Document:

Exhibit 10.1

 

Execution
Copy

 

MACQUARIE CAPITAL (USA) INC.

MACQUARIE CAPITAL FUNDING LLC

125 West 55th Street

New York, New York 10019

 

CONFIDENTIAL

 

October 28, 2020

 

American Public Education, Inc.

111 W. Congress Street

Charles Town, WV 25414

Attention: Rick Sunderland, EVP & Chief Financial Officer

 

Project
Hometown

$195,000,000
Senior Secured Credit Facilities

Commitment
Letter

 

Ladies and Gentlemen:

 

American
Public Education, Inc., a Delaware corporation (the “Company” or “you”),
has advised Macquarie Capital (USA) Inc. (“Macquarie Capital”) and Macquarie Capital Funding LLC (“Macquarie
Lender” and, together with Macquarie Capital, collectively, “Macquarie”; Macquarie, together
with any Additional Arrangers (as defined below) appointed pursuant to Section A of this Commitment Letter, the “Commitment
Parties”, “we” or “us” and each, a “Commitment
Party”) that the Company intends to consummate the Transactions, as more particularly described in the Transaction
Description attached hereto as Exhibit A. Capitalized terms used but not defined herein have the meanings assigned
to them in the Exhibits and Annexes hereto.

 

In
connection with the foregoing, Macquarie Lender is pleased to advise you of its commitment to provide 100% of the Term Loan B Facility
(in such capacity, the “Initial Term B Lender”) and 100%
of the Revolving Credit Facility (in such capacity, the “Initial Revolving Lender” and together with
the Initial Term B Lender and each other Initial Revolving Lender and Initial Term B Lender that is appointed pursuant to Section A
of this Commitment Letter by virtue of such person becoming an Additional Arranger, the “Initial Lenders”),
in each case, subject solely to the applicable conditions set forth in paragraph E of this Commitment Letter and the Conditions
Exhibit attached hereto as Exhibit C (the “Conditions Exhibit”).

 

Accordingly, the parties
hereto agree as follows:

 

		A.	Titles and Roles.

 

It is agreed that Macquarie
Capital will act as lead arranger and bookrunner with respect to the Facilities (in such capacity, the “Lead Arranger”
and, together with all Additional Arrangers, collectively, the “Lead Arrangers”) and will perform the
duties and have the responsibilities customarily associated with such roles. It is further agreed that, notwithstanding anything
to the contrary contained herein, Macquarie shall have “left” and highest placement in any and all marketing materials
or other documentation used in connection with the Facilities (notwithstanding any appointment of any additional agents, arrangers
or bookrunners for the Facilities) and will perform the duties and have the responsibilities customarily associated with such roles
and name placement.

 

     

     

    

 

You may, on or prior
to the 15th business day after the Acceptance Date (as defined below), appoint additional lead arrangers, bookrunners,
managers, agents or co-agents in respect of the Facilities or confer other titles in respect of the Facilities (each such person,
an “Additional Arranger”) and you may allocate up to 40% in the aggregate of the commitments and corresponding
compensatory economics with respect to each Facility to such Additional Arrangers (it being agreed that (x) each such Additional
Arranger (or its affiliate) shall assume a proportion of the commitments with respect to each Facility that is equal to the proportion
of the economics allocated to such Additional Arranger (or its affiliate) in respect of such Facility and (y) the commitment
amounts of, and the economics allocated to, the Commitment Parties party hereto immediately prior to such appointment in respect
of the Facilities will be proportionately reduced by the commitment amounts of, and economics allocated to, each such Additional
Arranger (or its affiliate), in each case upon the execution and delivery by such Additional Arranger (or its affiliate) of customary
joinder documentation (which may be in the form of an amendment and restatement of this Commitment Letter) (the “Joinder”)
and, thereafter, each such Additional Arranger (and its affiliate) shall constitute a “Commitment Party” and “Lead
Arranger” and an “Initial Revolving Lender,” “Initial Term B Lender,” and “Initial Lender”
under this Commitment Letter and under the Fee Letter referred to below; provided, that no such Additional Arranger shall
receive a greater percentage of the economics with respect to the Facilities than Macquarie Capital.

 

Other than (i) pursuant
to the syndication of the Facilities as set forth below and (ii) in the immediately preceding paragraph, no additional agents,
co-agents, arrangers, managers or bookrunners will be appointed, and no other titles will be awarded, and, except as expressly
set forth herein, in the Fee Letter (as defined below), or in the definitive documentation for the Facilities (collectively, the
 “Financing Documentation”), no other compensation (other than that expressly contemplated by this Commitment
Letter and the Fee Letter) will be paid in connection with the Facilities unless you and we shall agree in writing.

 

The Company hereby
engages Macquarie Lender to act as sole administrative agent and collateral agent for each of the Facilities (the “Administrative
Agent”), in each case subject to the terms and conditions of this Commitment Letter.

 

In addition, please
note that Macquarie Capital has been retained by the Borrower as financial advisor (in such capacity, the “Financial
Advisor”) to the Borrower in connection with the Acquisition. You agree not to assert any claim you might allege
based on any actual or potential conflicts of interest that might be asserted to arise or result from, on the one hand, the engagement
of the Financial Advisor, and on the other hand, our and our affiliates’ relationships with you as described and referred
to herein. The parties hereto also agree that Macquarie shall be entitled to league table credit in connection with its role as
a financial advisor in respect of the Acquisition.

 

		B.	Syndication.

 

Subject
to the terms and conditions hereof, the Lead Arrangers intend to syndicate all or a portion of the Facilities to a group of banks,
financial institutions and other institutional lenders (together with the Initial Lenders, but excluding any Disqualified Institution
(as defined below), the “Lenders”), identified by the Lead Arrangers (in consultation with you and subject
to your consent (such consent not to be unreasonably withheld or delayed)) (including any relationship lenders designated by you
in consultation with us), that will participate in the Facilities; provided that, the Lead Arrangers will not syndicate
to (a) any person designated by the Company as a “Disqualified Institution” by written notice delivered
to the Administrative Agent prior to the date hereof, and (b) any other person that is a competitor of the Company or any
of its subsidiaries, which person has been designated by the Company as a “Disqualified Institution” by written notice
to (i) prior to the Closing Date, Macquarie or (ii) after the Closing Date, the Administrative Agent, or, in the case
of clause (a) or (b), any person that is clearly identifiable as an affiliate of any such designated person on the basis of
such person’s name (in each case, other than competitors and affiliates that are bona fide debt funds, investment vehicles
or fixed income investors that are primarily engaged in making, purchasing, holding or otherwise investing in commercial loans,
bonds or similar extensions of credit in the ordinary course of business, except to the extent otherwise disqualified pursuant
to clause (a) above); provided that no such written identification shall apply retroactively to disqualify any person
from being a Lender to the extent such person has already become a Lender; provided, further, that “Disqualified Institutions”
shall exclude any person that the Company has designated as no longer being a “Disqualified Institution” by written
notice to the Administrative Agent in accordance with the terms set forth above (collectively, the “Disqualified Institutions”).

 

    2

     

    

 

Subject to the other
terms and conditions of this Commitment Letter, the Lead Arrangers will manage all aspects of any syndication of the Facilities
in consultation with the Company, including the timing of all offers to potential Lenders, the determination of all amounts offered
to potential Lenders, the selection of Lenders (with your consent not to be unreasonably withheld or delayed and, in any case,
excluding Disqualified Institutions), the allocation of commitments among the Lenders, and the determination of compensation and
titles (such as co-agent, managing agent, etc.), if any, to be given to such Lenders. Notwithstanding the Lead Arrangers’
right to syndicate the Facilities and receive commitments with respect thereto, unless otherwise agreed to by you and except with
respect to the Additional Arrangers, (i) no Initial Lender shall be relieved or released from its obligations hereunder (including
its obligation to fund the Facilities on the Closing Date) in connection with any syndication, assignment or participation in the
Facilities, including its commitments to provide the Facilities hereunder, until the initial funding under the Facilities has occurred
on the Closing Date, (ii) no assignment by any Initial Lender shall become effective with respect to all or any portion of
any Initial Lender’s commitments to provide the Facilities hereunder until the initial funding of the Facilities and (iii) unless
you and we agree in writing, each Initial Lender will retain exclusive control over all rights and obligations with respect to
its commitments in respect of the Facilities, including all rights with respect to consents, modifications, supplements, waivers
and amendments, until the Closing Date has occurred.

 

We
intend to commence syndication efforts with respect to the Facilities promptly upon your execution and delivery to us of this Commitment
Letter and the Fee Letter, and until the earlier to occur of (i) the date that a Successful Syndication (as defined in the
Fee Letter) occurs and (ii) the date that is 45 days after the Closing Date (the period until such earlier date, the “Syndication
Period”), the Company agrees to use commercially reasonable efforts to actively assist, to the extent practical and
appropriate and not in contravention of any agreement, law, rule or regulation binding upon you, the Lead Arrangers in completing
a syndication of the Facilities reasonably satisfactory to the Company and us and will take all action as the Lead Arrangers may
reasonably request related thereto. Such assistance shall include: (i) using commercially reasonable efforts to make appropriate
members of senior management, advisors and representatives of the Company and its subsidiaries (and appropriate members of senior
management of the Acquired Business) available to potential Lenders and rating agencies at mutually agreed times and to provide
customary and reasonably available information to potential Lenders and rating agencies at such times and places as the Lead Arrangers
may reasonably request; (ii) using commercially reasonable efforts to ensure that the syndication effort benefits from the
existing lending and investment banking relationships of the Company and the Acquired Business; (iii) assisting (and, to the
extent permitted under the Acquisition Agreement, using commercially reasonable efforts to cause appropriate members of senior
management of the Acquired Business to assist) in the preparation and completion of customary Information Materials (as defined
below) reasonably satisfactory to the Lead Arrangers regarding the Company, the Acquired Business and the Facilities to be used
in connection with the syndication; (iv) the hosting with appropriate members of senior management of the Company and the
Lead Arrangers of one meeting with prospective Lenders at a mutually agreed time and location (which may be via video conference)
(and to the extent necessary, one or more conference calls at times to be mutually agreed upon with prospective Lenders in addition
to any such meeting, including pre-marketing meetings with individual prospective Lenders at mutually agreed times and locations
(which may be via video conference)); (v) using commercially reasonable efforts to prepare and provide promptly to
the Lead Arrangers all reasonably requested information with respect to the Company and its subsidiaries and the Acquired Business,
including without limitation financial projections (such projections, the “Projections”) and other financial
information reasonably requested by the Lead Arrangers in connection with the syndication of the Facilities and (vi) using
commercially reasonable efforts to attain public credit ratings (but not a specific rating) for the Facilities and public corporate
family ratings (but not a specific rating) for the Borrower from each of Standard & Poor’s Rating Services and Moody’s
Investors Service, Inc., prior to the launch of general syndication. For the avoidance of doubt, you will not be required
to provide any information to the extent that the provision thereof would violate any attorney-client privilege, law, rule or
regulation, or any obligation of confidentiality from a third party binding on you, the Acquired Business or any of your or their
respective affiliates (so long as such confidentiality obligation was not entered into in contemplation of the Transactions);
provided that you shall use commercially reasonable efforts to obtain the relevant consents under such obligations of confidentiality
to allow for the provision of such information to the extent reasonably requested by the Lead Arrangers; provided,
further that you will inform us, to the extent legally permitted, that you are withholding any information pursuant to the
foregoing. Your obligations under this Commitment Letter to use commercially reasonable efforts to cause the Acquired Business
or members of its management to take (or to refrain from taking) any action shall be subject to any applicable limitation on your
rights and obligations as set forth in the Acquisition Agreement. Notwithstanding anything herein to the contrary, the only financial
statements that shall be required to be provided to the Lead Arrangers as a condition precedent to closing shall be those required
to be delivered pursuant to the Conditions Exhibit.

 

    3

     

    

 

Notwithstanding anything
to the contrary contained in this Commitment Letter or the Fee Letter or any other letter agreement or undertaking concerning the
financing of the Transactions, neither the obtaining of the ratings referenced above, nor the commencement or completion of syndication,
or receipt of commitments in respect of, of the Facilities, nor the successful completion of the syndication of the Facilities,
nor the completion of the Information Materials nor compliance with any other provision set forth in this Commitment Letter (other
than the conditions set forth in in paragraph E of this Commitment Letter and the Conditions Exhibit), shall constitute a condition
to the commitments hereunder or to the funding of the Facilities on the Closing Date.

 

You
hereby acknowledge that (a) the Lead Arrangers will make available Information (as defined below), Projections and other offering
and marketing material and presentations, including confidential information memoranda (the “Information Memorandum”)
to be used in connection with the syndication of the Facilities (such Information, Projections, other offering and marketing material
and presentations and the Information Memorandum, collectively, with any marketing term sheet, the “Information Materials”)
on a confidential basis to the proposed syndicate of Lenders by posting the Information Materials on Intralinks, Debt X,
SyndTrak Online, Debtdomain or by similar electronic means and (b) certain of the Lenders may be “public side”
Lenders (i.e. Lenders that do not wish to receive material non-public information (“MNPI”) with respect
to you, the Acquired Business, your or their respective affiliates, or your or their respective securities and who may be engaged
in investment and other market related activities with respect to you, the Acquired Business, your or their respective affiliates,
or your or their respective securities) (each, a “Public Sider” and each Lender that is not a Public
Sider, a “Private Sider”). The Lead Arrangers and their respective affiliates shall be entitled to use
and rely upon the information contained in the Information Materials without responsibility for independent verification thereof.

 

    4

     

    

 

At
the request of the Lead Arrangers, you agree to assist us in preparing an additional version of the Information Materials to be
used in connection with the syndication of the Facilities that consists exclusively of information that is publicly available and/or
does not include MNPI with respect to you, the Acquired Business or your or their respective affiliates for the purpose
of United States federal and state securities laws, as determined in good faith by you, to be used by Public Siders. It is understood
that in connection with your assistance described above, customary authorization letters will be included in any Information Memorandum
that (i) authorize the distribution thereof to prospective Lenders, including a customary “10b-5” representation
with respect to the information set forth therein and (ii) confirm that the additional version of the Information Memorandum
does not include any MNPI. The Information Memorandum will include a provision that provides for exculpation for you, us and our
respective affiliates with respect to any liability related to the use of the contents of the Information Memorandum or related
offering and marketing materials or presentations by the recipients thereof. Before distribution of any Information Materials,
at the request of the Lead Arrangers, you agree to use commercially reasonable efforts to identify that portion of the Information
Materials that may be distributed to the Public Siders as “Public Information”, which, at a minimum, shall mean that
the word “PUBLIC” shall appear prominently on the first page thereof. By marking Information Materials as “PUBLIC”,
you shall be deemed to have authorized the Lead Arrangers, the proposed Lenders and their respective affiliates to treat such Information
Materials as not containing any MNPI (it being understood that you shall not be under any obligation to mark the Information Materials
 “PUBLIC”).

 

You acknowledge and
agree that the following documents may be distributed to both Private Siders and Public Siders, unless you advise the Lead Arrangers
in writing (including by email) within a reasonable time prior to their distribution that such materials should only be distributed
to Private Siders: (a) administrative materials prepared by the Lead Arrangers for prospective Lenders (such as a lender meeting
invitation, bank allocation, if any, and funding and closing memoranda), (b) term sheets and notification of changes in the
terms and conditions of the Facilities and (c) drafts and final versions of the Financing Documentation. If you advise us
in writing (including by email), within a reasonable period of time prior to dissemination, that any of the foregoing should be
distributed only to Private Siders, then Public Siders will not receive such materials without your consent (such consent not to
be unreasonably withheld or delayed).

 

To ensure an orderly
and effective syndication of the Facilities, the Company agrees that, until the expiration of the Syndication Period, the Company
will not, and will not permit its subsidiaries to, arrange, sell, syndicate or issue, attempt to arrange, sell, syndicate or issue,
announce or authorize the announcement of the arrangement, sale, syndication or issuance of any competing credit facilities or
debt security (including any renewals thereof) (other than (i) the Facilities, and (ii) any letters of credit, capital
leases, purchase money indebtedness and equipment financings) except with the prior written consent of the Lead Arrangers if such
arrangement, sale, syndication, issuance or discussion could reasonably be expected to materially impair the primary syndication
of the Facilities.

 

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		C.	Information Requirements

 

The Company represents
and warrants to the Lead Arrangers that (in the case of information relating to the Acquired Business prior to the Closing Date,
to its knowledge) (i) all written information (other than the Projections and other forward-looking information and information
of a general economic or industry-specific nature), that has been or will be made available to the Lead Arrangers or any of the
Lenders by the Company or any of their respective representatives (or on its or their behalf) in connection with the Transactions
(the “Information”) is or will be, when furnished and taken as a whole, correct in all material respects,
and does not or will not, when furnished and taken as a whole, contain any untrue statement of a material fact or omit to state
a material fact necessary in order to make the statements contained therein not materially misleading in light of the circumstances
under which such statements are made (after giving effect to all supplements and updates thereto) and (ii) the Projections
have been or will be prepared in good faith based upon assumptions that are believed by the Company to be reasonable at the time
prepared and at the time the related Projections are so furnished (it being understood that the Projections are as to future events
and are not to be viewed as facts, the Projections are subject to significant uncertainties and contingencies, many of which are
beyond the Company’s control, that no assurance can be given that any particular Projections will be realized and that actual
results during the period or periods covered by any such Projections may differ significantly from the projected results and such
differences may be material). The Company agrees to (a) provide prompt written notice to the Lead Arrangers if you become
aware that the representations and warranties made by you with respect to the Information and Projections contained in the preceding
sentence have become incorrect (to your knowledge with respect to Information and Projections relating to the Acquired Business
prior to the Closing Date) in any material respect at any time prior to the end of the Syndication Period and for any reason and
(b) promptly supplement (or use commercially reasonable efforts to supplement, in the case of Information relating to the
Acquired Business) the Information and the Projections from time to time so that the representations and warranties contained in
the preceding sentence remain correct (to your knowledge with respect to Information and Projections relating to the Acquired Business
prior to the Closing Date) in all material respects; provided that, the obligation to supplement the Information and Projections
under this sentence shall not in any event terminate prior to the Closing Date. In agreeing to the undertakings under this Commitment
Letter and in arranging and syndicating the Facilities, the Lead Arrangers are relying on the accuracy of the Information and the
Projections without independent verification thereof and do not assume responsibility for the accuracy or completeness of the Information
or Projections. For the avoidance of doubt, it is understood and agreed that the accuracy of the representations and warranties
set forth in this paragraph shall not be a condition to the commitments hereunder or the initial funding of the Facilities on the
Closing Date.

 

		D.	Fees & Expenses; Indemnification

 

1.            Fees &
Expenses. The Company agrees to pay or cause to be paid the fees described in this Commitment Letter and in the Fee Letter
dated the date hereof and delivered herewith with respect to the Facilities (the “Fee Letter”) on the
terms and subject to the conditions set forth therein. Further, the Company agrees, whether or not the Closing Date occurs, to
pay, or to reimburse the Commitment Parties on demand for, all reasonable and documented (in reasonable detail) out-of-pocket costs
and expenses (whether incurred before or after the date hereof) incurred by the Commitment Parties in connection with the Facilities,
the syndication of the Facilities, the preparation of the Financing Documentation, the due diligence related thereto and in connection
with the enforcement of any of any Commitment Party's rights and remedies hereunder or under the Fee Letter, including the reasonable
and documented (in reasonable detail) out-of-pocket fees, disbursements, and expenses of counsel to the Commitment Parties (limited
to Davis Polk & Wardwell LLP as counsel and Hogan Marren Babbo & Rose, Ltd. as special regulatory counsel
(and not in house counsel) and, if reasonably necessary, one local counsel in each relevant jurisdiction for all Commitment Parties,
taken as a whole (which may be a single local counsel acting in multiple jurisdictions) and, in the case of an actual or perceived
conflict of interest, one additional counsel in each relevant jurisdiction (which may be a single special counsel acting in multiple
jurisdictions) to each group of similarly situated affected Commitment Parties, taken as a whole). You acknowledge that we may
receive a benefit, including without limitation, a discount, credit or other accommodation, from any of such counsel based on the
fees such counsel may receive on account of their relationship with us including, without limitation, fees paid pursuant hereto.

 

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2.            Indemnification.  The
Company agrees to indemnify and hold harmless each Commitment Party, its affiliates and their respective directors, officers, employees,
agents, representatives, legal counsel, consultants, accountants and advisors, and each of their successors and permitted assigns
(each, an “Indemnified Person”) against, and to reimburse each Indemnified Person upon demand for, all
costs, losses, claims, damages, liabilities and other out-of-pocket expenses (“Losses”) incurred by such
Indemnified Person or asserted against such Indemnified Person by any third party or by the Company or any of its subsidiaries
or affiliates to the extent arising out of or in connection with this Commitment Letter, the Fee Letter, the Financing Documentation,
each of the Facilities, the use of the proceeds thereof, the Transactions or any other transaction related thereto, or any suit,
claim, litigation, investigation or other proceeding brought by the Company or the Company’s equity holders, affiliates or
creditors or any third person or otherwise related to any of the foregoing, and to reimburse each Indemnified Person within 30
days after receipt of a written request together with customary backup documentation in reasonable detail for any reasonable legal
or other out-of-pocket expenses incurred in connection with investigating or defending any of the foregoing, whether or not such
Indemnified Person or the Company or affiliate thereof is a party to any such proceeding (limited to one counsel (but not the in
house counsel of any Indemnified Person) and one regulatory counsel for all Indemnified Persons taken as a whole, and, if reasonably
necessary, one local counsel for all Indemnified Persons taken as a whole in each relevant jurisdiction (which may be a single
local counsel acting in multiple jurisdictions) and, in the case of an actual or perceived conflict of interest, one additional
counsel in each relevant jurisdiction (which may be a single special counsel acting in multiple jurisdictions) and one regulatory
counsel to each group of similarly situated affected Indemnified Persons taken as a whole); provided that the Company shall
not be liable to any particular Indemnified Person pursuant to this indemnity for any Losses to the extent that a court having
competent jurisdiction shall have determined by a final judgment (not subject to further appeal) that such Loss resulted from (i) the
gross negligence, bad faith or willful misconduct of such Indemnified Person or any of its Related Indemnified Persons (defined
below) or (ii) a material breach of the obligations of such Indemnified Person or any such Indemnified Person’s Related
Indemnified Persons under this Commitment Letter; provided, further, that the Company shall not be liable to any
particular Indemnified Person pursuant to this indemnity for any Losses for any suit, claim, litigation, investigation or other
proceeding that is brought by an Indemnified Person against any other Indemnified Person (other than (x) any claims against
an Indemnified Person acting in its capacity as an agent, arranger or similar role under the Facilities and (y) claims arising
out of any act or omission of the Company or any of your subsidiaries or affiliates, in each case, for the avoidance of doubt,
unless such claims would otherwise be excluded pursuant to clause (i) above). The Company shall not be liable for any settlement
of any suit, claim, litigation, investigation or other proceeding effected without its prior written consent (such consent not
to be unreasonably withheld or delayed). If any settlement of any suit, claim, litigation, investigation or other proceeding is
effected with the Company's written consent (or without the Company's consent as provided in the proviso of the preceding sentence)
or if there is a judgment by a court of competent jurisdiction in any such suit, claim, litigation, investigation or other proceeding,
the Company agrees to indemnify and hold harmless each Indemnified Person from and against any and all Losses by reason of such
settlement or judgment to the extent required by and in accordance with the other provisions of this Section D.2. The
Company shall not, without the prior written consent of any Indemnified Person, effect any settlement of any pending or threatened
proceeding in respect of which such Indemnified Person is a party and indemnity has been sought hereunder by such Indemnified Person.
None of the Indemnified Persons or the Company or your or their respective affiliates or the respective directors, officers, employees,
advisors, and agents shall be responsible or liable for (i) any damages arising from the use by others of the Information
or other materials obtained through electronic, telecommunications or other information transmission systems, except to the extent
any such damages are found in a final non-appealable judgment of a court of competent jurisdiction to have resulted from the gross
negligence, bad faith or willful misconduct of, or material breach of the obligations under this Commitment Letter by, such person
or entity (or any of its Related Indemnified Persons), or (ii) any special, indirect, punitive, exemplary or consequential
damages that may be alleged as a result of this Commitment Letter, the Fee Letter, any Facility, the use of proceeds, the Transactions
or any related transaction; provided, that nothing contained in this paragraph shall limit the Company’s indemnity
and reimbursement obligations to the extent such special, indirect, punitive, exemplary or consequential damages are included in
any third party claim with respect to which the applicable Indemnified Person is entitled to indemnification under this Section D.2.

 

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For purposes hereof,
a “Related Indemnified Person” of an Indemnified Person means (1) any controlling person or controlled
affiliate of such Indemnified Person, (2) the respective directors, officers, partners, members or employees of such Indemnified
Person or any of its controlling persons or controlled affiliates and (3) the respective agents or representatives of such
Indemnified Person or any of its controlling persons or controlled affiliates, in the case of this clause (3), acting on behalf
of or at the express instructions of such Indemnified Person, controlling person or such controlled affiliate; provided
that each reference to a controlled affiliate, director, officer or employee in this sentence pertains to a controlled affiliate,
director, officer or employee involved in the negotiation or syndication of this Commitment Letter and the Facilities.

 

		E.	Conditions

 

Notwithstanding
anything in this Commitment Letter, the Fee Letter, the Financing Documentation or any other letter agreement or other undertaking
concerning the financing of the transactions contemplated hereby to the contrary:

 

(i)           the
only conditions to the commitments hereunder and the availability and funding of any Facility on the Closing Date are those set
forth in the Conditions Exhibit and, upon satisfaction (or written waiver thereof by the Initial Lenders) of such conditions,
the initial funding of the Facilities shall occur; it being understood and agreed that there are no other conditions (implied
or otherwise) to the commitments hereunder or to the availability and funding of the Facilities on the Closing Date (including
compliance with the terms of this Commitment Letter, the Fee Letter, the Financing Documentation or the syndication of the Facilities)
other than the conditions set forth in the Conditions Exhibit;

 

(ii)          the
only representations and warranties the accuracy of which shall be a condition to the availability and funding of the Facilities
on the Closing Date shall be (a) such of the representations made by or with respect to the Acquired Business in the Acquisition
Agreement as are material to the interests of the Lenders, but only to the extent that you (or your applicable affiliate) have
the right (taking into account any applicable cure or notice provisions) to terminate your (or your applicable affiliate’s)
obligations under the Acquisition Agreement or to decline to consummate the Acquisition as a result of a breach of such representations
(to such extent, the “Specified Acquisition Agreement Representations”) and (b) the Specified Representations
(as defined below) (the representations described in clauses (a) and (b) being the “Closing Date Representations”);
and

 

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(iii)         the
terms of the Financing Documentation and any closing deliverables shall be in a form such that they do not impair the availability
or funding of the Facilities on the Closing Date if the conditions set forth in the Conditions Exhibit are satisfied (or waived
in writing by the Initial Lenders) (it being understood that, to the extent any Collateral (including the creation or perfection
of any security interest in any Collateral) is not or cannot be provided on the Closing Date (other than the perfection of
liens on Collateral that may be perfected by (x) the filing of financing statements under the UCC, or (y) the taking
delivery and possession of stock certificates of the Borrower’s material wholly-owned domestic restricted subsidiaries (other
than, (x) in the case of the Acquired Business, with respect to any such stock certificate that has not been made available
to you at least three (3) business days (as defined below) prior to the Closing Date, to the extent you have used commercially
reasonable efforts to procure delivery thereof, which may instead be delivered within ten (10) business days after the Closing
Date (or such later date as the Administrative Agent may reasonably agree) or (y) where physical delivery of any stock certificates
would be impractical because of mandatory restrictions imposed by governmental authorities as a result of COVID-19; provided
that, in the case of this clause (y), such stock certificates shall in any event be delivered to the Administrative Agent within
ten (10) Business Days after the Closing Date (or such later date as the Administrative Agent may reasonably agree)) (in each
case, to the extent certificated) evidencing the equity interests required to be pledged pursuant to the Term Sheet with respect
to which a lien may be perfected by the delivery of a stock certificate (together with a stock power or similar instrument or transfer
endorsed in blank)) after your use of commercially reasonable efforts to do so without undue burden or expense, then the provision
of any such Collateral (including the creation or perfection of any security interest in any Collateral) shall not constitute a
condition precedent to the availability or funding of the Facilities on the Closing Date, but may instead be provided within 90
days after the Closing Date pursuant to arrangements to be mutually agreed, subject to such extensions as are reasonably agreed
by the Administrative Agent).

 

“Specified
Representations” means the representations and warranties set forth in the Term Sheet and made by the Loan Parties
in the Financing Documentation relating to: incorporation or formation of the Loan Parties; organizational existence, power and
authority of the Loan Parties to execute, deliver and perform under the Financing Documentation; due authorization, execution,
delivery and enforceability of the Financing Documentation by and against the Loan Parties; solvency of the Company and its subsidiaries
on a consolidated basis as of the Closing Date after giving effect to the Transactions (to be determined in a manner consistent
with the solvency certificate in the form attached as Annex I to the Conditions Exhibit); no conflicts of the Financing
Documentation (limited to the execution, delivery and performance of the applicable Financing Documentation, incurrence of the
debt thereunder and the granting of guarantees and security interests in respect thereof) with organizational documents of the
Loan Parties; Federal Reserve margin regulations; the Investment Company Act of 1940, as amended; no use of proceeds of
the Facilities in violation of FCPA and OFAC; PATRIOT Act/“know your customer” laws and beneficial ownership regulations;
and the creation, validity and perfection of the security interests granted in the intended Collateral to be perfected (subject
in all respects to permitted liens as set forth in Loan Documentation and the limitations set forth in the foregoing provisions
of this Section). Notwithstanding anything to the contrary contained herein, if any of the Closing Date Representations is qualified
or subject to “material adverse effect”, the definition of “Material Adverse Effect” in the Acquisition
Agreement shall apply for the purposes of any representations and warranties made, or to be made, on or as of the Closing Date.

 

    9

     

    

 

This
paragraph E, and the provisions herein, shall be referred to as the “Limited Conditionality Provision”.

 

		F.	Miscellaneous

 

1.            Termination.
You may terminate this Commitment Letter and all or a portion (limited, in the case of any partial termination, to the commitments
in respect of the Revolving Credit Facility and/or up to $25 million of commitments in respect of the Term Loan B Facility) of
the commitments of the Commitment Parties hereunder with respect to the Facilities at any time upon written notice to the Commitment
Parties from you, subject to your surviving obligations as set forth in this Commitment Letter and the Fee Letter.

 

2.            No
Third-Party Beneficiaries. This Commitment Letter is solely for the benefit of the Company, the Commitment Parties and the
Indemnified Persons and may not be relied upon by any person or entity other than the parties hereto; no provision hereof shall
be deemed to confer rights on any other person or entity.

 

3.            No
Assignment; Amendment. Other than as set forth in paragraph A hereof, this Commitment Letter may not be assigned by any party
hereto to any other person or entity without the consent of the other parties hereto (and any attempted assignment without such
consent shall be null and void) and the Fee Letter may not be assigned by any party thereto to any other person or entity without
the consent of the other parties thereto (and any attempted assignment without such consent shall be null and void), and in each
case, all of the rights and obligations of the Company hereunder or under the Fee Letter, as applicable, shall inure to the benefit
and be binding upon the permitted successors and assigns of the Company, and all of the rights and obligations of the Commitment
Parties hereunder or under the Fee Letter, as applicable, shall inure to the benefit and be binding on any permitted successors
and assigns. Notwithstanding anything herein to the contrary, the Lead Arrangers (in their capacity as such, but not in their capacity
as Initial Lenders hereunder) may assign their respective rights and obligations to any of its affiliates without the consent of
any other party hereto, but no Lead Arranger shall be relieved of its obligations under this Commitment Letter. This Commitment
Letter may not be amended or modified or any provision hereof waived (unless otherwise expressly provided herein), in each case,
except in writing executed by each of the parties hereto.

 

4.            Governing
Law. This Commitment Letter and the Fee Letter and the rights and obligations of the parties hereunder and thereunder including
but not limited to the validity, interpretation, construction, breach, enforcement or termination hereof and thereof, and whether
arising in contract or tort or otherwise, shall be construed in accordance with and be governed by the law of the State of New
York; provided that the law of the State of Delaware (the “Acquisition Agreement Governing Law”)
shall govern in determining (i) the interpretation of a “Material Adverse Effect” (as defined in the Acquisition
Agreement) and whether a “Material Adverse Effect” has occurred, the accuracy of any Specified Acquisition Agreement
Representation and whether as a result of any inaccuracy thereof you or your applicable affiliate have the right or would have
the right (taking into account any applicable cure provisions) to terminate your or its obligations (or to refuse to consummate
the Acquisition) under the Acquisition Agreement and (ii) whether the Acquisition has been consummated in accordance with
the terms of the Acquisition Agreement (in each case, without regard to the principles of conflicts of laws thereof, to the extent
that the same are not mandatorily applicable by statute and would require or permit the application of the law of another jurisdiction)
(the matters referred to in this proviso, the “Acquisition Related Matters”). Each of the Company and
the Commitment Parties irrevocably waives all right to trial by jury in any action, proceeding or counterclaim (whether based on
contract, tort or otherwise) arising out of or related to this Commitment Letter, the Fee Letter, any Facility, the use of proceeds
thereof or the actions of the Commitment Parties in the negotiation, performance or enforcement hereof. Each of the parties hereto
irrevocably and unconditionally submits, for itself and its property, to the exclusive jurisdiction of any state court in the State
of New York or the United States District Court for the Southern District of New York for the purpose of any suit, action or proceeding
arising out of or relating to this Commitment Letter, any Facility and the use of proceeds thereof and irrevocably agrees that
all claims in respect of any such suit, action or proceeding may be heard and determined in any such court. Each of the Company
and the Commitment Parties irrevocably and unconditionally waives any objection that it may now or hereafter have to the laying
of venue of any such suit, action or proceeding brought in any such court and any claim that any such suit, action or proceeding
has been brought in an inconvenient forum. A final judgment in any such suit, action or proceeding brought in any such court may
be enforced in any other courts to whose jurisdiction the Company and the Commitment Parties are or may be subject, by suit upon
judgment. Service of any process, summons, notice or document on the Company may be made by registered mail addressed to the Company
at the address appearing at the beginning of this Commitment Letter for any suit, action or proceeding brought in any such court
pursuant to this Commitment Letter.

 

    10

     

    

 

5.            Survival.
The provisions of (a) this Section and the expense reimbursement, absence of fiduciary duty, indemnification, confidentiality,
governing law, service of process, jurisdiction, venue, waiver of jury trial, information, syndication and waiver of certain defenses
provisions of this Commitment Letter and (b) the Fee Letter shall, in each case, remain in full force and effect regardless
of, as applicable, whether definitive financing documentation shall be executed and delivered in connection with the Facilities
and notwithstanding the termination or expiration of this Commitment Letter or the Commitment Parties’ commitments or agreements
hereunder; provided that your obligations under this Commitment Letter (other than your obligations with respect to (i) expense
reimbursement and indemnification as set forth in Section D above, (ii) confidentiality as set forth in Section F.6.
below, (iii) governing law, jurisdiction, waiver of jury trial and service of process as set forth in Section F.4. above,
(iv) waiver of certain defenses as set forth in Section F.4. above, (v) syndication and information as set forth
in Section B above (including the “flex” provisions of the Fee Letter, which will survive until the expiration
of the Syndication Period) and (vi) the confidentiality of the Fee Letter and the contents thereof) shall automatically terminate
and be superseded by the provisions of the Financing Documentation upon the initial funding thereunder, and you shall automatically
be released from all liability in connection therewith at such time; provided, further, that in the event of any
conflict between the provisions of this Commitment Letter that survive the initial funding under the Financing Documentation and
the corresponding provisions of the Financing Documentation, the provisions of the Financing Documentation shall govern.

 

6.            Confidentiality.
The Company will not disclose or permit disclosure of this Commitment Letter or the Fee Letter nor the contents of this Commitment
Letter or the Fee Letter, without the consent of the applicable Commitment Party, to any person or entity, either directly or indirectly,
orally or in writing, except (i) to the Company’s affiliates and the Seller and their and the Company’s respective
officers, employees, directors, agents, shareholders, partners, members, accountants, advisors, investors, potential investors,
consultants, professionals, legal counsel and other experts or agents, in each case to the extent involved in the Transactions
on a confidential basis (provided that any disclosure of the Fee Letter or its contents to the Seller or its officers, employees,
directors, agents, shareholders, partners, members, accountants, advisors, investors, potential investors, consultants, professionals,
legal counsel and other experts or agents shall be redacted in a manner reasonably satisfactory to the Commitment Parties, including
in respect of any fees, interest rates and other economic terms that could not adversely affect the conditionality, enforceability,
termination or aggregate principal amount of the financing contemplated thereby, unless, in either case, the Commitment Parties
otherwise consent), (ii) as required by applicable law, rule or regulation or compulsory legal process or pursuant to
a subpoena or order of any judicial, administrative or legislative body or committee or in any pending legal, judicial or administrative
proceeding or as requested by a governmental authority or regulatory or self-regulatory authority, upon the reasonable advice of
your legal counsel (in which case the Company agrees to inform the Commitment Parties prior to such disclosure to the extent practicable
and not prohibited by applicable law), (iii) the existence of this Commitment Letter and the contents of the Term Sheet (but
not this Commitment Letter or the Fee Letter) may be disclosed to any rating agency in connection with the transactions contemplated
hereby, (iv) in connection with the exercise of any remedy or the enforcement of any of the Company’s rights hereunder
or the Fee Letter, (v) the Commitment Letter and the contents hereof (but not the Fee Letter or the contents thereof) in any
syndication or other marketing materials, prospectus or other offering memorandum, or any public or regulatory filing in each case
relating to the Facilities, and (vi) if we consent in writing to such proposed disclosure, in each case, on a confidential
basis; provided that the Company may disclose (a) the aggregate fee amounts and interest expense contained herein or
in the Fee Letter as part of Projections, pro forma information or a generic disclosure of aggregate sources and uses related to
fee amounts related to the transactions contemplated hereby to the extent customary or required in offering and marketing materials
for the Facilities or in any public filing relating to the transactions contemplated hereby and (b) this Commitment Letter,
the Fee Letter and the contents hereof and thereof to any prospective equity investor or Additional Arrangers, in each case, on
a confidential basis. The Company and your affiliates’ obligations under this paragraph (other than in respect of the Fee
Letter and the fees and substance thereof) shall terminate automatically upon the Closing Date; provided that, in any event,
the provisions of this paragraph shall automatically terminate on the second anniversary of the date hereof.

 

    11

     

    

 

The Lead Arrangers
and their respective affiliates will use all non-public information provided to us or such affiliates by or on behalf of the Company
or your affiliates hereunder or in connection with the Facilities solely for the purpose of providing the services which are the
subject of this Commitment Letter and shall treat confidentially all such information and shall not publish, disclose or otherwise
divulge such information; provided, that nothing herein shall prevent the Commitment Parties and their affiliates from disclosing
any such information (a) pursuant to the order of any court or administrative agency or in any pending legal, judicial or
administrative proceeding, or otherwise as required by applicable law or compulsory legal process or to the extent requested or
required by governmental and/or regulatory authorities (including any self-regulatory authorities), in each case, based on the
advice of counsel (in which case the Commitment Parties agree (except with respect to any audit or examination conducted by bank
accountants or any regulatory authority (including any self-regulatory authorities) exercising examination or regulatory authority
(including any self-regulatory authorities) or in cases where any governmental and/or regulatory authority (including any self-regulatory
authorities) has requested otherwise), to the extent practicable and not prohibited by applicable law, rule, or regulation, to
inform the Company thereof as soon as practicable prior to disclosure), (b) upon the request or demand of any governmental
or regulatory authority (including any self-regulatory authorities) having jurisdiction over the Commitment Parties or any of their
affiliates (in which case the Commitment Parties agree (except with respect to any audit or examination conducted by bank accountants
or any regulatory authority (including any self-regulatory authorities) exercising examination or regulatory authority or in cases
where any governmental and/or regulatory authority has requested otherwise), to the extent practicable and not prohibited by applicable
law, to inform the Company thereof as soon as practicable prior to disclosure), (c) to the extent that such information becomes
publicly available other than by reason of improper disclosure by the Commitment Parties or any of their affiliates, officers,
directors, employees, legal counsel, auditors, professionals or agents in violation of any confidentiality obligations owing to
the Company or any of its affiliates (including those set forth in this paragraph), (d) to the extent that such information
is received by the Commitment Parties from a third party that is not, to the Commitment Parties’ knowledge, subject to contractual
or fiduciary confidentiality obligations owing to the Company, the Company’s investors or any of their respective affiliates
or related parties, (e) to the extent that such information is independently developed by the Commitment Parties without the
use of confidential information, (f) to the Commitment Parties’ affiliates and to its and their respective directors,
officers, shareholders, partners, employees, legal counsel, independent auditors, advisors, consultants, professionals and other
experts or agents who need to know such information in connection with the Facilities, the use of proceeds thereof, or any other
transaction contemplated hereby, and who are informed of the confidential nature of such information and have been advised of their
obligation to keep information of this type confidential, (g) to actual, potential or prospective Lenders, agents, arrangers,
participants or assignees and to any direct or indirect contractual counterparty to any swap or derivative transaction relating
to the Company or any of the Company’s subsidiaries, in each case who agree to be bound by the terms of this paragraph (or
language substantially similar to this paragraph); provided, that the disclosure of any such information to any such Lender,
agent, arranger, participant or assignee shall be made subject to the acknowledgment and acceptance by such Lender, agent, arranger,
participant or assignee that such information is being disseminated on a confidential basis (on substantially the terms set forth
in this paragraph or customary in the term loan syndication loan market or as is otherwise reasonably acceptable to the Company
and the Commitment Parties, including, without limitation, as agreed in any marketing materials) in accordance with the standard
syndication processes of the Commitment Parties (which shall in any event be no less protective than customary market standards)
for dissemination of such type of information (including “click-through” agreements), (h) for purposes of establishing
a “due diligence” defense in any legal proceeding (i) to rating agencies or (j) to the extent the Company
shall have consented to such disclosure in writing. The Commitment Parties’ and their affiliates’ obligations under
this paragraph shall terminate automatically and be superseded by the confidentiality provisions in the applicable Financing Documentation
upon the Closing Date; provided, that, in any event, the provisions of this paragraph shall automatically terminate on the second
anniversary of the date hereof.

 

    12

     

    

 

The Lead Arrangers
may, in consultation with you, place a standard “tombstone” or other advertisement in financial and other newspapers
and journals, or otherwise, at its own expense describing its services to the Company hereunder and under the Financing Documentation.
The Lead Arrangers agree to provide the Company with sufficient time to review any reference to the Company or its affiliates in
connection with the Facilities or the transactions contemplated hereby contained in any press release or similar written disclosure
prior to public release.

 

Without limitation
of the foregoing, the Company hereby authorizes the Lead Arrangers and their respective affiliates to download copies of its and
its affiliates’ trademark logos from its and its affiliates’ websites and: (i) post copies thereof on the workspace
established by the Lead Arrangers to syndicate the Facilities and (ii) use such logos on any confidential information memorandum,
presentations and other marketing materials prepared in connection with the syndication of the Facilities.

 

    13

     

    

 

7.            No
Fiduciary Duty. The Company acknowledges and agrees that (i) the transactions contemplated pursuant to this Commitment
Letter and the Fee Letter are an arm’s-length commercial transaction between you and your affiliates, on the one hand and
the Commitment Parties, on the other, and you are capable of evaluating and understanding, and do understand and accept, the terms,
risks and conditions of the transactions contemplated by this Commitment Letter and the Fee Letter; (ii) in connection with
the transactions contemplated hereby and the process leading to such transactions, the Commitment Parties are and have been acting
solely as a principal and is not the agent or fiduciary of the Company or its affiliates, stockholders, creditors, employees or
any other party; (iii) the Commitment Parties have not assumed an advisory responsibility or fiduciary duty in favor of the
Company with respect to the transactions contemplated hereby or the process leading thereto (irrespective of whether the Commitment
Parties have advised or is currently advising the Company on other matters) and the Commitment Parties have no obligation to the
Company except those expressly set forth in this Commitment Letter and the Fee Letter; (iv) the Commitment Parties and their
affiliates may be engaged in a broad range of transactions that involve interests that differ from those of the Company and its
affiliates, and the Commitment Parties have no obligation to disclose any of such interests by virtue of any fiduciary or advisory
relationship as a consequence of this Commitment Letter or the Fee Letter; and (v) the Commitment Parties have not provided
any legal, accounting, regulatory or tax advice with respect to any of the transactions contemplated hereby and the Company has
consulted its own legal, accounting, regulatory and tax advisors to the extent it deemed appropriate. The Company waives and releases,
to the fullest extent permitted by law, any claims that it may have against the Commitment Parties with respect to any breach or
alleged breach of fiduciary duty as a consequence of this Commitment Letter or the Fee Letter.

 

You
acknowledge that each Lead Arranger is a full service financial firm engaged in trading, market making and brokerage activities
as well as providing commercial and investment banking investment management, financial advisory, principal investment,
financial planning, benefits counseling, risk management, hedging, financing, and other financial and non-financial services. In
the ordinary course of business, the Lead Arrangers or their respective affiliates may provide investment banking and other financial
services to, and/or acquire, hold or sell, for its own accounts and the accounts of customers, equity, debt and other securities
and financial instruments (including bank loans and other obligations) of, you, and your affiliates and your and their respective
subsidiaries and other companies with which you, your affiliates and your and their respective subsidiaries may have commercial
or other relationships. With respect to any securities or financial instruments so held by the Lead Arrangers or any of their respective
affiliates or any of its customers, all rights in respect of such securities and financial instruments, including any voting rights,
will be exercised by the holder of the rights, in its sole discretion.

 

You also acknowledge
that the Lead Arrangers and their respective affiliates may be providing debt financing, equity capital or other services (including
financial advisory services) to other persons or companies in respect of which you or your affiliates may have conflicting interests
regarding the transactions described herein or otherwise. None of the Lead Arrangers nor any of their respective affiliates will,
however, furnish confidential information obtained from you by virtue of the transactions contemplated by this Commitment Letter
or its other relationships with you to other persons or companies (other than your affiliates). You also acknowledge that the Commitment
Parties have no obligation to use in connection with the Transactions or this Commitment Letter or the Fee Letter, or to furnish
to you, confidential information obtained by it from other persons or companies.

 

    14

     

    

 

8.            Affiliates.
The Lead Arrangers reserve the right to employ the services of its affiliates or branches in providing services contemplated hereby
or by the Fee Letter and, to the extent so employed, such affiliates and branches shall be entitled to the benefits and protections
afforded to, and subject to the provisions governing the conduct of, the Lead Arrangers hereunder and under the Fee Letter, but
no Lead Arranger shall be relieved of its obligations under this Commitment Letter or the Fee Letter.

 

9.            Enforceability.
Each of the parties hereto agrees that (i) this Commitment Letter is a binding and enforceable agreement with respect to the
subject matter herein, including an agreement to negotiate in good faith definitive documentation for the Facilities by the parties
hereto in a manner consistent with this Commitment Letter, it being acknowledged and agreed that the commitments provided hereunder
are subject only to the conditions set forth in paragraph E of this Commitment Letter and the Conditions Exhibit and (ii) the
Fee Letter is a binding and enforceable agreement with respect to the subject matter contained therein; provided that nothing
contained in this Commitment Letter or the Fee Letter obligates you or any of your affiliates to consummate the Transactions or
to draw upon all or any portion of the Facilities.

 

10.          Counterparts.
This Commitment Letter and the Fee Letter may be executed in multiple counterparts, and by different parties hereto in any number
of separate counterparts, all of which taken together shall constitute one original. Delivery of an executed counterpart of a signature
page to this Commitment Letter or the Fee Letter by telecopier or by electronic transmission (in pdf form) shall be as effective
as delivery of a manually executed counterpart hereof.

 

11.          Entire
Agreement. This Commitment Letter and the Fee Letter embody the entire agreement and understanding among the Commitment Parties,
the Company and their affiliates with respect to the Facilities, and supersede all prior understandings and agreements among the
parties relating to the subject matter hereof. However, the terms and conditions of the undertakings of the Commitment Parties
and the undertaking of the Commitment Parties hereunder are not limited to those set forth herein or in the Fee Letter; those matters
not covered or made clear herein are subject to mutual agreement of the parties.

 

12.          PATRIOT
Act. The Commitment Parties and each Lender hereby notifies the Company that pursuant to the requirements of the USA PATRIOT
Act, Title III of Pub. L. 107-56 (signed into law October 26, 2001) (as amended from time to time, the “PATRIOT
Act”) and 31 C.F.R. § 1010.230 (as amended from time to time, the “Beneficial Ownership Regulation”),
it and its affiliates are required to (i) obtain, verify and record information that identifies the Company, each borrower,
and each guarantor of the Facilities, which information includes the names, addresses, tax identification numbers and other information
regarding the Company, such borrowers, and such guarantors that will allow the Commitment Parties and such Lender to identify the
Company, such borrowers, and such guarantors in accordance with the PATRIOT Act and (ii) obtain a certification regarding
beneficial ownership (a “Beneficial Ownership Certification”) from any Borrower and any Guarantor under
the Facilities, which certification shall be similar in form and substance to the form of Certification Regarding Beneficial Owners
of Legal Entity Customers published jointly, in May 2018, by the Loan Syndications and Trading Association and Securities
Industry and Financial Markets Association. This notice is given in accordance with the requirements of the PATRIOT Act and is
effective for the Commitment Parties, each Lender and their respective affiliates. You hereby acknowledge and agree that the Commitment
Parties shall be permitted to share any or all such information with the Lenders.

 

    15

     

    

 

If the foregoing
correctly sets forth our agreement, please indicate your acceptance of the terms of this Commitment Letter and the Fee Letter
by returning to us executed counterparts of this Commitment Letter and the Fee Letter not later than 11:59 p.m., New York
City time, on October 28, 2020. This offer will automatically expire at such time if we have not received such executed
counterparts in accordance with the preceding sentence (the date of receipt by us of such executed counterparts, the
 “Acceptance Date”). In the event that the initial borrowing under the Facilities does not occur on
or before the Expiration Time (as defined below), then this Commitment Letter and the commitments hereunder shall
automatically terminate unless we shall, in our discretion, agree to an extension and subject to your surviving obligations
as set forth in Section E.5. and the Fee Letter. “Expiration Time” means 11:59 p.m., New York
City time, on the day that is the earliest of (i) the Closing Date, (ii) the consummation of the Acquisition with
or without the funding of the Facilities, (iii) five (5) business days following the termination by you of the
Acquisition Agreement prior to the closing of the Acquisition and (iv) five business days following the “End
Date” (as defined in, and as it may be extended pursuant to the express provisions of, the Acquisition Agreement as in
effect on the date hereof, but which shall not exceed December 31, 2021); provided that the termination of any
commitment pursuant to this sentence does not, subject to the other provisions of this Commitment Letter, prejudice your
rights and remedies in respect of any prior breach or repudiation of this Commitment Letter.

 

[Signature Pages Follow]

 

    16

     

    

 

We look forward to
working with you on this important transaction.

 

	 	Very truly yours,
	 	 
	 	MACQUARIE CAPITAL (USA) INC.
	 	 
	 	By:	/s/ Michael Barrish
	 	Name: Michael Barrish
	 	Title: Managing Director
	 	 
	 	By:	/s/ Ayesha Farooqi
	 	Name: Ayesha Farooqi
	 	Title: Managing Director
	 	 
	 	 
	 	MACQUARIE CAPITAL FUNDING LLC
	 	 
	 	By:	/s/ Michael Barrish
	 	Name: Michael Barrish
	 	Title: Authorized Signatory
	 	 
	 	By:	/s/ Ayesha Farooqi
	 	Name: Ayesha Farooqi
	 	Title: Authorized Signatory

 

    

    

    

 

	ACCEPTED AND AGREED	 
	as of the date first written above:	 
	 	 
	AMERICAN PUBLIC EDUCATION, INC.	 
	 	 
	By:	/s/ Angela K. Selden	 

	Name:	Angela K. Selden	 
	Title:	President and CEO	 

 

[Signature Page to
Project Hometown Fee Letter]

 

    

    

    

 

CONFIDENTIAL

 

EXHIBIT A

 

Project
Hometown

$195,000,000
Senior Secured Credit Facilities

 

Transaction
Description

 

Capitalized terms used
but not defined in this Exhibit A (the “Transaction Description”) shall have the meanings
set forth in the other Exhibits and Annexes to the Commitment Letter to which this Transaction Description is attached (the “Commitment
Letter”) or in the Commitment Letter.

 

American Public Education, Inc.,
a Delaware corporation (the “Company”), intends to, directly or indirectly acquire (the “Acquisition”)
all of the units of membership interests in Rasmussen, LLC, a Delaware limited liability company (the “Target,”
and the Target, together with all subsidiaries of the Target, the “Acquired Business”) from FAH Education,
LLC, a Delaware limited liability company (the “Seller”) pursuant to the Membership Interest Purchase
Agreement dated as of October 28, 2020 (together with the exhibits and schedules thereto, such agreement as in effect on the
date hereof the “Acquisition Agreement”), and concurrently with the consummation of the Acquisition,
refinance in full all amounts due or outstanding under the Credit Agreement, dated as of March 15, 2019 (as amended by the
First Amendment to Credit Agreement, dated as of May 2, 2019, the Second Amendment to Credit Agreement, dated as of February 10,
2020 and the Third Amendment to Credit Agreement, dated as of June 19, 2020, the “Existing Credit Agreement”),
by and among Rasmussen College, LLC, the Seller, the Target, the other obligors party thereto and SunTrust Bank as administrative
agent (the “Refinancing”).

 

The
sources of funds needed to effect the Acquisition and the Refinancing and to pay all fees and expenses incurred in connection with
the Transactions (the “Transaction Costs”) are expected to be financed from (i) available cash of
the Borrower, (ii) a $175 million term loan facility (subject to increase at the Borrower’s election, to the
extent required to account for any original issue discount and/or upfront fees with respect to the Facilities required pursuant
to the exercise of the “market flex” provisions of the Fee Letter) (the “Term Loan B Facility”),
(iii) a $20 million cash flow revolving credit facility (the “Revolving Credit Facility”, and together
with the Term Loan B Facility, the “Facilities”; and the definitive documentation for the Facilities
is referred to herein as the “Financing Documentation”) and (iv) the issuance by the Company of
its Series A Preferred Stock to the Seller (the “Series A Preferred Stock”). The date on which
the Acquisition and the Refinancing are consummated and the initial borrowings are made under the Term Loan B Facility is referred
to herein as the “Closing Date”. The transactions described in this Exhibit A are collectively referred
to herein as the “Transactions”.

 

     

     

    

 

CONFIDENTIAL

 

EXHIBIT B

 

Project
Hometown

$195,000,000
Senior Secured Credit Facilities

Summary
of Principal Terms and Conditions

 

Set forth below is a summary of the principal
terms and conditions for the Facilities (as defined below). Capitalized terms used but not defined in this “Summary of Principal
Terms and Conditions” (the “Term Sheet”) shall have the meanings set forth in the other Exhibits
and Annexes to the Commitment Letter to which this Term Sheet is attached (the “Commitment Letter”) or
in the Commitment Letter. In the case of any such capitalized term that is subject to multiple and differing definitions, the appropriate
meaning thereof in this Term Sheet shall be determined by reference to the context in which it is used.

 

	Borrower:	 	American Public Education, Inc., a Delaware corporation (the “Borrower”).
	 	 	 
	Administrative Agent:	 	Macquarie Capital Funding LLC will act as sole administrative agent and sole collateral agent in respect of the Facilities (collectively, in such capacities, the “Administrative Agent”) and will perform the duties customarily associated with such roles.
	 	 	 
	Lead Arranger and Bookrunner:	 	Macquarie Capital (USA) Inc. will act as lead arranger and bookrunner for the Facilities (the “Lead Arranger”) and will perform the duties customarily associated with such roles.
	 	 	 
	Facilities:	 	
        A. Term Loan B Facility

         

        1. Amount: Term loan facility in
        an aggregate principal amount of $175 million (the “Term Loan B Facility”) (subject to increase at the
        Borrower’s election, to the extent required to account for any original issue discount and/or upfront fees with respect to
        the Facilities required pursuant to the exercise of the “market flex” provisions of the Fee Letter).

         

        2. Use of Proceeds: The loans made
        pursuant to the Term Loan B Facility (the “Term B Loans,” and the Lenders under the Term B Loans, the
        “Term B Lenders”) may only be incurred on the Closing Date and the proceeds thereof shall be utilized
        solely to finance, in part, the Acquisition and the Refinancing and to pay the Transaction Costs.

         

        3. Maturity: The final maturity
        date of the Term Loan B Facility shall be 6 years from the Closing Date (the “Term Loan B Maturity Date”).

 

     

     

    

 

	 	 	
        4. Amortization: (i) The Term
        Loan B Facility will amortize in equal quarterly instalments in an aggregate amount equal to 5% per annum of the original aggregate
        principal amount of the Term Loan B Facility, beginning with the first full fiscal quarter ending after the Closing Date, with
        the balance payable on the maturity date of the Term Loan B Facility; provided that the Financing Documentation shall provide
        the right for individual Term B Lenders to agree to extend the maturity date of all or a portion of the outstanding loans under
        the Term Loan B Facility upon the request of the Borrower and without the consent of any other Term B Lender; it being understood
        that each Term B Lender under the applicable tranche or tranches of the Term Loan B Facility that are being extended shall have
        the opportunity to participate in such extension on the same terms and conditions as each other Term B Lender in such tranche or
        tranches (it further being understood that no existing Term B Lender will have any obligation to commit to any such extension);
        provided, further, that any such extension, without limitation, may, subject to the Borrower’s consent, contain
        an increase in the interest rate payable with respect to such extended loans, with such extensions not subject to any “default
        stoppers”, financial tests or “most favored nation” pricing provisions, but, subject to exceptions to be agreed
        (including providing for covenants and terms that apply solely to any period after the latest maturity date of any non-extending
        Term Loans), shall be on terms that are not materially more favorable to lenders agreeing to such extension than the terms of the
        Term Loan B Facility.

         

        5. Availability: Term B Loans may
        only be incurred on the Closing Date. No amount of Term B Loans once repaid may be reborrowed.

         

        B. Revolving Credit Facility

         

        1. Amount: Revolving credit facility
        in an aggregate principal amount of $20 million (the “Revolving Credit Facility” and, together with the
        Term Loan B Facility, the “Facilities”).

         

        2. Use of Proceeds: The proceeds
        of loans under the Revolving Credit Facility (the “Revolving Loans,” and the Lenders under the Revolving
        Credit Facility, the “Revolving Lenders”) shall be utilized for working capital, capital expenditures
        and general corporate purposes of the Borrower and its restricted subsidiaries; provided that, the Revolving Credit Facility may
        not be utilized on the Closing Date to pay amounts owing to finance the Acquisition and the Refinancing or to pay any Transaction
        Costs, except (i) to the extent required to account for or fund any original issue discount and/or upfront fees with respect
        to the Facilities required pursuant to the exercise of the “market flex” provisions of the Fee Letter, (ii) Letters
        of Credit (as defined below) may be issued on the Closing Date to replace or provide credit support for any existing letters of
        credit (including by “grandfathering” such existing letters of credit into the Revolving Credit Facility), (iii) for
        purchase price adjustments or equivalent adjustments, (iv) to pay amounts owing to finance the Acquisition and the Refinancing
        or to pay any Transaction Costs and (v) to fund working capital needs; provided that amounts in respect of clauses
        (iii), (iv) and (v) shall not exceed $5 million.

 

    	 	C-2	 

     

    

 

	 	 	
        3. Maturity: The final maturity
        date of the Revolving Credit Facility shall be 5 years from the Closing Date (the “Revolving Loan Maturity Date”);
        provided that the Financing Documentation shall provide the right for individual Revolving Lenders to agree to extend the
        commitments and/or the maturity date of all or a portion of the outstanding loans under the Revolving Credit Facility upon the
        request of the Borrower and without the consent of any other Revolving Lender; it being understood that each Revolving Lender under
        the applicable tranche or tranches of the Revolving Facility that are being extended shall have the opportunity to participate
        in such extension on the same terms and conditions as each other Revolving Lender in such tranche or tranches (it further being
        understood that no existing Revolving Lender will have any obligation to commit to any such extension); provided, further,
        that any such extension, without limitation, may, subject to the Borrower’s consent, contain an increase in the interest
        rate payable with respect to such extended commitments and/or loans, with such extensions not subject to any “default stoppers”,
        financial tests or “most favored nation” pricing provisions.

         

        4. Availability: Revolving Loans
        may be borrowed, repaid and reborrowed on and after the Closing Date and prior to the Revolving Loan Maturity Date in accordance
        with the terms of the Financing Documentation. Revolving Loans shall be funded in United States dollars and such other currencies
        as may be approved by the Administrative Agent and the Revolving Lenders.

         

        5. Letters of Credit: Up to the
        full amount of the Revolving Credit Facility will be available for the issuance of stand-by letters of credit (“Letters
        of Credit”) by Macquarie Lender and each Additional Agent (or its lending affiliate) participating in the Revolving
        Credit Facility on the Closing Date (each, an “Issuing Lender”) to support obligations of the Borrower
        and its restricted subsidiaries; provided that Macquarie Lender shall only be required to issue standby letters of credit
        denominated in U.S. dollars; provided, further that each Issuing Lender shall have a letter of credit commitment that is
        proportionate with its commitment under the Revolving Credit Facility and shall issue Letters of Credit pro rata based on such
        letter of credit commitment. Maturities for Letters of Credit will not exceed twelve months (unless otherwise agreed to the applicable
        Issuing Lender), renewable annually thereafter in the case of standby Letters of Credit and, in any event, shall not extend beyond
        the fifth business day prior to the Revolving Loan Maturity Date (except to the extent cash collateralized or backstopped pursuant
        to arrangements acceptable to the applicable Issuing Lender). Letter of Credit outstandings will reduce availability under the
        Revolving Credit Facility on a dollar-for-dollar basis. Each Lender under the Revolving Credit Facility shall acquire an irrevocable
        and unconditional pro rata participation in all Letter of Credit outstandings.

 

    	 	C-3	 

     

    

 

	Swingline Loans:	 	A portion of the Revolving Credit Facility in an amount of not less than $5 million (the “Swingline Sublimit”) shall be available for swingline loans (the “Swingline Loans”) from the Administrative Agent (in its capacity as swingline lender, the “Swingline Lender”) on same-day notice. Except for purposes of calculating the commitment fee described in Annex I to the Fee Letter, any Swingline Loans will reduce availability under the Revolving Credit Facility on a dollar-for-dollar basis. Each Lender under the Revolving Credit Facility shall be irrevocably and unconditionally required to purchase, under certain circumstances, a participation in each Swingline Loan on a pro rata basis. Swingline Loans shall be funded in United States dollars.

 

    	 	C-4	 

     

    

 

	Incremental Facilities:	 	The Borrower will have the right to obtain from existing Lenders or prospective lenders incremental commitments (in each case in an aggregate principal amount of not less than $5.0 million) consisting of one or more (i) increases to the Revolving Credit Facility or increases in existing classes of term loans (any such increase, an “Incremental Increase”), and/or (ii) separate classes of additional term loans (“Incremental Term Loans”) to be made available under the Financing Documentation (each, an “Incremental Term Facility” and, together with the Incremental Increases, the “Incremental Facilities”) in an aggregate amount not to exceed the sum of (w) an amount equal to (I) the greater of (i) $91 million and (ii) 100% of Consolidated EBITDA minus (II) the aggregate principal amount of Incremental Equivalent Debt incurred in reliance on this clause (w) minus (III) the aggregate principal amount of Permitted Ratio Debt (as defined below) incurred in reliance on this clause (w); plus (x) all voluntary prepayments, debt buybacks (which shall be credited to the extent of the actual purchase price paid in cash for such loans purchased or retired in connection with such buyback), and payments utilizing the yank-a-bank provisions of the Term B Loans, any Incremental Term Loans, Revolving Loans (to the extent accompanied by a permanent reduction of the underlying commitment) and/or any prepayments or repurchases, redemptions and other retirements of Incremental Equivalent Debt (as defined below) (other than voluntary prepayments, repurchases, redemptions and other retirements to the extent funded by a contemporaneous refinancing with long-term funded indebtedness); provided that such amount may only be utilized to incur indebtedness that is pari passu with or junior to the indebtedness prepaid or repaid (the amount under clauses (w) and (x), the “Incremental Dollar Basket”); plus (y) an additional amount (the amount available under this clause (y), the “Incremental Ratio Basket”), so long as, on a pro forma basis after giving effect to the incurrence of any Incremental Facility, any acquisition consummated in connection therewith, any refinancing of debt and all other appropriate pro forma adjustments and subject to, in each case as of the effective date of the respective Incremental Facility, (1) if such Incremental Facility is secured by a lien on the Collateral (as defined below) that is pari passu with the lien securing the Facilities, the First Lien Net Leverage Ratio (as defined below) does not exceed 0.50x above the Closing Date First Lien Net Leverage Ratio (as defined below) (or, in the case of any Incremental Facility incurred to finance a Permitted Acquisition or similar investment permitted under the Financing Documentation, the First Lien Net Leverage Ratio as of the last day of the then most recently ended fiscal quarter for which financial statements have been (or were required to have been) delivered), (2) if such Incremental Facility is secured by a lien on the Collateral that is junior to the lien securing the Facilities, such Incremental Facility shall be subject to an intercreditor agreement reasonably acceptable to the Administrative Agent, and the Secured Net Leverage Ratio (as defined below) does not exceed 0.75x above the Closing Date Secured Net Leverage Ratio (as defined below)(or, in the case of any Incremental Facility incurred to finance a Permitted Acquisition or similar investment permitted under the Financing Documentation, the Secured Net Leverage Ratio as of the last day of the then most recently ended fiscal quarter for which financial statements have been (or were required to have been) delivered), or (3) if such Incremental Facility is unsecured, (I) the
Total Net Leverage Ratio does not exceed 1.00x above the Closing Date Total Net Leverage Ratio (as defined below) (or, in the case of any Incremental Facility incurred to finance a Permitted Acquisition or similar investment permitted under the Financing Documentation, the Total Net Leverage Ratio as of the last day of the then most recently ended fiscal quarter for which financial statements have been (or were required to have been) delivered) or (II) the Interest Coverage Ratio (as defined below) on a pro forma basis is not less than 2.00:1.00; provided that the First Lien Net Leverage Ratio, the Secured Net Leverage Ratio and the Total Net Leverage Ratio, for purposes of satisfying this clause (y), shall be calculated (A) assuming that any Incremental Increases with respect to the Revolving Credit Facility is fully funded and (B) excluding (I) for cash netting purposes, any proceeds of any Incremental Facility and (II) any other amounts incurred under the Incremental Dollar Basket concurrently with the incurrence of the applicable Incremental Facility, in which case the applicable leverage ratio shall be permitted to exceed the maximum ratio set forth above to the extent such amounts were incurred in reliance on the Incremental Dollar Basket.

 

    	 	C-5	 

     

    

 

	 	 	
        “Closing Date First Lien Net
        Leverage Ratio” means the First Lien Net Leverage Ratio on the Closing Date (as defined below) (after giving pro
        forma effect to the Transactions and based on the Consolidated EBITDA (as defined in a manner to be agreed) of the Borrower
        and its restricted subsidiaries for the previously ended four-fiscal quarter period for which financial statements have been delivered).

         

        “Closing Date Secured Net Leverage
        Ratio” means the Secured Net Leverage Ratio on the Closing Date (after giving pro forma effect to the Transactions
        and based on the Consolidated EBITDA of the Borrower and its restricted subsidiaries for the previously ended four-fiscal quarter
        period for which financial statements have been delivered).

         

        “Closing Date Total Net Leverage
        Ratio” means the Total Net Leverage Ratio on the Closing Date (after giving pro forma effect to the Transactions
        and based on the Consolidated EBITDA of the Borrower and its restricted subsidiaries for the previously ended four-fiscal quarter
        period for which financial statements have been delivered).

         

        “First Lien Net Leverage Ratio”
        means, as of any date of determination, the ratio of (a) Consolidated Total Debt (which shall be defined as (a) the outstanding
        principal amount of indebtedness for borrowed money or evidenced by bonds, notes, debentures, credit agreements or similar instruments
        (including any obligations in respect of drawn letters of credit that have not been reimbursed), purchase money indebtedness and
        capital lease obligations and (b) all guarantees with respect to outstanding indebtedness of the types specified in clause
        (a) of persons other than the Borrower or any restricted Subsidiary, and in any event shall exclude swap obligations, undrawn
        letters of credit, and earnouts and purchase price adjustment liabilities) secured by first priority liens as of such date to (b) Consolidated
        EBITDA of the Borrower and its restricted subsidiaries for the previously ended four-fiscal quarter period for which financial
        statements have been delivered. For purposes of calculating the First Lien Net Leverage Ratio, the Borrower may net unrestricted
        cash and cash equivalents of the Borrower and its restricted subsidiaries against Consolidated Total Debt. In the event that any
        additional OID or upfront fees are implemented pursuant to the Flex Provisions, any First Lien Net Leverage Ratio tests set forth
        herein shall be adjusted to account for the additional interest expense or additional indebtedness and to maintain the agreed cushion
        taking into account such additional interest expense or additional indebtedness.

 

    	 	C-6	 

     

    

 

	 	 	
        “Interest Coverage Ratio”
        will be defined as the ratio of (i) Consolidated EBITDA to (ii) consolidated interest expense (excluding (1) amortization
        of deferred financing fees, (2) to the extent directly related to the Transactions, expenses arising from financing fees,
        (3) expenses arising from the discounting of indebtedness in connection with the application of recapitalization and/or acquisition
        accounting, (4) penalties and interest relating to taxes and (5) non-cash interest expense attributable to movements
        in the mark-to-market valuation of hedging or other derivative obligations and/or any payment obligation arising under any hedge
        agreement or other derivative instrument (other than interest rate hedge agreements or other derivative instruments).

         

        “Secured Net Leverage Ratio”
        means, as of any date of determination, the ratio of (a) Consolidated Total Debt secured by liens as of such date to (b) Consolidated
        EBITDA of the Borrower and its restricted subsidiaries for the previously ended four-fiscal quarter period for which financial
        statements have been delivered. For purposes of calculating the Secured Net Leverage Ratio, the Borrower may net unrestricted cash
        and cash equivalents of the Borrower and its restricted subsidiaries against Consolidated Total Debt. In the event that any additional
        OID or upfront fees are implemented pursuant to the Flex Provisions, any Secured Net Leverage Ratio tests set forth herein shall
        be adjusted to account for the additional interest expense or additional indebtedness and to maintain the agreed cushion taking
        into account such additional interest expense or additional indebtedness.

 

    	 	C-7	 

     

    

 

	 	 	
        “Total Net Leverage Ratio”
        means, as of any date of determination, the ratio of (a) Consolidated Total Debt as of such date to (b) Consolidated
        EBITDA of the Borrower and its restricted subsidiaries for the previously ended four-fiscal quarter period for which financial
        statements have been delivered. For purposes of calculating the Total Net Leverage Ratio, the Borrower may net unrestricted cash
        and cash equivalents of the Borrower and its restricted subsidiaries against Consolidated Total Debt. In the event that any additional
        OID or upfront fees are implemented pursuant to the Flex Provisions, any Total Net Leverage Ratio tests set forth herein shall
        be adjusted to account for the additional interest expense or additional indebtedness and to maintain the agreed cushion taking
        into account such additional interest expense or additional indebtedness.

         

        Every ratio test that requires compliance
        with the First Lien Net Leverage Ratio, Secured Net Leverage Ratio or Total Net Leverage Ratio in determining whether any action
        shall be permitted shall also require pro forma compliance with the Financial Covenant.

         

        For purposes of calculating Consolidated
        EBITDA and financial ratios (other than, in the case of such events that occur after the last day of the applicable four-fiscal
        quarter period, for the Financial Covenant, step-downs in the Excess Cash Flow sweep percentage (except to the extent resulting
        from a voluntary debt payment), the Asset Sale Stepdowns and step-downs in the applicable margin), pro forma effect will be given
        to acquisitions and other investments, material dispositions and certain other specified transactions. In relation to leases, Consolidated
        EBITDA, together with all the financial ratios and baskets will be calculated in accordance with GAAP without giving effect to
        ASC 842. Consolidated EBITDA will be determined with respect to Borrower and its restricted subsidiaries and be defined in a manner
        consistent with the Documentation Principles and will include, without limitation and without duplication, add-backs (and corresponding
        deductions, to the extent applicable and consistent with the Documentation Principles) or exclusions from consolidated net income
        (in each case, not subject to caps) for:

         

        (a) all extraordinary, unusual or
        non-recurring cash items (in each case, as determined in good faith by Borrower),

 

    	 	C-8	 

     

    

 

	 	 	
        (b) pro forma “run rate”
        cost savings, operating expense reductions, operational improvements and synergies (net of the amount of actual amounts realized)
        reasonably identifiable and factually supportable (in the good faith determination of Borrower and subject to certification by
        a responsible officer of Borrower) related to asset sales, acquisitions, investments, dispositions, operating improvements, restructurings,
        cost saving initiatives and certain other similar initiatives (including the Transactions and the renegotiation of contracts and
        other arrangements) and specified transactions projected by Borrower in good faith to result from actions that have been taken
        or with respect to which substantial steps have been taken or are expected to be taken (in the good faith determination of Borrower)
        within 24 months (for the avoidance of doubt including in connection with any of the foregoing, or actions taken, prior to the
        Closing Date); provided that the amounts under this clause (b) shall not exceed 25% of Consolidated EBITDA for any
        relevant period as calculated before giving effect to such adjustments,

         

        (c) any charge, expense or cost of
        any kind (“Charge”) attributable to the undertaking and/or implementation of business optimization activities,
        cost savings initiatives, cost rationalization programs, operating expense reductions and/or synergies and/or similar initiatives
        and/or programs (including, without limitation, in connection with any integration, restructuring or transition, any reconstruction,
        decommissioning, recommissioning or reconfiguration of fixed assets for alternative uses), including the following: any business
        optimization Charge, any restructuring Charge (including any Charge relating to any tax restructuring), any Charge relating to
        the closure or consolidation of any facility (including but not limited to rent termination costs, moving costs and legal costs),
        any systems implementation Charge and any severance Charge,

         

        (d) non-cash items,

         

        (e) restructuring charges and related
        charges,

         

        (f) transaction separation and integration
        costs in connection with the Transactions and any Permitted Acquisition,

         

        (g) all fees, commissions, costs and
        expenses incurred or paid by the Borrower and its restricted subsidiaries in connection with or pursuant to the Transactions, Financing
        Documentation or any Permitted Acquisitions,

 

    	 	C-9	 

     

    

 

	 	 	
        (h) the amount of any consulting,
        transaction or advisory fees and expense and indemnification payments under any consulting, transaction, advisory or similar agreement,
        to the extent permitted,

         

        (i) to the extent deducted in the
        calculation of consolidated net income, earn-out obligation expense incurred in connection with the Acquisition and/or any acquisition
        or other investment (including any acquisition or other investment consummated prior to the Closing Date) which is paid or accrued
        during the applicable period, and

         

        (j) adjustments and add backs reflected
        in the Model (as defined in the Fee Letter).

         

        At the time of the incurrence of any Incremental
        Facility:

         

        (i) other than with respect to a Limited
        Condition Transaction (as defined below) (which shall be limited to no payment or bankruptcy event of default), no event of default
        exists or would exist after giving effect thereto and the representations and warranties contained in the Financing Documentation
        shall be true and correct in all material respects (or, in the case of any such representation that is qualified by materiality,
        in all respects (after giving effect to such qualification therein), provided that any representations and warranties which
        expressly related to a given date or period shall be required only to be true and correct in all material respects as of the respective
        date or for the respective period, as the case may be, immediately prior to, and after giving effect to, the incurrence of such
        Incremental Loans (other than, in the case of a Limited Condition Transaction, in which case, if agreed between the lenders providing
        such loans and the Borrower, such representations and warranties shall be limited to Specified Representations (to be defined)),

         

        (ii) except in the case of a bridge
        loan the terms of which provide for an automatic extension of the maturity date thereof, subject to customary conditions, to a
        date that is not earlier than the maturity date of the Term Loan B Facility, the maturity date of the Incremental Term Loans shall
        be no earlier than the maturity date of the Term Loan B Facility; provided that, the Borrower shall be permitted to incur
        Incremental Facilities, Incremental Equivalent Debt and Permitted Ratio Debt in an aggregate principal amount not to exceed
        the greater of (i) $91 million and (ii) 100% of Consolidated EBITDA having a maturity date prior to the maturity date
        of the Term Loan B Facility,

 

    	 	C-10	 

     

    

 

	 	 	
        (iii) subject to the proviso in clause
        (ii) above, the weighted average life to maturity of the Incremental Term Loans shall be no shorter than the remaining weighted
        average life to maturity of the Term Loan B Facility,

         

        (iv) all reasonable, documented and
        invoiced out-of-pocket fees and expenses owing in respect of such Incremental Facility to the Administrative Agent and the Lenders
        shall have been paid concurrently with the closing thereof,

         

        (v) each Incremental Facility shall
        have the same guarantees as, and if secured, shall be secured on a pari passu or junior basis by the same collateral securing
        the Facilities; provided that any Incremental Facility that is secured on a junior basis shall be subject to a customary
        intercreditor agreement reasonably acceptable to the Administrative Agent and the Borrower,

         

        (vi) any loans pursuant to an Incremental
        Term Facility shall be on the terms and pursuant to documentation to be determined by the Borrower and the lenders providing such
        Incremental Term Facility and to the extent not consistent with the Term Loan B Facility (except to the extent permitted by clauses (ii) through
        (v) above and (xi) below and excluding, for the avoidance of doubt, pricing, rate floors, discounts, fees and optional
        prepayment or redemption terms) such terms and documentation shall (x) be (in the reasonable judgment of the Borrower), taken
        as a whole, not materially more restrictive than the terms of the Term Loan B Facility (as reasonably determined by the Borrower)
        or (y) be reasonably satisfactory to the Administrative Agent unless the existing Term Loan B Facility receives the benefit
        of such terms and conditions that are more restrictive than those set forth in the Term Loan B Facility through their addition
        to the Financing Documentation or such provisions are only applicable after the latest maturity of any then-existing Term B Loans),

         

        (vii) the All-in Yield (as defined
        below) applicable to any Incremental Term Facility will be determined by the Borrower and the lenders providing such Incremental
        Facility, but, with respect to any Incremental Term Facility constituting a term loan facility which (A) are made on or prior
        to the date that is 12 months after the Closing Date, (B) is not a bridge financing incurred in connection with an acquisition
        (subject to customary automatic conversion requirements after 12 months) and (C) are pari passu with the lien securing the
        Term Loan B Facility, will not be more than 0.50% higher than the corresponding All-in Yield for the existing Term Loan B Facility
        (provided that any differential between interest rate floors shall be equated to the applicable All-in Yield only to the
        extent an increase in the interest rate floor under the existing Term Loan B Facility would cause an increase in the interest rate
        then in effect thereunder and, in such case the interest rate floor (but not the interest rate margin) shall be increased to the
        extent of such differential between interest rate floors), unless the interest rate margins with respect to the existing Term Loan
        B Facility are increased by an amount equal to the difference between the All-in Yield with respect to such Incremental Term Facility
        and the corresponding All-in Yield on the existing Term Loan B Facility, minus 0.50% (this clause (x), the “MFN Provision”),

 

    	 	C-11	 

     

    

 

	 	 	
        (viii) any Incremental Term Facility
        may provide for the ability to participate on a pro rata basis or less than pro rata basis (but not on a greater than pro rata
        basis other than in the case of prepayment with Refinancing Indebtedness) in any voluntary or mandatory prepayments of the Term
        B Loans,

         

        (ix) in the case of an Incremental
        Increase, such Incremental Increase shall be on the same terms (other than OID and upfront fees) and pursuant to the same documentation
        applicable to the Term Loan B Facility or the Revolving Credit Facility, as applicable, and

         

        (x) any Incremental Term Facility
        shall permit Loans to be drawn in U.S. Dollars or in any other currency reasonably acceptable to the Administrative Agent and the
        lenders thereunder;

         

        provided, further, that (1) any
        portion of any Incremental Facility incurred under the Incremental Dollar Basket may be reclassified, as the Borrower elects
        from time to time, as incurred under the Incremental Ratio Basket if the Borrower is able to satisfy the applicable incurrence
        test in respect of the Incremental Ratio Basket at such time calculated on a pro forma basis and if the applicable ratio
        for the incurrence of any Incremental Facility under the Incremental Ratio Basket would be satisfied on a pro forma basis
        as of the end of any fiscal quarter, such reclassification shall be deemed to have occurred automatically; (2) at the Borrower’s
        option, capacity under the Incremental Ratio Basket shall be deemed to be used before capacity under the Incremental Dollar Basket
        is used; and (3) loans may be incurred under the Incremental Ratio Basket, the Incremental Dollar Basket, and proceeds from
        any such incurrence may be utilized in a single transaction by first calculating the amount available to be incurred under the
        Incremental Ratio Basket by disregarding any concurrent utilization of the Incremental Dollar Basket.

 

    	 	C-12	 

     

    

 

	 	 	
        “All-in Yield”
        means, as to any tranche of (a) any Incremental Term Facility, (b) the Term Loan B Facility or (c) other term loans
        referred to in the definition of “Repricing Transaction”, the effective yield on such tranche payable to all lenders
        providing such loans in the primary syndication thereof as reasonably determined by the Administrative Agent in consultation with
        the Borrower, taking into account the applicable interest rate margins, interest rate benchmark floors and all upfront fees or
        original issue discount; provided that original issue discount and upfront fees shall be equated to an interest rate assuming
        a 4-year life to maturity (or, if shorter, the remaining life) on a straight line basis; and provided further that “All-in
        Yield” shall not include arrangement, commitment, underwriting, structuring, amendment or other fees payable in connection
        therewith that are not paid to all of the lenders providing such tranche.

         

        Incremental Equivalent Debt (together
with the Incremental Facilities and Permitted Ratio Debt) in aggregate principal amount of less than the greater of $91 million
and 100% of Consolidated EBITDA (the “Maturity Requirement Threshold”) or in the form of bridge loans
shall not be subject to the requirements described in clauses (ii) and (iii) above, so long as any such bridge loans
provide for automatic conversion into permanent financing that would satisfy the requirements described in such clauses (ii) and
(iii).

        

 

    	 	C-13	 

     

    

 

	 	 	With respect to Incremental Facilities
        (or Incremental Equivalent Debt) used to finance an acquisition or similar investment (to the extent that the consummation of such
        acquisition or investment is not conditioned on the availability of, or on obtaining, third-party financing), for purposes of determining
        (x) compliance with any financial ratio, (y) accuracy of representations and warranties (other than Specified Representations
        which shall be accurate in all material respects as of the closing date of such Incremental Facility (or Incremental Equivalent
        Debt)) or occurrence of default (other than a payment or bankruptcy default) or (z) availability under baskets (including
        baskets measured as a percentage of Consolidated EBITDA), in each case, in connection with such acquisition or investment, the
        Borrower shall have the option of making any such determinations as of the date the definitive agreement for such acquisition or
        investment is signed or an irrevocable notice of redemption is given (and, if the Borrower makes such election, thereafter any
        such financial ratio or basket shall be calculated as if the acquisition or investment and other pro forma events in connection
        therewith, were consummated on such date until the earlier of consummation or termination of such Limited Transaction; provided
        that Restricted Payments and Specified Prepayments shall be tested without giving effect to such transaction). The foregoing provisions
        being the “Limited Condition Transaction” provisions.
	 	 	 
	 	 	The Borrower may seek commitments in respect of Incremental Facilities from existing Lenders (each of which shall be entitled to agree or decline to participate in its sole discretion) and additional banks, financial institutions and other institutional lenders (other than Disqualified Institutions) who will become Lenders in connection therewith, subject to the Administrative Agent’s consent (which consent shall not be unreasonably withheld or delayed) to the extent such consent would be required in connection with an assignment thereto under the heading “Assignments and Participations” below. 

 

    	 	C-14	 

     

    

 

	Refinancing Facility:	 	The Financing Documentation will permit the Borrower to refinance Term B Loans or the commitments and loans under any Incremental Facility and/or Revolving Loans from time to time, in whole or part, with (w) one or more new loan facilities (each, a “Refinancing Term Facility”) or new revolving credit facilities (each, a “Refinancing Revolving Facility”, and together with any Refinancing Term Facility, a “Refinancing Facility”) under the Financing Documentation, in each case, with the consent of the Borrower and the institutions providing such Refinancing Facility and/or with (x) one or more series of senior unsecured notes or loans, (y) one or more series of senior secured notes or loans that will be secured by the Collateral on a pari passu basis with the Facilities or (z) one or more series of second or more junior lien secured notes or loans secured by liens junior to the Facilities, which in the case of senior secured notes or loans under clause (y) or (z) will be subject to customary intercreditor arrangements and/or subordination provisions, as applicable, that are, in each case, reasonably satisfactory to the Administrative Agent (any such notes or loans under clause (x), (y) or (z), “Refinancing Indebtedness”); provided that (i) any Refinancing Facility or Refinancing Indebtedness does not mature prior to the maturity date of, or have a shorter weighted average life to maturity than, the loans under the applicable indebtedness that is being refinanced thereby, (ii) any Refinancing Indebtedness is not subject to any amortization prior to final maturity or is subject to the same amortization schedule as the loans under the applicable indebtedness that is being refinanced thereby and is not subject to mandatory redemption or prepayment (except customary asset sales, event of loss, AHYDO catchup payments, change of control or event of default provisions), (iii) there shall be no borrowers or guarantors in respect of any Refinancing Facility or any Refinancing Indebtedness that are not the Borrower or a Guarantor (unless such borrowers or guarantors in respect of any such Refinancing Indebtedness become Guarantors), (iv) if secured, any Refinancing Indebtedness shall not be secured by any asset that is not Collateral (unless a lien is provided on such assets in favor of the secured parties under the Financing Documentation); provided that any Refinancing Facility that is secured on a junior lien basis to the Facilities and/or any Refinancing Indebtedness that is secured shall, in each case, be subject to a customary intercreditor agreement reasonably satisfactory to the Administrative Agent and the Borrower, (v) subject to clause (ii) above, any Refinancing Term Facility may provide for the ability to participate on a pro rata basis or less than pro rata basis (but not greater than pro rata basis) (or, if junior in right of payment or security, shall be on a junior basis with respect thereto) in any mandatory prepayments of the Term B Loans, (vi) the other terms and conditions of such Refinancing Facility or Refinancing Indebtedness (excluding pricing, interest rate margins, rate floors, discounts, fees, call protection and optional prepayment or redemption terms) are (x) substantially identical to, or are, when taken as a whole, not materially more favorable to the investors or lenders providing such Refinancing Facility or Refinancing Indebtedness, as applicable, than those applicable to the applicable indebtedness that is being refinanced thereby or (y) reflective of market terms and conditions at the time of incurrence or issuance thereof, in each case as reasonably determined in good faith by the Borrower (except for covenants or other provisions applicable only to periods after the latest final
maturity date of any of the Facilities existing at the time of such refinancing or to the extent such terms and conditions are added for the benefit of the existing Facilities), (vii) any Refinancing Facility or Refinancing Indebtedness shall not be in a principal amount that exceeds the aggregate principal amount of the applicable indebtedness that is being refinanced thereby (unless a different debt incurrence basket is utilized in connection therewith), plus any accrued interest, fees and expenses (including original issue discount or upfront fees), commissions, underwriting discounts and premiums payable in connection therewith and the proceeds of such Refinancing Facility or Refinancing Indebtedness shall be applied, substantially concurrently with the incurrence thereof, to the pro rata prepayment of outstanding loans under the applicable indebtedness that is being so refinanced and (viii) (A) if the indebtedness being refinanced was contractually subordinated to the Term Loan B Facility in right of payment or security, such Refinancing Facility or Refinancing Indebtedness shall be contractually subordinated to the Term Loan B Facility on the same basis (or, if junior secured, also may be unsecured) and (B) if the indebtedness being refinanced was unsecured, the applicable Refinancing Facility or Refinancing Indebtedness shall be unsecured.

 

    	 	C-15	 

     

    

 

	Documentation:	 	The definitive documentation for the Facilities (the “Financing Documentation”) shall initially be prepared by counsel to the Borrower and shall be negotiated in good faith based on precedent documentation to be agreed (the “Identified Precedent”), as modified to (i) reflect the terms and conditions set forth herein and in the Commitment Letter (as modified pursuant to the Flex Provisions), (ii) take account of differences related to the Borrower, the Acquired Business and their respective subsidiaries in light of their size, industries, businesses and business practices (after giving effect to the Transactions) and the Projections and matters disclosed in the Acquisition Agreement (including the schedules thereto), (iii) give due regard to the Identified Precedent, (iv) include customary contractual recognition provisions substantially consistent with recommendations provided by the Loan Syndications & Trading Association related to Article 55 of the Bank Recovery and Resolution Directive, (v) include customary provisions with respect to (A) the “beneficial ownership” provisions, (B) the Delaware LLC Act, (C) the “QFC Stay” provisions and (D) the U.S. Department of Labor lender regulatory representations, the definitive terms of which will be negotiated in good faith, (vi) reflect the policies and procedures of the Administrative Agent and (vii) include LIBOR successor provisions consistent with the Alternative Reference Rate Committee’s “hardwired” transition language.  Notwithstanding anything to the contrary, but subject to the Flex Provisions, the Financing Documentation shall contain only those conditions to borrowing, mandatory repayments and prepayments, representations and warranties, affirmative, negative and financial covenants, and events of default, in each case expressly set forth in this Term Sheet.  The foregoing shall be referred to as the “Documentation Principles”.
	 	 	 
	Interest Rates and Fees:	 	As set forth on Annex I to the Fee Letter.

 

    	 	C-16	 

     

    

 

	Default Rate:	 	Any principal or interest payable under or in respect of the Facilities not paid when due (including upon the occurrence of a bankruptcy event of default) shall bear interest at the applicable interest rate plus 2.00% per annum.  Other overdue amounts (after giving effect to any grace periods) shall bear interest at the interest rate applicable to ABR Loans (as defined in Annex I to the Fee Letter) plus 2.00% per annum.
	 	 	 
	Guarantees:	 	Subject to the exceptions set forth herein, all obligations of the Borrower under the Facilities will be unconditionally guaranteed (the “Guarantees”) by each existing and subsequently acquired or organized direct or indirect wholly-owned domestic restricted subsidiary of the Borrower (the “Guarantors”; the Guarantors and the Borrower collectively, the “Loan Parties”).  Any such subsidiary acquired or organized after the Closing Date shall not be required to become a Guarantor prior to next date after such subsidiary was acquired or formed on which a compliance certificate is required to be delivered by the Borrower (or such later date as approved by the Administrative Agent in its reasonable discretion)  The Guarantors shall not include (unless at the option of the Borrower in the case of a domestic subsidiary) (a) unrestricted subsidiaries, (b) immaterial subsidiaries (to be defined as restricted subsidiaries of the Borrower representing not in excess of 2.5% individually and 5.0% in the aggregate for all such subsidiaries, of Consolidated EBITDA or total assets of the Borrower and its restricted subsidiaries) (and any such subsidiary ceasing to be an immaterial subsidiary (as determined as of any fiscal quarter-end) shall be required to become a Guarantor no later than the date on which a compliance certificate is required to be delivered by the Borrower for such fiscal quarter (or such later date as approved by the Administrative Agent in its reasonable discretion), (c) any subsidiary that is prohibited by applicable law, rule or regulation or by any contractual obligation existing on the Closing Date (or, if later, the date it becomes a restricted subsidiary) from guaranteeing the Facilities or which would require governmental (including regulatory) consent, approval, license or authorization to provide a Guarantee unless such consent, approval, license or authorization has been received, (d) not-for-profit subsidiaries, (e) captive insurance subsidiaries, (f) special purpose entities, (g) any subsidiaries where the provision of a guaranty would result in material adverse tax consequences as reasonably determined by the Borrower in consultation with the Administrative Agent, (h) any other subsidiary with respect to which, in the reasonable judgments of the Borrower and the Administrative Agent, the cost of providing a guaranty would be excessive in view of the benefits to be obtained by the Lenders therefrom, (i) any restricted subsidiary acquired pursuant to a Permitted Acquisition (as defined below) to the extent that assumed indebtedness not incurred in contemplation of such Permitted Acquisition prohibits such subsidiary (or any restricted subsidiary thereof that guarantees such indebtedness) from becoming a Guarantor (but only for so long as such prohibition is applicable), (j) any direct or indirect domestic subsidiary substantially all of the assets of which consist (directly or indirectly through entities that are treated as a disregarded entities for U.S. federal income tax purposes) of capital stock and/or indebtedness of one or more foreign subsidiaries that are “controlled foreign corporations” within the meaning of Section 957 of the Internal Revenue Code of 1986, as amended (a “CFC Holdco”) and (k) any domestic subsidiary that is a direct or indirect subsidiary of (i) a foreign subsidiary or (ii) a CFC Holdco (each of the foregoing, an “Excluded Subsidiary”). Notwithstanding the foregoing, any release of a Guarantor shall only be permitted if such Guarantor ceases to be a Restricted Subsidiary as a result of a transaction permitted under the Financing Documentation or becomes an Excluded Subsidiary but which will not refer to becoming a non-wholly-owned subsidiary.

 

    	 	C-17	 

     

    

 

	Security:	 	Subject to the limitations set forth herein,
        including the Limited Conditionality Provision, and excluding the Excluded Assets (as defined below), the obligations of the Borrower
        under the Facilities and the Guarantees will be secured by (x) a first priority perfected security interest in all stock,
        other equity interests and promissory notes owned by the Borrower and the Guarantors, and (y) a first priority perfected security
        interest in all other tangible and intangible assets of the Borrower and each Guarantor (including, without limitation, receivables,
        inventory, equipment, contract rights, securities, patents, trademarks, other intellectual property, cash, bank and securities
        deposit accounts, real estate and leasehold interests) owned by the Borrower and the Guarantors (all of the foregoing, but excluding
        the Excluded Assets (as defined below), the “Collateral”).

 

    	 	C-18	 

     

    

 

	 	 	
        

        Notwithstanding anything to the contrary,
        the Collateral shall exclude the following: (i) any fee-owned real property and all real property leasehold interests (and
        there will be no requirements to deliver landlord lien waivers, bailee letters, estoppels or collateral access letters) except
        fee-owned real property with a fair market value in excess of $5 million, or any fixtures affixed to any real property to the extent
        (A) such real property does not constitute Collateral and (B) a security interest in such fixtures may not be perfected
        by a UCC-1 financing statement in the jurisdiction of organization of the applicable Borrower or Guarantor, (ii) motor vehicles,
        airplanes, vessels and other assets subject to certificates of title, letter of credit rights (other than to the extent such rights
        can be perfected by filing a UCC-1 financing statement) and commercial tort claims below an amount to be agreed, (iii) “margin
        stock” (within the meaning of Regulation U) and pledges and security interests prohibited by applicable law, rule or
        regulation or agreements with any governmental authority or which would require governmental (including regulatory) consent, approval,
        license or authorization to provide such security interest unless such consent, approval, license or authorization has been received,
        in each case, after giving effect to the applicable anti-assignment provisions of the Uniform Commercial Code (the “UCC”),
        (iv) assets of and equity interests in any entities other than wholly-owned domestic restricted subsidiaries (except to the
        extent not prohibited by contract or organizational documents), (v) any lease, license or other agreement or any property
        subject to a purchase money security interest, capital lease or similar arrangement to the extent that a grant of a security interest
        therein would violate or invalidate such lease, license or agreement, purchase money or similar arrangement or create a right of
        termination in favor of any other party thereto (other than the Borrower or a Guarantor) after giving effect to the applicable
        anti-assignment provisions of the UCC, other than proceeds and receivables thereof, the assignment of which is expressly deemed
        effective under the UCC notwithstanding such prohibition, (vi) those assets as to which the Administrative Agent and the Borrower
        reasonably agree that the cost of obtaining such a security interest or perfection thereof are excessive in relation to the benefit
        to the Lenders of the security to be afforded thereby, (vii) equity interests in immaterial subsidiaries (other than a Guarantor)
        (or any person that is not a subsidiary which, if a subsidiary, would constitute an immaterial subsidiary) to the extent a security
        interest therein cannot be perfected by the filing of a UCC filing statement, captive insurance subsidiaries, not-for-profit subsidiaries,
        special purpose entities, unrestricted subsidiaries, any subsidiary acquired pursuant to a Permitted Acquisition whose pledge is
        restricted pursuant to permitted assumed debt with respect thereto, (viii) security interest in any asset located outside
        of the United States to the extent a security interest therein cannot be perfected by the filing of a UCC filing statement (other
        than stock certificates and promissory notes of foreign subsidiaries issued to a domestic Loan Party subject to customary delivery
        requirements), (ix) any assets to the extent a security interest in such assets would result in material adverse tax consequences
        as reasonably determined by the Borrower in consultation with the Administrative Agent, (x) any intent-to-use trademark application
        prior to the filing, and acceptance by the U.S. Patent and Trademark Office, 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, (xi) any acquired property (including property acquired through acquisition or merger of another entity) if at
        the time of such acquisition the granting of a security interest therein or the pledge thereof is prohibited by any contract or
        other agreement (in each case, not created in contemplation thereof) to the extent and for so long as such contract or other agreement
        prohibits such security interest or pledge and (xii) other exceptions to be agreed (the foregoing described in clauses (i) through
        (xii) are, collectively, the “Excluded Assets”).

 

    	 	C-19	 

     

    

 

	 	 	Notwithstanding anything to the contrary, no Loan Party shall be required, nor shall the Administrative Agent be authorized, (i) to perfect the above-described pledges, security interests and mortgages by any means other than by (A) filings pursuant to the UCC in the office of the secretary of state (or similar central filing office) of the relevant jurisdiction, (B) filings in the United States Patent and Trademark Office and/or United States Copyright Office, as applicable, with respect to intellectual property, (C) (1) mortgages in respect of fee-owned real property included in the Collateral and (2) filings in the applicable real estate records with respect to real properties included in the Collateral or fixtures relating to such real properties and (D) delivery to the Administrative Agent of all stock certificates, intercompany notes and other instruments (to the extent such intercompany note or other instrument is in an amount in excess of a threshold amount to be mutually agreed) to be held in its possession, (ii) to enter into any control agreement with respect to any deposit account, securities account or commodities account, (iii) to take any action (other than the actions listed in clauses (A) through (D) above, which in the case of clauses (B) and (D) shall not be required prior to next date after the applicable Loan Party acquired such Collateral on which a compliance certificate is required to be delivered by the Borrower (or such later date as approved by the Administrative Agent in its reasonable discretion)) with respect to any assets located outside of the United States (it being understood that there shall be no security agreements or pledge agreements governed under the laws of any non-United States jurisdiction), or (iv) to take any actions in any jurisdiction other than the United States (or any political subdivision thereof) or enter into any collateral documents governed by the laws of any country other than the United States.

 

    	 	C-20	 

     

    

 

	Mandatory Prepayments:	 	
        1. Revolving Credit Facility

         

        Revolving Loans shall be prepaid and the
        Letters of Credit cash collateralized to the extent such extensions of credit exceed the aggregate amount of the commitments under
        the Revolving Credit Facility at any time.

         

        2. Term Loan B Facility

         

        Term B Loans shall be prepaid with:

         

        (a)  beginning with the first
        full fiscal year ending after the Closing Date, 50% of Excess Cash Flow (to be defined as mutually agreed, but in any event to
        provide for (i) a working capital adjustment and (ii) deductions from Excess Cash Flow of all cash restructuring charges,
        cash used to make Permitted Acquisitions, make permitted investments, make certain restricted payments or make capital expenditures,
        or to be used within the succeeding 12 months to fund acquisition obligations or capital expenditures for which binding agreements
        exist; provided that to the extent such cash has not been applied to fund such acquisition or capital expenditure within
        12 months of such Excess Cash Flow calculation, such cash shall be applied to the next succeeding Excess Cash Flow prepayment)
        of the Borrower and its restricted subsidiaries in excess of $5 million per annum in the aggregate, with stepdowns to 25%
        if the First Lien Net Leverage Ratio on a Pro Forma Basis is less than or equal to 0.25x inside the Closing Date First Lien Net
        Leverage Ratio and 0% if the First Lien Net Leverage Ratio on a Pro Forma Basis is less than or equal to 0.50x inside the Closing
        Date First Lien Net Leverage Ratio; provided that voluntary prepayments of Term B Loans and Revolving Loans (to the extent
        that the commitments thereunder are permanently reduced by the amount of such prepayments), loans under any Incremental Facilities
        (with respect to any Incremental Increase of the Revolving Credit Facility, solely to the extent that the commitments thereunder
        are permanently reduced by the amount of such prepayments) that are secured by a lien on the Collateral on a pari passu
        basis with the Facilities or any Incremental Equivalent Debt that is secured by a lien on the Collateral on a pari passu
        basis with the Facilities, including, in each case, loan buy-backs pursuant to Dutch auctions or open market purchases, in each
        case that are offered to all Lenders of the applicable class on a pro rata basis, which shall only be credited to the extent of
        the actual purchase price paid in cash pursuant to such loan buy-backs, in each case to the extent such prepayments are funded
        with internally generated cash flow, made during such fiscal year or, at the option of the Borrower, prior to such Excess Cash
        Flow prepayment date (but without duplication in the next fiscal year), shall be credited against Excess Cash Flow prepayment obligations
        on a dollar-for-dollar basis for such fiscal year; provided, further, that with respect to any such prepayment that
        occurs following the end of such fiscal year but prior to the applicable Excess Cash Flow prepayment (without duplication in any
        subsequent period), the First Lien Net Leverage Ratio shall be recalculated to give pro forma effect to such prepayment
        and, if necessary, the percentage of the Excess Cash Flow prepayment shall be adjusted to take into account such recalculated First
        Lien Net Leverage Ratio;

 

    	 	C-21	 

     

    

 

	 	 	(b) 100% (stepping down to 50% if the First Lien Net Leverage Ratio on a Pro Forma Basis is less than or equal to 0.25x inside the Closing Date First Lien Net Leverage Ratio and 0% if the First Lien Net Leverage Ratio on a Pro Forma Basis is less than or equal to 0.50x inside the Closing Date First Lien Net Leverage Ratio, such First Lien Net Leverage Ratio to be calculated on a Pro Forma Basis, but without netting the net cash proceeds of the respective disposition (the “Asset Sale Stepdowns”)) of the net cash proceeds of all non-ordinary course asset sales or other dispositions of property by the Borrower and its restricted subsidiaries (with exceptions for sales of inventory in the ordinary course, ordinary course dispositions, dispositions of obsolete or worn-out property and property no longer useful in the business and other exceptions to be mutually agreed), in excess of $5 million per fiscal year (subject to the right of the Borrower to reinvest 100% of such net proceeds if such proceeds are reinvested (or committed to be reinvested) within 18 months and, if so committed to be reinvested, so long as such reinvestment is actually completed within 6 months thereafter, and other exceptions to be mutually agreed); and

 

    	 	C-22	 

     

    

 

	 	 	
        (c) 100% of the net cash proceeds
        of issuances, offerings or placements of debt obligations of the Borrower and its restricted subsidiaries (excluding the net cash
        proceeds of any debt permitted to be incurred by the terms of the Financing Documentation (other than Refinancing Facilities and
        Refinancing Indebtedness)).

         

        Each amount described in any of clauses
        (a) through (c) above shall be applied pro rata to the repayment of the Term Loan B Facility (including the funded portion
        of the Term Loan B Facility, but not any unfunded commitments thereunder), and to the principal installments thereof in direct
        order of maturity to the remaining amortization payments.

         

        The above-described mandatory prepayments
        will be without premium or penalty (but subject to reimbursement of applicable lenders’ breakage and redeployment costs in
        the case of a prepayment of Adjusted LIBOR borrowings other than on the last day of the relevant interest period) and will be applied
        to the remaining amortization payments in direct order of maturity).

         

        Any Term B Lender may elect not to accept
        its pro rata portion of any mandatory prepayment (each, a “Declining Lender”), but, in the case
        of clause (c), solely to the extent the relevant prepayment does not represent a refinancing of the Term Loan B Facility. Any prepayment
        amount declined by a Declining Lender may be retained by the Borrower (such retained amounts, the “Declined Proceeds”).

         

        Mandatory prepayments required under the
        Financing Documentation may, if required pursuant to the terms of any other indebtedness secured pari passu with the Term
        Loan B Facilities, be applied to the Term B Loans and such other pari passu indebtedness, in each case on a ratable basis
        based on the outstanding principal amounts thereof.

	 	 	 
	Voluntary Prepayments:	 	
        1. Revolving Credit Facility

         

        Prepayments of borrowings under the Revolving
        Credit Facility will be permitted at any time, in minimum principal amounts to be mutually agreed, subject to customary notice
        requirements (which notices may be conditional) and customary provisions providing for the reimbursement of breakage and redeployment
        costs in the case of a prepayment of Adjusted LIBOR borrowings prior to the last day of the relevant interest period.

         

        2. Term Loan B Facility

         

        Prepayments of borrowings under the Term
        Loan B Facility will be permitted at any time, in minimum principal amounts to be mutually agreed, subject to customary notice
        requirements (which notices may be conditional) and to the payment of any Prepayment Premium (if any) (as defined below) (subject
        to reimbursement of applicable lenders’ breakage and redeployment costs in the case of a prepayment of Adjusted LIBOR borrowings
        other than on the last day of the relevant interest period). All voluntary prepayments of borrowings under the Term Loan B Facility
        will be pro rata and applied as designated by the Borrower or, if not designated, in direct order of maturity to the remaining
        amortization payments under the Term Loan B Facility.

 

    	 	C-23	 

     

    

 

	 	 	
        Any Repricing Transaction (as defined below)
        under the Term Loan B Facility consummated prior to the date that is 12 months after the Closing Date will be subject to a prepayment
        premium of 1.00% on the principal amount of the Term B Loans prepaid or, in the case of any amendment, the principal amount of
        the relevant Term B Loans outstanding immediately prior to (and subject to) such amendment (including the principal amount of any
        Term B Loans of any Lender which are required to be assigned in accordance with customary “yank-a-bank” provisions
        as a result of such Lender’s failure to consent to such amendment) (the “Prepayment Premium”).

         

        For purposes of the Financing Documentation,
        “Repricing Transaction” means the refinancing or repricing by the Borrower of all or any portion of the
        Term B Loans the primary purpose of which is to reduce the all-in-yield applicable to the Term B Loans (x) with the proceeds
        of any secured first lien term loans incurred by the Borrower or any direct or indirect subsidiary of the Borrower or (y) in
        connection with any amendment to the Financing Documentation, in either case, (i) having or resulting in an effective All-In
        Yield as of the date of such refinancing or repricing that is less than the effective All-In Yield applicable to the Term B Loans
        immediately prior to such refinancing or repricing and (ii) in the case of a refinancing of the Term B Loans, the proceeds
        of which are used to repay, in whole or in part, the principal of outstanding Term B Loans, but excluding, in any such case, any
        refinancing or repricing of Term B Loans in connection with any Transformative Acquisition (as defined below) or “change
        of control” transaction.

         

        “Transformative Acquisition”
        means any acquisition or investment by the Borrower or any restricted subsidiary, that is either (a) not permitted by the
        terms of the Financing Documentation immediately prior to the consummation of such transaction or (b) if permitted by the
        terms of the Financing Documentation immediately prior to the consummation of such acquisition or investment, would not provide
        the Borrower and its restricted subsidiaries with adequate flexibility under the Financing Documentation for the continuation and/or
        expansion of their combined operations following such consummation, as determined by the Borrower acting in good faith.

 

    	 	C-24	 

     

    

 

	Unrestricted Subsidiaries:	 	The Financing Documentation will contain provisions pursuant to which, subject to limitations on loans, advances, guarantees and other investments in unrestricted subsidiaries, the Borrower will be permitted to designate any existing or subsequently acquired or organized subsidiary of the Borrower as an “unrestricted subsidiary” and subsequently re-designate any such unrestricted subsidiary as a restricted subsidiary so long as, after giving effect to any such designation or re-designation, (a) no event of default shall have occurred and be continuing or would immediately result from any such designation or re-designation, (b) any such designation as a “restricted subsidiary” shall constitute the incurrence at the time of designation of any indebtedness or liens of such subsidiary existing at such time, (c) the fair market value of such subsidiary at the time it is designated as an “unrestricted subsidiary” shall be treated as an investment by the Borrower at such time (and the re-designation of any unrestricted subsidiary as a restricted subsidiary shall constitute an incurrence of the debt, liens and investments of such subsidiary at such time), (d) the Borrower shall be in compliance with the Financial Covenant, (e) no Subsidiary may be designated as an unrestricted subsidiary or continue as an unrestricted subsidiary if it is a “restricted subsidiary” for the purpose of any material indebtedness of the Borrower or any restricted subsidiaries, (f) no Unrestricted Subsidiary may own, and none of the Borrower or any of its Restricted Subsidiaries may transfer (other than customary intercompany non-exclusive licenses in the ordinary course of business) to any Unrestricted Subsidiary, any material Intellectual Property (provided that after-acquired Unrestricted Subsidiaries may own Intellectual Property that they owned prior to their acquisition by the Borrower), (g) no unrestricted subsidiary may hold any Liens or Equity of Interests of or in the Borrower or any restricted subsidiary (or any of their respective assets) and (h) other limitations to be agreed. Unrestricted subsidiaries will not be subject to the guarantee or collateral requirements, representations and warranties, affirmative or negative covenants, events of default or other provisions of the Financing Documentation and the results of operations and indebtedness of unrestricted subsidiaries will not be taken into account for purposes of determining compliance with financial tests except to the extent of distributions received therefrom.

 

    	 	C-25	 

     

    

 

	Representations and Warranties:	 	
        Applicable to the Borrower and their restricted
        subsidiaries and limited to the following with respect to the Financing Documentation: corporate or other organizational status
        and power; authorization and non-contravention, legal, valid and binding documentation and no consents or governmental authorizations;
        accuracy of financial statements and disclosures (to be consistent with the “10b-5” representation set forth in the
        Commitment Letter); no Material Adverse Effect (as defined below); absence of material litigation; no material violation of, or
        conflicts with, law or material agreements; compliance with laws; ERISA, margin regulations; laws applicable to sanctioned persons;
        OFAC; the PATRIOT Act; beneficial ownership regulations; the FCPA and other anti-corruption laws; payment of taxes; ownership of
        subsidiaries and properties; intellectual property; inapplicability of the Investment Company Act; solvency as of the Closing Date
        of the Borrower and its subsidiaries on a consolidated basis; labor matters; environmental laws and other regulatory matters; validity,
        priority and perfection of security interests in the Collateral (subject to customary permitted liens and the Limited Conditionality
        Provision); insurance; no EEA Financial Institutions; regulatory and other matters to be agreed specific to the for-profit education
        industry; and use of proceeds, in each of the foregoing cases, where appropriate, with such customary exceptions, materiality qualifiers
        and thresholds to be mutually agreed.

         

        “Material Adverse Effect”
        means (1) on the Closing Date, Material Adverse Effect (as defined in the Acquisition Agreement as in effect on the date of
        the Commitment Letter) and (2) after the Closing Date (a) a material adverse effect on the business, assets, financial
        condition or results of operations of the Borrower, the Guarantors and their respective restricted subsidiaries, taken as a whole,
        (b) a material adverse effect on the rights and remedies of the Lenders and the Administrative Agent, taken as a whole, under
        any Financing Documentation or (c) a material adverse effect on the ability of the Loan Parties (taken as a whole) to perform
        their payment obligations under the Financing Documentation.

 

    	 	C-26	 

     

    

 

	Initial Conditions Precedent:	 	The initial borrowings under the Term Loan B Facility and availability of the Revolving Credit Facility, in each case, on the Closing Date will be subject solely to conditions precedent set forth in Section E of the Commitment Letter, subject to the limitations contained therein, and on the Conditions Exhibit.
	 	 	 
	On-going conditions:	 	After the Closing Date, the making of any Revolving Loan and the issuance of any Letter of Credit shall be conditioned upon (a) delivery of a customary notice of borrowing or issuance request, as applicable, (b) the accuracy in all material respects (or in all respects for any representation or warranty already qualified by materiality (after giving effect to such qualification therein)) of all representations and warranties in the Revolving Credit Facility; provided that any representations and warranties which expressly related to a given date or period shall be required only to be true and correct in all material respects as of the respective date or for the respective period, as the case may be, (c) the existence of availability at least in the amount of the requested credit extension (after giving effect to any repayment of Revolving Loans or termination or expiration of Letters of Credit on or prior to the date such Revolving Loan is to be made or such Letter of Credit is to be issued) and (d) the absence of any default or event of default at the time of, and immediately after giving effect to the making of, such extension of credit.
	 	 	 
	Affirmative Covenants:	 	Limited to the following (to be applicable to the Borrower and their restricted subsidiaries): maintenance of corporate or other organizational existence and rights; payment of taxes; delivery of consolidated financial statements (together with accompanying budgets in the case of annual financial statements and together with, in each case, customary management discussion and analysis narratives) (within 90 and 45 days for annual and quarterly financial statements for the first three fiscal quarters of the Borrower) and with annual financial statements to be accompanied by an audit opinion from nationally recognized auditors that is not subject to qualification as to “going concern” or the scope of such audit other than, with respect to such qualification or scope of audit, solely with respect to, or resulting solely from (i) an upcoming maturity date under any indebtedness occurring within one year from the time such opinion is delivered or (ii) any potential inability to satisfy any financial maintenance covenant on a future date or in a future period), delivery of certificates and other information (other than information subject to attorney/client privilege or confidentiality provisions or restricted by applicable law), including information required under the PATRIOT Act and the Beneficial Ownership Regulation; delivery of notices of default, materially adverse litigation, materially adverse ERISA events and Material Adverse Effect; quarterly lender calls; maintenance of properties in good working order; maintenance of insurance; maintenance of books and records; use of commercially reasonable efforts to obtain and maintain a public ratings (but without obligation to maintain specific ratings); material compliance with laws and regulations (including ERISA and environmental laws); use of proceeds; inspection of books and properties; designation of subsidiaries; covenants (including reporting) to be agreed specific to the for-profit education industry; covenant to guarantee obligations and give security; further assurances and other information reasonably requested by the Administrative Agent, subject, in the case of each of the foregoing covenants, to other exceptions and qualifications to be mutually agreed.

 

    	 	C-27	 

     

    

 

	Negative Covenants:	 	
        Limited to the following (to be applicable
        to the Borrower and their restricted subsidiaries) and subject to exceptions to be mutually agreed:

         

        (a) limitations on dividends on, and
        redemptions and repurchases of, equity interests (“Restricted Payments”) (which shall permit, among other
        exceptions to be agreed, (i) Restricted Payments so long as (x) no event of default exists at the time of the declaration
        thereof and (y) there is pro forma compliance with a Total Net Leverage Ratio level not to exceed 0.25x inside the
        Closing Date Total Net Leverage Ratio based on the Consolidated EBITDA of the Borrower and its restricted subsidiaries for the
        previously ended four-fiscal quarter period for which financial statements have been delivered (the “Leverage Based
        RP Exception”), (ii) Restricted Payments in reliance on the Available Amount Basket, (iii) so long as no
        event of default has occurred and is continuing, a general basket not to exceed the greater of (x) $5 million and (y) 
        6.0% of Consolidated EBITDA for the most recently completed period of four consecutive fiscal quarters for which financial statements
        have been (or were required to have been) delivered (the “Restricted Payment General Basket”) and (iv) so
        long as no event of default has occurred and is continuing, Restricted Payments in respect of the Borrower’s 9.0% Series A-Non-Voting
        Preferred Stock issued in connection with the Acquisition, including (x) a 9.0% per annum quarterly dividend (increasing to
        15% per annum following the third anniversary of the Closing Date) and (y) optional cash redemptions).

 

    	 	C-28	 

     

    

 

	 	 	
        (b) limitations on cash prepayments,
        redemptions and repurchases (“Specified Prepayments”) of contractually subordinated debt for borrowed
        money in an amount greater than $5,000,000, junior lien debt in an amount greater than $5,000,000, earn-outs in an amount greater
        than $5,000,000 or unsecured debt for borrowed money in an amount greater than $5,000,000 (collectively, “Covered Debt”)
        (which shall permit, among other exceptions, (i) Specified Prepayments provided that (x) no event of default has
        occurred and is then continuing and (y) there is pro forma compliance with a Total Net Leverage Ratio level not to
        exceed the Closing Date Total Net Leverage Ratio (the “Leverage Based Specified Prepayments Exception”),
        (ii) Specified Prepayments in reliance on the Available Amount Basket, (iii) Specified Prepayments in connection with
        any otherwise permitted refinancing, (iv) so long as no event of default has occurred and is continuing, a general Specified
        Prepayments basket not to exceed the greater of (x) $10 million and (y)  12% of Consolidated EBITDA for the most recently
        completed period of four consecutive fiscal quarters for which financial statements have been (or were required to have been) delivered
        (the “Specified Prepayments General Basket”) and (v) Specified Prepayments in respect of earn-outs
        provided that (x) no event of default has occurred and is then continuing and (y) there is pro forma compliance
        with the Financial Covenant; provided that any AHYDO catch-up payments shall be permitted);

         

        (c) limitations on liens (which shall
        permit, among other exceptions, (i) liens securing Permitted Ratio Debt (other than clause (2)(z) thereof) and Incremental
        Equivalent Debt, in each case, incurred in accordance with the terms thereof, (ii) liens securing debt permitted to be assumed
        in connection with a Permitted Acquisition or other similar investment and not incurred in contemplation thereof (secured only
        by the assets acquired in such Permitted Acquisition or investment), (iii) liens securing obligations incurred by non-Loan
        Parties to the extent the obligations secured by such liens are permitted and the assets subject to such liens are assets of such
        non-Loan Parties, (iv) liens securing letters of credit or similar arrangements permitted under clause (e)(vi) below
        and (v) a general lien basket securing debt in an amount not to exceed an amount to equal the General Debt Basket (as defined
        below), provided that liens incurred under this clause (v) may be pari passu with (but not senior to) the liens
        securing the Facilities;

 

    	 	C-29	 

     

    

 

	 	 	(d)  limitations on loans, investments and acquisitions (which shall permit, among other exceptions, (i)  investments in any Loan Party, (ii) investments in non-Loan Party restricted subsidiaries of the Borrower not to exceed (when aggregated with all usage of the Non-Loan Party Permitted Acquisition Basket (as defined below) and the Other Entities Investment Basket (as defined below)), the greater of (x) $23 million and (y) 25% of Consolidated EBITDA for the most recently completed period of four consecutive fiscal quarters for which financial statements have been (or were required to have been) delivered (the “Non-Loan Party Investments Basket”), (iii) Permitted Acquisitions, (iv) a general investments basket not to exceed the greater of (x) $23 million and (y) 25% of Consolidated EBITDA for the most recently completed period of four consecutive fiscal quarters for which financial statements have been (or were required to have been) delivered (the “Investments General Basket”), (v) investments in joint ventures, unrestricted subsidiaries and similar businesses not to exceed, together with all usage of the Non-Loan Party Investments Basket and the Non-Loan Party Permitted Acquisition Basket, the greater of (x) $23 million and (y) 25% of Consolidated EBITDA for the most recently completed period of four consecutive fiscal quarters for which financial statements have been (or were required to have been) delivered (the “Other Entities Investments Basket”), (vi) subject to terms and conditions to be agreed, activities related to tax planning so long as, after giving effect thereto, the guarantees and the security interest of the Lenders in the Collateral (including the value thereof) are not impaired, (vii) investments in reliance on the Available Amount Basket, (viii) subject to no continuing event of default, other investments subject to pro forma compliance with a Total Net Leverage Ratio level not in excess of 0.50x above the Closing Date Total Net Leverage Ratio (the “Leverage Based Investments Exception”), (ix) a basket to be agreed for loans and advances to officers and directors, members of management and consultants made in connection with such person’s purchase of the equity interests of the Borrower and (x) a basket for investments funded with qualified equity proceeds or consideration paid in equity that does not build the Available Amount Basket);

 

    	 	C-30	 

     

    

 

	 	 	(e) limitations on debt, guarantees and hedging arrangements (which shall permit, among other exceptions (all of which permitted indebtedness, other than indebtedness contemplated by clause (iv)(2)(z) below, may be secured to the extent permitted by exceptions to the lien covenant in clause (c) above), (i) any secured or unsecured notes or loans of Loan Parties issued in lieu of Incremental Loans (such loans or notes, “Incremental Equivalent Debt”); provided that the other requirements related to the incurrence of any Incremental Loans (other than clauses (i), (iv), (vi), (vii) ( unless such debt is in the form of pari passu term loans), (ix) and (x) of the tenth paragraph under the heading “Incremental Facilities” above), shall be satisfied; provided that such Incremental Equivalent Debt shall reflect market terms and conditions at the time of incurrence or issuance thereof, in each case, as determined in good faith by the Borrower, (ii) the Facilities, (iii) purchase money indebtedness and capital leases (including any indebtedness incurred in connection with sale-leaseback transactions) not to exceed the greater of (x) $15 million and (y) 16% of Consolidated EBITDA for the most recently completed period of four consecutive fiscal quarters for which financial statements have been (or were required to have been) delivered, (iv) other indebtedness not to exceed the sum of (1) the Incremental Dollar Basket (it being understood that any debt incurred under this clause (iv)(1) shall reduce the Incremental Dollar Basket by a like amount) and (2) additional amounts subject to (x) in the case of indebtedness that is secured by a lien on the Collateral ranking pari passu with the liens securing the Facilities, (I) an intercreditor agreement in a form to be agreed and attached to the Financing Documentation or otherwise in a form reasonably acceptable to the Administrative Agent and (II) the First Lien Net Leverage Ratio does not exceed 0.50x above Closing Date First Lien Net Leverage Ratio (or, in the case of any debt incurred to finance a Permitted Acquisition or similar investment permitted under the Financing Documentation, the First Lien Net Leverage Ratio as of the last day of the then most recently ended fiscal quarter for which financial statements have been (or were required to have been) delivered), (y) in the case of indebtedness that is secured by a lien on the Collateral ranking junior to the liens securing the Facilities, (I) an intercreditor agreement in a form to be agreed and attached to the Financing Documentation or otherwise in a form reasonably acceptable to the Administrative Agent and (II) a maximum pro forma Secured Net Leverage Ratio no greater than 0.75x above the Closing Date Secured Net Leverage Ratio (or, in the case of any debt incurred to finance a Permitted Acquisition or similar investment permitted under the Financing Documentation, the Secured Net Leverage Ratio as of the last day of the then most recently ended fiscal quarter for which financial statements have been (or were required to have been) delivered), and (z) in the case of unsecured debt, (I) the Total Net Leverage Ratio does not exceed 1.00x above the Closing Date Total Net Leverage Ratio (or, in the case of any debt incurred to finance a Permitted Acquisition or similar investment permitted under the Financing Documentation, the Total Net Leverage Ratio as of the last day of the then most recently ended fiscal quarter for which financial statements have been (or were required to have been) delivered) or (II) the Interest Coverage Ratio on a pro forma basis is not less than 2.00:1.00, in each case so long as, subject to the exceptions for non-Loan Party debt in the second proviso immediately below, the requirements related to the incurrence of any Incremental Loans (other
than clauses (i), (iv), (vi), (vii) (unless such debt is in the form of pari passu term loans), (ix) and (x) of the tenth paragraph under the heading “Incremental Facilities” above), are satisfied; provided that such Permitted Ratio Debt shall reflect market terms and conditions at the time of incurrence or issuance thereof, in each case, as determined in good faith by the Borrower; provided further that the aggregate amount of debt incurred by non-Loan Parties pursuant to this clause (iv) shall not exceed (together with debt described in clauses (vii) and (viii), the greater of (x) $18 million and (y) 20% of Consolidated EBITDA for the most recently completed period of four consecutive fiscal quarters for which financial statements have been (or were required to have been) delivered (the “Shared Non-Guarantor Debt Cap”) (debt incurred under this clause (iv) being, “Permitted Ratio Debt”), (v) a general debt basket not to exceed the greater of (x) $18 million and (y) 20% of Consolidated EBITDA for the most recently completed period of four consecutive fiscal quarters for which financial statements have been (or were required to have been) delivered (the “General Debt Basket”), (vi) letters of credit existing on the Closing Date in an amount not to exceed $1,000,000, (vii) debt of foreign subsidiaries of any Loan Party not to exceed together with debt described in clauses (iv) (to the extent incurred by non-Loan Parties) and (viii), the Shared Non-Guarantor Debt Cap, (viii) debt of any joint ventures of any Loan Parties not to exceed (together with debt described in clauses (iv) (to the extent incurred by non-Loan Parties) and (vii), the Shared Non-Guarantor Debt Cap, (ix) debt assumed in connection with a Permitted Acquisition or other permitted investment and not incurred in contemplation of such acquisition or investment, subject to pro forma compliance the Financial Covenant and (x) other debt in an amount not to exceed the amount of capital contributions made to the Borrower or equity (other than disqualified equity) issued by the Borrower since the Closing Date (so long as such capital contributions are not included in the calculation of the Available Amount Basket (as defined below)));

 

    	 	C-31	 

     

    

 

	 	 	
        (f) limitations on mergers, acquisitions
        and asset sales (including sale leasebacks and sales of equity of subsidiaries) (which limitations on asset sales shall permit,
        among other exceptions (i) asset sales subject to, in the case of sales involving a purchase price greater than $5 million
        individually and $10 million in the aggregate per fiscal year, (x) a customary 75% cash consideration requirement for proceeds
        in excess of the sale price thresholds (with customary exceptions to the cash consideration requirement plus the ability
        to designate certain non-cash assets as cash up to the greater of (x) $10 million and (y) 12% of Consolidated EBITDA
        in the aggregate (“Designated Non-Cash Consideration”)), (y) a fair market value requirement as
        determined in good faith by the Borrower or the applicable restricted subsidiary and (z) not continuing event of default (provided
        that the Borrower shall have the option of making such determination under this clause (z) as of the date the definitive agreement
        for such asset sale is signed so long as at closing no payment or bankruptcy event of default shall exist), (ii) dispositions
        of non-core assets acquired in connection with a Permitted Acquisition or other permitted investment (so long as such disposition
        of non-core assets is for fair market value (as determined in good faith by the Borrower), (iii) [reserved] and (iv) other
        dispositions not to exceed the greater of (x) $9 million and (y)  10% of Consolidated EBITDA for the most recently completed
        period of four consecutive fiscal quarters for which financial statements have been (or were required to have been) delivered);

         

        (g) limitations on transactions with
        affiliates in excess of an amount to be agreed (which shall not include an “ordinary course” requirement); and

         

        (h) limitations on changes in fiscal
        year; changes in business; amendments to organizational documents of the Loan Parties in a manner that would be materially adverse
        to the Lenders, taken as a whole as it relates to any Collateral or Guarantees; amendments to documentation governing Covered Debt.

 

    	 	C-32	 

     

    

 

	 	 	In addition, certain negative covenants to be mutually agreed shall include an “Available Amount Basket”, which shall mean a cumulative amount equal to (a) the greater of (x) $5 million and (y) 6.0% of Consolidated EBITDA for the most recently completed period of four consecutive fiscal quarters for which financial statements have been (or were required to have been) delivered (the “Starter Basket”) plus (b) the cumulative amount of the Excess Cash Flow (which amount shall not be negative) that has not been required to be applied to the prepayment of the Term Loan B Facility pursuant to the mandatory prepayment provisions of such facility (minus the amount of any voluntary prepayments and loan buybacks that reduce the Excess Cash Flow prepayment amount) (this clause (b) being the “Available Amount Grower Component”), plus (c) the cash proceeds of new equity issuances (other than disqualified equity in the case of the Borrower) of the Borrower to the extent contributed to the Borrower after the Closing Date, plus (d)  capital contributions to the Borrower after the Closing Date (subject to certain limitations to be mutually agreed), plus (e) the net cash proceeds received by the Borrower from debt and disqualified stock issuances issued after the Closing Date and exchanged or converted into equity (other than disqualified equity), plus (f) distributions and similar amounts received in cash or cash equivalents by the Borrower and its restricted subsidiaries in respect of investments (including investments in non-Guarantors, but excluding tax distributions received from unrestricted subsidiaries) made using the Available Amount Basket (not to exceed the original amount of such investments), plus (g) the net cash proceeds to the Borrower and its restricted subsidiaries of sales of investments made using the Available Amount Basket, plus (h) the investments of the Borrower and its restricted subsidiaries in any unrestricted subsidiary out of the Available Amount Basket that has been re-designated as or merged into a restricted subsidiary, plus (i) any Declined Proceeds, plus (j) net proceeds of non-ordinary course asset sales to the extent such asset sale proceeds are excepted from the related mandatory prepayment provision as a result of the leverage-based stepdowns (“Retained Asset Sale Proceeds”). The Available Amount Basket may be used for investments, Restricted Payments and Specified Prepayments of Covered Debt subject to no event of default.

 

    	 	C-33	 

     

    

 

	 	 	
        The Borrower or any restricted subsidiary
        will be permitted to make acquisitions of (i) the equity interests in a person that becomes a wholly-owned restricted subsidiary
        or (ii) all or substantially all the assets of any person, together with any investment necessary to consummate the foregoing
        (each, a “Permitted Acquisition”), so long as (a) after giving effect thereto, no event of default
        has occurred and is continuing, (b) the acquired company or assets are in the same or a generally related, complementary or
        ancillary line of business as the Borrower and its subsidiaries, (c) subject to the limitations set forth in the sections
        titled “Guarantees” and “Security” above, the acquired company and its subsidiaries (except as designated
        as an unrestricted subsidiary as provided in “Unrestricted Subsidiaries” above as described in clause (e) or as
        otherwise permitted under the investment covenant) will become Guarantors and pledge their Collateral to the Administrative Agent,
        (d) the Borrower will not be permitted to use the Permitted Acquisition basket to acquire unrestricted subsidiaries, (e) investments
        in non-Loan Parties and/or assets that are not pledged as Collateral to the Administrative Agent shall not exceed (when aggregated
        with all usage of the Non-Loan Party Investments Basket and the Other Entities Investments Basket) the greater of (x) $23
        million and (y) 25% of Consolidated EBITDA for the most recently completed period of four consecutive fiscal quarters for
        which financial statements have been (or were required to have been) delivered (the “Non-Loan Party Permitted Acquisition
        Basket”) and (f) the Borrower and its restricted subsidiaries shall be in pro forma compliance with the Financial
        Covenant.

         

        In connection with any Limited Condition
        Transaction permitted by the foregoing covenants, for purposes of determining (x) compliance with any financial ratio, (y) accuracy
        of representations and warranties (other than Specified Representations in connection with an acquisition, which shall be accurate
        in all material respects as of the closing date of such acquisition) or occurrence of default (other than a payment or bankruptcy
        default) or (z) availability under baskets (including baskets measured as a percentage of Consolidated EBITDA), in each case,
        in connection with such Permitted Acquisition or investment, the Borrower shall have the option of making any such determinations
        as of the date the definitive agreement for such Permitted Acquisition or investment is signed (and any such financial ratio or
        basket shall be calculated as if the acquisition or investment in connection therewith were consummated on such date).

 

    	 	C-34	 

     

    

 

	 	 	Each covenant (and definitions used therein) shall also (a) include additional customary baskets, exceptions and thresholds to be agreed and as may otherwise be set forth in the Financing Documentation, including customary specific and general dollar baskets, (b) permit classification and reclassification from time to time by the Borrower among one or more available baskets and exceptions within the same covenant (other than the exceptions permitting the existence of the Facilities, which may not be used for any such reclassification), (c) provide that certain exceptions, limitations and baskets based on a specified dollar amount shall also include a builder or grower component (regardless of whether such exceptions, limitations or baskets refer to a builder or grower component) based on a percentage of Consolidated EBITDA equivalent to the initial monetary amount of each such exception, limitation or basket (each, a “Growth Component”), and (d) permit reliance on one or more available exceptions and baskets at the Borrower’s option and if such exceptions and baskets within a single covenant include a combination of fixed amounts (including any related builder or grower component) and amounts permitted under incurrence-based tests in concurrent transactions, a single transaction or a series of related transactions, any incurrence-based tests shall be calculated without giving effect to the utilization of such fixed amounts (it being understood and agreed that this clause (d) shall not apply to the fixed baskets permitting the incurrence of the Facilities).
	 	 	 
	Financial Covenant:	 	Revolving Credit Facility and Term Loan B Facility: A maximum Total Net Leverage Ratio with regard to the Borrower and its restricted subsidiaries on a consolidated basis (the “Leverage Financial Covenant”), which Leverage Financial Covenant will be tested as of the end of each fiscal quarter of the Borrower and its restricted subsidiaries, will be subject to stepdowns to be agreed and will be otherwise set at a level determined in accordance with the Fee Letter (the “Financial Covenant”). 
	 	 	 
	Events of Default:	 	Limited to the following (to be applicable to the Borrower and its restricted subsidiaries and subject, where appropriate, to thresholds and grace periods to be mutually agreed): nonpayment of principal, premium, unreimbursed obligations related to drawn Letters of Credit, interest or other amounts (subject to 5 days’ grace period for interest, fees or other amounts); violation of negative covenants (including the Financial Covenant) and affirmative covenants to maintain legal existence (with respect to the Borrower), give notice of default or with respect to use of proceeds; violation of other covenants (subject to a 30-day cure period after the earlier of (x) the date on which a responsible officer of the Borrower becomes aware of such default and (y) the date on which notice of default from the Administrative Agent is received by the Borrower); incorrectness of representations and warranties in any material respect; cross-default (giving effect to grace or cure periods, if any are applicable) and cross-acceleration to material indebtedness in excess of $15 million (such indebtedness, “Material Debt”); bankruptcy and other insolvency events; material monetary judgments in excess of insurance (to the extent insurer has been notified of the claim and insurer has not denied coverage) not to exceed $15 million; ERISA events, subject to a Material Adverse Effect; invalidity (actual or asserted (in writing) by any Loan Party) of material guarantees or material security documents; and “change of control” (to be defined as to voting if any person or group acquires, directly or indirectly, more than 35% of the voting interests of the Borrower).

 

    	 	C-35	 

     

    

 

	Voting:	 	Amendments and waivers of the Financing Documentation will require the approval of Lenders (other than Defaulting Lenders (as defined below)) holding more than 50% of the aggregate amount of the loans and commitments under the Facilities (the “Required Lenders”), except that (a) the consent of each Lender directly and adversely affected thereby (but not the Required Lenders, other than in the case of clause (a)(ii), which shall require the consent of each Lender increasing its commitments as well as the consent of the Required Lenders if such increase is effectuated other than pursuant to provisions in the Financing Documentation specifically permitting increases of commitments without the further approval of Required Lenders) shall be required with respect to: (i) modifications to any provision requiring pro rata treatment of the Lenders (other than for purposes of any amendment that would extend the final maturity date of any Loans and certain other exceptions, in each case, on terms to be mutually agreed), (ii) increases in the commitment of such Lender, (iii) reductions or forgiveness of principal, interest, premiums, fees, or reimbursement obligations or other amounts payable to such Lender (it being understood that any change in any definition applicable to any ratio used in the calculation of such rate of interest or fees (or any component definition thereof) shall not constitute a reduction in any rate of interest or any fee), (iv) extensions of final maturity or scheduled amortization of the loans or commitments of such Lender or of the date for payment to such Lender of any interest, premiums, fees or any reimbursement obligation, (v) certain modifications to the “waterfall” provisions and (vi) subordination of the liens on the Collateral securing the Obligations, (b) the consent of each Lender shall be required with respect to (i) modifications to voting requirements or percentages and (ii) releases of all or substantially all of the value of the Guarantees, or all or substantially all of the Collateral, (c) [reserved] and (d) Lenders holding a majority of the loans and commitments under the Revolving Credit Facility shall have the ability to amend or waive any conditions precedent to the extension of credit under the Revolving Credit Facility (it being understood that the waiver of any event of default by the Required Lenders shall not constitute a waiver of a condition precedent to the extension of credit under the Revolving Credit Facility).

 

    	 	C-36	 

     

    

 

	 	 	
        The Financing Documentation will contain
        customary voting protections for the Administrative Agent, the Issuing Lenders and the Swingline Lender.

         

        The Borrower or the Administrative Agent
        shall, subject to usual and customary conditions, have the right to replace a Lender or terminate the commitment of a Lender on
        a non-pro rata basis (a) in connection with amendments and waivers requiring the consent of all Lenders or of all Lenders
        directly affected thereby so long as the consent of the Required Lenders has been obtained, (b) if such Lender asserts a claim
        for any funding protection, whether for increased costs, taxes, required indemnity payments or otherwise, (c) if such Lender
        is a Defaulting Lender, or (d) if such Lender elects not to participate in any “amend and extend” transaction.

         

        In addition, if the Administrative Agent
        and the Borrower shall jointly identify an obvious error or any error or omission of a technical nature in the Financing Documentation,
        then the Administrative Agent and the Borrower shall be permitted to amend such provision without further action or consent by
        any party.

         

        In addition, the Financing Documentation
        will permit technical and conforming modifications to the loan documents with the consent of the Borrower and the Administrative
        Agent (and no other person) to the extent necessary (i) to integrate any incremental facilities, debt exchanges, refinancing
        facilities or amend and extend transactions, (ii) to integrate or make administrative modifications with respect to borrowings,
        (iii) to integrate any terms or conditions from any documentation in respect of an Incremental Facility that are more restrictive,
        (iv) to increase the interest rates (including any interest rate margins or interest rate floors), fees and other amounts
        payable to any class or classes of Lenders, (v) to increase, expand and/or extend or “reboot” the call protection
        provisions and any “most favored nation” provisions benefiting any class or classes of Lenders and/or (vi) to
        modify any other provision in a manner more favorable to the then-existing Lenders, in each case in connection with the issuance
        or incurrence of any incremental facilities or other permitted indebtedness.

 

    	 	C-37	 

     

    

 

	Defaulting Lenders:	 	The Financing Documentation shall contain customary provisions relating to “defaulting” Lenders (“Defaulting Lenders”) (including provisions relating to the suspension of voting rights and rights to termination or assignment of the Loans of such Defaulting Lenders).
	 	 	 
	Cost and Yield Protection:	 	Usual and customary for facilities and transactions of this type.
	 	 	 
	Assignments and Participations:	 	The Lenders will be permitted to assign (other than to Disqualified Institutions or natural persons) loans and commitments under the Facilities with the consent of the Borrower, not to be unreasonably withheld or delayed (it being understood that the withholding of consent by the Borrower to any assignment to a Disqualified Institution shall be deemed reasonable); provided that such consent of the Borrower (x) shall not be required, (i) if such assignment of any loan or commitment under the Facilities is made to another Lender or an affiliate or approved fund of any Lender, (ii) during the primary syndication of loans and commitments under the Facilities to persons (other than Disqualified Institutions) identified to the Borrower prior to the Closing Date and approved by the Borrower and (iii) after the occurrence and during the continuance of a payment or bankruptcy event of default (other than with respect to a Disqualified Institution) and (y) shall be deemed to have been given if the Borrower has not responded within 10 business days of a written request for such consent. All assignments will also require the consent of the Administrative Agent, not to be unreasonably withheld or delayed. All assignments of loans or commitments under the Revolving Credit Facility shall require the consent of each Issuing Lender and the Swingline Lender. Each assignment in respect of the Revolving Credit Facility will be in an amount of an integral multiple of $5,000,000 or, if less, all of such Lender’s remaining loans and commitments of the applicable class. Each assignment in respect of the Term Loan B Facility will be in an amount of an integral multiple of $1,000,000 or, if less, all of such Lender’s remaining loans and commitments of the applicable class.

 

    	 	C-38	 

     

    

 

	 	 	
        The Lenders will have the right to participate
        their commitments and loans to other persons (other than any natural persons (including investment vehicles owned or operated primarily
        for the benefit of one or more natural persons), the Borrower or any of its subsidiaries, any Defaulting Lender and any Disqualified
        Institutions (to the extent that a list of Disqualified Institutions (other than any “clearly identifiable affiliate”
        (on the basis of such affiliate’s name) included in the definition of “Disqualified Institutions”) has been made
        available to the Lenders upon request)). Participants shall have the same benefits as the Lenders with respect to yield protection
        and increased cost provisions, subject to customary limitations and restrictions. Voting rights of participants shall be limited
        solely to those matters set forth in clauses (a) and (b) under the first paragraph under the heading “Voting”
        with respect to which the affirmative vote of the Lender from which it purchased its participation would be required. Pledges of
        loans in accordance with applicable law shall be permitted without restriction. The Administrative Agent shall have no responsibility
        to ensure that the foregoing limitations are observed by the Lenders.

         

        In the event that any assignment or participation
        by a Lender shall occur without the Borrower’s consent to a Disqualified Institution (or any affiliate thereof) or, to the
        extent the Borrower’s consent is required under the terms of the Financing Documentation, to any other person, the Borrower
        shall be entitled to (a) exercise any remedy set forth in the Financing Documentation available to the Borrower in addition
        to any other remedy available to the Borrower at law or at equity and/or (b) purchase such assignee’s commitments on
        a non-ratable basis; provided that the Administrative Agent shall have the ability to provide the list of Disqualified Institutions
        to Lenders upon request.

         

        The Administrative Agent shall not be responsible
        or have any liability for, or have any duty to ascertain, inquire into, monitor or enforce, compliance with provisions hereof relating
        to Disqualified Institutions, and, without limiting the generality of the foregoing, the Administrative Agent shall not (x) be
        obligated to ascertain, monitor or inquire as to whether any Lender or participant or prospective lender or participant is a Disqualified
        Institution or (y) have any liability with respect to or arising out of any assignment or participation of loans, or disclosure
        of confidential information, to any Disqualified Institution.

 

    	 	C-39	 

     

    

 

	 	 	Assignments of Term B Loans to the Borrower or any of its restricted subsidiaries shall be permitted so long as: (i) any offer to purchase or take by assignment any Term B Loans by the Borrower or its subsidiaries shall have been made to all Term B Lenders pro rata (with buyback mechanics to be mutually agreed) or such assignment is by way of negotiated open market purchases, which is not required to be offered to all lenders on a ratable basis; (ii) no event of default has occurred and is continuing, (iii) the Term B Loans purchased are immediately and automatically cancelled and (iv) the Revolving Facility (or any Refinancing Revolving Facility) shall not be utilized to fund the relevant assignment.  None of the Borrower or any of its subsidiaries shall be required to make a representation that, as of the date of any such purchase or assignment, it is not in possession of material non-public information with respect to the Borrower, its subsidiaries or their respective securities.
	 	 	 
	Expenses and Indemnification:	 	The Financing Documentation will contain customary indemnities for the Administrative Agent, the Lead Arrangers, the Lenders, the Issuing Lenders and their respective affiliates’ employees, officers and agents as reasonably determined by the Administrative Agent (including, without limitation, for all reasonable and documented out-of-pocket costs and expenses of the Lenders incurred after the occurrence, and during the continuance of, an event of default under the Facilities); provided that the Borrower shall not be responsible for the fees and expenses of more than one primary counsel and one regulatory counsel for the Administrative Agent and the Lenders, taken as a whole, one local counsel for each relevant jurisdiction, and, in each case, if reasonably necessary or advisable in the judgment of the affected person in the case of an actual or perceived conflict of interest, one additional primary counsel and one regulatory counsel in each relevant jurisdiction for each group of similarly situated affected persons and one additional local counsel in each relevant jurisdiction, in each case other than as a result of (i) such person's gross negligence, willful misconduct or bad faith as determined by a court of competent jurisdiction in a final and non-appealable decision or (ii) a material breach of the obligations of such person (or related person) under the Facilities as determined by a court of competent jurisdiction in a final and non-appealable decision; provided, further, that the Borrower shall not be liable to any particular indemnified person pursuant to this indemnity for any losses for any suit, claim, litigation, investigation or other proceeding that is brought by an indemnified person against any other indemnified person (other than (x) any claims against an indemnified person acting in its capacity as an agent, arranger or similar role under the Facilities and (y) claims arising out of any act or omission of the Borrower or any of its subsidiaries or affiliates, in each case, for the avoidance of doubt, unless such claims would otherwise be excluded pursuant to clause (i) above).

 

    	 	C-40	 

     

    

 

	 	 	The Financing Documentation will require the Borrower to pay all reasonable and documented out-of-pocket expenses of the Administrative Agent, the Lead Arrangers, the Lenders and the Issuing Lenders within 30 days of receipt of a written demand therefor (together with backup documentation supporting such reimbursement request) associated with (a) the syndication of the Facilities and the preparation, execution, delivery and administration of the Financing Documentation and any amendment or waiver with respect thereto and (b) in connection with the enforcement of the Financing Documentation; provided that, in the case of clauses (a) and (b) above, the Borrower shall not be responsible for the fees and expenses of more than one primary counsel and one regulatory counsel for the Administrative Agent and the Lenders, taken as a whole, one local counsel for each relevant jurisdiction, and, in each case, if reasonably necessary or advisable in the judgment of the affected person in the case of an actual or perceived conflict of interest, one additional primary counsel for each group of similarly situated affected persons in each relevant jurisdiction.
	 	 	 
	EU Bail-In Provisions:	 	Customary EU Bail-In provisions reasonably acceptable to the Administrative Agent shall be included in the Financing Documentation, which shall include a provision specifying that in the event any Lender (or a direct or indirect parent company thereof) becomes subject to a “Bail-in Action”, such Lender shall be deemed to be a Defaulting Lender for all purposes under the Financing Documentation.
	 	 	 
	Governing Law and Forum:	 	New York; provided that the Acquisition Agreement Governing Law shall govern in determining the Acquisition Related Matters.
	 	 	 
	Counsel to Administrative Agent:	 	Davis Polk & Wardwell LLP.

 

    	 	C-41	 

     

    

 

EXHIBIT C

 

Project
Hometown     

$195,000,000 Senior Secured Credit Facilities

 

Summary
of Additional Conditions Precedent

 

Capitalized terms used
but not defined in this Exhibit C (the “Conditions Exhibit”) shall have the meanings
set forth in the other Exhibits and Annexes to the Commitment Letter to which this Transaction Description is attached (the “Commitment
Letter”) or in the Commitment Letter. In the case of any such capitalized term that is subject to multiple and differing
definitions, the appropriate meaning thereof in this Exhibit C shall be determined by reference to the context
in which it is used.

 

The availability and
funding of each Facility on the Closing Date shall be subject to the satisfaction (or written waiver by the Initial Lenders) of
each of the following conditions (subject in all cases to the Limited Conditionality Provision).

 

1.           The
Lenders’ commitments under the Facilities will be subject to the execution and delivery by the Loan Parties party thereto
of the Financing Documentation consistent with the terms of the Commitment Letter and the Term Sheet and this Exhibit C.

 

2.            Prior
to or substantially concurrently with the funding under the Term Loan B Facility, the Acquisition shall have been consummated in
accordance with the terms and conditions of the Acquisition Agreement, and the Acquisition Agreement shall not have been altered,
amended or otherwise changed or supplemented or any provision or condition therein waived, and neither the Company nor any affiliate
thereof shall have consented to any action which would require the consent of the Company or such affiliate under the Acquisition
Agreement, if such alteration, amendment, change, supplement, waiver or consent would be adverse to the interests of the Lenders
in any material respect, in any such case without the prior written consent of the Administrative Agent (such consent not to be
unreasonably withheld, delayed or conditioned); provided that (a) any alteration, amendment, change, supplement, waiver
or consent which results in a reduction in the purchase price for the Acquisition shall be deemed to be not materially adverse
to the interests of the Lenders so long as such decrease (x)(1) is made pursuant to any purchase price or similar adjustment
provisions set forth in the Acquisition Agreement or (2) is less than 10.0% of the aggregate purchase price for the Acquisition
and (y) is applied to reduce the Term Loan B Facility on a dollar-for-dollar basis (it being understand and agreed that the
Borrower shall only be required to reduce the Term Loan Facility pursuant to this clause (a) in connection with a purchase
price reduction by an amount equal to the lesser of (i) the actual amount of such purchase price reduction and (ii) an
amount resulting in the aggregate amount of commitments in respect thereof equaling $150,000,000), (b) any increase in purchase
price for the Acquisition shall not be deemed to be materially adverse to the Lenders so long as such increase is not funded with
additional indebtedness of the Borrower or its subsidiaries (it being understood and agreed that no purchase price, working capital
or similar adjustment provisions set forth in the Acquisition Agreement shall constitute a reduction or increase in the purchase
price) and (c) any modification to the definition of “Material Adverse Effect” shall be deemed to be materially
adverse to the Lenders.

 

    

     

    

 

3.           The
Specified Acquisition Agreement Representations shall be true and correct in all material respects as of the Closing Date (except
in the case of any Specified Acquisition Agreement Representation which expressly relates to a given date or period, such representation
and warranty shall be true and correct in all material respects as of the respective date or for the respective period, as the
case may be) solely to the extent required by the Limited Conditionality Provision and the Specified Representations shall be true
and correct in all material respects as of the Closing Date (except in the case of any Specified Representation which expressly
relates to a given date or period, such representation and warranty shall be true and correct in all material respects as of the
respective date or for the respective period, as the case may be).

 

4.            Since
the date hereof, there shall not have occurred a Material Adverse Effect (as defined in the Acquisition Agreement as in effect
on the date hereof).

 

5.           The
Refinancing shall have been consummated prior to, or shall be consummated substantially concurrently with, the initial borrowing
under the Facilities.

 

6.            Subject
to the Limited Conditionality Provisions, the Guarantees and security interests required by the Term Sheet shall have been executed
and delivered by the Loan Parties party thereto, and, subject to the Limited Conditionality Provisions, the Lenders shall have
a perfected first priority security interest in all assets of the Borrower and the Guarantor as, and to the extent, required by
the Term Sheet, subject in each case to all liens permitted under the Term Sheet.

 

7.           The
Lenders shall have received (1) customary legal opinions from counsel (including, without limitation, New York counsel), (2) a
solvency certificate as to the solvency of the Borrower and its subsidiaries on a consolidated basis after giving effect to the
Transactions, in the form attached as Annex I to this Exhibit C, from the chief financial officer
(or equivalent position) of the Company and (3) customary resolutions, officer’s certificates and good standing certificates
(to the extent applicable) in the respective jurisdictions of organization of the Borrower and the Guarantors.

 

8.           The
Lead Arrangers shall have received:

 

(i)(1) audited
consolidated balance sheets and related statements of income and cash flows of the Company and its subsidiaries for the fiscal
years of the Company ended December 31, 2018, December 31, 2019 and any fiscal year of the Company thereafter ended at
least 90 days prior to the Closing Date (it being understood and agreed that the Lead Arrangers have already received such audited
financials for the fiscal years of the Company ended December 31, 2018 and December 31, 2019) and (2) unaudited
consolidated balance sheets and related statements of income and cash flows of the Company and its subsidiaries for each of the
first three fiscal quarters of the Company ended after the close of its most recent fiscal year and at least 45 days prior to the
Closing Date (it being understood and agreed that the Lead Arrangers have already received such unaudited financials for the fiscal
quarters of the Company ended March 31, 2020 and June, 2020); provided that the Lead Arrangers will be deemed to have
received financial statements referred to in clauses (1) and (2) if the Company has filed such financial statements with
the Securities and Exchange Commission via the EDGAR filing system and such financial statements are publicly available;

 

    	 	D-2	 

     

    

 

(ii)(1) audited
consolidated balance sheets and related statements of income and cash flows of the Acquired Business for the fiscal years ended
September 30, 2018, September 30, 2019 and September 30, 2020 and thereafter for the most recently completed fiscal
year of the Acquired Business ended at least 90 days prior to the Closing Date (it being understood and agreed that (i) any
audited financial statements of the Acquired Business as of December 31, 2020 shall consist of balance sheets, statements
of income and related statements of income and cash flows for the three-month stub period then ended and (ii) the Lead Arrangers
have already received such audited financials for the fiscal years of the Acquired Business ended September 30, 2018, September 30,
2019 and September 30, 2020) and (2) unaudited consolidated balance sheets and related statements of income and cash
flows of the Acquired Business for each of the first three fiscal quarters of the Acquired Business ended after the close of its
most recent fiscal year and at least 45 days prior to the Closing Date (it being understood and agreed that no unaudited financial
statements of the Acquired Business shall be required for any fiscal quarter ending prior to March 31, 2020); and

 

(iii) a pro
forma consolidated balance sheet of the Company and its subsidiaries (including the Acquired Business) and a pro forma
consolidated statement of income of the Company and its subsidiaries (including the Acquired Business) as of and for the 12-month
period ending on the last day of the most recently completed four-fiscal quarter period for which historical financial statements
of the Borrower are provided pursuant to paragraph 8(i)(I) or 8(i)(II), prepared after giving effect to the Transactions as
if the Transactions had occurred at the beginning of such period, as applicable, which need not be prepared in compliance with
Regulation S-X of the Securities Act of 1933, as amended, or include adjustments for purchase accounting (including adjustments
of the type contemplated by Financial Accounting Standards Board Accounting Standards Codification 805 (formerly SFAS 141R), tax
adjustments, deferred taxes or similar pro forma adjustments) (it being understood that any purchase accounting adjustments may
be preliminary in nature and be based only on estimates and allocations reasonably determined by the Borrower).

 

9.            All
costs, fees and expenses (including, without limitation, legal fees and expenses) payable to each Agent and the Lenders in connection
with the Transactions shall have been paid (or shall be paid from or offset against the proceeds of the initial fundings under
the Term Loan B Facility) to the extent due pursuant to the Commitment Letter or the Fee Letter and to the extent a reasonably
detailed invoice has been delivered to the Borrower at least two business days prior to the Closing Date (except as otherwise reasonably
agreed by the Borrower).

 

10.          So
long as requested at least 10 business days prior to the Closing Date, the Agents shall have received at least three business days
prior to the Closing Date all documentation and other information (including Beneficial Ownership Certification) required by regulatory
authorities under applicable “know your customer” and anti-money laundering rules and regulations, including without
limitation the PATRIOT Act and the Beneficial Ownership Regulation.

 

    	 	D-3	 

     

    

 

11.         The
Borrower (a) shall have delivered (or caused to be delivered) to the Lead Arrangers the financial statements referred to
in paragraphs 8(i) or 8(ii) above (collectively, the “Required Information”) and (b) shall
have provided the Lead Arrangers prior to the Closing Date a single period of not less than 15 consecutive business days after
the Lead Arrangers’ receipt of the Required Information (assuming that the Closing Date were to occur on the last day of
such period of fifteen (15) consecutive Business Days) (the “Marketing Period”) to attempt to syndicate
the Term Loan B Facility (provided that (i) the Marketing Period shall be deemed not to commence until the earlier
of (x) the delivery of audited financial statements for the Company for the fiscal year ended December 31, 2020 and
audited financial statements for the Acquired Business for the fiscal year ended September 30, 2020 and the stub period ended
December 31, 2020 and (y) February 1, 2021 (provided that this provision shall not limit the requirement
to deliver the Required Financial Information as a condition to the start of the Marketing Period, (ii) the Marketing Period
shall not be required to be consecutive to the extent it would include any date from November 25, 2020 through and including
November 27, 2020, July 2, 2021, July 5, 2021, and any date from November 24, 2021 through and including November 26,
2021 (which dates shall not count for purposes of the 15 consecutive Business Day period), (iii) if such period has
not ended on or prior to December 17, 2020, then it will not commence until on or after January 4, 2021, (iv) if
the Marketing Period has not ended prior to August 27, 2021, then it will not commence until September 6, 2021, and
(v) if such period has not ended on or prior to December 17, 2021, then it will not commence until on or after January 4,
2022. If the Borrower in good faith reasonably believes it has delivered the Required Information, it may deliver to the Lead
Arrangers a written notice to that effect, in which case the Borrower will be deemed to have completed delivery of the Required
Information, and the Marketing Period will be deemed to have commenced on the date such notice is delivered to the Lead Arrangers,
in each case, unless the Lead Arrangers in good faith reasonably believe that the Borrower has not completed delivery of the Required
Information and, not later than 5:00 p.m. (New York time) two business days after the delivery of such notice by the Borrower,
the Lead Arrangers deliver a written notice to the Borrower to that effect (stating with reasonable specificity which elements
of the Required Information have not been delivered); provided, that the delivery of newly available financial statements
pursuant to paragraph 8 above during or after such 15 consecutive business day period shall not restart the Marketing Period;
provided further, that notwithstanding the foregoing, the delivery of the Required Information shall be satisfied at any
time at which (and so long as) the Lead Arrangers shall have actually received the Required Information, regardless of whether
or when any such notice is delivered by the Borrower.

 

(12)        The
Borrower shall have requested an aggregate principal amount of the Term Loan to be funded on the Closing Date of not less than
$150,000,000.

 

(13)         On
the Closing Date, after giving effect to the Transactions, the Borrower and its subsidiaries (including the Acquired Business)
shall not have any outstanding third party indebtedness for borrowed money other than (i) the Facilities, (ii) intercompany
indebtedness among the Borrower and its subsidiaries (including the Acquired Business) and (iii) other indebtedness approved
by the Lead Arrangers in their discretion.

 

(14)        There
shall not have been any amendments to the terms of the Series A Preferred Stock, compared to those delivered to the Lead Arrangers
prior to the date hereof, that would be adverse to the interests of the Lenders in any material respect, without the prior written
consent of the Lead Arrangers.

 

    	 	D-4	 

     

    

 

ANNEX I TO CONDITIONS ANNEX

 

FORM OF SOLVENCY CERTIFICATE

 

[●], _____

 

This Solvency Certificate
is being executed and delivered pursuant to Section [●] of that certain [●] (the “Credit Agreement”);
the terms defined therein being used herein as therein defined.

 

I, [●], the chief
financial officer of the Borrower, solely in such capacity and not in an individual capacity, hereby certify that I am the chief
financial officer of the Borrower and that I am generally familiar with the businesses and assets of the Borrower and its subsidiaries
(taken as a whole), and I am duly authorized to execute this Solvency Certificate on behalf of the Borrower pursuant to the Credit
Agreement.

 

I
further certify, solely in my capacity as chief financial officer of the Borrower, and not in my individual capacity, as of the
date hereof and after giving effect to the Transactions and the incurrence of the indebtedness and obligations being incurred in
connection with the Credit Agreement and the Transactions on the date hereof, that, (i) the sum of the debt (including contingent
liabilities) of the Borrower and its subsidiaries, on a consolidated basis, does not exceed the fair value of the present assets
of the Borrower and its subsidiaries on a consolidated and going concern basis; (ii) the present fair saleable value
of the assets of the Borrower and its subsidiaries on a consolidated basis, is not less than the amount that will be required to
pay the probable liabilities (including contingent liabilities) of the Borrower and its subsidiaries, on a consolidated basis,
on their debts as they become absolute and matured; (iii) the capital of the Borrower and its subsidiaries, on a consolidated
basis, is not unreasonably small in relation to the business of the Borrower or its subsidiaries, on a consolidated basis, as conducted
or contemplated as of the date hereof; and (iv) the Borrower and its subsidiaries, on a consolidated basis, are able to pay
their debts (including current obligations and contingent liabilities) as such debts mature and do not intend to incur, or believe
that they will incur, debts (including current obligations and contingent liabilities) beyond their ability to pay such debt as
they mature in the ordinary course of business. For the purposes hereof, the amount of any contingent liability at any time shall
be computed as the amount that, in light of all of the facts and circumstances existing at such time, represents the amount that
can reasonably be expected to become an actual or matured liability.

 

[Remainder of page intentionally left
blank]

 

    	 	D-5	 

     

    

 

IN WITNESS WHEREOF, I have
executed this Solvency Certificate on the date first written above.

 

 

	 	By:	 	 
	 	 	Name: [___]
	 	 	Title: Chief Financial Officer

 

    	 	D-6Document

Exhibit 4.1

EIGHTH SUPPLEMENTAL INDENTURE

DATED AS OF AUGUST 31, 2020

To

INDENTURE

dated as of May 3, 2012

among

MOLSON COORS BEVERAGE COMPANY, as Issuer

THE GUARANTORS NAMED THEREIN, as Guarantors

and

DEUTSCHE BANK TRUST COMPANY AMERICAS, as Trustee

    THIS EIGHTH SUPPLEMENTAL INDENTURE, dated as of August 31, 2020 (this “Eighth Supplemental Indenture”), to the Indenture dated as of May 3, 2012 (the “Original Indenture”), as supplemented by the First Supplemental Indenture thereto dated as of May 3, 2012, the Second Supplemental Indenture thereto dated as of June 15, 2012, the Third Supplemental Indenture thereto dated as of May 13, 2016, the Fourth Supplemental Indenture thereto dated as of August 19, 2016, the Fifth Supplemental Indenture thereto dated as of September 30, 2016, the Sixth Supplemental Indenture dated as of October 11, 2016, and the Seventh Supplemental Indenture dated as of January 11, 2018 (collectively, the “Supplemental Indentures” and, together with the Original Indenture and this Eighth Supplemental Indenture, the “Indenture”), is among Molson Coors Beverage Company, a Delaware corporation (formerly known as Molson
Coors Brewing Company, the “Company”), Coors Distributing Company LLC, a Delaware limited liability company (the “New Guarantor”), and Deutsche Bank Trust Company Americas, a New York banking corporation, as Trustee (the “Trustee”).

    WHEREAS, Section 14.1(k) of the Original Indenture provides that the Company, the Guarantors (as defined in the Original Indenture) and the Trustee may amend or supplement the Indenture without notice to or consent of any Securityholder to add Guarantors or co-obligors with respect to any series of Securities;

    WHEREAS, the Company desires to add the New Guarantor as a Guarantor under the Indenture;

    NOW, THEREFORE, THIS EIGHTH SUPPLEMENTAL INDENTURE WITNESSETH:

    That the parties hereto hereby agree as follows:

149281228.3 

    Section 1.    Defined Terms; Rules of Interpretation. Capitalized terms used herein and not otherwise defined herein shall have the respective meanings ascribed thereto in the Indenture. The rules of interpretation set forth in the Indenture shall be applied hereto as if set forth in full herein.

    Section 2.    Addition of Guarantor. The New Guarantor hereby agrees to guarantee payment of the Securities as a Guarantor, on the same terms and conditions as those set forth in Article XVI of the Original Indenture.

    Section 3.    Ratification of Original Indenture: Supplemental Indentures Part of Original Indenture. Except as expressly amended or supplemented hereby, the Original Indenture is in all respects ratified and confirmed and all the terms, conditions and provisions thereof shall remain in full force and effect. This Eighth Supplemental Indenture shall form a part of the Original Indenture for all purposes, and every Holder of any Securities heretofore or hereafter authenticated and delivered pursuant thereto shall be bound hereby. Except only insofar as the Original Indenture may be inconsistent with the express provisions of this Eighth Supplemental Indenture, in which case the terms of this Eighth Supplemental Indenture shall govern and supersede those contained in the Original Indenture, this Eighth Supplemental Indenture shall henceforth have effect so far as practicable as if all the provisions of the Original Indenture were contained in one instrument.

    Section 4.    Counterparts. This Eighth Supplemental Indenture may be executed in any number of counterparts, each of which when so executed shall be deemed to be an original, but all such counterparts shall together constitute one and the same instrument.

    Section 5.    Governing Law. This Eighth Supplemental Indenture shall be governed by, and construed in accordance with, the laws of the State of New York but without giving effect to applicable principles of conflicts of law to the extent that the application of the laws of another jurisdiction would be required thereby.

    Section 6.    Concerning the Trustee. In carrying out the Trustee’s responsibilities hereunder, the Trustee shall have all of the rights, protections, and immunities which the Trustee possesses under the Indenture. The recitals contained herein shall be taken as the statements of the Company, and the Trustee assumes no responsibility for their correctness. The Trustee makes no representations as to the validity or sufficiency of this Eighth Supplemental Indenture.

[Signature Page Follows]

- 2 -

    IN WITNESS WHEREOF, the parties have caused this Eighth Supplemental Indenture to be duly executed by their respective officers thereunto duly authorized as of the date first above written.
 

                MOLSON COORS BEVERAGE COMPANY

                By: /s/ Gavin D.K. Hattersley                
                Name:  Gavin D.K. Hattersley
                Title:  President and Chief Executive Officer

GUARANTOR:

                COORS DISTRIBUTING COMPANY LLC

                By: /s/ Gavin D.K. Hattersley                
                Name:  Gavin D.K. Hattersley
                Title:  Chief Executive Officer

 
                
[Signature Page to Eighth Supplemental Indenture]

Exhibit 4.1

                DEUTSCHE BANK TRUST COMPANY AMERICAS, as Trustee
                

                By: /s/     Irina Golovashchuk            
                Name:  Irina Golovashchuk
                Title:  Vice President

                By: /s/ Debra A. Schwalb            
                Name:  Debra A. Schwalb
                Title:  Vice President

 
 
 
 

149281228.3

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