Document:

Exhibit 10.3

 

Execution Version

 

PARENT GUARANTY AND
COLLATERAL AGREEMENT

 

This PARENT GUARANTY
AND COLLATERAL AGREEMENT (this “Agreement”), dated as of October 23, 2019, by and among the Persons listed
on the signature pages hereof as “Grantors” and those additional entities that hereafter become parties hereto by executing
the form of Joinder attached hereto as Annex 1 (each, a “Grantor” and collectively, the “Grantors”),
and GUGGENHEIM CREDIT SERVICES, LLC, a Delaware limited liability company (“Guggenheim”), in its capacity
as collateral agent for the Secured Parties (in such capacity, together with its successors and permitted assigns in such capacity,
“Collateral Agent”).

 

W I T N E S S E
T H:

 

WHEREAS, pursuant
to that certain Credit Agreement, dated as of October 23, 2019 (as amended, restated, supplemented, or otherwise modified from
time to time, the “Credit Agreement”), by and among Franchise Group Newco S, LLC, a Delaware limited liability
company (“Borrower”), Franchise Group Intermediate S, LLC, a Delaware limited liability company (“Holdings”),
each of Borrower’s Subsidiaries from time to time party thereto, each other Affiliate of Borrower from time to time party
thereto (including the Grantors), each of the lenders from time to time party thereto (each of such lenders, together with its
successors and permitted assigns, is referred to hereinafter as a “Lender”), Guggenheim, in its capacity as
administrative agent for each Lender (in such capacity, together with its successors and permitted assigns in such capacity, “Administrative
Agent”), and Collateral Agent, the Lenders have agreed to make certain financial accommodations available to Borrower
from time to time pursuant to the terms and conditions thereof;

 

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

 

WHEREAS, in
order to induce Agents and the Lenders to enter into the Credit Agreement and the other Loan Documents and to extend the Loans
thereunder and to induce Agents and the Lenders to make financial accommodations to Borrower as provided for in the Credit Agreement
and the other Loan Documents, (a) each Grantor has agreed to guaranty the Guaranteed Obligations, and (b) each Grantor has agreed
to grant to Collateral Agent, for the benefit of the Secured Parties, a First Priority Lien on all of their respective assets,
except for the Capital Stock (and related assets) of certain of the Subsidiaries of the Grantors; and

 

WHEREAS, each
Grantor is an Affiliate of Borrower and, as such, will benefit by virtue of the financial accommodations extended to Borrower by
Agents and the Lenders.

 

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

 

1.                  
Definitions; Construction.

 

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

     

     

    

(i)                  
“Acquisition Documents” means the Closing Date Acquisition Agreement and the other agreements, instruments
and documents evidencing, or entered into in connection with, the Closing Date Acquisition and any other acquisition by a Grantor
consummated after the Closing Date.

 

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

 

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

 

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

 

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

 

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

 

(vii)                   
“Collateral” has the meaning specified therefor in Section 3 hereof.

 

(viii)                   
“Collateral Agent” has the meaning specified therefor in the preamble to this Agreement.

 

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

 

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

    	 	2	 

     

    

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

 

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

 

(xiii)                   
“Excluded Assets” has the meaning specified therefor in Section 3 hereof.

 

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

 

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

 

(xvi)                   
“Guaranteed Obligations” has the meaning specified therefor in Section 2(a) hereof

 

(xvii)                  
“Guarantor” means each Grantor.

 

(xviii)                  
“Guaranty” means the guaranty of each Guarantor set forth in Section 2 hereof.

 

(xix)                   
“Intellectual Property” means any and all Patents, Copyrights, Trademarks, trade secrets, know-how, inventions
(whether or not patentable), algorithms, software programs (including source code and object code), processes, product designs,
industrial designs, blueprints, drawings, data, customer lists, URLs and domain names, specifications, documentations, reports,
catalogs, literature, and any other forms of technology or proprietary information of any kind, including all rights therein and
all applications for registration or registrations thereof.

 

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

    	 	3	 

     

    

(xxi)                   
“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.

 

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

 

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

 

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

 

(xxv)                  
“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.

 

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

 

(xxvii)                  
“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 this Agreement; provided, that no Person shall be a Pledged Company
if any of the Capital Stock of such Person owned by the Grantors constitutes Excluded Assets.

 

(xxviii)                  
“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 no Excluded Assets shall constitute Pledged Interests.

    	 	4	 

     

    

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

 

(xxx)                  
“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.

 

(xxxi)                  
“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.

 

(xxxii)                  
“Proceeds” has the meaning specified therefor in Section 3(r) hereof.

 

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

 

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

 

(xxxv)                  
“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.

 

(xxxvi)                   
“Secured Obligations” means each and all of the following: (A) all Obligations (including any expenses,
fees or interest that accrue after the commencement of an Insolvency Proceeding, regardless of whether allowed or allowable in
whole or in part as a claim in any such Insolvency Proceeding), (B) all Guaranteed Obligations (as defined in the Credit Agreement),
and (C) all Guaranteed Obligations.

 

(xxxvii)                   
“Security Interest” has the meaning specified therefor in Section 3 hereof.

 

(xxxviii)                   
“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.

 

(xxxix)                   
“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.

 

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

 

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

    	 	5	 

     

    

(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.                  
Guaranty.

 

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

 

(b)               
Contribution by Guarantors. Each Guarantor acknowledges and accepts that, subject to the terms and conditions thereof,
the contribution provisions in Section 7.02 of the Credit Agreement are applicable to such Guarantor.

 

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

 

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

 

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

 

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

 

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

    	 	6	 

     

    

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

 

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

 

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

    	 	7	 

     

    

(e)               
Waivers by Guarantors. Each Guarantor hereby waives, for the benefit of Beneficiaries: (i) any right to require
any Beneficiary, as a condition of payment or performance by such Guarantor, to (A) proceed against Borrower, any other guarantor
(including any other Guarantor, Holdings or any Subsidiary Guarantor) of the Guaranteed Obligations, or any other Person, (B) proceed
against or exhaust any security held from Borrower, any such other guarantor, or any other Person, (C) proceed against or
have resort to any balance of any Deposit Account or credit on the books of any Beneficiary in favor of Borrower or any other Person,
or (D) pursue any other remedy in the power of any Beneficiary whatsoever, (ii) any defense arising by reason of the
incapacity, lack of authority, or any disability or other defense of Borrower, any other Loan Party or any other Guarantor including
any defense based on or arising out of the lack of validity or the unenforceability of the Guaranteed Obligations or any agreement
or instrument relating thereto or by reason of the cessation of the liability of Borrower, any other Loan Party or any other Guarantor
from any cause other than payment in full of the Guaranteed Obligations, (iii) any defense based upon any statute or rule
of law which provides that the obligation of a surety must be neither larger in amount nor in other respects more burdensome than
that of the principal, (iv) any defense based upon any Beneficiary’s errors or omissions in the administration of the
Guaranteed Obligations, except behavior which amounts to bad faith, (v) (A) any principles or provisions of law, statutory
or otherwise, which are or might be in conflict with the terms hereof and any legal or equitable discharge of such Guarantor’s
obligations hereunder, (B) the benefit of any statute of limitations affecting such Guarantor’s liability hereunder
or the enforcement hereof, (C) any rights to set-offs, recoupments, and counterclaims, and (D) promptness, diligence,
and any requirement that any Beneficiary protect, secure, perfect, or insure any security interest or lien or any property subject
thereto, (vi) notices, demands, presentments, protests, notices of protest, notices of dishonor, and notices of any action
or inaction, including acceptance hereof, notices of default hereunder, or any agreement or instrument related thereto, notices
of any renewal, extension, or modification of the Guaranteed Obligations or any agreement related thereto, notices of any extension
of credit to Borrower, and notices of any of the matters referred to in Section 2(d) and any right to consent to any thereof,
and (vii) any defenses or benefits that may be derived from or afforded by law which limit the liability of or exonerate guarantors
or sureties or which may conflict with the terms hereof.

 

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

    	 	8	 

     

    

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

 

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

 

(i)                
Authority of Guarantors or Borrower. It is not necessary for any Beneficiary to inquire into the capacity or powers
of any Guarantor or Borrower or any other Loan Party or the officers, directors, or any agents acting or purporting to act on behalf
of any of them.

 

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

    	 	9	 

     

    

(k)               
Bankruptcy, etc.

 

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

 

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

 

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

 

3.                  
Grant of Security. Each Grantor hereby unconditionally grants, collaterally assigns, and pledges to Collateral Agent,
for the benefit of each of the Secured Parties, to secure the Secured Obligations (whether now existing or hereafter arising),
a continuing security interest (hereinafter referred to as the “Security Interest”) in all of such Grantor’s
right, title, and interest in and to the following, whether now owned or hereafter acquired or arising and wherever located (the
“Collateral”):

 

(a)               
all of such Grantor’s Accounts;

 

(b)               
all of such Grantor’s Books;

 

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

 

(d)               
all of such Grantor’s Commercial Tort Claims listed on Schedule 1 and for which notice is required pursuant
to Section 7(e) of this Agreement;

    	 	10	 

     

    

(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;

 

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

 

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

 

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

 

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

 

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

    	 	11	 

     

    

Notwithstanding anything
contained in this Agreement to the contrary, the term “Collateral” shall not include: (i) any rights or interest in
any Real Estate Asset that is not a Material Real Estate Asset, (ii) any property or assets with respect to which the granting
of security interests in such assets would (1) be prohibited by applicable law, rule or regulation (other than to the extent that
any such law, rule or regulation would be rendered ineffective pursuant to Sections 9-406, 9-407, 9-408 or 9-409 of the Code (or
any successor provision or provisions) of any applicable jurisdiction or any other applicable law (including the Bankruptcy Code)
or principles of equity), (2) be prohibited under the terms of any contractual obligation binding on the applicable Grantor at
the time the applicable property or asset was acquired provided that such prohibition was not entered into in contemplation
of such acquisition, or (3) require the consent, approval, license or authorization of any Person (including any Governmental Authority)
(other than a Grantor), in each case, other than receivables and Proceeds of any of the foregoing the assignment of which is expressly
deemed effective under the Code or other applicable law notwithstanding such law, rule, regulation, term, prohibition, condition
or requirement; provided that, upon the ineffectiveness, lapse or termination of any such law, rule, regulation, term, prohibition,
condition or requirement the Collateral shall include, and such Person shall be deemed to have granted a security interest in,
all such rights and interests as if such law, rule, regulation, term, prohibition, condition or requirement had never been in effect;
provided, further, that the exclusions referred to in this clause (ii) shall not include any Proceeds of any such property
and assets except to the extent such Proceeds otherwise constitute Excluded Assets (provided, that the foregoing exclusions
of clauses (i) and (ii) shall in no way be construed to limit, impair, or otherwise affect any of Collateral Agent’s or any
other Secured Party’s continuing security interests in and liens upon any rights or interests of any Grantor in or to (1)
monies due or to become due, or any receivables, payment intangibles or proceeds arising, under or in connection with any Real
Estate Asset or any other described property or asset, or (2) any proceeds from the sale, license, lease, or other disposition
of any such Real Estate Asset or any such other described property or asset, in each case, other than to the extent such monies,
receivables, payment intangibles or proceeds otherwise constitute Excluded Assets), (iii) motor vehicles and other goods subject
to certificates of title, (iv) any United States intent-to-use trademark applications to the extent that, and solely during the
period in which, the grant of a security interest therein would impair the validity or enforceability of such intent-to-use trademark
applications under applicable federal law; provided, that upon submission and acceptance by the PTO of an amendment to allege
use pursuant to 15 U.S.C. Section 1060(a) (or any successor provision), such intent-to-use trademark application shall be considered
Collateral, (v) those assets as to which Borrower, Collateral Agent and Required Lenders reasonably agree in writing that the cost
of obtaining such a security interest are excessive in relation to the benefit to the Secured Parties of the security to be afforded
thereby, (vi) any Margin Stock, (vii) any lease, Capital Lease, license, contract, permit, Instrument, Investment Property, franchise
agreement or other agreement to which a Grantor is a party, any property governed by any such lease, any property subject to a
purchase money security interest or capital lease obligation, any similar arrangements, and any rights or interests of a Grantor
under any Capital Lease to which it is a party, in each case, to the extent, but only to the extent, that a grant of a security
interest therein in favor of Collateral Agent would, under the terms of such lease, Capital Lease, license, contract, permit, Instrument,
Investment Property, franchise agreement, agreement, purchase money arrangement or similar arrangement, be prohibited by, result
in a breach of the terms or a condition of, constitute a default or forfeiture under, or invalidate, such lease, Capital Lease,
license, contract, permit, Instrument, Investment Property, franchise agreement, agreement, purchase money arrangement or similar
arrangement, or create a right of termination in favor of any party thereto (other than a Grantor or a Loan Party), or require
a consent of any party thereto (other than a Grantor or a Loan Party and other than any such consent which has been obtained (it
being understood and agreed that no Grantor or Loan Party shall be required to seek any such consent)), in each case, solely to
the extent such prohibition, breach, default, forfeiture, invalidation, right of termination or requirement of consent (as applicable)
(1) was not created in contemplation of this Agreement or the other Loan Documents or (2) would not be rendered ineffective pursuant
to Sections 9-406, 9-407, 9-408 or 9-409 of the Code (or any successor provision or provisions) of any applicable jurisdiction
or any other applicable law (including the Bankruptcy Code) or principles of equity; provided that the exclusions referred
to in this clause (vii) shall not include (y) any receivables, payment intangibles and proceeds or any monies due or to become
due in respect of any of the foregoing and (z) any proceeds from the sale, license, lease, or other disposition of any of the foregoing,
in each case, except to the extent such receivables, payment intangibles, proceeds or monies otherwise constitute Excluded Assets;
provided further that immediately upon the ineffectiveness, lapse or termination of any such law, rule, regulation, term,
prohibition, restriction or condition, the Collateral shall include, and such Person shall be deemed to have granted a security
interest in, all such rights and interests as if such law, rule, regulation, term, prohibition, restriction or condition had never
been in effect, (viii) Excluded Accounts, (ix) Capital Stock in any Person, other than any wholly-owned Subsidiary of a Grantor,
to the extent a security interest therein is not permitted by the terms of such Person’s organizational documents or joint
venture documents (it being understood that no Capital Stock constitutes an Excluded Asset under this clause (ix) as of the Closing
Date) (in each case, as in effect on the date such Capital Stock was acquired), solely to the extent that such restriction was
not created or entered into in contemplation of the acquisition of such Capital Stock; provided, that the income stream,
receivables, and proceeds of such Capital Stock shall be included as Collateral (except to the extent otherwise constituting Excluded
Assets); provided further that the exclusion in this clause (ix) shall in no way be construed to (1) apply to the extent
that any described prohibition is ineffective under Section 9-406, 9-407, 9-408, or 9-409 of the Code or other applicable law,
or (2) limit, impair, or otherwise affect any of Collateral Agent’s continuing security interests in and liens upon any rights
or interests of any Grantor in or to (x) monies due or to become due under or in connection with such asset, or (y) any proceeds
from the sale, license, lease, or other dispositions of any such asset, in each case, except to the extent such monies or proceeds
otherwise constitute Excluded Assets; (x) any Letter of Credit Rights having an aggregate value or face amount of $250,000 or less
(except to the extent a security interest therein can be perfected by the filing of Uniform Commercial Code financing statements);
(xi) assets located outside the United States to the extent a security interest in such assets could reasonably be expected to
result in material adverse tax consequences to the Grantors; (xii) any commercial tort claims with an amount claimed that is not
in excess of $250,000 in the aggregate for all such commercial tort claims; and (xiii) Capital Stock of any indirect Subsidiary
of any Grantor to the extent (I) such Subsidiary is not a Grantor or a Loan Party and (II) the terms of any secured credit facility
to which such Subsidiary is a party prohibit Collateral Agent from obtaining a Lien on such Capital Stock (collectively, the “Excluded
Assets”); provided that (A) the Proceeds of any Excluded Assets shall not constitute Excluded Assets (unless such
Proceeds otherwise qualify as Excluded Assets) and (B) the Grantors shall from time to time at the reasonable request of Collateral
Agent, give written notice to Collateral Agent identifying in reasonable detail the Excluded Assets and shall provide to Collateral
Agent such other information regarding the Excluded Assets as Collateral Agent may reasonably request.

    	 	12	 

     

    

4.                  
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.

 

5.                  
Grantors Remain Liable. Anything herein to the contrary notwithstanding, (a) each of the Grantors shall remain liable
under the contracts and agreements included in the Collateral, including the Pledged Operating Agreements and the Pledged Partnership
Agreements, to perform all of the duties and obligations thereunder to the same extent as if this Agreement had not been executed,
(b) the exercise by Collateral Agent or any other Secured Party of any of the rights hereunder shall not release any Grantor from
any of its duties or obligations under such contracts and agreements included in the Collateral, and (c) none of the Secured Parties
shall have any obligation or liability under such contracts and agreements included in the Collateral by reason of this Agreement,
nor shall any of the Secured Parties be obligated to perform any of the obligations or duties of any Grantors thereunder or to
take any action to collect or enforce any claim for payment assigned hereunder. Until an Event of Default shall occur and be continuing,
except as otherwise provided in this Agreement, the Credit Agreement, or any other Loan Document, Grantors shall have the right
to possession and enjoyment of the Collateral for the purpose of conducting the ordinary course of their respective businesses,
subject to and upon the terms hereof and of the Credit Agreement and the other Loan Documents. Without limiting the generality
of the foregoing, it is the intention of the parties hereto that record and beneficial ownership of the Pledged Interests, including
all voting, consensual, dividend, and distribution rights, shall remain in the applicable Grantor until (i) the occurrence and
continuance of an Event of Default, and (ii) Collateral Agent has notified the applicable Grantor of Collateral Agent’s election
to exercise such rights with respect to the Pledged Interests pursuant to Section 16.

    	 	13	 

     

    

6.                  
Representations and Warranties. In order to induce Collateral Agent to enter into this Agreement for the benefit
of the Secured Parties, each Grantor makes the following representations and warranties to Collateral Agent and the other Secured
Parties which shall be true, correct, and complete, in all material respects (except that such materiality qualifier shall not
be applicable to any representations and warranties that already are qualified or modified by materiality in the text thereof),
as of the Closing Date, and shall be true, correct, and complete, in all material respects (except that such materiality qualifier
shall not be applicable to any representations and warranties that already are qualified or modified by materiality in the text
thereof), as of the date of the making of each Loan (or other extension of credit) made thereafter, as though made on and as of
the date of such Loan (or other extension of credit) (except to the extent that such representations and warranties relate solely
to an earlier date, in which case such representations and warranties shall be true and correct in all material respects (except
that such materiality qualifier shall not be applicable to any representations and warranties that already are qualified or modified
by materiality in the text thereof) as of such earlier date) and such representations and warranties shall survive the execution
and delivery of this Agreement:

 

(a)               
The name (within the meaning of Section 9-503 of the Code) and jurisdiction of organization of each Grantor is set forth
on Schedule 7 (as such Schedule may be updated from time to time to reflect changes permitted under the Loan Documents).
Each Grantor (i) is duly organized, validly existing, and in good standing under the laws of its jurisdiction of organization as
identified on Schedule 7, (ii) has all requisite power and authority to own and operate its properties, to carry on its business
as now conducted and as proposed to be conducted, to enter into the Loan Documents to which it is a party and to carry out the
transactions contemplated thereby, and (iii) is qualified to do business and in good standing in every jurisdiction where its assets
are located and wherever necessary to carry out its business and operations, except, in the case of this clause (iii), in jurisdictions
where the failure to be so qualified or in good standing could not reasonably be expected to have a Material Adverse Effect.

 

(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 Claims that exceed $250,000 in amount in the aggregate for
all such Commercial Tort Claims, except as set forth on Schedule 1.

 

(e)               
Set forth on Schedule 9 is a listing as of the Closing Date of all of Grantors’ Deposit Accounts and Securities
Accounts, including, with respect to each bank or securities intermediary (i) the name of such Person, and (ii) the account numbers
of the Deposit Accounts or Securities Accounts maintained with such Person.

    	 	14	 

     

    

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

 

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

 

(h)               
(i) (A) each Grantor owns or holds licenses in all Intellectual Property that is necessary in or material to the conduct
of its business, and (B) all employees and contractors of each Grantor who were involved in the creation or development of any
Intellectual Property for such Grantor that is necessary in or material to the business of such Grantor have signed agreements
containing assignment of Intellectual Property rights to such Grantor and obligations of confidentiality;

 

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

 

(iii)                  
to each Grantor’s knowledge after reasonable inquiry, all registered Copyrights, registered Trademarks, and issued
Patents that are owned by such Grantor and necessary in or material to the conduct of its business are valid, subsisting and enforceable
and in compliance with all legal requirements, filings, and payments and other actions that are required to maintain such Intellectual
Property in full force and effect, and

 

(iv)                   
each Grantor has taken reasonable steps to maintain the confidentiality of and otherwise protect and enforce its rights
in all trade secrets owned by such Grantor that are necessary in or material to the conduct of the business of such Grantor.

 

(i)                
This Agreement creates a valid security interest in the Collateral of each Grantor, to the extent a security interest therein
can be created under the Code, securing the payment of the Secured Obligations. Except to the extent a security interest in the
Collateral cannot be perfected by the filing of a financing statement under the Code, all filings to perfect such security interest
have been duly taken or will have been taken upon the filing of financing statements listing each applicable Grantor, as a debtor,
and Collateral Agent, as secured party, in the jurisdictions listed next to such Grantor’s name on Schedule 10. Upon
the making of such filings, Collateral Agent shall have a First Priority perfected security interest in the Collateral of each
Grantor to the extent such security interest can be perfected by the filing of a financing statement under the Code. Upon filing
of any Copyright Security Agreement with the United States Copyright Office, filing of any Patent Security Agreement and any Trademark
Security Agreement with the PTO, and the filing of appropriate financing statements in the jurisdictions listed on Schedule
10, 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.

    	 	15	 

     

    

(j)                
(i) Except for the Security Interest created hereby, each Grantor is and will at all times be the sole holder of record
and the legal and beneficial owner, free and clear of all Liens other than Permitted Liens, of the Pledged Interests indicated
on Schedule 5 as being owned by such Grantor and, when acquired by such Grantor, any Pledged Interests acquired after the
Closing Date, (ii) all of the Pledged Interests are duly authorized, validly issued, fully paid and non-assessable and the Pledged
Interests constitute or will constitute the percentage of the issued and outstanding Capital Stock of the Pledged Companies of
such Grantor identified on Schedule 5 as supplemented or modified by any Pledged Interests Addendum or any Joinder to this
Agreement, (iii) such Grantor has the right and requisite authority to pledge, the Investment Property pledged by such Grantor
to Collateral Agent as provided herein, (iv) all actions necessary to perfect and establish a First Priority Lien, or to the extent
otherwise required by this Agreement and the other Loan Documents, to otherwise protect, Collateral Agent’s Liens in the
Investment Property, and the proceeds thereof, have been duly taken, upon (A) the execution and delivery of this Agreement, (B)
the taking of possession by Collateral Agent (or its agent or designee) of any certificates representing the Pledged Interests,
to the extent such Pledged Interests are represented by certificates, together with undated powers (or other documents of transfer
acceptable to Collateral Agent) endorsed in blank by the applicable Grantor, (C) the filing of financing statements in the applicable
jurisdiction set forth on Schedule 10 for such Grantor with respect to the Pledged Interests of such Grantor that are not
represented by certificates, and (D) with respect to any Securities Accounts (other than Excluded Accounts), the delivery of Control
Agreements with respect thereto, and (v) each Grantor has delivered to and deposited with Collateral Agent all certificates representing
the Pledged Interests owned by such Grantor to the extent such Pledged Interests are represented by certificates, and undated powers
(or other documents of transfer acceptable to Collateral Agent) endorsed in blank with respect to such certificates. None of the
Pledged Interests owned or held by such Grantor has been issued or transferred in violation of any securities registration, securities
disclosure, or similar laws of any jurisdiction to which such issuance or transfer may be subject.

 

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

 

(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.

    	 	16	 

     

    

(m)             
The execution, delivery, and performance of this Agreement have been duly authorized by all necessary action on the part
of each Grantor. This Agreement has been duly executed and delivered by each Grantor and is the legally valid and binding obligation
of each Grantor, enforceable against each Grantor in accordance with its respective terms, except as may be limited by bankruptcy,
insolvency, reorganization, moratorium, or similar laws relating to or limiting creditors’ rights generally or by equitable
principles relating to enforceability.

 

(n)               
The execution, delivery, and performance by each Grantor of this Agreement and the consummation of the transactions contemplated
hereby do not and will not (i) violate any provision of any law or any governmental rule, or regulation applicable to such Grantor,
or any order, judgment, or decree of any court or other agency of government binding on such Grantor, (ii) conflict with, result
in a breach of, or constitute (with due notice or lapse of time or both) a default under any Contractual Obligation of such Grantor,
(iii) result in or require the creation or imposition of any Lien upon any of the properties or assets of such Grantor (other than
any Liens created under any of the Loan Documents in favor of Collateral Agent, on behalf of Secured Parties), (iv) result in any
default, non-compliance, suspension, revocation, impairment, forfeiture, or non-renewal of any permit, license, authorization,
or approval applicable to its operations or any of its properties, (v) require any approval of stockholders, members, or partners
or any approval or consent of any Person under any Contractual Obligation of such Grantor, except for such approvals or consents
which will be obtained on or before the Closing Date and disclosed in writing to Lenders, or (vi) violate any provision of any
of the Organizational Documents of such Grantor, except, in the case of the preceding clauses (i), (ii), (iv) and (v), for any
violation, conflict, breach, default, creation, imposition, non-compliance, suspension, revocation, impairment, forfeiture, non-renewal,
or requirement, in each case, that could not reasonably be expected, either individually or in the aggregate, to have a Material
Adverse Effect.

 

(o)               
No Grantor (y) is in violation of any applicable laws that, individually or in the aggregate, could reasonably be expected
to have a Material Adverse Effect or (z) is subject to, or in default with respect to, any final judgments, writs, injunctions,
decrees, rules, or regulations of any court or any federal, state, municipal, or other governmental department, commission, board,
bureau, agency, or instrumentality, domestic or foreign, that, individually or in the aggregate, could reasonably be expected to
have a Material Adverse Effect.

 

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

 

(q)               
No Grantor is in violation of any applicable Sanctions. No Grantor nor any director, officer, employee, agent, or Affiliate
of such Grantor (i) is a Sanctioned Person or a Sanctioned Entity, (ii) has any assets located in Sanctioned Entities, or (iii)
derives revenues from investments in, or transactions with, Sanctioned Persons or Sanctioned Entities in violation of applicable
Requirements of Law. Each of the Grantors, and each director, officer, employee and agent (when acting on behalf of a Grantor,
within the scope of the agent’s designated duties), and Affiliate of each such Grantor, is in compliance with the Anti-corruption
Laws in all material respects.

    	 	17	 

     

    

(r)                
No Grantor is engaged principally, or as one of its important activities, in the business of extending credit for the purpose
of purchasing or carrying any Margin Stock.

 

(s)                
No Grantor is subject to regulation under the Public Utility Holding Company Act of 2005, the Federal Power Act, or the
Investment Company Act of 1940 or under any other federal or state statute or regulation which may limit its ability to incur Indebtedness
or which may otherwise render all or any portion of the Secured Obligations unenforceable. No Grantor is a “registered investment
company” or a company “controlled” by a “registered investment company” or a “principal underwriter”
of a “registered investment company” as such terms are defined in the Investment Company Act of 1940.

 

(t)                
No representation or warranty of any Grantor contained in any Loan Document or in any other documents, certificates, or
written statements furnished to Lenders by or on behalf of such Grantor for use in connection with the transactions contemplated
hereby, when taken as a whole, contains any untrue statement of a material fact or omits to state a material fact (known to any
Grantor, in the case of any document not furnished by any of the Grantors) necessary in order to make the statements contained
herein or therein not misleading in light of the circumstances in which the same were made.

 

7.                  
Covenants. Each Grantor, jointly and severally, covenants and agrees with Collateral Agent that from and after the
date of this Agreement and until the date of termination of this Agreement in accordance with Section 23:

 

(a)               
Possession of Collateral. In the event that any Collateral, including Proceeds, is evidenced by or consists of Drafts,
Documents, Certificated Securities, Promissory Notes, or tangible Chattel Paper having an aggregate value or face amount of $500,000
or more for all such Drafts, Documents, Certificated Securities, Promissory Notes, or tangible Chattel Paper, the Grantors shall
promptly (and in any event within 30 days (or such longer period as agreed to in writing by Collateral Agent) after acquisition
thereof), notify Collateral Agent thereof, and if and to the extent that perfection or priority of Collateral Agent’s Security
Interest is dependent on or enhanced by possession, the applicable Grantor, promptly (and in any event within five Business Days
(or such longer period as agreed to in writing by Collateral Agent)) after request by Collateral Agent, shall execute such other
documents and instruments as shall be requested by Collateral Agent or, if applicable, endorse and deliver physical possession
of such Drafts, Documents, Certificated Securities, Promissory Notes, or tangible Chattel Paper to Collateral Agent, together with
such undated powers (or other relevant document of transfer acceptable to Collateral Agent) endorsed in blank as shall be requested
by Collateral Agent, and shall do such other acts or things, reasonably deemed necessary or desirable by Collateral Agent to protect
Collateral Agent’s Security Interest therein, to the extent otherwise required by this Agreement and the other Loan Documents.

    	 	18	 

     

    

(b)               
Chattel Paper.

 

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

 

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

 

(c)               
Control Agreements.

 

(i)                  
Subject to Section 6.17 of the Credit Agreement, including the applicable time periods set forth therein, each Grantor
shall obtain an authenticated Control Agreement, from each bank maintaining a Deposit Account or Securities Account for such Grantor
(other than with respect to any Excluded Accounts).

 

(d)               
Letter-of-Credit Rights. If the Grantors (or any of them) are or become the beneficiary of letters of credit having
a face amount or value of $250,000 or more in the aggregate, then the applicable Grantor or Grantors shall promptly (and in any
event within 30 days (or such longer period as agreed to in writing by Collateral Agent) after becoming a beneficiary), notify
Collateral Agent thereof and, promptly (and in any event within 30 days (or such longer period as agreed to in writing by Collateral
Agent)) after request by Collateral Agent, enter into a tri-party agreement with Collateral Agent and the issuer or confirming
bank with respect to letter-of-credit rights assigning such letter-of-credit rights to Collateral Agent and directing all payments
thereunder to the Deposit Account specified by Collateral Agent, all in form and substance reasonably satisfactory to Collateral
Agent.

 

(e)               
Commercial Tort Claims. If the Grantors (or any of them) obtain any Commercial Tort Claims having a value, or involving
an asserted claim, in the amount of $250,000 or more in the aggregate for all such Commercial Tort Claims, then the applicable
Grantor or Grantors shall promptly (and in any event within 30 days (or such longer period as agreed to in writing by Collateral
Agent) of obtaining such Commercial Tort Claims), notify Collateral Agent upon incurring or otherwise obtaining such Commercial
Tort Claims and, promptly (and in any event within five Business Days (or such longer period as agreed to in writing by Collateral
Agent)) after request by Collateral Agent, amend Schedule 1 to describe such Commercial Tort Claims in a manner that reasonably
identifies such Commercial Tort Claims and which is otherwise reasonably satisfactory to Collateral Agent, and hereby authorizes
the filing of additional financing statements or amendments to existing financing statements describing such Commercial Tort Claims,
and agrees to do such other acts or things reasonably deemed necessary or desirable by Collateral Agent to give Collateral Agent
a First Priority, perfected security interest in any such Commercial Tort Claims.

 

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

    	 	19	 

     

    

(g)               
Intellectual Property.

 

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

 

(ii)                  
Each Grantor shall have the duty, with respect to Intellectual Property that is necessary in or material to the conduct
of such Grantor’s business, to protect and diligently enforce and defend at such Grantor’s expense its Intellectual
Property, including (A) to diligently enforce and defend, including promptly suing for infringement, misappropriation, or dilution
and to recover any and all damages for such infringement, misappropriation, or dilution, and filing for opposition, interference,
and cancellation against conflicting Intellectual Property rights of any Person, (B) to prosecute diligently any trademark application
or service mark application that is part of the Trademarks pending as of the date hereof or hereafter until the termination of
this Agreement, (C) to prosecute diligently any patent application that is part of the Patents pending as of the date hereof or
hereafter until the termination of this Agreement, (D) to take all reasonable and necessary action to preserve and maintain all
of such Grantor’s Trademarks, Patents, Copyrights, Intellectual Property Licenses, and its rights therein, including paying
all maintenance fees and filing of applications for renewal, affidavits of use, and affidavits of noncontestability, and (E) to
require all employees, consultants, and contractors of each Grantor who were involved in the creation or development of such Intellectual
Property to sign agreements containing assignment of Intellectual Property rights and obligations of confidentiality. Each Grantor
further agrees not to abandon any Intellectual Property or Intellectual Property License that is necessary in or material to the
conduct of such Grantor’s business. Each Grantor hereby agrees to take the steps described in this Section 7(g)(ii)
with respect to all new or acquired Intellectual Property to which it is now or later becomes entitled that is necessary in or
material to the conduct of such Grantor’s business;

 

(iii)                  
Grantors acknowledge and agree that the Secured Parties shall have no duties with respect to any Intellectual Property or
Intellectual Property Licenses of any Grantor. Without limiting the generality of this Section 7(g)(iii), Grantors acknowledge
and agree that no Secured Party shall be under any obligation to take any steps necessary to preserve rights in the Collateral
consisting of Intellectual Property or Intellectual Property Licenses against any other Person, but any Secured Party may do so
at its option from and after the occurrence and during the continuance of an Event of Default, and all expenses incurred in connection
therewith (including reasonable fees and expenses of attorneys and other professionals) shall be for the sole account of Borrower
and shall be chargeable to the Loan Account;

 

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

    	 	20	 

     

    

(v)                  
Anything to the contrary in this Agreement notwithstanding, in no event shall any Grantor, either itself or through any
agent, employee, licensee, or designee, file an application for the registration of any Copyright with the United States Copyright
Office or any similar office or agency in another country without giving Collateral Agent written notice thereof at least 30 days
prior to such filing and complying with Section 7(g)(i) and, if available, each such application for registration shall
be filed on an “expedited basis”. Upon receipt from the United States Copyright Office of notice of registration of
any Copyright, each Grantor shall promptly (but in no event later than 30 days (or such longer period as agreed to in writing by
Collateral Agent) following such receipt) notify (but without duplication of any notice required by Section 7(g)(v)) Collateral
Agent of such registration by delivering, or causing to be delivered, to Collateral Agent, documentation sufficient for Collateral
Agent to perfect Collateral Agent’s Liens on such Copyright. If any Grantor acquires from any Person any Copyright registered
with the United States Copyright Office or an application to register any Copyright with the United States Copyright Office, such
Grantor shall promptly (but in no event later than 30 days (or such longer period as agreed to in writing by Collateral Agent)
following such acquisition) notify Collateral Agent of such acquisition and deliver, or cause to be delivered, to Collateral Agent,
documentation sufficient for Collateral Agent to perfect Collateral Agent’s Liens on such Copyright. In the case of such
Copyright registrations or applications therefor which were acquired by any Grantor, each such Grantor shall promptly (but in no
event later than 30 days (or such longer period as agreed to in writing by Collateral Agent) following such acquisition) file the
necessary documents with the appropriate Governmental Authority identifying the applicable Grantor as the owner (or as a co-owner
thereof, if such is the case) of such Copyrights;

 

(vi)                   
Each Grantor shall take reasonable steps to maintain the confidentiality of, and otherwise protect and enforce its rights
in, the Intellectual Property that is necessary in or material to the conduct of such Grantor’s business, including, as applicable
(A) protecting the secrecy and confidentiality of its confidential information and trade secrets by having and enforcing a reasonable
policy requiring all current employees, consultants, licensees, vendors and contractors with access to such information to execute
appropriate confidentiality agreements, (B) taking actions reasonably necessary to ensure that no trade secret falls into the public
domain, and (C) protecting the secrecy and confidentiality of the source code of all software programs and applications of which
it is the owner or licensee by having and enforcing a reasonable policy requiring any licensees (or sublicensees) of such source
code to enter into license agreements with commercially reasonable use and non-disclosure restrictions; and

 

(vii)                   
No Grantor shall enter into any Intellectual Property License that the Grantor reasonably believes would constitute Material
Intellectual Property unless such Grantor has used commercially reasonable efforts to permit the assignment of or grant of a security
interest in such Intellectual Property License (and all rights of Grantor thereunder) to Collateral Agent (and any permitted transferees
of Collateral Agent).

    	 	21	 

     

    

(h)               
Investment Property.

 

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

 

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

 

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

 

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

 

(v)                  
Each Grantor agrees that it will cooperate with Collateral Agent in obtaining all necessary approvals and making all necessary
filings under federal, state, local, or foreign law to effect the perfection of the Security Interest in the Investment Property
or to effect any sale or transfer thereof; provided that 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, in each case, shall only be required to the extent that the Collateral Coverage Test (tested
on the basis of the applicable Grantor and its Subsidiaries, rather than the Borrower and its Subsidiaries) is not satisfied with
respect to such jurisdiction;

 

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

 

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

    	 	22	 

     

    

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

 

(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, to the extent such sale, assignment, disposal or grant is prohibited
by the Loan Documents, or (ii) create or permit to exist any Lien upon or with respect to any of the Collateral of any Grantor,
except for Permitted Liens. The inclusion of Proceeds in the Collateral shall not be deemed to constitute Collateral Agent’s
consent to any sale or other disposition of any of the Collateral.

 

(k)               
Name, Etc. No Grantor will change its name, chief executive office, jurisdiction of organization or organizational
identity without providing Collateral Agent written notice thereof promptly (and in any event within 30 days (or such longer period
as agreed to in writing by Collateral Agent) after such change).

 

(l)                
To the extent required by Section 6.14 of the Credit Agreement, each Grantor will at all times preserve and keep in full
force and effect its existence, and all rights, Governmental Authorizations, qualifications, franchises, licenses, and permits
material to its business and to the conduct of its business in each material jurisdiction in which its business is conducted; provided,
that no Grantor shall be required to preserve any such existence, rights, Governmental Authorizations, qualifications, franchise,
licenses, and permits if such Person’s Board (or similar governing body) shall determine that the preservation thereof is
no longer desirable in the conduct of the business of such Person, and that the loss thereof is not disadvantageous in any material
respect to such Person or to Lenders.

 

(m)             
Each Grantor will comply with the requirements of all applicable laws, rules, regulations, and orders of any Governmental
Authority, non-compliance with which could reasonably be expected to have, individually or in the aggregate, a Material Adverse
Effect, including, without limitation, Anti-corruption Laws, the PATRIOT Act, and OFAC Sanctions Programs.

    	 	23	 

     

    

(n)               
At any time or from time to time upon the request of Collateral Agent, each Grantor will, at its expense, promptly execute,
acknowledge, and deliver such further documents and do such other acts and things as Collateral Agent may reasonably request in
order to effect fully the purposes of the Loan Documents, including providing Lenders with any information reasonably requested
pursuant to Section 10.22 of the Credit Agreement. In furtherance and not in limitation of the foregoing, each Grantor shall take
such actions as Collateral Agent may reasonably request from time to time to ensure that, subject in each case to Section 6.14
of the Credit Agreement, the Guaranteed Obligations are guaranteed by the Guarantors and are secured by substantially all of the
assets of the Grantors (other than Excluded Assets) and all of the outstanding Capital Stock of Grantor’s Subsidiaries (other
than Excluded Assets) to the extent required pursuant to Section 6.14 of the Credit Agreement.

 

(o)               
Each year, at the time of delivery of annual financial statements by Borrower with respect to the preceding Fiscal Year
pursuant to Section 5.01(c) of the Credit Agreement, each Grantor shall deliver to Collateral Agent an officer’s certificate
either confirming that there has been no change in such information since the date of the Perfection Certificate delivered on the
Closing Date or the date of the most recent certificate delivered pursuant to this Section 7(o) and/or identifying such
changes.

 

(p)               
Each Grantor will timely file all income tax returns and all other material tax returns required to be filed by such Grantor
and timely pay all income Taxes and all other material Taxes imposed upon it or any of its properties or assets, or in respect
of any of its income or businesses; provided, that no such Tax need be paid if it is being contested in good faith by appropriate
proceedings promptly instituted and diligently conducted, so long as (i) adequate reserve or other appropriate provision, as shall
be required in conformity with GAAP, shall have been made therefor and (ii) in the case of a Tax which has or may become a Lien
against any of the Collateral, such contest proceedings conclusively operate to stay imposition of any penalty, fine, or Lien resulting
from the non-payment thereof. No Grantor will file or consent to the filing of any consolidated income tax return with any Person
(other than Liberty or any of its Subsidiaries).

 

8.                  
Relation to Other Security Documents. The provisions of this Agreement shall be read and construed with the other
Loan Documents referred to below in the manner so indicated.

 

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

 

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

 

9.                  
Further Assurances.

    	 	24	 

     

    

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

 

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

 

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

 

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

 

10.              
Collateral Agent’s Right to Perform Contracts, Exercise Rights, etc. Upon the occurrence and during the continuance
of an Event of Default, Collateral Agent (or its designee) (a) may, to the extent permitted by law, proceed to perform any and
all of the obligations of any Grantor contained in any contract, lease, or other agreement constituting Collateral and exercise
any and all rights of any Grantor therein contained as fully as such Grantor itself could, (b) shall, to the extent permitted by
law, have the right (subject to Section 17(b)) to use any Grantor’s rights under Intellectual Property Licenses in
connection with the enforcement of Collateral Agent’s rights hereunder, including the right to prepare for sale and sell
any and all Inventory and Equipment now or hereafter owned by any Grantor and now or hereafter covered by such licenses, and (c)
shall have the right to request that any Capital Stock that are pledged hereunder be registered in the name of Collateral Agent
or any of its nominees.

 

11.              
Collateral Agent Appointed Attorney-in-Fact. Each Grantor hereby irrevocably appoints Collateral Agent its attorney-in-fact,
with full authority in the place and stead of such Grantor and in the name of such Grantor or otherwise, at such time as an Event
of Default has occurred and is continuing under the Credit Agreement, to take any action and to execute any instrument which Collateral
Agent may reasonably deem necessary or advisable to accomplish the purposes of this Agreement, including:

 

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

 

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

    	 	25	 

     

    

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

 

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

 

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

 

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

 

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

 

12.              
Collateral Agent May Perform. If any Grantor fails to perform any agreement contained herein, Collateral Agent may
itself perform, or cause performance of, such agreement, and the reasonable expenses of Collateral Agent incurred in connection
therewith shall be payable, jointly and severally, by Grantors in accordance with the terms of the Credit Agreement.

 

13.              
Collateral Agent’s Duties. The powers conferred on Collateral Agent hereunder are solely to protect Collateral
Agent’s interest in the Collateral, for the benefit of the Secured Parties, and shall not impose any duty upon Collateral
Agent to exercise any such powers. Except for the safe custody of any Collateral in its actual possession and the accounting for
moneys actually received by it hereunder, Collateral Agent shall have no duty as to any Collateral or as to the taking of any necessary
steps to preserve rights against prior parties or any other rights pertaining to any Collateral. Collateral Agent shall be deemed
to have exercised reasonable care in the custody and preservation of any Collateral in its actual possession if such Collateral
is accorded treatment substantially equal to that which Collateral Agent accords its own property.

 

14.              
Collection of Accounts, General Intangibles and Negotiable Collateral. At any time upon the occurrence and during
the continuance of an Event of Default, Collateral Agent or Collateral Agent’s designee may (a) make direct verification
from Account Debtors with respect to any or all Accounts that are part of the Collateral, (b) notify Account Debtors of any Grantor
that the Accounts, General Intangibles, Chattel Paper or Negotiable Collateral of such Grantor have been assigned to Collateral
Agent, for the benefit of the Secured Parties, or that Collateral Agent has a security interest therein, or (c) collect the Accounts,
General Intangibles and Negotiable Collateral of any Grantor directly, and any reasonable collection costs and expenses shall constitute
part of such Grantor’s Secured Obligations under the Loan Documents.

 

15.              
Disposition of Pledged Interests by Collateral Agent. None of the Pledged Interests existing as of the date of this
Agreement are, and other than to the extent hereafter disclosed, none of the Pledged Interests hereafter acquired on the date of
acquisition thereof will be, registered or qualified under the various federal or state securities laws of the United States and
to the extent not so registered or qualified, disposition thereof after an Event of Default has occurred and is continuing may
be restricted to one or more private (instead of public) sales in view of the lack of such registration. Each Grantor understands
that in connection with such disposition, Collateral Agent may approach only a restricted number of potential purchasers and further
understands that a sale under such circumstances may yield a lower price for the Pledged Interests than if the Pledged Interests
were registered and qualified pursuant to federal and state securities laws and sold on the open market. Each Grantor, therefore,
agrees that: (a) if Collateral Agent shall, pursuant to the terms of this Agreement, sell or cause the Pledged Interests or any
portion thereof to be sold at a private sale, Collateral Agent shall have the right to rely upon the advice and opinion of any
nationally recognized brokerage or investment firm (but shall not be obligated to seek such advice and the failure to do so shall
not be considered in determining the commercial reasonableness of such action) as to the best manner in which to offer the Pledged
Interest or any portion thereof for sale and as to the best price reasonably obtainable at the private sale thereof, and (b) such
reliance shall be conclusive evidence that Collateral Agent has handled the disposition in a commercially reasonable manner.

    	 	26	 

     

    

16.              
Voting and Other Rights in Respect of Pledged Interests.

 

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

 

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

 

17.              
Remedies.

 

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

    	 	27	 

     

    

(b)               
Collateral Agent is hereby granted a license or other right to use, upon the occurrence and during the continuance of an
Event of Default, without liability for royalties or any other charge, each Grantor’s Intellectual Property, including but
not limited to, any labels, Patents, Trademarks, trade names, URLs, domain names, industrial designs, Copyrights, and advertising
matter, whether owned by any Grantor or with respect to which any Grantor has rights under license, sublicense, or other agreements
(including any Intellectual Property License), as it pertains to the Collateral, in preparing for sale, advertising for sale and
selling any Collateral, and each Grantor’s rights under all licenses and all franchise agreements shall inure to the benefit
of Collateral Agent.

 

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

 

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

 

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

    	 	28	 

     

    

18.              
Remedies Cumulative. Each right, power, and remedy of Collateral Agent or any Lender, as provided for in this Agreement
or the other Loan Documents now or hereafter existing at law or in equity or by statute or otherwise shall be cumulative and concurrent
and shall be in addition to every other right, power, or remedy provided for in this Agreement or the other Loan Documents now
or hereafter existing at law or in equity or by statute or otherwise, and the exercise or beginning of the exercise by Collateral
Agent, any Lender, of any one or more of such rights, powers, or remedies shall not preclude the simultaneous or later exercise
by Collateral Agent, such Lender of any or all such other rights, powers, or remedies.

 

19.              
Marshaling. Collateral Agent shall not be required to marshal any present or future collateral security (including
but not limited to the Collateral) for, or other assurances of payment of, the Secured Obligations or any of them or to resort
to such collateral security or other assurances of payment in any particular order, and all of its rights and remedies hereunder
and in respect of such collateral security and other assurances of payment shall be cumulative and in addition to all other rights
and remedies, however existing or arising. To the extent that it lawfully may, each Grantor hereby agrees that it will not invoke
any law relating to the marshaling of collateral which might cause delay in or impede the enforcement of Collateral Agent’s
rights and remedies under this Agreement or under any other instrument creating or evidencing any of the Secured Obligations or
under which any of the Secured Obligations is outstanding or by which any of the Secured Obligations is secured or payment thereof
is otherwise assured, and, to the extent that it lawfully may, each Grantor hereby irrevocably waives the benefits of all such
laws.

 

20.              
Indemnity. EACH GRANTOR AGREES TO DEFEND (SUBJECT TO INDEMNITEES’ SELECTION OF COUNSEL), INDEMNIFY, PAY, AND
HOLD HARMLESS EACH INDEMNITEE FROM AND AGAINST ANY AND ALL INDEMNIFIED LIABILITIES ARISING OUT OF OR RESULTING FROM THIS AGREEMENT
(INCLUDING ENFORCEMENT OF THIS AGREEMENT), IN ALL CASES, WHETHER OR NOT CAUSED BY OR ARISING, IN WHOLE OR IN PART, OUT OF THE COMPARATIVE,
CONTRIBUTORY, OR SOLE NEGLIGENCE OF SUCH INDEMNITEE; PROVIDED, THAT NO GRANTOR SHALL HAVE ANY OBLIGATION TO ANY INDEMNITEE
HEREUNDER WITH RESPECT TO ANY INDEMNIFIED LIABILITIES (I) TO THE EXTENT SUCH INDEMNIFIED LIABILITIES ARISE FROM THE BAD FAITH,
GROSS NEGLIGENCE OR WILLFUL MISCONDUCT, AS DETERMINED BY A COURT OF COMPETENT JURISDICTION IN A FINAL, NON-APPEALABLE ORDER OR
JUDGMENT, OF THAT INDEMNITEE OR ANY OF ITS OFFICERS, PARTNERS, DIRECTORS, TRUSTEES, EMPLOYEES, OR AGENTS OR (II) TO THE EXTENT
SUCH INDEMNIFIED LIABILITIES ARISE FROM A CLAIM, ACTION, LITIGATION, INVESTIGATION OR OTHER PROCEEDING THAT DOES NOT ARISE FROM
ANY ACT OR OMISSION BY ANY GRANTOR OR ANY OFFICER, PARTNER, DIRECTOR, TRUSTEE, EMPLOYEE OR AGENT OF ANY GRANTOR AND THAT IS BROUGHT
BY ANY INDEMNITEE AGAINST ANOTHER INDEMNITEE (AND EACH INDEMNITEE, BY ACCEPTING THE BENEFITS HEREOF, AGREES TO PROMPTLY REFUND
OR RETURN ANY INDEMNITY RECEIVED HEREUNDER TO THE EXTENT IT IS LATER DETERMINED BY A FINAL, NON-APPEALABLE ORDER OR JUDGMENT OF
A COURT OF COMPETENT JURISDICTION THAT SUCH INDEMNITEE IS NOT ENTITLED THERETO). TO THE EXTENT THAT THE UNDERTAKINGS TO DEFEND,
INDEMNIFY, PAY, AND HOLD HARMLESS SET FORTH IN THIS SECTION 20 MAY BE UNENFORCEABLE IN WHOLE OR IN PART BECAUSE THEY ARE
VIOLATIVE OF ANY LAW OR PUBLIC POLICY, THE APPLICABLE GRANTOR SHALL CONTRIBUTE THE MAXIMUM PORTION THAT IT IS PERMITTED TO PAY
AND SATISFY UNDER APPLICABLE LAW TO THE PAYMENT AND SATISFACTION OF ALL SUCH INDEMNIFIED LIABILITIES.

    	 	29	 

     

    

21.              
Merger, Amendments; Etc. THIS AGREEMENT, TOGETHER WITH THE OTHER LOAN DOCUMENTS, REPRESENTS THE FINAL AGREEMENT BETWEEN
THE PARTIES AND MAY NOT BE CONTRADICTED BY EVIDENCE OF PRIOR, CONTEMPORANEOUS OR ORAL AGREEMENTS OF THE PARTIES. THERE ARE NO UNWRITTEN
AGREEMENTS BETWEEN THE PARTIES. No waiver of any provision of this Agreement, and no consent to any departure by any Grantor herefrom,
shall in any event be effective unless the same shall be in writing and signed by Collateral Agent, and then such waiver or consent
shall be effective only in the specific instance and for the specific purpose for which given. No amendment of any provision of
this Agreement shall be effective unless the same shall be in writing and signed by Collateral Agent and each Grantor to which
such amendment applies.

 

22.              
Addresses for Notices. All notices and other communications provided for hereunder shall be given in the form and
manner and delivered to Collateral Agent at its address specified in the Credit Agreement, and to any of the Grantors at the notice
address specified for Borrower in the Credit Agreement, or as to any party, at such other address as shall be designated by such
party in a written notice to the other party.

 

23.              
Continuing Security Interest: Assignments under Credit Agreement.

 

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

    	 	30	 

     

    

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

 

24.              
Survival. All representations and warranties made by the Grantors in this Agreement and in the certificates or other
instruments delivered in connection with or pursuant to this Agreement shall be considered to have been relied upon by the other
parties hereto and shall survive the execution and delivery of this Agreement and the making of any loans, regardless of any investigation
made by any such other party or on its behalf and notwithstanding that Collateral Agent or any Lender may have had notice or knowledge
of any Default or Event of Default or incorrect representation or warranty at the time any credit is extended under the Credit
Agreement, and shall continue in full force and effect as long as the principal of or any accrued interest on any loan or any fee
or any other amount payable under the Credit Agreement is outstanding and unpaid and so long as the Commitments have not expired
or terminated.

 

25.              
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.

    	 	31	 

     

    

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

 

(c)               
EACH OF THE PARTIES HERETO HEREBY AGREES TO WAIVE ITS RESPECTIVE RIGHTS TO A JURY TRIAL OF ANY CLAIM OR CAUSE OF ACTION
BASED UPON OR ARISING HEREUNDER OR ANY DEALINGS BETWEEN THEM RELATING TO THE SUBJECT MATTER OF THIS LOAN TRANSACTION OR THE LENDER/BORROWER
RELATIONSHIP THAT IS BEING ESTABLISHED. THE SCOPE OF THIS WAIVER IS INTENDED TO BE ALL ENCOMPASSING OF ANY AND ALL DISPUTES THAT
MAY BE FILED IN ANY COURT AND THAT RELATE TO THE SUBJECT MATTER OF THIS TRANSACTION, INCLUDING CONTRACT CLAIMS, TORT CLAIMS, BREACH
OF DUTY CLAIMS AND ALL OTHER COMMON LAW AND STATUTORY CLAIMS. EACH PARTY HERETO ACKNOWLEDGES THAT THIS WAIVER IS A MATERIAL INDUCEMENT
TO ENTER INTO A BUSINESS RELATIONSHIP, THAT EACH HAS ALREADY RELIED ON THIS WAIVER IN ENTERING INTO THIS AGREEMENT, AND THAT EACH
WILL CONTINUE TO RELY ON THIS WAIVER IN ITS RELATED FUTURE DEALINGS. EACH PARTY HERETO FURTHER WARRANTS AND REPRESENTS THAT IT
HAS REVIEWED THIS WAIVER WITH ITS LEGAL COUNSEL AND THAT IT KNOWINGLY AND VOLUNTARILY WAIVES ITS JURY TRIAL RIGHTS FOLLOWING CONSULTATION
WITH LEGAL COUNSEL. THIS WAIVER IS IRREVOCABLE, MEANING THAT IT MAY NOT BE MODIFIED EITHER ORALLY OR IN WRITING (OTHER THAN BY
A MUTUAL WRITTEN WAIVER SPECIFICALLY REFERRING TO THIS SECTION 25 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.

 

26.              
New Subsidiaries. Pursuant to Section 6.14 of the Credit Agreement, certain Subsidiaries (whether by acquisition
or creation) of any Grantor are required to enter into this Agreement by executing and delivering in favor of Collateral Agent
a Joinder to this Agreement in substantially the form of Annex 1. Upon the execution and delivery of Annex 1 by any
such new Subsidiary, such Subsidiary shall become a Guarantor and/or Grantor hereunder with the same force and effect as if originally
named as a Guarantor and/or Grantor herein. The execution and delivery of any instrument adding an additional Guarantor or Grantor
as a party to this Agreement shall not require the consent of any Guarantor or Grantor hereunder. The rights and obligations of
each Guarantor and Grantor hereunder shall remain in full force and effect notwithstanding the addition of any new Guarantor or
Grantor hereunder.

 

27.              
Collateral Agent. Each reference herein to any right granted to, benefit conferred upon or power exercisable by the
“Collateral Agent” shall be a reference to Collateral Agent, for the benefit of each Secured Party.

    	 	32	 

     

    

28.              
Miscellaneous.

 

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

 

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

 

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

 

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

 

29.              
Taxes.All payments made by each Guarantor hereunder shall be subject to Section 2.19 of the Credit Agreement,
and such provisions are incorporated herein by this reference, mutatis mutandis.

 

[Signature pages follow]

 

    	 	33	 

     

    

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.

 

	“Guarantors” and “Grantors”	 	 	 
	FRANCHISE GROUP NEW HOLDCO, LLC, a Delaware limited liability company	 	FRANCHISE GROUP INTERMEDIATE L, LLC, a Delaware limited liability company
	 	 	 	 	 
	By: 	/s/ Michael S. Piper	 	By: 	/s/ Michael S. Piper
	Name: 	Michael S. Piper	 	Name: 	Michael S. Piper
	Title: 	Authorized Signatory	 	Title: 	Authorized Signatory
	 	 	 	 	 
	 	 	 	 	 
	FRANCHISE GROUP INTERMEDIATE HOLDCO, LLC, a Delaware limited liability company	 	 	 
	 	 	 	 	 
	By: 	/s/ Michael S. Piper	 	 	 
	Name: 	Michael S. Piper	 	 	 
	Title: 	Authorized Signatory	 	 	 

 

 

 

 

 

    
	[SIGNATURE PAGE TO PARENT GUARANTY AND COLLATERAL AGREEMENT]

     

    

	“Collateral Agent”	 
	GUGGENHEIM CREDIT SERVICES, LLC	 
	 	 	 
	 	 	 
	By: 	/s/ John Mulreaney	 
	Name:	John Mulreaney	 
	 	Its Authorized Signatory 	 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

[SIGNATURE
PAGE TO PARENT GUARANTY AND COLLATERAL AGREEMENT]Exhibit 10.4

 

 

SUBSCRIPTION AGREEMENT 

 

This SUBSCRIPTION
AGREEMENT (this “Agreement”) is made as of October 23, 2019, by and between Franchise Group, Inc., a Delaware
corporation (the “Company”), and Stefac LP, a Delaware limited partnership (the “Subscriber”),
that is subscribing hereby to purchase shares of Common Stock, par value $0.01 per share, of the Company (“Common Stock”).

 

WHEREAS, the
Company has entered into that certain Equity and Asset Purchase Agreement, dated as of August 27, 2019, by and among Sears Hometown
and Outlet Stores, Inc., a Delaware corporation (“Seller”), Franchise Group Newco S, LLC, a Delaware limited
liability company and indirect subsidiary of the Company (“Purchaser”), and, solely for purposes of Section
10.17 thereof, the Company (as such agreement may be amended, restated or otherwise modified from time to time, the “Purchase
Agreement”), pursuant to which, among other things, subject to the terms and conditions set forth in the Purchase Agreement,
Purchaser will acquire the businesses of Seller’s Sears Outlet segment and Buddy’s Home Furnishings Stores (the “Transaction”);
and

 

WHEREAS, in
connection with the Transaction, subject to the terms and conditions set forth in this Agreement, the Company and the Subscriber
desire to enter into this Agreement pursuant to which the Subscriber will purchase from the Company, and the Company will issue
to the Subscriber, the Subscription Shares (as defined below). 

 

NOW, THEREFORE,
in consideration of the premises and of the mutual representations, warranties, covenants and obligations hereinafter set forth
and such other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto
hereby agree as follows:

 

1. Purchase and Sale of Common Stock.
Subject to the terms and conditions set forth in this Agreement, contemporaneously with the consummation of the Transaction, the
Subscriber shall purchase, and the Company shall issue and sell to the Subscriber, 1,333,333.33 shares of Common Stock (the “Subscription
Shares”), at a purchase price of $12.00 per share, for an aggregate purchase price of $16,000,000 in cash (such amount,
the “Purchase Price”). The issuance by the Company of the Subscription Shares and the purchase by the Subscriber
of the Subscription Shares in exchange for the payment of the Purchase Price as described in the foregoing provisions of this Section
1 are hereby collectively referred to herein as the “Subscription”.

 

2. Closing.

 

		(a)	The closing of the purchase and sale of the Subscription Shares (the “Closing”)
shall take place at the offices of Willkie Farr & Gallagher LLP, 787 Seventh Avenue, New York, NY 10019, on the same day as
(and contemporaneously with) the closing of the Transaction pursuant to the Purchase Agreement, or at such different time or date
and at such other place as the Subscriber and the Company may mutually agree in writing (the “Closing Date”).

 

		(b)	At the Closing, the Company shall deliver to the Subscriber or to the Subscriber’s designated
custodian a certificate or certificates representing the Subscription Shares, registered in the name of the Subscriber or its nominee,
in exchange for receipt at the Closing by the Company from the Subscriber of the Purchase Price, which shall be paid by wire transfer
of immediately available funds to an account designated in writing by the Company at least three (3) Business Days prior to the
Closing. Notwithstanding the foregoing, the Subscriber may elect to have the Subscription Shares evidenced in book entry format
with the Company’s transfer agent in lieu of the Company delivering certificates representing the Subscription Shares to
the Subscriber.

     

     

    

3. Representations and Warranties of
the Subscriber. The Subscriber hereby represents and warrants to the Company, as of the date hereof (except to the extent another
date is specified below), as follows:

 

		(a)	Authority and Approval; Enforceability. The Subscriber has all requisite power, authority
and legal capacity to execute and deliver this Agreement, to perform its obligations under this Agreement and to consummate the
Subscription. The execution, delivery and performance by the Subscriber of this Agreement, and the consummation by it of the Subscription,
have been duly and validly authorized by all necessary action on the part of the Subscriber, and no other proceedings on the part
of the Subscriber are necessary to authorize the execution and delivery by the Subscriber of this Agreement and the consummation
by it of the Subscription. This Agreement has been duly executed and delivered by the Subscriber and, assuming due authorization,
execution and delivery hereof by the Company, is a legal, valid and binding obligation of the Subscriber, enforceable against the
Subscriber in accordance with its terms (subject to applicable bankruptcy, insolvency, fraudulent transfer, reorganization, moratorium
and other Laws affecting creditors’ rights generally from time to time in effect and by general principles of equity).

 

		(b)	Non-contravention. The execution, delivery and performance of this Agreement, and the consummation
of the Subscription, do not and will not conflict with, or result in any violation or breach of, or default (with or without notice
or lapse of time or both) under, or give rise to a right of termination, cancellation or acceleration of any obligation or to the
loss of a benefit under, or result in the creation of any Lien (other than Liens, if any, contained in the certificate of incorporation
or bylaws of the Company and restrictions on transfer pursuant to applicable securities laws, in each case in respect of the Subscription
Shares) in or upon any of the properties or other assets of the Subscriber under, (i) the organizational documents of the Subscriber
(if Subscriber is an entity), (ii) any Contract to which the Subscriber is a party or any of its properties or other assets is
subject or (iii) subject to (x) the filing of a Schedule 13D or an amendment to an existing Schedule 13D filing under the Exchange
Act, and (y) such filings and approvals as may be required by any applicable state securities or “blue sky” Laws, any
Law applicable to the Subscriber or its properties or other assets, other than, in the case of clauses (ii) and (iii), any such
conflicts, violations, breaches, defaults, rights, losses or Liens that have not had or would not reasonably be expected to have,
individually or in the aggregate, a Subscriber Material Adverse Effect.

 

		(c)	Litigation. There is no Action pending or, to the Knowledge of the Subscriber, threatened,
and to the Knowledge of Subscriber, there is no external investigation pending or threatened with respect to the Subscriber, nor
is there any material judgment, decree, injunction, rule or order of any Governmental Authority or arbitrator outstanding with
respect to the Subscriber, except in each case for any Actions that have not had and would not reasonably expected to have, individually
or in the aggregate, a Subscriber Material Adverse Effect.

 

		(d)	No Brokers. No broker, investment banker, financial advisor or other person is entitled
to any broker’s, finder’s, financial advisor’s or other similar fee or commission, or the reimbursement of expenses,
in connection with the Subscription based upon arrangements made by or on behalf of the Subscriber.

 

		(e)	Accredited Investor; Purchase for Own Account; No Registration.

    	 	- 2 -	 

     

    

		i.	The Subscriber has such knowledge and experience in financial and business matters such that it
is capable of evaluating the merits and risks of its investment.

 

		ii.	The Subscriber is an “accredited investor” as defined in Rule 501 of Regulation D promulgated
under the Securities Act of 1933 (as amended) (the “Securities Act”).

 

		iii.	The Subscriber is experienced in evaluating and investing in private placement transactions of
securities of companies in a similar stage of development and acknowledges that it is able to fend for itself, can bear the economic
risk of its investment in the Company and has such knowledge and experience in financial and business matters that the Subscriber
is capable of evaluating the merits and risks of the investment in the Subscription Shares and can afford a complete loss of its
investment.

 

		iv.	The Subscriber is acquiring the Subscription Shares for investment only and for its own account,
and not with a view toward or for sale in connection with any distribution thereof. The Subscriber has no present plan or intention
of distributing, selling, exchanging, transferring or otherwise disposing of any such Subscription Shares.

 

		v.	The Subscriber has been advised and understands that (1) the Subscription Shares have not been
registered under the Securities Act, or any state securities or “blue sky” Laws and, therefore, cannot be resold unless
they are registered under the Securities Act and applicable state securities and “blue sky” Laws or unless an exemption
from such registration requirements is available, (2) the Subscriber may be required to hold, and continue to bear the economic
risk of its investment in, the Subscription Shares indefinitely, unless the offer and sale of such Subscription Shares is subsequently
registered under the Securities Act and all applicable state securities and “blue sky” Laws or an exemption from such
registration is available, (3) Rule 144 promulgated under the Securities Act is not presently available with respect to the sale
of any Subscription Shares, (4) when and if the Subscription Shares may be disposed of without registration under the Securities
Act in reliance on Rule 144 of the Securities Act, the amount of Subscription Shares that may be disposed of may be limited in
accordance with the terms and conditions of such Rule and (5) if an exemption under Rule 144 of the Securities Act is not available,
the public offer or sale of the Subscription Shares without registration will require compliance with some other exemption under
the Securities Act and compliance with any state securities or “blue sky” Laws.

 

		(f)	Sufficiency of Funds. The Subscriber has uncalled capital commitments or otherwise has available
funds sufficient to pay the Purchase Price hereunder.

 

4. Representations and Warranties of
the Company. Except as disclosed in the reports, schedules, forms, statements and other documents (including exhibits and other
information incorporated therein) with the SEC since April 30, 2019 but prior to the date hereof and publicly available on the
SEC’s Electronic Data Gathering Analysis and Retrieval system (collectively, the “Company SEC Documents”)
(but (i) without giving effect to any amendment thereof filed with or furnished to the SEC on the date of this Agreement and (ii)
excluding any disclosure (other than statements of historical fact) contained in such Company SEC Documents under the heading “Risk
Factors” or “Cautionary Statement About Forward-Looking Statements” or similar heading and any other disclosures
contained or referenced therein of factors or risks that are predictive, cautionary or forward-looking in nature), the Company
represents and warrants to the Subscriber, as of the date hereof (except to the extent another date is specified below), as follows:

    	 	- 3 -	 

     

    

		(a)	Organization, Standing and Corporate Power. The Company is a corporation duly incorporated,
validly existing and in good standing under the Laws of the State of Delaware and has all requisite corporate power and authority
to carry on its business as now being conducted. Each Subsidiary of the Company is an entity duly organized, validly existing and
in good standing (except to the extent the “good standing” concept is not applicable in any relevant jurisdiction)
under the Laws of the jurisdiction in which it is formed and has all requisite corporate, limited liability company or other entity
power and authority to carry on its business as now being conducted, except to the extent that any failure to be so organized,
validly existing and in good standing has not had or would not reasonably be expected to have, individually or in the aggregate,
a Company Material Adverse Effect. The Company and each of its Subsidiaries is duly qualified or licensed to do business and is
in good standing in each jurisdiction in which the nature of its business or the ownership, leasing or operation of its properties
makes such qualification or licensing necessary, other than in such jurisdictions where the failure to be so qualified or licensed
has not had or would not reasonably be expected to have, individually or in the aggregate, a Company Material Adverse Effect. The
Company has, prior to the date hereof, made available to the Subscriber true and complete copies of the certificate of incorporation
and bylaws of the Company. There has been no breach by the Company of the certificate of incorporation or bylaws of the Company,
each as in effect from time to time, except as would not have a Company Material Adverse Effect.

 

		(b)	Subsidiaries. All the outstanding shares of capital stock of, or other equity interests
in, each Subsidiary of the Company have been validly issued and, where applicable, are fully paid and nonassessable, and are owned
directly or indirectly by the Company free and clear of any Liens other than Permitted Liens. Except (i) as set forth on Schedule
5(b) hereto and (ii) for the capital stock or other equity or voting interests of its Subsidiaries, the Company does not own,
directly or indirectly, any capital stock or other equity or voting interests in any person. Neither the execution and delivery
of this Agreement, nor the consummation of the Transaction, by the Company will conflict with or result in a breach of, or trigger
a right of first refusal or other preferential purchase right or preemptive right under any organizational documents, partnership
agreement, joint venture agreement, stockholders agreement or similar agreement in connection with the Company’s or its Subsidiaries’
ownership of any capital stock or other equity or voting interests in any Person set forth on Schedule 5(b) hereto.

 

		(c)	Authority and Approval; Enforceability. The Company has all necessary corporate power and
authority to execute and deliver this Agreement, to perform its obligations under this Agreement and to consummate the Subscription.
The execution, delivery and performance by the Company of this Agreement and the consummation by it of the Subscription, have been
duly and validly authorized by the board of directors of the Company and no other corporate action on the part of the Company pursuant
to Delaware Law, the applicable listing standards of the OTC Pink Market or otherwise, is necessary to authorize the execution
and delivery by the Company of this Agreement and the consummation by it of the Subscription. This Agreement has been duly executed
and delivered by the Company and, assuming due authorization, execution and delivery hereof by the Subscriber, is a legal, valid
and binding obligation of the Company, enforceable against the Company in accordance with its terms (subject to applicable bankruptcy,
insolvency, fraudulent transfer, reorganization, moratorium and other Laws affecting creditors’ rights generally from time
to time in effect and by general principles of equity).

 

		(d)	Non-contravention. The execution, delivery and performance of this Agreement, and the consummation
of the Subscription, do not and will not, conflict with, or result in any violation or breach of, or default (with or without notice
or lapse of time or both) under, or give rise to a right of termination, cancellation or acceleration of any obligation or to the
loss of a benefit under, or result in the creation of any Lien in or upon any of the properties or other assets of the Company
or any of its Subsidiaries under, (i) the organizational documents of the Company, (ii) any Contract to which the Company or any
of its Subsidiaries is a party or any of their respective properties or other assets is subject or (iii) any Law applicable to
the Company or any of its Subsidiaries or their respective properties or other assets, other than, in the case of clauses (ii)
and (iii), any such conflicts, violations, breaches, defaults, rights, losses or Liens that have not had or would not reasonably
be expected to have, individually or in the aggregate, a Company Material Adverse Effect.

    	 	- 4 -	 

     

    

		(e)	Capital Structure. The authorized capital stock of the Company consists of (i) 180,000,000
shares of Common Stock and (ii) 20,000,000 shares of Voting Non-Economic Preferred Stock, par value $0.01 per share (“Preferred
Stock”). As of October 20, 2019, (A) 16,302,462 shares of Common Stock were issued and outstanding, (B) 1,886,667 shares
of Preferred Stock were issued and outstanding, (C) there were restricted stock units issued under the JTH Holding, Inc. 2011 Equity
and Cash Incentive Plan (the “2011 Stock Plan”) covering 96,373 shares of Common Stock, (D) there were options
to acquire 549,050 shares of Common Stock outstanding under the 2011 Stock Plan and (E) 1,589,668 shares of Common Stock were reserved
for future issuances pursuant to the 2011 Stock Plan.

 

		(f)	Valid Issuance. The Common Stock issuable in the Subscription, when issued, sold and delivered
at the Closing, will be duly authorized and validly issued, fully paid and nonassessable, and will be issued free and clear of
any Liens (other than such Liens created by the certificate of incorporation of the Company or by applicable securities Laws) or
any preemptive rights.

 

		(g)	Company SEC Documents; No Undisclosed Liabilities.

 

		(i)	The Company has timely filed or furnished the Company SEC Documents. No Subsidiary of the Company
is required to file or furnish, or files or furnishes, any form, report or other document with the SEC.

 

		(ii)	As of their respective dates, the Company SEC Documents complied in all material respects with
the requirements of the Securities Act or the Securities Exchange Act of 1934, as amended, as the case may be, applicable to such
Company SEC Documents, and, as of their respective dates, none of the Company SEC Documents contained any untrue statement of a
material fact or omitted to state a material fact required to be stated therein or necessary in order to make the statements therein,
in light of the circumstances under which they were made, not misleading, unless such information contained in any Company SEC
Document has been amended or superseded by a later-filed Company SEC Document that was filed prior to the date hereof.

 

		(iii)	The financial statements of the Company included in the Company SEC Documents comply as of their
respective dates as to form in all material respects with applicable accounting requirements and the published rules and regulations
of the SEC with respect thereto, have been prepared in accordance with GAAP (except, in the case of unaudited statements, for normal
and recurring year-end adjustments not material in amount and as permitted by Form 10-Q of the SEC or other rules and regulations
of the SEC) applied by the Company on a consistent basis during the periods and at the dates involved (except as may be indicated
therein or in the notes thereto) and fairly present in all material respects the financial position of the Company and its consolidated
Subsidiaries as of the dates thereof and the consolidated results of their operations and cash flows for the periods then ended
(except, in the case of unaudited statements, for normal and recurring year-end adjustments not material in amount and as permitted
by Form 10-Q of the SEC or other rules and regulations of the SEC). Neither the Company nor any of its Subsidiaries maintains any
“off balance sheet arrangements” within the meaning of Item 303 of Regulation S-K of the SEC.

    	 	- 5 -	 

     

    

		(iv)	Neither the Company nor any of its Subsidiaries has any liabilities or obligations of any nature
(whether accrued, absolute, contingent or otherwise) that would be required under GAAP to be reflected on a consolidated balance
sheet of the Company and its Subsidiaries (including the notes thereto), except for any such liabilities or obligations (A) accrued,
disclosed, reflected or reserved against in the most recent financial statements (including any related notes) contained in the
Company SEC Documents filed prior to the date of this Agreement, (B) incurred in the ordinary course of business since the date
of the latest balance sheet included in such financial statements, (C) incurred in connection with this Agreement, the Purchase
Agreement, the agreements and documents ancillary thereto, the Subscription, the Transaction and the other transactions ancillary
to the Transaction or (D) that have not had or would not reasonably be expected to have, individually or in the aggregate, a Company
Material Adverse Effect.

 

		(h)	Absence of Certain Changes or Events. Since April 30, 2019, until the date of this Agreement,
(i) the Company and its Subsidiaries have conducted their respective businesses in all material respects in accordance with the
ordinary course of such businesses and (ii) (A) there has not been any change, effect, event, circumstance, occurrence or state
of facts that has had or would reasonably be expected to have, individually or in the aggregate, a Company Material Adverse Effect,
(B) neither the Company nor one of its Subsidiaries has sold, leased, transferred, assigned or otherwise disposed of any material
assets, other than in the ordinary course of business consistent with past practice, (C) the Company has not (1) declared, set
aside or paid any distribution in respect of the capital stock of the Company or other equity interests of the Company or (2) redeemed
or purchased any capital stock of the Company or other equity interests of the Company, (D) neither the Company nor its Subsidiaries
have made, changed or revoked any material Tax election, filed an amended Tax Return, settled any Tax audit or changed any Tax
accounting periods or methods and (E) neither the Company nor its Subsidiaries have committed to do any of the foregoing.

 

		(i)	Litigation. There is no material Action pending or, to the Knowledge of the Company, threatened,
and the Company has no Knowledge of any material external investigation pending or threatened with respect to the Company or its
Subsidiaries, nor is there any material judgment, decree, injunction, rule or order of any Governmental Authority or arbitrator
outstanding with respect to the Company or any of its Subsidiaries.

 

		(j)	Compliance with Laws.

 

		(i)	The Company and each of its Subsidiaries are and have been since April 30, 2019, in compliance
with all Laws applicable to them, their properties or other assets or their business or operations, except for such violations
or noncompliance that have not been and would not reasonably be expected to have, individually or in the aggregate, a Company Material
Adverse Effect. The Company and its Subsidiaries have in effect all Permits necessary to carry on their businesses as currently
conducted, and there has occurred no violation of, default (with or without notice or lapse of time or both) under, or event giving
to others any right of termination, amendment or cancellation of, with or without notice or lapse of time or both, any Permit,
except for such violation, defaults, terminations, amendments or cancellations that, individually or in the aggregate, have not
had and would not reasonably be expected to have a Company Material Adverse Effect. There is no event which has occurred that would
reasonably be expected to result in the termination, revocation, cancellation, non-renewal or adverse modification of any such
Permit, except where such termination, revocation, cancellation, non-renewal or adverse modification would not reasonably be expected
to have, individually or in the aggregate, a Company Material Adverse Effect.

    	 	- 6 -	 

     

    

		(ii)	Since April 30, 2019, (A) neither the Company nor any of its Subsidiaries has received any written
notice from any Governmental Authority that alleges or relates to (1) any violation or noncompliance (or reflects that the Company
or any of its Subsidiaries is under investigation or the subject of an inquiry by any such Governmental Authority for such alleged
noncompliance) with any applicable Law or (2) any fine, assessment or cease and desist order, or the suspension, revocation or
limitation or restriction of any Permit and (B) neither the Company nor any of its Subsidiaries has entered into any agreement
or settlement with any Governmental Authority with respect to its alleged noncompliance with, or violation of, any applicable Law,
except in each case in clauses (A) and (B) above to the extent any such violation, noncompliance, fine, assessment, order, suspension,
revocation, limitation or restriction has not had and would not reasonably be expected to have, individually or in the aggregate,
a Company Material Adverse Effect.

 

		(k)	No Brokers. No broker, investment banker, financial advisor or other person is entitled
to any broker’s, finder’s, financial advisor’s or other similar fee or commission, or the reimbursement of expenses,
in connection with the Subscription based upon arrangements made by or on behalf of the Company or its Subsidiaries.

 

5. Remedies.

 

The parties hereto agree that irreparable
damage would occur and that they would not have any adequate remedy at Law in the event that any of the provisions of this Agreement
were not performed in accordance with their specific terms or were otherwise breached. It is accordingly agreed that the parties
hereto shall be entitled to an injunction or injunctions to prevent breaches of this Agreement and to enforce specifically the
terms and provisions of this Agreement without proof of actual damages and without the requirement to post any bond or other security,
this being in addition to any other remedy to which any such party is entitled at law or in equity.

 

6. Miscellaneous.

 

		(a)	Notices. Except for notices that are specifically required by the terms of this Agreement
to be delivered orally, all notices, requests, claims, demands and other communications hereunder shall be in writing and shall
be deemed given, delivered and/or provided (i) when delivered personally or when sent by e-mail of a .pdf attachment (provided
no notice of non-delivery is generated), or (ii) on the next Business Day when dispatched for overnight delivery by Federal Express
or a similar courier, in either case, to the parties hereto at the following addresses (or at such other address for a party hereto
as shall be specified by like notice):

 

if to the Company, to:

 

Franchise Group, Inc.

    	 	- 7 -	 

     

    

1716 Corporate Landing Parkway

Virginia Beach, VA 23454

Email: tiffany.mcwaters@libtax.com

Attention: Tiffany McMillan-McWaters

 

with a copy to:

 

Troutman Sanders LLP

600 Peachtree Street NE

Suite 3000

Atlanta, GA 30308

Email: David.Ghegan@troutman.com

Attention: David W. Ghegan

 

if to the Subscriber, to:

 

c/o Vintage Capital Management

4705 S. Apopka Vineland Road

Suite 210

Orlando, FL 32819

Email: bkahn@vintcap.com

Attention: Brian R. Kahn

 

with a copy to:

 

Willkie Farr & Gallagher LLP

787 Seventh Avenue

New York, NY 10019

Email: rleaf@willkie.com

Attention: Russell L. Leaf

 

		(b)	Further Assurances. The parties agree to execute and deliver to each other such other documents
and to do such other acts and things, all as the other party may reasonably request for the purpose of carrying out the intent
of this Agreement.

 

		(c)	Exclusivity of Representations and Warranties; No Limitation of Other Representations or Warranties.

 

		(i)	The representations and warranties made by the Subscriber in Section 3 of this Agreement
and those contained in the Accredited Investor Questionnaire delivered by the Subscriber in connection with this Subscription (the
“Questionnaire”) are the exclusive representations and warranties made by the Subscriber in connection with
the Subscription. The Company hereby acknowledges that none of the Subscriber, any of its Subsidiaries, any of their respective
equity holders or Representatives, or any other person, has made or is making any other express or implied representation or warranty
with respect to the Subscriber, including any information provided or made available to the Company or its Subsidiaries or Representatives
in anticipation or contemplation of the Subscription. Nothing in any representation or warranty in this Agreement or the Questionnaire
shall in any way limit or restrict the scope, applicability or meaning of any other representation or warranty made by the Subscriber
in this Agreement or the Questionnaire.

 

    	 	- 8 -	 

     

    

		(ii)	The representations and warranties made by the Company in Section 4 of this Agreement are
the exclusive representations and warranties made by the Company in connection with the Subscription. The Subscriber hereby acknowledges
that none of the Company, any of its Subsidiaries, any of their respective equity holders or Representatives, or any other person,
has made or is making any other express or implied representation or warranty with respect to the Company and its Subsidiaries
or any of their respective businesses, operations, assets or liabilities, including any information provided or made available
to the Subscriber or its Representatives in anticipation or contemplation of the Subscription. Nothing in any representation or
warranty in this Agreement shall in any way limit or restrict the scope, applicability or meaning of any other representation or
warranty made by the Company or its Subsidiaries in this Agreement.

 

		(d)	Waivers and Amendments.

 

		(i)	At any time prior to the Closing, each party hereto may (A) extend the time for the performance
of any of the obligations or other acts of the other party hereto or (B) subject to the proviso to the first sentence of Section
6(d)(iii) of this Agreement and to the extent permitted by Law, waive compliance with any of the agreements or conditions contained
herein. Any agreement on the part of any party hereto to any such extension or waiver shall be valid only if set forth in an instrument
in writing signed on behalf of such party hereto.

 

		(ii)	The failure of any party to this Agreement to exercise any of its rights under this Agreement or
otherwise shall not constitute a waiver by such party of such right.

 

		(iii)	This Agreement may not be amended except by an instrument in writing signed on behalf of each of
the parties hereto; provided, that notwithstanding anything herein to the contrary, Section 6(h) (and any provision
of this Agreement to the extent a modification, waiver or termination of such provision would modify the substance of any of the
foregoing provisions) may not be modified, waived or terminated in a manner that impacts or is adverse in any respect to a Non-Recourse
Party without the prior written consent of such Non-Recourse Party.

 

		(e)	Severability. Except as expressly set forth in this Agreement, if any term or other provision
of this Agreement is invalid, illegal or incapable of being enforced by any rule of law or public policy, all other conditions
and provisions of this Agreement shall nevertheless remain in full force and effect. Upon such determination that any term or other
provision is invalid, illegal or incapable of being enforced, the parties hereto shall negotiate in good faith to modify this Agreement
so as to effect the original intent of the parties hereto as closely as possible to the fullest extent permitted by applicable
Law in an acceptable manner to the end that the Subscription is fulfilled to the extent possible.

 

		(f)	Entire Agreement.  This Agreement (including the Schedules hereto) and the Purchase Agreement
constitute the entire agreement, and supersede all prior agreements and understandings, both written and oral, among the parties
hereto with respect to the subject matter of this Agreement.

    	 	- 9 -	 

     

    

		(g)	No Third-Party Beneficiaries. Except with respect to the Non-Recourse Parties, who are intended
express third-party beneficiaries of the provisions of Section 6(h), this Agreement (including the Exhibits and Schedules
hereto) is not intended to confer upon any person other than the parties hereto any rights, benefits or remedies.

 

		(h)	No Recourse. Except for any party who is a signatory to this Agreement, and only to the
extent of such party’s obligations hereunder, no former, current or future direct or indirect equity holders, controlling
persons, stockholders, directors, officers, employees, members, managers, agents, trustees, Affiliates, general or limited partners
or assignees of the Company or the Subscriber or of any former, current or future direct or indirect equity holder, controlling
person, stockholder, director, officer, employee, member, manager, trustee, general or limited partner, Affiliate, agent or assignee
of the Company or the Subscriber (collectively, “Non-Recourse Parties”) shall have any liability or obligation
for any of the representations, warranties, covenants, agreements, obligations or liabilities of the Company or the Subscriber,
as applicable, under this Agreement or of or for any Action based on, in respect of, or by reason of, the Subscription, (including
the breach, termination or failure to consummate the Subscription), whether based on contract, tort or strict liability, by the
enforcement of any assessment, by any legal or equitable proceeding, by virtue of any statute, regulation or applicable Law or
otherwise and whether by or through attempted piercing of the corporate or partnership veil, by or through a claim by or on behalf
of a party who is a signatory to this Agreement or any other person or otherwise. The parties hereto hereby agree that the Non-Recourse
Parties shall be express third party beneficiaries of this Section 6(h).

 

		(i)	Successors and Assigns. Subject to the provisions of Section 6(n), all the terms
and provisions of this Agreement shall be binding upon, inure to the benefit of and be enforceable by the respective successors
and permitted assigns of the parties hereto.

 

		(j)	Choice of Law. This Agreement shall be governed by, and construed in accordance with, the
Laws of the State of Delaware, regardless of the Laws that might otherwise govern under applicable principles of conflicts of Laws
thereof.

 

		(k)	Exclusive Jurisdiction. Each of the parties hereto hereby irrevocably and unconditionally
submits to the exclusive jurisdiction of the Court of Chancery of the State of Delaware (or in the event, but only in the event,
that such court does not have subject matter jurisdiction over such action or proceeding, the Superior Court of the State of Delaware
(Complex Commercial Division) or, if subject matter jurisdiction over the action or proceeding is vested exclusively in the federal
courts of the United States of America, the United States District Court for the District of Delaware) (such courts, the “Chosen
Courts”). In addition, each of the parties hereto irrevocably (a) submits itself to the exclusive jurisdiction of the
Chosen Courts for the purpose of any Action directly or indirectly based upon, relating to or arising out of this Agreement or
the Subscription, or any related agreement, certificate or other document delivered in connection therewith or the negotiation,
execution, interpretation, enforcement or performance hereof or thereof, (b) agrees that it will not attempt to deny or defeat
such personal jurisdiction by motion or other request for leave from the Chosen Courts and (c) agrees that it will not bring
any action relating to this Agreement or the Subscription in any court other than the Chosen Courts. Each of the parties hereto
hereby irrevocably waives, and agrees not to assert, by way of motion, as a defense, counterclaim or otherwise, in any Action with
respect to this Agreement or the Subscription, or any related agreement, certificate or other document delivered in connection
therewith or the negotiation, execution, interpretation, enforcement or performance hereof or thereof, (x) any claim that it is
not personally subject to the jurisdiction of the Chosen Courts for any reason other than the failure to serve in accordance with
this Section 6(k), (y) any claim that it or its property is exempt or immune from jurisdiction of any such court or from
any legal process commenced in the Chosen Courts (whether through service of notice, attachment prior to judgment, attachment in
aid of execution of judgment, execution of judgment or otherwise) and (z) to the fullest extent permitted by the applicable Law,
any claim that (i) the suit, action or proceeding in such court is brought in an inconvenient forum, (ii) the venue of such suit,
action or proceeding is improper or (iii) this Agreement, or the subject matter of this Agreement, may not be enforced in or by
such courts. Each of the parties hereto hereby irrevocably consents to service being made through the notice procedures set forth
in Section 6(a) and agrees that service of any process, summons, notice or document by email or mail to the respective addresses
set forth in Section 6(a) shall be effective service of process for any Action in connection with this Agreement or the
Subscription. Nothing in this Section 6(k) shall affect the right of any party hereto to serve legal process in any other
manner permitted by Law.

    	 	- 10 -	 

     

    

		(l)	WAIVER OF JURY TRIAL. EACH PARTY HERETO ACKNOWLEDGES AND AGREES THAT ANY CONTROVERSY WHICH
MAY ARISE UNDER THIS AGREEMENT IS LIKELY TO INVOLVE COMPLICATED AND DIFFICULT ISSUES AND, THEREFORE, EACH SUCH PARTY IRREVOCABLY
AND UNCONDITIONALLY WAIVES ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN RESPECT OF ANY CLAIM DIRECTLY OR INDIRECTLY ARISING OUT
OF OR RELATING TO THIS AGREEMENT OR THE TRANSACTIONS CONTEMPLATED HEREIN OR THE PERFORMANCE OF SERVICES THEREUNDER OR RELATED THERETO.
EACH PARTY TO THIS AGREEMENT CERTIFIES AND ACKNOWLEDGES THAT (A) NO REPRESENTATIVE, AGENT OR ATTORNEY OF ANY OTHER PARTY HERETO
HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PARTY WOULD NOT SEEK TO ENFORCE THE FOREGOING WAIVER IN THE EVENT OF A
CLAIM, (B) SUCH PARTY HAS CONSIDERED AND UNDERSTANDS THE IMPLICATIONS OF THIS WAIVER, (C) SUCH PARTY MAKES THIS WAIVER VOLUNTARILY
AND (D) SUCH PARTY HAS BEEN INDUCED TO ENTER INTO THIS AGREEMENT BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS
IN THIS SECTION 6(l).

 

		(m)	Survival of Provisions; Knowledge.

 

		(i)	The representations and warranties made by the parties hereto in Section 3 and Section
4 hereof shall survive the Closing until the first anniversary of the Closing, and any claim with respect thereto must be made
prior to the expiration of such survival period; provided, that if any claim with respect thereto is made prior to the expiration
of such survival period, then the applicable representation or warranty that is the subject of such claim shall survive until such
time as such claim is finally resolved by the parties or finally determined by a court of competent jurisdiction and is non-appealable.
The covenants and agreements made by the parties hereto shall survive the Closing in accordance with their terms.

 

		(ii)	The Company shall not be liable to the Subscriber based upon or arising out of any inaccuracy in
or breach of any of the representations or warranties of the Company contained in this Agreement to the extent that any such inaccuracy
or breach was within the Knowledge of the Subscriber on or prior to the date hereof.

 

		(n)	Assignment. No party to this Agreement may assign any of its rights or obligations under
this Agreement without the prior written consent of the other party to this Agreement; provided, that the Subscriber may
assign any of its rights or obligation under this Agreement, in whole or in part, to an Affiliate of the Subscriber without the
prior written consent of the Company, except that any such assignment shall not receive the Subscriber of its obligations under
this Agreement.

    	 	- 11 -	 

     

    

		(o)	Defined Terms; Interpretation. Except as otherwise expressly provided herein, capitalized
terms used but not defined herein shall have the respective meanings ascribed to such terms in the Purchase Agreement. For purposes
of this Agreement, (i) “Knowledge” means with respect to any party hereto the actual (but not constructive or
imputed) knowledge of such party hereto or, if applicable, the executive officers of such party hereto (except with respect to
Section 6(m)(ii) hereof, after due inquiry of such party hereto or, if applicable, the officers of such party hereto with
oversight responsibilities for the matter in question), (ii) “Subscriber Material Adverse Effect” means any
change, effect, event, circumstance, occurrence or state of facts that prevents or materially impairs or materially delays the
ability of the Subscriber to consummate the Subscription and (iii) “Company Material Adverse Effect” means any
change, effect, event, circumstance, occurrence or state of facts that that (A) is materially adverse to the business, condition
(financial or otherwise), assets or results of operations of the Company and its Subsidiaries (taken as a whole), or (B) prevents
or materially impairs or materially delays the ability of the Company and its Subsidiaries, as applicable, to consummate the Transaction
and/or the Subscription, other than in the case of clause (A), any change, effect, event, circumstance, occurrence or state of
facts to the extent relating to (1) changes in general economic conditions or the credit, financial or capital markets, including
changes in interest or exchange rates; (2) changes in general conditions in any industry in which the Company or any of its
Subsidiaries operates or participates; (3) the announcement, pendency or anticipated consummation of the Transaction;
(4) any failure, in and of itself, by the Company or any of its Subsidiaries to meet any analyst projections or any internal or
published projections, forecasts, estimates or predictions of revenue, earnings or other financial or operating metrics before,
on or after the date of this Agreement (provided that the underlying factors contributing to such failure shall not be deemed
excluded unless such underlying factors would otherwise be excepted from this definition); (5) changes in general regulatory
or political conditions after the date of this Agreement; (6) changes in GAAP or applicable Law or the interpretation thereof
after the date of this Agreement; (7) changes in the trading price or volume of the Common Stock (provided that the
underlying factors contributing to such change shall not be excluded unless such underlying factors would otherwise be excepted
from this definition); (8) any natural or man-made disaster; or (9) any pandemic, act of terrorism, sabotage, military
action or war, or any escalation or worsening thereof; provided, that with respect to clauses (1), (2), (5), (6), and
(9), such change, effect, event, circumstance, occurrence or state of facts does not materially and disproportionately affect the
Company and its Subsidiaries (taken as a whole) relative to other persons operating in the industries in which the Company or any
of its Subsidiaries operate. The provisions of Section 1.3 of the Purchase Agreement are incorporated herein by reference, mutatis
mutandis.

 

		(p)	Counterparts. This Agreement may be executed in one or more counterparts, all of which shall
be considered one and the same agreement and shall become effective when one or more counterparts have been signed by each of the
parties and delivered to the other parties. Facsimile signatures or signatures received as a .pdf attachment to electronic mail
shall be treated as original signatures for all purposes of this Agreement.

 

[Remainder of page intentionally left
blank.]

 

 

 

    	 	- 12 -	 

     

    

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

 

 

 

	 	THE COMPANY:
	 	 
	 	FRANCHISE GROUP, INC.
	 	 	 
	 	 	 
	 	 	 
		By:	/s/ Michael S. Piper
	 	 	Name: Michael. S. Piper
	 	 	Title: Vice President & Chief Financial Officer

 

 

 

    
	[Signature Page to Closing Subscription Agreement]

     

    

	 	THE SUBSCRIBER:
	 	 
	 	STEFAC LP
	 	 	 
	 	 	 
	 	 	 
		By:	/s/
                                         Brian R. Kahn

                                                                                 

                                                                                

	 	 	Name: Brian R. Kahn
	 	 	Title: Manager

 

 

 

 

[Signature
Page to Closing Subscription Agreement]

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