Document:

Exhibit 10.4

 

ABL SECURITY AGREEMENT

 

This ABL SECURITY
AGREEMENT (this “Agreement”), dated as of September 23, 2020, by and among the Persons listed on the
signature pages hereof as “Grantors” and those additional entities that hereafter become parties hereto by executing
the form of Joinder attached hereto as Annex 1 (each, a “Grantor” and collectively, the “Grantors”),
and CITIZENS BANK, N.A., in its capacities as administrative agent and collateral agent for the Secured Parties (in such
capacities, together with its successors and permitted assigns in such capacities, “Administrative Agent”).

 

W I T N E S S E
T H:

 

WHEREAS, pursuant
to that certain ABL Credit Agreement, dated as of September 23, 2020 (as amended, restated, amended and restated, supplemented,
or otherwise modified from time to time, the “Credit Agreement”), by and among FRANCHISE GROUP INTERMEDIATE
HOLDCO, LLC, a Delaware limited liability company (“Lead Borrower”), as a Borrower, certain Subsidiaries
of Lead Borrower from time to time party thereto as Borrowers (collectively with Lead Borrower, the “Borrowers”),
FRANCHISE GROUP NEW HOLDCO, LLC, a Delaware limited liability company (“Global Parent”), as a Guarantor,
certain Subsidiaries of Lead Borrower from time to time party thereto as Guarantors, the lenders from time to time party thereto
(each of such lenders, together with its successors and permitted assigns, is referred to hereinafter as a “Lender”)
and the Administrative Agent, the Lenders have agreed to make certain financial accommodations available to Borrowers from time
to time pursuant to the terms and conditions thereof;

 

WHEREAS, the
Administrative Agent has agreed to act as agent for the benefit of the Secured Parties in connection with the transactions contemplated
by the Credit Agreement and this Agreement;

 

WHEREAS, in
order to induce Administrative Agent and the Lenders to enter into the Credit Agreement and the other Loan Documents and to make
Credit Extensions thereunder, (a) each Grantor (other than each Borrower with respect to its own Obligations) has agreed to
guaranty the Guaranteed Obligations, and (b) each Grantor has agreed to grant to Administrative Agent, for the benefit of
the Secured Parties, a continuing security interest in and to the Collateral in order to secure the prompt and complete payment,
observance and performance of the Secured Obligations; and

 

WHEREAS, each
Grantor (other than each Parent Company and each Borrower) is an Affiliate or a Subsidiary of Borrowers and, as such, will benefit
by virtue of the Credit Extensions made to Borrowers by Administrative Agent and the Lenders.

 

NOW, THEREFORE,
for and in consideration of the recitals made above and other good and valuable consideration, the receipt, sufficiency and adequacy
of which are hereby acknowledged, the parties hereto agree as follows:

 

1.                  
Definitions; Construction.

 

      (a)      All
initially capitalized terms used herein (including in the preamble and recitals hereof) without definition shall have the meanings
ascribed thereto in the Credit Agreement. Any terms (whether capitalized or lower case) used in this Agreement that are defined
in the Code (including, without limitation, Account Debtor, Chattel Paper, Deposit Account, Drafts, Documents, Farm Products,
Fixtures, Inventory, Instruments, Letters of Credit, Letter-of-Credit Rights, Promissory Notes, Securities Account and Supporting
Obligations) shall be construed and defined as set forth in the Code unless otherwise defined herein or in the Credit Agreement;
provided, that to the extent that the Code is used to define any term used herein and if such term is defined differently
in different Articles of the Code, the definition of such term contained in Article 9 of the Code shall govern. In addition
to those terms defined elsewhere in this Agreement, as used in this Agreement, the following terms shall have the following definitions:

 

     

     

    

(i)                       
“Administrative Agent” has the meaning specified therefor in the recitals to this Agreement.

 

(ii)                       “Agreement”
has the meaning specified therefor in the preamble to this Agreement.

 

(iii)                      “Books”
means books and records (including each Grantor’s Records indicating, summarizing, or evidencing such Grantor’s assets
(including the Collateral) or liabilities, each Grantor’s Records relating to such Grantor’s business operations or
financial condition, and each Grantor’s goods or General Intangibles related to such information).

 

(iv)                      “Borrower” and “Borrowers” have the respective meanings specified therefor in the
recitals to this Agreement.

 

(v)                       “Code” means the New York Uniform Commercial Code, as in effect from time to time; provided, that
in the event that, by reason of mandatory provisions of law, any or all of the attachment, perfection, priority, or remedies with
respect to Administrative Agent’s Lien on any Collateral is governed by the Uniform Commercial Code as enacted and in effect
in a jurisdiction other than the State of New York, the term “Code” shall mean the Uniform Commercial Code as enacted
and in effect in such other jurisdiction solely for purposes of the provisions thereof relating to such attachment, perfection,
priority, or remedies.

 

(vi)                      “Collateral” has the meaning specified therefor in Section 2 hereof.

 

(vii)                     “Commercial
Tort Claims” means commercial tort claims (as that term is defined in the Code), except that it refers only to such
claims that have been asserted in judicial proceedings or are subject to mediation, arbitration or any other proceeding and includes
those commercial tort claims listed on Schedule 1.

 

(viii)                    “Copyright
Security Agreement” means each Copyright Security Agreement executed and delivered by Grantors, or any of them, and
Administrative Agent, in substantially the form of Exhibit A.

 

(ix)                       “Copyrights” means any and all rights in any works of authorship, including (A) copyrights and moral
rights, (B) copyright registrations and recordings thereof and all applications in connection therewith including those listed
on Schedule 2, (C) income, license fees, royalties, damages, and payments now and hereafter due or payable under
and with respect thereto, including payments under all licenses entered into in connection therewith and damages and payments for
past, present, or future infringements thereof, (D) the right to sue for past, present, and future infringements thereof,
and (E) all of each Grantor’s rights corresponding thereto throughout the world.

 

(x)                        “Credit Agreement” has the meaning specified therefor in the recitals to this Agreement.

 

(xi)                       “De
Minimis Amount” means $100,000.

 

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(xii)                     “Discharge of Term Priority Obligations” has the meaning specified therefor in the Intercreditor Agreement.

 

(xiii)                    “Equipment” means equipment (as that term is defined in the Code).

 

(xiv)                    “Excluded Assets” has the meaning specified therefor in Section 2 hereof.

 

(xv)                     “General Intangibles” means general intangibles (as that term is defined in the Code), and includes payment
intangibles, software, contract rights (including, without limitation, rights under all sale, service, performance, equipment or
warranty contracts and under all franchise agreements), rights to payment (including, without limitation, rights under all sale,
service, performance, equipment or warranty contracts and under all franchise agreements), warranty claims, all know-how and warranties,
rights arising under common law, statutes, or regulations, choses or things in action, goodwill, Intellectual Property, Intellectual
Property Licenses, purchase orders, rights to payment and other rights under any royalty or licensing agreements, including Intellectual
Property Licenses and all rights to bring any causes of action for past, present and future infringement, dilution, misappropriation,
violation, misuse or breach with respect to Intellectual Property, monies due or recoverable from pension funds, pension plan refunds,
pension plan refund claims, insurance premium rebates, tax refunds, and tax refund claims, interests in a partnership or limited
liability company which do not constitute a security under Article 8 of the Code, and any other personal property other than
Commercial Tort Claims, money, Accounts, Chattel Paper, Deposit Accounts, goods, Investment Property, Negotiable Collateral, and
oil, gas, or other minerals before extraction.

 

(xvi)                    “Global
Parent” has the meaning specified therefor in the recitals to this Agreement.

 

(xvii)                   “Grantor” and “Grantors” have the respective meanings specified therefor in the preamble
to this Agreement.

 

(xviii)                  “Intellectual Property” means any and all Patents, Copyrights, Trademarks, trade secrets, know-how, inventions
(whether or not patentable), algorithms, software programs (including source code and object code), processes, product designs,
industrial designs, blueprints, drawings, data, customer lists, supplier and vendor lists, customer data and all other information
related to customers, route lists, supplier and vendor data and all other information related to suppliers and vendors, pricing
and cost information, product lines, supply chain information, URLs and domain names, all recorded data of any kind or nature (regardless
of the medium of recording), specifications, documentations, business and marketing plans and proposals, reports, catalogs, literature,
and any other forms of, and any other rights in, technology or proprietary or confidential information of any kind, including all
rights therein, goodwill and enterprise value with respect thereto, and all applications for registration or registrations thereof.

 

(xix)                     “Intellectual Property Licenses” means, with respect to any Grantor, (A) any licenses or other similar
rights provided to such Grantor in or with respect to Intellectual Property owned or controlled by any other Person, and (B) any
licenses or other similar rights provided to any other Person in or with respect to Intellectual Property owned or controlled by
such Grantor, in each case, including (w) any agreements relating to the Licensed Trademarks, (x) any software license
agreements (other than license agreements for commercially available off-the-shelf software that is generally available to the
public which have been licensed to a Grantor pursuant to end-user licenses), (y) the license agreements listed on Schedule 3
as required by Section 5(g), and (z) the right to use any of the licenses or other similar rights described in
this definition in connection with the enforcement of the Secured Parties’ rights under the Loan Documents.

 

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(xx)                      “Investment Property” means (A) any and all investment property, and (B) any and all of the
following (regardless of whether classified as investment property under the Code): all Pledged Interests, Pledged Operating Agreements,
and Pledged Partnership Agreements.

 

(xxi)                     “Joinder” means each Joinder to this Agreement executed and delivered by Administrative Agent and each
of the other parties listed on the signature pages thereto, in substantially the form of Annex 1.

 

(xxii)                    “Lead Borrower” has the meaning specified therefor in the recitals to this Agreement.

 

(xxiii)                   “Lender”
has the meaning specified therefor in the recitals to this Agreement.

 

(xxiv)                  “Material ABL IP Rights” means such rights with respect to Intellectual Property (i) that is owned
by or licensed to a Grantor and material to the conduct of any Grantor’s business or material to the marketing, sale or other
disposition of the ABL Priority Collateral, (ii) that is reasonably necessary to permit the Administrative Agent to enforce
its rights and remedies under the Loan Documents with respect to the ABL Priority Collateral, or (iii) the disposition of
which would otherwise materially adversely affect the Net Orderly Liquidation Value of the ABL Priority Collateral.

 

(xxv)                   “Negotiable
Collateral” means Letters of Credit, Letter-of-Credit Rights, Instruments, Promissory Notes, Drafts and Documents.

 

(xxvi)                   “Patents”
means patents and patent applications, including (A) the patents and patent applications listed on Schedule 4,
(B) all continuations, divisionals, continuations-in-part, re-examinations, reissues, and renewals thereof and improvements
thereon, (C) all income, royalties, damages and payments now and hereafter due or payable under and with respect thereto,
including payments under all licenses entered into in connection therewith and damages and payments for past, present, or future
infringements thereof, (D) the right to sue for past, present, and future infringements thereof, and (E) all of each
Grantor’s rights corresponding thereto throughout the world.

 

(xxvii)                  “Patent
Security Agreement” means each Patent Security Agreement executed and delivered by Grantors, or any of them, and Administrative
Agent, in substantially the form of Exhibit B.

 

(xxviii)                 “Pledged Companies” means each Person listed on Schedule 5 as a “Pledged Company”,
together with each other Person, all or a portion of whose Capital Stock are acquired or otherwise owned by a Grantor after the
Closing Date and is required to be pledged pursuant to Section 5.10 of the Credit Agreement.

 

(xxix)                   “Pledged
Interests” means all of each Grantor’s right, title and interest in and to all of the Capital Stock now owned
or hereafter acquired by such Grantor, regardless of class or designation, including in each of the Pledged Companies, and all
substitutions therefor and replacements thereof, all proceeds thereof and all rights relating thereto, also including any certificates
representing the Capital Stock, the right to receive any certificates representing any of the Capital Stock, all warrants, options,
share appreciation rights and other rights, contractual or otherwise, in respect thereof and the right to receive all dividends,
distributions of income, profits, surplus, or other compensation by way of income or liquidating distributions, in cash or in
kind, and all cash, instruments, and other property from time to time received, receivable, or otherwise distributed in respect
of or in addition to, in substitution of, on account of, or in exchange for any or all of the foregoing; provided, that
in no event shall any Excluded Assets constitute Pledged Interests.

 

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(xxx)                    “Pledged Interests Addendum” means a Pledged Interests Addendum substantially in the form of Exhibit C.

 

(xxxi)                   “Pledged
Notes” means those certain promissory notes described on Schedule 10 attached hereto, consisting of the
promissory notes required to be endorsed and delivered as of the Closing Date pursuant to Section 6(a) hereof.

 

(xxxii)                  “Pledged Operating Agreements” means all of each Grantor’s rights, powers, and remedies under the
limited liability company operating agreements of each of the Pledged Companies that are limited liability companies.

 

(xxxiii)                 “Pledged Partnership Agreements” means all of each Grantor’s rights, powers, and remedies under
the partnership agreements of each of the Pledged Companies that are partnerships.

 

(xxxiv)                 “Proceeds” has the meaning specified therefor in Section 2(r) hereof.

 

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

 

(xxxvi)                 “Real
Property” means any estates or interests in real property now owned or hereafter acquired by any Grantor and the improvements
thereto.

 

(xxxvii)                “Record”
means information that is inscribed on a tangible medium or which is stored in an electronic or other medium and is retrievable
in perceivable form.

 

(xxxviii)               “Secured Obligations” means, collectively, (A) the Obligations (including the Guaranteed Obligations),
(B) the Secured Cash Management Obligations and (C) the Secured Swap Agreement Obligations.

 

(xxxix)                  “Security Interest” has the meaning specified therefor in Section 2 hereof.

 

(xl)                       “Supporting Obligations” means supporting obligations (as such term is defined in the Code), and includes
letters of credit and guaranties issued in support of Accounts, Chattel Paper, documents, General Intangibles, instruments or Investment
Property.

 

(xli)                      “Term
Collateral Agent” has the meaning specified therefor in the Intercreditor Agreement.

 

(xlii)                     “Term Priority Collateral” has the meaning specified therefor in the Intercreditor Agreement.

 

(xliii)                    “Trademarks”
means any and all trademarks, trade names, registered trademarks, trademark applications, service marks, registered service marks
and service mark applications, including (A) the trade names, registered trademarks, trademark applications, registered service
marks and service mark applications listed on Schedule 6, (B) all renewals thereof, (C) all income, royalties,
damages and payments now and hereafter due or payable under and with respect thereto, including payments under all licenses entered
into in connection therewith and damages and payments for past or future infringements or dilutions thereof, (D) the right
to sue for past, present and future infringements and dilutions thereof, (E) the goodwill of each Grantor’s business
symbolized by the foregoing or connected therewith, and (F) all of each Grantor’s rights corresponding thereto throughout
the world.

 

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(xliv)                   “Trademark
Security Agreement” means each Trademark Security Agreement executed and delivered by Grantors, or any of them, and
Administrative Agent, in substantially the form of Exhibit D.

 

(xlv)                    “URL”
means “uniform resource locator,” an internet web address.

 

      (b)          This
Agreement shall be subject to the rules of construction set forth in Section 1.03 of the Credit Agreement, and such rules
of construction are incorporated herein by this reference, mutatis mutandis.

 

      (c)          All of the schedules and exhibits attached to this Agreement shall be deemed incorporated herein by reference.

 

2.                  
Grant of Security. Each Grantor hereby unconditionally grants, assigns, and pledges to Administrative Agent, for
the benefit of each of the Secured Parties, to secure the Secured Obligations (whether now existing or hereafter arising), a continuing
security interest (hereinafter referred to as the “Security Interest”) in all of such Grantor’s right,
title, and interest in and to the following, whether now owned or hereafter acquired or arising and wherever located (the “Collateral”):

 

      (a)          all
of such Grantor’s Accounts;

 

      (b)          all
of such Grantor’s Books;

 

      (c)          all
of such Grantor’s Chattel Paper;

 

      (d)          all
of such Grantor’s Commercial Tort Claims listed on Schedule 1;

 

      (e)          all
of such Grantor’s Deposit Accounts;

 

      (f)           all
of such Grantor’s Equipment;

 

      (g)          all
of such Grantor’s Farm Products;

 

      (h)          all
of such Grantor’s Fixtures;

 

      (i)           all
of such Grantor’s General Intangibles;

 

      (j)           all
of such Grantor’s Inventory;

 

      (k)          all
of such Grantor’s Investment Property;

 

      (l)           all
of such Grantor’s Intellectual Property and Intellectual Property Licenses;

 

      (m)         all
of such Grantor’s Negotiable Collateral (including any Pledged Notes);

 

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      (n)          all
of such Grantor’s Pledged Interests (including all of such Grantor’s Pledged Operating Agreements and Pledged Partnership
Agreements);

 

      (o)          all
of such Grantor’s Securities Accounts;

 

      (p)          all
of such Grantor’s Supporting Obligations;

 

      (q)          all
of such Grantor’s money, Cash Equivalents, or other assets of such Grantor that now or hereafter come into the possession,
custody, or control of Administrative Agent (or its agent or designee) or any other Secured Party; and

 

      (r)            all of the proceeds and products, whether tangible or intangible, of any of the foregoing, including proceeds of insurance
or Commercial Tort Claims covering or relating to any or all of the foregoing, and any and all Accounts, Books, Chattel Paper,
Deposit Accounts, Equipment, Farm Products, Fixtures, General Intangibles, Inventory, Investment Property, Intellectual Property,
Negotiable Collateral, Pledged Interests, Securities Accounts, Supporting Obligations, money, or other tangible or intangible property
resulting from the sale, lease, license, exchange, collection, or other disposition of any of the foregoing, the proceeds of any
award in condemnation with respect to any of the foregoing, any rebates or refunds, whether for taxes or otherwise, and all proceeds
of any such proceeds, or any portion thereof or interest therein, and the proceeds thereof, and all proceeds of any loss of, damage
to, or destruction of the above, whether insured or not insured, and, to the extent not otherwise included, any indemnity, warranty,
or guaranty payable by reason of loss or damage to, or otherwise with respect to any of the foregoing (the “Proceeds”).
Without limiting the generality of the foregoing, the term “Proceeds” includes whatever is receivable or received when
Investment Property or proceeds are sold, exchanged, collected, or otherwise disposed of, whether such disposition is voluntary
or involuntary, and includes proceeds of any indemnity or guaranty payable to any Grantor or any Secured Party from time to time
with respect to any of the Investment Property.

 

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Notwithstanding anything
contained in this Agreement to the contrary, the term “Collateral” shall not include the following (collectively, the
“Excluded Assets”): (i) motor vehicles and other assets subject to certificates of title (except to the
extent a security interest therein can be perfected by the filing of Uniform Commercial Code financing statements); (ii) any
rights or interest in any Real Estate Asset that is not a Material Real Estate Asset; (iii) any United States intent-to-use
trademark applications to the extent that, and solely during the period in which, the grant of a security interest therein would
impair the validity or enforceability of such intent-to-use trademark or service mark applications under applicable federal law;
provided, that upon submission and acceptance by the PTO of an amendment to allege use pursuant to 15 U.S.C. Section 1060(a)
(or any successor provision), such intent-to-use trademark application shall be considered Collateral; (iv) Capital Stock
in any Person, other than any wholly-owned Subsidiary of a Grantor, to the extent a security interest therein is not permitted
by the terms of such Person’s organizational documents or joint venture documents (in each case, as in effect on the date
such Capital Stock was acquired), solely to the extent that (1) such joint venture or other investment is permitted under
Section 6.07 of the Credit Agreement and (2) such restriction was not created or entered into in contemplation of the
acquisition of such Capital Stock; provided that the exclusion in this clause (iv) shall in no way be construed to
apply to the extent that any described prohibition is ineffective under Sections 9-406, 9-407, 9-408, or 9-409 of the Code
(or any successor provision or provisions) or other applicable law (including the Bankruptcy Code) or applicable principles of
equity; provided further, that immediately upon the ineffectiveness (and for so long as it remains ineffective), lapse or
termination of any such restriction, the Collateral shall include, and such Grantor shall be deemed to have granted a security
interest in, all such Capital Stock as if such restriction had never been in effect (it being understood that no Capital Stock
constitutes an Excluded Asset under this clause (iv) as of the Closing Date); (v) any lease, license or other agreement
to which a Grantor is a party, or any property subject to a purchase money security interest, Capital Lease or similar arrangement,
in each case, to the extent that a grant of a security interest therein in favor of Administrative Agent would constitute a default
or forfeiture under, or violate or invalidate, such lease, license or other agreement, or such purchase money security interest,
Capital Lease or similar arrangement, or create a right of termination in favor of any other party thereto (other than a Grantor
or a Subsidiary of a Grantor), solely to the extent that (1) such lease, license or other agreement, or such purchase money
security interest, Capital Lease or similar arrangement is permitted under the Loan Documents and (2) such default, forfeiture,
prohibition, invalidation or right of termination (as applicable) was not created in contemplation of this Agreement or any other
Loan Document; provided that the exclusion in this clause (v) shall in no way be construed to apply to the extent that
any described default, forfeiture, restriction, prohibition, invalidation or right of termination (as applicable) is ineffective
under Sections 9-406, 9-407, 9-408, or 9-409 of the Code (or any successor provision or provisions) or other applicable law
(including the Bankruptcy Code) or applicable principles of equity; provided further, that immediately upon the ineffectiveness
(and for so long as it remains ineffective), lapse or termination of any such default, forfeiture, prohibition, restriction, invalidation
or right of termination, the Collateral shall include, and such Grantor shall be deemed to have granted a security interest in,
all such lease, license or other agreement, or such property subject to purchase money security interest, Capital Lease or similar
arrangement as if such default, forfeiture, prohibition, restriction, invalidation or right of termination had never been in effect;
(vi) any property or assets with respect to which the granting of security interests in such assets would (1) be prohibited
by applicable law, rule or regulation, (2) be prohibited under the terms of any contractual obligation binding on the applicable
Grantor at the time the applicable property or asset was acquired (so long as such prohibition was not entered into in contemplation
of such acquisition), or (3) require the consent, approval, license or authorization of any Person (including any Governmental
Authority) (other than a Grantor or a Subsidiary of a Grantor) (so long as such consent, approval, license or authorization right
(as applicable) was not created in contemplation of this Agreement or any other Loan Document); provided that the exclusion
in this clause (vi) shall in no way be construed to apply to the extent that any described restriction, prohibition, or requirement
of consent, approval, license or authorization is ineffective under Sections 9-406, 9-407, 9-408, or 9-409 of the Code (or
any successor provision or provisions) or other applicable law (including the Bankruptcy Code) or applicable principles of equity;
provided further, that immediately upon the ineffectiveness (and for so long as it remains ineffective), lapse or termination
of any such law, rule, regulation, term, prohibition, condition or requirement, the Collateral shall include, and such Grantor
shall be deemed to have granted a security interest in, all such property or assets as if such law, rule, regulation, term, prohibition,
condition or requirement had never been in effect; (vii) assets located outside the United States to the extent a security
interest in such assets could reasonably be expected to result in material adverse tax consequences to the Grantors, as determined
in good faith by the Lead Borrower in consultation with the Administrative Agent; (viii) the Excluded Accounts described in
clauses (1), (4) and (5) of the definition thereof in the Credit Agreement; (ix) any Margin Stock (including any Margin
Stock held through a Securities Account); (x) Capital Stock of any Excluded Entities to the extent a pledge thereof is prohibited
by the terms of such Person’s third party Indebtedness (so long as such prohibition was not created in contemplation of this
Agreement or any other Loan Document); provided further, that immediately upon any Subsidiary ceasing to be an Excluded
Entity, or upon the ineffectiveness (and for so long as it remains ineffective), lapse or termination of any such prohibition,
the Collateral shall include, and such Grantor shall be deemed to have granted a security interest in, all Capital Stock of such
Subsidiary as if such Subsidiary had never been an Excluded Entity or as if such prohibition had never been in effect; (xi) those
assets as to which Lead Borrower and Administrative Agent mutually agree in writing that the cost and/or burden of obtaining a
grant of a Lien on such assets to secure the Secured Obligations outweighs the benefit to the Secured Parties; (xii) (I) Letter
of Credit Rights, which individually have a value or face amount of less than or equal to the De Minimis Amount (except to the
extent a security interest therein can be perfected by the filing of Uniform Commercial Code financing statements) and (II) Letter
of Credit Rights which individually have a value or face amount of greater than the De Minimis Amount, which in the aggregate at
any one time for all such Letter of Credit Rights, have an aggregate value or face amount of $500,000 or less (except to the extent
a security interest therein can be perfected by the filing of Uniform Commercial Code financing statements); and (xiii) (I) any
commercial tort claims, which individually have an aggregate amount claimed that is less than or equal to the De Minimis Amount
and (II) commercial tort claims which individually have an aggregate amount claimed that is greater than the De Minimis Amount,
which in the aggregate at any one time for all such commercial tort claims, have an aggregate amount claimed that is not in excess
of $500,000; provided, that (A) Excluded Assets shall not include, and the foregoing exclusions shall in no way be
construed to limit, impair, or otherwise affect any of Administrative Agent’s continuing security interests in and liens
upon any rights or interests of any Grantor in or to, (1) monies due or to become due, or any income stream, receivables,
payment intangibles or proceeds arising, under or in connection with any of the property or assets described in the foregoing clauses (i)
through (xiii), or (2) any proceeds from the sale, license, lease, or other disposition of any such property or assets, in
each case, other than to the extent such monies, income stream, receivables, payment intangibles or proceeds otherwise qualify
as Excluded Assets, (B) the Proceeds of any Excluded Assets shall not constitute Excluded Assets (unless such Proceeds otherwise
qualify as Excluded Assets), and (C) the Grantors shall from time to time at the reasonable request of Administrative Agent,
give written notice to Administrative Agent identifying in reasonable detail the Excluded Assets and shall provide to Administrative
Agent such other information regarding the Excluded Assets as Administrative Agent may reasonably request.

 

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3.                  
Security for Secured Obligations. The Security Interest created hereby secures the payment and performance of the
Secured Obligations, whether now existing or arising hereafter. Without limiting the generality of the foregoing, this Agreement
secures the payment of all amounts which constitute part of the Secured Obligations and would be owed by Grantors, or any of them,
to the Secured Parties, or any of them, but for the fact that they are unenforceable or not allowable (in whole or in part) as
a claim in an Insolvency Proceeding involving any Grantor due to the existence of such Insolvency Proceeding. Further, the Security
Interest created hereby encumbers each Grantor’s right, title, and interest in all Collateral, whether now owned by such
Grantor or hereafter acquired, obtained, developed, or created by such Grantor and wherever located.

 

4.                  
Grantors Remain Liable. Anything herein to the contrary notwithstanding, (a) each of the Grantors shall remain
liable under the contracts and agreements included in the Collateral, including the Pledged Operating Agreements and the Pledged
Partnership Agreements, to perform all of the duties and obligations thereunder to the same extent as if this Agreement had not
been executed, (b) the exercise by Administrative Agent or any other Secured Party of any of the rights hereunder shall not
release any Grantor from any of its duties or obligations under such contracts and agreements included in the Collateral, and (c) none
of the Secured Parties shall have any obligation or liability under such contracts and agreements included in the Collateral by
reason of this Agreement, nor shall any of the Secured Parties be obligated to perform any of the obligations or duties of any
Grantors thereunder or to take any action to collect or enforce any claim for payment assigned hereunder. Until an Event of Default
shall occur and be continuing, except as otherwise provided in this Agreement, the Credit Agreement, or any other Loan Document,
Grantors shall have the right to possession and enjoyment of the Collateral for the purpose of conducting their respective businesses,
subject to and upon the terms hereof and of the Credit Agreement and the other Loan Documents. Without limiting the generality
of the foregoing, it is the intention of the parties hereto that record and beneficial ownership of the Pledged Interests, including
all voting, consensual, dividend, and distribution rights, shall remain in the applicable Grantor until (i) the occurrence
and continuance of an Event of Default, and (ii) Administrative Agent has notified the applicable Grantor of Administrative
Agent’s election to exercise such rights with respect to the Pledged Interests pursuant to Section 15.

 

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5.                  
Representations and Warranties. In order to induce Administrative Agent to enter into this Agreement for the benefit
of the Secured Parties, each Grantor makes the following representations and warranties to Administrative Agent and the other Secured
Parties which shall be true, correct, and complete, in all material respects (except that such materiality qualifier shall not
be applicable to any representations and warranties that already are qualified or modified by materiality in the text thereof),
as of the Closing Date, and shall be true, correct, and complete, in all material respects (except that such materiality qualifier
shall not be applicable to any representations and warranties that already are qualified or modified by materiality in the text
thereof), as of the date of the making of each Credit Extension made thereafter, as though made on and as of the date of such Credit
Extension (except to the extent that such representations and warranties relate solely to an earlier date, in which case such representations
and warranties shall be true and correct in all material respects (except that such materiality qualifier shall not be applicable
to any representations and warranties that already are qualified or modified by materiality in the text thereof) as of such earlier
date) and such representations and warranties shall survive the execution and delivery of this Agreement:

 

      (a)          The
name (within the meaning of Section 9-503 of the Code) and jurisdiction of organization of each Grantor is set forth on Schedule 7
(as such Schedule may be updated from time to time to reflect changes permitted under the Loan Documents).

 

      (b)          The
chief executive office of each Grantor is located at the address indicated on Schedule 7 (as such Schedule may be
updated from time to time to reflect changes permitted under the Loan Documents).

 

      (c)          Each Grantor’s tax identification numbers are identified on Schedule 7 (as such Schedule may be updated
from time to time to reflect changes permitted under the Loan Documents).

 

      (d)          As
of the Closing Date, no Grantor holds any Commercial Tort Claim with an amount claimed that exceeds $250,000 individually for
such Commercial Tort Claims, except as set forth on Schedule 1.

 

      (e)          [Reserved].

 

      (f)           Schedule 8 sets forth all Real Property that is a Material Real Estate Asset owned by any of the Grantors as
of the Closing Date.

 

      (g)          As
of the Closing Date: (i) Schedule 2 provides a complete and correct list of all registered Copyrights and applications
for registration of Copyrights owned by any Grantor, (ii) Schedule 3 provides a complete and correct list of
all exclusive Intellectual Property Licenses with respect to registered Intellectual Property entered into by any Grantor pursuant
to which (A) any Grantor has provided any license or other rights in registered Intellectual Property owned or controlled
by such Grantor to any other Person, or (B) any Person has granted to any Grantor any license or other rights in registered
Intellectual Property owned or controlled by such Person that is material to the business of such Grantor, including any such
Intellectual Property that is incorporated in any Inventory, software, or other product marketed, sold, licensed, or distributed
by such Grantor (collectively, “Exclusive IP Licenses”), (iii) Schedule 4 provides a complete
and correct list of all Patents owned by any Grantor and all applications for Patents owned by any Grantor, and (iv) Schedule 6
provides a complete and correct list of all registered Trademarks owned by any Grantor, and all applications for registration
of Trademarks owned by any Grantor.

 

    	 	10	 

     

    

      (h)          (i)
                  (A) Each Grantor owns, or holds licenses in, or otherwise has the right to use all Material Intellectual Property that
is used in the conduct of its business as currently conducted, and (B) all employees and contractors of each Grantor who
were involved in the creation or development of any Material Intellectual Property for such Grantor that is used in the
conduct of the business of such Grantor as currently conducted have signed agreements containing assignment of Intellectual
Property rights to such Grantor and obligations of confidentiality;

 

 (ii)                  to
each Grantor’s knowledge, no Person has infringed or misappropriated or is currently infringing or misappropriating any
Intellectual Property rights owned by such Grantor, in each case, that either individually or in the aggregate could reasonably
be expected to result in a Material Adverse Effect;

 

 (iii)                 to
each Grantor’s knowledge, all registered and issued Material Intellectual Property that is owned by such Grantor is valid,
subsisting and enforceable and in compliance with all legal requirements, filings, and payments and other actions that are required
to maintain such Intellectual Property in full force and effect; and

 

 (iv)                 each
Grantor has taken reasonable steps to maintain the confidentiality of and otherwise protect and enforce its rights in all trade
secrets constituting Material Intellectual Property owned by such Grantor.

 

      (i)           This
Agreement creates a valid security interest in the Collateral of each Grantor, to the extent a security interest therein can be
created under the Code, securing the payment of the Secured Obligations. Except to the extent a security interest in the Collateral
cannot be perfected by the filing of a financing statement under the Code, all filings to perfect such security interest have
been duly taken or will have been taken upon the filing of financing statements listing each applicable Grantor, as a debtor,
and Administrative Agent, as secured party, in the jurisdictions listed next to such Grantor’s name on Schedule 9.
Upon the making of such filings, Administrative Agent shall have a First Priority perfected security interest in the Collateral
of each Grantor to the extent such security interest can be perfected by the filing of a financing statement under the Code. Upon
filing of any Copyright Security Agreement with the United States Copyright Office, filing of any Patent Security Agreement and
any Trademark Security Agreement with the PTO, and the filing of appropriate financing statements in the jurisdictions listed
on Schedule 9, all action necessary to perfect and to the extent required by this Agreement and the other Loan Documents,
protect the Security Interest in and on each Grantor’s United States issued Patents, registered Trademarks, or registered
Copyrights has been taken and such perfected Security Interest is enforceable as such as against any and all creditors of and
purchasers from any Grantor of such Intellectual Property. All action by any Grantor required by this Agreement and the other
Loan Documents, to protect and perfect such security interest on each item of Collateral has been duly taken.

 

      (j)           (i) Except for the Security Interest created hereby, each Grantor is and will at all times be the sole holder of record
and the legal and beneficial owner, free and clear of all Liens other than Permitted Liens, of the Pledged Interests indicated
on Schedule 5 as being owned by such Grantor and, when acquired by such Grantor, any Pledged Interests acquired after
the Closing Date, (ii) all of the Pledged Interests are duly authorized, validly issued, fully paid and non-assessable and
the Pledged Interests constitute or will constitute the percentage of the issued and outstanding Capital Stock of the Pledged Companies
of such Grantor identified on Schedule 5 as supplemented or modified by any Pledged Interests Addendum or any Joinder
to this Agreement, (iii) such Grantor has the right and requisite authority to pledge, the Investment Property pledged by
such Grantor to Administrative Agent as provided herein, (iv) all actions necessary to perfect and establish a First Priority
Lien, or to the extent otherwise required by this Agreement and the other Loan Documents, to otherwise protect, Administrative
Agent’s Liens in the Investment Property, and the proceeds thereof, have been duly taken, upon (A) the execution and
delivery of this Agreement, (B) the taking of possession by Administrative Agent (or its agent or designee) of any certificates
representing the Pledged Interests, to the extent such Pledged Interests are represented by certificates, together with undated
powers (or other documents of transfer acceptable to Administrative Agent) endorsed in blank by the applicable Grantor, (C) the
filing of financing statements in the applicable jurisdiction set forth on Schedule 9 for such Grantor with respect
to the Pledged Interests of such Grantor that are not represented by certificates, and (D) with respect to any Securities
Accounts (other than Excluded Accounts), the delivery of Control Agreements with respect thereto, and (v) each Grantor has
delivered to and deposited with Administrative Agent all certificates representing the Pledged Interests owned by such Grantor
to the extent such Pledged Interests are represented by certificates, and undated powers (or other documents of transfer acceptable
to Administrative Agent) endorsed in blank with respect to such certificates. None of the Pledged Interests owned or held by such
Grantor has been issued or transferred in violation of any securities registration, securities disclosure, or similar laws of any
jurisdiction to which such issuance or transfer may be subject.

 

    	 	11	 

     

    

      (k)          No consent, approval, authorization, or other order or other action by, and no notice to or filing with, any Governmental
Authority or any other Person is required (i) for the grant of a Security Interest by such Grantor in and to the Collateral
pursuant to this Agreement or for the execution, delivery, or performance of this Agreement by such Grantor or (ii) for the
exercise by Administrative Agent of the voting or other rights provided for in this Agreement with respect to the Investment Property
or the remedies in respect of the Collateral pursuant to this Agreement, except (A) as may be required in connection with
such disposition of Investment Property by laws affecting the offering and sale of securities generally, (B) for consents,
approvals, authorizations, or other orders or actions that have already been obtained or given (as applicable) and that are still
in force, and (C) the filing of financing statements and other filings necessary to perfect the Security Interests granted
hereby. No Intellectual Property License of any Grantor relating to any Licensed Trademarks constituting Material ABL IP Rights
requires any consent of any other Person that has not been obtained in order for Administrative Agent to enforce any of its remedies
under the Loan Documents with respect to ABL Priority Collateral.

 

      (l)           As
to all limited liability company or partnership interests, issued under any Pledged Operating Agreement or Pledged Partnership
Agreement, each Grantor hereby represents and warrants that the Pledged Interests issued pursuant to such agreement (i) are
not dealt in or traded on securities exchanges or in securities markets, (ii) do not constitute investment company securities,
and (iii) are not held by such Grantor in a Securities Account. In addition, none of the Pledged Operating Agreements, the
Pledged Partnership Agreements, or any other agreements governing any of the Pledged Interests issued under any Pledged Operating
Agreement or Pledged Partnership Agreement, provides that such Pledged Interests are securities governed by Article 8 of
the Uniform Commercial Code as in effect in any relevant jurisdiction.

 

      (m)         As
to any Credit Card Receivables, (i) no amount payable to any Grantor under or in connection with any Credit Card Receivable
is evidenced by any Instrument or Chattel Paper which has not been delivered to Administrative Agent to the extent required pursuant
to this Agreement, (ii) none of the obligors on any Credit Card Receivable is a Governmental Authority, and (iii) except
as would not be reasonably expected to result in a Material Adverse Effect, there are no facts, events or occurrences which would
impair the validity of any Credit Card Receivable, or tend to reduce the amount payable thereunder from the face amount of the
claim or invoice or statements delivered to Administrative Agent with respect thereto (other than arising in the ordinary course
of business).

 

    	 	12	 

     

    

6.                  
Covenants. Each Grantor, jointly and severally, covenants and agrees with Administrative Agent that from and after
the date of this Agreement and until the date of termination of this Agreement in accordance with Section 22:

 

      (a)          Possession of Collateral. In the event that any Collateral, including Proceeds, is evidenced by or consists of Drafts,
Documents, Certificated Securities, Promissory Notes, or tangible Chattel Paper having at any one time an aggregate value of $1,500,000
or more for all such Drafts, Documents, Certificated Securities, Promissory Notes, or tangible Chattel Paper, the Grantors shall
promptly (and in any event within thirty (30) days (or such longer period as agreed to in writing by Administrative Agent) after
acquisition thereof), notify Administrative Agent thereof, and if and to the extent that perfection or priority of Administrative
Agent’s Security Interest is dependent on or enhanced by possession, the applicable Grantor, promptly (and in any event within
five (5) Business Days (or such longer period as agreed to in writing by Administrative Agent)) after request by Administrative
Agent, shall execute such other documents and instruments as shall be requested by Administrative Agent or, if applicable, endorse
and deliver physical possession of such Drafts, Documents, Certificated Securities, Promissory Notes, or tangible Chattel Paper
to Administrative Agent, together with such undated powers (or other relevant document of transfer acceptable to Administrative
Agent) endorsed in blank as shall be requested by Administrative Agent, and shall do such other acts or things, reasonably deemed
necessary or desirable by Administrative Agent to protect Administrative Agent’s Security Interest therein, to the extent
otherwise required by this Agreement and the other Loan Documents; provided that (x) no Grantor shall be required to
notify the Administrative Agent or endorse and/or deliver physical possession of any Draft, Document, Certificated Security, Promissory
Note or tangible Chattel Paper to the extent the individual value thereof is less than $250,000 and (y) the Administrative
Agent, in its sole discretion, may agree that delivery of physical possession of any such Drafts, Documents, Certificated Securities,
Promissory Notes, or tangible Chattel Paper (and related documents and instruments and endorsements, if applicable) shall not be
required.

 

      (b)          Chattel
Paper.

 

  (i)                    Promptly
(and in any event within five (5) Business Days (or such longer period as agreed to in writing by Administrative Agent)) after
request by Administrative Agent, each Grantor shall take all steps reasonably necessary to grant Administrative Agent control
of all electronic Chattel Paper, which individually has a value or face amount greater than the De Minimis Amount, in accordance
with the Code and all “transferable records” as that term is defined in Section 16 of the Uniform Electronic
Transaction Act and Section 201 of the federal Electronic Signatures in Global and National Commerce Act as in effect in
any relevant jurisdiction, but only to the extent that the aggregate value or face amount of all such electronic Chattel Paper
equals or exceeds at any one time, $500,000; and

 

  (ii)                   if any Grantor retains possession of any tangible Chattel Paper or Instruments (which retention of possession shall be subject
to the extent permitted hereby and by the Credit Agreement), promptly upon the request of Administrative Agent, such tangible Chattel
Paper and Instruments shall be marked with the following legend (or a similar legend as agreed to by Administrative Agent): “This
writing and the obligations evidenced or secured hereby are subject to the Security Interest of Citizens Bank, N.A., as Administrative
Agent for the benefit of the Secured Parties”.

 

      (c)          [Reserved].

 

      (d)          Letter-of-Credit
Rights. If the Grantors (or any of them) are or become the beneficiary of any letters of credit which individually have undrawn
amounts thereon greater than the De Minimis Amount, then the applicable Grantor or Grantors shall promptly (and in any event within
thirty (30) days (or such longer period as agreed to in writing by Administrative Agent) after becoming a beneficiary), notify
Administrative Agent thereof and, promptly (and in any event within thirty (30) days (or such longer period as agreed to in writing
by Administrative Agent)) after request by Administrative Agent, enter into a tri-party agreement with Administrative Agent and
the issuer or confirming bank with respect to such Letter-of-Credit Rights assigning such Letter-of-Credit Rights to Administrative
Agent and directing all payments thereunder to the Deposit Account specified by Administrative Agent, all in form and substance
reasonably satisfactory to Administrative Agent, but only to the extent that the aggregate value or face amount of all such letters
of credit equals or exceeds at any one time, $500,000.

 

    	 	13	 

     

    

      (e)          Commercial Tort Claims. If the Grantors (or any of them) obtain any Commercial Tort Claims which individually have
a value, or involve an asserted claim, in excess of the De Minimis Amount, then the applicable Grantor or Grantors shall promptly
(and in any event within thirty (30) days (or such longer period as agreed to in writing by Administrative Agent) of obtaining
such Commercial Tort Claims), notify Administrative Agent upon incurring or otherwise obtaining such Commercial Tort Claims and,
promptly (and in any event within five (5) Business Days (or such longer period as agreed to in writing by Administrative Agent))
after request by Administrative Agent, amend Schedule 1 to describe such Commercial Tort Claims in a manner that reasonably
identifies such Commercial Tort Claims and which is otherwise reasonably satisfactory to Administrative Agent, and hereby authorizes
the filing of additional financing statements or amendments to existing financing statements describing such Commercial Tort Claims,
and agrees to do such other acts or things reasonably deemed necessary or desirable by Administrative Agent to give Administrative
Agent a First Priority perfected security interest in any such Commercial Tort Claims, but only to the extent that the aggregate
value, or asserted claims, of all such Commercial Tort Claims exceeds at any one time, $500,000.

 

      (f)           Government
Contracts. Other than Accounts and Chattel Paper the aggregate value of which does not at any one time exceed $2,500,000 in
the aggregate for all such Accounts and Chattel Paper, if any Account or Chattel Paper arises out of a contract or contracts with
the United States of America or any department, agency, or instrumentality thereof, Grantors shall promptly (and in any event
within thirty (30) days (or such longer period as agreed to in writing by Administrative Agent) of the creation thereof) notify
Administrative Agent thereof and, promptly (and in any event within sixty (60) days (or such longer period as agreed to in writing
by Administrative Agent)) after request by Administrative Agent, execute any instruments or take any steps reasonably required
by Administrative Agent in order that all moneys due or to become due under such contract or contracts shall be assigned to Administrative
Agent, for the benefit of the Secured Parties, and shall provide written notice thereof under the Assignment of Claims Act or
other applicable law.

 

      (g)          Intellectual Property.

 

 (i)                   
Upon the request of Administrative Agent, in order to facilitate filings with the PTO and the United States Copyright Office,
each Grantor shall execute and deliver to Administrative Agent one or more Copyright Security Agreements, Trademark Security Agreements,
or Patent Security Agreements to further evidence Administrative Agent’s Lien on such Grantor’s United States issued
and registered Patents, Trademarks, or Copyrights;

 

    	 	14	 

     

    

 (ii)                  
Each Grantor shall take such steps, in such Grantor’s reasonable business judgment, to protect, enforce and
defend, at such Grantor’s expense, such Grantor’s Material Intellectual Property, including, as applicable, (A) to
enforce and defend, including, if determined to be appropriate in such Grantor’s reasonable business judgment, promptly suing
for any infringement, misappropriation, or dilution that could reasonably be expected to materially impact the value of any of
such Grantor’s Intellectual Property and to recover any and all damages for such infringement, misappropriation, or dilution,
and filing for opposition, interference, and cancellation against conflicting Intellectual Property rights of any Person, (B) to
reasonably prosecute any trademark application or service mark application that is part of the Trademarks pending as of the Closing
Date or hereafter until the termination of this Agreement, (C) to reasonably prosecute any patent application that is part
of the Patents pending as of the Closing Date or hereafter until the termination of this Agreement, (D) to take commercially
reasonable actions to preserve and maintain all of such Grantor’s Trademarks, Patents, Copyrights, Intellectual Property
Licenses, and its rights therein, including paying maintenance fees with respect thereto and filing of applications for renewal,
affidavits of use, and affidavits of noncontestability, and (E) to require all employees, consultants, and contractors of
each Grantor who were involved in the creation or development of such Intellectual Property to sign agreements containing assignment
of Intellectual Property rights and obligations of confidentiality, except, in each case, as could not reasonably be expected to
be material and adverse to the business of the Grantors as a whole. Except, in each case, as could not reasonably be expected to
be material and adverse to the business of the Grantors as a whole, each Grantor further agrees not to abandon any Material Intellectual
Property or Intellectual Property License that is necessary in or material to the conduct of such Grantor’s business. Each
Grantor hereby agrees to take the steps described in this Section 6(g)(ii) with respect to all new or acquired Material
Intellectual Property to which it or any of its Subsidiaries is now or later becomes entitled (except
for non-exclusive licenses of Patents, Trademarks, and other Intellectual Property rights granted by any Grantor in the ordinary
course of business and not interfering in any respect with the ordinary conduct of the business of such Grantor);

 

 (iii)                   Grantors
acknowledge and agree that the Secured Parties shall have no duties with respect to any Intellectual Property or Intellectual
Property Licenses of any Grantor. Without limiting the generality of this Section 6(g)(iii), Grantors acknowledge
and agree that no Secured Party shall be under any obligation to take any steps necessary to preserve rights in the Collateral
consisting of Intellectual Property or Intellectual Property Licenses against any other Person, any Secured Party may do so at
its option from and after the occurrence and during the continuance of an Event of Default, and all expenses incurred in connection
therewith (including reasonable fees and expenses of attorneys and other professionals) shall be for the sole account of Borrowers
and shall be chargeable to the Loan Account;

 

 (iv)                  On
each date on which a Compliance Certificate is required to be delivered pursuant to Section 5.01(d) of the Credit Agreement
(or, if an Event of Default has occurred and is continuing, more frequently if requested by Administrative Agent), each Grantor
shall provide Administrative Agent with a written report of all new Patents, Trademarks or Copyrights that are registered or the
subject of pending applications for registrations, and all Exclusive IP Licenses that are material to the conduct of such Grantor’s
business, in each case, which were acquired, registered, or for which applications for registration were filed by any Grantor
during the prior period and any statement of use or amendment to allege use with respect to intent-to-use trademark applications.
In the case of such registrations or applications therefor, which were acquired by any Grantor, each such Grantor shall file the
necessary documents with the United States Copyright Office, the PTO or the successor offices of the United States Copyright Office
or the PTO, as appropriate, identifying the applicable Grantor as the owner (or as a co-owner thereof, if such is the case) of
such Intellectual Property. In each of the foregoing cases, the applicable Grantor shall promptly cause to be prepared, executed,
and delivered to Administrative Agent supplemental schedules to the applicable Patent Security Agreement, Trademark Security Agreement
and Copyright Security Agreement to identify such Patent, Trademark and Copyright registrations and applications therefor (with
the exception of Trademark applications filed on an intent-to-use basis for which no statement of use or amendment to allege use
has been filed) and Exclusive IP Licenses (limited to Exclusive IP Licenses relating to registered U.S. Copyrights and applications
therefor) as being subject to the security interests created thereunder;

 

    	 	15	 

     

    

 (v)                   Anything
to the contrary in this Agreement notwithstanding, in no event shall any Grantor, either itself or through any agent, employee,
licensee, or designee, file an application for the registration of any Copyright with the United States Copyright Office or any
similar office or agency in another country without giving Administrative Agent written notice thereof at least ten (10) days
(or such shorter period as agreed to in writing by Administrative Agent) prior to such filing and complying with Section 6(g)(i),
and if available, each such application for registration shall be filed on an “expedited basis”. Upon receipt from
the United States Copyright Office of notice of registration of any Copyright, each Grantor shall promptly (but in no event later
than thirty (30) days (or such longer period as agreed to in writing by Administrative Agent) following such receipt) notify (but
without duplication of any notice required by Section 6(g)(iv)) Administrative Agent of such registration by delivering,
or causing to be delivered, to Administrative Agent, documentation sufficient for Administrative Agent to perfect Administrative
Agent’s Liens on such Copyright. If any Grantor acquires from any Person any Copyright registered with the United States
Copyright Office or an application to register any Copyright with the United States Copyright Office, such Grantor shall promptly
(but in no event later than thirty (30) days (or such longer period as agreed to in writing by Administrative Agent) following
such acquisition) notify Administrative Agent of such acquisition and deliver, or cause to be delivered, to Administrative Agent,
documentation sufficient for Administrative Agent to perfect Administrative Agent’s Liens on such Copyright. In the case
of such Copyright registrations or applications therefor which were acquired by any Grantor, each such Grantor shall promptly
(but in no event later than thirty (30) days (or such longer period as agreed to in writing by Administrative Agent) following
such acquisition) file the necessary documents with the United States Copyright Office identifying the applicable Grantor as the
owner (or as a co-owner thereof, if such is the case) of such Copyrights;

 

 (vi)                  Except
as could not reasonably be expected to be material and adverse to the business of the Grantors as a whole, each Grantor shall
take reasonable steps to maintain the confidentiality of, and otherwise protect and enforce its rights in its Material Intellectual
Property, including, as applicable (A) protecting the secrecy and confidentiality of its confidential information and trade
secrets by having and enforcing a reasonable policy requiring all current employees, consultants, licensees, vendors and contractors
who would reasonably be expected to have access to such information to execute appropriate confidentiality agreements, (B) taking
actions that would reasonably be expected to ensure that no trade secret falls into the public domain, and (C) protecting
the secrecy and confidentiality of the source code of all proprietary software programs and applications that are not publicly
available and of which it is the owner or licensee by having and enforcing a reasonable policy requiring any licensees (or sublicensees)
of such source code to enter into license agreements with commercially reasonable use and non-disclosure restrictions; and

 

 (vii)                 No Grantor shall enter into any Intellectual Property License that the Grantor reasonably believes would constitute or contain
Material ABL IP Rights unless such Grantor has used commercially reasonable efforts to permit the assignment of such Intellectual
Property License (and all rights of Grantor thereunder) to Administrative Agent (and any transferees of Administrative Agent);
provided (A) that the Grantor shall use commercially reasonable efforts to ensure that no such Intellectual Property
License shall restrict or prohibit Administrative Agent from enforcing any of its remedies under the Loan Documents with respect
to any of the Collateral and (B) in all events, all Material ABL IP Rights shall be subject to the Administrative Agent’s
right to use such Material ABL IP Rights pursuant to the license granted in Section 16(b) hereof.

 

      (h)          Investment
Property.

 

 (i)                     If any Grantor shall acquire, obtain, receive or become entitled to receive any Pledged Interests after the Closing
Date, it shall promptly (and in any event within thirty (30) days (or such longer period as agreed to in writing by Administrative
Agent) of acquiring or obtaining such Collateral) deliver to Administrative Agent a duly executed Pledged Interests Addendum identifying
such Pledged Interests;

 

    	 	16	 

     

    

 (ii)                    Upon
the occurrence and during the continuance of an Event of Default, following the request of Administrative Agent, all sums of money
and property paid or distributed in respect of the Pledged Interests that are received by any Grantor shall be held by the Grantors
in trust for the benefit of Administrative Agent segregated from such Grantor’s other property, and such Grantor shall deliver
it forthwith to Administrative Agent in the exact form received;

 

 (iii)                   Each
Grantor shall promptly deliver to Administrative Agent a copy of each material notice or other material communication received
by it in respect of any Pledged Interests;

 

 (iv)                   No
Grantor shall make or consent to any amendment or other modification or waiver with respect to any Pledged Interests, Pledged
Operating Agreement, or Pledged Partnership Agreement, or enter into any agreement or permit to exist any restriction with respect
to any Pledged Interests, in each case, if the same is prohibited pursuant to the Loan Documents;

 

 (v)                  
Each Grantor agrees that it will cooperate with Administrative Agent in obtaining all necessary approvals and making all
necessary filings under federal, state, local, or foreign law to effect the perfection of the Security Interest on the Investment
Property or to effect any sale or transfer thereof, in each case subject to Section 5.10 of the Credit Agreement with respect
to perfection actions (A) in any jurisdiction outside of the United States or any state thereof and (B) under any security
agreement or pledge governed by the laws of any jurisdiction other than the United States or any state thereof;

 

 (vi)                  As
to all limited liability company or partnership interests owned by such Grantor and issued under any Pledged Operating Agreement
or Pledged Partnership Agreement, each Grantor hereby covenants that the Pledged Interests issued pursuant to such agreement (A) are
not and shall not be dealt in or traded on securities exchanges or in securities markets, (B) do not and will not constitute
investment company securities, and (C) are not and will not be held by such Grantor in a securities account. In addition,
none of the Pledged Operating Agreements, the Pledged Partnership Agreements, or any other agreements governing any of the Pledged
Interests issued under any Pledged Operating Agreement or Pledged Partnership Agreement, provides or shall provide that such Pledged
Interests are securities governed by Article 8 of the Uniform Commercial Code as in effect in any relevant jurisdiction;
and

 

 (vii)                 With
regard to any Pledged Interests that are not certificated, to the extent any Grantor is an issuer of such non-certificated Pledged
Interests, such Grantor in its capacity as an issuer (i) agrees promptly to note on its books the security interests granted
to Administrative Agent and confirmed under this Agreement, (ii) agrees that after the occurrence and during the continuation
of an Event of Default, it will comply with instructions of Administrative Agent or its nominee with respect to the applicable
Pledged Interests without further consent by the applicable Grantor, (iii) to the extent permitted by law, agrees that the
“issuer’s jurisdiction” (as defined in Section 8-110 of the Code) is the State of New York, (iv) agrees
to notify Administrative Agent upon obtaining knowledge of any interest in favor of any person in the applicable Pledged Interests
that is materially adverse to the interest of Administrative Agent therein, other than any Permitted Liens and (v) waives
any right or requirement at any time hereafter to receive a copy of this Agreement in connection with the registration of any
Pledged Interests hereunder in the name of Administrative Agent or its nominee or the exercise of voting rights by Administrative
Agent or its nominee.

 

    	 	17	 

     

    

      (i)           Pledged Note. Grantors, without the prior written consent of Administrative Agent, will not (i) waive or release
the payment obligations on the maturity date of the Pledged Note of any Person obligated under the Pledged Note or (ii) release
any material portion of the collateral securing the obligations under the Pledged Note.

 

      (j)           Transfers
and Other Liens. Grantors shall not (i) sell, assign (by operation of law or otherwise) or otherwise dispose of, or grant
any option with respect to, any of the Collateral, except as permitted by the Credit Agreement, or (ii) create or permit
to exist any Lien upon or with respect to any of the Collateral of any Grantor, except for Permitted Liens. The inclusion of Proceeds
in the Collateral shall not be deemed to constitute Administrative Agent’s consent to any sale or other disposition of any
of the Collateral except as expressly permitted in this Agreement or the other Loan Documents.

 

      (k)          Motor
Vehicles. Promptly (and in any event within twenty (20) Business Days) after request by Administrative Agent (or such longer
period as agreed to in writing by Administrative Agent) with respect to all motor vehicles covered by a certificate of title owned
by any Grantor with an aggregate fair market value in excess of $7,500,000, such Grantor shall deliver to Administrative Agent
or Administrative Agent’s designee, the certificates of title for all such motor vehicles (other than certificates with
respect to any motor vehicles that are subject to Permitted Liens that are senior to the Administrative Agent’s security
interest hereunder) and promptly (and in any event within sixty (60) Business Days) after request by Administrative Agent (or
such longer period as agreed to in writing by Administrative Agent), such Grantor shall take all actions necessary to cause such
certificates (other than certificates with respect to any motor vehicles that are subject to Permitted Liens that are senior to
the Administrative Agent’s security interest hereunder) to be filed (with the Administrative Agent’s Lien noted thereon)
in the appropriate state motor vehicle filing office.

 

      (l)           Name,
Etc. No Grantor will change its name, chief executive office, jurisdiction of organization or organizational identity without
providing Administrative Agent written notice thereof promptly (and in any event within thirty (30) days (or such longer period
as agreed to in writing by Administrative Agent) after such change or, in the case of a change in jurisdiction of organization,
at least ten (10) days (or such shorter period as agreed to in writing by Administrative Agent) prior to such change).

 

      (m)         Credit Card Receivables.

 

 (i)                    Each
Grantor shall keep and maintain at its own cost and expense complete records of each Credit Card Receivable, in a manner consistent
with prudent business practice, including, without limitation, records of all payments received, all credits granted thereon,
all merchandise returned and all other documentation relating thereto. Each Grantor shall, at such Grantor’s sole cost and
expense, upon Administrative Agent’s demand made at any time after the occurrence and during the continuance of any Event
of Default, deliver all tangible evidence of all Credit Card Receivables, including, without limitation, all documents evidencing
such Credit Card Receivables and any books and records relating thereto to Administrative Agent or to its representatives (copies
of which evidence and books and records may be retained by such Grantor). Upon the occurrence and during the continuance of any
Event of Default, Administrative Agent may transfer a full and complete copy of any Grantor’s books, records, credit information,
reports, memoranda and all other writings relating to the Credit Card Receivables to and for the use by any Person that has acquired
or is contemplating acquisition of an interest in the Credit Card Receivables or Administrative Agent’s security interest
therein in accordance with applicable Requirements of Law without the consent of any Grantor.

 

 (ii)                   No
Grantor shall rescind or cancel any indebtedness evidenced by any Credit Card Receivable or modify any term thereof or make any
adjustment with respect thereto except in the ordinary course of business consistent with prudent business practice, or extend
or renew any such indebtedness except in the ordinary course of business consistent with prudent business practice or compromise
or settle any dispute, claim, suit or legal proceeding relating thereto or sell any Credit Card Receivable or interest therein
except in the ordinary course of business consistent with prudent business practice or in accordance with the Credit Agreement
without the prior written consent of Administrative Agent.

    	 	18	 

     

    

 

7.                  
Relation to Other Security Documents. The provisions of this Agreement shall be read and construed with the other
Loan Documents referred to below in the manner so indicated.

 

      (a)          Credit
Agreement. In the event of any conflict between any provision in this Agreement and a provision in the Credit Agreement, such
provision of the Credit Agreement shall control.

 

      (b)          Patent,
Trademark, Copyright Security Agreements. The provisions of the Copyright Security Agreements, Trademark Security Agreements,
and Patent Security Agreements are supplemental to the provisions of this Agreement, and nothing contained in any Copyright Security
Agreement, Trademark Security Agreement or Patent Security Agreement shall limit any of the rights or remedies of Administrative
Agent hereunder. In the event of any conflict between any provision in this Agreement and a provision in a Copyright Security
Agreement, Trademark Security Agreement or Patent Security Agreement, such provision of this Agreement shall control.

 

      (c)          Intercreditor Agreement.

 

 (i)                    Notwithstanding
anything herein to the contrary, the priority of the Lien and Security Interest granted to Administrative Agent and/or the other
Secured Parties pursuant to this Agreement and the exercise of the rights and remedies of Administrative Agent and/or the other
Secured Parties hereunder are subject to the provisions of the Intercreditor Agreement. In the event of any direct conflict between
the terms of the Intercreditor Agreement and the terms of this Agreement, the terms of the Intercreditor Agreement shall govern
and control, except with respect to the scope of the assets included in Section 2 hereof.

 

 (ii)                   Notwithstanding
anything contained in this Agreement or any other Collateral Document, to the extent that the provisions of this Agreement (or
any other Collateral Document) require the delivery of, or granting of control over, or giving notice with respect to, any Term
Priority Collateral to Administrative Agent, then prior to the Discharge of Term Priority Obligations, delivery of such Collateral
(or control or notice with respect thereto) may instead be made to Term Collateral Agent, to be held in accordance with the GACP
Facility Loan Documents and the Intercreditor Agreement, and any Grantor’s obligations hereunder with respect to such delivery,
control or notice shall be deemed satisfied by such delivery to the Term Collateral Agent. Furthermore, at all times prior to
the Discharge of Term Priority Obligations, Administrative Agent is authorized by the parties hereto to effect transfers of such
Term Priority Collateral at any time in its possession (and any “control” or similar agreements with respect to such
Collateral) to the Term Collateral Agent in accordance with the Intercreditor Agreement.

 

8.                  
Further Assurances.

 

      (a)           Each Grantor agrees that from time to time, at its own expense, such Grantor will promptly execute and deliver all further
instruments and documents, and take all further action, that Administrative Agent may reasonably request, in order to perfect and
protect the Security Interest granted hereby, to create, perfect or protect the Security Interest purported to be granted hereby
or to enable Administrative Agent to exercise and enforce its rights and remedies hereunder with respect to any of the Collateral.

 

    	 	19	 

     

    

     (b)          Each
Grantor authorizes the filing by Administrative Agent of financing or continuation statements, or amendments thereto, and such
Grantor will execute and deliver to Administrative Agent such other instruments or notices, as Administrative Agent may reasonably
request, in order to perfect and preserve the Security Interest granted or purported to be granted hereby, to the extent required
by this Agreement or any other Loan Document.

 

     (c)           Each
Grantor authorizes Administrative Agent at any time and from time to time to file, transmit, or communicate, as applicable, financing
statements and amendments (i) describing the Collateral as “all personal property of debtor” or “all assets
of debtor” or words of similar effect, (ii) describing the Collateral as being of equal or lesser scope or with greater
detail, or (iii) that contain any information required by part 5 of Article 9 of the Code for the sufficiency or
filing office acceptance. Each Grantor also hereby ratifies any and all financing statements or amendments previously filed by
Administrative Agent in any jurisdiction.

 

     (d)           Each
Grantor acknowledges that it is not authorized to file any financing statement or amendment or termination statement with respect
to any financing statement filed in connection with this Agreement without the prior written consent of Administrative Agent,
subject to such Grantor’s rights under Section 9-509(d)(2) of the Code.

 

9.                  
Administrative Agent’s Right to Perform Contracts, Exercise Rights, etc. Upon the occurrence and during the
continuance of an Event of Default, Administrative Agent (or its designee) (a) may, to the extent permitted by law, proceed
to perform any and all of the obligations of any Grantor contained in any contract, lease, or other agreement constituting Collateral
and exercise any and all rights of any Grantor therein contained as fully as such Grantor itself could, (b) shall, to the
extent permitted by law, have the right (subject to Section 16(b)) to use any Grantor’s rights under Intellectual
Property Licenses in connection with the enforcement of Administrative Agent’s rights hereunder, including the right to prepare
for sale and sell any and all Inventory and Equipment now or hereafter owned by any Grantor and now or hereafter covered by such
licenses, and (c) shall have the right to request that any Capital Stock that are pledged hereunder be registered in the name
of Administrative Agent or any of its nominees.

 

10.                 Administrative
Agent Appointed Attorney-in-Fact. Each Grantor hereby irrevocably appoints Administrative Agent its attorney-in-fact, with
full authority in the place and stead of such Grantor and in the name of such Grantor or otherwise, at such time as an Event of
Default has occurred and is continuing under the Credit Agreement, to take any action and to execute any instrument which Administrative
Agent may reasonably deem necessary or advisable to accomplish the purposes of this Agreement, including:

 

     (a)           to ask, demand, collect, sue for, recover, compromise, receive and give acquittance and receipts for moneys due and to become
due under or in connection with the Accounts or any other Collateral of such Grantor;

 

     (b)          to
receive, indorse, and collect any drafts or other instruments, documents, Negotiable Collateral or Chattel Paper;

 

     (c)           to
file any claims or take any action or institute any proceedings which Administrative Agent may reasonably deem necessary or desirable
for the collection of any of the Collateral of such Grantor or otherwise to enforce the rights of Administrative Agent with respect
to any of the Collateral;

 

    	 	20	 

     

    

     (d)           to repair, alter, or supply goods, if any, necessary to fulfill in whole or in part the purchase order of any Person obligated
to such Grantor in respect of any Account of such Grantor;

 

     (e)           to
use, subject to the license granted in Section 16(b) hereof, any Intellectual Property or Intellectual Property Licenses
of such Grantor, including but not limited to any labels, Patents, Trademarks, trade names, URLs, domain names, industrial designs,
Copyrights, or advertising matter, in preparing for sale, advertising for sale, or selling Inventory or other Collateral and to
collect any amounts due under Accounts, contracts or Negotiable Collateral of such Grantor; and

 

     (f)            Administrative
Agent, on behalf of the Secured Parties, shall have the right, but shall not be obligated, to bring suit in its own name to enforce
the Intellectual Property and Intellectual Property Licenses and, if Administrative Agent shall commence any such suit, the appropriate
Grantor shall, at the request of Administrative Agent, do any and all lawful acts and execute any and all proper documents reasonably
required by Administrative Agent in aid of such enforcement.

 

To the extent permitted
by law, each Grantor hereby ratifies all that such attorney-in-fact shall lawfully do or cause to be done by virtue hereof. This
power of attorney is coupled with an interest and shall be irrevocable until this Agreement is terminated.

 

11.                 Administrative
Agent May Perform. If any Grantor fails to perform any agreement contained herein, Administrative Agent may itself perform,
or cause performance of, such agreement, and the reasonable expenses of Administrative Agent incurred in connection therewith
shall be payable, jointly and severally, by Grantors in accordance with the terms of the Credit Agreement.

 

12.                 Administrative
Agent’s Duties. The powers conferred on Administrative Agent hereunder are solely to protect Administrative Agent’s
interest in the Collateral, for the benefit of the Secured Parties, and shall not impose any duty upon Administrative Agent to
exercise any such powers. Except for the safe custody of any Collateral in its actual possession and the accounting for moneys
actually received by it hereunder, Administrative Agent shall have no duty as to any Collateral or as to the taking of any necessary
steps to preserve rights against prior parties or any other rights pertaining to any Collateral. Administrative Agent shall be
deemed to have exercised reasonable care in the custody and preservation of any Collateral in its actual possession if such Collateral
is accorded treatment substantially equal to that which Administrative Agent accords its own property.

 

13.                 Collection
of Accounts, General Intangibles and Negotiable Collateral. At any time upon the occurrence and during the continuance of
an Event of Default, Administrative Agent or Administrative Agent’s designee may (a) make direct verification from
Account Debtors with respect to any or all Accounts that are part of the Collateral, (b) notify Account Debtors of any Grantor
that the Accounts, General Intangibles, Chattel Paper or Negotiable Collateral of such Grantor have been assigned to Administrative
Agent, for the benefit of the Secured Parties, or that Administrative Agent has a security interest therein, or (c) collect
the Accounts, General Intangibles and Negotiable Collateral of any Grantor directly, and any reasonable collection costs and expenses
shall constitute part of such Grantor’s Secured Obligations under the Loan Documents.

 

14.                 Disposition
of Pledged Interests by Administrative Agent. None of the Pledged Interests existing as of the Closing Date are, and other
than to the extent hereafter disclosed, none of the Pledged Interests hereafter acquired on the date of acquisition thereof will
be, registered or qualified under the various federal or state securities laws of the United States and to the extent not so registered
or qualified, disposition thereof after an Event of Default has occurred and is continuing may be restricted to one or more private
(instead of public) sales in view of the lack of such registration. Each Grantor understands that in connection with such disposition,
Administrative Agent may approach only a restricted number of potential purchasers and further understands that a sale under such
circumstances may yield a lower price for the Pledged Interests than if the Pledged Interests were registered and qualified pursuant
to federal and state securities laws and sold on the open market. Each Grantor, therefore, agrees that: (a) if Administrative
Agent shall, pursuant to the terms of this Agreement, sell or cause the Pledged Interests or any portion thereof to be sold at
a private sale, Administrative Agent shall have the right to rely upon the advice and opinion of any nationally recognized brokerage
or investment firm (but shall not be obligated to seek such advice and the failure to do so shall not be considered in determining
the commercial reasonableness of such action) as to the best manner in which to offer the Pledged Interest or any portion thereof
for sale and as to the best price reasonably obtainable at the private sale thereof, and (b) such reliance shall be conclusive
evidence that Administrative Agent has handled the disposition in a commercially reasonable manner.

 

    	 	21	 

     

    

15.                 Voting
and Other Rights in Respect of Pledged Interests.

 

     (a)           Upon
the occurrence and during the continuation of an Event of Default, (i) Administrative Agent may, at its option, and in addition
to all rights and remedies available to Administrative Agent under any other agreement, at law, in equity, or otherwise, exercise
all voting rights, or any other ownership or consensual rights (including any dividend or distribution rights) in respect of the
Pledged Interests owned by such Grantor, but under no circumstances is Administrative Agent obligated by the terms of this Agreement
to exercise such rights, and (ii) if Administrative Agent duly exercises its right to vote any of such Pledged Interests,
each Grantor hereby appoints Administrative Agent, such Grantor’s true and lawful attorney-in-fact and IRREVOCABLE PROXY
to vote such Pledged Interests in any manner Administrative Agent deems advisable for or against all matters submitted or which
may be submitted to a vote of shareholders, partners or members, as the case may be. The power-of-attorney and proxy granted hereby
is coupled with an interest and shall be irrevocable.

 

     (b)           For
so long as any Grantor shall have the right to vote the Pledged Interests owned by it, such Grantor covenants and agrees that
it will not, without the prior written consent of Administrative Agent, vote or take any consensual action with respect to such
Pledged Interests in violation of this Agreement or any other Loan Document.

 

16.                
Remedies.

 

     (a)           Upon
the occurrence and during the continuance of an Event of Default, Administrative Agent may, and, at the instruction of the Required
Lenders, shall exercise in respect of the Collateral, in addition to other rights and remedies provided for herein, in the other
Loan Documents, or otherwise available to it, all the rights and remedies of a secured party on default under the Code or any
other applicable law. Without limiting the generality of the foregoing, each Grantor expressly agrees that, in any such event,
Administrative Agent without demand of performance or other demand, advertisement or notice of any kind (except a notice specified
below of time and place of public or private sale) to or upon any Grantor or any other Person (all and each of which demands,
advertisements and notices are hereby expressly waived to the maximum extent permitted by the Code or any other applicable law),
may take immediate possession of all or any portion of the Collateral and (i) require Grantors to, and each Grantor hereby
agrees that it will at its own expense and upon request of Administrative Agent forthwith, assemble all or part of the Collateral
as directed by Administrative Agent and make it available to Administrative Agent at one or more locations where such Grantor
regularly maintains Inventory, and (ii) without notice except as specified below, sell the Collateral or any part thereof
in one or more parcels at public or private sale, at any of Administrative Agent’s offices or elsewhere, for cash, on credit,
and upon such other terms as Administrative Agent may deem commercially reasonable. Each Grantor agrees that, to the extent notification
of sale shall be required by law, at least ten (10) days’ notification by mail to the applicable Grantor of the time and
place of any public sale or the time after which any private sale is to be made shall constitute reasonable notification and specifically
such notification shall constitute a reasonable “authenticated notification of disposition” within the meaning of
Section 9-611 of the Code. Administrative Agent shall not be obligated to make any sale of Collateral regardless of notification
of sale having been given. Administrative Agent may adjourn any public sale from time to time by announcement at the time and
place fixed therefor, and such sale may, without further notice, be made at the time and place to which it was so adjourned. Each
Grantor agrees that (A) the internet shall constitute a “place” for purposes of Section 9-610(b) of the
Code, and (B) to the extent notification of sale shall be required by law, notification by mail of the URL where a sale will
occur and the time when a sale will commence at least ten days prior to the sale shall constitute a reasonable notification for
purposes of Section 9-611(b) of the Code. Each Grantor agrees that any sale of Collateral to a licensor pursuant to the terms
of a license agreement between such licensor and a Grantor is sufficient to constitute a commercially reasonable sale (including
as to method, terms, manner, and time) within the meaning of Section 9-610 of the Code.

 

    	 	22	 

     

    

     (b)           Solely
for the purpose of enabling the Administrative Agent to exercise rights and remedies under this Section 16, at such time
as the Administrative Agent shall be lawfully entitled to exercise such rights and remedies, each Grantor hereby grants, to the
extent it has the right to grant, to the Administrative Agent an irrevocable (solely during the time in which the license under
this Section 16(b) is effective), nonexclusive license (exercisable only upon the occurrence and during the continuance
of an Event of Default and without payment of royalty or other compensation to such Grantor) to use, license or sublicense any
of the Intellectual Property now owned or hereafter acquired by such Grantor (regardless of whether such Intellectual Property
constitutes Collateral), and wherever the same may be located, and including in such license reasonable access to all media in
which any of the licensed items may be recorded or stored and to all computer software and programs used for the compilation or
printout thereof; provided, that such license (i) shall not violate the express terms of any agreement between a Grantor
and any unaffiliated third party governing the applicable Grantor’s use of any of the foregoing Intellectual Property, or
give such third party any right of acceleration, modification or cancellation therein, (ii) is not prohibited by any applicable
Requirements of Law, and (iii) shall be subject, in the case of Trademarks, to sufficient rights of quality control and inspection
in favor of such Grantor to avoid the risk of invalidation of such Trademarks. The use of such license by the Administrative Agent
shall be exercised, at the option of the Administrative Agent, upon the occurrence and during the continuation of an Event of
Default; provided that any license, sublicense or other transaction entered into by the Administrative Agent in accordance
herewith shall be binding upon such Grantor notwithstanding any subsequent cure of an Event of Default. Any royalties and other
payments received by the Administrative Agent shall be applied in accordance with Section 16(d) hereof.

 

     (c)           Upon
the occurrence and during the continuance of an Event of Default, Administrative Agent may, in addition to other rights and remedies
provided for herein, in the other Loan Documents, or otherwise available to it under applicable law and without the requirement
of notice to or upon any Grantor or any other Person (which notice is hereby expressly waived to the maximum extent permitted
by the Code or any other applicable law), (i) with respect to any Grantor’s Deposit Accounts in which Administrative
Agent’s Liens are perfected by control under Section 9-104 of the Code, instruct the bank maintaining such Deposit
Account for the applicable Grantor to pay the balance of such Deposit Account to or for the benefit of Administrative Agent, and
(ii) with respect to any Grantor’s Securities Accounts in which Administrative Agent’s Liens are perfected by
control under Section 9-106 of the Code, instruct the securities intermediary maintaining such Securities Account for the
applicable Grantor to (A) transfer any cash in such Securities Account to or for the benefit of Administrative Agent, or
(B) liquidate any financial assets in such Securities Account that are customarily sold on a recognized market and transfer
the cash proceeds thereof to or for the benefit of Administrative Agent.

 

    	 	23	 

     

    

     (d)           Upon
the occurrence and during the continuance of an Event of Default, any cash held by Administrative Agent as Collateral and all
cash proceeds received by Administrative Agent in respect of any sale of, collection from, or other realization upon all or any
part of the Collateral shall be applied against the Secured Obligations in the order set forth in the Credit Agreement. In the
event the proceeds of Collateral are insufficient to satisfy all of the Secured Obligations in full, each Grantor shall remain
jointly and severally liable for any such deficiency.

 

     (e)           Each
Grantor hereby acknowledges that the Secured Obligations arise out of a commercial transaction, and agrees that if an Event of
Default shall occur and be continuing Administrative Agent shall have the right to an immediate writ of possession without notice
of a hearing. Administrative Agent shall have the right to the appointment of a receiver for the properties and assets of each
Grantor, and each Grantor hereby consents to such rights and such appointment and hereby waives any objection such Grantor may
have thereto or the right to have a bond or other security posted by Administrative Agent.

 

17.                 Remedies Cumulative. Each right, power, and remedy of Administrative Agent or any Lender, as provided for in this
Agreement or the other Loan Documents now or hereafter existing at law or in equity or by statute or otherwise shall be cumulative
and concurrent and shall be in addition to every other right, power, or remedy provided for in this Agreement or the other Loan
Documents now or hereafter existing at law or in equity or by statute or otherwise, and the exercise or beginning of the exercise
by Administrative Agent, any Lender, of any one or more of such rights, powers, or remedies shall not preclude the simultaneous
or later exercise by Administrative Agent, such Lender of any or all such other rights, powers, or remedies.

 

18.                
Marshaling. Administrative Agent shall not be required to marshal any present or future collateral security (including
but not limited to the Collateral) for, or other assurances of payment of, the Secured Obligations or any of them or to resort
to such collateral security or other assurances of payment in any particular order, and all of its rights and remedies hereunder
and in respect of such collateral security and other assurances of payment shall be cumulative and in addition to all other rights
and remedies, however existing or arising. To the extent that it lawfully may, each Grantor hereby agrees that it will not invoke
any law relating to the marshaling of collateral which might cause delay in or impede the enforcement of Administrative Agent’s
rights and remedies under this Agreement or under any other instrument creating or evidencing any of the Secured Obligations or
under which any of the Secured Obligations is outstanding or by which any of the Secured Obligations is secured or payment thereof
is otherwise assured, and, to the extent that it lawfully may, each Grantor hereby irrevocably waives the benefits of all such
laws.

 

19.                 Indemnity.
Each Grantor agrees to indemnify Administrative Agent and the Lenders from and against all claims, lawsuits and liabilities (including
reasonable attorneys’ fees) arising out of or resulting from this Agreement (including enforcement of this Agreement) in
accordance with and to the extent set forth in Section 10.03 of the Credit Agreement. This provision shall survive the termination
of this Agreement and the Credit Agreement and the repayment of the Secured Obligations.

 

20.                 Merger,
Amendments; Etc. THIS AGREEMENT, TOGETHER WITH THE OTHER LOAN DOCUMENTS, REPRESENTS THE FINAL AGREEMENT BETWEEN THE PARTIES
AND MAY NOT BE CONTRADICTED BY EVIDENCE OF PRIOR, CONTEMPORANEOUS OR ORAL AGREEMENTS OF THE PARTIES. THERE ARE NO UNWRITTEN AGREEMENTS
BETWEEN THE PARTIES. No waiver of any provision of this Agreement, and no consent to any departure by any Grantor herefrom, shall
in any event be effective unless the same shall be in writing and signed by Administrative Agent, and then such waiver or consent
shall be effective only in the specific instance and for the specific purpose for which given. No amendment of any provision of
this Agreement shall be effective unless the same shall be in writing and signed by Administrative Agent and each Grantor to which
such amendment applies.

 

    	 	24	 

     

    

21.                 Addresses
for Notices. All notices and other communications provided for hereunder shall be given in the form and manner and delivered
to Administrative Agent at its address specified in the Credit Agreement, and to any of the Grantors at the notice address specified
for Lead Borrower in the Credit Agreement, or as to any party, at such other address as shall be designated by such party in a
written notice to the other party.

 

22.                
Continuing Security Interest: Assignments under Credit Agreement.

 

     (a)           This
Agreement shall create a continuing security interest in the Collateral and shall (i) remain in full force and effect until
the Termination Date, (ii) be binding upon each Grantor, and their respective successors and assigns, and (iii) inure
to the benefit of, and be enforceable by, Administrative Agent, and its successors, permitted transferees and permitted assigns.
Without limiting the generality of the foregoing clause (iii), any Lender may, solely in accordance with the provisions of
the Credit Agreement, assign or otherwise transfer all or any portion of its rights and obligations under the Credit Agreement
to any other Person, and such other Person shall thereupon become vested with all the benefits in respect thereof granted to such
Lender herein or otherwise. Upon the occurrence of the Termination Date, the Security Interest granted hereby shall terminate
and all rights to the Collateral shall revert to Grantors or any other Person entitled thereto. At such time, upon Lead Borrower’s
request, Administrative Agent will (i) authorize the filing of appropriate termination statements to terminate such Security
Interest, (ii) terminate all control agreements entered into pursuant to this Agreement or any other Loan Document and (iii) return
to Lead Borrower, all Collateral in Administrative Agent’s or its agent’s possession. No transfer or renewal, extension,
assignment, or termination of this Agreement or of the Credit Agreement, any other Loan Document, or any other instrument or document
executed and delivered by any Grantor to Administrative Agent nor any additional loans made by any Lender to any Borrower, nor
the taking of further security, nor the retaking or re-delivery of the Collateral to Grantors, or any of them, by Administrative
Agent, nor any other act of the Secured Parties, or any of them, shall release any Grantor from any obligation, except a release
or discharge effected in accordance with the provisions of the Credit Agreement. Administrative Agent shall not by any act, delay,
omission or otherwise, be deemed to have waived any of its rights or remedies hereunder, unless such waiver is in writing and
signed by Administrative Agent and then only to the extent therein set forth. A waiver by Administrative Agent of any right or
remedy on any occasion shall not be construed as a bar to the exercise of any such right or remedy which Administrative Agent
would otherwise have had on any other occasion.

 

     (b)           If
any Secured Party repays, refunds, restores, or returns in whole or in part, any payment or property (including any proceeds of
Collateral) previously paid or transferred to such Secured Party in full or partial satisfaction of any Secured Obligation or
on account of any other obligation of any Loan Party under any Loan Document, because the payment, transfer, or the incurrence
of the obligation so satisfied is asserted or declared to be void, voidable, or otherwise recoverable under any law relating to
creditors’ rights, including provisions of the Bankruptcy Code relating to fraudulent transfers, preferences, or other voidable
or recoverable obligations or transfers (each, a “Voidable Transfer”), or because such Secured Party elects
to do so on the reasonable advice of its counsel in connection with a claim that the payment, transfer, or incurrence is or may
be a Voidable Transfer, then, as to any such Voidable Transfer, or the amount thereof that such Secured Party elects
to repay, restore, or return (including pursuant to a settlement of any claim in respect thereof), and as to all reasonable costs,
expenses, and external attorneys’ fees of such Secured Party related thereto, (i) the liability of the Loan Parties with
respect to the amount or property paid, refunded, restored, or returned will automatically and immediately be revived, reinstated,
and restored and will exist, and (ii) Administrative Agent’s Liens securing such liability shall be effective, revived,
and remain in full force and effect, in each case, as fully as if such Voidable Transfer had never been made. If, prior to any
of the foregoing, (A) Administrative Agent’s Liens shall have been released or terminated, or (B) any provision
of this Agreement shall have been terminated or cancelled, Administrative Agent’s Liens, or such provision of this Agreement,
shall be reinstated in full force and effect and such prior release, termination, cancellation or surrender shall not diminish,
release, discharge, impair or otherwise affect the obligation of any Loan Party in respect of such liability or any Collateral
securing such liability.

 

    	 	25	 

     

    

23.                 Survival. All representations and warranties made by the Grantors in this Agreement and in the certificates or other
instruments delivered in connection with or pursuant to this Agreement shall be considered to have been relied upon by the other
parties hereto and shall survive the execution and delivery of this Agreement and the making of any loans, regardless of any investigation
made by any such other party or on its behalf and notwithstanding that Administrative Agent or any Lender may have had notice or
knowledge of any Default or Event of Default or incorrect representation or warranty at the time any credit is extended under the
Credit Agreement, and shall continue in full force and effect as long as the principal of or any accrued interest on any loan or
any fee or any other amount payable under the Credit Agreement is outstanding and unpaid and so long as the Commitments have not
expired or terminated.

 

24.                 APPLICABLE LAW; CONSENT TO JURISDICTION; WAIVER OF JURY TRIAL.

 

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

 

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

 

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

 

    	 	26	 

     

    

     (c)           EACH
OF THE PARTIES HERETO HEREBY AGREES TO WAIVE ITS RESPECTIVE RIGHTS TO A JURY TRIAL OF ANY CLAIM OR CAUSE OF ACTION BASED UPON
OR ARISING HEREUNDER OR ANY DEALINGS BETWEEN THEM RELATING TO THE SUBJECT MATTER OF THIS LOAN TRANSACTION OR THE LENDER/BORROWER
RELATIONSHIP THAT IS BEING ESTABLISHED. THE SCOPE OF THIS WAIVER IS INTENDED TO BE ALL ENCOMPASSING OF ANY AND ALL DISPUTES THAT
MAY BE FILED IN ANY COURT AND THAT RELATE TO THE SUBJECT MATTER OF THIS TRANSACTION, INCLUDING CONTRACT CLAIMS, TORT CLAIMS, BREACH
OF DUTY CLAIMS AND ALL OTHER COMMON LAW AND STATUTORY CLAIMS. EACH PARTY HERETO ACKNOWLEDGES THAT THIS WAIVER IS A MATERIAL INDUCEMENT
TO ENTER INTO A BUSINESS RELATIONSHIP, THAT EACH HAS ALREADY RELIED ON THIS WAIVER IN ENTERING INTO THIS AGREEMENT, AND THAT EACH
WILL CONTINUE TO RELY ON THIS WAIVER IN ITS RELATED FUTURE DEALINGS. EACH PARTY HERETO FURTHER WARRANTS AND REPRESENTS THAT IT
HAS REVIEWED THIS WAIVER WITH ITS LEGAL COUNSEL AND THAT IT KNOWINGLY AND VOLUNTARILY WAIVES ITS JURY TRIAL RIGHTS FOLLOWING CONSULTATION
WITH LEGAL COUNSEL. THIS WAIVER IS IRREVOCABLE, MEANING THAT IT MAY NOT BE MODIFIED EITHER ORALLY OR IN WRITING (OTHER THAN BY
A MUTUAL WRITTEN WAIVER SPECIFICALLY REFERRING TO THIS SECTION 24 AND EXECUTED BY EACH OF THE PARTIES HERETO), AND
THIS WAIVER SHALL APPLY TO ANY SUBSEQUENT AMENDMENTS, RENEWALS, SUPPLEMENTS OR MODIFICATIONS HERETO . IN THE EVENT OF LITIGATION,
THIS AGREEMENT MAY BE FILED AS A WRITTEN CONSENT TO A TRIAL BY THE COURT.

 

25.                 New Subsidiaries. Pursuant to Section 5.10 of the Credit Agreement, certain Subsidiaries (whether by acquisition
or creation or otherwise) of Global Parent are required to enter into this Agreement by executing and delivering in favor of Administrative
Agent a Joinder to this Agreement in substantially the form of Annex 1. Upon the execution and delivery of Annex 1
by any such new Subsidiary, such Subsidiary shall become a Grantor hereunder with the same force and effect as if originally named
as a Grantor herein. The execution and delivery of any instrument adding an additional Grantor as a party to this Agreement shall
not require the consent of any Grantor hereunder. The rights and obligations of each Grantor hereunder shall remain in full force
and effect notwithstanding the addition of any new Grantor hereunder.

 

26.                 Administrative
Agent. Each reference herein to any right granted to, benefit conferred upon or power exercisable by the “Administrative
Agent” shall be a reference to Administrative Agent, for the benefit of each Secured Party.

 

27.                
Miscellaneous.

 

     (a)           This
Agreement is a Loan Document. This Agreement may be executed in any number of counterparts and by different parties on separate
counterparts, each of which, when executed and delivered, shall be deemed to be an original, and all of which, when taken together,
shall constitute but one and the same Agreement. Delivery of an executed counterpart of this Agreement by telefacsimile or other
electronic method of transmission shall be equally as effective as delivery of an original executed counterpart of this Agreement.
Any party delivering an executed counterpart of this Agreement by telefacsimile or other electronic method of transmission also
shall, if requested by Administrative Agent, deliver an original executed counterpart of this Agreement, but the failure to deliver
an original executed counterpart shall not affect the validity, enforceability, and binding effect of this Agreement. The foregoing
shall apply to each other Loan Document mutatis mutandis.

 

    	 	27	 

     

    

     (b)           Any
provision of this Agreement which is prohibited or unenforceable shall be ineffective to the extent of such prohibition or unenforceability
without invalidating the remaining provisions hereof in that jurisdiction or affecting the validity or enforceability of such
provision in any other jurisdiction. Each provision of this Agreement shall be severable from every other provision of this Agreement
for the purpose of determining the legal enforceability of any specific provision.

 

     (c)           Headings
and numbers have been set forth herein for convenience only. Unless the contrary is compelled by the context, everything contained
in each Section applies equally to this entire Agreement.

 

     (d)           Neither
this Agreement nor any uncertainty or ambiguity herein shall be construed against any Secured Party, or any Grantor, whether under
any rule of construction or otherwise. This Agreement has been reviewed by all parties and shall be construed and interpreted
according to the ordinary meaning of the words used so as to accomplish fairly the purposes and intentions of all parties hereto.

 

[Remainder of Page Intentionally
Left Blank; Signature Pages Follow]

 

 

 

 

 

 

 

 

 

 

 

 

 

    	 	28	 

     

    

 

IN WITNESS WHEREOF,
the undersigned parties hereto have caused this Agreement to be executed and delivered as of the day and year first above written.

 

	GRANTORS:

                                                               
	 
	
        FRANCHISE GROUP NEWCO INTERMEDIATE AF,
        LLC, a Delaware limited liability company

         

         

         

        By: /s/ Brian Kahn

        Name: Brian Kahn

        Title: President and Chief Executive Officer

         
	
        FRANCHISE GROUP INTERMEDIATE HOLDCO, LLC,
        a Delaware limited liability company

         

         

         

        By: /s/ Brian Kahn

        Name: Brian Kahn

        Title: President and Chief Executive Officer

         

	
        FRANCHISE GROUP INTERMEDIATE B, LLC,
        a Delaware limited liability company

         

         

         

        By: /s/ Brian Kahn

        Name: Brian Kahn

        Title: President and Chief Executive Officer

         
	
        FRANCHISE GROUP INTERMEDIATE S, LLC,
        a Delaware limited liability company

         

         

         

        By: /s/ Brian Kahn

        Name: Brian Kahn

        Title: President and Chief Executive Officer

         

	
        FRANCHISE GROUP NEWCO S, LLC, a Delaware
        limited liability company

         

         

         

        By: /s/ Ron Allender

        Name: Ron Allender

        Title: Executive Vice President

         
	
        AMERICAN FREIGHT DISCOUNT OUTLET FRANCHISING,
        LLC, a Delaware limited liability company

         

         

         

        By: /s/ William Powell

        Name: William Powell

        Title: Executive Vice President

         

	
        AMERICAN FREIGHT OUTLET STORES, LLC,
        a Delaware limited liability company

         

         

         

        By: /s/ William Powell

        Name: William Powell

        Title: President

         
	
        OUTLET MERCHANDISE, LLC, a Delaware
        limited liability company

         

         

         

        By: /s/ William Powell

        Name: William Powell

        Title: President

         

	
        BUDDY’S NEWCO, LLC, a Delaware
        limited liability company

         

         

         

        By: /s/ Michael Bennett

        Name: Michael Bennett

        Title: Chief Executive Officer

         
	
        BUDDY’S FRANCHISING AND LICENSING
        LLC, a Florida limited liability company

         

         

         

        By: /s/ Michael Bennett

        Name: Michael Bennett

        Title: Chief Executive Officer

         

 

    	[Signature Page to ABL Security Agreement]

     

    

	
        AMERICAN FREIGHT GROUP, LLC, a Delaware
        limited liability company

         

         

         

        By: /s/ William Powell

        Name: William Powell

        Title: Executive Vice President

         
	
        AMERICAN FREIGHT HOLDINGS, LLC, a Delaware
        limited liability company

         

         

         

        By: /s/ William Powell

        Name: William Powell

        Title: Executive Vice President

         

	
        AMERICAN FREIGHT, LLC, a Delaware limited
        liability company

         

         

         

        By: /s/ William Powell

        Name: William Powell

        Title: Executive Vice President

         
	
        AMERICAN FREIGHT MANAGEMENT COMPANY, LLC,
        a Delaware limited liability company

         

         

         

        By: /s/ William Powell

        Name: William Powell

        Title: Executive Vice President

         

	
        FRANCHISE GROUP INTERMEDIATE V, LLC,
        a Delaware limited liability company

         

         

         

        By: /s/ Brian Kahn

        Name: Brian Kahn

        Title: President and Chief Executive Officer

         
	
        FRANCHISE GROUP NEWCO V, LLC, a Delaware
        limited liability company

         

         

         

        By: /s/ Brian Kahn

        Name: Brian Kahn

        Title: President and Chief Executive Officer

         

	
        FRANCHISE GROUP NEW HOLDCO, LLC, a
        Delaware limited liability company

         

         

         

        By: /s/ Brian Kahn

        Name: Brian Kahn

        Title: President and Chief Executive Officer

         
	
        FRANCHISE GROUP INTERMEDIATE L, LLC,
        a Delaware limited liability company

         

         

         

        By: /s/ Brian Kahn

        Name: Brian Kahn

        Title: President and Chief Executive Officer

         

	 	 

 

 

 

 

 

    	[Signature Page to ABL Security Agreement]

     

    

 

 

 

ADMINISTRATIVE AGENT:

 

CITIZENS BANK, N.A.

 

 

 

By: /s/ Brian Kennedy

Name: Brian Kennedy

Title: Senior Vice President

 

 

 

 

 

 

 

 

 

[Signature Page to ABL Security Agreement]EX-4.1

 Exhibit 4.1 

ONCOR ELECTRIC DELIVERY COMPANY LLC 

OFFICER’S CERTIFICATE 
 16-AO-16 
 ESTABLISHING THE FORM AND CERTAIN TERMS OF THE 

0.55% SENIOR SECURED NOTES DUE 2025. 

The undersigned, Kevin R. Fease, Vice President and Treasurer of Oncor Electric Delivery Company LLC (formerly TXU Electric Delivery Company
(formerly Oncor Electric Delivery Company)) (the “Company”) (all capitalized terms used herein which are not defined herein but are defined in the Indenture referred to below, shall have the meanings specified in the Indenture),
pursuant to Board Resolutions dated April 29, 2020 and Sections 102, 201, 301, 303(d) and 707(c)(ii) of the Indenture (For Unsecured Debt Securities), dated as of August 1, 2002, between the Company and The Bank of New York Mellon
Trust Company, N.A. (as successor to The Bank of New York Mellon, formerly The Bank of New York), as Trustee (the “Trustee”), as supplemented and amended by Supplemental Indenture No. 1 dated as of May 15, 2008, between
the Company and the Trustee (as heretofore supplemented and amended, the “Indenture”), does hereby certify to the Trustee that: 
  

	1.	 The Securities of the twenty-fourth series to be issued under the Indenture shall be initially issued in a
series designated “0.55% Senior Secured Notes due 2025” (the “Notes”); the Notes shall be in substantially the form set forth in Exhibit A hereto; 

 

	2.	 The Notes shall be initially authenticated and delivered in the aggregate principal amount of $450,000,000 (the
“Initial Notes”); provided, however, that the Company may, without the consent of the Holders of the Initial Notes, create and issue additional Notes ranking equally with, and otherwise identical in all respects to, the Initial
Notes (except for the issue price therefor, the date from which interest first accrues thereon and the first interest payment date therefor), which additional Notes shall form a single series with the Initial Notes; 

 

	3.	 The Notes shall mature and the principal thereof shall be due and payable together with all accrued and unpaid
interest thereon on October 1, 2025, and the Company shall not have any right to extend the Maturity of the Notes as contemplated in Section 301(d) of the Indenture; 

 

	4.	 The Notes shall bear interest as provided in the form thereof set forth in Exhibit A hereto; the Interest
Payment Dates for the Notes shall be April 1 and October 1 of each year, commencing April 1, 2021; 

  

	5.	 Each installment of interest on a Note shall be payable as provided in the form thereof set forth in Exhibit A
hereto; the Company shall not have any right to extend any interest payment periods for the Notes as contemplated in Section 301(e) of the Indenture; 

  
 1 

	6.	 The principal of, premium, if any, each installment of interest on and Additional Interest (as defined in the
Notes), if any, on the Notes shall be payable at, and registration of transfers and exchanges in respect of the Notes may be effected at, the office or agency of the Company in The City of New York; and notices and demands to or upon the Company in
respect of the Notes and the Indenture may be served at the office or agency of the Company in The City of New York; the corporate trust office of The Bank of New York Mellon, as agent of the Trustee, will initially be the agency of the Company for
such payment, registration and registration of transfers and exchanges and service of notices and demands, and the Company hereby appoints the Trustee as its agent for all such purposes; and the Trustee will initially be the Security Registrar and
the Paying Agent for the Notes; provided, however, that the Company reserves the right to establish or change, by one or more Officer’s Certificates, any such office or agency and such agent. 

 

	7.	 The Regular Record Date for the interest payable on any given Interest Payment Date with respect to the Notes
shall be the 15th calendar day before such Interest Payment Date; 

  

	8.	 The Notes are subject to redemption as provided in the form thereof set forth in Exhibit A hereto;

  

	9.	 The Notes are “Benefitted Securities” and shall have the benefit of the covenant of the Company
contained in Section 707 of the Indenture and, pursuant to Section 707(b)(i) of the Indenture, the Notes are and shall be secured equally and ratably with the Secured Debt under the Indenture and the Additional Secured Debt pursuant to,
and subject to the terms and conditions of, the Deed of Trust, Security Agreement and Fixture Filing, dated as of May 15, 2008, as amended by the First Amendment to Deed of Trust, Security Agreement and Fixture Filing, dated as of March 2,
2009, the Second Amendment to Deed of Trust, Security Agreement and Fixture Filing, dated as of September 3, 2010 and the Third Amendment to Deed of Trust, Security Agreement and Fixture Filing, dated as of November 10, 2011 (as amended,
the “Deed of Trust”), by the Company to and for the benefit of The Bank of New York Mellon Trust Company, N.A. (as successor to The Bank of New York Mellon, formerly The Bank of New York) as collateral agent and trustee thereunder;

  

	10.	 The Notes shall be issuable in denominations of $2,000 and integral multiples of $1,000 in excess thereof;

  

	11.	 No service charge shall be made for the registration of transfer or exchange of the Notes; provided, however,
that the Company may require payment of a sum sufficient to cover any tax or other governmental charge that may be imposed in connection with the exchange or transfer; 

 

	12.	 The Notes shall be initially issued in global form registered in the name of Cede & Co. (as nominee
for The Depository Trust Company (“DTC”)); provided, that the Company reserves the right to provide for another depositary, registered as a clearing agency under the Exchange Act, to act as depositary for the global Notes (DTC and
any such successor 

  
 2 

	 	
depositary, and any successor to any thereto, the “Depositary”); beneficial interests in Notes issued in global form may not be exchanged in whole or in part for individual
certificated Notes in definitive form, and no transfer of a global Note in whole or in part may be registered in the name of any Person other than the Depositary or its nominee except that (i) if the Depositary (A) has notified the Company
that it is unwilling or unable to continue as depositary for the global Notes or (B) has ceased to be a clearing agency registered under the Exchange Act and, in either case, a successor depositary for such global Notes has not been appointed
within 90 days, the Company will execute, and the Trustee, upon receipt of a Company Order for the authentication and delivery of definitive Notes, will authenticate and deliver Notes in definitive certificated form in an aggregate principal amount
equal to the aggregate principal amount of the global Notes representing such Notes in exchange for such global Notes, such definitive Notes to be registered in the names provided by the Depositary; each global Note (i) shall represent and
shall be denominated in an amount equal to the aggregate principal amount of the outstanding Notes to be represented by such global Note, (ii) shall be registered in the name of the Depositary or its nominee, (iii) shall be delivered by
the Trustee to the Depositary, its nominee, any custodian for the Depositary or otherwise pursuant to the Depositary’s instruction and (iv) shall bear a legend restricting the transfer of such global Note to any Person other than the
Depositary or its nominee; none of the Company, the Trustee, any Paying Agent, any Security Registrar or any Authenticating Agent will have any responsibility or liability for any aspect of the records relating to, or payments made on account of, or
transfers of, beneficial ownership interests in a global Note or for maintaining, supervising or reviewing any records relating to such beneficial ownership interests; and the Notes in global form will contain restrictions on transfer, substantially
as described in the form set forth in Exhibit A hereto; 

  

	13.	 The Notes will be initially issued pursuant to Section 4(a)(2) of the Securities Act of 1933, as amended
(the “Securities Act”). Each Note, whether in a global form or in a certificated form, shall bear the non-registration legend and the registration rights legend in substantially the form set
forth in such applicable form, unless otherwise agreed to by the Company, such agreement to be confirmed in writing to the Trustee. DTC or its nominee shall be the Holder of such applicable global Note for all purposes under the Indenture and the
Notes, and beneficial owners with respect to such applicable global Note shall hold their interests pursuant to applicable procedures of the Depositary. The Company, the Trustee and the Security Registrar shall be entitled to deal with the
Depositary for all purposes of the Indenture relating to such applicable global Note (including the payment of principal, premium, if any, and interest, and the giving of instructions or directions by or to the beneficial owners of such global Note)
as the sole Holder of such applicable global Note and shall have no obligations to the beneficial owners thereof. Nothing in the Indenture, the Notes or this certificate shall be construed to require the Company to register any Notes under the
Securities Act, unless otherwise expressly agreed by the Company, confirmed in writing to the Trustee, or to make any transfer of such Notes in violation of applicable law. The Company has entered into a registration rights agreement with the
initial purchasers of the Notes pursuant to which, among other things, the Notes may be exchanged for notes registered under the Securities Act (the “Exchange Notes”). The Exchange Notes shall be in substantially the form of Exhibit
A, but without the non-registration legend, the registration rights legend, the Certificate of Transfer and the provisions for Additional Interest. The Trustee, at the request of the Company, shall
authenticate and deliver Exchange Notes in exchange for an equal principal amount of Notes; 

  
 3 

	14.	 It is contemplated that beneficial interests in Notes owned by “qualified institutional buyers” (as
defined in Rule 144A under the Securities Act) (“QIBs”) or sold to QIBs in reliance upon Rule 144A under the Securities Act will be represented by one or more separate certificates in global form registered in the name of
Cede & Co., as registered owner and as nominee for DTC; beneficial interests in Notes sold to foreign purchasers pursuant to Regulation S under the Securities Act will be evidenced by one or more separate certificates in global form (each a
“Regulation S Global Certificate”) and will be registered in the name of Cede & Co., as registered owner and as nominee for DTC for the accounts of Euroclear and Clearstream Banking; 

 

	In	 connection with any transfer of Notes, or of any transfer of a beneficial interest in one global Note to
another global Note, as the case may be, the Trustee, the Security Registrar and the Company shall be under no duty to inquire into, may conclusively presume the correctness of, and shall be fully protected in relying upon the certificates and other
information (in the form attached hereto as Exhibit A for use in connection with the transfer of the Notes in certificated form, or Exhibit B, for use in connection with the transfer of beneficial interests in one certificate in global form to
another certificate in global form or to a Note in certificated form, or otherwise) received from the Holders and any transferees of any Notes, or from the transferors or transferees of any beneficial interest in a global Note transferred to another
global Note, as the case may be, regarding the validity, legality and due authorization of any such transfer, the eligibility of the transferee to receive such Note or such beneficial interest, as the case may be, and any other facts and
circumstances related to such transfer; 

  

	15.	 None of the Company, the Trustee or the Security Registrar shall have any liability for any acts or omissions
of the Depositary, for any Depositary records of beneficial interests, for any transactions between the Depositary or any participant member of the Depositary and/or beneficial owners, for any transfers of beneficial interests in the Notes, or in
respect of any transfers effected by the Depositary or by any participant member of the Depositary or any beneficial owner of any interest in any Notes held through any such participant member of the Depositary; 

 

	16.	 If the Company shall make any deposit of money and/or Eligible Obligations with respect to any Notes, or any
portion of the principal amount thereof, as contemplated by Section 801 of the Indenture, the Company shall not deliver an Officer’s Certificate described in clause (z) in the first paragraph of said Section 801 unless the
Company shall also deliver to the Trustee, together with such Officer’s Certificate, either: 

 (A) an instrument
wherein the Company, notwithstanding the satisfaction and discharge of its indebtedness in respect of such Notes, shall assume the obligation (which shall be absolute and unconditional) to irrevocably deposit with the Trustee or Paying Agent such
additional sums of money, if any, or additional Eligible Obligations (meeting the requirements of Section 801), if any, or any combination thereof, at such time or 

  
 4 

 
times, as shall be necessary, together with the money and/or Eligible Obligations theretofore so deposited, to pay when due the principal of and premium, if any, and interest due and to become
due on such Notes or portions thereof, all in accordance with and subject to the provisions of said Section 801; provided, however, that such instrument may state that the obligation of the Company to make additional deposits as aforesaid shall
be subject to the delivery to the Company by the Trustee of a notice asserting the deficiency accompanied by an opinion of an independent public accountant of nationally recognized standing, selected by the Trustee, showing the calculation thereof;
or 
 (B) an Opinion of Counsel to the effect that, as a result of a change in law occurring after the date of this certificate, the Holders
of such Notes, or portions of the principal amount thereof, will not recognize income, gain or loss for United States federal income tax purposes as a result of the satisfaction and discharge of the Company’s indebtedness in respect thereof and
will be subject to United States federal income tax on the same amounts, at the same times and in the same manner as if such satisfaction and discharge had not been effected; 
  

	17.	 The Eligible Obligations with respect to the Notes shall be Government Obligations; 

 

	18.	 The Notes shall have such other terms and provisions as are provided in the form thereof set forth in Exhibit A
hereto; 

  

	19.	 No Event of Default under the Indenture has occurred or is occurring; and to the knowledge of the undersigned,
(i) no Event of Default has occurred and is continuing and (ii) no event has occurred and is continuing which entitles the Secured Parties (as defined in the Deed of Trust) under the Deed of Trust, or any of them, to accelerate the
maturity of the indebtedness secured thereby; 

  

	20.	 Subject to Section 22 of the Deed of Trust, the aggregate principal amount of indebtedness issuable under
and secured by the Deed of Trust is unlimited, and the aggregate principal indebtedness now proposed to be issued under and secured by the Deed of Trust is $9,465,894,499, consisting of Indenture Notes Obligations (as defined in the Deed of Trust)
in the aggregate principal amount of $9,241,082,000 (including the $450,000,000 aggregate principal amount of Notes being issued on the date hereof) and other Additional Obligations (as defined in the Deed of Trust) in the aggregate principal amount
of $224,812,499; 

  

	21.	 The undersigned has read all of the covenants and conditions contained in the Indenture, and the definitions in
the Indenture relating thereto, relating to the issuance and authentication and delivery of the Notes and to the creation or existence of Secured Debt pursuant to Section 707(a) and Section 707(b) of the Indenture, and in respect of
compliance with which this certificate is made; 

  

	22.	 The statements contained in this certificate are based upon the familiarity of the undersigned with the
Indenture, the documents accompanying this certificate, and upon discussions by the undersigned with officers and employees of the Company familiar with the matters set forth herein; 

  
 5 

	23.	 In the opinion of the undersigned, he has made such examination or investigation as is necessary to enable him
to express an informed opinion as to whether or not such covenants and conditions have been complied with; and 

  

	24.	 In the opinion of the undersigned, such conditions and covenants, and all conditions precedent provided for in
the Indenture (including covenants compliance with which constitutes a condition precedent) relating to the authentication and delivery of the Notes as requested in the accompanying Company Order and to the creation or existence of Secured Debt
pursuant to Section 707(a) and Section 707(b) of the Indenture, have been complied with. 

  

	25.	 The exchange of copies of this certificate and of signature pages that are executed by manual signatures that
are scanned, photocopied or faxed or by other electronic signing created on an electronic platform (such as DocuSign) or by digital signing (such as Adobe Sign), in each case that is approved by the Trustee, shall constitute effective execution and
delivery of this certificate for all purposes. Signatures of the Company hereon that are executed by manual signature that are scanned, photocopied or faxed or by other electronic signing created on an electronic platform (such as DocuSign) or by
digital signing (such as Adobe Sign), in each case that is approved by the Trustee, shall be deemed to be the original signature of the Company for all purposes of this certificate and may be used in lieu of an original signature manually executed
in ink. 

 Anything in the Indenture or the Securities (including the Notes) to the contrary notwithstanding, for the
purposes of the transactions contemplated by the Indenture, the Notes and any document to be signed in connection with the Indenture or the Notes (other than the Notes themselves) (including amendments, supplements, waivers, consents and other
modifications, Officer’s Certificates, Company Orders and Opinions of Counsel and other issuance, authentication and delivery documents, including documents delivered in connection with the Deed of Trust) or the transactions contemplated hereby
may be signed by manual signatures that are scanned, photocopied or faxed or other electronic signatures created on an electronic platform (such as DocuSign) or by digital signature (such as Adobe Sign), in each case that is approved by the Trustee,
and contract formations on electronic platforms approved by the Trustee, and the keeping of records in electronic form, are hereby authorized, and each shall be of the same legal effect, validity or enforceability as a manually executed signature in
ink or the use of a paper-based recordkeeping system, as the case may be. 

  
 6 

 IN WITNESS WHEREOF, I have executed this Officer’s Certificate this 28th day of
September, 2020. 
  

	
	
	/s/ Kevin R. Fease
	Name: Kevin R. Fease
	Title: Vice President and Treasurer

  
 [Signature page to
Officer’s Certificate – August 2002 Indenture] 

 EXHIBIT A 

[FORM OF NOTE] 
 [UNLESS
THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION (“DTC”), TO ONCOR ELECTRIC DELIVERY COMPANY LLC OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE, OR PAYMENT,
AND ANY CERTIFICATE ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR IN SUCH OTHER NAME AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO CEDE & CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN
AUTHORIZED REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE, OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.] 

[non-registration legend] 

“THIS SECURITY HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”). THE HOLDER HEREOF, BY PURCHASING
THIS SECURITY, AGREES FOR THE BENEFIT OF ONCOR ELECTRIC DELIVERY COMPANY LLC (THE “COMPANY”) THAT THIS SECURITY MAY NOT BE RESOLD, PLEDGED OR OTHERWISE TRANSFERRED OTHER THAN (A) (1) TO THE COMPANY, (2) IN A TRANSACTION ENTITLED
TO AN EXEMPTION FROM REGISTRATION PROVIDED BY RULE 144 UNDER THE SECURITIES ACT, (3) SO LONG AS THIS SECURITY IS ELIGIBLE FOR RESALE PURSUANT TO RULE 144A UNDER THE SECURITIES ACT (“RULE 144A”), TO A PERSON WHOM THE SELLER REASONABLY
BELIEVES IS A “QUALIFIED INSTITUTIONAL BUYER” WITHIN THE MEANING OF RULE 144A PURCHASING FOR ITS OWN ACCOUNT OR FOR THE ACCOUNT OF A QUALIFIED INSTITUTIONAL BUYER TO WHOM NOTICE IS GIVEN THAT THE RESALE, PLEDGE OR OTHER TRANSFER IS BEING
MADE IN RELIANCE ON RULE 144A (AS INDICATED BY THE BOX CHECKED BY THE TRANSFEROR ON THE CERTIFICATE OF TRANSFER ON THE REVERSE OF THIS SECURITY), (4) IN AN OFFSHORE TRANSACTION IN ACCORDANCE WITH RULE 903 OR RULE 904 OF REGULATION S UNDER THE
SECURITIES ACT (AS INDICATED BY THE BOX CHECKED BY THE TRANSFEROR ON THE CERTIFICATE OF TRANSFER ON THE REVERSE OF THIS SECURITY), (5) IN ACCORDANCE WITH ANOTHER APPLICABLE EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT (AND
BASED UPON AN OPINION OF COUNSEL ACCEPTABLE TO THE COMPANY) OR (6) PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT AND (B) IN EACH CASE IN ACCORDANCE WITH ANY APPLICABLE SECURITIES LAWS OF ANY STATE OF THE UNITED
STATES OR IN ANY OTHER APPLICABLE JURISDICTION. THE HOLDER HEREOF, BY PURCHASING THIS SECURITY, REPRESENTS AND AGREES FOR THE BENEFIT OF THE COMPANY 

  
 A-1 

 
THAT IT IS (1) A QUALIFIED INSTITUTIONAL BUYER WITHIN THE MEANING OF RULE 144A OR (2) A NON-U.S. PERSON OUTSIDE THE UNITED STATES WITHIN THE
MEANING OF, OR AN ACCOUNT SATISFYING THE REQUIREMENTS OF PARAGRAPH (k)(2) OF RULE 902 UNDER, REGULATION S UNDER THE SECURITIES ACT.” 

[registration rights legend] 

The Holder of this Security, by acceptance hereof, will be deemed to have agreed to be bound by the provisions of the Registration Rights
Agreement dated September 28, 2020, among the Company and the initial purchasers of this Security. 

  
 B-2 

			
	NO.                    	  	CUSIP:            

 [144A Global Certificate: 68233J BY9] 

[Regulation S Global Certificate: U68281AW1] 

[Exchange Notes: 68233J BZ6] 

ONCOR ELECTRIC DELIVERY COMPANY LLC 

0.55% SENIOR SECURED NOTES DUE 2025 

ONCOR ELECTRIC DELIVERY COMPANY LLC, a limited liability company duly organized and existing under the laws of the State of Delaware (herein
referred to as the “Company”, which term includes any successor Person under the Indenture referred to below), for value received, hereby promises to pay to
                                         
                                         
                                         
                                         
                                     or registered assigns, the
principal sum of                      DOLLARS ($
                    ) on October 1, 2025, and to pay interest on said principal sum semi-annually in arrears on April 1 and
October 1 of each year commencing April 1, 2021 (each an “Interest Payment Date”) at the rate of 0.55% per annum until the principal hereof is paid or made available for payment. Interest on the Securities of this series will
accrue from and including September 28, 2020, to and excluding the first Interest Payment Date, and thereafter will accrue from and including the last Interest Payment Date to which interest has been paid or duly provided for. No interest will
accrue on the Securities with respect to the day on which the Securities mature. If the Company does not comply with certain of its obligations under the registration rights agreement dated September 28, 2020 between the Company and the parties
named therein (the “Registration Rights Agreement”), this Security shall, in accordance with Section 2(e) of the Registration Rights Agreement, bear additional interest (“Additional Interest”) in addition to the interest
otherwise provided for hereunder. For purposes of this Security, the term “interest” shall be deemed to include any such Additional Interest. In the event that any Interest Payment Date is not a Business Day, then payment of interest
payable on such date will be made on the next succeeding day which is a Business Day (and without any interest or other payment in respect of such delay) with the same force and effect as if made on the Interest Payment Date. The interest so
payable, and punctually paid or duly provided for, on any Interest Payment Date will, as provided in such Indenture, be paid to the Person in whose name this Security (or one or more Predecessor Securities) is registered at the close of business on
the 15th calendar day before such Interest Payment Date (each a “Regular Record Date”) immediately preceding such Interest Payment Date, except that interest payable at Maturity will be
payable to the Person to whom principal shall be paid. Any such interest not so punctually paid or duly provided for will forthwith cease to be payable to the Holder on such Regular Record Date and may either be paid to the Person in whose name this
Security (or one or more Predecessor Securities) is registered at the close of business on a Special Record Date for the payment of such Defaulted Interest to be fixed by the Trustee, notice whereof shall be given to Holders of Securities of this
series not less than 10 days prior to such Special Record Date, or be paid at any time in any other lawful manner not inconsistent with the requirements of any securities exchange on which the Securities of this series may be listed, and upon such
notice as may be required by such exchange, all as more fully provided in the Indenture referred to herein. 

  
 B-3 

 Payment of the principal of (and premium, if any) and interest at Maturity on this Security
shall be made upon presentation of this Security at the office or agency of the Company maintained for that purpose in The City of New York, in the State of New York, in such coin or currency of the United States of America as at the time of payment
is legal tender for payment of public and private debts; provided, however, that, at the option of the Company, interest on this Security (other than interest payable at Maturity) may be paid by check mailed to the address of the Person entitled
thereto, as such address shall appear on the Security Register, and provided, further, that if such Person is a securities depositary, such payment may be made by such other means in lieu of check as shall be agreed upon by the Company, the Trustee
and such Person. 
 All terms used in this Security which are defined in the Indenture shall have the meanings assigned to them in the
Indenture and in the Officer’s Certificate establishing the terms of the Securities of this series. 
 This Security is one of a duly
authorized issue of securities of the Company (herein called the “Securities”), issued and to be issued in one or more series under an Indenture (For Unsecured Debt Securities) dated as of August 1, 2002 (herein, together with any
amendments or supplements thereto, including Supplemental Indenture No. 1, dated as of May 15, 2008, called the “Indenture”, which term shall have the meaning assigned to it in such instrument), between the Company and The Bank
of New York Mellon Trust Company, N.A. (as successor to The Bank of New York Mellon, formerly The Bank of New York), as Trustee (herein called the “Trustee”, which term includes any successor trustee under the Indenture), and reference is
hereby made to the Indenture, Board Resolutions and Officer’s Certificate creating the series designated on the face hereof, for a statement of the respective rights, limitations of rights, duties and immunities thereunder of the Company, the
Trustee and the Holders of the Securities and of the terms upon which the Securities are, and are to be, authenticated and delivered. The acceptance of this Security shall be deemed to constitute the consent and agreement by the Holder thereof to
all of the terms and provisions of the Indenture. This Security is one of the series designated on the face hereof. 
 This Security is
subject to redemption at the election of the Company, in whole at any time or in part from time to time, at any time prior to September 1, 2025, at a redemption price as calculated by the Company equal to the greater of: 

•        100% of the principal amount of the Securities of this series being redeemed, or 

•        (i) the sum of the present values of the remaining scheduled payments of principal and
interest (including the portion of any such interest accrued to the redemption date) on the Securities of this series being redeemed that would be due if the Securities matured on September 1, 2025, discounted to the redemption date on a
semi-annual basis (assuming a 360-day year consisting of twelve 30-day months) at the Treasury Rate plus 10 basis points less (ii) the interest accrued to the
redemption date on the Securities of this series being redeemed, 

  
 B-4 

 plus, in each case, accrued interest on those Notes of this series to, but not including,
the redemption date of the Securities of this series being redeemed. 
 This Security is subject to redemption at the election of the
Company, in whole at any time or in part from time to time, at any time on or after September 1, 2025, at a redemption price equal to 100% of the principal amount of the Securities of this series being redeemed, plus accrued and unpaid interest
on those Securities of this series to, but not including, the redemption date. 
 “Treasury Rate” means, with respect to any
redemption date, the rate per annum equal to: (1) the weekly average yield to maturity representing the average of the daily yields appearing at 5:00 p.m., New York City time, on the relevant calculation date in the most recently published Data
Download Program designated “H.15” or any successor publication which is published weekly by the Board of Governors of the Federal Reserve System and which establishes yields on actively traded United States Treasury securities adjusted to
constant maturity under the caption “Treasury Constant Maturities,” for the maturity corresponding to the period from the redemption date of the Securities of this series to be redeemed to September 1, 2025 (rounded to the nearest
month) (the “Remaining Term”); provided that, if no maturity is within three months before or after the Remaining Term of the Securities of this series to be redeemed or more than one maturity is within three months before or after the
Remaining Term of the Securities of this series to be redeemed and no maturity exactly corresponds to the Remaining Term, the weekly average yield for (A) the published maturity closest to but shorter than the Remaining Term and (B) the
published maturity closest to but longer than the Remaining Term, both to be determined as described above, and the Treasury Rate will be interpolated or extrapolated from those yields on a straight line basis; or (2) if such release (or any
successor release) is not published during the week preceding the calculation date or does not contain such yields, the rate per annum equal to the semi-annual equivalent yield to maturity of the applicable Comparable Treasury Issue, calculated
using a price for the applicable Comparable Treasury Issue (expressed as a percentage of its principal amount) equal to the related Comparable Treasury Price for such redemption date. The Treasury Rate will be calculated by the Company on the third
business day preceding the redemption date. 
 “Comparable Treasury Issue” means the United States Treasury security selected by
the Reference Treasury Dealer selected by the Company as having a maturity comparable to the Remaining Term of the Securities of this series to be redeemed that would be utilized, at the time of selection and in accordance with customary financial
practice, in pricing new issues of corporate debt securities of comparable maturity to the Remaining Term. 
 “Comparable Treasury
Price” means, with respect to any redemption date, the Reference Treasury Dealer Quotation. 
 “Reference Treasury Dealer”
means any primary U.S. Government securities dealer in New York City appointed by the Company. 
 “Reference Treasury Dealer
Quotation” means, with respect to any redemption date, the average, as calculated by the Reference Treasury Dealer, of the bid and asked prices for the applicable Comparable Treasury Issue (expressed in each case as a percentage of its
principal amount) quoted in writing to the Company by such Reference Treasury Dealer at 3:30 p.m., New York City time, on the third business day preceding such redemption date. 

  
 B-5 

 Notice of redemption (other than at the option of the Holder) shall be given by mail to
Holders of Securities, not less than 15 days prior to the date fixed for redemption, all as provided in the Indenture. As provided in the Indenture, notice of redemption at the election of the Company as aforesaid may state that such redemption
shall be conditional upon the receipt by the applicable Paying Agent or Agents of money sufficient to pay the principal of and premium, if any, and interest, if any, on this Security on or prior to the date fixed for such redemption; a notice of
redemption so conditioned shall be of no force or effect if such money is not so received and, in such event, the Company shall not be required to redeem this Security. 

In the event of redemption of this Security in part only, a new Security or Securities of this series of like tenor representing the
unredeemed portion hereof shall be issued in the name of the Holder hereof upon the cancellation hereof. 
 The Indenture contains
provisions for defeasance at any time of the entire indebtedness of this Security upon compliance with certain conditions set forth in the Indenture. 

The obligations of the Company with respect to the Securities of this series are secured by a lien granted pursuant to the Deed of Trust,
Security Agreement and Fixture Filing, dated as of May 15, 2008, as amended, by the Company to and for the benefit of The Bank of New York Mellon Trust Company, N.A. (as successor to The Bank of New York Mellon, formerly The Bank of New York),
as collateral agent and trustee thereunder. 
 If an Event of Default with respect to Securities of this series shall occur and be
continuing, the principal of the Securities of this series may be declared due and payable in the manner and with the effect provided in the Indenture. 

The Indenture permits, with certain exceptions as therein provided, the amendment thereof and the modification of the rights and obligations
of the Company and the rights of the Holders of the Securities of each series to be affected under the Indenture at any time by the Company and the Trustee with the consent of the Holders of a majority in principal amount of the Securities at the
time Outstanding of all series to be affected. The Indenture also contains provisions permitting the Holders of specified percentages in principal amount of the Securities of each series at the time Outstanding, on behalf of the Holders of all
Securities of such series, to waive compliance by the Company with certain provisions of the Indenture and certain past defaults under the Indenture and their consequences. Any such consent or waiver by the Holder of this Security shall be
conclusive and binding upon such Holder and upon all future Holders of this Security and of any Security issued upon the registration of transfer hereof or in exchange herefor or in lieu hereof, whether or not notation of such consent or waiver is
made upon this Security. 
 As provided in and subject to the provisions of the Indenture, the Holder of this Security shall not have the
right to institute any proceeding with respect to the Indenture or for the appointment of a receiver or trustee or for any other remedy thereunder, unless such Holder shall have previously given the Trustee written notice of a continuing Event of
Default with respect to 

  
 B-6 

 
the Securities of this series, the Holders of a majority in aggregate principal amount of the Securities of all series at the time Outstanding in respect of which an Event of Default shall have
occurred and be continuing shall have made written request to the Trustee to institute proceedings in respect of such Event of Default as Trustee and offered the Trustee reasonable indemnity, and the Trustee shall not have received from the Holders
of a majority in aggregate principal amount of Securities of all series at the time Outstanding in respect of which an Event of Default shall have occurred and be continuing a direction inconsistent with such request, and shall have failed to
institute any such proceeding, for 60 days after receipt of such notice, request and offer of indemnity. The foregoing shall not apply to any suit instituted by the Holder of this Security for the enforcement of any payment of principal hereof or
any premium or interest hereon on or after the respective due dates expressed herein. 
 No reference herein to the Indenture and no
provision of this Security or of the Indenture shall alter or impair the obligation of the Company, which is absolute and unconditional, to pay the principal of and any premium and interest on this Security at the times, place and rate, and in the
coin or currency, herein prescribed. 
 The Securities of this series are issuable only in registered form without coupons in denominations
of $2,000 and integral multiples of $1,000 in excess thereof. As provided in the Indenture and subject to certain limitations therein and herein set forth, Securities of this series are exchangeable for a like aggregate principal amount of
Securities of this series and of like tenor and of authorized denominations, as requested by the Holder surrendering the same. 
 No service
charge shall be made for any such registration of transfer or exchange, but the Company may require payment of a sum sufficient to cover any tax or other governmental charge payable in connection therewith. 

The Company shall not be required to execute and the Security Registrar shall not be required to register the transfer of or exchange of
(a) Securities of this series during a period of 15 days immediately preceding the date notice is given identifying the serial numbers of the Securities of this series called for redemption or (b) any Security so selected for redemption in
whole or in part, except the unredeemed portion of any Security being redeemed in part. The Company shall not be required to make transfers or exchanges of the Securities of this series for a period of 15 days next preceding an Interest Payment
Date. 
 The Company, the Trustee and any agent of the Company or the Trustee may treat the Person in whose name this Security is registered
as the absolute owner hereof for all purposes, whether or not this Security be overdue, and neither the Company, the Trustee nor any such agent shall be affected by notice to the contrary. 

Each Holder shall be deemed to understand that the offer and sale of the Securities of this series have not been registered under the
Securities Act and that the Securities of this series may not be resold, pledged or otherwise transferred other than as permitted in the following sentence. Each Holder shall be deemed to agree, on its own behalf and on behalf of any accounts for
which it is acting as hereinafter stated, that if such Holder resells, pledges or otherwise transfers any Securities of this series, such Holder will do so only (A) to the Company, (B) in a transaction entitled to an exemption from
registration provided by Rule 144 under the Securities Act, (C) so 

  
 B-7 

 
long as Securities of this series are eligible for resale pursuant to Rule 144A under the Securities Act, to a Person whom such Holder reasonably believes is a “qualified institutional
buyer” within the meaning of Rule 144A that purchases for its own account or for the account of a qualified institutional buyer to whom notice is given that the resale, pledge or transfer is being made in reliance on Rule 144A, (D) in an
offshore transaction in accordance with Rule 903 or Rule 904 of Regulation S under the Securities Act, (E) in accordance with another applicable exemption from the registration requirements of the Securities Act (and based upon an opinion of
counsel acceptable to the Company), or (F) pursuant to an effective registration statement under the Securities Act, and each Holder is further deemed to agree to provide to any Person purchasing any of the Securities of this series from it a
notice advising such purchaser that resales of the Securities of this series are restricted as stated herein. 
 Each Holder shall be deemed
to understand that, on any proposed resale of any Securities of this series pursuant to the exemption from registration under Rule 144 under the Securities Act, any Holder making any such proposed resale will be required to furnish to the Trustee
and the Company such certifications, legal opinions and other information as the Trustee and the Company may reasonably require to confirm that the proposed sale complies with the foregoing restrictions. 

This Security shall be governed by and construed in accordance with the laws of the State of New York (including without limitation Section 5-1401 of the New York General Obligations Law or any successor to such statute), except to the extent that the Trust Indenture Act shall be applicable and except to the extent that the laws of the
State of Texas shall mandatorily govern. 
 As provided in the Indenture, no recourse shall be had for the payment of the principal of or
premium, if any, or interest on any Securities, or any part thereof, or for any claim based thereon or otherwise in respect thereof, or of the indebtedness represented thereby, or upon any obligation, covenant or agreement under the Indenture,
against, and no personal liability whatsoever shall attach to, or be incurred by, any incorporator, stockholder, member, officer or director, as such, past, present or future of the Company or of any predecessor or successor corporation (either
directly or through the Company or a predecessor or successor corporation), whether by virtue of any constitutional provision, statute or rule of law, or by the enforcement of any assessment or penalty or otherwise; it being expressly agreed and
understood that the Indenture and all the Securities are solely corporate obligations and that any such personal liability is hereby expressly waived and released as a condition of, and as part of the consideration for, the execution of the
Indenture and the issuance of the Securities. 
 Unless the certificate of authentication hereon has been executed by the Trustee referred
to herein by manual signature, this Security shall not be entitled to any benefit under the Indenture or be valid or obligatory for any purpose. 

  
 B-8 

 IN WITNESS WHEREOF, the Company has caused this instrument to be duly executed. 

 

			
	ONCOR ELECTRIC DELIVERY COMPANY LLC
		
	By:	 	 

  
 B-9 

 [FORM OF CERTIFICATE OF AUTHENTICATION] 

CERTIFICATE OF AUTHENTICATION 

This is one of the Securities of the series designated therein referred to in the within-mentioned Indenture. 

Dated: 
  

			
	THE BANK OF NEW YORK MELLON TRUST COMPANY, N.A., as Trustee
		
	By:	 	 
		 	Authorized Signatory

  
 B-10 

 SCHEDULE OF INCREASES OR DECREASES IN GLOBAL NOTE 

The following increases or decreases in this Global Note have been made: 

 

									
	Date	 	Amount of decrease in
Principal Amount of
this Global Note	 	Amount of increase in
Principal Amount of this
Global Note	 	Principal Amount of this
Global Note following
such decrease or increase	 	Signature of authorized
signatory of Corporate
Trustee or Securities
Custodian
	  	 	  	 	  	 	  	 	  
	  	 	  	 	  	 	  	 	  
	  	 	  	 	  	 	  	 	  
	  	 	  	 	  	 	  	 	  
	  	 	  	 	  	 	  	 	  
	  	 	  	 	  	 	  	 	  
	  	 	  	 	  	 	  	 	  
	  	 	  	 	  	 	  	 	  
	  	 	  	 	  	 	  	 	  

  
 B-11 

 EXHIBIT B 

[FORM OF CERTIFICATE OF TRANSFER] 

CERTIFICATE OF TRANSFER 
 0.55%
SENIOR SECURED NOTES DUE 2025 
 FOR VALUE RECEIVED, the undersigned sells, assigns and transfers unto 

PLEASE INSERT SOCIAL SECURITY 
 OR OTHER IDENTIFYING NUMBER OF
ASSIGNEE 
 Name and address of assignee must be printed or typewritten. 

the within Security of the Company and does hereby irrevocably constitute and appoint
                                         
        to transfer the said Security on the books of the within-named Company, with full power of substitution in the premises. 

The undersigned certifies that said Security is being resold, pledged or otherwise transferred as follows: (check one) 

 

	☐	 to the Company; 

  

	☐	 to a Person whom the undersigned reasonably believes is a “qualified institutional buyer” within the
meaning of Rule 144A under the Securities Act of 1933, as amended (the “Securities Act”) purchasing for its own account or for the account of a qualified institutional buyer to whom notice is given that the resale, pledge or other transfer
is being made in reliance on Rule 144A; 

  

	☐	 in an offshore transaction in accordance with Rule 903 or Rule 904 of Regulation S under the Securities Act;

  

	☐	 as otherwise permitted by the non-registration legend appearing on this
Security; or 

  

	☐	 as otherwise agreed by the Company, confirmed in writing to the Trustee, as follows: [describe]

 Notice: The signature to this assignment must correspond with the name as written upon the face of the within instrument in every
particular without alteration or enlargement, or any change whatsoever. 
 Dated:
                     

Signature:                        
     
 SIGNATURE GUARANTEE 

Signatures must be guaranteed by an “eligible guarantor institution” meeting the requirements of the Trustee and the Security Registrar, which
requirements include membership or participation in the Security Transfer Agent Medallion Program (“STAMP”) or such other “signature guarantee program” as may be determined by the Trustee and the Security Registrar in addition
to, or in substitution for, STAMP, all in accordance with the Securities Exchange Act of 1934, as amended. 

  
 B-1

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