AH, LLC,
	 	as a Lender	 
	 	 	 	 
	 	By: Guggenheim Partners Investment Management, LLC as Manager
	 	 	 	 
	 	 	 	 
	 	By: 	/s/ Kevin M. Robinson	 
	 	  Name: Kevin M. Robinson	 
	 	  Title: Attorney-in-Fact

 

 

 

 

 

 

 

	[SIGNATURE PAGE TO CREDIT AGREEMENT]Exhibit 10.2

 

SECURITY AGREEMENT

 

This SECURITY AGREEMENT
(this “Agreement”), dated as of October 23, 2019, by and among the Persons listed on the signature pages hereof
as “Grantors” and those additional entities that hereafter become parties hereto by executing the form of Joinder attached
hereto as Annex 1 (each, a “Grantor” and collectively, the “Grantors”), and GUGGENHEIM
CREDIT SERVICES, LLC, a Delaware limited liability company (“Guggenheim”), in its capacity as collateral
agent for the Secured Parties (in such capacity, together with its successors and permitted assigns in such capacity, “Collateral
Agent”).

 

W I T N E S S E
T H:

 

WHEREAS, pursuant
to that certain Credit Agreement, dated as of October 23, 2019 (as amended, restated, supplemented, or otherwise modified from
time to time, the “Credit Agreement”), by and among, Franchise Group Newco S, LLC, a Delaware limited liability
company (“Borrower”), Franchise Group Intermediate S, LLC, a Delaware limited liability company (“Holdings”),
each of Borrower’s Subsidiaries from time to time party thereto, each other Affiliate of Borrower from time to time party
thereto, each of the lenders from time to time party thereto (each of such lenders, together with its successors and permitted
assigns, is referred to hereinafter as a “Lender”), Guggenheim, in its capacity as administrative agent for
each Lender (in such capacity, together with its successors and permitted assigns in such capacity, “Administrative Agent”),
and Collateral Agent, the Lenders have agreed to make certain financial accommodations available to Borrower from time to time
pursuant to the terms and conditions thereof;

 

WHEREAS, Collateral
Agent has agreed to act as agent for the benefit of the Secured Parties in connection with the transactions contemplated by the
Credit Agreement and this Agreement;

 

WHEREAS, in
order to induce Agents and the Lenders to enter into the Credit Agreement and the other Loan Documents and to extend the Loans
thereunder and to induce Agents and the Lenders to make financial accommodations to Borrower as provided for in the Credit Agreement
and the other Loan Documents, (a) each Grantor (other than Borrower with respect to its own Obligations) has agreed to guaranty
the Guaranteed Obligations, and (b) each Grantor has agreed to grant to Collateral Agent, for the benefit of the Secured Parties,
a First Priority Lien on all of their respective assets, including a pledge of all of the Capital Stock of each of their respective
Subsidiaries (including Borrower); and

 

WHEREAS, each
Grantor (other than Holdings and Borrower) is an Affiliate or a Subsidiary of Borrower and, as such, will benefit by virtue of
the financial accommodations extended to Borrower by Agents and the Lenders.

 

NOW, THEREFORE,
for and in consideration of the recitals made above and other good and valuable consideration, the receipt, sufficiency and adequacy
of which are hereby acknowledged, the parties hereto agree as follows:

 

1.                  
Definitions; Construction.

 

(a)               
All initially capitalized terms used herein (including in the preamble and recitals hereof) without definition shall have
the meanings ascribed thereto in the Credit Agreement. Any terms (whether capitalized or lower case) used in this Agreement that
are defined in the Code (including, without limitation, Account, Account Debtor, Chattel Paper, Deposit Account, Drafts, Documents,
Equipment, Farm Products, Fixtures, Inventory, Instruments, Letters of Credit, Letter of Credit Rights, Promissory Notes, Securities
Account and Supporting Obligations) shall be construed and defined as set forth in the Code unless otherwise defined herein or
in the Credit Agreement; provided, that to the extent that the Code is used to define any term used herein and if such term
is defined differently in different Articles of the Code, the definition of such term contained in Article 9 of the Code shall
govern. In addition to those terms defined elsewhere in this Agreement, as used in this Agreement, the following terms shall have
the following definitions:

 

    

    

    

(i)                  
“Acquisition Documents” means the Closing Date Acquisition Agreement and the other agreements, instruments
and documents evidencing, or entered into in connection with, the Closing Date Acquisition and any other acquisition by a Grantor
consummated after the Closing Date.

 

(ii)                  
 “Administrative Agent” has the meaning specified therefor in the recitals to this Agreement.

 

(iii)                  
“Agreement” has the meaning specified therefor in the preamble to this Agreement.

 

(iv)                   
“Books” means books and records (including each Grantor’s Records indicating, summarizing, or evidencing
such Grantor’s assets (including the Collateral) or liabilities, each Grantor’s Records relating to such Grantor’s
business operations or financial condition, and each Grantor’s goods or General Intangibles related to such information).

 

(v)                  
“Borrower” has the meaning specified therefor in the recitals to this Agreement.

 

(vi)                   
“Code” means the New York Uniform Commercial Code, as in effect from time to time; provided, that
in the event that, by reason of mandatory provisions of law, any or all of the attachment, perfection, priority, or remedies with
respect to Collateral Agent’s Lien on any Collateral is governed by the Uniform Commercial Code as enacted and in effect
in a jurisdiction other than the State of New York, the term “Code” shall mean the Uniform Commercial Code as enacted
and in effect in such other jurisdiction solely for purposes of the provisions thereof relating to such attachment, perfection,
priority, or remedies.

 

(vii)                   
“Collateral” has the meaning specified therefor in Section 2 hereof.

 

(viii)                   
“Collateral Agent” has the meaning specified therefor in the preamble to this Agreement.

 

(ix)                   
“Commercial Tort Claims” means commercial tort claims (as that term is defined in the Code), except that
it refers only to such claims that have been asserted in judicial proceedings or are subject to mediation, arbitration or any other
proceeding and includes those commercial tort claims listed on Schedule 1.

 

(x)                  
“Copyright Security Agreement” means each Copyright Security Agreement executed and delivered by Grantors,
or any of them, and Collateral Agent, in substantially the form of Exhibit A.

 

    
2

    

    

(xi)                   
“Copyrights” means any and all rights in any works of authorship, including (A) copyrights and moral
rights, (B) copyright registrations and recordings thereof and all applications in connection therewith including those listed
on Schedule 2, (C) income, license fees, royalties, damages, and payments now and hereafter due or payable under and with
respect thereto, including payments under all licenses entered into in connection therewith and damages and payments for past,
present, or future infringements thereof, (D) the right to sue for past, present, and future infringements thereof, and (E) all
of each Grantor’s rights corresponding thereto throughout the world.

 

(xii)                   
“Credit Agreement” has the meaning specified therefor in the recitals to this Agreement.

 

(xiii)                   
“Excluded Assets” has the meaning specified therefor in Section 2 hereof.

 

(xiv)                   
“General Intangibles” means general intangibles (as that term is defined in the Code), and includes payment
intangibles, software, contract rights (including, without limitation, rights under all sale, service, performance, equipment or
warranty contracts and under all Franchise Agreements), rights to payment, warranty claims, all know-how and warranties, rights
arising under common law, statutes, or regulations, choses or things in action, goodwill, Intellectual Property, Intellectual Property
Licenses, purchase orders, customer lists, route lists, rights to payment and other rights under Acquisition Documents, rights
to payment and other rights under any royalty or licensing agreements, including Intellectual Property Licenses, infringement claims,
monies due or recoverable from pension funds, pension plan refunds, pension plan refund claims, insurance premium rebates, tax
refunds, and tax refund claims, interests in a partnership or limited liability company which do not constitute a security under
Article 8 of the Code, and any other personal property other than Commercial Tort Claims, money, Accounts, Chattel Paper, Deposit
Accounts, goods, Investment Property, Negotiable Collateral, and oil, gas, or other minerals before extraction.

 

(xv)                   
“Grantor” and “Grantors” have the respective meanings specified therefor in the preamble
to this Agreement.

 

(xvi)                   
“Intellectual Property” means any and all Patents, Copyrights, Trademarks, trade secrets, know-how, inventions
(whether or not patentable), algorithms, software programs (including source code and object code), processes, product designs,
industrial designs, blueprints, drawings, data, customer lists, URLs and domain names, specifications, documentations, reports,
catalogs, literature, and any other forms of technology or proprietary information of any kind, including all rights therein and
all applications for registration or registrations thereof.

 

(xvii)                  
“Intellectual Property Licenses” means, with respect to any Grantor, (A) any licenses or other similar
rights provided to such Grantor in or with respect to Intellectual Property owned or controlled by any other Person, and (B) any
licenses or other similar rights provided to any other Person in or with respect to Intellectual Property owned or controlled by
such Grantor, in each case, including (w) any agreements relating to the Licensed Trademarks, (x) any software license agreements
(other than license agreements for commercially available off-the-shelf software that is generally available to the public which
have been licensed to a Grantor pursuant to end-user licenses), (y) the license agreements listed on Schedule 3, and (z)
the right to use any of the licenses or other similar rights described in this definition in connection with the enforcement of
the Secured Parties’ rights under the Loan Documents.

 

    
3

    

    

(xviii)                  
“Investment Property” means (A) any and all investment property, and (B) any and all of the following
(regardless of whether classified as investment property under the Code): all Pledged Interests, Pledged Operating Agreements,
and Pledged Partnership Agreements.

 

(xix)                   
“Joinder” means each Joinder to this Agreement executed and delivered by Collateral Agent and each of
the other parties listed on the signature pages thereto, in substantially the form of Annex 1.

 

(xx)                   
“Lender” has the meaning specified therefor in the recitals to this Agreement.

 

(xxi)                   
“Negotiable Collateral” means Letters of Credit, Letter-of-Credit Rights, Instruments, Promissory Notes,
Drafts and Documents.

 

(xxii)                  
“Patents” means patents and patent applications, including (A) the patents and patent applications listed
on Schedule 4, (B) all continuations, divisionals, continuations-in-part, re-examinations, reissues, and renewals thereof
and improvements thereon, (C) all income, royalties, damages and payments now and hereafter due or payable under and with respect
thereto, including payments under all licenses entered into in connection therewith and damages and payments for past, present,
or future infringements thereof, (D) the right to sue for past, present, and future infringements thereof, and (E) all of each
Grantor’s rights corresponding thereto throughout the world.

 

(xxiii)                  
“Patent Security Agreement” means each Patent Security Agreement executed and delivered by Grantors,
or any of them, and Collateral Agent, in substantially the form of Exhibit B.

 

(xxiv)                  
“Pledged Companies” means each Person listed on Schedule 5 as a “Pledged Company”,
together with each other Person, all or a portion of whose Capital Stock are acquired or otherwise owned by a Grantor after the
Closing Date and is required to be pledged pursuant to Section 5.10 of the Credit Agreement.

 

(xxv)                  
“Pledged Interests” means all of each Grantor’s right, title and interest in and to all of the
Capital Stock now owned or hereafter acquired by such Grantor, regardless of class or designation, including in each of the Pledged
Companies, and all substitutions therefor and replacements thereof, all proceeds thereof and all rights relating thereto, also
including any certificates representing the Capital Stock, the right to receive any certificates representing any of the Capital
Stock, all warrants, options, share appreciation rights and other rights, contractual or otherwise, in respect thereof and the
right to receive all dividends, distributions of income, profits, surplus, or other compensation by way of income or liquidating
distributions, in cash or in kind, and all cash, instruments, and other property from time to time received, receivable, or otherwise
distributed in respect of or in addition to, in substitution of, on account of, or in exchange for any or all of the foregoing.

 

(xxvi)                  
“Pledged Interests Addendum” means a Pledged Interests Addendum substantially in the form of Exhibit
C.

 

(xxvii)                  
“Pledged Note” means that certain promissory note described on Schedule 10 attached hereto.

 

(xxviii)                  
“Pledged Operating Agreements” means all of each Grantor’s rights, powers, and remedies under the
limited liability company operating agreements of each of the Pledged Companies that are limited liability companies.

 

    
4

    

    

(xxix)                  
“Pledged Partnership Agreements” means all of each Grantor’s rights, powers, and remedies under
the partnership agreements of each of the Pledged Companies that are partnerships.

 

(xxx)                  
“Proceeds” has the meaning specified therefor in Section 2(r) hereof.

 

(xxxi)                  
“PTO” means the United States Patent and Trademark Office.

 

(xxxii)                  
“Real Property” means any estates or interests in real property now owned or hereafter acquired by any
Grantor and the improvements thereto.

 

(xxxiii)                  
“Record” means information that is inscribed on a tangible medium or which is stored in an electronic
or other medium and is retrievable in perceivable form.

 

(xxxiv)                   
 “Secured Obligations” means each and all of the following: (A) all Obligations (including any expenses,
fees or interest that accrue after the commencement of an Insolvency Proceeding, regardless of whether allowed or allowable in
whole or in part as a claim in any such Insolvency Proceeding) and (B) all Guaranteed Obligations.

 

(xxxv)                  
“Security Interest” has the meaning specified therefor in Section 2 hereof.

 

(xxxvi)                   
“Supporting Obligations” means supporting obligations (as such term is defined in the Code), and includes
letters of credit and guaranties issued in support of Accounts, Chattel Paper, documents, General Intangibles, instruments or Investment
Property.

 

(xxxvii)                   
“Trademarks” means any and all trademarks, trade names, registered trademarks, trademark applications,
service marks, registered service marks and service mark applications, including (A) the trade names, registered trademarks, trademark
applications, registered service marks and service mark applications listed on Schedule 6, (B) all renewals thereof, (C)
all income, royalties, damages and payments now and hereafter due or payable under and with respect thereto, including payments
under all licenses entered into in connection therewith and damages and payments for past or future infringements or dilutions
thereof, (D) the right to sue for past, present and future infringements and dilutions thereof, (E) the goodwill of each Grantor’s
business symbolized by the foregoing or connected therewith, and (F) all of each Grantor’s rights corresponding thereto throughout
the world.

 

(xxxviii)                   
“Trademark Security Agreement” means each Trademark Security Agreement executed and delivered by Grantors,
or any of them, and Collateral Agent, in substantially the form of Exhibit D.

 

(xxxix)                   
“URL” means “uniform resource locator,” an internet web address.

 

(b)               
This Agreement shall be subject to the rules of construction set forth in Section 1.03 of the Credit Agreement, and
such rules of construction are incorporated herein by this reference, mutatis mutandis.

 

(c)               
All of the schedules and exhibits attached to this Agreement shall be deemed incorporated herein by reference.

 

    
5

    

    

2.                  
Grant of Security. Each Grantor hereby unconditionally grants, collaterally assigns, and pledges to Collateral Agent,
for the benefit of each of the Secured Parties, to secure the Secured Obligations (whether now existing or hereafter arising),
a continuing security interest (hereinafter referred to as the “Security Interest”) in all of such Grantor’s
right, title, and interest in and to the following, whether now owned or hereafter acquired or arising and wherever located (the
“Collateral”):

 

(a)               
all of such Grantor’s Accounts;

 

(b)               
all of such Grantor’s Books;

 

(c)               
all of such Grantor’s Chattel Paper;

 

(d)               
all of such Grantor’s Commercial Tort Claims listed on Schedule 1 and for which notice is required pursuant
to Section 6(e) of this Agreement;

 

(e)               
all of such Grantor’s Deposit Accounts;

 

(f)                
all of such Grantor’s Equipment;

 

(g)               
all of such Grantor’s Farm Products;

 

(h)               
all of such Grantor’s Fixtures;

 

(i)                
all of such Grantor’s General Intangibles;

 

(j)                
all of such Grantor’s Inventory;

 

(k)               
all of such Grantor’s Investment Property;

 

(l)                
all of such Grantor’s Intellectual Property and Intellectual Property Licenses;

 

(m)             
all of such Grantor’s Negotiable Collateral (including the Pledged Note);

 

(n)               
all of such Grantor’s Pledged Interests (including all of such Grantor’s Pledged Operating Agreements and Pledged
Partnership Agreements);

 

(o)               
all of such Grantor’s Securities Accounts;

 

(p)               
all of such Grantor’s Supporting Obligations;

 

(q)               
all of such Grantor’s money, Cash Equivalents, or other assets of such Grantor that now or hereafter come into the
possession, custody, or control of Collateral Agent (or its agent or designee) or any other Secured Party; and

 

(r)                
all of the Proceeds and products, whether tangible or intangible, of any of the foregoing, including proceeds of insurance
or Commercial Tort Claims covering or relating to any or all of the foregoing, and any and all Accounts, Books, Chattel Paper,
Deposit Accounts, Equipment, Farm Products, Fixtures, General Intangibles, Inventory, Investment Property, Intellectual Property,
Negotiable Collateral, Pledged Interests, Securities Accounts, Supporting Obligations, money, or other tangible or intangible property
resulting from the sale, lease, license, exchange, collection, or other disposition of any of the foregoing, the proceeds of any
award in condemnation with respect to any of the foregoing, any rebates or refunds, whether for taxes or otherwise, and all proceeds
of any such proceeds, or any portion thereof or interest therein, and the proceeds thereof, and all proceeds of any loss of, damage
to, or destruction of the above, whether insured or not insured, and, to the extent not otherwise included, any indemnity, warranty,
or guaranty payable by reason of loss or damage to, or otherwise with respect to any of the foregoing (the “Proceeds”).
Without limiting the generality of the foregoing, the term “Proceeds” includes whatever is receivable or received when
Investment Property or proceeds are sold, exchanged, collected, or otherwise disposed of, whether such disposition is voluntary
or involuntary, and includes proceeds of any indemnity or guaranty payable to any Grantor or any Secured Party from time to time
with respect to any of the Investment Property.

 

    
6

    

    

Notwithstanding anything
contained in this Agreement to the contrary, the term “Collateral” shall not include: (i) any rights or interest in
any Real Estate Asset that is not a Material Real Estate Asset, (ii) any property or assets with respect to which the granting
of security interests in such assets would (1) be prohibited by applicable law, rule or regulation (other than to the extent that
any such law, rule or regulation would be rendered ineffective pursuant to Sections 9-406, 9-407, 9-408 or 9-409 of the Code (or
any successor provision or provisions) of any applicable jurisdiction or any other applicable law (including the Bankruptcy Code)
or principles of equity), (2) be prohibited under the terms of any contractual obligation binding on the applicable Grantor at
the time the applicable property or asset was acquired provided that such prohibition was not entered into in contemplation
of such acquisition, or (3) require the consent, approval, license or authorization of any Person (including any Governmental Authority)
(other than a Grantor), in each case, other than receivables and Proceeds of any of the foregoing the assignment of which is expressly
deemed effective under the Code or other applicable law notwithstanding such law, rule, regulation, term, prohibition, condition
or requirement; provided that, upon the ineffectiveness, lapse or termination of any such law, rule, regulation, term, prohibition,
condition or requirement the Collateral shall include, and such Person shall be deemed to have granted a security interest in,
all such rights and interests as if such law, rule, regulation, term, prohibition, condition or requirement had never been in effect;
provided, further, that the exclusions referred to in this clause (ii) shall not include any Proceeds of any such property
and assets except to the extent such Proceeds otherwise constitute Excluded Assets (provided, that the foregoing exclusions
of clauses (i) and (ii) shall in no way be construed to limit, impair, or otherwise affect any of Collateral Agent’s or any
other Secured Party’s continuing security interests in and liens upon any rights or interests of any Grantor in or to (1)
monies due or to become due, or any receivables, payment intangibles or proceeds arising, under or in connection with any Real
Estate Asset or any other described property or asset, or (2) any proceeds from the sale, license, lease, or other disposition
of any such Real Estate Asset or any such other described property or asset, in each case, other than to the extent such monies,
receivables, payment intangibles or proceeds otherwise constitute Excluded Assets), (iii) motor vehicles and other goods subject
to certificates of title, (iv) any United States intent-to-use trademark applications to the extent that, and solely during the
period in which, the grant of a security interest therein would impair the validity or enforceability of such intent-to-use trademark
applications under applicable federal law; provided, that upon submission and acceptance by the PTO of an amendment to allege
use pursuant to 15 U.S.C. Section 1060(a) (or any successor provision), such intent-to-use trademark application shall be considered
Collateral, (v) those assets as to which Borrower, Collateral Agent and Required Lenders reasonably agree in writing that the cost
of obtaining such a security interest are excessive in relation to the benefit to the Secured Parties of the security to be afforded
thereby, (vi) any Margin Stock, (vii) any lease, Capital Lease, license, contract, permit, Instrument, Investment Property, franchise
agreement or other agreement to which a Grantor is a party, any property governed by any such lease, any property subject to a
purchase money security interest or capital lease obligation, any similar arrangements, and any rights or interests of a Grantor
under any Capital Lease to which it is a party, in each case, to the extent, but only to the extent, that a grant of a security
interest therein in favor of Collateral Agent would, under the terms of such lease, Capital Lease, license, contract, permit, Instrument,
Investment Property, franchise agreement, agreement, purchase money arrangement or similar arrangement, be prohibited by, result
in a breach of the terms or a condition of, constitute a default or forfeiture under, or invalidate, such lease, Capital Lease,
license, contract, permit, Instrument, Investment Property, franchise agreement, agreement, purchase money arrangement or similar
arrangement, or create a right of termination in favor of any party thereto (other than a Grantor, a Subsidiary or a Guarantor),
or require a consent of any party thereto (other than a Grantor, Subsidiary or Guarantor and other than any such consent which
has been obtained (it being understood and agreed that no Grantor, Subsidiary or Guarantor shall be required to seek any such consent)),
in each case, solely to the extent such prohibition, breach, default, forfeiture, invalidation, right of termination or requirement
of consent (as applicable) (1) was not created in contemplation of this Agreement or the other Loan Documents or (2) would not
be rendered ineffective pursuant to Sections 9-406, 9-407, 9-408 or 9-409 of the Code (or any successor provision or provisions)
of any applicable jurisdiction or any other applicable law (including the Bankruptcy Code) or principles of equity; provided
that the exclusions referred to in this clause (vii) shall not include (y) any receivables, payment intangibles and proceeds or
any monies due or to become due in respect of any of the foregoing and (z) any proceeds from the sale, license, lease, or other
disposition of any of the foregoing, in each case, except to the extent such receivables, payment intangibles, proceeds or monies
otherwise constitute Excluded Assets; provided further that immediately upon the ineffectiveness, lapse or termination of
any such law, rule, regulation, term, prohibition, restriction or condition, the Collateral shall include, and such Person shall
be deemed to have granted a security interest in, all such rights and interests as if such law, rule, regulation, term, prohibition,
restriction or condition had never been in effect, (viii) Excluded Accounts, (ix) Capital Stock in any Person, other than any wholly-owned
Subsidiary of a Grantor, to the extent a security interest therein is not permitted by the terms of such Person’s organizational
documents or joint venture documents (it being understood that no Capital Stock constitutes an Excluded Asset under this clause
(ix) as of the Closing Date) (in each case, as in effect on the date such Capital Stock was acquired), solely to the extent that
(1) such joint venture or other investment is permitted under Section 6.07 of the Credit Agreement and (2) such restriction
was not created or entered into in contemplation of the acquisition of such Capital Stock; provided, that the income stream,
receivables, and proceeds of such Capital Stock shall be included as Collateral (except to the extent otherwise constituting Excluded
Assets); provided further that the exclusion in this clause (ix) shall in no way be construed to (1) apply to the extent
that any described prohibition is ineffective under Section 9-406, 9-407, 9-408, or 9-409 of the Code or other applicable law,
or (2) limit, impair, or otherwise affect any of Collateral Agent’s continuing security interests in and liens upon any rights
or interests of any Grantor in or to (x) monies due or to become due under or in connection with such asset, or (y) any proceeds
from the sale, license, lease, or other dispositions of any such asset, in each case, except to the extent such monies or proceeds
otherwise constitute Excluded Assets; (x) any Letter of Credit Rights having an aggregate value or face amount of $250,000 or less
(except to the extent a security interest therein can be perfected by the filing of Uniform Commercial Code financing statements);
(xi) assets located outside the United States to the extent a security interest in such assets could reasonably be expected to
result in material adverse tax consequences to the Grantors; and (xii) any commercial tort claims with an amount claimed that is
not in excess of $250,000 in the aggregate for all such commercial tort claims (collectively, the “Excluded Assets”);
provided that (A) the Proceeds of any Excluded Assets shall not constitute Excluded Assets (unless such Proceeds otherwise
qualify as Excluded Assets) and (B) the Grantors shall from time to time at the reasonable request of Collateral Agent, give written
notice to Collateral Agent identifying in reasonable detail the Excluded Assets and shall provide to Collateral Agent such other
information regarding the Excluded Assets as Collateral Agent may reasonably request.

 

    
7

    

    

3.                  
Security for Secured Obligations. The Security Interest created hereby secures the payment and performance of the
Secured Obligations, whether now existing or arising hereafter. Without limiting the generality of the foregoing, this Agreement
secures the payment of all amounts which constitute part of the Secured Obligations and would be owed by Grantors, or any of them,
to the Secured Parties, or any of them, but for the fact that they are unenforceable or not allowable (in whole or in part) as
a claim in an Insolvency Proceeding involving any Grantor due to the existence of such Insolvency Proceeding. Further, the Security
Interest created hereby encumbers each Grantor’s right, title, and interest in all Collateral, whether now owned by such
Grantor or hereafter acquired, obtained, developed, or created by such Grantor and wherever located.

 

4.                  
Grantors Remain Liable. Anything herein to the contrary notwithstanding, (a) each of the Grantors shall remain liable
under the contracts and agreements included in the Collateral, including the Pledged Operating Agreements and the Pledged Partnership
Agreements, to perform all of the duties and obligations thereunder to the same extent as if this Agreement had not been executed,
(b) the exercise by Collateral Agent or any other Secured Party of any of the rights hereunder shall not release any Grantor from
any of its duties or obligations under such contracts and agreements included in the Collateral, and (c) none of the Secured Parties
shall have any obligation or liability under such contracts and agreements included in the Collateral by reason of this Agreement,
nor shall any of the Secured Parties be obligated to perform any of the obligations or duties of any Grantors thereunder or to
take any action to collect or enforce any claim for payment assigned hereunder. Until an Event of Default shall occur and be continuing,
except as otherwise provided in this Agreement, the Credit Agreement, or any other Loan Document, Grantors shall have the right
to possession and enjoyment of the Collateral for the purpose of conducting the ordinary course of their respective businesses,
subject to and upon the terms hereof and of the Credit Agreement and the other Loan Documents. Without limiting the generality
of the foregoing, it is the intention of the parties hereto that record and beneficial ownership of the Pledged Interests, including
all voting, consensual, dividend, and distribution rights, shall remain in the applicable Grantor until (i) the occurrence and
continuance of an Event of Default, and (ii) Collateral Agent has notified the applicable Grantor of Collateral Agent’s election
to exercise such rights with respect to the Pledged Interests pursuant to Section 15.

 

    
8

    

    

5.                  
Representations and Warranties. In order to induce Collateral Agent to enter into this Agreement for the benefit
of the Secured Parties, each Grantor makes the following representations and warranties to Collateral Agent and the other Secured
Parties which shall be true, correct, and complete, in all material respects (except that such materiality qualifier shall not
be applicable to any representations and warranties that already are qualified or modified by materiality in the text thereof),
as of the Closing Date, and shall be true, correct, and complete, in all material respects (except that such materiality qualifier
shall not be applicable to any representations and warranties that already are qualified or modified by materiality in the text
thereof), as of the date of the making of each Loan (or other extension of credit) made thereafter, as though made on and as of
the date of such Loan (or other extension of credit) (except to the extent that such representations and warranties relate solely
to an earlier date, in which case such representations and warranties shall be true and correct in all material respects (except
that such materiality qualifier shall not be applicable to any representations and warranties that already are qualified or modified
by materiality in the text thereof) as of such earlier date) and such representations and warranties shall survive the execution
and delivery of this Agreement:

 

(a)               
The name (within the meaning of Section 9-503 of the Code) and jurisdiction of organization of each Grantor is set forth
on Schedule 7 (as such Schedule may be updated from time to time to reflect changes permitted under the Loan Documents).

 

(b)               
The chief executive office of each Grantor is located at the address indicated on Schedule 7 (as such Schedule may
be updated from time to time to reflect changes permitted under the Loan Documents).

 

(c)               
Each Grantor’s tax identification numbers are identified on Schedule 7 (as such Schedule may be updated from
time to time to reflect changes permitted under the Loan Documents).

 

    
9

    

    

(d)               
As of the Closing Date, no Grantor holds any Commercial Tort Claims that exceed $250,000 in amount in the aggregate for
all such Commercial Tort Claims, except as set forth on Schedule 1.

 

(e)               
[reserved]

 

(f)                
Schedule 8 sets forth all Real Property that is a Material Real Estate Asset owned by any of the Grantors as of the
Closing Date.

 

(g)               
As of the Closing Date: (i) Schedule 2 provides a complete and correct list of all registered Copyrights and applications
for registration of Copyrights owned by any Grantor, (ii) Schedule 3 provides a complete and correct list of all Intellectual
Property Licenses with respect to registered Intellectual Property (including Patents and Licensed Trademarks) entered into by
any Grantor pursuant to which (A) any Grantor has provided any license or other rights in registered Intellectual Property (including
Patents) owned or controlled by such Grantor to any other Person (other than non-exclusive software licenses granted in the ordinary
course of business), or (B) any Person has granted to any Grantor any license or other rights in registered Intellectual Property
(including Patents) owned or controlled by such Person that is material to the business of such Grantor, including any such Intellectual
Property that is incorporated in any Inventory, software, or other product marketed, sold, licensed, or distributed by such Grantor
(other than off-the-shelf, shrink-wrapped or “click to accept” software licenses or other licenses to generally commercially
available software), (iii) Schedule 4 provides a complete and correct list of all Patents owned by any Grantor and all applications
for Patents owned by any Grantor, and (iv) Schedule 6 provides a complete and correct list of all registered Trademarks
owned by any Grantor, and all applications for registration of Trademarks owned by any Grantor.

 

(h)               
(i) (A) each Grantor owns or holds licenses in all Intellectual Property that is necessary in or material to the conduct
of its business, and (B) all employees and contractors of each Grantor who were involved in the creation or development of any
Intellectual Property for such Grantor that is necessary in or material to the business of such Grantor have signed agreements
containing assignment of Intellectual Property rights to such Grantor and obligations of confidentiality;

 

(ii)                  
to each Grantor’s knowledge after reasonable inquiry, no Person has infringed or misappropriated or is currently infringing
or misappropriating any Intellectual Property rights owned by such Grantor, in each case, that either individually or in the aggregate
could reasonably be expected to result in a Material Adverse Effect;

 

(iii)                  
to each Grantor’s knowledge after reasonable inquiry, all registered Copyrights, registered Trademarks, and issued
Patents that are owned by such Grantor and necessary in or material to the conduct of its business are valid, subsisting and enforceable
and in compliance with all legal requirements, filings, and payments and other actions that are required to maintain such Intellectual
Property in full force and effect, and

 

(iv)                   
each Grantor has taken reasonable steps to maintain the confidentiality of and otherwise protect and enforce its rights
in all trade secrets owned by such Grantor that are necessary in or material to the conduct of the business of such Grantor.

 

    
10

    

    

(i)                
This Agreement creates a valid security interest in the Collateral of each Grantor, to the extent a security interest therein
can be created under the Code, securing the payment of the Secured Obligations. Except to the extent a security interest in the
Collateral cannot be perfected by the filing of a financing statement under the Code, all filings to perfect such security interest
have been duly taken or will have been taken upon the filing of financing statements listing each applicable Grantor, as a debtor,
and Collateral Agent, as secured party, in the jurisdictions listed next to such Grantor’s name on Schedule 9. Upon
the making of such filings, Collateral Agent shall have a First Priority perfected security interest in the Collateral of each
Grantor to the extent such security interest can be perfected by the filing of a financing statement under the Code. Upon filing
of any Copyright Security Agreement with the United States Copyright Office, filing of any Patent Security Agreement and any Trademark
Security Agreement with the PTO, and the filing of appropriate financing statements in the jurisdictions listed on Schedule
9, all action necessary to perfect and to the extent required by this Agreement and the other Loan Documents, protect the Security
Interest in and on each Grantor’s United States issued Patents, registered Trademarks, or registered Copyrights has been
taken and such perfected Security Interest is enforceable as such as against any and all creditors of and purchasers from any Grantor
of such Intellectual Property. All action by any Grantor required by this Agreement and the other Loan Documents, to protect and
perfect such security interest on each item of Collateral has been duly taken.

 

(j)                
(i) Except for the Security Interest created hereby, each Grantor is and will at all times be the sole holder of record
and the legal and beneficial owner, free and clear of all Liens other than Permitted Liens, of the Pledged Interests indicated
on Schedule 5 as being owned by such Grantor and, when acquired by such Grantor, any Pledged Interests acquired after the
Closing Date, (ii) all of the Pledged Interests are duly authorized, validly issued, fully paid and non-assessable and the Pledged
Interests constitute or will constitute the percentage of the issued and outstanding Capital Stock of the Pledged Companies of
such Grantor identified on Schedule 5 as supplemented or modified by any Pledged Interests Addendum or any Joinder to this
Agreement, (iii) such Grantor has the right and requisite authority to pledge, the Investment Property pledged by such Grantor
to Collateral Agent as provided herein, (iv) all actions necessary to perfect and establish a First Priority Lien, or to the extent
otherwise required by this Agreement and the other Loan Documents, to otherwise protect, Collateral Agent’s Liens in the
Investment Property, and the proceeds thereof, have been duly taken, upon (A) the execution and delivery of this Agreement, (B)
the taking of possession by Collateral Agent (or its agent or designee) of any certificates representing the Pledged Interests,
to the extent such Pledged Interests are represented by certificates, together with undated powers (or other documents of transfer
acceptable to Collateral Agent) endorsed in blank by the applicable Grantor, (C) the filing of financing statements in the applicable
jurisdiction set forth on Schedule 9 for such Grantor with respect to the Pledged Interests of such Grantor that are not
represented by certificates, and (D) with respect to any Securities Accounts (other than Excluded Accounts), the delivery of Control
Agreements with respect thereto, and (v) each Grantor has delivered to and deposited with Collateral Agent all certificates representing
the Pledged Interests owned by such Grantor to the extent such Pledged Interests are represented by certificates, and undated powers
(or other documents of transfer acceptable to Collateral Agent) endorsed in blank with respect to such certificates. None of the
Pledged Interests owned or held by such Grantor has been issued or transferred in violation of any securities registration, securities
disclosure, or similar laws of any jurisdiction to which such issuance or transfer may be subject.

 

(k)               
No consent, approval, authorization, or other order or other action by, and no notice to or filing with, any Governmental
Authority or any other Person is required (i) for the grant of a Security Interest by such Grantor in and to the Collateral pursuant
to this Agreement or for the execution, delivery, or performance of this Agreement by such Grantor, or (ii) for the exercise by
Collateral Agent of the voting or other rights provided for in this Agreement with respect to the Investment Property or the remedies
in respect of the Collateral pursuant to this Agreement, except (A) as may be required in connection with such disposition of Investment
Property by laws affecting the offering and sale of securities generally, (B) for consents, approvals, authorizations, or other
orders or actions that have already been obtained or given (as applicable) and that are still in force, and (C) the filing of financing
statements and other filings necessary to perfect the Security Interests granted hereby. No Intellectual Property License of any
Grantor relating to any Licensed Trademarks constituting Material Intellectual Property requires any consent of any other Person
that has not been obtained in order for such Grantor to grant the security interest granted hereunder in such Grantor’s right,
title or interest in or to such Intellectual Property License or for Collateral Agent to enforce any of its remedies under the
Loan Documents. Except for consents which have been obtained, no material portion of the Eligible Inventory is subject to any Intellectual
Property License which would require any consent of any third party upon sale or disposition of that Eligible Inventory pursuant
to a going-out-of-business sale, orderly liquidation or similar sale, in each case to the extent such going-out-of-business sale,
orderly liquidation or similar sale is conducted at any retail store operated by any Grantor or any location operated by a Third
Party Franchisee.

 

    
11

    

    

(l)                
As to all limited liability company or partnership interests, issued under any Pledged Operating Agreement or Pledged Partnership
Agreement, each Grantor hereby represents and warrants that the Pledged Interests issued pursuant to such agreement (i) are not
dealt in or traded on securities exchanges or in securities markets, (ii) do not constitute investment company securities, and
(iii) are not held by such Grantor in a Securities Account. In addition, none of the Pledged Operating Agreements, the Pledged
Partnership Agreements, or any other agreements governing any of the Pledged Interests issued under any Pledged Operating Agreement
or Pledged Partnership Agreement, provides that such Pledged Interests are securities governed by Article 8 of the Uniform Commercial
Code as in effect in any relevant jurisdiction.

 

(m)             
As to any Credit Card Receivables, (i) no amount payable to any Grantor under or in connection with any Credit Card Receivable
is evidenced by any Instrument or Chattel Paper which has not been delivered to Collateral Agent to the extent required pursuant
to this Agreement, (ii) none of the obligors on any Credit Card Receivable is a Governmental Authority, and (iii) except as would
not be reasonably expected to result in a Material Adverse Effect, there are no facts, events or occurrences which would impair
the validity of any Credit Card Receivable, or tend to reduce the amount payable thereunder from the face amount of the claim or
invoice or statements delivered to Collateral Agent with respect thereto (other than arising in the ordinary course of business).

 

6.                  
Covenants. Each Grantor, jointly and severally, covenants and agrees with Collateral Agent that from and after the
date of this Agreement and until the date of termination of this Agreement in accordance with Section 22:

 

(a)               
Possession of Collateral. In the event that any Collateral, including Proceeds, is evidenced by or consists of Drafts,
Documents, Certificated Securities, Promissory Notes, or tangible Chattel Paper having an aggregate value or face amount of $500,000
or more for all such Drafts, Documents, Certificated Securities, Promissory Notes, or tangible Chattel Paper, the Grantors shall
promptly (and in any event within 30 days (or such longer period as agreed to in writing by Collateral Agent) after acquisition
thereof), notify Collateral Agent thereof, and if and to the extent that perfection or priority of Collateral Agent’s Security
Interest is dependent on or enhanced by possession, the applicable Grantor, promptly (and in any event within five Business Days
(or such longer period as agreed to in writing by Collateral Agent)) after request by Collateral Agent, shall execute such other
documents and instruments as shall be requested by Collateral Agent or, if applicable, endorse and deliver physical possession
of such Drafts, Documents, Certificated Securities, Promissory Notes, or tangible Chattel Paper to Collateral Agent, together with
such undated powers (or other relevant document of transfer acceptable to Collateral Agent) endorsed in blank as shall be requested
by Collateral Agent, and shall do such other acts or things, reasonably deemed necessary or desirable by Collateral Agent to protect
Collateral Agent’s Security Interest therein, to the extent otherwise required by this Agreement and the other Loan Documents.

 

    
12

    

    

(b)               
Chattel Paper.

 

(i)                  
Promptly (and in any event within five Business Days (or such longer period as agreed to in writing by Collateral Agent))
after request by Collateral Agent, each Grantor shall take all steps reasonably necessary to grant Collateral Agent control of
all electronic Chattel Paper in accordance with the Code and all “transferable records” as that term is defined in
Section 16 of the Uniform Electronic Transaction Act and Section 201 of the federal Electronic Signatures in Global and National
Commerce Act as in effect in any relevant jurisdiction, to the extent that the aggregate value or face amount of such electronic
Chattel Paper equals or exceeds $500,000; and

 

(ii)                  
If any Grantor retains possession of any tangible Chattel Paper or Instruments (which retention of possession shall be subject
to the extent permitted hereby and by the Credit Agreement), promptly upon the request of Collateral Agent, such tangible Chattel
Paper and Instruments shall be marked with the following legend (or a similar legend as agreed to by Collateral Agent): “This
writing and the obligations evidenced or secured hereby are subject to the Security Interest of Guggenheim Credit Services, LLC,
as Collateral Agent for the benefit of the Secured Parties”.

 

(c)               
[reserved]

 

(d)               
Letter-of-Credit Rights. If the Grantors (or any of them) are or become the beneficiary of letters of credit having
a face amount or value of $250,000 or more in the aggregate, then the applicable Grantor or Grantors shall promptly (and in any
event within 30 days (or such longer period as agreed to in writing by Collateral Agent) after becoming a beneficiary), notify
Collateral Agent thereof and, promptly (and in any event within 30 days (or such longer period as agreed to in writing by Collateral
Agent)) after request by Collateral Agent, enter into a tri-party agreement with Collateral Agent and the issuer or confirming
bank with respect to letter-of-credit rights assigning such letter-of-credit rights to Collateral Agent and directing all payments
thereunder to the Deposit Account specified by Collateral Agent, all in form and substance reasonably satisfactory to Collateral
Agent.

 

(e)               
Commercial Tort Claims. If the Grantors (or any of them) obtain any Commercial Tort Claims having a value, or involving
an asserted claim, in the amount of $250,000 or more in the aggregate for all such Commercial Tort Claims, then the applicable
Grantor or Grantors shall promptly (and in any event within 30 days (or such longer period as agreed to in writing by Collateral
Agent) of obtaining such Commercial Tort Claims), notify Collateral Agent upon incurring or otherwise obtaining such Commercial
Tort Claims and, promptly (and in any event within five Business Days (or such longer period as agreed to in writing by Collateral
Agent)) after request by Collateral Agent, amend Schedule 1 to describe such Commercial Tort Claims in a manner that reasonably
identifies such Commercial Tort Claims and which is otherwise reasonably satisfactory to Collateral Agent, and hereby authorizes
the filing of additional financing statements or amendments to existing financing statements describing such Commercial Tort Claims,
and agrees to do such other acts or things reasonably deemed necessary or desirable by Collateral Agent to give Collateral Agent
a First Priority, perfected security interest in any such Commercial Tort Claims.

 

(f)                
Government Contracts. Other than Accounts and Chattel Paper the aggregate value of which does not at any one time
exceed $500,000, if any Account or Chattel Paper arises out of a contract or contracts with the United States of America or any
department, agency, or instrumentality thereof, Grantors shall promptly (and in any event within 30 days (or such longer period
as agreed to in writing by Collateral Agent) of the creation thereof) notify Collateral Agent thereof and, promptly (and in any
event within 30 days (or such longer period as agreed to in writing by Collateral Agent)) after request by Collateral Agent, execute
any instruments or take any steps reasonably required by Collateral Agent in order that all moneys due or to become due under such
contract or contracts shall be assigned to Collateral Agent, for the benefit of the Secured Parties, and shall provide written
notice thereof under the Assignment of Claims Act or other applicable law.

 

    
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(g)               
Intellectual Property.

 

(i)                  
Upon the request of Collateral Agent, in order to facilitate filings with the PTO and the United States Copyright Office,
each Grantor shall execute and deliver to Collateral Agent one or more Copyright Security Agreements, Trademark Security Agreements,
or Patent Security Agreements to further evidence Collateral Agent’s Lien on such Grantor’s United States issued and
registered Patents, Trademarks, or Copyrights, and the General Intangibles of such Grantor relating thereto or represented thereby;

 

(ii)                  
Each Grantor shall have the duty, with respect to Intellectual Property that is necessary in or material to the conduct
of such Grantor’s business, to protect and diligently enforce and defend at such Grantor’s expense its Intellectual
Property, including (A) to diligently enforce and defend, including promptly suing for infringement, misappropriation, or dilution
and to recover any and all damages for such infringement, misappropriation, or dilution, and filing for opposition, interference,
and cancellation against conflicting Intellectual Property rights of any Person, (B) to prosecute diligently any trademark application
or service mark application that is part of the Trademarks pending as of the date hereof or hereafter until the termination of
this Agreement, (C) to prosecute diligently any patent application that is part of the Patents pending as of the date hereof or
hereafter until the termination of this Agreement, (D) to take all reasonable and necessary action to preserve and maintain all
of such Grantor’s Trademarks, Patents, Copyrights, Intellectual Property Licenses, and its rights therein, including paying
all maintenance fees and filing of applications for renewal, affidavits of use, and affidavits of noncontestability, and (E) to
require all employees, consultants, and contractors of each Grantor who were involved in the creation or development of such Intellectual
Property to sign agreements containing assignment of Intellectual Property rights and obligations of confidentiality. Each Grantor
further agrees not to abandon any Intellectual Property or Intellectual Property License that is necessary in or material to the
conduct of such Grantor’s business. Each Grantor hereby agrees to take the steps described in this Section 6(g)(ii)
with respect to all new or acquired Intellectual Property to which it or any of its Subsidiaries is now or later becomes entitled
that is necessary in or material to the conduct of such Grantor’s business;

 

(iii)                  
Grantors acknowledge and agree that the Secured Parties shall have no duties with respect to any Intellectual Property or
Intellectual Property Licenses of any Grantor. Without limiting the generality of this Section 6(g)(iii), Grantors acknowledge
and agree that no Secured Party shall be under any obligation to take any steps necessary to preserve rights in the Collateral
consisting of Intellectual Property or Intellectual Property Licenses against any other Person, but any Secured Party may do so
at its option from and after the occurrence and during the continuance of an Event of Default, and all expenses incurred in connection
therewith (including reasonable fees and expenses of attorneys and other professionals) shall be for the sole account of Borrower
and shall be chargeable to the Loan Account;

 

(iv)                   
On each date on which a Compliance Certificate is required to be delivered pursuant to Section 5.01(d) of the Credit
Agreement (or, if an Event of Default has occurred and is continuing, more frequently if requested by Collateral Agent), each Grantor
shall provide Collateral Agent with a written report of all new Patents, Trademarks or Copyrights that are registered or the subject
of pending applications for registrations, and of all Intellectual Property Licenses that are material to the conduct of such Grantor’s
business, in each case, which were acquired, registered, or for which applications for registration were filed by any Grantor during
the prior period and any statement of use or amendment to allege use with respect to intent-to-use trademark applications. In the
case of such registrations or applications therefor, which were acquired by any Grantor, each such Grantor shall file the necessary
documents with the appropriate Governmental Authority identifying the applicable Grantor as the owner (or as a co-owner thereof,
if such is the case) of such Intellectual Property. In each of the foregoing cases, the applicable Grantor shall promptly cause
to be prepared, executed, and delivered to Collateral Agent supplemental schedules to the applicable Loan Documents to identify
such Patent, Trademark and Copyright registrations and applications therefor (with the exception of Trademark applications filed
on an intent-to-use basis for which no statement of use or amendment to allege use has been filed) and Intellectual Property Licenses
as being subject to the security interests created thereunder;

 

    
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(v)                  
Anything to the contrary in this Agreement notwithstanding, in no event shall any Grantor, either itself or through any
agent, employee, licensee, or designee, file an application for the registration of any Copyright with the United States Copyright
Office or any similar office or agency in another country without giving Collateral Agent written notice thereof at least 30 days
prior to such filing and complying with Section 6(g)(i), and if available, each such application for registration shall
be filed on an “expedited basis”. Upon receipt from the United States Copyright Office of notice of registration of
any Copyright, each Grantor shall promptly (but in no event later than 30 days (or such longer period as agreed to in writing by
Collateral Agent) following such receipt) notify (but without duplication of any notice required by Section 6(g)(iv)) Collateral
Agent of such registration by delivering, or causing to be delivered, to Collateral Agent, documentation sufficient for Collateral
Agent to perfect Collateral Agent’s Liens on such Copyright. If any Grantor acquires from any Person any Copyright registered
with the United States Copyright Office or an application to register any Copyright with the United States Copyright Office, such
Grantor shall promptly (but in no event later than 30 days (or such longer period as agreed to in writing by Collateral Agent)
following such acquisition) notify Collateral Agent of such acquisition and deliver, or cause to be delivered, to Collateral Agent,
documentation sufficient for Collateral Agent to perfect Collateral Agent’s Liens on such Copyright. In the case of such
Copyright registrations or applications therefor which were acquired by any Grantor, each such Grantor shall promptly (but in no
event later than 30 days (or such longer period as agreed to in writing by Collateral Agent) following such acquisition) file the
necessary documents with the appropriate Governmental Authority identifying the applicable Grantor as the owner (or as a co-owner
thereof, if such is the case) of such Copyrights;

 

(vi)                   
Each Grantor shall take reasonable steps to maintain the confidentiality of, and otherwise protect and enforce its rights
in, the Intellectual Property that is necessary in or material to the conduct of such Grantor’s business, including, as applicable
(A) protecting the secrecy and confidentiality of its confidential information and trade secrets by having and enforcing a reasonable
policy requiring all current employees, consultants, licensees, vendors and contractors with access to such information to execute
appropriate confidentiality agreements, (B) taking actions reasonably necessary to ensure that no trade secret falls into the public
domain, and (C) protecting the secrecy and confidentiality of the source code of all software programs and applications of which
it is the owner or licensee by having and enforcing a reasonable policy requiring any licensees (or sublicensees) of such source
code to enter into license agreements with commercially reasonable use and non-disclosure restrictions; and

 

(vii)                   
No Grantor shall enter into any Intellectual Property License that the Grantor reasonably believes would constitute Material
Intellectual Property unless such Grantor has used commercially reasonable efforts to permit the assignment of or grant of a security
interest in such Intellectual Property License (and all rights of Grantor thereunder) to Collateral Agent (and any permitted transferees
of Collateral Agent); provided that the Grantor shall use commercially reasonable efforts to ensure that no such Intellectual
Property License (x) shall restrict or prohibit Collateral Agent from enforcing any of its remedies under the Loan Documents with
respect to any of the Collateral and (y) shall require (and the Grantor shall use commercially reasonable efforts to ensure that
no Grantor shall enter into any amendment to any Intellectual Property License that would require) any consent of any third party
in connection with the sale or other disposition of any material portion of the Eligible Inventory which is subject to such Intellectual
Property License (including to the extent such sale or other disposition is pursuant to a going-out-of-business sale, orderly liquidation
or similar sale).

 

    
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(h)               
Investment Property.

 

(i)                  
If any Grantor shall acquire, obtain, receive or become entitled to receive any Pledged Interests after the Closing Date,
it shall promptly (and in any event within 30 days (or such longer period as agreed to in writing by Collateral Agent) of acquiring
or obtaining such Collateral) deliver to Collateral Agent a duly executed Pledged Interests Addendum identifying such Pledged Interests;

 

(ii)                  
Upon the occurrence and during the continuance of an Event of Default, following the request of Collateral Agent, all sums
of money and property paid or distributed in respect of the Pledged Interests that are received by any Grantor shall be held by
the Grantors in trust for the benefit of Collateral Agent segregated from such Grantor’s other property, and such Grantor
shall deliver it forthwith to Collateral Agent in the exact form received;

 

(iii)                  
Each Grantor shall promptly deliver to Collateral Agent a copy of each material notice or other material communication received
by it in respect of any Pledged Interests;

 

(iv)                   
No Grantor shall make or consent to any amendment or other modification or waiver with respect to any Pledged Interests,
Pledged Operating Agreement, or Pledged Partnership Agreement, or enter into any agreement or permit to exist any restriction with
respect to any Pledged Interests, in each case, if the same is prohibited pursuant to the Loan Documents;

 

(v)                  
Each Grantor agrees that it will cooperate with Collateral Agent in obtaining all necessary approvals and making all necessary
filings under federal, state, local, or foreign law to effect the perfection of the Security Interest on the Investment Property
or to effect any sale or transfer thereof, in each case subject to Section 5.10 of the Credit Agreement with respect to
perfection actions (A) in any jurisdiction outside of the United States or any State thereof and (B) under any security agreement
or pledge governed by the laws of any jurisdiction other than the United States or any State thereof;

 

(vi)                   
As to all limited liability company or partnership interests owned by such Grantor and issued under any Pledged Operating
Agreement or Pledged Partnership Agreement, each Grantor hereby covenants that the Pledged Interests issued pursuant to such agreement
(A) are not and shall not be dealt in or traded on securities exchanges or in securities markets, (B) do not and will not constitute
investment company securities, and (C) are not and will not be held by such Grantor in a securities account. In addition,
none of the Pledged Operating Agreements, the Pledged Partnership Agreements, or any other agreements governing any of the Pledged
Interests issued under any Pledged Operating Agreement or Pledged Partnership Agreement, provides or shall provide that such Pledged
Interests are securities governed by Article 8 of the Uniform Commercial Code as in effect in any relevant jurisdiction; and

 

(vii)                   
With regard to any Pledged Interests that are not certificated, to the extent any Grantor is an issuer of such non-certificated
Pledged Interests, such Grantor in its capacity as an issuer (i) agrees promptly to note on its books the security interests granted
to Collateral Agent and confirmed under this Agreement, (ii) agrees that after the occurrence and during the continuation of an
Event of Default, it will comply with instructions of Collateral Agent or its nominee with respect to the applicable Pledged Interests
without further consent by the applicable Grantor, (iii) to the extent permitted by law, agrees that the “issuer’s
jurisdiction” (as defined in Section 8-110 of the UCC) is the State of New York, (iv) agrees to notify Collateral Agent upon
obtaining knowledge of any interest in favor of any person in the applicable Pledged Interests that is materially adverse to the
interest of Collateral Agent therein, other than any Permitted Liens and (v) waives any right or requirement at any time hereafter
to receive a copy of this Agreement in connection with the registration of any Pledged Interests hereunder in the name of Collateral
Agent or its nominee or the exercise of voting rights by Collateral Agent or its nominee.

    
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(i)                
Pledged Note. Grantors, without the prior written consent of Collateral Agent, will not (i) except as otherwise permitted
under Section 6.09(k) of the Credit Agreement, waive or release the payment obligations on the maturity date of the Pledged Note
of any Person obligated under the Pledged Note or (ii) release any material portion of the collateral securing the obligations
under the Pledged Note.

 

(j)                
Transfers and Other Liens. Grantors shall not (i) sell, assign (by operation of law or otherwise) or otherwise dispose
of, or grant any option with respect to, any of the Collateral, except as permitted by the Credit Agreement, or (ii) create or
permit to exist any Lien upon or with respect to any of the Collateral of any Grantor, except for Permitted Liens. The inclusion
of Proceeds in the Collateral shall not be deemed to constitute Collateral Agent’s consent to any sale or other disposition
of any of the Collateral except as expressly permitted in this Agreement or the other Loan Documents.

 

(k)               
[reserved]

 

(l)                
Name, Etc. No Grantor will change its name, chief executive office, jurisdiction of organization or organizational
identity without providing Collateral Agent written notice thereof promptly (and in any event within 30 days (or such longer period
as agreed to in writing by Collateral Agent) after such change).

 

(m)             
Credit Card Receivables.

 

(i)                  
As of the time when any of its Credit Card Receivables is included in the Borrowing Base as an Eligible Credit Card Receivable,
each Grantor shall be deemed to have represented and warranted that such Credit Card Receivable, and all records, papers and documents
relating thereto (x) are genuine and correct and in all material respects what they purport to be, (y) represent the legal, valid
and binding obligation of the Account Debtor, except as such enforceability may be limited by bankruptcy, insolvency, reorganization,
moratorium or similar Requirements of Law relating to or limiting creditors’ rights generally or by equitable principles
relating to enforceability, evidencing indebtedness unpaid and owed by such Account Debtor, arising out of the performance of labor
or services or the sale, lease, license, assignment or other disposition and delivery of the goods or other property listed therein
or out of an advance or a loan, and (z) are in all material respects in compliance and conform with all applicable Requirements
of Law.

 

(ii)                  
Each Grantor shall keep and maintain at its own cost and expense complete records of each Credit Card Receivable, in a manner
consistent with prudent business practice, including, without limitation, records of all payments received, all credits granted
thereon, all merchandise returned and all other documentation relating thereto. Each Grantor shall, at such Grantor’s sole
cost and expense, upon Collateral Agent’s demand made at any time after the occurrence and during the continuance of any
Event of Default, deliver all tangible evidence of all Credit Card Receivables, including, without limitation, all documents evidencing
such Credit Card Receivables and any books and records relating thereto to Collateral Agent or to its representatives (copies of
which evidence and books and records may be retained by such Grantor). Upon the occurrence and during the continuance of any Event
of Default, Collateral Agent may transfer a full and complete copy of any Grantor’s books, records, credit information, reports,
memoranda and all other writings relating to the Credit Card Receivables to and for the use by any Person that has acquired or
is contemplating acquisition of an interest in the Credit Card Receivables or Collateral Agent’s security interest therein
in accordance with applicable Requirements of Law without the consent of any Grantor.

 

    
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(iii)                  
No Grantor shall rescind or cancel any indebtedness evidenced by any Credit Card Receivable or modify any term thereof or
make any adjustment with respect thereto except in the ordinary course of business consistent with prudent business practice, or
extend or renew any such indebtedness except in the ordinary course of business consistent with prudent business practice or compromise
or settle any dispute, claim, suit or legal proceeding relating thereto or sell any Credit Card Receivable or interest therein
except in the ordinary course of business consistent with prudent business practice or in accordance with the Credit Agreement
without the prior written consent of Collateral Agent.

 

7.                  
Relation to Other Security Documents. The provisions of this Agreement shall be read and construed with the other
Loan Documents referred to below in the manner so indicated.

 

(a)               
Credit Agreement. In the event of any conflict between any provision in this Agreement and a provision in the Credit
Agreement, such provision of the Credit Agreement shall control.

 

(b)               
Patent, Trademark, Copyright Security Agreements. The provisions of the Copyright Security Agreements, Trademark
Security Agreements, and Patent Security Agreements are supplemental to the provisions of this Agreement, and nothing contained
in the Copyright Security Agreements, Trademark Security Agreements, or the Patent Security Agreements shall limit any of the rights
or remedies of Collateral Agent hereunder. In the event of any conflict between any provision in this Agreement and a provision
in a Copyright Security Agreement, Trademark Security Agreement or Patent Security Agreement, such provision of this Agreement
shall control.

 

8.                  
Further Assurances.

 

(a)               
To the extent required by this Agreement or any other Loan Document, each Grantor agrees that from time to time, at its
own expense, such Grantor will promptly execute and deliver all further instruments and documents, and take all further action,
that Collateral Agent may reasonably request, in order to perfect and protect the Security Interest granted hereby, to create,
perfect or protect the Security Interest purported to be granted hereby or to enable Collateral Agent to exercise and enforce its
rights and remedies hereunder with respect to any of the Collateral.

 

(b)               
To the extent required by this Agreement or any other Loan Document, each Grantor authorizes the filing by Collateral Agent
of financing or continuation statements, or amendments thereto, and such Grantor will execute and deliver to Collateral Agent such
other instruments or notices, as Collateral Agent may reasonably request, in order to perfect and preserve the Security Interest
granted or purported to be granted hereby, to the extent required by this Agreement or any other Loan Document.

 

(c)               
Each Grantor authorizes Collateral Agent at any time and from time to time to file, transmit, or communicate, as applicable,
financing statements and amendments (i) describing the Collateral as “all personal property of debtor” or “all
assets of debtor” or words of similar effect, (ii) describing the Collateral as being of equal or lesser scope or with greater
detail, or (iii) that contain any information required by part 5 of Article 9 of the Code for the sufficiency or filing office
acceptance. Each Grantor also hereby ratifies any and all financing statements or amendments previously filed by Collateral Agent
in any jurisdiction.

 

    
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(d)               
Each Grantor acknowledges that it is not authorized to file any financing statement or amendment or termination statement
with respect to any financing statement filed in connection with this Agreement without the prior written consent of Collateral
Agent, subject to such Grantor’s rights under Section 9-509(d)(2) of the Code.

 

9.                  
Collateral Agent’s Right to Perform Contracts, Exercise Rights, etc. Upon the occurrence and during the continuance
of an Event of Default, Collateral Agent (or its designee) (a) may, to the extent permitted by law, proceed to perform any and
all of the obligations of any Grantor contained in any contract, lease, or other agreement constituting Collateral and exercise
any and all rights of any Grantor therein contained as fully as such Grantor itself could, (b) shall, to the extent permitted by
law, have the right (subject to Section 16(b)) to use any Grantor’s rights under Intellectual Property Licenses in
connection with the enforcement of Collateral Agent’s rights hereunder, including the right to prepare for sale and sell
any and all Inventory and Equipment now or hereafter owned by any Grantor and now or hereafter covered by such licenses, and (c)
shall have the right to request that any Capital Stock that are pledged hereunder be registered in the name of Collateral Agent
or any of its nominees.

 

10.              
Collateral Agent Appointed Attorney-in-Fact. Each Grantor hereby irrevocably appoints Collateral Agent its attorney-in-fact,
with full authority in the place and stead of such Grantor and in the name of such Grantor or otherwise, at such time as an Event
of Default has occurred and is continuing under the Credit Agreement, to take any action and to execute any instrument which Collateral
Agent may reasonably deem necessary or advisable to accomplish the purposes of this Agreement, including:

 

(a)               
to ask, demand, collect, sue for, recover, compromise, receive and give acquittance and receipts for moneys due and to become
due under or in connection with the Accounts or any other Collateral of such Grantor;

 

(b)               
to receive, indorse, and collect any drafts or other instruments, documents, Negotiable Collateral or Chattel Paper;

 

(c)               
to file any claims or take any action or institute any proceedings which Collateral Agent may reasonably deem necessary
or desirable for the collection of any of the Collateral of such Grantor or otherwise to enforce the rights of Collateral Agent
with respect to any of the Collateral;

 

(d)               
to repair, alter, or supply goods, if any, necessary to fulfill in whole or in part the purchase order of any Person obligated
to such Grantor in respect of any Account of such Grantor;

 

(e)               
to use any Intellectual Property or Intellectual Property Licenses of such Grantor, including but not limited to any labels,
Patents, Trademarks, trade names, URLs, domain names, industrial designs, Copyrights, or advertising matter, in preparing for sale,
advertising for sale, or selling Inventory or other Collateral and to collect any amounts due under Accounts, contracts or Negotiable
Collateral of such Grantor; and

 

(f)                
Collateral Agent, on behalf of the Secured Parties, shall have the right, but shall not be obligated, to bring suit in its
own name to enforce the Intellectual Property and Intellectual Property Licenses and, if Collateral Agent shall commence any such
suit, the appropriate Grantor shall, at the request of Collateral Agent, do any and all lawful acts and execute any and all proper
documents reasonably required by Collateral Agent in aid of such enforcement.

 

To the extent permitted
by law, each Grantor hereby ratifies all that such attorney-in-fact shall lawfully do or cause to be done by virtue hereof. This
power of attorney is coupled with an interest and shall be irrevocable until this Agreement is terminated.

 

    
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11.              
Collateral Agent May Perform. If any Grantor fails to perform any agreement contained herein, Collateral Agent may
itself perform, or cause performance of, such agreement, and the reasonable expenses of Collateral Agent incurred in connection
therewith shall be payable, jointly and severally, by Grantors in accordance with the terms of the Credit Agreement.

 

12.              
Collateral Agent’s Duties. The powers conferred on Collateral Agent hereunder are solely to protect Collateral
Agent’s interest in the Collateral, for the benefit of the Secured Parties, and shall not impose any duty upon Collateral
Agent to exercise any such powers. Except for the safe custody of any Collateral in its actual possession and the accounting for
moneys actually received by it hereunder, Collateral Agent shall have no duty as to any Collateral or as to the taking of any necessary
steps to preserve rights against prior parties or any other rights pertaining to any Collateral. Collateral Agent shall be deemed
to have exercised reasonable care in the custody and preservation of any Collateral in its actual possession if such Collateral
is accorded treatment substantially equal to that which Collateral Agent accords its own property.

 

13.              
Collection of Accounts, General Intangibles and Negotiable Collateral. At any time upon the occurrence and during
the continuance of an Event of Default, Collateral Agent or Collateral Agent’s designee may (a) make direct verification
from Account Debtors with respect to any or all Accounts that are part of the Collateral, (b) notify Account Debtors of any Grantor
that the Accounts, General Intangibles, Chattel Paper or Negotiable Collateral of such Grantor have been assigned to Collateral
Agent, for the benefit of the Secured Parties, or that Collateral Agent has a security interest therein, or (c) collect the Accounts,
General Intangibles and Negotiable Collateral of any Grantor directly, and any reasonable collection costs and expenses shall constitute
part of such Grantor’s Secured Obligations under the Loan Documents.

 

14.              
Disposition of Pledged Interests by Collateral Agent. None of the Pledged Interests existing as of the date of this
Agreement are, and other than to the extent hereafter disclosed, none of the Pledged Interests hereafter acquired on the date of
acquisition thereof will be, registered or qualified under the various federal or state securities laws of the United States and
to the extent not so registered or qualified, disposition thereof after an Event of Default has occurred and is continuing may
be restricted to one or more private (instead of public) sales in view of the lack of such registration. Each Grantor understands
that in connection with such disposition, Collateral Agent may approach only a restricted number of potential purchasers and further
understands that a sale under such circumstances may yield a lower price for the Pledged Interests than if the Pledged Interests
were registered and qualified pursuant to federal and state securities laws and sold on the open market. Each Grantor, therefore,
agrees that: (a) if Collateral Agent shall, pursuant to the terms of this Agreement, sell or cause the Pledged Interests or any
portion thereof to be sold at a private sale, Collateral Agent shall have the right to rely upon the advice and opinion of any
nationally recognized brokerage or investment firm (but shall not be obligated to seek such advice and the failure to do so shall
not be considered in determining the commercial reasonableness of such action) as to the best manner in which to offer the Pledged
Interest or any portion thereof for sale and as to the best price reasonably obtainable at the private sale thereof, and (b) such
reliance shall be conclusive evidence that Collateral Agent has handled the disposition in a commercially reasonable manner.

 

15.              
Voting and Other Rights in Respect of Pledged Interests.

 

(a)               
Upon the occurrence and during the continuation of an Event of Default, (i) Collateral Agent may, at its option, and in
addition to all rights and remedies available to Collateral Agent under any other agreement, at law, in equity, or otherwise, exercise
all voting rights, or any other ownership or consensual rights (including any dividend or distribution rights) in respect of the
Pledged Interests owned by such Grantor, but under no circumstances is Collateral Agent obligated by the terms of this Agreement
to exercise such rights, and (ii) if Collateral Agent duly exercises its right to vote any of such Pledged Interests, each Grantor
hereby appoints Collateral Agent, such Grantor’s true and lawful attorney-in-fact and IRREVOCABLE PROXY to vote such Pledged
Interests in any manner Collateral Agent deems advisable for or against all matters submitted or which may be submitted to a vote
of shareholders, partners or members, as the case may be. The power-of-attorney and proxy granted hereby is coupled with an interest
and shall be irrevocable.

 

    
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(b)               
For so long as any Grantor shall have the right to vote the Pledged Interests owned by it, such Grantor covenants and agrees
that it will not, without the prior written consent of Collateral Agent, vote or take any consensual action with respect to such
Pledged Interests in violation of this Agreement or any other Loan Document.

 

16.              
Remedies.

 

(a)               
Upon the occurrence and during the continuance of an Event of Default, Collateral Agent may, and, at the instruction of
the Required Lenders, shall exercise in respect of the Collateral, in addition to other rights and remedies provided for herein,
in the other Loan Documents, or otherwise available to it, all the rights and remedies of a secured party on default under the
Code or any other applicable law. Without limiting the generality of the foregoing, each Grantor expressly agrees that, in any
such event, Collateral Agent without demand of performance or other demand, advertisement or notice of any kind (except a notice
specified below of time and place of public or private sale) to or upon any Grantor or any other Person (all and each of which
demands, advertisements and notices are hereby expressly waived to the maximum extent permitted by the Code or any other applicable
law), may take immediate possession of all or any portion of the Collateral and (i) require Grantors to, and each Grantor hereby
agrees that it will at its own expense and upon request of Collateral Agent forthwith, assemble all or part of the Collateral as
directed by Collateral Agent and make it available to Collateral Agent at one or more locations where such Grantor regularly maintains
Inventory, and (ii) without notice except as specified below, sell the Collateral or any part thereof in one or more parcels at
public or private sale, at any of Collateral Agent’s offices or elsewhere, for cash, on credit, and upon such other terms
as Collateral Agent may deem commercially reasonable. Each Grantor agrees that, to the extent notification of sale shall be required
by law, at least ten days notification by mail to the applicable Grantor of the time and place of any public sale or the time after
which any private sale is to be made shall constitute reasonable notification and specifically such notification shall constitute
a reasonable “authenticated notification of disposition” within the meaning of Section 9-611 of the Code. Collateral
Agent shall not be obligated to make any sale of Collateral regardless of notification of sale having been given. Collateral Agent
may adjourn any public sale from time to time by announcement at the time and place fixed therefor, and such sale may, without
further notice, be made at the time and place to which it was so adjourned. Each Grantor agrees that (A) the internet shall constitute
a “place” for purposes of Section 9-610(b) of the Code, and (B) to the extent notification of sale shall be required
by law, notification by mail of the URL where a sale will occur and the time when a sale will commence at least ten days prior
to the sale shall constitute a reasonable notification for purposes of Section 9-611(b) of the Code. Each Grantor agrees that any
sale of Collateral to a licensor pursuant to the terms of a license agreement between such licensor and a Grantor is sufficient
to constitute a commercially reasonable sale (including as to method, terms, manner, and time) within the meaning of Section 9-610
of the Code.

 

(b)               
Collateral Agent is hereby granted a license or other right to use, upon the occurrence and during the continuance of an
Event of Default, without liability for royalties or any other charge, each Grantor’s Intellectual Property, including but
not limited to, any labels, Patents, Trademarks, trade names, URLs, domain names, industrial designs, Copyrights, and advertising
matter, whether owned by any Grantor or with respect to which any Grantor has rights under license, sublicense, or other agreements
(including any Intellectual Property License), as it pertains to the Collateral, in preparing for sale, advertising for sale and
selling any Collateral, and each Grantor’s rights under all licenses and all franchise agreements shall inure to the benefit
of Collateral Agent.

 

    
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(c)            
   Upon the occurrence and during the continuance of an Event of Default, Collateral Agent may, in addition to other rights
and remedies provided for herein, in the other Loan Documents, or otherwise available to it under applicable law and without the
requirement of notice to or upon any Grantor or any other Person (which notice is hereby expressly waived to the maximum extent
permitted by the Code or any other applicable law), (i) with respect to any Grantor’s Deposit Accounts in which Collateral
Agent’s Liens are perfected by control under Section 9-104 of the Code, instruct the bank maintaining such Deposit Account
for the applicable Grantor to pay the balance of such Deposit Account to or for the benefit of Collateral Agent, and (ii) with
respect to any Grantor’s Securities Accounts in which Collateral Agent’s Liens are perfected by control under Section
9-106 of the Code, instruct the securities intermediary maintaining such Securities Account for the applicable Grantor to (A) transfer
any cash in such Securities Account to or for the benefit of Collateral Agent, or (B) liquidate any financial assets in such Securities
Account that are customarily sold on a recognized market and transfer the cash proceeds thereof to or for the benefit of Collateral
Agent.

 

(d)               
Upon the occurrence and during the continuance of an Event of Default, any cash held by Collateral Agent as Collateral and
all cash proceeds received by Collateral Agent in respect of any sale of, collection from, or other realization upon all or any
part of the Collateral shall be applied against the Secured Obligations in the order set forth in the Credit Agreement. In the
event the proceeds of Collateral are insufficient to satisfy all of the Secured Obligations in full, each Grantor shall remain
jointly and severally liable for any such deficiency.

 

(e)               
Each Grantor hereby acknowledges that the Secured Obligations arise out of a commercial transaction, and agrees that if
an Event of Default shall occur and be continuing Collateral Agent shall have the right to an immediate writ of possession without
notice of a hearing. Collateral Agent shall have the right to the appointment of a receiver for the properties and assets of each
Grantor, and each Grantor hereby consents to such rights and such appointment and hereby waives any objection such Grantor may
have thereto or the right to have a bond or other security posted by Collateral Agent.

 

17.              
Remedies Cumulative. Each right, power, and remedy of Collateral Agent or any Lender, as provided for in this Agreement
or the other Loan Documents now or hereafter existing at law or in equity or by statute or otherwise shall be cumulative and concurrent
and shall be in addition to every other right, power, or remedy provided for in this Agreement or the other Loan Documents now
or hereafter existing at law or in equity or by statute or otherwise, and the exercise or beginning of the exercise by Collateral
Agent, any Lender, of any one or more of such rights, powers, or remedies shall not preclude the simultaneous or later exercise
by Collateral Agent, such Lender of any or all such other rights, powers, or remedies.

 

18.              
Marshaling. Collateral Agent shall not be required to marshal any present or future collateral security (including
but not limited to the Collateral) for, or other assurances of payment of, the Secured Obligations or any of them or to resort
to such collateral security or other assurances of payment in any particular order, and all of its rights and remedies hereunder
and in respect of such collateral security and other assurances of payment shall be cumulative and in addition to all other rights
and remedies, however existing or arising. To the extent that it lawfully may, each Grantor hereby agrees that it will not invoke
any law relating to the marshaling of collateral which might cause delay in or impede the enforcement of Collateral Agent’s
rights and remedies under this Agreement or under any other instrument creating or evidencing any of the Secured Obligations or
under which any of the Secured Obligations is outstanding or by which any of the Secured Obligations is secured or payment thereof
is otherwise assured, and, to the extent that it lawfully may, each Grantor hereby irrevocably waives the benefits of all such
laws.

 

    
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19.              
Indemnity. Each Grantor agrees to indemnify Collateral Agent and the Lenders from and against all claims, lawsuits
and liabilities (including reasonable attorneys’ fees) arising out of or resulting from this Agreement (including enforcement
of this Agreement) or any other Loan Document to which such Grantor is a party in accordance with and to the extent set forth in
Section 10.03 of the Credit Agreement. This provision shall survive the termination of this Agreement and the Credit Agreement
and the repayment of the Secured Obligations.

 

20.              
Merger, Amendments; Etc. THIS AGREEMENT, TOGETHER WITH THE OTHER LOAN DOCUMENTS, REPRESENTS THE FINAL AGREEMENT BETWEEN
THE PARTIES AND MAY NOT BE CONTRADICTED BY EVIDENCE OF PRIOR, CONTEMPORANEOUS OR ORAL AGREEMENTS OF THE PARTIES. THERE ARE NO UNWRITTEN
AGREEMENTS BETWEEN THE PARTIES. No waiver of any provision of this Agreement, and no consent to any departure by any Grantor herefrom,
shall in any event be effective unless the same shall be in writing and signed by Collateral Agent, and then such waiver or consent
shall be effective only in the specific instance and for the specific purpose for which given. No amendment of any provision of
this Agreement shall be effective unless the same shall be in writing and signed by Collateral Agent and each Grantor to which
such amendment applies.

 

21.              
Addresses for Notices. All notices and other communications provided for hereunder shall be given in the form and
manner and delivered to Collateral Agent at its address specified in the Credit Agreement, and to any of the Grantors at the notice
address specified for Borrower in the Credit Agreement, or as to any party, at such other address as shall be designated by such
party in a written notice to the other party.

 

22.              
Continuing Security Interest: Assignments under Credit Agreement.

 

(a)               
This Agreement shall create a continuing security interest in the Collateral and shall (i) remain in full force and effect
until the Secured Obligations have been paid in full in accordance with the provisions of the Credit Agreement and the Commitments
have expired or have been terminated, (ii) be binding upon each Grantor, and their respective successors and assigns, and (iii)
inure to the benefit of, and be enforceable by, Collateral Agent, and its successors, permitted transferees and permitted assigns.
Without limiting the generality of the foregoing clause (iii), any Lender may, solely in accordance with the provisions of the
Credit Agreement, assign or otherwise transfer all or any portion of its rights and obligations under the Credit Agreement to any
other Person, and such other Person shall thereupon become vested with all the benefits in respect thereof granted to such Lender
herein or otherwise. Upon payment in full of the Secured Obligations in accordance with the provisions of the Credit Agreement
and the expiration or termination of the Commitments, the Security Interest granted hereby shall terminate and all rights to the
Collateral shall revert to Grantors or any other Person entitled thereto. At such time, upon Borrower’s request, Collateral
Agent will (i) authorize the filing of appropriate termination statements to terminate such Security Interest, (ii) terminate all
control agreements entered into pursuant to this Agreement or any other Loan Document and (iii) return to Borrower, all Collateral
in Collateral Agent’s or its agent’s possession. No transfer or renewal, extension, assignment, or termination of this
Agreement or of the Credit Agreement, any other Loan Document, or any other instrument or document executed and delivered by any
Grantor to Collateral Agent nor any additional loans made by any Lender to any Borrower, nor the taking of further security, nor
the retaking or re-delivery of the Collateral to Grantors, or any of them, by Collateral Agent, nor any other act of the Secured
Parties, or any of them, shall release any Grantor from any obligation, except a release or discharge effected in accordance with
the provisions of the Credit Agreement. Collateral Agent shall not by any act, delay, omission or otherwise, be deemed to have
waived any of its rights or remedies hereunder, unless such waiver is in writing and signed by Collateral Agent and then only to
the extent therein set forth. A waiver by Collateral Agent of any right or remedy on any occasion shall not be construed as a bar
to the exercise of any such right or remedy which Collateral Agent would otherwise have had on any other occasion.

 

    
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(b)               
If any Secured Party repays, refunds, restores, or returns in whole or in part, any payment or
property (including any proceeds of Collateral) previously paid or transferred to such Secured Party in full
or partial satisfaction of any Secured Obligation or on account of any other obligation of any Loan Party
under any Loan Document, because the payment, transfer, or the incurrence of the obligation so satisfied is asserted or declared
to be void, voidable, or otherwise recoverable under any law relating to creditors’ rights, including provisions of the Bankruptcy
Code relating to fraudulent transfers, preferences, or other voidable or recoverable obligations or transfers (each,
a “Voidable Transfer”), or because such Secured Party elects to do so on the reasonable advice of its counsel
in connection with a claim that the payment, transfer, or incurrence is or may be a Voidable Transfer, then, as to any
such Voidable Transfer, or the amount thereof that such Secured Party elects to repay, restore, or return (including
pursuant to a settlement of any claim in respect thereof), and as to all reasonable costs, expenses, and attorneys’ fees
of such Secured Party related thereto, (i) the liability of the Loan Parties with respect to the amount or property
paid, refunded, restored, or returned will automatically and immediately be revived, reinstated, and restored and will exist, and
(ii) Collateral Agent’s Liens securing such liability shall be effective, revived, and remain in full force and
effect, in each case, as fully as if such Voidable Transfer had never been made.  If, prior to any of the foregoing,
(A) Collateral Agent’s Liens shall have been released or terminated, or (B) any provision of this Agreement shall have been
terminated or cancelled, Collateral Agent’s Liens, or such provision of this Agreement, shall be reinstated in
full force and effect and such prior release, termination, cancellation or surrender shall not diminish, release, discharge, impair
or otherwise affect the obligation of any Loan Party in respect of such liability or any Collateral securing such liability.

 

23.              
Survival. All representations and warranties made by the Grantors in this Agreement and in the certificates or other
instruments delivered in connection with or pursuant to this Agreement shall be considered to have been relied upon by the other
parties hereto and shall survive the execution and delivery of this Agreement and the making of any loans, regardless of any investigation
made by any such other party or on its behalf and notwithstanding that Collateral Agent or any Lender may have had notice or knowledge
of any Default or Event of Default or incorrect representation or warranty at the time any credit is extended under the Credit
Agreement, and shall continue in full force and effect as long as the principal of or any accrued interest on any loan or any fee
or any other amount payable under the Credit Agreement is outstanding and unpaid and so long as the Commitments have not expired
or terminated.

 

24.              
APPLICABLE LAW; CONSENT TO JURISDICTION; WAIVER OF JURY TRIAL.

 

(a)               
THIS AGREEMENT AND THE RIGHTS AND OBLIGATIONS OF THE PARTIES HEREUNDER SHALL BE GOVERNED BY, AND SHALL BE CONSTRUED AND
ENFORCED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK WITHOUT REGARD TO CONFLICT OF LAWS PRINCIPLES (OTHER THAN SECTIONS
5-1401 AND 5-1402 OF THE NEW YORK GENERAL OBLIGATIONS LAW) THEREOF.

 

(b)               
(I) ALL JUDICIAL PROCEEDINGS BROUGHT AGAINST ANY GRANTOR ARISING OUT OF OR RELATING HERETO, OR ANY OF THE SECURED OBLIGATIONS,
MAY BE BROUGHT IN ANY STATE OR FEDERAL COURT OF COMPETENT JURISDICTION IN THE STATE, COUNTY AND CITY OF NEW YORK. BY EXECUTING
AND DELIVERING THIS AGREEMENT, EACH GRANTOR, FOR ITSELF AND IN CONNECTION WITH ITS PROPERTIES, IRREVOCABLY (W) ACCEPTS GENERALLY
AND UNCONDITIONALLY THE NON-EXCLUSIVE JURISDICTION AND VENUE OF SUCH COURTS; (X) WAIVES ANY DEFENSE OF FORUM NON CONVENIENS; (Y)
AGREES THAT SERVICE OF ALL PROCESS IN ANY SUCH PROCEEDING IN ANY SUCH COURT MAY BE MADE BY REGISTERED OR CERTIFIED MAIL, RETURN
RECEIPT REQUESTED, TO THE APPLICABLE GRANTOR AT ITS ADDRESS PROVIDED IN ACCORDANCE WITH SECTION 10.01 OF THE CREDIT AGREEMENT,
WHICH IS SUFFICIENT TO CONFER PERSONAL JURISDICTION OVER THE APPLICABLE GRANTOR IN ANY SUCH PROCEEDING IN ANY SUCH COURT, AND OTHERWISE
CONSTITUTES EFFECTIVE AND BINDING SERVICE IN EVERY RESPECT; AND (Z) AGREES THAT THE SECURED PARTIES RETAIN THE RIGHT TO SERVE PROCESS
IN ANY OTHER MANNER PERMITTED BY LAW OR TO BRING PROCEEDINGS AGAINST ANY GRANTOR IN THE COURTS OF ANY OTHER JURISDICTION.

 

    
24

    

    

(II) EACH GRANTOR HEREBY
AGREES THAT PROCESS MAY BE SERVED ON IT BY CERTIFIED MAIL, RETURN RECEIPT REQUESTED, TO THE ADDRESSES PERTAINING TO IT AS SPECIFIED
IN SECTION 10.01 OF THE CREDIT AGREEMENT. ANY AND ALL SERVICE OF PROCESS AND ANY OTHER NOTICE IN ANY SUCH ACTION, SUIT OR PROCEEDING
SHALL BE EFFECTIVE AGAINST ANY GRANTOR IF GIVEN BY REGISTERED OR CERTIFIED MAIL, RETURN RECEIPT REQUESTED, OR BY ANY OTHER MEANS
OR MAIL WHICH REQUIRES A SIGNED RECEIPT, POSTAGE PREPAID, MAILED AS PROVIDED ABOVE.

 

(c)               
EACH OF THE PARTIES HERETO HEREBY AGREES TO WAIVE ITS RESPECTIVE RIGHTS TO A JURY TRIAL OF ANY CLAIM OR CAUSE OF ACTION
BASED UPON OR ARISING HEREUNDER OR ANY DEALINGS BETWEEN THEM RELATING TO THE SUBJECT MATTER OF THIS LOAN TRANSACTION OR THE LENDER/BORROWER
RELATIONSHIP THAT IS BEING ESTABLISHED. THE SCOPE OF THIS WAIVER IS INTENDED TO BE ALL ENCOMPASSING OF ANY AND ALL DISPUTES THAT
MAY BE FILED IN ANY COURT AND THAT RELATE TO THE SUBJECT MATTER OF THIS TRANSACTION, INCLUDING CONTRACT CLAIMS, TORT CLAIMS, BREACH
OF DUTY CLAIMS AND ALL OTHER COMMON LAW AND STATUTORY CLAIMS. EACH PARTY HERETO ACKNOWLEDGES THAT THIS WAIVER IS A MATERIAL INDUCEMENT
TO ENTER INTO A BUSINESS RELATIONSHIP, THAT EACH HAS ALREADY RELIED ON THIS WAIVER IN ENTERING INTO THIS AGREEMENT, AND THAT EACH
WILL CONTINUE TO RELY ON THIS WAIVER IN ITS RELATED FUTURE DEALINGS. EACH PARTY HERETO FURTHER WARRANTS AND REPRESENTS THAT IT
HAS REVIEWED THIS WAIVER WITH ITS LEGAL COUNSEL AND THAT IT KNOWINGLY AND VOLUNTARILY WAIVES ITS JURY TRIAL RIGHTS FOLLOWING CONSULTATION
WITH LEGAL COUNSEL. THIS WAIVER IS IRREVOCABLE, MEANING THAT IT MAY NOT BE MODIFIED EITHER ORALLY OR IN WRITING (OTHER THAN BY
A MUTUAL WRITTEN WAIVER SPECIFICALLY REFERRING TO THIS SECTION 24 AND EXECUTED BY EACH OF THE PARTIES HERETO), AND THIS
WAIVER SHALL APPLY TO ANY SUBSEQUENT AMENDMENTS, RENEWALS, SUPPLEMENTS OR MODIFICATIONS HERETO . IN THE EVENT OF LITIGATION, THIS
AGREEMENT MAY BE FILED AS A WRITTEN CONSENT TO A TRIAL BY THE COURT.

 

25.              
New Subsidiaries. Pursuant to Section 5.10 of the Credit Agreement, certain Subsidiaries (whether by acquisition
or creation) of any Grantor are required to enter into this Agreement by executing and delivering in favor of Collateral Agent
a Joinder to this Agreement in substantially the form of Annex 1. Upon the execution and delivery of Annex 1 by any
such new Subsidiary, such Subsidiary shall become a Grantor hereunder with the same force and effect as if originally named as
a Grantor herein. The execution and delivery of any instrument adding an additional Grantor as a party to this Agreement shall
not require the consent of any Grantor hereunder. The rights and obligations of each Grantor hereunder shall remain in full force
and effect notwithstanding the addition of any new Grantor hereunder.

 

    
25

    

    

26.              
Collateral Agent. Each reference herein to any right granted to, benefit conferred upon or power exercisable by the
“Collateral Agent” shall be a reference to Collateral Agent, for the benefit of each Secured Party.

 

27.              
Miscellaneous.

 

(a)               
This Agreement is a Loan Document. This Agreement may be executed in any number of counterparts and by different parties
on separate counterparts, each of which, when executed and delivered, shall be deemed to be an original, and all of which, when
taken together, shall constitute but one and the same Agreement. Delivery of an executed counterpart of this Agreement by telefacsimile
or other electronic method of transmission shall be equally as effective as delivery of an original executed counterpart of this
Agreement. Any party delivering an executed counterpart of this Agreement by telefacsimile or other electronic method of transmission
also shall, if requested by Collateral Agent, deliver an original executed counterpart of this Agreement, but the failure to deliver
an original executed counterpart shall not affect the validity, enforceability, and binding effect of this Agreement. The foregoing
shall apply to each other Loan Document mutatis mutandis.

 

(b)               
Any provision of this Agreement which is prohibited or unenforceable shall be ineffective to the extent of such prohibition
or unenforceability without invalidating the remaining provisions hereof in that jurisdiction or affecting the validity or enforceability
of such provision in any other jurisdiction. Each provision of this Agreement shall be severable from every other provision of
this Agreement for the purpose of determining the legal enforceability of any specific provision.

 

(c)               
Headings and numbers have been set forth herein for convenience only. Unless the contrary is compelled by the context, everything
contained in each Section applies equally to this entire Agreement.

 

(d)               
Neither this Agreement nor any uncertainty or ambiguity herein shall be construed against any Secured Party, or any Grantor,
whether under any rule of construction or otherwise. This Agreement has been reviewed by all parties and shall be construed and
interpreted according to the ordinary meaning of the words used so as to accomplish fairly the purposes and intentions of all parties
hereto.

 

[Signature pages follow]

 

 

 

 

    
26

    

    

 

IN WITNESS WHEREOF, the undersigned parties
hereto have caused this Agreement to be executed and delivered as of the day and year first above written.

 

 

	“Grantors”	 	 	 
	 	 	 	 
	FRANCHISE GROUP NEWCO S, LLC,
    a Delaware limited liability company	 	FRANCHISE GROUP INTERMEDIATE S, LLC,
    a Delaware limited liability company
	 	 	 	 	 
	By:	/s/ Michael
    S. Piper 	 	By:	/s/
    Michael S. Piper 
	Name:	Michael
    S. Piper 	 	Name:	Michael
    S. Piper 
	Title:	Authorized
    Signatory 	 	Title:	Authorized
    Signatory 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	SEARS OUTLET STORES, L.L.C.,
    a Delaware limited liability company	 	OUTLET MERCHANDISE, LLC,
    a Delaware limited liability company
	 	 	 	 	 
	By:	/s/ E.J. Bird 	 	By:	/s/
    E.J. Bird 
	Name:	E.J.
    Bird 	 	Name:	E.J.
    Bird 
	Title:	Senior
    Vice President 	 	Title:	Senior
    Vice President and Chief Financial Officer
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	LEASING OPERATIONS, LLC,
    a Delaware limited liability company	 	BUDDY’S DISCOUNT OUTLET FRANCHISING, LLC,
    a Delaware limited liability company
	 	 	 	 	 
	By:	/s/
    E.J. Bird 	 	By:	/s/
    Michael S. Piper 
	Name:	E.J.
    Bird 	 	Name:	Michael
    S. Piper 
	Title:	Senior
    Vice President and Chief Financial Officer	 	Title:	Authorized
    Signatory 

 

 

 

 

 

 

    
[SIGNATURE PAGE TO SECURITY AGREEMENT]

    

    

	“Collateral Agent”	 
	GUGGENHEIM CREDIT SERVICES, LLC	 
	 	 	 
	 	 	 
	By:	/s/ John Mulreaney	 
	Name:	John Mulreaney	 
	 	Its Authorized Signatory	 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

[SIGNATURE PAGE TO SECURITY AGREEMENT]

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