Document:

Execution
Copy

 

SECURITY AGREEMENT

 

DATED FEBRUARY 12, 2013

 

between

 

EACH OF THE GRANTORS PARTY HERETO

 

and

 

U.S. BANK NATIONAL ASSOCIATION

 

as Collateral Agent

 

    	 

    	 

    

 

CONTENTS

 

	Clause	 	Page
	 	 	 
	1.	Interpretation	1
	2.	Secured liabilities	6
	3.	Creation of security	6
	4.	Perfection and further assurances	7
	5.	Representations and warranties	9
	6.	Undertakings	13
	7.	When security becomes enforceable	16
	8.	Enforcement of security	16
	9.	Application of proceeds	20
	10.	Expenses and indemnity	20
	11.	Evidence and calculations	21
	12.	Changes to the parties	22
	13.	Miscellaneous	22
	14.	Severability	22
	15.	Release	23
	16.	Notices	23
	17.	Governing law	24
	18.	Enforcement	24
	 	 	 
	 	SCHEDULE
    1  Commercial Tort Claims	27
	 	SCHEDULE
    2  INTELLECTUAL PROPERTY	28
	 	SIGNATORIES	32
	 	 	 
	 	EXHIBIT 1  Form of Patent Security and Pledge Agreement	 
	 	EXHIBIT 2  Form of Trademark Security and Pledge Agreement	 
	 	EXHIBIT 3  Form of Copyright Security Agreement	 

 

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THIS AGREEMENT is dated February
12, 2013

 

BETWEEN:

 

		(1)	LIGGETT GROUP LLC, a Delaware limited liability company, and 100 MAPLE LLC, a Delaware
limited liability company, as grantors (each a Grantor and, collectively, the Grantors); and

 

		(2)	U.S. BANK NATIONAL ASSOCIATION, as collateral agent for the Noteholders under the Indenture
described below (in this capacity, the Collateral Agent).

 

BACKGROUND:

 

The Grantors enter into this Agreement
in connection with the Indenture dated February 12, 2013 (the Indenture) by and among Vector Group Ltd. (Vector Group),
the Guarantors party thereto and U.S. Bank National Association, as trustee (the Trustee) under the Indenture. Pursuant
to the Indenture, Vector Group is issuing Notes and the Grantors are guaranteeing the Notes as provided in the Indenture. The Grantors
now wish to secure their obligations under the Indenture by entering into this Agreement.

 

IT IS AGREED as follows:

 

		1.	Interpretation

 

		1.1	Definitions

 

In this Agreement:

 

ABL Debt
has the meaning given to that term in the Intercreditor Agreement.

 

Affiliate
means, with respect to a specified Person, any Person that, directly or indirectly, through one or more intermediaries, controls,
is controlled by, or is under common control with, the specified Person.

 

The term Collateral means
all personal property, wherever located, in which any Grantor now has or later acquires any right, title or interest, including
all:

 

		(a)	accounts;

 

		(b)	goods (including equipment, inventory and fixtures);

 

		(c)	health-care-insurance receivables;

 

		(d)	instruments (including promissory notes);

 

		(e)	documents;

 

		(f)	letter-of-credit rights;

 

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		(g)	general intangibles (including payment intangibles and software);

 

		(h)	the commercial tort claims described in Schedule 1 (Commercial Tort Claims);

 

		(i)	supporting obligations;

 

		(j)	Intellectual Property;

 

and to the extent not listed
above as original Collateral, proceeds and products of, and accessions to, each of the above assets. The term Collateral
excludes (i) any property, right or interest in which a security interest may not be granted under applicable law, (ii) any
equity interest of a Grantor in any Affiliate of such Grantor, (iii) any equipment to the extent a grant of a security interest
in such equipment would be precluded by or require a consent under the terms and conditions of any existing or future purchase
money or other financing of such equipment permitted under the terms of the Indenture, (iv) any intent-to-use trademark application
prior to the filing of a “Statement of Use” or “Amendment to Allege Use” with respect thereto, to the extent,
if any, that, and solely during the period, if any, in which, the grant of a security interest therein would impair the validity
or enforceability of such intent-to-use trademark application under applicable federal law, (v) any aircraft, aircraft engines
or motor vehicles, (vi) any deposit accounts, (vii) any cash and (viii) any investment property.

 

Copyright
Licenses shall mean any and all agreements, licenses and covenants providing for the granting of any right in or to Copyrights
or otherwise providing for a covenant not to sue (whether a Grantor is licensee or licensor thereunder) including, without limitation,
each agreement referred to in Schedule 2 under the heading “Copyright Licenses” (as such schedule may be amended
or supplemented from time to time).

 

Copyrights
shall mean all United States copyrights (including Community designs), including but not limited to copyrights in software and
all rights in and to databases, and all Mask Works (as defined under 17 U.S.C. 901 of the U.S. Copyright Act), whether registered
or unregistered, moral rights, reversionary interests, termination rights, and, with respect to any and all of the foregoing: (a)
all registrations and applications therefor including, without limitation, the registrations and applications required to be listed
in Schedule 2 under the heading “Copyrights” (as such schedule may be amended or supplemented from time to time),
(b) all extensions and renewals thereof, (c) all rights to sue for past, present and future infringements thereof, and (d) all
proceeds of the foregoing, including, without limitation, licenses, royalties, income, payments, claims, damages and proceeds of
suit.

 

Event of
Default means an event specified as such in Clause 8.1 (Events of Default).

 

Finance
Documents means the Indenture, all Notes issued from time to time under the Indenture, the Purchase Agreement, the Registration
Rights Agreement, this Agreement and all other pledges, security agreements, control agreements and all other agreements and documents
entered into the connection with the transactions contemplated by the Indenture.

 

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First Priority
Debt has the meaning given to that term in the Intercreditor Agreement.

 

Guarantors
means the Grantors and the other guarantors under the Indenture.

 

Intellectual
Property shall mean, collectively, the Copyrights, the Copyright Licenses, the Patents, the Patent Licenses, the Trademarks,
the Trademark Licenses, the Trade Secrets, and the Trade Secret Licenses.

 

Intellectual
Property Licenses shall mean, collectively, the Copyright Licenses, Patent Licenses, Trademark Licenses and Trade Secret Licenses.

 

Intercreditor
Agreement means that the Intercreditor and Lien Subordination Agreement dated February 12, 2013 between Wells Fargo Bank, National
Association, the Collateral Agent, Liggett Group LLC and 100 Maple LLC.

 

Lien means any security
interest, lien, mortgage, pledge, encumbrance, charge, assignment, hypothecation, adverse claim, claim, or restriction on assignment,
transfer or pledge or any other arrangement having the effect of conferring security.

 

Note means any note issued
from time to time under the Indenture, including any exchange notes.

 

Noteholder means
any Person which from time to time is the holder of a Note.

 

Obligors means
Vector Group and the Guarantors.

 

Patent Licenses
shall mean all agreements, licenses and covenants providing for the granting of any right in or to Patents or otherwise providing
for a covenant not to sue (whether a Grantor is licensee or licensor thereunder) including, without limitation, each agreement
referred to in Schedule 2 under the heading “Patent Licenses” (as such schedule may be amended or supplemented
from time to time).

 

Patents
shall mean all United States patents and certificates of invention, or similar industrial property rights, and applications for
any of the foregoing, including, but not limited to: (a) each patent and patent application required to be listed in Schedule
2 hereto under the heading “Patents” (as such schedule may be amended or supplemented from time to time), (b) all
reissues, divisions, continuations, continuations-in-part, extensions, renewals, and reexaminations thereof, (c) all inventions
and improvements described therein, (d) all rights to sue for past, present and future infringements thereof, (e) all licenses,
claims, damages, and proceeds of suit arising therefrom, and (f) all proceeds of the foregoing, including, without limitation,
licenses, royalties, income, payments, claims, damages, and proceeds of suit.

 

Person
means any individual, partnership, limited liability company, joint venture, corporation, trust, unincorporated organization, government
or any department or agency thereof or any entity similar to any of the foregoing.

 

Priority Liens
means the Liens securing the First Priority Debt.

 

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Relevant State means the
state under whose laws a Grantor is incorporated or organized.

 

Secured Liabilities means
each liability and obligation specified in Clause 2 (Secured Liabilities).

 

Security means any security
interest created by this Agreement.

 

Security Period means
the period beginning on the date of this Agreement and ending on the date on which all the Secured Liabilities have been indefeasibly,
unconditionally and irrevocably paid and discharged in full. The Security Period will be extended to take into account any extension
or reinstatement of this Agreement under Clause 3.2(b) (General). Furthermore, if the Noteholders holding a majority in
aggregate principal amount of the then outstanding Notes consider that an amount paid to the Collateral Agent or a Noteholder under
a Finance Document is capable of being avoided or otherwise set aside on the bankruptcy, liquidation, insolvency or administration
of the payer or otherwise then that amount will not be considered to have been irrevocably paid for the purposes of this Agreement.

 

Trademark
Licenses shall mean any and all agreements, licenses and covenants providing for the granting of any right in or to Trademarks
or otherwise providing for a covenant not to sue or permitting co-existence (whether a Grantor is licensee or licensor thereunder)
including, without limitation, each agreement required to be listed in Schedule 2 under the heading “Trademark Licenses”
(as such schedule may be amended or supplemented from time to time).

 

Trademarks
shall mean all United States trademarks, trade names, corporate names, company names, business names, fictitious business names,
Internet domain names, service marks, certification marks, collective marks, logos, other source or business identifiers, designs
and general intangibles of a like nature, all registrations and applications for any of the foregoing including, but not limited
to: (a) the registrations and applications referred to in Schedule 2 under the heading “Trademarks” (as such
schedule may be amended or supplemented from time to time), (b) all extensions or renewals of any of the foregoing, (c) all of
the goodwill of the business connected with the use of and symbolized by the foregoing, (d) the right to sue for past, present
and future infringement or dilution of any of the foregoing or for any injury to goodwill, and (e) all proceeds of the foregoing,
including, without limitation, licenses, royalties, income, payments, claims, damages, and proceeds of suit.

 

Trade Secret
Licenses shall mean any and all agreements providing for the granting of any right in or to Trade Secrets (whether a Grantor
is licensee or licensor thereunder) including, without limitation, each agreement referred to in Schedule 2 under the heading
“Trade Secret Licenses” (as such schedule may be amended or supplemented from time to time).

 

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Trade Secrets
shall mean all trade secrets and all other confidential or proprietary information and know-how whether or not such Trade Secret
has been reduced to a writing or other tangible form, including all documents and things embodying, incorporating, or referring
in any way to such Trade Secret, including but not limited to: (a) the right to sue for past, present and future misappropriation
or other violation of any Trade Secret, and (b) all proceeds of the foregoing, including, without limitation, licenses, royalties,
income, payments, claims, damages, and proceeds of suit.

 

UCC means the Uniform
Commercial Code as in effect from time to time in the State of New York.

 

		1.2	Construction

 

		(a)	Any term defined in the UCC and not defined in this Agreement has the meaning given to that term
in the UCC.

 

		(b)	Any term defined in the Indenture and not defined in this Agreement or the UCC has the meaning
given to that term in the Indenture.

 

		(c)	No reference to proceeds in this Agreement authorizes any sale, transfer or other disposition
of Collateral by a Grantor.

 

		(d)	In this Agreement, unless the contrary intention appears, a reference to:

 

		(i)	an amendment includes a supplement, novation, restatement or re-enactment and amended
will be construed accordingly;

 

		(ii)	a Clause, a Subclause, an Exhibit or a Schedule is a reference to a Clause or Subclause of, or
an Exhibit or Schedule to, this Agreement;

 

		(iii)	a law is a reference to that law as amended or re-enacted and to any successor law;

 

		(iv)	an agreement is a reference to that agreement as amended;

 

		(v)	fraudulent transfer law means any applicable U.S. Bankruptcy Law or state fraudulent transfer
or conveyance statute, and the related case law; and

 

		(vi)	law includes any law, statute, regulation, regulatory requirement, rule, ordinance, ruling,
decision, treaty, directive, order, guideline, regulation, policy, writ, judgment, injunction or request of any court or other
governmental, inter-governmental or supranational body, officer or official, fiscal or monetary authority, or other ministry or
public entity (and their interpretation, administration and application), whether or not having the force of law.

 

		(e)	In this Agreement:

 

		(i)	includes and including are not limiting;

 

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		(ii)	or is not exclusive; and

 

		(iii)	the headings are for convenience only, do not constitute part of this Agreement and are not to
be used in construing it.

 

		2.	Secured
                                                                                                                                                            liabilities

 

		2.1	Secured Liabilities

 

Each obligation and liability
whether:

 

		(a)	present or future, actual, contingent or unliquidated; or

 

		(b)	owed jointly or severally (or in any other capacity whatsoever),

 

of any Grantor to any Noteholder
under or in connection with each Finance Document is a Secured Liability.

 

		2.2	Specification of Secured Liabilities

 

The Secured Liabilities include
any liability or obligation for:

 

		(a)	repayment of the principal of any Note;

 

		(b)	payment of interest and any other amount payable under the Financing Documents;

 

		(c)	payment and performance of all other obligations and liabilities of any Obligor under the Finance
Documents;

 

		(d)	payment of any amount owed under any amendment, modification, renewal, extension or novation of
any of the above obligations; and

 

		(e)	payment of an amount which arises after a petition is filed by, or against, any Obligor under the
US Bankruptcy Code of 1978 even if the obligations do not accrue because of the automatic stay under Section 362 of the US Bankruptcy
Code of 1978 or otherwise.

 

		3.	Creation
                                                                                                                                                            of
                                                                                                                                                            security

 

		3.1	Security Interest

 

As security for the prompt and
complete payment and performance of the Secured Liabilities when due (whether due because of stated maturity, acceleration, mandatory
prepayment, or otherwise) and to induce the Noteholders to purchase the Notes, the Grantors, jointly and severally, grant to the
Collateral Agent for the benefit of the Noteholders a continuing security interest in the Collateral.

 

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		3.2	General

 

		(a)	All the Security created under this Agreement:

 

		(i)	is continuing security for the irrevocable and indefeasible payment in full of the Secured Liabilities,
regardless of any intermediate payment or discharge in whole or in part;

 

		(ii)	is in addition to, and not in any way prejudiced by, any other security now or subsequently held
by the Collateral Agent.

 

		(b)	If, at any time for any reason (including the bankruptcy, insolvency, receivership, reorganization,
dissolution or liquidation of any Obligor or the appointment of any receiver, intervenor or conservator of, or agent or similar
official for, any Obligor or any of their respective properties), any payment received by the Collateral Agent or any Noteholder
in respect of the Secured Liabilities is rescinded or avoided or must otherwise be restored or returned by the Collateral Agent
or any Noteholder, that payment will not be considered to have been made for purposes of this Agreement, and this Agreement will
continue to be effective or will be reinstated, if necessary, as if that payment had not been made.

 

		(c)	This Agreement is enforceable against the Grantors to the maximum extent permitted by the fraudulent
transfer laws.

 

		4.	Perfection
                                                                                                                                                            and
                                                                                                                                                            further
                                                                                                                                                            assurances

 

		4.1	General perfection

 

Each Grantor must take, at its
own expense, promptly, and in any event within any applicable time limit:

 

		(a)	whatever action is necessary or reasonably desirable; and

 

		(b)	any action which the Collateral Agent may reasonably require,

 

to ensure that this Security
is as of the date Notes are first issued under the Indenture, and will continue to be until the end of the Security Period, a validly
created, attached, enforceable and perfected continuing security interest in the Collateral, subject to no Liens other than Permitted
Liens (as defined in the Indenture) and subject in priority to no Liens other than Priority Liens and Permitted Liens (as defined
in the Indenture), in all relevant jurisdictions, securing payment and performance of the Secured Liabilities.

 

This includes the giving of any
notice, order or direction, the making of any filing or registration, the passing of any resolution and the execution and delivery
of any documents or agreements which the Collateral Agent may require.

 

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		4.2	Filing of financing statements

 

		(a)	Each Grantor authorizes the Collateral Agent to prepare and file, at such Grantor’s expense:

 

		(i)	financing statements describing the Collateral;

 

		(ii)	continuation statements; and

 

		(iii)	any amendment in respect of those statements.

 

		(b)	Promptly after filing an initial financing statement in respect of the Collateral, each Grantor
must provide the Collateral Agent with an official report from the Secretary of State of such Grantor’s Relevant State indicating
that the Collateral Agent’s security interest in the Collateral provided by such Grantor incorporated or organized under
the laws of such Relevant State is prior to all other security interests or other interests reflected in the report other than
Liens securing the ABL Debt or other Permitted Liens (as defined in the Indenture).

 

		4.3	Intellectual Property Recording Requirements

 

		(a)	In the case of any Collateral consisting of U.S. Patents and Patent
Licenses in respect of U.S. Patents for which any Grantor is the licensee, such Grantor shall execute and deliver to the Collateral
Agent a Patent Security Agreement in substantially the form of Exhibit 1 hereto (or a supplement thereto) covering all such
Patents and Patent Licenses in appropriate form for recordation with the U.S. Patent and Trademark Office with respect to
the security interest of the Collateral Agent.

 

		(b)	In the case of any Collateral consisting of U.S. Trademarks and
Trademark Licenses in respect of U.S. Trademarks for which any Grantor is the licensee, such Grantor shall execute and deliver
to the Collateral Agent a Trademark Security Agreement in substantially the form of Exhibit 2 hereto (or a supplement thereto)
covering all such Trademarks and Trademark Licenses in appropriate form for recordation with the U.S. Patent and Trademark Office
with respect to the security interest of the Collateral Agent.

 

		(c)	In the case of any Collateral consisting of registered U.S. Copyrights and Copyright Licenses in
respect of U.S. Copyrights for which any Grantor is the licensee, such Grantor execute and deliver to the Collateral Agent a Copyright
Security Agreement in substantially the form of Exhibit 3 hereto (or a supplement thereto) covering all such Copyright and
Copyright Licenses is in appropriate form for recordation with the U.S. Copyright Office with respect to the security interest
of the Collateral Agent.

 

		4.4	Further assurances

 

		(a)	The Grantors must take, at their own expense, promptly, and in any event within any applicable
time limit, whatever action may reasonably be required under the Indenture or this Agreement:

 

		(i)	creating, attaching, perfecting and protecting, and maintaining the priority of, any security interest
intended to be created by this Agreement;

 

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		(ii)	facilitating the enforcement of this Security or the exercise of any right, power or discretion
exercisable by the Collateral Agent or any of its delegates or sub-delegates in respect of any Collateral; and

 

		(iii)	facilitating the assignment or transfer of any rights and/or obligations of the Collateral Agent
under this Agreement.

 

This includes the execution and
delivery of any transfer, assignment or other agreement or document, whether to the Collateral Agent or its nominee, which the
Collateral Agent may require.

 

		(b)	Each Grantor irrevocably constitutes and appoints the Collateral Agent, with full power of substitution,
as such Grantor’s true and lawful attorney-in-fact, in such Grantor’s name or in the Collateral Agent’s name
or otherwise, and at such Grantor’s expense, to take any of the actions referred to in paragraph (a) above without notice
to or the consent of such Grantor. This power of attorney is a power coupled with an interest and cannot be revoked. Each Grantor
ratifies and confirms all actions taken by the Collateral Agent or its agents under this power of attorney.

 

		5.	Representations
                                                                                                                                                            and
                                                                                                                                                            warranties

 

		5.1	Representations and warranties

 

The representations and warranties
set out in this Clause are made by each Grantor to the Collateral Agent and each Noteholder.

 

		5.2	The Grantors

 

		(a)	It is organized under the laws of the state indicated in the preamble to this Agreement.

 

		(b)	In the case of Liggett Group LLC:

 

		(i)	Its exact legal name, as it appears in the public records of its jurisdiction organization, is
as stated in the preamble to this Agreement. It has not changed its name, whether by amendment of its organizational documents,
reorganization, merger or otherwise, since its date of organization, December 13, 2005.

 

		(ii)	Its organizational identification number, as issued by its jurisdiction of organization is 2232980.

 

		(c)	In the case of 100 Maple LLC:

 

		(i)	Its exact legal name, as it appears in the public records of its jurisdiction organization, is
as stated in the preamble to this Agreement. It has not changed its name, whether by amendment of its organizational documents,
reorganization, merger or otherwise, since its date of organization, May 3, 1999.

 

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		(ii)	Its organizational identification number, as issued by its jurisdiction of organization is 3037646.

 

		(d)	It keeps at its address indicated in Clause 16 (Notices) its corporate records and all records,
documents and instruments constituting, relating to or evidencing Collateral.

 

		5.3	The Collateral

 

		(a)	Except as permitted under the Indenture:

 

		(i)	it is the sole legal and beneficial owner of, and has the power to transfer and grant a security
interest in, the Collateral;

 

		(ii)	none of the Collateral is subject to any Lien other than the Collateral Agent’s security
interest and Liens securing the ABL Debt;

 

		(iii)	it has not agreed or committed to sell, assign, pledge, transfer, license, lease or encumber any
of the Collateral, or granted any option, warrant or right with respect to any of the Collateral; and

 

		(iv)	no effective mortgage, deed of trust, financing statement, security agreement or other instrument
similar in effect is on file or of record with respect to any Collateral, except for those that create, perfect or evidence the
Collateral Agent’s security interest or Liens securing the ABL Debt.

 

		(b)	No litigation, arbitration or administrative proceedings are current or pending or, to its knowledge,
threatened, involving or affecting the Collateral, and none of the Collateral is subject to any order, writ, injunction, execution
or attachment.

 

		5.4	No liability

 

		(a)	Its rights, interests, liabilities and obligations under contractual obligations that constitute
part of the Collateral are not affected by this Agreement or the exercise by the Collateral Agent of its rights under this Agreement;

 

		(b)	Neither the Collateral Agent nor any Noteholder, unless it expressly agrees in writing, will have
any liabilities or obligations under any contractual obligation that constitutes part of the Collateral as a result of this Agreement,
the exercise by the Collateral Agent of its rights under this Agreement or otherwise; and

 

		(c)	Neither the Collateral Agent nor any Noteholder has or will have any obligation to collect upon
or enforce any contractual obligation or claim that constitutes part of the Collateral, or to take any other action with respect
to the Collateral.

 

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		5.5	Consideration and solvency

 

		(a)	Terms used in this Clause have the meanings given to them in, and must be construed in accordance
with, the fraudulent transfer laws.

 

		(b)	It will receive valuable direct and indirect benefits as a result of the transactions financed
by the issuance of the Notes and these benefits constitute reasonably equivalent value and fair consideration.

 

		(c)	To the best of its knowledge, the Collateral Agent and the Noteholders have acted in good faith
in connection with the transactions contemplated by this Agreement.

 

		(d)	The sum of its debts (including its obligations under this Agreement) is less than the value of
its property (calculated at the lesser of fair valuation and present fair saleable value).

 

		(e)	Its capital is not unreasonably small to conduct its business as currently conducted or as proposed
to be conducted.

 

		(f)	It has not incurred, does not intend to incur and does not believe it will incur debts beyond its
ability to pay as they mature.

 

		(g)	It has not made a transfer or incurred an obligation under this Agreement with the intent to hinder,
delay or defraud any of its present or future creditors.

 

		5.6	Intellectual Property

 

		(a)	It is the sole and exclusive owner of the entire right, title, and interest in and to all Intellectual
Property listed on Schedule 2 (as such schedule may be amended or supplemented from time to time), and owns or has the valid
right to use and, where such Grantor does so, sublicense others to use, all other Intellectual Property used in or necessary to
conduct its business, free and clear of all Liens, claims, encumbrances and licenses, except for Permitted Liens (as defined in
the Indenture) and the licenses set forth on Schedule 2 (as such schedule may be amended or supplemented from time to time).

 

		(b)	All Intellectual Property is subsisting and has not been adjudged invalid or unenforceable, in
whole or in part, nor, in the case of Patents, is any of the Intellectual Property the subject of a reexamination proceeding, and
such Grantor has performed all acts and has paid all renewal, maintenance, and other fees and taxes required to maintain each and
every registration and application of Copyrights, Patents and Trademarks in full force and effect.

 

		(c)	All Intellectual Property is valid and enforceable; no holding, decision, ruling, or judgment has
been rendered in any action or proceeding before any court or administrative authority challenging the validity or scope of, such
Grantor’s right to register, or such Grantor’s rights to own or use, any Intellectual Property and no such action or
proceeding is pending or, to the best of such Grantor’s knowledge, threatened.

 

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		(d)	All registrations and applications for Copyright registrations, Patents and Trademark registrations
are standing in the name of such Grantor, and none of the Trademarks, Patents, Copyrights or Trade Secrets has been licensed by
any Grantor to any Affiliate or third party, except as disclosed in Schedule 2 (as such schedule may be amended or supplemented
from time to time), and all exclusive Copyright Licenses have been properly recorded in the U.S. Copyright Office.

 

		(e)	Such Grantor has not made a previous assignment, sale, transfer, exclusive license or agreement
constituting a present or future assignment, sale, transfer, exclusive license or agreement of any Intellectual Property that has
not been terminated or released.

 

		(f)	Such Grantor has been using appropriate statutory notice of registration in connection with its
use of registered Trademarks, proper marking practices in connection with the use of Patents, and appropriate notice of copyright
in connection with the publication of Copyrights.

 

		(g)	Such Grantor uses adequate standards of quality in the manufacture, distribution, and sale of all
products sold and in the provision of all services rendered under or in connection with all Trademark Collateral and has taken
all action necessary to insure that all licensees of the Trademark Collateral owned by such Grantor use such adequate standards
of quality.

 

		(h)	The conduct of such Grantor’s business does not infringe upon or misappropriate or otherwise
violate any trademark, patent, copyright, trade secret or other intellectual property right of any other Person; no claim has been
made that the use of any Intellectual Property owned or used by such Grantor (or any of its respective licensees) infringes upon,
misappropriates or otherwise violates the asserted rights of any other Person, and no demand that such Grantor enter into a license
or co-existence agreement has been made but not resolved.

 

		(i)	To the best of such Grantor’s knowledge, no other Person is infringing upon, misappropriating
or otherwise violating any rights in any Intellectual Property owned, licensed or used by such Grantor, or any of its respective
licensees.

 

		(j)	No settlement or consents, covenants not to sue, co-existence agreements, non-assertion assurances,
or releases have been entered into by such Grantor or binds such Grantor in a manner that could adversely affect such Grantor’s
rights to own, license or use any Intellectual Property.

 

		5.7	Times for making representations and warranties

 

		(a)	The representations and warranties set out in this Agreement (including in this Clause) are made
on the date of this Agreement.

 

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		(b)	Unless a representation and warranty is expressed to be given at a specific date, all representations
and warranties under this Agreement are deemed to be repeated by the Grantors on the date of each issuance of Notes under the Indenture
with reference to the facts and circumstances then existing.

 

		(c)	When representations and warranties are repeated, they are applied to the circumstances existing
at the time of repetition.

 

		(d)	The representations and warranties of the Grantors contained in this Agreement or made by any Grantor
in any certificate, notice or report delivered under this Agreement will survive each issuance of Notes, the repayment of the Notes,
and any transfer or assignment of the Notes.

 

		6.	Undertakings

 

		6.1	Undertakings

 

The Grantors agree to be bound
by the covenants set out in this Clause.

 

		6.2	The Grantors

 

		(a)	Except as permitted under the Indenture, each Grantor must preserve its limited liability company
existence and will not, except as permitted by the Indenture, in one transaction or a series of related transactions, merge into
or consolidate with any other entity, or sell all or substantially all of its assets.

 

		(b)	No Grantor may change the jurisdiction of its organization without providing the Collateral Agent
with at least 30 days’ prior written notice.

 

		(c)	No Grantor may change its name without providing the Collateral Agent with at least 30 days’
prior written notice.

 

		(d)	Each Grantor must keep at its address indicated in Clause 16 (Notices) its corporate records
and all records, documents and instruments constituting, relating to or evidencing Collateral.

 

		(e)	Each Grantor will permit the Collateral Agent and its agents and representatives, during normal
business hours and upon reasonable notice, to inspect the Collateral, to examine and make copies of and abstracts from the records
referred to in paragraph (d) above, and to discuss matters relating to the Collateral directly with such Grantor’s officers
and employees.

 

		(f)	At the Collateral Agent’s request, the Grantors must provide the Collateral Agent with any
information concerning the Collateral that the Collateral Agent may reasonably request.

 

    	13

    	 

    
 

		6.3	The Collateral

 

		(a)	Except as expressly permitted by the Indenture or this Agreement, the Grantors:

 

		(i)	must maintain sole legal and beneficial ownership of the Collateral;

 

		(ii)	must not permit any Collateral to be subject to any Lien other than the Collateral Agent’s
security interest and Liens securing the ABL Debt and must at all times warrant and defend the Collateral Agent’s security
interest in the Collateral against all other Liens (other than Priority Liens) and claimants;

 

		(iii)	must not sell, assign, transfer, pledge, license, lease or further encumber, or grant any option,
warrant, or right with respect to, any of the Collateral, or agree or contract to do any of the foregoing;

 

		(iv)	must not waive, amend or terminate, in whole or in part, any accessory or ancillary right or other
right in respect of any Collateral; and

 

		(v)	must not take any action which would result in a reduction in the value of any Collateral.

 

		(b)	The Grantors must pay when due (and in any case before any penalties are assessed or any Lien is
imposed on any Collateral) all taxes, assessments and charges imposed on or in respect of Collateral and all claims against the
Collateral, including claims for labor, materials and supplies.

 

		(c)	In any suit, legal action, arbitration or other proceeding involving the Collateral or the Collateral
Agent’s security interest, the Grantors must take all lawful action to avoid impairment of the Collateral Agent’s security
interest or the Collateral Agent’s rights under this Agreement or the imposition of a Lien (other than Permitted Liens (as
defined in the Indenture)) on any Collateral.

 

		6.4	Intellectual Property

 

		(a)	It shall not do any act or omit to do any act whereby any of the Intellectual Property which is
material to the business of such Grantor or which is of material value may lapse, or become abandoned, dedicated to the public,
or unenforceable, or which would adversely affect the validity, grant, or enforceability of the security interest granted therein.

 

		(b)	It shall not, with respect to any Trademarks, cease the use of any of such Trademarks or fail to
maintain the level of the quality of products sold and services rendered under any of such Trademark at a level at least substantially
consistent with the quality of such products and services as of the date hereof, and such Grantor shall take all steps necessary
to insure that licensees of such Trademarks use such consistent standards of quality.

 

    	14

    	 

    
 

		(c)	It shall, within thirty (30) days of the creation or acquisition or exclusive license of any Copyrightable
work which is material to the business of such Grantor or otherwise of material value, apply to register the Copyright and, in
the case of an exclusive Copyright License, record such license, in the United States Copyright Office.

 

		(d)	It shall promptly notify the Collateral Agent if it knows or has reason to know that any item of
Intellectual Property material to its business may become (i) abandoned or dedicated to the public or placed in the public domain,
(ii) invalid or unenforceable, (iii) subject to any adverse determination or development (including the institution of proceedings)
in any action or proceeding in the United States Patent and Trademark Office, the United States Copyright Office or (iv) be the
subject of any reversion or termination rights.

 

		(e)	It shall take all reasonable steps in the United States Patent and Trademark Office, the United
States Copyright Office to pursue any application and maintain any registration of each Trademark, Patent, and Copyright owned
by or exclusively licensed to such Grantor which is now or shall become included in the Intellectual Property including, but not
limited to, those items on Schedule 2 (as such may be amended or supplemented from time to time).

 

		(f)	It shall hereafter use best efforts so as not to permit the inclusion in any contract to which
it hereafter becomes a party of any provision that could or might in any way materially impair or prevent the creation of a security
interest in, or the assignment of, such Grantor’s rights and interests in any property included within the definitions of
any Intellectual Property acquired under such contracts.

 

		(g)	In the event that any Intellectual Property owned by or exclusively licensed to the Grantor is
infringed, misappropriated, or diluted by a third party, such Grantor shall promptly take all reasonable actions to stop such infringement,
misappropriation, or dilution and protect its rights in such Intellectual Property including, but not limited to, the initiation
of a suit for injunctive relief and to recover damages.

 

		(h)	It shall take all steps reasonably necessary to protect the secrecy of all Trade Secrets, including,
without limitation, entering into confidentiality agreements with employees and consultants and labeling and restricting access
to secret information and documents.

 

		(i)	It shall use proper statutory notice in connection with its use of any of the Intellectual Property.

 

		(j)	It shall continue to collect, at its own expense, all amounts due or to become due to such Grantor
in respect of the Intellectual Property or any portion thereof. In connection with such collections, such Grantor may take (and,
at the Collateral Agent’s reasonable direction, shall take) such action as such Grantor or the Collateral Agent may deem
reasonably necessary or advisable to enforce collection of such amounts. Notwithstanding the foregoing, the Collateral Agent shall
have the right at any time, to notify, or require such Grantor to notify, any obligors with respect to any such amounts of the
existence of the security interest created hereby.

 

    	15

    	 

    

 

		6.5	Notices

 

		(a)	The Grantors must give the Collateral Agent prompt notice of the occurrence of any of the following
events:

 

		(i)	any pending or threatened claim, suit, legal action, arbitration or other proceeding involving
or affecting any Grantor or any Collateral which could reasonably be expected to impair the Collateral Agent’s security interest
or the Collateral Agent’s rights under this Agreement or result in the imposition of a Lien (other than Permitted Liens (as
defined in the Indenture)) on any Collateral;

 

		(ii)	any loss or damage to any material portion of the Collateral; or

 

		(iii)	any representation or warranty contained in this Agreement is or becomes untrue, incorrect or incomplete
in any material respect.

 

		(b)	Each notice delivered under this Clause, must include:

 

		(i)	reasonable details about the event; and

 

		(ii)	the Grantors’ proposed course of action.

 

Delivery of a notice under this
Clause does not affect any Grantor’s obligations to comply with any other term of this Agreement.

 

		7.	When
                                                                                                                                                            security
                                                                                                                                                            becomes
                                                                                                                                                            enforceable

 

This Security may be enforced
by the Collateral Agent at any time after an Event of Default has occurred.

 

		8.	Enforcement
                                                                                                                                                            of
                                                                                                                                                            security

 

		8.1	Events of Default

 

Each of the events set out in
this Subclause is an Event of Default.

 

		(a)	Any Grantor fails to comply with Clause 6.3(a) (The Collateral);

 

		(b)	Any Grantor fails to comply with any other term of this Agreement or any Control Agreement unless
the non-compliance:

 

		(i)	is capable of remedy; and

 

		(ii)	is remedied within 14 days of the Collateral Agent giving notice to such Grantor;

 

    	16

    	 

    

 

		(c)	A representation or warranty made or repeated in this Agreement or any Control Agreement, is untrue
or incorrect in any material aspect when made or deemed to be repeated;

 

		(d)	Any attachment, execution or levy is made in respect of any part of the Collateral; or

 

		(e)	An “Event of Default” (as that term is defined in the Indenture) occurs.

 

		8.2	General

 

		(a)	After this Security has become enforceable, the Collateral Agent may immediately, in its absolute
discretion but subject to the Intercreditor Agreement, exercise any right under:

 

		(i)	applicable law; or

 

		(ii)	this Agreement,

 

to enforce all or any part of
the Security in respect of any Collateral in any manner or order it sees fit.

 

		(b)	This includes:

 

		(i)	any rights and remedies available to the Collateral Agent under applicable law and under the UCC
(whether or not the UCC applies to the affected Collateral and regardless of whether or not the UCC is the law of the jurisdiction
where the rights or remedies are asserted) as if those rights and remedies were set forth in this Agreement in full;

 

		(ii)	transferring or assigning to, or registering in the name of, the Collateral Agent or its nominees
any of the Collateral;

 

		(iii)	exercising any consent and other rights relating to any Collateral;

 

		(iv)	performing or complying with any contractual obligation that constitutes part of the Collateral;

 

		(v)	receiving, endorsing, negotiating, executing and delivering or collecting upon any check, draft,
note, acceptance, account, instrument, document, letter of credit, contract, agreement, receipt, release, bill of lading, invoice,
endorsement, assignment, bill of sale, deed, security, share certificate, stock power, proxy, or instrument of conveyance or transfer
constituting or relating to any Collateral;

 

		(vi)	asserting, instituting, filing, defending, settling, compromising, adjusting, discounting or releasing
any suit, action, claim, counterclaim, right of set-off or other right or interest relating to any Collateral;

 

    	17

    	 

    

 

		(vii)	executing and delivering acquittances, receipts and releases in respect of Collateral; and

 

		(viii)	exercising any other right or remedy available to the Collateral Agent under the other Finance
Documents or any other agreement between the parties.

 

		8.3	Collections after an Event of Default

 

Subject to
the rights of the holders of First Priority Debt under the Intercreditor Agreement:

 

		(a)	if an Event of Default occurs and is continuing, the Grantors must hold all funds and other property
received or collected in respect of the Collateral in trust for the Collateral Agent, and must keep these funds and this other
property segregated from all other funds and property so as to be capable of identification;

 

		(b)	the Grantors must deliver those funds and that other property to the Collateral Agent in the identical
form received, properly endorsed or assigned when required to enable the Collateral Agent to complete collection; and

 

		(c)	after the occurrence and during the continuation of an Event of Default, no Grantor may settle,
compromise, adjust, discount or release any claim in respect of Collateral, and no Grantor may accept any returns of merchandise
other than in the ordinary course of business.

 

		8.4	Collateral Agent’s rights upon default

 

		(a)	Each Grantor irrevocably constitutes and appoints the Collateral Agent, with full power of substitution,
as such Grantor’s true and lawful attorney-in-fact, in such Grantor’s name or in the Collateral Agent’s name
or otherwise, and at such Grantor’s expense, to take any of the actions authorized by this Agreement or permitted under applicable
law upon the occurrence and during the continuation of an Event of Default, without notice to or the consent of such Grantor. This
power of attorney is a power coupled with an interest and cannot be revoked. Each Grantor ratifies and confirms all actions taken
by the Collateral Agent or its agents under this power of attorney.

 

		(b)	The Grantors agree that 10 days’ notice shall constitute reasonable notice in connection
with any sale, transfer or other disposition of Collateral.

 

		(c)	The Collateral Agent may comply with any applicable state or federal law requirements in connection
with a disposition of Collateral and compliance will not be considered adversely to affect the commercial reasonableness of any
sale of Collateral.

 

    	18

    	 

    
 

		(d)	The grant to the Collateral Agent under this Agreement of any right, power or remedy does not impose
upon the Collateral Agent any duty to exercise that right, power or remedy. The Collateral Agent will have no obligation to take
any steps to preserve any claim or other right against any person or with respect to any Collateral.

 

		(e)	The Grantors bear the risk of loss, damage, diminution in value, or destruction of the Collateral.

 

		(f)	The Collateral Agent will have no responsibility for any act or omission of any courier, bailee,
broker, bank, investment bank or any other person chosen by it with reasonable care.

 

		(g)	The Collateral Agent makes no express or implied representations or warranties with respect to
any Collateral or other property released to the Grantors or their respective successors and assigns.

 

		(h)	The Grantors agree that the Collateral Agent will have met its duty of care under applicable law
if it holds, maintains and disposes of Collateral in the same manner that it holds, maintains and disposes of property for its
own account.

 

		(i)	Except as set forth in this Clause or as required under applicable law, the Collateral Agent will
have no duties or obligations under this Agreement or otherwise with respect to the Collateral.

 

		(j)	The sale, transfer or other disposition under this Agreement of any right, title, or interest of
any Grantor in any item of Collateral will:

 

		(i)	operate to divest such Grantor permanently and all persons claiming under or through such Grantor
of that right, title, or interest, and

 

		(ii)	be a perpetual bar, both at law and in equity, to any claims by such Grantor or any person claiming
under or through such Grantor

 

with respect to that item of
Collateral.

 

		8.5	No marshaling

 

		(a)	The Collateral Agent need not, and the Grantors irrevocably waive and agree that they will not
invoke or assert any law requiring the Collateral Agent to:

 

		(i)	attempt to satisfy the Secured Liabilities by collecting them from any other person liable for
them; or

 

		(ii)	marshal any security or guarantee securing payment or performance of the Secured Liabilities or
any particular asset of any Grantor.

 

		(b)	The Collateral Agent may release, modify or waive any collateral or guarantee provided by any other
person to secure any of the Secured Liabilities, without affecting the Collateral Agent’s rights against the Grantors.

 

    	19

    	 

    

 

		8.6	Grant of Intellectual Property License

 

For
the purpose of enabling the Collateral Agent, during the continuance of an Event of Default, to exercise rights and remedies under
this Clause 8 hereof at such time as the Collateral Agent shall be lawfully entitled to exercise such rights and remedies,
and for no other purpose, the Grantor hereby grants to the Collateral Agent, to the extent assignable, an irrevocable, non-exclusive
license to use, assign, license or sublicense any of the Intellectual Property now owned or hereafter acquired by such Grantor,
wherever the same may be located. Such license shall be subject, in the case of Trademarks, to sufficient rights to quality
control and inspection in favor of the Grantor to avoid the risk of invalidation of said Trademarks. Such
license shall include access to all media in which any of the licensed items may be recorded or stored and to all computer programs
used for the compilation or printout hereof.

 

		9.	Application
                                                                                                                                                            of
                                                                                                                                                            proceeds

 

Any moneys received in connection
with the Collateral by the Collateral Agent after this Security has become enforceable must be applied in the following order of
priority:

 

		(a)	first, in or towards payment of or provision for all costs and expenses incurred by the
Collateral Agent in connection with the enforcement of this Security;

 

		(b)	second, in or towards payment of, or provision for, the Secured Liabilities; and

 

		(c)	third, in payment of the surplus (if any) to the Grantors or any other Person entitled to
it under applicable law.

 

This Clause is subject to the
prior payment of First Priority Debt in accordance with the terms of the Intercreditor Agreement and claims having priority over
this Security under mandatory provisions of applicable law. This Clause does not prejudice the right of any Noteholder to recover
any shortfall from the Grantors, and the preceding sentence shall not be deemed or interpreted as a waiver or modification of Clause
6.3(a) (The Collateral).

 

		10.	Expenses
                                                                                                                                                             and
                                                                                                                                                             indemnity

 

		(a)	The Grantors must pay promptly on demand to the Collateral Agent all costs and expenses incurred
by the Collateral Agent, any Noteholder, attorney, manager, delegate, sub-delegate, agent or other person appointed by the Collateral
Agent under this Agreement for the purpose of enforcing its rights under this Agreement. This includes:

 

		(i)	costs of foreclosure and of any transfer, disposition or sale of Collateral;

 

		(ii)	costs of maintaining or preserving the Collateral or assembling it or preparing it for transfer,
disposition or sale;

 

		(iii)	costs of obtaining money damages; and

 

    	20

    	 

    

 

		(iv)	fees and expenses of attorneys employed by the Collateral Agent for any purpose related to this
Agreement or the Secured Liabilities, including consultation, preparation and negotiation of any amendment or restructuring, drafting
documents, sending notices or instituting, prosecuting or defending litigation or arbitration.

 

		(b)	The Grantors must indemnify and keep indemnified the Collateral Agent, the Noteholders and their
respective affiliates, directors, officers, representatives and agents from and against all claims, liabilities, obligations, losses,
damages, penalties, judgments, costs and expenses of any kind (including attorney’s fees and expenses) which may be imposed
on, incurred by or asserted against any of them by any person (including any Noteholder) in any way relating to or arising out
of:

 

		(i)	this Agreement;

 

		(ii)	the Collateral;

 

		(iii)	the Collateral Agent’s security interest in the Collateral;

 

		(iv)	any Event of Default;

 

		(v)	any action taken or omitted by the Collateral Agent under this Agreement or any exercise or enforcement
of rights or remedies under this Agreement; or

 

		(vi)	any transfer sale or other disposition of or any realization on Collateral.

 

		(c)	The Grantors will not be liable to an indemnified party to the extent any liability results from
that indemnified party’s gross negligence or willful misconduct. Payment by an indemnified party will not be a condition
precedent to the obligations of any Grantor under this indemnity.

 

		(d)	The obligations of the Grantors under this Clause 10 (Expenses and Indemnity) are joint
and several.

 

		(e)	This Clause survives the issuance of the Notes, the repayment of the Notes, any transfer or assignment
of the Notes and the termination of this Agreement.

 

		11.	Evidence
                                                                                                                                                             and
                                                                                                                                                             calculations

 

In the absence of manifest error,
the records of the Collateral Agent are conclusive evidence of the existence and the amount of the Secured Liabilities.

 

    	21

    	 

    
 

		12.	Changes
                                                                                                                                                             to
                                                                                                                                                             the
                                                                                                                                                             parties

 

		12.1	Grantors

 

The Grantors may not assign,
delegate or transfer any of their respective rights or obligations under this Agreement without the consent of the Collateral Agent,
and any purported assignment, delegation or transfer in violation of this provision shall be void and of no effect.

 

		12.2	Collateral Agent

 

The
Collateral Agent may assign or transfer its rights and obligations under this Agreement in the manner permitted under the Indenture.

 

		12.3	Successors and assigns

 

This Agreement shall be binding
on and inure to the benefit of the respective successors and permitted assigns of the Grantors and the Collateral Agent.

 

		13.	Miscellaneous

 

		13.1	Amendments and waivers

 

Any term of this Agreement may
be amended or waived only by the written agreement of the Grantors and the Collateral Agent.

 

		13.2	Waivers and remedies cumulative

 

		(a)	The rights and remedies of the Collateral Agent under this Agreement:

 

		(i)	may be exercised as often as necessary;

 

		(ii)	are cumulative and not exclusive of its rights under applicable law; and

 

		(iii)	may be waived only in writing and specifically.

 

		(b)	Delay in exercising, or non-exercise, of any right or remedy under this Agreement is not a waiver
of that right or remedy.

 

		13.3	Counterparts

 

This Agreement may be executed
in counterparts, and this has the same effect as if the signatures on the counterparts were on a single copy of this Agreement.

 

		14.	Severability

 

If any term of this Agreement
is or becomes illegal, invalid or unenforceable in any jurisdiction, that will not affect:

 

		(a)	the legality, validity or enforceability in that jurisdiction of any other term of this Agreement;
or

 

    	22

    	 

    

 

		(b)	the legality, validity or enforceability in any other jurisdiction of that or any other term of
this Agreement.

 

		15.	Release

 

At the end of the Security Period,
the Collateral Agent must, at the request and cost of the Grantors, take whatever action is necessary to release the Collateral
from this Security in accordance with the terms of the Indenture.

 

		16.	Notices

 

		16.1	Notices

 

Any communication in connection
with this Agreement must be in writing and, unless otherwise stated, must be given in person or by fax.

 

		16.2	Contact details

 

		(a)	The contact details of the Grantors for this purpose are:

 

Liggett Group
LLC

		Address:	100 Maple Lane

                                                                                Mebane, NC 27302

		Fax:	(919) 990-3505

		Attention:	John R. Long

 

100 Maple
LLC

		Address:	100 S. E. Second Street

32nd Floor

Miami, FL 33131

		Fax:	(919) 990-3505

		Attention:	John R. Long

 

		(b)	The contact details of the Collateral Agent for this purpose are:

 

U.S.
Bank National Association

		Address:	Global Corporate Trust Services

                                                                                60 Livingston Avenue

                                                                                EP-MN-WS3C

                                                                                St. Paul, MN 55107-2292

		Fax:	(651) 466-7430

		Attention:	Joshua A. Hahn

 

		(c)	Any party may change its contact details by giving five Business Days’ notice to the other
parties.

 

    	23

    	 

    

 

		(d)	Where a party nominates a particular department or officer to receive a communication, a communication
will not be effective if it fails to specify that department or officer.

 

		16.3	Effectiveness

 

		(a)	Except as provided below, any communication in connection with this Agreement will be deemed to
be given as follows:

 

		(i)	if delivered in person, at the time of delivery;

 

		(ii)	if by fax, when sent with confirmation of transmission.

 

		(b)	A communication given under this Clause but received on a non-working day or after business hours
in the place of receipt will only be deemed to be given on the next working day in that place.

 

		17.	Governing
                                                                                                                                                             law

 

This Agreement, the relationship
between the Grantors, the Collateral Agent and the Noteholders and any claim or dispute (whether sounding in contract, tort, statute
or otherwise) relating to this Agreement or that relationship shall be governed by and construed in accordance with law of the
State of New York including section 5-1401 of the New York General Obligations Law but excluding any other conflict of law rules
that would lead to the application of the law of another jurisdiction. If the law of a jurisdiction other than New York is, under
section 1-105(2) of the UCC, mandatorily applicable to the perfection, priority or enforcement of any security interest granted
under this Agreement in respect of any particular Collateral, that other law shall apply solely to the matters of perfection, priority
or enforcement to which it is mandatorily applicable.

 

		18.	Enforcement

 

		18.1	Jurisdiction

 

		(a)	Each of the Parties agree that any New York State court or Federal court sitting in the City and
County of New York has jurisdiction to settle any disputes in connection with this Agreement and accordingly submits to the jurisdiction
of those courts.

 

		(b)	Each of the Parties:

 

		(i)	waives objection to the New York State and Federal courts on grounds of personal jurisdiction,
inconvenient forum or otherwise as regards proceedings in connection with this Agreement; and

 

		(ii)	agrees that a judgment or order of a New York State or Federal court in connection with this Agreement
is conclusive and binding on it and may be enforced against it in the courts of any other jurisdiction.

 

    	24

    	 

    

 

		(c)	Nothing in this Clause limits the right of the Collateral Agent or any Noteholder to bring proceedings
against any Grantor in connection with this Agreement:

 

		(i)	in any other court of competent jurisdiction; or

 

		(ii)	concurrently in more than one jurisdiction.

 

		18.2	Service of Process

 

		(a)	Liggett Group LLC irrevocably appoints The Corporation Trust Company, Corporation Trust Center,
1209 Orange Street, Wilmington, DE 19801 as its agent for service of process in relation to proceedings before any courts located
in the State of New York in connection with this Agreement. 100 Maple LLC irrevocably appoints The Corporation Trust Company, Corporation
Trust Center, 1209 Orange Street, Wilmington, DE 19801 as its agent for service of process in relation to proceedings before any
courts located in the State of New York in connection with this Agreement.

 

		(b)	Each Grantor agrees to maintain an agent for service of process in the State of New York until
the end of the Security Period.

 

		(c)	Each Grantor agrees that failure by a process agent to notify such Grantor of the process will
not invalidate the proceedings concerned.

 

		(d)	Each Grantor consents to the service of process relating to any proceedings by a notice given in
accordance with Clause 16 (Notices) above.

 

		(e)	If the appointment of any person mentioned in paragraph (a) above ceases to be effective, any affected
Grantor must immediately appoint a further person in the State of New York to accept service of process on its behalf in the State
of New York, and, if such Grantor does not appoint a process agent within 15 days, the Grantor authorizes the Collateral Agent
to appoint a process agent for such Grantor.

 

		18.3	Complete Agreement

 

This Agreement and the other
Finance Documents contain the complete agreement between the parties on the matters to which they relate and supersede all prior
commitments, agreements and understandings, whether written or oral, on those matters.

 

		18.4	Waiver of Jury Trial

 

THE GRANTORS AND THE COLLATERAL
AGENT (FOR ITSELF AND ON BEHALF OF THE NOTEHOLDERS) WAIVE ANY RIGHTS THEY MAY HAVE TO A JURY TRIAL OF ANY CLAIM OR CAUSE OF ACTION
BASED ON OR ARISING FROM THIS AGREEMENT OR THE TRANSACTIONS CONTEMPLATED BY THIS AGREEMENT. In the event of litigation, this Agreement
may be filed as a written consent to a trial by the court.

 

    	25

    	 

    

 

The undersigned, intending to be legally
bound, have executed and delivered this Agreement on the date stated at the beginning of this Agreement.

    	26

    	 

    

 

SCHEDULE 1

 

Commercial
Tort Claims

 

None.

 

    	27

    	 

    

 

SCHEDULE 2

 

INTELLECTUAL
PROPERTY

 

COPYRIGHTS:

 

Registrations

 

Liggett Group LLC – None.

100 Maple LLC - None.

 

Applications

 

Liggett Group LLC- None.

100 Maple LLC- None.

 

COPYRIGHT LICENSES:

 

Liggett Group LLC - None.

100 Maple LLC - None.

 

PATENTS:

 

Registrations

 

Liggett Group LLC - None.

100 Maple LLC - None.

 

Applications

 

Liggett Group LLC - None.

100 Maple LLC - None.

 

PATENT LICENSES:

 

Liggett Group LLC - None.

100 Maple LLC - None.

 

    	28

    	 

    

 

TRADEMARKS:

 

Registrations

 

Liggett Group LLC -

 

	Mark	 	Owner	 	
        Appl. No.

        Filing Date
	 	
        Reg. No.

        Reg. Date

	 	 	 	 	 	 	 
		 	Liggett Group LLC	 	
        78/526208

        02-DEC-2004
	 	
        3108068

        20-JUN-2006

	 	 	 	 	 	 	 
		 	Liggett Group LLC	 	
        76/386980

        26-MAR-2002
	 	
        2815517

        17-FEB 2004

	 	 	 	 	 	 	 
		 	Liggett Group LLC	 	
        74/395981

        27-MAY-1993
	 	
        1863305

        15-NOV-1994

	 	 	 	 	 	 	 
		 	Liggett Group LLC	 	
        74/259122

        26-MAR-1992
	 	
        1804692

        16-NOV-1993

	 	 	 	 	 	 	 
		 	Liggett Group LLC	 	
        73/654465

        10-APR-1987
	 	
        1462175

        20-OCT-1987

	 	 	 	 	 	 	 
		 	Liggett Group LLC	 	
        73/609530

        07-JUL-1986
	 	
        1434164

        24-MAR-1987

	 	 	 	 	 	 	 
		 	Liggett Group LLC	 	
        73/465819

        15-FEB-1984
	 	
        1327319

        26-MAR-1985

 

    	29

    	 

    
 

	Mark	 	Owner	 	
        Appl. No.

        Filing Date
	 	
        Reg. No.

        Reg. Date

	 	 	 	 	 	 	 
		 	Liggett Group LLC	 	
        73/465818

        15-FEB-1984
	 	
        1344930

        25-JUN-1985

	 	 	 	 	 	 	 
	BAILOUT	 	Liggett Group LLC	 	
        77/668575

        11-FEB-2009
	 	
        3944929

        12-APR-2011

	 	 	 	 	 	 	 
	BAILOUT BRAND	 	Liggett Group LLC	 	
        77/668584

        11-FEB-2009
	 	
        3944930

        12-APR-2011

	 	 	 	 	 	 	 
	BALANCE	 	Liggett Group LLC	 	
        72/453505

        04-APR-1973
	 	
        0978016

        05-FEB-1974

	 	 	 	 	 	 	 
	BRONSON	 	Liggett Group LLC	 	
        74/349010

        15-JAN-1993
	 	
        1821601

        15-FEB-1994

	 	 	 	 	 	 	 
	CANYON	 	Liggett Group LLC	 	
        74/461134

        22-NOV-1993
	 	
        2010445

        22-OCT-1996

	 	 	 	 	 	 	 
	CLIKPAK FRESHNESS	 	Liggett Group LLC	 	
        77/365820

        07-JAN-2008
	 	
        3544810

        09-DEC-2008

	 	 	 	 	 	 	 
	DEVON	 	Liggett Group LLC	 	
        72/142956

        24-APR-1962
	 	
        0743290

        08-JAN-1963

	 	 	 	 	 	 	 
	DORADO	 	Liggett Group LLC	 	
        72/144395

        11-MAY-1962
	 	
        0739917

        30-OCT-1962

	 	 	 	 	 	 	 
	EPIC	 	Liggett Group LLC	 	
        73/047852

        27-MAR-1975
	 	
        1029542

        06-JAN-1976

	 	 	 	 	 	 	 
	EVE	 	Liggett Group LLC	 	
        72/314239

        11-DEC-1968
	 	
        0872454

        08-JUL-1969

	 	 	 	 	 	 	 
	FM	 	Liggett Group LLC	 	
        72/131142

        01-NOV-1961
	 	
        0734059

        10-JUL-1962

	 	 	 	 	 	 	 
	FREEDOM TO SNUS	 	Liggett Group LLC	 	
        76-686770

        13-FEB-2008
	 	
        3552434

        30-DEC-2008

	 	 	 	 	 	 	 
	GOLD LEAF	 	Liggett Group LLC	 	
        73/100609

        22-SEP-1976
	 	
        1233860

        05-APR-1983

	 	 	 	 	 	 	 
	GRAND PRIX	 	Liggett Group LLC	 	
        76/686769

        13-FEB-2008
	 	
        3,705,685

        11/3/2009

	 	 	 	 	 	 	 
	GRAND PRIX	 	Liggett Group LLC	 	
        73/641310

        23-JAN-1987
	 	
        1453454

        18-AUG-1987

	 	 	 	 	 	 	 
	LIGET	 	Liggett Group LLC	 	
        72/153363

        25-SEP-1962
	 	
        0745060

        12-FEB-1963

	 	 	 	 	 	 	 
	LIGGETT GROUP	 	Liggett Group LLC	 	
        74/721242

        28-AUG-1995
	 	
        2023349

        17-DEC-1996

	 	 	 	 	 	 	 
	LIGGETT SELECT	 	Liggett Group LLC	 	
        76/533449

        30-JUL-2003
	 	
        2961769

        14-JUN-2005

	 	 	 	 	 	 	 
	LOWEST PRICE FIGHTER	 	Liggett Group LLC	 	
        78/712476

        14-SEP-2005
	 	
        3259428

        03-JUL-2007

	 	 	 	 	 	 	 
	LYRIC	 	Liggett Group LLC	 	
        72/145948

        1-JUN-1962
	 	
        741833

        11-DEC-1962

	 	 	 	 	 	 	 
	MONTEGO	 	Liggett Group LLC	 	
        74/461169

        22-NOV-1993
	 	
        1900071

        13-JUN-1995

	 	 	 	 	 	 	 
	PARKWAY	 	Liggett Group LLC	 	
        72/145949

        01-JUN-1962
	 	
        0739918

        30-OCT-1962

	 	 	 	 	 	 	 
	PELHAM	 	Liggett Group LLC	 	
        72/144396

        11-MAY-1962
	 	
        0751937

        02-JUL-1963

	 	 	 	 	 	 	 
	PYRAMID	 	Liggett Group LLC	 	
        73/366688

        26-MAY-1982
	 	
        1273822

        10-APR-1984

	 	 	 	 	 	 	 
	RENO	 	Liggett Group LLC	 	74/400551

11-JUN-1993	 	1865400

29-NOV-1994

 

    	30

    	 

    
 

	Mark	 	Owner	 	
        Appl. No.

        Filing Date
	 	
        Reg. No.

        Reg. Date

	 	 	 	 	 	 	 
	TASTE OF AMERICA	 	Liggett Group LLC	 	74/299936

31-JUL-1992	 	1802889

02-NOV-1993
	 	 	 	 	 	 	 
	YOU DESERVE A BAILOUT TOO!	 	Liggett Group LLC	 	77/670463

13-FEB-2009	 	
        3,819,299

        13-JULY-2010

 

100 Maple LLC - None.

 

Applications

 

Liggett Group LLC -

 

	Mark	 	Owner	 	
        Appl. No.

        Filing Date
	 	
        Reg. No.

        Reg. Date

	 	 	 	 	 	 	 
	APEX	 	Liggett Group LLC	 	
        77/539165

        05-AUG-2008
	 	 
	 	 	 	 	 	 	 
	CALYPSO	 	Liggett Group LLC	 	
        76/700975

        12/23/2009
	 	 
	 	 	 	 	 	 	 
	DUKE’S	 	Liggett Group LLC	 	
        76/700976

        12/23/2009
	 	 

 

100 Maple LLC - None.

 

TRADEMARK LICENSES:

 

Liggett Group LLC - None.

100 Maple LLC - None.

 

TRADE SECRET LICENSES:

 

Liggett
Group LLC - None.

100 Maple
LLC - None.

 

    	31

    	 

    

 

SIGNATORIES

 

In
Witness Whereof, the Grantors have caused this Security Agreement to be duly executed by its duly authorized officer as
of the day and year first above written.

 

	Grantors	 
	 	 
	LIGGETT GROUP LLC	 
	 	 	 	 
	 	By:	/s/ John R. Long	 
	 	Name:	John R. Long	 
	 	Title:	Vice President, General Counsel and Secretary
	 	 	 	 
	100 MAPLE LLC	 
	 	 	 	 
	 	By:	/s/ John R. Long	 
	 	Name:	John R. Long	 
	 	Title:	Secretary	 

 

(Signature Page to Security Agreement
– Liggett Group LLC and 100 Maple LLC)

 

    	32

    	 

    

 

	Collateral Agent	 
	 	 
	U.S. BANK NATIONAL ASSOCIATION	 
	as Collateral Agent	 
	 	 	 
	By:	/s/ Joshua A. Hahn	 
	 	 	 
	Name:	Joshua A. Hahn	 
	 	 	 
	Title:	Assistant Vice President	 

 

(Signature Page to Security Agreement
– Liggett Group LLC and 100 Maple LLC)

 

    	33

    	 

    

 

EXHIBIT
1

 

Form
of Patent Security Agreement

 

(see attached)

 

    	 

    	 

    

 

FORM OF

PATENT SECURITY AND PLEDGE AGREEMENT

 

This PATENT SECURITY
AND PLEDGE AGREEMENT, dated as of [            ], 2013 (as may
be amended, restated, supplemented or otherwise modified from time to time, this “Agreement”), is made by [            ],
a [               ] limited liability company and [            ],
a [               ] limited liability company (the “Grantor”)
in favor of U.S. Bank National Association, as collateral agent (in such capacity, the “Collateral Agent”)
for the Noteholders (as defined in the Security Agreement referred to below).

 

WHEREAS, the Grantors
have guaranteed the Notes issued under the Indenture, dated as of February 12, 2013 (as amended, supplemented, or otherwise modified
from time to time, the “Indenture”) among Vector Group Ltd. (the “Issuer”), the Grantors
and certain of the Issuer’s other direct and indirect subsidiaries and the Collateral Agent, in its capacity as trustee thereunder.

 

WHEREAS, it is a condition
precedent to the obligations of the Collateral Agent under the Indenture that each Grantor shall have executed and delivered that
certain Security Agreement, dated as of February 12, 2013, in favor of the Collateral Agent (as amended, supplemented, replaced
or otherwise modified from time to time, the “Security Agreement”).

 

WHEREAS, under the
terms of the Security Agreement, each Grantor has granted a security interest in certain Property, including, without limitation,
certain Intellectual Property of such Grantor to the Collateral Agent for the ratable benefit of the Noteholders, and have agreed
as a condition thereof to execute this Agreement for recording with the United States Patent and Trademark Office and other applicable
Governmental Authorities.

 

WHEREAS, this Agreement
is supplemental to the provisions contained in the Security Agreement and, in the event of an inconsistency among them, the Security
Agreement shall control over this Agreement.

 

NOW, THEREFORE, for
good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Grantor agrees as follows:

 

1.

DEFINITIONS.

 

1.1           Terms
Defined in the Security Agreement. All capitalized terms used in this Agreement and not otherwise defined herein shall
have the meanings assigned to them in the Security Agreement.

 

    	 

    	 

    

 

1.2           Certain
Defined Terms. As used in this Agreement, the following terms shall have the following meanings:

 

“Assignment
of Patents” has the meaning set forth in Section 2.2 herein.

 

“Patent
Collateral” has the meaning set forth in Section 2.1 herein.

 

“PTO”
means the United States Patent and Trademark Office.

 

1.3           Rules
of Construction. Unless otherwise provided herein, the rules of construction set forth
in Section 1.2 of the Security Agreement shall be applicable to this Agreement.

 

2.

grant
of SECURITY INTEREST.

 

2.1           Security
Interest. As collateral security for the payment and performance in full of all of
the Secured Liabilities, each Grantor hereby grants to the Collateral Agent, for the benefit of the Collateral Agent and the ratable
benefit of the Noteholders, a continuing security interest in and lien on all of such Grantor’s rights, title and interests
in all Patents and Patent Licenses, including the Patents and Patent Licenses referred to on Schedule A hereto, in each
case whether now or hereafter existing or arising or in which such Grantor now has or hereafter owns, acquires or develops an interest
and wherever located (collectively, the “Patent Collateral”).

 

2.2           Assignment
of Patents upon Default. Each Grantor acknowledges that the Collateral Agent has the
right, pursuant to the power of attorney granted the Collateral Agent hereunder and under the Security Agreement, upon the occurrence
and during the continuance of an Event of Default, to execute on behalf of such Grantor an assignment of Patents and Patent Licenses
that constitute Patent Collateral in substantially the form of Exhibit 1 hereto (each an “Assignment of Patents”)
for the sole purpose of effecting the Collateral Agent’s exercise of its remedies under Section 8 of the Security Agreement.
In furtherance of the foregoing, each Grantor hereby authorizes the Collateral Agent to complete, execute and record with the PTO
an Assignment of Patents on behalf of such Grantor upon the occurrence and during the continuance of an Event of Default for the
sole purpose of effecting the Collateral Agent’s exercise of its remedies under Section 8 of the Security Agreement.

 

2.3           Conditional
Assignment. In addition to, and not by way of limitation of, the grant and pledge
of the Patent Collateral provided in Section 2.1, each Grantor grants, assigns, transfers, conveys and sets over to the Collateral
Agent, for the benefit of the Noteholders, such Grantor’s entire right, title and interest in and to the Patent Collateral;
provided, that such grant, assignment, transfer and conveyance shall be and become of force and effect only (a) in connection
with the Collateral Agent’s exercise of its rights and remedies in strict accordance with the terms of the Security Agreement,
and (b) upon or after the occurrence and during the continuance of an Event of Default and (c) either (i) upon the written demand
of the Collateral Agent at any time during such continuance or (ii) immediately and automatically (without notice or action of
any kind by the Collateral Agent) upon an Event of Default for which acceleration of the payment of the Notes is automatic under
the Indenture or upon the sale or other disposition of or foreclosure upon the Collateral pursuant to the Security Agreement and
applicable law (including the transfer or other disposition of the Collateral by any Grantor to the Collateral Agent or its nominee
in lieu of foreclosure).

 

    	 

    	 

    

 

2.4           Supplemental
to Security Agreement. Pursuant to the Security Agreement the Grantor has granted to the Collateral Agent, for the benefit
of the Noteholders, a continuing security interest in and lien on the Collateral (including the Patent Collateral). The Security
Agreement, and all rights and interests of the Collateral Agent in and to the Collateral (including the Patent Collateral) thereunder,
are hereby ratified and confirmed in all respects. In no event shall this Agreement, the grant, assignment, transfer and conveyance
of the Patent Collateral hereunder, or the recordation of this Agreement (or any other document hereunder) with the PTO, adversely
affect or impair, in any way or to any extent, the Security Agreement, the security interest of the Collateral Agent in the Collateral
(including the Patent Collateral) pursuant to the Security Agreement, the attachment and perfection of such security interest under
the UCC (including the security interest in the Patent Collateral), or any present or future rights and interests of the Collateral
Agent in and to the Collateral under or in connection with the Security Agreement or the UCC. Any and all rights and interests
of the Collateral Agent in and to the Patent Collateral (and any and all obligations of the Grantors with respect to the Patent
Collateral) provided herein, or arising hereunder or in connection herewith, shall only supplement and be cumulative and in addition
to the rights and interests of the Collateral Agent (and the obligations of the Grantors) in, to or with respect to the Collateral
(including the Patent Collateral) provided in or arising under or in connection with the Security Agreement and shall not be in
derogation thereof.

 

3.

AFTER-ACQUIRED
PATENTS

 

3.1           After-acquired
Patents. If, after the execution of this Agreement and before the end of the Secured Period, any Grantor shall obtain any right,
title or interest in or to any new patentable inventions or become entitled to the benefit of any Patents or Patent Licenses for
any reissue, division, or continuation, of any Patent, the provisions of this Agreement shall automatically apply thereto and such
Grantor shall promptly provide to the Collateral Agent notice thereof in writing and execute and deliver to the Collateral Agent
such documents or instruments as the Collateral Agent may reasonably request further to implement, preserve or evidence the Collateral
Agent’s interest therein.

 

3.2           Amendment
to Schedule. The Grantor authorizes the Collateral Agent to modify this Agreement and the Assignments of Patents, without the
necessity of such Grantor’s further approval or signature, by amending Schedule A hereto and the Annex to each Assignment
of Patents to include any future or other Patents or Patent Licenses that become part of the Patent Collateral under Section 2
or Section 3.1.

 

    	 

    	 

    

 

4.

Governing
Law; CONSENT TO JURISDICTION.

 

This Agreement,
the relationship between the parties hereunder and any claim or dispute (whether sounding in contract, tort, statute or otherwise)
relating to this Agreement or that relationship shall be governed by and construed in accordance with law of the State of New York
including section 5-1401 of the New York General Obligations Law but excluding any other conflict of law rules that would lead
to the application of the law of another jurisdiction. If the law of a jurisdiction other than New York is, under section 1-105(2)
of the UCC, mandatorily applicable to the perfection, priority or enforcement of any security interest granted under this Agreement
in respect of any Patent Collateral, that other law shall apply solely to the matters of perfection, priority or enforcement to
which it is mandatorily applicable.

 

5.

miscellaneous.

 

5.1           Headings.
The headings of each section of this Agreement are for convenience only and shall not define
or limit the provisions thereof. This Agreement and all rights and obligations hereunder shall be binding upon the Grantor and
its respective successors and assigns, and shall inure to the benefit of the Collateral Agent, the other Noteholders and their
respective successors and assigns. If any term of this Agreement shall be held to be invalid, illegal or unenforceable, the validity
of all other terms hereof shall in no way be affected thereby, and this Agreement shall be construed and be enforceable as if such
invalid, illegal or unenforceable term had not been included herein. The Grantor acknowledges receipt of a copy of this Agreement.

 

5.2           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.

 

[Signatures begin on next page]

 

    	 

    	 

    
 

IN WITNESS WHEREOF,
this Patent Security and Pledge Agreement has been executed and delivered by its duly authorized officer as of the day and year
first above written.

 

	 	[                      ], as Grantor 
	 	By:	 
	 	 	Name:	 
	 	 	Title:	 
	 	 	 	 
	 	U.S. Bank National Association, as Collateral Agent
	 	 	 	 
	 	By:	 
	 	 	Name:	 
	 	 	Title:	 

 

    	 

    	 

    

 

Schedule
A

to the
Patent Security and Pledge Agreement

 

[To
be completed by the Grantor]

 

Grantor: [___]

 

Issued U.S. Patents of Grantor

 

	Patent No.	Issue Date	Title
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 

 

    	 

    	 

    
 

Schedule
A

to the
Patent Security and Pledge Agreement

 

Pending U.S. Patent Applications of Grantor

 

	Serial No.	Filing Date	Title
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 

 

    	 

    	 

    

 

EXHIBIT 1

ASSIGNMENT OF PATENTS

 

WHEREAS, ____________________,
a ________________ organized and existing under the laws of the State of _________________, having a place of business at ________________
(the “Assignor”), has adopted and used and is using the patents (the “Patents”) identified
on the Annex hereto, and is the owner of such Patents; and

 

WHEREAS, U.S.
Bank National Association, having a place of business at 60 Livingston Avenue, EP-MN-WS3C, St. Paul, Minnesota 55107-2292 (the
“Assignee”), is desirous of acquiring the Patents;

 

WHEREAS, the
Assignor and the Assignee have entered into that certain Patent Collateral Security and Pledge Agreement, dated as of ____________
__, 20____ (as may be amended, Patent Collateral Agreement”). Capitalized terms used and not defined herein have the
meanings given such terms in the Patent Collateral Agreement;

 

NOW, THEREFORE,
for good and valuable consideration, receipt of which is hereby acknowledged, the Assignor does hereby assign, sell and transfer
unto the Assignee all right, title and interest in and to the Patents, together with (i) the Issued Patents and Patent Applications
identified on the Annex attached hereto and incorporated herein by reference, (ii) the goodwill of the business symbolized by and
associated with the Patents, and (iii) the right to sue and recover for, and the right to profits or damages due or accrued arising
out of or in connection with, any and all past, present or future infringements of or damage or injury to the Patents or such associated
goodwill.

 

This Assignment of
Patents is intended to and shall take effect at such time as the Assignee shall complete this instrument by signing its acceptance
of this Assignment of Patents below.

 

IN WITNESS WHEREOF,
the Assignor, by its duly authorized officer, has executed this assignment, , on this __ day of ________, 20__.

 

	 	[__________________________]
	 	 	 	 
	 	By:	 
	 	 	Name:	 
	 	 	Title:	 

 

The foregoing assignment
of the Patents by the Assignor to the Assignee is hereby accepted as of the ___ day of ________, 20__.

 

    	 

    	 

    

 

	 	U.S. Bank National Association
	 	 	 	 
	 	By:	 
	 	 	Name:	 
	 	 	Title:	 

 

COMMONWEALTH OR STATE OF ___________________)

) ss.

COUNTY OF ______________________________________

 

On this the ___ day
of ______, 20__, before me appeared _________, the person who signed this instrument, who acknowledged that (s)he is the __________
of ___________________, and that being duly authorized (s)he signed such instrument as a free act on behalf of ___________________________.

 

	 	 
	 	Notary Public
	[Seal]	 
	 	My commission expires:

 

    	 

    	 

    

 

ANNEX

U.S. PATENT REGISTRATIONS AND APPLICATIONS

  

	Title
	App.
                                                                                                                                                                                 No.

        Filing Date
	Patent
                                                                                                                                                                                 No.

        Issue Date
	Security
                                                                                                                                                                                 Interest

	 	 	 	 
	 	 	 	 
	 	 	 	 
	 	 	 	 

 

    	 

    	 

    
 

EXHIBIT 2

 

Form of Trademark Security
Agreement

 

(see attached)

 

    	 

    	 

    

 

FORM OF

TRADEMARK SECURITY AND PLEDGE AGREEMENT

 

This TRADEMARK SECURITY
AND PLEDGE AGREEMENT, dated as of [            ], 2013 (as may
be amended, restated, supplemented or otherwise modified from time to time, this “Agreement”), is made by [            
], a [          ] limited liability company and [        ],
a [        ] limited liability company (the “Grantors”) in favor of
U.S. Bank National Association, as collateral agent (in such capacity, the “Collateral Agent”) for the Noteholders
(as defined in the Security Agreement referred to below).

 

WHEREAS, the Grantors
have guaranteed the Notes issued under the Indenture, dated as of February 12, 2013 (as amended, supplemented, or otherwise modified
from time to time, the “Indenture”) among Vector Group Ltd. (the “Issuer”), the Grantors
and certain of the Issuer’s other direct and indirect subsidiaries and the Collateral Agent, in its capacity as trustee thereunder.

 

WHEREAS, it is a condition
precedent to the obligations of the Collateral Agent under the Indenture that the Grantors shall have executed and delivered that
certain Security Agreement, dated as of February 12, 2013, in favor of the Collateral Agent (as amended, supplemented, replaced
or otherwise modified from time to time, the “Security Agreement”).

 

WHEREAS, under the
terms of the Security Agreement, the Grantors have granted a security interest in certain Property, including, without limitation,
certain Intellectual Property of the Grantors to the Collateral Agent for the ratable benefit of the Noteholders, and have agreed
as a condition thereof to execute this Agreement for recording with the United States Patent and Trademark Office and other applicable
Governmental Authorities.

 

WHEREAS, this Agreement
is supplemental to the provisions contained in the Security Agreement and, in the event of an inconsistency among them, the Security
Agreement shall control over this Agreement.

 

NOW, THEREFORE, for
good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Grantors agree as follows:

 

1.

DEFINITIONS.

 

1.1           Terms
Defined in the Security Agreement. All capitalized terms used in this Agreement and not otherwise defined herein shall have
the meanings assigned to them in the Security Agreement.

 

    	 

    	 

    

 

1.2           Certain
Defined Terms. As used in this Agreement, the following terms shall have the following meanings:

“Assignment
of Marks” has the meaning set forth in Section 2.2 herein.

 

“PTO”
means the United States Patent and Trademark Office.

 

“Trademark
Collateral” has the meaning set forth in Section 2.1 herein.

 

1.3           Rules
of Construction. Unless otherwise provided herein, the rules of construction set forth in Section 1.2 of the Security
Agreement shall be applicable to this Agreement.

 

2.

grant
of SECURITY INTEREST.

 

2.1           Security
Interest. As collateral security for the payment and performance in full of all of the Secured Liabilities, each Grantor hereby
pledges and grants to the Collateral Agent, for the benefit of the Collateral Agent and the ratable benefit of the Noteholders,
a continuing security interest in and lien on all of such Grantor’s rights, title and interests in all Trademarks, Trademark
Licenses, Trade Secrets and Trade Secret Licenses, including the Trademarks, Trademark Licenses and Trade Secret Licenses referred
to on Schedule A hereto (as such schedule may be amended or supplemented from time to time), in each case whether now or
hereafter existing or arising or in which such Grantor now has or hereafter owns, acquires or develops an interest and wherever
located (collectively, the “Trademark Collateral”).

 

2.2           Assignment
of Trademarks upon Default. Each Grantor acknowledges that the Collateral Agent has the right, pursuant to the power of attorney
granted the Collateral Agent hereunder and under the Security Agreement, upon the occurrence and during the continuance of an Event
of Default, to execute on behalf of such Grantor an assignment of Trademarks that constitute Trademark Collateral in substantially
the form of Annex 1 hereto (each an “Assignment of Trademarks”) for the sole purpose of effecting the
Collateral Agent’s exercise of its remedies under Section 8 of the Security Agreement. In furtherance of the foregoing, the
Grantor hereby authorizes the Collateral Agent to complete, execute and record with the PTO an Assignment of Trademarks on behalf
of such Grantor upon the occurrence and during the continuance of an Event of Default for the sole purpose of effecting the Collateral
Agent’s exercise of its remedies under Section 8 of the Security Agreement.

 

2.3           Conditional
Assignment. In addition to, and not by way of limitation of, the grant and pledge of the Trademark Collateral provided in Section 2.1,
each Grantor grants, assigns, transfers, conveys and sets over to the Collateral Agent, for the benefit of the Noteholders, such
Grantor’s entire right, title and interest in and to the Trademark Collateral; provided, that such grant, assignment,
transfer and conveyance shall be and become of force and effect only (a) in connection with the Collateral Agent’s exercise
of its rights and remedies in strict accordance with the terms of the Security Agreement, and (b) upon or after the occurrence
and during the continuance of an Event of Default and (c) either (i) upon the written demand of the Collateral Agent at any time
during such continuance or (ii) immediately and automatically (without notice or action of any kind by the Collateral Agent) upon
an Event of Default for which acceleration of the payment of the Notes is automatic under the Indenture or upon the sale or other
disposition of or foreclosure upon the Collateral pursuant to the Security Agreement and applicable law (including the transfer
or other disposition of the Collateral by the Grantor to the Collateral Agent or its nominee in lieu of foreclosure).

 

    	 

    	 

    

 

2.4           Supplemental
to Security Agreement. Pursuant to the Security Agreement each Grantor has granted to the Collateral Agent, for the benefit
of the Noteholders, a continuing security interest in and lien on the Collateral (including the Trademark Collateral). The Security
Agreement, and all rights and interests of the Collateral Agent in and to the Collateral (including the Trademark Collateral) thereunder,
are hereby ratified and confirmed in all respects. In no event shall this Agreement, the grant, assignment, transfer and conveyance
of the Trademark Collateral hereunder, or the recordation of this Agreement (or any other document hereunder) with the PTO, adversely
affect or impair, in any way or to any extent, the Security Agreement, the security interest of the Collateral Agent in the Collateral
(including the Trademark Collateral) pursuant to the Security Agreement, the attachment and perfection of such security interest
under the UCC (including the security interest in the Trademark Collateral), or any present or future rights and interests of the
Collateral Agent in and to the Collateral under or in connection with the Security Agreement or the UCC. Any and all rights and
interests of the Collateral Agent in and to the Trademark Collateral (and any and all obligations of any Grantor with respect to
the Trademark Collateral) provided herein, or arising hereunder or in connection herewith, shall only supplement and be cumulative
and in addition to the rights and interests of the Collateral Agent (and the obligations of any Grantor) in, to or with respect
to the Collateral (including the Trademark Collateral) provided in or arising under or in connection with the Security Agreement
and shall not be in derogation thereof.

 

3.

AFTER-ACQUIRED
Trademarks, ETC.

 

3.1           After-acquired
Trademarks. If, after the execution of the Agreement and before the end of the Security Period, any Grantor shall obtain any
right, title or interest in or to any other or new Trademarks, Trademark Licenses, Trade Secrets or Trade Secret Licenses or become
entitled to the benefit of any Trademarks, Trademark Licenses, Trade Secrets or Trade Secret Licenses, the provisions of this Agreement
shall automatically apply thereto and such Grantor shall promptly provide to the Collateral Agent notice thereof in writing and
execute and deliver to the Collateral Agent such documents or instruments as the Collateral Agent may reasonably request further
to implement, preserve or evidence the Collateral Agent’s interest therein.

 

    	 

    	 

    

 

3.2           Amendment
to Schedule. The Grantor authorizes the Collateral Agent to modify this Agreement and the Assignments of Trademarks, without
the necessity of such Grantor’s further approval or signature, by amending Schedule A hereto and the Annex to each Assignment
of Trademarks to include any future or other Trademarks, Trademark Licenses, Trade Secrets or Trade Secret Licenses that become
part of the Trademark Collateral under Section 2 or Section 3.1.

 

4.

Governing
Law; CONSENT TO JURISDICTION.

 

This Agreement,
the relationship between the parties hereunder and any claim or dispute (whether sounding in contract, tort, statute or otherwise)
relating to this Agreement or that relationship shall be governed by and construed in accordance with law of the State of New York
including section 5-1401 of the New York General Obligations Law but excluding any other conflict of law rules that would lead
to the application of the law of another jurisdiction. If the law of a jurisdiction other than New York is, under section 1-105(2)
of the UCC, mandatorily applicable to the perfection, priority or enforcement of any security interest granted under this Agreement
in respect of any Trademark Collateral, that other law shall apply solely to the matters of perfection, priority or enforcement
to which it is mandatorily applicable.

 

5.

miscellaneous.

 

(a)          Headings.
The headings of each section of this Agreement are for convenience only and shall not define or limit the provisions thereof. This
Agreement and all rights and obligations hereunder shall be binding upon the Grantor and its respective successors and assigns,
and shall inure to the benefit of the Collateral Agent, the Noteholders and their respective successors and assigns. If any term
of this Agreement shall be held to be invalid, illegal or unenforceable, the validity of all other terms hereof shall in no way
be affected thereby, and this Agreement shall be construed and be enforceable as if such invalid, illegal or unenforceable term
had not been included herein. The Grantor acknowledges receipt of a copy of this Agreement.

 

(b)          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.

 

[Signatures begin on next page]

 

    	 

    	 

    

 

IN WITNESS WHEREOF,
this Trademark Security and Pledge Agreement has been executed and delivered by its duly authorized officer as of the day and year
first above written.

 

	 	[                             ], as Grantor
	 	 	 	 
	 	By:	 
	 	 	Name:	 
	 	 	Title:	 
	 	 	 	 
	 	[                             ], as Grantor
	 	 	 	 
	 	By:	 
	 	 	Name:	 
	 	 	Title:	 
	 	 	 	 
	 	U.S. Bank National Association, as Collateral Agent
	 	 	 	 
	 	By:	 
	 	 	Name:	 
	 	 	Title:	 

 

    	 

    	 

    
 

Schedule
A

to the
Trademark Security and Pledge Agreement

 

(to
be completed by the Grantor)

 

Grantor: [                             ]

 

United States Trademark Registrations
of [_______]

 

	Trademark 	
        Registration No./

        Application No.
	
        Registration Date/

        Application Date

	 	 	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 

 

    	 

    	 

    

 

Grantor: [                             ]

 

United States Trademark Registrations
of [                   ]

 

	Trademark 	
        Registration No./

        Application No.
	
        Registration Date/

        Application Date

	 	 	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 

 

    	 

    	 

    

 

ANNEX 1

ASSIGNMENT OF TRADEMARKS

 

WHEREAS, ____________________,
a ________________ organized and existing under the laws of the State of _________________, having a place of business at ________________
(the “Assignor”), has adopted and used and is using the trademarks (the “Trademarks”) identified
on the Annex hereto, and is the owner of such Patents; and

 

WHEREAS, U.S.
Bank National Association, having a place of business at 60 Livingston Avenue, EP-MN-WS3C, St. Paul, Minnesota 55107-2292 (the
“Assignee”), is desirous of acquiring the Trademarks;

 

WHEREAS, the
Assignor and the Assignee have entered into that certain Trademark Security and Pledge Agreement, dated as of ____________ __,
20____ (as may be amended, Trademark Collateral Agreement”). Capitalized terms used and not defined herein have the
meanings given such terms in the Trademark Collateral Agreement;

 

NOW, THEREFORE,
for good and valuable consideration, receipt of which is hereby acknowledged, the Assignor does hereby assign, sell and transfer
unto the Assignee all right, title and interest in and to the Trademarks, together with (i) the Trademarks, Trademark Licenses
and Trade Secret Licenses identified on the Annex attached hereto and incorporated herein by reference, (ii) the goodwill of the
business symbolized by and associated with the Trademarks, and (iii) the right to sue and recover for, and the right to profits
or damages due or accrued arising out of or in connection with, any and all past, present or future infringements of or damage
or injury to the Trademarks or such associated goodwill.

 

This Assignment of
Trademarks is intended to and shall take effect at such time as the Assignee shall complete this instrument by signing its acceptance
of this Assignment of Trademarks below.

 

IN WITNESS WHEREOF,
the Assignor, by its duly authorized officer, has executed this assignment, , on this __ day of ________, 20__.

 

	 	[__________________________]
	 	 	 
	 	By:	 
	 	 	Name:	 
	 	 	Title:	 

 

The foregoing assignment
of the Trademarks by the Assignor to the Assignee is hereby accepted as of the ___ day of ________, 20__.

 

    	 

    	 

    

 

	 	U.S. Bank National Association
	 	 	 
	 	By:	 
	 	 	Name:	 
	 	 	Title:	 

 

COMMONWEALTH OR STATE OF ___________________)

) ss.

COUNTY OF ______________________________________

 

On this the ___ day
of ______, 20__, before me appeared _________, the person who signed this instrument, who acknowledged that (s)he is the __________
of ___________________, and that being duly authorized (s)he signed such instrument as a free act on behalf of ___________________________.

 

	 	 
	 	Notary Public
	[Seal]	 
	 	My commission expires:

 

    	 

    	 

    

 

ANNEX

 

U.S. TRADEMARK REGISTRATIONS AND APPLICATIONS

 

	Title
	App.
                                                                                                                                                                                                                           No.

        Filing Date
	Reg.
                                                                                                                                                                                                                           No.

        Issue Date
	Security
                                                                                                                                                                                                                           Interest

	 	 	 	 
	 	 	 	 
	 	 	 	 
	 	 	 	 

 

    	 

    	 

    

 

EXHIBIT 3

 

Form of Copyright Security
Agreement

 

(see attached)

 

    	 

    	 

    

 

FORM OF COPYRIGHT SECURITY AGREEMENT

 

This COPYRIGHT SECURITY
AGREEMENT, dated as of [            ], 2013 (as amended, restated,
amended and restated or otherwise modified, this “Agreement”), is made by [ ], a [ ] [corporation] [limited
liability company] (the “Grantor”) in favor of U.S. Bank National Association, as collateral agent (in such
capacity, the “Collateral Agent”) for the Noteholders (as defined in the Security Agreement referred to below).

 

WHEREAS, the Grantor
has guaranteed the Notes issued under the Indenture, dated as of February 12, 2013 (as amended, supplemented, or otherwise modified
from time to time, the “Indenture”) among Vector Group Ltd. (the “Issuer”), the Grantor and
certain of the Issuer’s other direct and indirect subsidiaries and the Collateral Agent, in its capacity as trustee thereunder.

 

WHEREAS, it is a condition
precedent to the obligations of the Collateral Agent under the Indenture that the Grantor shall have executed and delivered that
certain Security Agreement, dated as of February 12, 2013, in favor of the Collateral Agent (as amended, supplemented, replaced
or otherwise modified from time to time, the “Security Agreement”).

 

WHEREAS, under the
terms of the Security Agreement, the Grantor has granted a security interest in certain Property, including, without limitation,
certain Intellectual Property of the Grantor to the Collateral Agent for the ratable benefit of the Noteholders, and have agreed
as a condition thereof to execute this Agreement for recording with the United States Copyright Office and other applicable Governmental
Authorities.

 

WHEREAS, this Agreement
is supplemental to the provisions contained in the Security Agreement and, in the event of an inconsistency among them, the Security
Agreement shall control over this Agreement.

 

NOW, THEREFORE, for
good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Grantor agrees as follows:

 

SECTION 1.Defined
Terms. Unless otherwise defined herein, terms defined in the Security Agreement and used herein have the meaning given to them
in the Security Agreement.

 

“Assignment of Copyrights”
has the meaning set forth in Section 2.2 herein.

 

“Copyright Collateral”
has the meaning set forth in Section 2.1 herein.

 

    	8

    	 

    

 

SECTION 2.

 

2.1           Grant
of Security Interest in Copyright Collateral. Each Grantor hereby pledges and grants to Collateral Agent, for the benefit of
the Noteholders, a security interest in all of such Grantor’s right, title and interest in, to and under the Copyrights and
Copyright Licenses, including the Copyrights and Copyright Licenses referred to on Schedule I hereto, whether presently
existing or hereafter created or acquired (collectively, the “Copyright Collateral”).

 

2.2           Assignment
of Copyrights upon Default. Each Grantor acknowledges that the Collateral Agent has the right, pursuant to the power of attorney
granted the Collateral Agent hereunder and under the Security Agreement, upon the occurrence and during the continuance of an Event
of Default, to execute on behalf of such Grantor an assignment of Copyrights and Copyright Licenses that constitute Copyright Collateral
in substantially the form of Annex 1 hereto (each an “Assignment of Copyrights”) for the sole purpose
of effecting the Collateral Agent’s exercise of its remedies under Section 8 of the Security Agreement. In furtherance of
the foregoing, each Grantor hereby authorizes the Collateral Agent to complete, execute and record with the United States Copyright
Office an Assignment of Copyrights on behalf of such Grantor upon the occurrence and during the continuance of an Event of Default
for the sole purpose of effecting the Collateral Agent’s exercise of its remedies under Section 8 of the Security Agreement.

 

SECTION 3.          Security
Agreement. The security interest granted pursuant to this Agreement is granted in conjunction with the security interest granted
to the Collateral Agent for the Noteholders pursuant to the Security Agreement and Grantors hereby acknowledge and affirm that
the rights and remedies of the Collateral Agent with respect to the security interest in the Copyright Collateral made and granted
hereby are more fully set forth in the Security Agreement, the terms and provisions of which are incorporated by reference herein
as if fully set forth herein. In the event that any provision of this Agreement is deemed to conflict with the Security Agreement,
the provisions of the Security Agreement shall control.

 

SECTION 4.          After-Acquired
Copyrights. If, after the execution of the Agreement and before the end of the Security
Period, the Grantor shall obtain any right, title or interest in or to any other or new Copyrights or Copyright Licenses or become
entitled to the benefit of any Copyrights or Copyright Licenses, the provisions of this Agreement shall automatically apply thereto
and such Grantor shall promptly provide to the Collateral Agent notice thereof in writing and execute and deliver to the Collateral
Agent such documents or instruments as the Collateral Agent may reasonably request further to implement, preserve or evidence
the Collateral Agent’s interest therein.

  

    	9

    	 

    

 

SECTION 5.          MISCELLANEOUS

 

5.1           Applicable
Law. This Agreement, the relationship between the parties hereunder and any claim or dispute (whether sounding in contract,
tort, statute or otherwise) relating to this Agreement or that relationship shall be governed by and construed in accordance with
law of the State of New York including section 5-1401 of the New York General Obligations Law but excluding any other conflict
of law rules that would lead to the application of the law of another jurisdiction. If the law of a jurisdiction other than New
York is, under section 1-105(2) of the UCC, mandatorily applicable to the perfection, priority or enforcement of any security interest
granted under this Agreement in respect of any Copyright Collateral, that other law shall apply solely to the matters of perfection,
priority or enforcement to which it is mandatorily applicable.

 

5.2           Amendment
to Schedule. The Grantor authorizes the Collateral Agent to modify this Agreement, without the necessity of such Grantor’s
further approval or signature, by amending Schedule A hereto and the Annex to each Assignment of Copyrights to include any future
or other Copyrights or Copyright Licenses that become part of the Copyright Collateral under Section 2 or Section 4.

 

SECTION 6.          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.

 

[Remainder of page intentionally left
blank]

 

    	10

    	 

    

 

IN WITNESS WHEREOF, each
Grantor has caused this Copyright Security Agreement to be executed and delivered by its duly authorized officer as of the date
first set forth above.

 

	 	[                      ],
	 	as Grantor
	 	 
	 	By:	 
	 	 	Name:	 
	 	 	Title:	 
	 	 	 	 
	 	U.S. Bank National Association,
	 	as Collateral Agent
	 	 	 	 
	 	By:	 
	 	 	Name:	 
	 	 	Title:	 

 

    	 

    	 

    
 

SCHEDULE I

to

COPYRIGHT SECURITY AGREEMENT

 

COPYRIGHT REGISTRATIONS AND APPLICATIONS

 

Registrations

 

	Registration No.	Registration Date	Title
	 	 	 

 

Applications

 

	Application No.	Application Date	Title
	 	 	 

 

    	 

    	 

    
 

ANNEX 1

ASSIGNMENT OF COPYRIGHTS

 

WHEREAS, ____________________,
a ________________ organized and existing under the laws of the State of _________________, having a place of business at ________________
(the “Assignor”), has adopted and used and is using the copyrights (the “Copyrights”) identified
on the Annex hereto, and is the owner of such Copyrights; and

 

WHEREAS, U.S.
Bank National Association, having a place of business at 60 Livingston Avenue, EP-MN-WS3C, St. Paul, Minnesota 55107-2292 (the
“Assignee”), is desirous of acquiring the Copyrights;

 

WHEREAS, the
Assignor and the Assignee have entered into that certain Copyright Security Agreement, dated as of ____________ __, 20____ (as
may be amended, Copyright Security Agreement”). Capitalized terms used and not defined herein have the meanings given
such terms in the Copyright Security Agreement;

 

NOW, THEREFORE,
for good and valuable consideration, receipt of which is hereby acknowledged, the Assignor does hereby assign, sell and transfer
unto the Assignee all right, title and interest in and to the Copyrights and Copyright Licenses, including the Copyrights and Copyright
Licenses identified on the Annex attached hereto and incorporated herein by reference.

 

This Assignment of
Copyrights is intended to and shall take effect at such time as the Assignee shall complete this instrument by signing its acceptance
of this Assignment of Copyrights below.

 

IN WITNESS WHEREOF,
the Assignor, by its duly authorized officer, has executed this assignment, , on this __ day of ________, 20__.

 

	 	[__________________________]
	 	 	 	 
	 	By:	 
	 	 	Name:	 
	 	 	Title:	 

  

The foregoing assignment
of the Copyrights by the Assignor to the Assignee is hereby accepted as of the ___ day of ________, 20__.

 

    	 

    	 

    

 

	 	U.S. Bank National Association
	 	 	 	 
	 	By:	 
	 	 	Name:	 
	 	 	Title:	 

 

COMMONWEALTH OR STATE OF ___________________)

) ss.

COUNTY OF ______________________________________

 

On this the ___ day
of ______, 20__, before me appeared _________, the person who signed this instrument, who acknowledged that (s)he is the __________
of ___________________, and that being duly authorized (s)he signed such instrument as a free act on behalf of ___________________________.

 

	 	 
	 	Notary Public
	[Seal]	 
	 	My commission expires:

 

    	 

    	 

    

ANNEX

 

COPYRIGHT REGISTRATIONS AND APPLICATIONS

 

	Title
	App.
                                                                                                                                                                                 No.

        Filing Date
	Reg.
                                                                                                                                                                                 No.

        Issue Date
	Security
                                                                                                                                                                                 InterestINTERCREDITOR AND LIEN SUBORDINATION
AGREEMENT

 

among

 

WELLS FARGO BANK, NATIONAL ASSOCIATION,

 

as ABL Lender

 

and

 

U.S. BANK NATIONAL ASSOCIATION,

as Collateral Agent

 

and

 

LIGGETT GROUP LLC,

as Borrower

 

and

 

100 MAPLE LLC,

as Loan Party

 

    	 

    	 

    

 

Table
of Contents

 

	 	 	Page
	 	 	 
	Section 1.	DEFINITIONS; INTERPRETATION	2
	 	 	 
	1.1	Definitions	2
	 	 	 
	1.2	Terms Generally	8
	 	 	 
	Section 2.	LIEN PRIORITIES	8
	 	 	 
	2.1	Subordination	8
	 	 	 
	2.2	Prohibition on Contesting Liens	9
	 	 	 
	2.3	No New Liens	9
	 	 	 
	2.4	Similar Liens and Agreements	9
	 	 	 
	Section 3.	ENFORCEMENT	10
	 	 	 
	3.1	Exercise of Rights and Remedies	10
	 	 	 
	3.2	Rights As Unsecured Creditors	12
	 	 	 
	3.3	Release of Liens on ABL Collateral	12
	 	 	 
	3.4	Insurance and Condemnation Awards	14
	 	 	 
	Section 4.	PAYMENTS	15
	 	 	 
	4.1	Application of Proceeds	15
	 	 	 
	4.2	Payments Over	16
	 	 	 
	Section 5.	BAILEE FOR PERFECTION	16
	 	 	 
	5.1	Each Lender as Bailee	16
	 	 	 
	5.2	Transfer of Pledged ABL Collateral	17
	 	 	 
	Section 6.	INSOLVENCY OR LIQUIDATION PROCEEDINGS	18
	 	 	 
	6.1	General Applicability	18
	 	 	 
	6.2	Bankruptcy Financing	18
	 	 	 
	6.3	Relief from the Automatic Stay	19
	 	 	 
	6.4	Adequate Protection	19
	 	 	 
	6.5	Reorganization Securities	20
	 	 	 
	6.6	Separate Classes	20
	 	 	 
	6.7	Asset Dispositions	20
	 	 	 
	6.8	Preference Issues	21
	 	 	 
	6.9	Certain Waivers as to Section 1111(b)(2) of Bankruptcy Code	21
	 	 	 
	6.10	Other Bankruptcy Laws	21

  

    	(i)

    	 

    

 

	Section 7.	NOTEHOLDER SECURED PARTIES’ PURCHASE OPTION	21
	 	 	 
	7.1	Exercise of Option	21
	 	 	 
	7.2	Purchase and Sale	22
	 	 	 
	7.3	Payment of Purchase Price	22
	 	 	 
	7.4	Representations Upon Purchase and Sale	23
	 	 	 
	7.5	Notice from ABL Lender Prior to Lien Enforcement Action	23
	 	 	 
	Section 8.	RELIANCE; WAIVERS; ETC	23
	 	 	 
	8.1	Reliance	23
	 	 	 
	8.2	No Warranties or Liability	24
	 	 	 
	8.3	No Waiver of Lien Priorities	24
	 	 	 
	Section 9.	MISCELLANEOUS	26
	 	 	 
	9.1	Conflicts	26
	 	 	 
	9.2	Continuing Nature of this Intercreditor Agreement; Severability	26
	 	 	 
	9.3	When Discharge of ABL Debt Deemed to Not Have Occurred	26
	 	 	 
	9.4	Amendments to Noteholder Documents	27
	 	 	 
	9.5	Amendments; Waivers	27
	 	 	 
	9.6	Subrogation; Marshalling	27
	 	 	 
	9.7	Consent to Jurisdiction; Waivers	27
	 	 	 
	9.8	Notices	28
	 	 	 
	9.9	Further Assurances	29
	 	 	 
	9.10	Consent to Jurisdiction; Waiver of Jury Trial	29
	 	 	 
	9.11	Governing Law	29
	 	 	 
	9.12	Binding on Successors and Assigns	29
	 	 	 
	9.13	Specific Performance	29
	 	 	 
	9.14	Section Titles; Time Periods	29
	 	 	 
	9.15	Counterparts	29
	 	 	 
	9.16	Authorization	29
	 	 	 
	9.17	No Third Party Beneficiaries	30

 

    	(ii)

    	 

    

  

INTERCREDITOR AND LIEN SUBORDINATION
AGREEMENT

 

INTERCREDITOR AND LIEN SUBORDINATION AGREEMENT,
dated as of February 12, 2013 (this “Intercreditor Agreement” as hereinafter further defined), among Wells Fargo
Bank, National Association (the “ABL Lender” as hereinafter further defined), for itself and on behalf of the
other ABL Secured Parties (as hereinafter defined), U.S. Bank National Association, in its capacity as collateral agent for the
Noteholder Secured Parties (in such capacity, “Collateral Agent” as hereinafter further defined), Liggett Group
LLC, a Delaware limited liability company, as successor to Liggett Group Inc., and 100 Maple LLC, a Delaware limited liability
company (“Maple”).

 

WITNESSETH:

 

WHEREAS, Borrower and the other ABL Loan
Parties (each as hereinafter defined) have entered into a secured revolving credit facility with ABL Lender as set forth in the
ABL Loan Agreement (as hereinafter defined) pursuant to which ABL Lender has made and from time to time may make loans and provide
other financial accommodations to Borrower and secured by the ABL Collateral (as hereinafter defined);

 

WHEREAS, pursuant to an Indenture dated
as of February 12, 2013, among Vector Group Ltd. (the “Issuer”), certain of its direct and indirect subsidiaries
(including the Borrower) (the Issuer and such subsidiaries being referred to as the “Indenture Loan Parties”)
and U.S. Bank National Association, in its capacity as trustee thereunder (in such capacity, “Indenture Trustee,”
as hereinafter further defined) (as amended, supplemented, amended and restated or otherwise modified and in effect from time to
time, the “Noteholder Agreement”), the Issuer intends to issue its 7.750% Senior Secured Notes due 2021 (including
any related exchange notes and any additional notes issued pursuant to the Noteholder Agreement), in an initial aggregate principal
amount of $450.0 million, which will be guaranteed by, among others, Borrower, Maple and certain other direct and indirect subsidiaries
of the Issuer, and secured by certain security interests in and pledges of certain assets and properties, including assets and
properties of the Indenture Loan Parties;

 

WHEREAS, ABL Lender, on its own behalf and
on behalf of the other ABL Secured Parties, and Collateral Agent, on its own behalf and on behalf of the Noteholder Secured Parties,
desire to enter into this Intercreditor Agreement to (i) confirm the relative priority of the security interests of ABL Secured
Parties and Noteholder Secured Parties in the ABL Collateral, (ii) provide for the orderly sharing among them, in accordance
with such priorities, of proceeds of such ABL Collateral upon any foreclosure thereon or other disposition thereof and (iii) address
related matters;

 

NOW, THEREFORE, in consideration of the
foregoing, the mutual covenants and obligations herein set forth and for other good and valuable consideration, the sufficiency
and receipt of which are hereby acknowledged, the parties hereto, intending to be legally bound, hereby agree as follows:

 

    	 

    	 

    

  

Section
1. DEFINITIONS; INTERPRETATION.

 

1.1  Definitions. As used in this
Intercreditor Agreement, the following terms have the meanings specified below:

 

“ABL Collateral” shall
mean any and all of the assets and properties of the ABL Loan Parties as set forth on Schedule A hereto. All capitalized terms
used on Schedule A hereto and not defined elsewhere in this Intercreditor Agreement shall have the meanings assigned to them in
the ABL Loan Agreement.

 

“ABL Debt” shall mean
all “Obligations” as such term is defined in the ABL Loan Agreement, including, without limitation, obligations, liabilities
and indebtedness of every kind, nature and description owing by any ABL Loan Party to any ABL Secured Party, including principal,
interest, charges, fees, premiums, indemnities and expenses, however evidenced, whether as principal, surety, endorser, guarantor
or otherwise, arising under any of the ABL Documents, whether now existing or hereafter arising, whether arising before, during
or after the initial or any renewal term of the ABL Documents or after the commencement of any case with respect to any ABL Loan
Party under the Bankruptcy Code or any other Insolvency or Liquidation Proceeding (and including, without limitation, any principal,
interest, fees, costs, expenses and other amounts, which would accrue and become due but for the commencement of such case, whether
or not such amounts are allowed or allowable in whole or in part in such case or similar proceeding), whether direct or indirect,
absolute or contingent, joint or several, due or not due, primary or secondary, liquidated or unliquidated, secured or unsecured.

 

“ABL Documents” shall
mean, collectively, the ABL Loan Agreement and all agreements, documents and instruments at any time executed and/or delivered
by any ABL Loan Party to, with or in favor of any ABL Secured Party in connection therewith, as all of the foregoing now exist
or may hereafter be amended, modified, supplemented, extended, renewed, restated, refinanced, replaced or restructured (in whole
or in part and including any agreements with, to or in favor of any other lender or group of lenders that at any time refinances,
replaces or succeeds to all or any portion of the ABL Debt) in accordance with the terms of this Intercreditor Agreement.

 

“ABL Event of Default”
shall mean any “Event of Default” as defined in the ABL Loan Agreement.

 

“ABL Lender” shall mean,
collectively, Wells Fargo Bank, National Association and any other lender or group of lenders that at any time refinances, replaces
or succeeds to all or any portion of the ABL Debt or is otherwise party to the ABL Documents as a lender in accordance with the
terms of this Intercreditor Agreement.

 

“ABL Loan Agreement”
shall mean the Second Amended and Restated Loan and Security Agreement, dated as of February 21, 2012, by and among Borrower, the
other ABL Loan Parties and ABL Lender, as the same now exists or may hereafter be amended, modified, supplemented, extended, renewed,
restated or replaced in accordance with the terms of this Intercreditor Agreement.

 

    	2

    	 

    

 

“ABL Loan Parties” shall
mean, collectively, (a) Borrowers, (b) Maple and (c) their respective successors and permitted assigns; sometimes
being referred to herein individually as an “ABL Loan Party”.

 

“ABL Secured Parties”
shall mean, collectively, (a) the ABL Lender, (b) the issuing bank or banks of letters of credit or similar instruments
under the ABL Loan Agreement, (c) each other person to whom any of the ABL Debt (including ABL Debt constituting Bank Product
Obligations) is owed and (d) the successors, replacements and assigns of each of the foregoing; sometimes being referred to
herein individually as a “ABL Secured Party”.

 

“Bank Product Obligations”
shall mean Cash Management Obligations and Hedging Obligations.

 

“Bankruptcy Code” shall
mean the United States Bankruptcy Code, being Title 11 of the United States Code, as the same now exists or may from time
to time hereafter be amended, modified, recodified or supplemented.

 

“Bankruptcy Law” shall
mean the Bankruptcy Code and any similar Federal, state or foreign law for the relief of debtors.

 

“Borrowers” shall mean
collectively, (a) Liggett Group LLC, a Delaware limited liability company, as successor to Liggett Group, Inc., and (b) its
successors and assigns; sometimes being referred to herein individually as a “Borrower”.

 

“Business Day” shall
mean any day other than a Saturday, a Sunday or a day that is a legal holiday under the laws of the State of New York or on which
banking institutions in the State of New York are required or authorized by law or other governmental action to close.

 

“Cash Management Obligations”
shall mean, with respect to any ABL Borrower, the obligations of such ABL Borrower in connection with (a) credit cards or
(b) cash management or related services, including (i) the automated clearinghouse transfer of funds or overdrafts or
(ii) controlled disbursement services.

 

“Collateral Agent” shall
mean U.S. Bank National Association, in its capacity as Collateral Agent under the Noteholder Documents, and also includes any
successor, replacement or agent acting on its behalf as Collateral Agent for the Noteholder Secured Parties under the Noteholder
Documents.

 

“DIP Financing” shall
have the meaning set forth in Section 6.2.

 

“Discharge of ABL Debt”
shall mean (a) the termination or expiration of the commitments of ABL Lender and the financing arrangements provided by ABL
Lender to ABL Loan Parties under the ABL Documents, (b) except to the extent otherwise provided in Sections 4.1
and 4.2, the payment in full in cash of the ABL Debt (other than (i) the ABL Debt described in clause (c) of
this definition, (ii) contingent indemnification obligations as to which no claim has been made and (iii) obligations
under agreements with ABL Secured Parties which continue notwithstanding the termination of the commitments and repayment of the
ABL Debt described herein), and (c) payment in full in cash of cash collateral, or at ABL Lender’s option, the delivery
to ABL Lender of a letter of credit payable to ABL Lender, in either case as required under the terms of the ABL Loan Agreement,
in respect of letters of credit issued under the ABL Documents and Bank Product Obligations.

 

    	3

    	 

    

 

“Discharge of Priority Noteholder
Debt” shall mean, except to the extent otherwise provided in Sections 4.1 and 4.2, the final payment
in full in cash of the Noteholder Debt.

 

“Discharge of Priority Debt”
shall mean except to the extent otherwise provided in Sections 4.1 and 4.2, the final payment in full in cash
of the First Priority Debt (other than as described in the definition of Discharge of ABL Debt).

 

“Excess ABL Debt” means
ABL Debt which does not constitute First Priority Debt.

 

“First Priority Debt”
means ABL Debt to the extent it constitutes Maximum Priority ABL Debt.

 

“Hedging Obligations”
shall mean, with respect to any Person, the obligations of such Person under (a) interest rate swap agreements, interest rate
cap agreements and interest rate collar agreements and (b) other agreements or arrangements designed to protect such Person
against fluctuations in interest rates or the value of foreign currencies.

 

“Indenture Loan Parties”
has the meaning set forth in the preamble hereto.

 

“Insolvency or Liquidation Proceeding”
shall mean (a) any voluntary or involuntary case or proceeding under any Bankruptcy Law with respect to any ABL Loan Party,
(b) any other voluntary or involuntary insolvency, reorganization or bankruptcy case or proceeding, or any receivership, liquidation,
reorganization or other similar case or proceeding with respect to any ABL Loan Party or with respect to any of their respective
assets, (c) any proceeding seeking the appointment of any trustee, receiver, liquidator, custodian or other insolvency official
with similar powers with respect to such Person or any or all of its assets or properties, (d) any liquidation, dissolution,
reorganization or winding up of any ABL Loan Party whether voluntary or involuntary and whether or not involving insolvency or
bankruptcy or (e) any assignment for the benefit of creditors or any other marshalling of assets and liabilities of any ABL
Loan Party.

 

“Intercreditor Agreement”
shall mean this Intercreditor and Lien Subordination Agreement, as amended, renewed, extended, supplemented or otherwise modified
from time to time in accordance with the terms hereof.

 

“Lien” shall mean any
mortgage, deed of trust, pledge, hypothecation, assignment, deposit arrangement, security interest, encumbrance (including, but
not limited to, easements, rights of way and the like), lien (statutory or other), security agreement or transfer intended as security,
including without limitation, any conditional sale or other title retention agreement, the interest of a lessor under a capital
lease or any financing lease having substantially the same economic effect as any of the foregoing.

 

    	4

    	 

    

 

“Lien Enforcement Action”
shall mean (a) any action by any Secured Party to foreclose on the Lien of such Person in all or a material portion of the
ABL Collateral or exercise any right of repossession, levy, attachment, setoff or liquidation against all or a material portion
of the ABL Collateral, (b) any action by any Secured Party to take possession of, sell or otherwise realize (judicially or
non judicially) upon all or a material portion of the ABL Collateral (including, without limitation, by setoff), (c) any action
by any Secured Party to facilitate the possession of, sale of or realization upon all or a material portion of the ABL Collateral
including the solicitation of bids from third parties to conduct the liquidation of all or any material portion of the ABL Collateral,
the engagement or retention of sales brokers, marketing agents, investment bankers, accountants, auctioneers or other third parties
for the purpose of valuing, marketing, promoting or selling all or any material portion of the ABL Collateral, (d) the commencement
by any Secured Party of any legal proceedings against or with respect to all or a material portion of the ABL Collateral to facilitate
the actions described in (a) through (c) above, or (e) any action to seek or request relief from or modification
of the automatic stay or any other stay in any Insolvency or Liquidation Proceeding in respect of all or a material portion of
the ABL Collateral, or any proceeds thereof. For the purposes hereof, (i) the notification of account debtors to make payments
to ABL Lender shall constitute a Lien Enforcement Action if and only if such action is coupled with an action to take possession
of all or a material portion of the ABL Collateral or the commencement of any legal proceedings or actions against or with respect
to ABL Loan Parties of all or a material portion of the ABL Collateral, and (ii) a material portion of the ABL Collateral
shall mean ABL Collateral having a value in excess of $10,000,000.

 

“Maximum Priority ABL Debt”
shall mean, as of any date of determination, (a) principal of the ABL Debt (including undrawn amounts under any letters of
credit issued under the ABL Documents) up to $65,000,000 in the aggregate at any one time outstanding, plus (b) any interest
on such amount (and including, without limitation, any interest which would accrue and become due but for the commencement of Insolvency
or Liquidation Proceeding, whether or not such amounts are allowed or allowable in whole or in part in such case or similar proceeding),
plus (c) the Maximum Priority Cash Management Obligations, plus (d) the Maximum Priority Hedging Obligations, plus (e) any
fees, costs, expenses and indemnities payable under any of the ABL Documents (and including, without limitation, any fees, costs,
expenses and indemnities which would accrue and become due but for the commencement of Insolvency or Liquidation Proceeding, whether
or not such amounts are allowed or allowable in whole or in part in such case or similar proceeding) minus (f) the amount
of all permanent reductions in the commitments under the ABL Documents and minus (g) the amount of all permanent repayments
of ABL Debt to the extent such repayments result in a reduction of the commitments under the ABL Documents.

 

“Maximum Priority Cash Management
Obligations” shall mean, as of any date of determination, the amount of the ABL Debt constituting Cash Management Obligations
outstanding on such date, up to $5,000,000 in the aggregate at any one time outstanding.

 

“Maximum Priority Hedging Obligations”
shall mean, as of any date of determination, the amount of the ABL Debt constituting Hedging Obligations outstanding on such date,
up to $5,000,000 in the aggregate at any one time outstanding.

 

“Noteholder Agreement”
shall mean the Indenture, dated as of February 12, 2013, by and among Vector Group, Ltd., the Indenture Loan Parties and the Noteholder
Trustee, as the same now exists or may hereafter be amended, modified, supplemented, extended, renewed, restated or replaced.

 

    	5

    	 

    

 

“Noteholder Debt” shall
mean all “Obligations” as such term is defined in the Noteholder Agreement, including, without limitation, obligations,
liabilities and indebtedness of every kind, nature and description owing by any Indenture Loan Party to any Noteholder Secured
Party, including principal, interest, charges, fees, premiums, indemnities and expenses, however evidenced, whether as principal,
surety, endorser, guarantor or otherwise, arising under any of the Noteholder Documents, whether now existing or hereafter arising,
whether arising before, during or after the initial or any renewal term of the Noteholder Documents or after the commencement of
any case with respect to any Indenture Loan Party under the Bankruptcy Code or any other Insolvency or Liquidation Proceeding (and
including, without limitation, any principal, interest, fees, costs, expenses and other amounts, which would accrue and become
due but for the commencement of such case, whether or not such amounts are allowed or allowable in whole or in part in such case
or similar proceeding), whether direct or indirect, absolute or contingent, joint or several, due or not due, primary or secondary,
liquidated or unliquidated, secured or unsecured.

 

“Noteholder Default”
shall mean any “Event of Default” as defined in the Noteholder Agreement.

 

“Noteholder Documents”
shall mean, collectively, the Noteholder Agreement and all agreements, documents and instruments at any time executed and/or delivered
by any Indenture Loan Party to, with or in favor of any Noteholder Secured Party in connection therewith, as all of the foregoing
now exist or may hereafter be amended, modified, supplemented, extended, renewed, restated, refinanced, replaced or restructured
(in whole or in part and including any agreements with, to or in favor of any other lender or group of lenders that at any time
refinances, replaces or succeeds to all or any portion of the Noteholder Debt).

 

“Noteholder Secured Parties”
shall mean, collectively, (a) the Noteholder Trustee, solely in its capacity as trustee under the Noteholder Agreement and
the other Noteholder Documents, (b) each holder of any Note or Notes, solely in its capacity as such holder, and each other
person to whom any of the Noteholder Debt is transferred or owed, solely in its capacity as such, (c) the Collateral Agent,
and (d) the successors, replacements and assigns of each of the foregoing; sometimes being referred to herein individually
as a “Noteholder Secured Party”.

 

“Noteholder Trustee”
shall mean U.S. Bank National Association, in its capacity as trustee under the Noteholder Agreement, and also includes any successor,
replacement or agent acting on its behalf as Noteholder Trustee for the Noteholder Secured Parties under the Noteholder Documents.

 

“Notes” shall mean any
notes issued pursuant to the Noteholder Agreement, whether issued pursuant to the initial offering or subsequently, including any
exchange notes and additional notes.

 

    	6

    	 

    

 

“Permitted Actions” shall
mean any of the following: (a) in any Insolvency or Liquidation Proceeding, filing a proof of claim or statement of interest
with respect to the Noteholder Debt or Excess ABL Debt, as the case may be; (b) taking any action to preserve or protect the
validity, enforceability, perfection or priority of the Liens securing the Noteholder Debt or the Excess ABL Debt, as the case
may be, provided that no such action is, or could reasonably be expected to be, (i) as to any action by any Noteholder Secured
Party, adverse to the Liens securing the First Priority Debt or the rights of the ABL Lender or any other ABL Secured Party to
exercise remedies in respect thereof to the extent not expressly prohibited by this Agreement, (ii) as to any action by any
ABL Secured Party, adverse to the Liens securing the Noteholder Debt or the rights of the Collateral Agent or any other Noteholder
Secured Party to exercise remedies in respect thereof to the extent not expressly prohibited by this Intercreditor Agreement, or
(iii) otherwise inconsistent with the terms of this Intercreditor Agreement, including the automatic release of Liens provided
in Section 3.3; (c) filing any responsive or defensive pleadings in opposition to any motion, claim, adversary
proceeding or other pleading made by any Person objecting to or otherwise seeking the disallowance of the claims of the Noteholder
Secured Parties or the claims of the ABL Secured Parties with respect to Excess ABL Debt, including any claims secured by the ABL
Collateral or otherwise making any agreements or filing any motions pertaining to the Noteholder Debt or Excess ABL Debt, in each
case, to the extent not inconsistent with the terms of this Intercreditor Agreement; (d) exercising rights and remedies as
unsecured creditors, as provided in Section 3.2; and (e) the enforcement by the Collateral Agent and the Noteholder
Secured Parties of any of their rights and exercise any of their remedies with respect to the ABL Collateral after the termination
of the Standstill Period (as defined in Section 3.1) or the enforcement by the ABL Lender or the ABL Secured Parties
of any of their rights and exercise of any of their remedies with respect to the ABL Collateral after Discharge of Priority Noteholder
Debt.

 

“Person” or “person”
shall mean any individual, sole proprietorship, partnership, corporation (including, without limitation, any corporation which
elects subchapter S status under the Internal Revenue Code of 1986, as amended), limited liability company, limited liability partnership,
business trust, unincorporated association, joint stock company, trust, joint venture, or other entity or any government or any
agency or instrumentality or political subdivision thereof.

 

“Pledged ABL Collateral”
shall have the meaning set forth in Section 5.1(a).

 

“Qualified Financier”
shall mean (a) a commercial bank organized under the laws of the United States, or any state thereof, and having total assets
in excess of $500,000,000, (b) a commercial bank organized under the laws of any other country which is a member of the Organization
for Economic Cooperation and Development or a political subdivision of any such country and which has total assets in excess of
$500,000,000; provided that such bank is acting through a branch or agency located in the United States, and (c) a commercial
finance company, insurance company or other financial institution that is engaged in making, purchasing or otherwise investing
in commercial loans in the ordinary course of its business and having total assets in excess of $500,000,000.

 

“Secured Parties” shall
mean, collectively, the ABL Secured Parties and the Noteholder Secured Parties.

 

    	7

    	 

    

 

“Subsidiary” means any
“Subsidiary” of Borrower as defined in the ABL Loan Agreement.

 

“Uniform Commercial Code”
or “UCC” means the Uniform Commercial Code as from time to time in effect in the State of New York.

 

1.2  Terms Generally. The definitions
of terms herein shall apply equally to the singular and plural forms of the terms defined. Whenever the context may require, any
pronoun shall include the corresponding masculine, feminine and neuter forms. The words “include”, “includes”
and “including” shall be deemed to be followed by the phrase “without limitation”. The word “will”
shall be construed to have the same meaning and effect as the word “shall”. Unless the context requires otherwise (a) any
definition of or reference to any agreement, instrument or other document herein shall be construed as referring to such agreement,
instrument or other document as from time to time amended, supplemented or otherwise modified, (b) any reference herein to
any Person shall be construed to include such Person’s successors and assigns, and as to any Borrower, any Guarantor or any
other ABL Loan Party shall be deemed to include a receiver, trustee or debtor-in-possession on behalf of any of such person or
on behalf of any such successor or assign, (c) the words “herein”, “hereof” and “hereunder”,
and words of similar import, shall be construed to refer to this Intercreditor Agreement in its entirety and not to any particular
provision hereof, (d) all references herein to Sections shall be construed to refer to Sections of this Intercreditor Agreement
and (e) 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, including cash, securities, accounts and contract rights.

 

Section
2. LIEN PRIORITIES.

 

2.1  Subordination. Notwithstanding
the date, manner or order of grant, attachment or perfection of any Liens granted to the ABL Lender or the ABL Secured Parties
or the Collateral Agent or the Noteholder Secured Parties and notwithstanding any provision of the UCC, or any applicable law or
any provisions of the ABL Documents or the Noteholder Documents or any other circumstance whatsoever:

 

(a)          The
Collateral Agent, for itself and on behalf of the other Noteholder Secured Parties, hereby agrees that: (i) any Lien on the
ABL Collateral securing the First Priority Debt now or hereafter held by or for the benefit or on behalf of any ABL Secured Party
or any agent or trustee therefor shall be senior in right, priority, operation, effect and in all other respects to any Lien on
the ABL Collateral securing the Noteholder Debt now or hereafter held by or for the benefit or on behalf of any Noteholder Secured
Party or any agent or trustee therefor; and (ii) any Lien on the ABL Collateral securing any of the Noteholder Debt now or
hereafter held by or for the benefit or on behalf of any Noteholder Secured Party or any agent or trustee therefor regardless of
how acquired, whether by grant, statute, operation of law, subrogation or otherwise, shall be junior and subordinate in all respects
to all Liens on the ABL Collateral securing any First Priority Debt.

 

    	8

    	 

    

 

 

(b)          The
ABL Lender, for itself and on behalf of the other ABL Secured Parties, hereby agrees that: (i) any Lien on the ABL Collateral
securing the Noteholder Debt now or hereafter held by or for the benefit or on behalf of any Noteholder Secured Party or any agent
or trustee therefor shall be senior in right, priority, operation, effect and in all other respects to any Lien on the ABL Collateral
securing the principal amount of Excess ABL Debt now or hereafter held by or for the benefit or on behalf of any ABL Secured Party
or any agent or trustee therefor; and (ii) any Lien on the ABL Collateral securing any Excess ABL Debt now or hereafter held
by or for the benefit or on behalf of any ABL Secured Party or any agent or trustee therefor regardless of how acquired, whether
by grant, statute, operation of law, subrogation or otherwise, shall be junior and subordinate in all respects to all Liens on
the ABL Collateral securing any Noteholder Debt.

 

2.2  Prohibition on Contesting Liens.
Each of the ABL Lender, for itself and on behalf of the other ABL Secured Parties, and the Collateral Agent, for itself and on
behalf of the other Noteholder Secured Parties, agrees that it shall not (and hereby waives any right to) contest or support any
other Person in contesting, in any proceeding (including any Insolvency or Liquidation Proceeding involving any ABL Loan Party),
the perfection, priority, validity or enforceability of a Lien held by or for the benefit or on behalf of any ABL Secured Party
in any ABL Collateral or by or on behalf of any Noteholder Secured Party in any ABL Collateral, as the case may be; provided
that nothing in this Intercreditor Agreement shall be construed to prevent or impair the rights of any ABL Secured Party
or Noteholder Secured Party to enforce this Intercreditor Agreement, including the priority of the Liens as provided in Section 2.1.

 

2.3  No New Liens. So long as the
Discharge of Priority Debt has not occurred, none of the ABL Loan Parties shall grant any additional Liens on any assets to secure
the Noteholder Debt unless it has granted, or substantially concurrently therewith shall grant, a lien on such asset to secure
the ABL Debt or grant any additional Liens on any assets to secure the ABL Debt unless it has granted, or substantially concurrently
therewith shall grant, a Lien on such asset to secure the Noteholder Debt, all of which Liens shall be subject to the terms of
this Intercreditor Agreement. Further, the parties hereto agree that, after the Discharge of Priority Debt and so long as the Discharge
of Priority Noteholder Debt has not occurred, none of the ABL Loan Parties shall grant any additional Liens on any asset to secure
any Excess ABL Debt unless it has granted, or substantially concurrently therewith shall grant, a Lien on such asset to secure
the Noteholder Debt. To the extent that the provisions of this Section 2.3 are not complied with for any reason, without
limiting any other right or remedy available to the ABL Lender or any other ABL Secured Party or the Collateral Agent or any Noteholder
Secured Party, the Collateral Agent agrees, for itself and on behalf of the other Noteholder Secured Parties, and the ABL Lender
agrees, for itself and on behalf of the other ABL Secured Parties, that any amount received by or distributed to any Noteholder
Secured Party or any ABL Secured Party pursuant to or as a result of any Lien granted in contravention of this Section shall be
subject to Section 3 hereof.

 

2.4  Similar Liens and Agreements.
The parties hereto agree, subject to the other provisions of this Intercreditor Agreement, upon request by the ABL Lender or the
Collateral Agent, as the case may be, to advise the other from time to time of the ABL Collateral for which such party has taken
steps to perfect its Liens and to identify the parties obligated under the ABL Documents or Noteholder Documents, as the case may
be.

 

    	9

    	 

    

  

Section
3. ENFORCEMENT.

 

3.1  Exercise of Rights and Remedies.
(a) Until the Discharge of Priority Debt, the Collateral Agent, for itself and on behalf of the other Noteholder Secured Parties,
agrees that it:

 

(i)          will
not enforce or exercise, or seek to enforce or exercise, any rights or remedies (including any right of setoff or notification
of account debtors) with respect to any ABL Collateral (including the enforcement of any right under any lockbox agreement, account
control agreement, landlord waiver or bailee’s letter or any similar agreement or arrangement to which the Collateral Agent
or any other Noteholder Secured Party is a party) or commence or join with any Person (other than ABL Lender) in commencing, or
filing a petition for, any action or proceeding with respect to such rights or remedies with respect to the ABL Collateral (including
any foreclosure action or proceeding or any Insolvency or Liquidation Proceeding); provided, however, that (A) the
Collateral Agent and the Noteholder Secured Parties may take Permitted Actions, and (B) the Collateral Agent may exercise
any or all of such rights or remedies after a period of 180 days has elapsed since the date on which any ABL Secured Party has
commenced a Lien Enforcement Action and prior to or at the time of such exercise, the Collateral Agent shall have (1) declared
the existence of a Noteholder Default, (2) demanded the repayment of all the principal amount of the Noteholder Debt and (3) notified
the ABL Lender of such declaration of a Noteholder Default and demand (the “Standstill Period”); provided,
further, that, notwithstanding the expiration of the Standstill Period or anything herein to the contrary, in no
event shall the Collateral Agent or any other Noteholder Secured Party enforce or exercise any rights or remedies with respect
to any ABL Collateral, or commence or petition for any such action or proceeding (including any foreclosure action or proceeding
or any Insolvency or Liquidation Proceeding), at any time during which the ABL Lender or any other ABL Secured Party shall have
commenced and shall be pursuing diligently a Lien Enforcement Action;

 

(ii)         will
not contest, protest or object to any foreclosure action or proceeding brought by the ABL Lender or any other ABL Secured Party,
or any other enforcement or exercise by any ABL Secured Party of any rights or remedies relating to the ABL Collateral under the
ABL Documents, so long as the Liens of the Collateral Agent attach to the proceeds thereof subject to the relative priorities set
forth in Section 2.1 and such actions or proceedings are being pursued in good faith in accordance with applicable
law;

 

(iii)        subject
to the Noteholder Secured Parties’ rights under Section 3.1(a)(i), will not object to the forbearance by the
ABL Lender or the other ABL Secured Parties from commencing or pursuing any foreclosure action or proceeding or any other enforcement
or exercise of any rights or remedies with respect to any of the ABL Collateral;

 

(iv)        will
not except for actions permitted under Sections 3.1(a)(i), take or receive any ABL Collateral, or any proceeds thereof
or payment with respect thereto, in connection with the exercise of any right or remedy (including any right of setoff) with respect
to any ABL Collateral or in connection with any insurance policy award or any condemnation award (or deed in lieu of condemnation)
relating to the ABL Collateral;

 

    	10

    	 

    

 

 

(v)         will
not object to the manner in which the ABL Lender or any other ABL Secured Party may seek to enforce or collect the ABL Debt or
the Liens of such ABL Secured Party securing First Priority Debt, regardless of whether any action or failure to act by or on behalf
of the ABL Lender or any other ABL Secured Party is, or could be, adverse to the interests of the Noteholder Secured Parties, and
will not assert, and hereby waives, to the fullest extent permitted by law, any right to demand, request, plead or otherwise assert
or claim the benefit of any marshalling, appraisal, valuation or other similar right that may be available under applicable law
with respect to the ABL Collateral or any other rights a junior secured creditor may have under applicable law with respect to
the matters described in this clause (v), provided that at all times ABL Lender is acting in good faith in accordance with
applicable law; and

 

(vi)        will
not attempt, directly or indirectly, whether by judicial proceeding or otherwise, to challenge or question the validity or enforceability
of any First Priority Debt, any Lien of ABL Lender securing the First Priority Debt or this Intercreditor Agreement, or the validity
or enforceability of the priorities, rights or obligations established by this Intercreditor Agreement.

 

(b)          After
the Discharge of Priority Debt and until the Discharge of the Noteholder Debt has occurred, the ABL Lender, for itself and on behalf
of the other ABL Secured Parties, with respect to Excess ABL Debt agrees that it:

 

(i)          will
not, enforce or exercise, or seek to enforce or exercise, any rights or remedies (including any right of setoff or notification
of account debtors) with respect to any ABL Collateral (including the enforcement of any right under any lockbox agreement, account
control agreement, landlord waiver or bailee’s letter or any similar agreement or arrangement to which the ABL Lender or
any other ABL Secured Party is a party) or commence or join with any Person (other than Collateral Agent or Noteholder Secured
Parties) in commencing, or filing a petition for, any action or proceeding with respect to such rights or remedies with respect
to the ABL Collateral (including any foreclosure action or proceeding or any Insolvency or Liquidation Proceeding); provided,
however, that the ABL Lender and the ABL Secured Parties may take Permitted Actions;

 

(ii)         will
not contest, protest or object to any foreclosure action or proceeding brought by the Collateral Agent or any other Noteholder
Secured Party, or any other enforcement or exercise by any Noteholder Secured Party of any rights or remedies relating to the ABL
Collateral under the Noteholder Documents, so long as the Liens of ABL Secured Parties attach to the proceeds thereof subject to
the relative priorities set forth in Section 2.1 and such actions or proceedings are being pursued in good faith in
accordance with applicable law;

 

(iii)        subject
to the ABL Secured Parties’ rights under Section 3.1(b)(i), will not object to the forbearance by the Collateral
Agent or the other Noteholder Secured Parties from commencing or pursuing any foreclosure action or proceeding or any other enforcement
or exercise of any rights or remedies with respect to any of the ABL Collateral;

 

(iv)        will
not except for actions permitted under Sections 3.1(b)(i), take or receive any ABL Collateral, or any proceeds thereof
or payment with respect thereto, in connection with the exercise of any right or remedy (including any right of setoff) with respect
to any ABL Collateral or in connection with any insurance policy award or any condemnation award (or deed in lieu of condemnation)
relating to the ABL Collateral;

 

    	11

    	 

    

 

 

(v)         will
not object to the manner in which the Collateral Agent or any other Noteholder Secured Party may seek to enforce or collect the
Noteholder Debt or the Liens of such Noteholder Secured Party securing Noteholder Debt, regardless of whether any action or failure
to act by or on behalf of the Collateral Agent or any other Noteholder Secured Party is, or could be, adverse to the interests
of the ABL Secured Parties with respect to the Excess ABL Debt and Liens securing such Excess ABL Debt, and will not assert, and
hereby waive, to the fullest extent permitted by law, any right to demand, request, plead or otherwise assert or claim the benefit
of any marshalling, appraisal, valuation or other similar right that may be available under applicable law with respect to the
ABL Collateral or any other rights a junior secured creditor may have under applicable law with respect to the matters described
in this clause (v) in each case to the extent that the ABL Collateral secures Excess ABL Debt, provided that at all times
the Collateral Agent is acting in good faith in accordance with applicable law; and

 

(vi)        will
not attempt, directly or indirectly, whether by judicial proceeding or otherwise, to challenge or question the validity or enforceability
of any Noteholder Debt or any Lien of the Collateral Agent or the Noteholder Secured Parties securing the Noteholder Debt or this
Intercreditor Agreement, or the validity or enforceability of the priorities, rights or obligations established by this Intercreditor
Agreement.

 

3.2  Rights As Unsecured Creditors.
Notwithstanding anything to the contrary in this Intercreditor Agreement, the Collateral Agent and the other Noteholder Secured
Parties may exercise rights and remedies as an unsecured creditor against any ABL Loan Party in accordance with the terms of the
Noteholder Documents and applicable law. For purposes hereof, the rights of an unsecured creditor do not include the rights of
a creditor that holds a judgment lien to enforce such lien. Nothing in this Intercreditor Agreement shall prohibit the receipt
by the Collateral Agent or any other Noteholder Secured Parties of the payments of any Noteholder Debt so long as such receipt
is not the direct or indirect result of the exercise by the Collateral Agent or any other Noteholder Secured Party of foreclosure
rights with respect to any ABL Collateral or other remedies as a secured creditor of any ABL Party or enforcement in contravention
of this Intercreditor Agreement of any Lien held by any of them in any ABL Collateral or any other act in contravention of this
Intercreditor Agreement.

 

3.3  Release of Liens on ABL Collateral.

 

(a)          Prior
to Discharge of Priority Debt, if (i) in connection with any sale, lease, license, exchange, transfer or other disposition
of any ABL Collateral (A) permitted under the terms of the ABL Documents (whether or not an event of default or equivalent
event thereunder, and as defined therein, has occurred and is continuing) or (B) consented to or approved by ABL Lender, but
in the case of (A) or (B) only if permitted under the terms of the Noteholder Documents or (ii) in connection with the exercise
of the ABL Lender’s remedies in respect of the ABL Collateral provided for in Section 3.1 (provided that after
giving effect to the release and application of proceeds, ABL Debt (other than Excess ABL Debt) secured by the first priority Liens
on the remaining ABL Collateral remains outstanding), the ABL Lender, for itself or on behalf of any of the other ABL Secured Parties,
releases any of its Liens on any part of the ABL Collateral, then effective upon the consummation of such sale, lease, license,
exchange, transfer or other disposition:

 

    	12

    	 

    

 

 

(A)         the
Liens, if any, of the Collateral Agent, for itself or for the benefit of the Noteholder Secured Parties, on such ABL Collateral
shall be automatically, unconditionally and simultaneously released to the same extent as the release of ABL Lender’s Liens,

 

(B)         the
Collateral Agent, for itself or on behalf of the Noteholder Secured Parties, shall promptly upon the request of ABL Lender execute
and deliver such release documents and confirmations of the authorization to file UCC amendments and terminations provided for
herein, in each case as ABL Lender may require in connection with such sale or other disposition by ABL Lender, ABL Lender’s
agents or any ABL Loan Party with the consent of ABL Lender to evidence and effectuate such termination and release; provided,
that, any such release or UCC amendment or termination by Collateral Agent shall not extend to or otherwise affect any of
the rights, if any, of Collateral Agent and Noteholder Secured Parties to the proceeds from any such sale or other disposition
of ABL Collateral, and

 

(C)         the
Collateral Agent, for itself or on behalf of the other Noteholder Secured Parties, shall be deemed to have authorized ABL Lender
to file UCC amendments and terminations covering the ABL Collateral so sold or otherwise disposed of as to UCC financing statements
between any ABL Loan Party and Collateral Agent or any other Noteholder Secured Party to evidence such release and termination.

 

(b)          After
Discharge of Priority Debt but prior to Discharge of Priority Noteholder Debt, if (i) in connection with any sale, lease,
license, exchange, transfer or other disposition of any ABL Collateral (A) permitted under the terms of the Noteholder Documents
(whether or not an event of default or equivalent event thereunder, and as defined therein, has occurred and is continuing) or
(B) consented to or approved by Noteholder Secured Parties, but in the case of (A) and (B), only if permitted under the terms
of the ABL Documents, or (ii) in connection with the exercise of the Collateral Agent’s or any Noteholder Secured Party’s
remedies in respect of the ABL Collateral provided for in Section 3.1 (provided that after giving effect to the release
and application of proceeds, Noteholder Debt secured by the Liens on the remaining ABL Collateral remain outstanding), the Collateral
Agent, for itself or on behalf of any of the other Noteholder Secured Parties, releases any of its Liens on any part of the ABL
Collateral, then effective upon the consummation of such sale, lease, license, exchange, transfer or other disposition:

 

(A)         the
Liens, if any, of the ABL Lender, for itself or for the benefit of the ABL Secured Parties, on such ABL Collateral shall be automatically,
unconditionally and simultaneously released to the same extent as the release of the Collateral Agent’s Liens,

 

(B)         the
ABL Lender, for itself or on behalf of the ABL Secured Parties, shall promptly upon the request of the Collateral Agent execute
and deliver such release documents and confirmations of the authorization to file UCC amendments and terminations provided for
herein, in each case as the Collateral Agent may require in connection with such sale or other disposition by the Collateral Agent
or any Noteholder Secured Party, or any of their agents or any ABL Loan Party with the consent of Noteholder Secured Parties to
evidence and effectuate such termination and release; provided, that, any such release or UCC amendment or termination
by ABL Lender shall not extend to or otherwise affect any of the rights, if any, of ABL Lender and ABL Secured Parties to the proceeds
from any such sale or other disposition of ABL Collateral, and

 

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(C)         the
ABL Lender, for itself or on behalf of the other ABL Secured Parties, shall be deemed to have authorized the Collateral Agent to
file UCC amendments and terminations covering the ABL Collateral so sold or otherwise disposed of as to UCC financing statements
between any ABL Loan Party and ABL Lender or any other ABL Secured Party to evidence such release and termination.

 

(c)          The
Collateral Agent, for itself and on behalf of the other Noteholder Secured Parties, hereby irrevocably constitutes and appoints
the ABL Lender and any officer or agent of the ABL Lender, with full power of substitution, as its true and lawful attorney-in-fact
with full irrevocable power and authority in the place and stead of the Collateral Agent or such holder, from time to time in the
ABL Lender’s discretion, for the purpose of carrying out the terms of this Section 3.3(a), to take any and all
appropriate action and to execute any and all documents and instruments which may be necessary or desirable to accomplish the purposes
of this Section 3.3(a), including any termination statements, endorsements or other instruments of transfer or release.
The ABL Lender, for itself and on behalf of the other ABL Secured Parties, hereby irrevocably constitutes and appoints the Collateral
Agent and any officer or agent of the Noteholder, with full power of substitution, as its true and lawful attorney-in-fact with
full irrevocable power and authority in the place and stead of the ABL Lender or any ABL Secured Party for the purpose of carrying
out the terms of this Section 3.3(b), to take any and all appropriate action and to execute any and all documents and
instruments which may be necessary or desirable to accomplish the purposes of this Section 3.3(b), including any termination
statements, endorsements or other instruments of transfer or release.

 

(d)          Nothing
contained in this Intercreditor Agreement shall be construed to modify the obligation of ABL Lender or the Collateral Agent to
act in a commercially reasonable manner in the exercise of its rights to sell, lease, license, exchange, transfer or otherwise
dispose of any ABL Collateral.

 

3.4  Insurance and Condemnation Awards.

 

(a)          So
long as the Discharge of Priority Debt has not occurred, the ABL Lender and the other ABL Secured Parties shall have the sole and
exclusive right, subject to the rights of ABL Loan Parties under the ABL Documents, to settle and adjust claims in respect of ABL
Collateral under policies of insurance and to approve any award granted in any condemnation or similar proceeding, or any deed
in lieu of condemnation in respect of the ABL Collateral. So long as the Discharge of Priority Debt has not occurred, all proceeds
of any such policy and any such award, or any payments with respect to a deed in lieu of condemnation, shall (i) first be
paid to the ABL Lender for the benefit of the ABL Secured Parties to the extent required under the ABL Documents until the Priority
Debt has been paid in full, (ii) second, be paid to the Collateral Agent for the benefit of the Noteholder Secured Parties
to the extent required under the applicable Noteholder Documents until the Discharge of Noteholder Debt has occurred, (iii) third,
be paid to the ABL Lender for the benefit of the ABL Secured Parties to the extent required under the ABL Documents until the ABL
Debt has been paid in full, and (iv) fourth, be paid to the owner of the subject property or as a court of competent jurisdiction
may otherwise direct or may otherwise be required by applicable law. Until the Discharge of Priority Debt, if the Collateral Agent
or any other Noteholder Secured Party shall, at any time, receive any proceeds of any such insurance policy or any such award or
payment, it shall pay such proceeds over to the ABL Lender in accordance with the terms of Section 4.2.

 

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(b)          After
the Discharge of Priority Debt has occurred but before the Discharge of Priority Noteholder Debt has occurred, the Collateral Agent
and the other Noteholder Secured Parties shall have the sole and exclusive right, subject to the rights of ABL Loan Parties under
the Noteholder Documents, to settle and adjust claims in respect of ABL Collateral under policies of insurance and to approve any
award granted in any condemnation or similar proceeding, or any deed in lieu of condemnation in respect of the ABL Collateral.
After the Discharge of Priority Debt has occurred but before the Discharge of Priority Noteholder Debt has occurred, all proceeds
of any such policy and any such award, or any payments with respect to a deed in lieu of condemnation, shall (i) first be
paid to the Collateral Agent for the benefit of the Noteholder Secured Parties to the extent required under the Noteholder Documents
until the Noteholder Debt has been paid in full, (ii) second, be paid to the ABL Lender for the benefit of the ABL Secured
Parties to the extent required under the ABL Documents until the Excess ABL Debt has been paid in full, and (iii) third, be
paid to the owner of the subject property or as a court of competent jurisdiction may otherwise direct or may otherwise be required
by applicable law. After the Discharge of Priority Debt has occurred but before the Discharge of Priority Noteholder Debt has occurred,
if the ABL Lender or any other ABL Secured Party shall, at any time, receive any proceeds of any such insurance policy or any such
award or payment, it shall pay such proceeds over to the Collateral Agent in accordance with the terms of Section 4.2.

 

Section
4. PAYMENTS.

 

4.1  Application of Proceeds.

 

(a)          So
long as the Discharge of ABL Debt has not occurred, the ABL Collateral or proceeds thereof received in connection with the sale
or other disposition of, or collection on, such ABL Collateral upon the exercise of remedies, shall be applied in the following
order of priority:

 

(i)          first,
to the ABL Priority Debt (including for cash collateral as required under the ABL Documents), and in such order as specified in
the relevant ABL Documents until the Discharge of Priority Debt has occurred;

 

(ii)         second,
to the Noteholder Debt in such order as specified in the relevant Noteholder Documents until the Discharge of Priority Noteholder
Debt has occurred; and

 

(iii)        third,
to the Excess ABL Debt until the Discharge of ABL Debt has occurred.

 

(b)          Upon
the Discharge of Priority Debt, to the extent permitted under applicable law, the ABL Lender shall deliver to the Collateral Agent,
without representation or recourse, any proceeds of ABL Collateral held by it at such time in the same form as received, with any
necessary endorsements or as a court of competent jurisdiction may otherwise direct, to be applied by the Collateral Agent to the
Noteholder Debt in such order as specified in the relevant Noteholder Documents.

 

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(c)          The
foregoing provisions of this Section 4.1 are intended solely to govern the respective Lien priorities as between the
Collateral Agent and the Noteholder Secured Parties, on the one hand, and the ABL Lender and the other ABL Secured Parties, on
the other hand, and shall not impose on ABL Lender or any other ABL Secured Party or on Collateral Agent or any other Noteholder
Secured Party any obligations in respect of the disposition of proceeds of foreclosure on any ABL Collateral which would conflict
with prior perfected claims therein in favor of any other person or any order or decree of any court or other governmental authority
or any applicable law.

 

4.2  Payments Over. So long as the
Discharge of Priority Debt has not occurred, whether or not any Insolvency or Liquidation Proceeding has been commenced by or against
any ABL Loan Party, the Collateral Agent agrees, for itself and on behalf of the other Noteholder Secured Parties, that any ABL
Collateral or proceeds from the enforcement of remedies with respect to the ABL Collateral (including any right of set-off) with
respect to the ABL Collateral, and including in connection with any insurance policy claim or any condemnation award (or deed in
lieu of condemnation) with respect to ABL Collateral, shall be segregated and held in trust and promptly transferred or paid over
to the ABL Lender for the benefit of the ABL Secured Parties in the same form as received, with any necessary endorsements or assignments
or as a court of competent jurisdiction may otherwise direct. After the Discharge of Priority Debt has occurred but before the
Discharge of Priority Noteholder Debt has occurred, whether or not any Insolvency or Liquidation Proceeding has been commenced
by or against any ABL Loan Party, the ABL Lender agrees, for itself and on behalf of the other ABL Secured Parties, that any ABL
Collateral or proceeds from the enforcement of remedies with respect to the ABL Collateral or payment with respect thereto received
by the ABL Lender or any other ABL Secured Party (including any right of set-off) with respect to the ABL Collateral, and including
in connection with any insurance policy claim or any condemnation award (or deed in lieu of condemnation) with respect to ABL Collateral,
shall be segregated and held in trust and promptly transferred or paid over to the Collateral Agent for the benefit of the Noteholder
Secured Parties in the same form as received, with any necessary endorsements or assignments or as a court of competent jurisdiction
may otherwise direct. The ABL Lender or the Collateral Agent, as applicable, is hereby authorized to make any such endorsements
or assignments as agent for the other. This authorization is coupled with an interest and is irrevocable.

 

Section
5. BAILEE FOR PERFECTION.

 

5.1  Each Lender as Bailee.

 

(a)          Each
of ABL Lender and Collateral Agent (each, for purposes of this Section 5, an “Agent”) agrees to
hold any ABL Collateral that can be perfected or the priority of which can be enhanced by the possession or control of such ABL
Collateral or of any account in which such ABL Collateral is held, and if such ABL Collateral or any such account is in fact in
the possession or under the control of an Agent, or of agents or bailees of such Agent (such ABL Collateral being referred to herein
as the “Pledged ABL Collateral”), as bailee and agent for and on behalf of the other Agent solely for the purpose
of perfecting the Lien granted to the other Agent in such Pledged ABL Collateral or enhancing the priority of such Lien (including,
but not limited to, any securities or any deposit accounts or securities accounts, if any) pursuant to the ABL Documents or Noteholder
Documents, as applicable, subject to the terms and conditions of this Section 5.

 

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(b)          Until
the Discharge of Priority Debt has occurred, the ABL Lender shall be entitled to deal with the Pledged ABL Collateral in accordance
with the terms of the ABL Documents subject to the terms of this Intercreditor Agreement and to the ABL Loan Parties’ rights
under the ABL Documents.

 

(c)          Each
of ABL Lender and Collateral Agent shall have no obligation whatsoever to the other Agent or any other Secured Party to assure
that the Pledged ABL Collateral is genuine or owned by any of the ABL Loan Parties or to preserve rights or benefits of any Person
except as expressly set forth in this Section 5. The duties or responsibilities of each of ABL Lender and Collateral
Agent under this Section 5 shall be limited solely to holding the Pledged ABL Collateral as bailee and agent for and
on behalf of the other Agent for purposes of perfecting or enhancing the priority of the Lien held by the other Agent.

 

(d)          Each
of ABL Lender and Collateral Agent shall not have by reason of the ABL Documents, the Noteholder Documents or this Intercreditor
Agreement or any other document a fiduciary relationship in respect of the other Agent or any of the other Secured Parties and
shall not have any liability to the other Agent or any other Secured Party in connection with its holding the Pledged ABL Collateral,
other than for its gross negligence or willful misconduct as determined by a final, non-appealable order of a court of competent
jurisdiction.

 

5.2  Transfer of Pledged ABL Collateral.
Upon the Discharge of Priority Debt, to the extent permitted under applicable law, the ABL Lender shall, without recourse or warranty,
transfer the possession and control of the Pledged ABL Collateral, if any, then in its possession or control to Collateral Agent,
except in the event and to the extent (a) the ABL Lender or any other ABL Secured Party has retained or otherwise acquired
such ABL Collateral in full or partial satisfaction of any of the ABL Debt, (b) such ABL Collateral is sold or otherwise disposed
of by the ABL Lender or any other ABL Secured Party or by a ABL Loan Party as provided herein or (c) it is otherwise required
by any order of any court or other governmental authority or applicable law. The foregoing provision shall not impose on the ABL
Lender or any other ABL Secured Party any obligations which would conflict with prior perfected claims therein in favor of any
other person or any order or decree of any court or other governmental authority or any applicable law. In connection with any
transfer described herein to Collateral Agent, the Agent agrees to take reasonable actions in its power (with all costs and expenses
in connection therewith to be for the account of the Collateral Agent and to be paid by Borrowers) as shall be reasonably requested
by the Collateral Agent to permit the Collateral Agent to obtain, for the benefit of the Noteholder Secured Parties, a first priority
Lien in the Pledged ABL Collateral.

 

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Section
6. INSOLVENCY OR LIQUIDATION PROCEEDINGS.

 

6.1  General Applicability. This
Intercreditor Agreement shall be applicable both before and after the institution of any Insolvency or Liquidation Proceeding involving
Borrower or any other ABL Loan Party, including, without limitation, the filing of any petition by or against Borrower or any other
ABL Loan Party under the Bankruptcy Code or under any other Bankruptcy Law and all converted or subsequent cases in respect thereof,
and all references herein to Borrower or any ABL Loan Party shall be deemed to apply to the trustee for Borrower or such ABL Loan
Party and Borrower or such ABL Loan Party as debtor-in-possession. The relative rights of the ABL Secured Parties and the Noteholder
Secured Parties in or to any distributions from or in respect of any ABL Collateral or proceeds of ABL Collateral shall continue
after the institution of any Insolvency or Liquidation Proceeding involving Borrower or any other ABL Loan Party, including, without
limitation, the filing of any petition by or against Borrower or any other ABL Loan Party under the Bankruptcy Code or under any
other Bankruptcy Law and all converted cases and subsequent cases, on the same basis as prior to the date of such institution,
subject to (i) any court order approving the financing of, or use of cash collateral by, Borrower or any other ABL Loan Party
as debtor-in-possession, or (ii) any other court order affecting the rights and interests of the parties hereto, in either
case so long as such court order is not in conflict with this Intercreditor Agreement. This Agreement shall constitute a Subordination
Agreement for the purposes of Section 510(a) of the Bankruptcy Code and shall be enforceable in any Insolvency or Liquidation
Proceeding in accordance with its terms.

 

6.2  Bankruptcy Financing. If any
ABL Loan Party becomes subject to any Insolvency or Liquidation Proceeding, until the Discharge of Priority Debt has occurred,
the Collateral Agent, for itself and on behalf of the other Noteholder Secured Parties, agrees that:

 

(a)          each
Noteholder Secured Party will raise no objection to, nor support any other Person objecting to, and will be deemed to have consented
to, the use of any ABL Collateral constituting cash collateral under Section 363 of the Bankruptcy Code, or any comparable
provision of any other Bankruptcy Law or any post-petition financing, provided by any ABL Secured Party or any Qualified Financier
(which agrees to be bound by Section 8 hereof) under Section 364 of the Bankruptcy Code, or any comparable provision
of any other Bankruptcy Law (a “DIP Financing”), will not request or accept adequate protection or any other
relief in connection with the use of such cash collateral or such DIP Financing except as set forth in Section 6.4
below and will subordinate (and will be deemed hereunder to have subordinated) the Liens granted to Noteholder Secured Parties
to such DIP Financing on the same terms as such Liens are subordinated to the Liens granted to ABL Lender hereunder (and such subordination
will not alter in any manner the terms of this Intercreditor Agreement), to any adequate protection provided to the ABL Secured
Parties and to any “carve out” agreed to by the ABL Lender; provided that:

 

(i)          the
ABL Lender does not oppose or object to such use of cash collateral or DIP Financing,

 

(ii)         the
aggregate principal amount of such DIP Financing, together with the ABL Debt as of such date, does not exceed the principal component
of Maximum Priority ABL Debt, and the DIP Financing is treated as ABL Debt hereunder,

 

(iii)        the
Liens granted to the ABL Secured Parties or Qualified Financier in connection with such DIP Financing are subject to this Intercreditor
Agreement and considered to be Liens of ABL Lender for purposes hereof,

 

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(iv)        the
Collateral Agent retains a Lien on the ABL Collateral (including proceeds thereof) with the same priority as existed prior to such
Insolvency or Liquidation Proceeding (except to the extent of any “carve out” agreed to by the ABL Lender),

 

(v)         the
Collateral Agent receives replacement Liens on all assets, including post-petition assets, of any ABL Loan Party in which any of
the ABL Lender obtains a replacement Lien, or which secure the DIP Financing, with the same priority relative to the Liens of ABL
Lender as existed prior to such Insolvency or Liquidation Proceeding, and

 

(vi)        the
Noteholder Secured Parties may oppose or object to such use of cash collateral or DIP Financing on the same bases as an unsecured
creditor, so long as such opposition or objection is not based on the Noteholder Secured Parties’ status as secured creditors.

 

(b)          no
Noteholder Secured Party shall, directly or indirectly, provide, or seek to provide, DIP Financing secured by Liens equal or senior
in priority to the Liens on the ABL Collateral of ABL Lender, without the prior written consent of ABL Lender.

 

6.3  Relief from the Automatic Stay.
The Collateral Agent, for itself and on behalf of the other Noteholder Secured Parties, agrees that, so long as the Discharge of
Priority Debt has not occurred, no Noteholder Secured Party shall, without the prior written consent of the ABL Lender, seek or
request relief from or modification of the automatic stay or any other stay in any Insolvency or Liquidation Proceeding in respect
of any part of the ABL Collateral, any proceeds thereof or any Lien securing any of the Noteholder Debt. Notwithstanding anything
to the contrary set forth in this Intercreditor Agreement, no ABL Loan Party waives or shall be deemed to have waived any rights
under Section 362 of the Bankruptcy Code.

 

6.4  Adequate Protection.

 

(a)          The
Collateral Agent, on behalf of itself and the other Noteholder Secured Parties, agrees that none of them shall object, contest,
or support any other Person objecting to or contesting, (i) any request by the ABL Lender or any of the other ABL Secured
Parties for adequate protection of the First Priority Debt or any adequate protection provided to the ABL Lender or other ABL Secured
Parties with respect to the First Priority Debt or (ii) any objection by the ABL Lender or any of the other ABL Secured Parties
to any motion, relief, action or proceeding based on a claim of a lack of adequate protection for the First Priority Debt or (iii) the
payment of interest, fees, expenses or other amounts to the ABL Lender or any other ABL Secured Party with respect to the First
Priority Debt under Section 506(b) or 506(c) of the Bankruptcy Code or otherwise.

 

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(b)          The
Collateral Agent, on behalf of itself and the other Noteholder Secured Parties, agrees that none of them shall seek or accept adequate
protection with respect to the Noteholder Debt secured by Liens on the ABL Collateral without the prior written consent of the
ABL Lender; except, that, the Collateral Agent, for itself or on behalf of the other Noteholder Secured Parties,
or the Noteholder Secured Parties shall be permitted (i) to obtain adequate protection in the form of the benefit of additional
or replacement Liens on the ABL Collateral (including proceeds thereof arising after the commencement of any Insolvency or Liquidation
Proceeding), or additional or replacement ABL Collateral to secure the Noteholder Debt, in connection with any DIP Financing or
use of cash collateral as provided for in Section 6.2 above, or in connection with any such adequate protection obtained
by ABL Lender and the other ABL Secured Parties, as long as in each case, the ABL Lender is also granted such additional or replacement
Liens or additional or replacement ABL Collateral and such Liens of Collateral Agent or any other Noteholder Secured Party are
subordinated to the Liens securing the ABL Debt to the same extent as the Liens of Collateral Agent and the other Noteholder Secured
Parties on the ABL Collateral are subordinated to the Liens of ABL Lender and the other ABL Secured Parties hereunder and (ii) to
obtain adequate protection in the form of reports, notices, inspection rights and similar forms of adequate protection to the extent
granted to the ABL Lender.

 

6.5  Reorganization Securities. If,
in any Insolvency or Liquidation Proceeding, debt obligations of any reorganized ABL Loan Party secured by Liens upon any property
of such reorganized ABL Loan Party are distributed, pursuant to a plan of reorganization, on account of both the ABL Debt and the
Noteholder Debt, then, to the extent the debt obligations distributed on account of the ABL Debt and on account of the Noteholder
Debt are secured by Liens upon the same assets or property, the provisions of this Intercreditor Agreement will survive the distribution
of such debt obligations pursuant to such plan and will apply with like effect to the Liens securing such debt obligations.

 

6.6  Separate Classes. Each of the
parties hereto irrevocably acknowledges and agrees that (a) the claims and interests of the ABL Secured Parties and the Noteholder
Secured Parties are not “substantially similar” within the meaning of Section 1122 of the Bankruptcy Code, or
any comparable provision of any other Bankruptcy Law, (b) the grants of the Liens to secure the ABL Debt and the grants of
the Liens to secure the Noteholder Debt constitute two separate and distinct grants of Liens, (c) the ABL Secured Parties’
rights in the ABL Collateral are fundamentally different from the Noteholder Secured Parties’ rights in the ABL Collateral
and (d) as a result of the foregoing, among other things, the ABL Debt and the Noteholder Debt must be separately classified
in any plan of reorganization proposed or adopted in any Insolvency or Liquidation Proceeding.

 

6.7  Asset Dispositions. Until the
Discharge of Priority Debt has occurred, the Collateral Agent, for itself and on behalf of the other Noteholder Secured Parties,
agrees that, in the event of any Insolvency or Liquidation Proceeding, the Noteholder Secured Parties will not object or oppose
(or support any Person in objecting or opposing) a motion to any sale, lease, license, exchange, transfer or other disposition
of any ABL Collateral free and clear of the Liens of Collateral Agent and the other Noteholder Secured Parties or other claims
under Section 363 of the Bankruptcy Code, or any comparable provision of any Bankruptcy Law and shall be deemed to have consented
to any such any sale, lease, license, exchange, transfer or other disposition of any ABL Collateral under Section 363(f) of
the Bankruptcy Code that has been consented to by the ABL Lender; provided, that, (a) the proceeds of such sale, lease, license,
exchange, transfer or other disposition of any ABL Collateral to be applied to the ABL Debt or the Noteholder Debt are applied
in accordance with Section 4.1. Nothing herein shall prevent the Collateral Agent or the Noteholder Secured Parties from taking
Permitted Actions or action permitted under Section 3.2 permitted to unsecured creditors.

 

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6.8  Preference Issues.

 

(a)          If,
in any Insolvency or Liquidation Proceeding or otherwise, all or part of any payment with respect to the First Priority Debt previously
made shall be rescinded for any reason whatsoever, then the First Priority Debt shall be reinstated to the extent of the amount
so rescinded and, if theretofore terminated, this Intercreditor Agreement shall be reinstated in full force and effect and such
prior termination shall not diminish, release, discharge, impair or otherwise affect the Lien priorities and the relative rights
and obligations of the ABL Secured Parties and the Noteholder Secured Parties provided for herein.

 

(b)          If,
in any Insolvency or Liquidation Proceeding or otherwise, all or part of any payment with respect to the Noteholder Debt previously
made shall be rescinded for any reason whatsoever and the Discharge of Priority Debt shall, subject to (for the avoidance of doubt)
the immediately preceding clause (a), have occurred, then the Noteholder Debt shall be reinstated to the extent of the amount
so rescinded and, if theretofore terminated, this Intercreditor Agreement shall be reinstated in full force and effect and such
prior termination shall not diminish, release, discharge, impair or otherwise affect the Lien priorities and the relative rights
and obligations of the Noteholder Secured Parties and any Person that holds ABL Excess Debt provided for herein solely with respect
to any ABL Excess Claims and for the avoidance of doubt, not with respect to any First Priority Debt.

 

6.9  Certain Waivers as to Section 1111(b)(2)
of Bankruptcy Code. The Collateral Agent, for itself and on behalf of the other Noteholder Secured Parties, waives any claim
any Noteholder Secured Party may hereafter have against any ABL Secured Party arising out of the election by any ABL Secured Party
of the application of Section 1111(b)(2) of the Bankruptcy Code, or any comparable provision of any other Bankruptcy Law.
The ABL Lender, for itself and on behalf of the other ABL Secured Parties, waives any claim any ABL Secured Party may hereafter
have against any Noteholder Secured Party arising out of the election by any Noteholder Secured Party of the application of Section 1111(b)(2)
of the Bankruptcy Code or any comparable provision of any other Bankruptcy Law.

 

6.10  Other Bankruptcy Laws. In the
event that an Insolvency of Liquidation Proceeding is filed in a jurisdiction other than the United States or is governed by any
Bankruptcy Law other than the Bankruptcy Code, each reference in this Intercreditor Agreement to a section of the Bankruptcy Code
shall be deemed to refer to the substantially similar or corresponding provision of the Bankruptcy Law applicable to such Insolvency
or Liquidation Proceeding, or in the absence of any specific similar or corresponding provision of the Bankruptcy Law, such other
general Bankruptcy Law as may be applied in order to achieve substantially the same result as would be achieved under each applicable
section of the Bankruptcy Code.

 

Section
7. NOTEHOLDER SECURED PARTIES’ PURCHASE OPTION.

 

7.1  Exercise of Option. On or after
the occurrence and during the continuance of an ABL Event of Default and either the acceleration of all of the ABL Debt or the
receipt by Collateral Agent of written notice from ABL Lender of its intention to commence a Lien Enforcement Action as provided
in Section 7.5 below, the Noteholder Secured Parties shall have the option at any time within ninety (90) days of such
acceleration or written notice, upon five (5) Business Days’ prior written notice by Collateral Agent to ABL Lender,
to purchase all (but not less than all) of the ABL Debt from the ABL Secured Parties. Such notice from Collateral Agent to ABL
Lender shall be irrevocable.

 

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7.2  Purchase and Sale. On the date
specified by Collateral Agent in the notice referred to in Section 7.1 (which shall not be less than five (5) Business
Days, nor more than twenty (20) days, after the receipt by ABL Lender of the notice from Collateral Agent of its election
to exercise such option), ABL Secured Parties shall, subject to any required approval of any court or other regulatory or governmental
authority then in effect (the time to obtain any such approval shall extend the proposed date of sale and purchase), if any, sell
to Noteholder Secured Parties, and Noteholder Secured Parties shall purchase from ABL Secured Parties, all of the ABL Debt. Notwithstanding
anything to the contrary contained herein, in connection with any such purchase and sale, ABL Secured Parties shall retain all
rights under the ABL Documents to be indemnified or held harmless by ABL Loan Parties in accordance with the terms thereof.

 

7.3  Payment of Purchase Price.

 

(a)          Upon
the date of such purchase and sale, Noteholder Secured Parties shall (i) pay to ABL Lender for the account of the ABL Secured
Parties as the purchase price therefor the full amount of all of the ABL Debt then outstanding and unpaid (including principal,
interest, fees and expenses, including reasonable attorneys’ fees and legal expenses), (ii) furnish cash collateral
to ABL Lender in such amounts as ABL Lender determines is reasonably necessary to secure ABL Secured Parties in connection with
any issued and outstanding letters of credit issued under the ABL Documents (but not in any event in an amount greater than one
hundred five (105%) percent of the aggregate undrawn face amount of such letters of credit) (ABL Lender agrees to refund this cash
collateral to the Noteholder Secured Parties to the extent any letter of credit expires or is terminated or any amount is reimbursed
from other sources), and (iii) agree to reimburse ABL Secured Parties for any loss, cost, damage or expense (including reasonable
attorneys’ fees and legal expenses) in connection with any commissions, fees, costs or expenses related to any issued and
outstanding letters of credit as described above and any checks or other payments provisionally credited to the ABL Debt, and/or
as to which ABL Secured Parties have not yet received final payment.

 

(b)          Such
purchase price and cash collateral shall be remitted by wire transfer in federal funds to such bank account of ABL Lender as ABL
Lender may designate in writing to Collateral Agent for such purpose. Interest shall be calculated to but excluding the Business
Day on which such purchase and sale shall occur if the amounts so paid by Noteholder Secured Parties to the bank account designated
by ABL Lender are received in such bank account prior to 12:00 noon, New York City time and interest shall be calculated to and
including such Business Day if the amounts so paid by Noteholder Secured Parties to the bank account designated by ABL Lender are
received in such bank account later than 12:00 noon, New York City time.

 

    	22

    	 

    

 

 

7.4  Representations Upon Purchase and
Sale. Such purchase shall be expressly made without representation or warranty of any kind by ABL Secured Parties as to the
ABL Debt, the ABL Collateral or otherwise and without recourse to ABL Secured Parties, except that each ABL Secured Party shall
represent and warrant, severally, as to it: (a) the amount of the ABL Debt being purchased from it are as reflected in the
books and records of such ABL Secured Party (but without representation or warranty as to the collectibility, validity or enforceability
thereof), (b) that such ABL Secured Party owns the ABL Debt being sold by it free and clear of any liens or encumbrances and
(c) such ABL Secured Party has the right to assign the ABL Debt being sold by it and the assignment is duly authorized. Upon
the purchase by Noteholder Secured Parties of the ABL Debt, Noteholder Secured Parties agree to indemnify and hold ABL Secured
Parties harmless from and against all loss, cost, damage or expense (including reasonable attorneys’ fees and legal expenses)
suffered or incurred by ABL Secured Parties arising from or in any way relating to acts or omissions of Collateral Agent or any
of the other Noteholder Secured Parties after the purchase. Subject to the foregoing, ABL Secured Parties shall execute and deliver
such instruments of transfer and other documents as shall be necessary or desirable to fully vest title to the ABL Debt in the
Noteholder Secured Parties (or their designee) and to effectively transfer all Liens securing the ABL Debt to the Noteholder Secured
Parties (or their designee).

 

7.5  Notice from ABL Lender Prior to
Lien Enforcement Action. ABL Lender agrees that it will give Collateral Agent ten (10) Business Days prior written notice
of its intention to commence a Lien Enforcement Action. In the event that during such ten (10) Business Day period, Collateral
Agent shall send to ABL Lender the irrevocable notice of the intention of the Noteholder Secured Parties to exercise the purchase
option given by ABL Secured Parties to Noteholder Secured Parties under this Section 7, ABL Secured Parties shall not commence
any foreclosure or other action to sell or otherwise realize upon the ABL Collateral, provided, that, the purchase and sale with
respect to the ABL Debt provided for herein shall have closed within thirty (30) Business Days thereafter and ABL Secured
Parties shall have received final payment in full of the ABL Debt as provided for herein within such thirty (30) Business
Day period.

 

Section
8. RELIANCE; WAIVERS; ETC.

 

8.1  Reliance. The consent by the
ABL Secured Parties to the execution and delivery of the Noteholder Documents and the grant to the Collateral Agent on behalf of
the Noteholder Secured Parties of a Lien on the ABL Collateral and all loans and other extensions of credit made or deemed made
on and after the date hereof by the Noteholder Secured Parties to any ABL Loan Party shall be deemed to have been given and made
in reliance upon this Intercreditor Agreement.

 

    	23

    	 

    

 

 

8.2  No Warranties or Liability.
The Collateral Agent, for itself and on behalf of the other Noteholder Secured Parties, acknowledges and agrees that each of the
ABL Lender and the other ABL Secured Parties have made no express or implied representation or warranty, including with respect
to the execution, validity, legality, completeness, collectibility or enforceability of any of the ABL Documents, the ownership
of any ABL Collateral or the perfection or priority of any Liens thereon. The Collateral Agent agrees, for itself and on behalf
of the other Noteholder Secured Parties, that the ABL Secured Parties will be entitled to manage and supervise their respective
loans and extensions of credit under the ABL Documents in accordance with law and as they may otherwise, in their sole discretion,
deem appropriate, and the ABL Secured Parties may manage their loans and extensions of credit without regard to any rights or interests
that the Collateral Agent or any of the other Noteholder Secured Parties have in the ABL Collateral or otherwise, in each case
except as otherwise provided in this Intercreditor Agreement. The ABL Lender, for itself and on behalf of the ABL Secured Parties,
acknowledges and agrees that neither the Collateral Agent nor any other Noteholder Secured Party has made any express or implied
representation or warranty, including with respect to the execution, validity, legality, completeness, collectibility or enforceability
of any of the Noteholder Documents, the ownership of any ABL Collateral or the perfection of priority of any Liens thereon. The
ABL Lender agrees, for itself and on behalf of the other ABL Secured Parties, that the Collateral Agent and the Noteholder Secured
Parties will be entitled to manage the Noteholder Debt under the Noteholder Documents in accordance with law and as they may otherwise,
in their sole discretion, deem appropriate, and the Collateral Agent and the Noteholder Secured Parties may manage their Noteholder
Debt without regard to any rights or interests that the ABL Lender or any of the other ABL Secured Parties have in the ABL Collateral
or otherwise, in each case except as otherwise provided in this Intercreditor Agreement. Neither the ABL Lender nor any of the
other ABL Secured Parties shall have any duty to the Collateral Agent or any of the other Noteholder Secured Parties, and neither
the Collateral Agent or any of the other Noteholder Secured Parties shall have any duty to the ABL Lender or any of the ABL Secured
Parties, to act or refrain from acting in a manner which allows, or results in, the occurrence or continuance of an event of default
or default under any agreements with any ABL Loan Party (including the Noteholder Documents or any ABL Documents), regardless of
any knowledge thereof which they may have or be charged with.

 

8.3  No Waiver of Lien Priorities.

 

(a)          No
right of the ABL Lender or any of the other ABL Secured Parties or of the Collateral Agent or the Noteholder Secured Parties to
enforce any provision of this Intercreditor Agreement or any of the ABL Documents or Noteholder Documents, as the case may be,
shall at any time in any way be prejudiced or impaired by any act or failure to act on the part of any ABL Loan Party, or by any
noncompliance by any Person with the terms, provisions and covenants of this Intercreditor Agreement, any of the ABL Documents
or any of the Noteholder Documents, regardless of any knowledge thereof which the ABL Lender or any of the other ABL Secured Parties
or the Collateral Agent or the Noteholder Secured Parties may have or be otherwise charged with.

 

(b)          Without
in any way limiting the generality of the foregoing paragraph (but subject to the rights of the ABL Loan Parties under the
ABL Documents and the rights of the Noteholder Secured Parties under the Noteholder Documents), the ABL Lender and any of the other
ABL Secured Parties may, at any time and from time to time, without the consent of, or notice to, the Collateral Agent or any other
Noteholder Secured Party, without incurring any liabilities to the Collateral Agent or any other Noteholder Secured Party and without
impairing or releasing the Lien priorities and other benefits provided in this Intercreditor Agreement (even if any right of subrogation
or other right or remedy of the Collateral Agent or any other Noteholder Secured Party is affected, impaired or extinguished thereby)
do any one or more of the following:

 

(i)          change
the manner, place or terms of payment or change or extend the time of payment of, or amend, renew, exchange, increase or alter,
the terms of any of the ABL Debt or any Lien on any ABL Collateral or guaranty thereof or any liability of any ABL Loan Party,
or any liability incurred directly or indirectly in respect thereof (including any increase in or extension of the ABL Debt, without
any restriction as to the amount, tenor or terms of any such increase or extension) or otherwise amend, renew, exchange, extend,
modify or supplement in any manner any Liens held by the ABL Lender or any of the other ABL Secured Parties, the ABL Debt or any
of the ABL Documents; except that the ABL Lender and the ABL Secured Parties may not consent to any amendment, modification
or waiver to the ABL Documents that:

 

    	24

    	 

    

 

 

(A)         results
in the sum of (1) the aggregate principal amount of loans outstanding under the ABL Documents, plus (2) the unused portion
of the revolving commitments under the ABL Documents, plus (3) the aggregate face amount of all letters of credit issued or
deemed issued and outstanding under the ABL Documents plus (4) the Cash Management Obligations plus the Hedging Obligations
(in the case of each of the foregoing, as determined after giving effect to such amendment, modification or waiver) exceeding $75,000,000,

 

(B)         increase
the “Applicable Margins” or similar component of the interest rate under the ABL Loan Agreement in a manner that would
result in the total yield on the ABL Date to exceed by more than two (2%) percent per annum the total yield on the ABL Debt
as in effect on the date hereof (excluding increases resulting from the accrual or payment of interest at the default rate),

 

(C)         modify
or add any covenant or event of default under the ABL Documents that directly restricts Borrower or its subsidiaries from making
payments of the Noteholder Debt that would otherwise be permitted under the ABL Documents as in effect on the date hereof,

 

(D)         contractually
subordinate the Liens of the ABL Secured Parties to any other debt of ABL Loan Parties,

 

(E)         extend
the stated maturity date of the Indebtedness under the ABL Loan Agreement to a date beyond the stated maturity date of the Notes
(as in effect on the date hereof or as hereafter extended), or

 

(F)         contravene
the provisions of this Intercreditor Agreement;

 

(ii)         until
Discharge of Priority Debt, sell, exchange, release, surrender, realize upon, enforce or otherwise deal with in any manner and
in any order any part of the ABL Collateral or any liability of any ABL Loan Party to the ABL Lender or any of the other ABL Secured
Parties, or any liability incurred directly or indirectly in respect thereof in accordance with the terms hereof;

 

(iii)        settle
or compromise any of the ABL Debt or any other liability of any ABL Loan Party or any security therefor or any liability incurred
directly or indirectly in respect thereof and apply any sums by whomsoever paid and however realized to any liability (including
the ABL Debt) in any manner or order, but subject however to the terms of this Intercreditor Agreement; and

 

(iv)        exercise
or delay in or refrain from exercising any right or remedy against any ABL Loan Party or any other Person, elect any remedy and
otherwise deal freely with any ABL Loan Party or any ABL Collateral and any security and any guarantor or any liability of any
ABL Loan Party to any of the ABL Secured Parties or any liability incurred directly or indirectly in respect thereof, but subject
however to the terms of this Intercreditor Agreement.

 

    	25

    	 

    

 

 

(c)          Each
of the Collateral Agent and the ABL Lender agrees not to assert and hereby waives, to the fullest extent permitted by law, any
right to demand, request, plead or otherwise assert or otherwise claim the benefit of, any marshalling, appraisal, valuation or
other similar right that may otherwise be available under applicable law with respect to the ABL Collateral or any other similar
rights a junior secured creditor may have under applicable law with respect to the ABL Collateral.

 

Section
9. MISCELLANEOUS.

 

9.1  Conflicts. In the event of any
conflict between the provisions of this Intercreditor Agreement and the provisions of the ABL Documents or the Noteholder Documents,
the provisions of this Intercreditor Agreement shall govern.

 

9.2  Continuing Nature of this Intercreditor
Agreement; Severability. This Agreement shall continue to be effective until the earlier of (a) the Discharge of ABL Debt
or (b) the final payment in full in cash of the Noteholder Debt and the termination and release by each Noteholder Secured
Party of any Liens to secure the Noteholder Debt. This is a continuing agreement of Lien subordination and the ABL Secured Parties
may continue, at any time and without notice to the Collateral Agent or any other Noteholder Secured Party, to extend credit and
other financial accommodations and lend monies to or for the benefit of any ABL Loan Party constituting ABL Debt in reliance hereon
and the Noteholder Secured Parties may purchase Notes constituting Noteholder Debt in reliance hereon. Each of the Collateral Agent,
for itself and on behalf of the Noteholder Secured Parties, and the ABL Lender, for itself and on behalf of the ABL Secured Parties,
hereby waives any right it may have under applicable law to revoke this Intercreditor Agreement or any of the provisions of this
Intercreditor Agreement. The terms of this Intercreditor Agreement shall survive, and shall continue in full force and effect,
in any Insolvency or Liquidation Proceeding. Any provision of this Intercreditor Agreement which is prohibited or unenforceable
in any jurisdiction shall not invalidate the remaining provisions hereof, and any such prohibition or unenforceability in any jurisdiction
shall not invalidate or render unenforceable such provision in any other jurisdiction.

 

9.3  When Discharge of ABL Debt Deemed
to Not Have Occurred. If substantially contemporaneously with the Discharge of ABL Debt, Borrower refinances indebtedness outstanding
under the ABL Documents, then after written notice to Collateral Agent, (a) the indebtedness and other obligations arising
pursuant to such refinancing of the then outstanding indebtedness under the ABL Documents shall automatically be treated as ABL
Debt for all purposes of this Intercreditor Agreement, including for purposes of the Lien priorities and rights in respect of ABL
Collateral set forth herein, provided that such indebtedness would have been a permitted modification or amendment under Section 8.3(b)
hereof, (b) the credit agreement and the other loan documents evidencing such new indebtedness shall automatically be treated
as the ABL Loan Agreement and the ABL Documents for all purposes of this Intercreditor Agreement and (c) the administrative
agent under the new ABL Loan Agreement shall be deemed to be the ABL Lender for all purposes of this Intercreditor Agreement.

 

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9.4  Amendments to Noteholder Documents.
Without the prior written consent of the ABL Lender, no Noteholder Document may be amended, supplemented or otherwise modified,
and no new Noteholder Document may be entered into, to the extent such amendment, supplement or other modification or new document
would contravene the provisions of this Intercreditor Agreement.

 

9.5  Amendments; Waivers. No amendment,
modification or waiver of any of the provisions of this Intercreditor Agreement by the Collateral Agent or the ABL Lender shall
be deemed to be made unless the same shall be in writing signed on behalf of the party making the same or its authorized agent
and each waiver, if any, shall be a waiver only with respect to the specific instance involved and shall in no way impair the rights
of the parties making such waiver or the obligations of the other parties to such party in any other respect or at any other time.
The ABL Loan Parties shall not have any right to consent to or approve any amendment, modification or waiver of any provision of
this Intercreditor Agreement except to the extent their rights or obligations are directly affected.

 

9.6  Subrogation; Marshalling.

 

(a)          The
Collateral Agent agrees that no payment or distribution to any ABL Secured Party pursuant to the provisions of this Intercreditor
Agreement shall entitle any Noteholder Secured Party to exercise any rights of subrogation in respect thereof until the Discharge
of Priority Debt shall have occurred. Following the Discharge of Priority Debt, each the ABL Lender agrees to execute such documents,
agreements, and instruments as the Collateral Agent or any Noteholder Secured Party may reasonably request to evidence the transfer
by subrogation to any the Collateral Agent, for the benefit of the Noteholder Secured Parties, of an interest in the First Priority
Debt resulting from payments or distributions to such ABL Secured Party by such Person, so long as all reasonable costs and expenses
(including all reasonable legal fees and disbursements) incurred in connection therewith by such ABL Secured Party are paid by
such Person upon request for payment thereof.

 

(b)          Noteholder
Secured Parties hereby waives any and all rights to have any ABL Collateral or any part thereof granted to or held by ABL Lender
marshaled upon any foreclosure or other disposition of such ABL Collateral by ABL Lender or any ABL Loan Party with the consent
of ABL Lender and ABL Secured Parties hereby waive any and all rights to have any ABL Collateral or any part thereof granted to
or held by Collateral Agent or any other Noteholder Secured Party marshaled upon any foreclosure or other disposition of such ABL
Collateral by Collateral Agent or any Noteholder Secured Party or any ABL Loan Party with the consent of Noteholder Secured Parties,
in each case subject to the other terms of this Intercreditor Agreement.

 

9.7  Consent to Jurisdiction; Waivers.
The parties hereto consent to the jurisdiction of any state or federal court located in New York, New York, and consent that all
service of process may be made by registered mail directed to such party as provided in Section 9.9 below for such party.
The parties hereto waive any objection to any action instituted hereunder based on forum non conveniens, and any objection to the
venue of any action instituted hereunder. Each of the parties hereto waives any right it may have to trial by jury in respect of
any litigation based on, or arising out of, under or in connection with this Intercreditor Agreement, or any course of conduct,
course of dealing, verbal or written statement or action of any party hereto.

 

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9.8  Notices. All notices to the
Noteholder Secured Parties and the ABL Secured Parties permitted or required under this Intercreditor Agreement may be sent to
the Collateral Agent and the ABL Lender, respectively. Unless otherwise specifically provided herein, any notice or other communication
herein required or permitted to be given shall be in writing and may be personally served, electronically mailed or sent by courier
service, facsimile transmission or U.S. mail and shall be deemed to have been given when delivered in person or by courier service,
upon receipt of a facsimile transmission or electronic mail or four (4) Business Days after deposit in the U.S. mail (registered
or certified, with postage prepaid and properly addressed). For the purposes hereof, the addresses of the parties hereto shall
be as set forth below, or, as to each party, at such other address as may be designated by such party in a written notice to all
of the other parties.

 

Collateral Agent:

 

U.S. Bank National Association

Global Corporate Trust Services

60 Livingstone Avenue

EP-MN-WS3C

St. Paul, Minnesota 55107-2292

Attention: Joshua A. Hahn

Facsimile No.: 651-466-7430

 

ABL Lender:

 

Wells Fargo Bank, National Association

100 Park Avenue, 14th Floor

New York, New York 10017

MAC J0149-030

Attention: Portfolio Manager - Liggett

Facsimile No.: 212-545-4283

 

Each ABL Loan Party:

 

Liggett Group LLC

100 Maple Lane

Mebane, North Carolina 27302

Attention: John Long

Facsimile No.: 919-990-3505

 

with a copy to:

 

Vector Group Ltd.

100 S.E. 2nd Street, 32nd Floor

Miami, Florida 33131

Attention: Marc Bell

Facsimile No.: 305-579-8016

 

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9.9  Further Assurances.

 

(a)          The
Collateral Agent agrees that it shall, for itself and on behalf of the Noteholder Secured Parties, take such further action and
shall execute and deliver to the ABL Lender such additional documents and instruments (in recordable form, if requested) as the
ABL Lender may reasonably request to effectuate the terms of and the lien priorities contemplated by this Intercreditor Agreement.

 

(b)          The
ABL Lender agrees that it shall, for itself and on behalf of the ABL Secured Parties, take such further action and shall execute
and deliver to the Collateral Agent such additional documents and instruments (in recordable form, if requested) as the Collateral
Agent may reasonably request to effectuate the terms of and the lien priorities contemplated by this Intercreditor Agreement.

 

9.10  Consent to Jurisdiction; Waiver
of Jury Trial. EACH OF THE PARTIES HERETO HEREBY IRREVOCABLY CONSENTS TO THE NON-EXCLUSIVE JURISDICTION OF THE SUPREME COURT
OF THE STATE OF NEW YORK IN NEW YORK COUNTY AND THE UNITED STATES DISTRICT COURT FOR THE SOUTHERN DISTRICT OF NEW YORK AND WAIVES
TRIAL BY JURY IN ANY ACTION OR PROCEEDING WITH RESPECT TO THIS AGREEMENT.

 

9.11  Governing Law. The validity,
construction and effect of this Intercreditor Agreement shall be governed by the internal laws of the State of New York but excluding
any principles of conflicts of law or any other rule of law that would result in the application of the law of any jurisdiction
other than the laws of the State of New York.

 

9.12  Binding on Successors and Assigns.
This Agreement shall be binding upon the ABL Lender, the other ABL Secured Parties, the Collateral Agent, the other Noteholder
Secured Parties, ABL Loan Parties and their respective permitted successors and assigns.

 

9.13  Specific Performance. The ABL
Lender or the Collateral Agent may demand specific performance of this Intercreditor Agreement. The Collateral Agent, for itself
and on behalf of the Noteholder Secured Parties, and the ABL Lender, for itself and on behalf of the ABL Secured Parties, hereby
irrevocably waives any defense based on the adequacy of a remedy at law and any other defense which might be asserted to bar the
remedy of specific performance in any action which may be brought by the ABL Lender or the Collateral Agent, as applicable.

 

9.14  Section Titles; Time Periods.
The section titles contained in this Intercreditor Agreement are and shall be without substantive meaning or content of any kind
whatsoever and are not a part of this Intercreditor Agreement.

 

9.15  Counterparts. This Agreement
may be executed in one or more counterparts, each of which shall be an original and all of which shall together constitute one
and the same document.

 

9.16  Authorization. By its signature,
each Person executing this Intercreditor Agreement on behalf of a party hereto represents and warrants to the other parties hereto
that it is duly authorized to execute this Intercreditor Agreement.

 

    	29

    	 

    

 

 

9.17  No Third Party Beneficiaries.
This Agreement and the rights and benefits hereof shall inure to the benefit of each of the parties hereto and their respective
successors and assigns and shall inure to the benefit of each of the holders of ABL Debt and Noteholder Debt. No other Person shall
have or be entitled to assert rights or benefits hereunder.

 

[SIGNATURE PAGES FOLLOW]

 

 

    	30

    	 

    

 

IN WITNESS WHEREOF, the parties hereto have
executed this Intercreditor Agreement as of the date first written above.

 

	ABL LENDER:	 	
        BORROWERS AND OTHER LOAN

        PARTIES:

	 	 	 
	
        WELLS FARGO BANK, NATIONAL

        ASSOCIATION, as ABL Lender
	 	LIGGETT GROUP LLC
	 	 	 
	By:	/s/ Andrew Rogow	 	By:	/s/ John R. Long
	Name: 	Andrew Rogow	 	Name:	John R. Long
	Title:	Vice President	 	Title:	Vice President, General Counsel and Secretary
	 	 	 	 
	 	 	100 MAPLE LLC
	 	 	 	 
	 	 	By:	/s/ John R. Long
	 	 	 	 
	 	 	Name: 	John R. Long
	 	 	Title:	Secretary

 

	COLLATERAL AGENT:	 
	 	 
	
        U.S. BANK NATIONAL ASSOCIATION,

        as the Collateral Agent
	 
	 	 	 
	By:	/s/ Joshua A. Hahn	 
	 	 	 
	Name: 	Joshua A. Hahn	 
	Title:	Assistant Vice President	 

 

Intercreditor & Subordination Agreement

 

    	 

    	 

    

 

Schedule A

 

To

 

Intercreditor and Lien Subordination
Agreement

 

ABL Collateral

 

(a)  all Accounts arising from
the sale or other disposition of Inventory;

 

(b)  all general intangibles,
including, without limitation, all Intellectual Property;

 

(c)  all Inventory;

 

(d)  all Equipment;

 

(e)  all chattel paper (including
all tangible and electronic chattel paper), in each case arising in connection with or related to, or constituting identifiable
proceeds of, any of the Accounts that constitute Collateral, any Inventory or any of the other Collateral;

 

(f)  all instruments (including
all promissory notes), in each case arising in connection with or related to, or constituting identifiable proceeds of, any of
the Accounts that constitute Collateral, any Inventory or any of the other Collateral;

 

(g)  all documents arising in
connection with or related to, or constituting identifiable proceeds of, any of the Accounts that constitute Collateral, any Inventory
or any of the other Collateral;

 

(h)  all deposit accounts;

 

(i)  all letters of credit, banker’s
acceptances and similar instruments and including all letter-of-credit rights, in each case arising in connection with or related
to, or constituting identifiable proceeds of, any of the Accounts that constitute Collateral, any Inventory or any of the other
Collateral;

 

(j)  all supporting obligations
and all present and future liens, security interests, rights, remedies, title and interest in, to and in respect of Receivables
arising from the sale or other disposition of Inventory or any of the other Collateral, including (i) rights and remedies
under or relating to guaranties, contracts of suretyship, letters of credit and credit and other insurance related to the Collateral,
(ii) rights of stoppage in transit, replevin, repossession, reclamation and other rights and remedies of an unpaid vendor,
lienor or secured party, (iii) goods described in invoices, documents, contracts or instruments with respect to, or otherwise
representing or evidencing, Receivables arising from the sale or other disposition of Inventory or any of the other Collateral,
including returned, repossessed and reclaimed goods, and (iv) deposits by and property of account debtors or other persons
securing the obligations of account debtors;

 

    	Sch-1

    	 

    

 

(k)  all (i) investment property
(including securities, whether certificated or uncertificated, securities accounts, security entitlements, commodity contracts
or commodity accounts), in each case arising in connection with or related to, or constituting identifiable proceeds of any Collateral
and (ii) monies, credit balances, deposits and other property of Borrower now or hereafter held or received by or in transit
to Lender or its Affiliates or at any other depository or other institution from or for the account of Borrower, whether for safekeeping,
pledge, custody, transmission, collection or otherwise (including, without limitation, any Cash Collateral at any time held by
Lender);

 

(l)  all commercial tort claims,
including, without limitation, those identified in the Information Certificate, in each case arising in connection with or related
to, or constituting identifiable proceeds of, any of the Accounts that constitute Collateral, any Inventory or any of the other
Collateral;

 

(m)  to the extent not otherwise
described above, all Receivables arising from the sale or other disposition of Inventory or of any other Collateral;

 

(n)  the land, buildings, fixtures
and other improvements at 100 Maple Lane, Mebane, North Carolina (the “Mebane Premises”);

 

(o)  all Records; and

 

(p)  all
products and proceeds of the foregoing, in any form, including insurance proceeds and all claims against third parties for loss
or damage to or destruction of or other involuntary conversion of any kind or nature of any or all of the other Collateral.

 

As used herein, “Collateral”
shall not include (i) any of Borrower’s Real Property other than the Mebane Premises, (ii) any of Borrower’s
Equipment to the extent any grant of a lien to Lender in such Equipment would be precluded by or require a consent under the terms
and conditions of any purchase money or other financing of any such Equipment, whether now owned or hereafter acquired, or (iii) any
proceeds of such assets and property that are excluded from Collateral.

 

    	Sch-2

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