Document:

From:

Q
Saeed

SteriLumen, Inc.

8480
East Orchard Road, Suite 2400

Greenwood Village, Colorado 80111

 

To:

Mike
Riccio

mike.g.riccio@gmail.com

Re:
Offer of Employment Dear Mike:

On
behalf of Applied UV, Inc. (the “Company”) (NASDAQ: AUVI), I am pleased to extend you an offer of employment
as the company’s Chief Financial Officer (“CFO”) on the following terms (the "Employment Offer".)

1. 
Position and Duties. The position of CFO is offered on a full-time basis and your primary work location will be remote in
NJ with occasional work out of the Mount Vernon facility. You will be expected to devote your full time and best efforts to the
performance of your responsibilities, as defined below, and you may not engage in any other business without the express written
consent of the Company. Your job responsibilities as CFO are consistent with the normal job duties of a public company, NASDAQ
listed Company in this position, including but not limited to:

		•	Providing
                                         leadership, direction and management of the finance and accounting team

		•	Providing
                                         strategic recommendations to the CEO, members of the executive management team, and the
                                         Board of Directors as needed

		•	Managing
                                         the processes for financial forecasting and budgets, and overseeing the preparation of
                                         all financial reporting

		•	Advising
                                         on long-term business and financial planning

		•	Support
                                         and manage the ERP and related systems

		•	Manage
                                         all SEC filings and IR-related activities on behalf of the company

		•	Establishing
                                         and developing relations with senior management and external partners and stakeholders

		•	Develop
                                         and manage financial and nonfinancial controls in compliance with best practices and
                                         public company requirements

 

2. 
Compensation and Employee Benefits. Your annual base salary for the period commencing Monday, April 5, 2021 will be $200,000.00
less applicable payroll deductions and withholdings, payable on the Company’s regular payroll dates (“Starting
Salary”). 

You
will also be awarded 70,000 “Stock Options” as defined in, and subject to, the 2020

Employee
Stock Option Plan. 

During
your employment, you will also be eligible to participate in the standard benefits plans offered to similarly situated employees
by the Company, including, but not limited to, profit sharing, life and disability insurance, health insurance, subject to plan
terms and generally applicable Company policies. The Company will reimburse you for your business travel and telephone in accordance
with the Company guidelines. In addition, you will be given a laptop computer that will be returned to the Company at the conclusion
of your employment. You will also be entitled to the paid holidays and other paid leave as set forth in the Company’s policies.
A full description of these benefits is available upon request. The Company may change compensation and benefits from time to
time in its discretion. 

3. 
“At-Will” Employment Relationship. Your employment with the Company will be “at- will.” This means
that your employment is for no specific period of time and the Company may terminate your employment at any time and for any reason
whatsoever, with or without “cause” (defined below). The fact that your salary or other compensation is stated in
terms of years or months does not alter the at-will nature of the employment, and does not mean and should not be interpreted
to mean that you are guaranteed employment to the end of any period of time or for any period of time. Although your job duties,
title, compensation and benefits, as well as the Company’s personnel policies and procedures, may change from time
to time, the “at-will” nature of your employment may only be changed expressly in a writing signed by you and the
Company’s President or other authorized designee. 

(a)
The term “cause” means (i) a material breach of any agreement between you and the Company, including, without
limitation, the company’s governance, ethics, expenses and general conduct policies and practices, and/or any non-competition
agreement or confidentiality agreement (which will include any violation resulting from you working for a competing company without
the prior authorization and consent from the Company as contemplated by this Employment Offer); (ii) intentional or negligent
misconduct by you in the performance of your duties or obligations to the Company in any material respect during your employment
with the Company; (iii) a breach of any fiduciary duty which you owe to the Company in your capacity, a manager of the Company,
or under any agreement between you and the Company as an employee; (iv) the conviction, plea of guilty or no contest or acceptance
of deferred adjudication or unadjudicated probation by you during your employment with the Company with respect to (A) a felony
(other than a driving infraction) or (b) embezzlement, dishonesty, a crime involving moral turpitude, or intentional and actual
fraud; (v) the habitual use or abuse of alcohol, drugs or other substances, in each case that interferes with your employment
with the Company; (vi) material unexcused absences from work; (vii) your failure to perform the job functions, described above
in paragraph 1, and failure to cure such deficiency within 7 business days after being provided written notice of such failure.

4. 
Written Modifications Only. This letter forms the complete and exclusive statement of the terms of your employment with the
Company. It supersedes any other agreements or promises made to the Company, whether oral or written, and nothing in this letter
creates an implied or explicit contract for employment. Changes in your employment terms, other than those changes expressly reserved
to the Company’s discretion in this letter, require a written modification signed by an authorized representative of the
Company.

5. 
Terms of Acceptance. If you wish to accept employment with the Company under the terms described above, please sign and date
this letter and return it to me by February 24, 2021. If you accept our offer, we would like you to start on April 5, 2021.

 

We
are looking forward to the opportunity of working closely with you in the near future. Sincerely,

 

	/s/ Keymoumars Saeed	 	Date: February 19, 2021
	Keyoumars Saeed, CEO	 	 
	 	 	 
	ACCEPTED AND AGREED:	 	 
	(Signature)	 	 
	 	 	 
	/s/ Michael Riccio	 	Date: February 21, 2021
	Michael Riccio	 	 

 

    	1Exhibit 10.1

 

 Execution Version

 

 

LIMITED WAIVER AND CONSENT TO CREDIT AGREEMENT

 

THIS LIMITED WAIVER AND CONSENT
TO CREDIT AGREEMENT (this “Waiver”) dated as of April 19, 2021 between SEQUENTIAL BRANDS GROUP, INC., a Delaware corporation
(the “Borrower”), the Guarantors party hereto, the Lenders party hereto, and WILMINGTON TRUST, NATIONAL ASSOCIATION,
as administrative agent and collateral agent (the “Agent”), in consideration of the mutual covenants herein contained
and benefits to be derived herefrom.

 

W I T N E S S E T H:

 

WHEREAS, the Borrower, the
Guarantors, the Lenders and the Agent are party to that certain Third Amended and Restated Credit Agreement dated as of July 1, 2016 (as
amended, restated, supplemented or modified and in effect as of the date hereof, the “Credit Agreement”);

 

WHEREAS, on November 15, 2020,
the Borrower, the Agent, and Lenders constituting Required Lenders entered into the Fifth Amendment pursuant to which (i) the parties
thereto amended certain provisions of the Credit Agreement and (ii) the Required Lenders granted the Borrower the Requested Waiver (as
such term is defined in the Fifth Amendment) on the terms set forth in the Fifth Amendment in respect of the Specified Events of Default
(as such term is defined in the Fifth Amendment);

 

WHEREAS, on December 31, 2020,
the Borrower, Lenders constituting Required Lenders and the Agent entered into that certain Limited Waiver and Consent to Credit Agreement
pursuant to which the Required Lenders extended the Requested Waiver to January 31, 2021, on the terms and conditions set forth therein;

 

WHEREAS, on January 31, 2021,
the Borrower, Lenders constituting Required Lenders and the Agent entered into that certain Limited Waiver and Consent to Credit Agreement
pursuant to which the Required Lenders extended the Requested Waiver to February 21, 2021, on the terms and conditions set forth therein;

 

WHEREAS, on February 21, 2021,
the Borrower, Lenders constituting Required Lenders and the Agent entered into that certain Limited Waiver and Consent to Credit Agreement
pursuant to which the Required Lenders extended the Requested Waiver to March 10, 2021, on the terms and conditions set forth therein;

 

WHEREAS, on March 10, 2021,
the Borrower, Lenders constituting Required Lenders and the Agent entered into that certain Limited Waiver and Consent to Credit Agreement
pursuant to which the Required Lenders extended the Requested Waiver to March 31, 2021, on the terms and conditions set forth therein;

 

WHEREAS, on March 31, 2021,
the Borrower, Lenders constituting Required Lenders and the Agent entered into that certain Limited Waiver and Consent to Credit Agreement
pursuant to which the Required Lenders extended the Requested Waiver to April 19, 2021, on the terms and conditions set forth therein;

 

WHEREAS, the Borrower has
requested that the Lenders party hereto (constituting Required Lenders) and the Agent further extend the Requested Waiver to May 10, 2021,
on the terms and for the period set forth herein;

 

WHEREAS, the Required Lenders
and the Agent (at the direction of the Required Lenders) have agreed to extend the Requested Waiver as set forth herein;

 

     

     

    

 

WHEREAS, the Loan Parties,
the Agent and the Lenders party thereto entered into that certain Limited Waiver to Third Amended and Restated Credit Agreement dated
as of April 9, 2021 (the “Original Waiver”; a copy of which is attached hereto as Annex A) pursuant to which
subject to the terms and conditions provided therein, the Agent and certain Lenders waived the Borrower’s failure to deliver the
2020 Financials, the 2020 Accountant’s Certificate and the 2020 Compliance Certificate (each as defined in the Original Waiver)
within 90 days after the end of the Fiscal Year ended December 31, 2020 as required pursuant to Sections 6.01(a), 6.02(a) and 6.02(b)
of the Credit Agreement, respectively, until April 20, 2021 (or such later date to which the Required Lenders may agree in writing);

 

WHEREAS, Section 6.01(a) of
the Credit Agreement requires that the annual financial statements provided thereunder be accompanied by a report and unqualified opinion
of a Registered Public Accounting Firm of nationally recognized standing, which report and opinion (i) shall be prepared in accordance
with generally accepted auditing standards and (ii) shall not be subject to any “going concern” or like qualification or exception
or any qualification or exception as to the scope of such audit (this clause (ii), the “Unqualified Audit Requirement”);

 

WHEREAS, the Borrower has
requested that the Agent and the Lenders party hereto waive the Unqualified Audit Requirement with respect to the Annual Financial Statements
for the Fiscal Year ended December 31, 2020; and

 

WHEREAS, the Required Lenders
and the Agent (at the direction of the Required Lenders) have agreed to waive the Unqualified Audit Requirement with respect to the Annual
Financial Statements for the Fiscal Year ended December 31, 2020 as set forth herein.

 

NOW THEREFORE, in consideration
of the mutual promises and agreements herein contained, the parties hereto hereby agree as follows:

 

1.                 
Incorporation of Terms. All capitalized terms not otherwise defined herein shall have the same meaning as in the Credit
Agreement.

 

2.                 
Representations and Warranties. The Borrower hereby represents and warrants that (i) no Default or Event of Default exists
under the Credit Agreement or under any other Loan Document on and as of the date hereof (other than the Specified Events of Default subject
to the Requested Waiver and the Acknowledged Defaults (as defined in the Original Waiver) subject to the Original Waiver), and (ii) after
giving effect to this Waiver, all representations and warranties contained in the Credit Agreement and the other Loan Documents are true
and correct, in all material respects, on and as of the date hereof, except (i) to the extent that such representations and warranties
specifically refer to an earlier date, in which case they shall be true and correct as of such earlier date, and (ii) in the case of any
representation and warranty qualified by materiality, they shall be true and correct in all respects.

 

3.                 
Limited Waiver. Subject to the satisfaction of the conditions precedent set forth in Section 4 of this Waiver, Agent and
the Lenders party hereto hereby grant an extension to the Requested Waiver through May 10, 2021 (subject to further extension as may be
granted as set forth below); provided, that the foregoing waiver shall be effective only to the extent specifically set forth herein and
shall not (a) be construed as a consent to or waiver of (i) any breach, Default or Event of Default other than as specifically waived
herein, or (ii) any breach, Default or Event of Default of which Agent or any of the Lenders have not been informed by any Loan Party,
(b) affect the right of Agent or any of the Lenders to demand strict compliance by each Loan Party with all terms and conditions of the
Credit Agreement and the Loan Documents, except as specifically consented to, modified or waived by the terms hereof, (c) be deemed a
consent to or waiver of any future transaction or action on the part of any Loan Party requiring the Lenders’ or the Required Lenders’
consent or approval under the Credit Agreement or the Loan Documents, or (d) diminish, prejudice or waive any of Agent’s or any
Lender’s rights and remedies under the Credit Agreement, any of the other Loan Documents, or applicable law, whether arising as
a consequence of any Default or Event of Default which may now exist or otherwise, and Agent and each of the Lenders hereby reserve all
of such rights and remedies. It is understood and agreed that the Requested Waiver is temporary and shall expire on May 10, 2021 unless
further extended by the Agent (at the direction of the Required Lenders in their sole discretion). Upon the expiration of the Requested
Waiver, the Specified Events of Defaults shall constitute an immediate Event of Default under the Credit Agreement. For the avoidance
of doubt and notwithstanding anything herein to the contrary, during the period in which the Requested Waiver is in effect, to the extent
any provision of the Credit Agreement or any other Loan Document is qualified by, or requires the absence of, any Default or Event of
Default, a Default or Event of Default shall be deemed to have occurred for purposes of such provisions as a result of the Specified Events
of Default notwithstanding the Requested Waiver.

 

    	 	-2-	 

     

    

 

The Agent (at the
direction of the Required Lenders) and Lenders party hereto waive the Unqualified Audit Requirement with respect to the 2020 Financials
for the Fiscal Year ended December 31, 2020.

 

4.                 
Conditions to Effectiveness. This Waiver shall not be effective until each of the following conditions precedent has been
fulfilled to the satisfaction of the Agent (at the direction of the Required Lenders):

 

(a)              
This Waiver shall have been duly executed and delivered by the Borrower, the other Loan Parties, the Agent, and the Required Lenders,
and the Agent shall have received evidence thereof.

 

(b)              
The Agent shall have received a duly executed and effective Amendment to Fourth Amendment to Third Amended and Restated Credit
Agreement Side Letter, dated as of the date hereof, by and among the Borrower, the Agent and the Lenders party thereto (the “Side
Letter Amendment”).

 

(c)              
All action on the part of the Borrower and the other Loan Parties necessary for the valid execution, delivery and performance by
the Borrower and the other Loan Parties of this Waiver and the other Loan Documents shall have been duly and effectively taken.

 

(d)              
After giving effect to this Waiver, no Default or Event of Default shall have occurred and be continuing.

 

 

    	 	-3-	 

     

    

 

(e)              
The Borrower shall have paid in full all fees and expenses of the Agent (including the reasonable and documented fees and expenses
of counsel for the Agent) and the KKR Representative (including those of King & Spalding LLP and Province Inc.) due and payable on
or prior to the date hereof, and in the case of expenses, to the extent invoiced at least one (1) Business Day prior to the date hereof.

 

(f)               
The Agent shall have received a duly executed waiver by the Borrower, the BoA Agent and the Lenders party thereto pursuant to which
the BoA Agent and Lenders party thereto waive the Unqualified Audit Requirement
(as defined therein). 

 

5.                 
Binding Effect. The terms and provisions hereof shall be binding upon and inure to the benefit of the parties hereto and
their heirs, representatives, successors and assigns.

 

6.                 
Reaffirmation of Obligations. The Borrower and each Guarantor hereby ratifies the Loan Documents and acknowledges and reaffirms
(a) that it is bound by all terms of the Loan Documents applicable to it and (b) that it is responsible for the observance and
full performance of its respective Obligations.

 

7.                 
Loan Document. This Waiver shall constitute a Loan Document under the terms of the Credit Agreement.

 

8.                 
Multiple Counterparts. This Waiver may be executed in counterparts (and by different parties hereto in different counterparts),
each of which shall constitute an original, but all of which when taken together shall constitute a single contract. Delivery of an executed
counterpart of a signature page of this Waiver by telecopy, pdf or other electronic transmission shall be as effective as delivery of
a manually executed counterpart of this Waiver.

 

9.                 
Governing Law. THIS WAIVER AND ANY CLAIMS, CONTROVERSY, DISPUTE OR CAUSE OF ACTION, WHETHER IN LAW OR EQUITY, WHETHER IN
CONTRACT OR IN TORT OR OTHERWISE BASED UPON, ARISING OUT OF OR RELATING TO THIS WAIVER AND THE TRANSACTIONS CONTEMPLATED HEREBY SHALL
BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAW OF THE STATE OF NEW YORK.

 

10.             
Consent to Jurisdiction; Service of Process; Waiver of Jury Trial. The jurisdiction, service of process and waiver of jury
trial provisions set forth in Sections 10.14 and 10.15 of the Credit Agreement are hereby incorporated by reference, mutatis mutandis.

 

11.             
Agent Authorization. Each of the undersigned Lenders hereby authorizes and directs Agent to execute and deliver this Waiver
on its behalf and, by its execution below, each of the undersigned Lenders agrees to be bound by the terms and conditions of this Waiver.

 

 

    	 	-4-	 

     

    

 

 

 IN WITNESS WHEREOF, this
Waiver has been duly executed and delivered by each of the parties hereto as of the date first above written.

 

 

	 	BORROWER:
	 	 	 	 
	 	 	SEQUENTIAL BRANDS GROUP, INC.
	 	 	 	 
	 	 	By:	 /s/ Lorraine DiSanto
	 	 	Name:	 Lorraine DiSanto
	 	 	Title: 	Chief Financial Officer
	 	 	 	 
	 	 	 	 
	 	 	 	 
	 	GUARANTORS:
	 	 	 	 
	 	 	SQBG, INC.
	 	 	 	 
	 	 	By:	 /s/ Lorraine DiSanto
	 	 	Name:	 Lorraine DiSanto
	 	 	Title: 	Chief Financial Officer
	 	 	 	 
	 	 	SEQUENTIAL LICENSING, INC.
	 	 	 	 
	 	 	By:	 /s/ Lorraine DiSanto
	 	 	Name:	 Lorraine DiSanto
	 	 	Title: 	Chief Financial Officer
	 	 	 	 
	 	 	WILLIAM RAST LICENSING, LLC
	 	 	 	 
	 	 	By: 	/s/ Lorraine DiSanto
	 	 	Name:	 Lorraine DiSanto
	 	 	Title: 	Chief Financial Officer 
	 	 	 	 
	 	 	HEELING SPORTS LIMITED 
	 	 	 	 
	 	 	By: 	/s/ Lorraine DiSanto
	 	 	Name:	 Lorraine DiSanto
	 	 	Title: 	Chief Financial Office
	 	 	 	 
	 	 	B®AND MATTER, LLC
	 	 	 	 
	 	 	By: 	/s/ Lorraine DiSanto
	 	 	Name:	 Lorraine DiSanto
	 	 	Title: 	Chief Financial Officer

 

    [Signature Page to Limited Waiver and Consent]

     

    

 

	 	 	SB G FM, LLC
	 	 	 	 
	 	 	By:	 /s/ Lorraine DiSanto
	 	 	Name:	 Lorraine DiSanto
	 	 	Title: 	Chief Financial Officer
	 	 	 	 
	 	 	 	 
	 	 	SBG UNIVERSE BRANDS, LLC
	 	 	 	 
	 	 	By:	 /s/ Lorraine DiSanto
	 	 	Name:	 Lorraine DiSanto
	 	 	Title: 	Chief Financial Officer
	 	 	 	 
	 	 	GALAXY BRANDS LLC
	 	 	 	 
	 	 	By:	 /s/ Lorraine DiSanto
	 	 	Name:	 Lorraine DiSanto
	 	 	Title: 	Chief Financial Officer
	 	 	 	 
	 	 	The Basketball Marketing Company, Inc. 
	 	 	 	 
	 	 	By: 	/s/ Lorraine DiSanto
	 	 	Name:	 Lorraine DiSanto
	 	 	Title: 	Chief Financial Officer 
	 	 	 
	 	 	AMERICAN SPORTING GOODS CORPORATION
	 	 	 	 
	 	 	By: 	/s/ Lorraine DiSanto
	 	 	Name:	 Lorraine DiSanto
	 	 	Title: 	Chief Financial Office
	 	 	 	 
	 	 	LNT BRANDS LLC 
	 	 	 	 
	 	 	By: 	/s/ Lorraine DiSanto
	 	 	Name:	 Lorraine DiSanto
	 	 	Title: 	Chief Financial Officer
	 	 	 	 
	 	 	 	 
	 	 	JOE’S HOLDINGS LLC
	 	 	 	 
	 	 	By: 	/s/ Lorraine DiSanto
	 	 	Name:	 Lorraine DiSanto
	 	 	Title: 	Chief Financial Officer

 

 

 

    [Signature Page to Limited Waiver and Consent]

     

    

 

	 	 	GAIAM BRAND HOLDCO, LLC
	 	 	 	 
	 	 	By:	 /s/ Lorraine DiSanto
	 	 	Name:	 Lorraine DiSanto
	 	 	Title: 	Chief Financial Officer
	 	 	 	 
	 	 	 	 
	 	 	GAIAM AMERICAS, INC.
	 	 	 	 
	 	 	By:	 /s/ Lorraine DiSanto
	 	 	Name:	 Lorraine DiSanto
	 	 	Title: 	Chief Financial Officer
	 	 	 	 
	 	 	SBG-GAIAM HOLDINGS, LLC
	 	 	 	 
	 	 	By:	 /s/ Lorraine DiSanto
	 	 	Name:	 Lorraine DiSanto
	 	 	Title: 	Chief Financial Officer

 

 

    [Signature Page to Limited Waiver and Consent]

     

    

 

 

	 	wilmington trust, national association, as Agent
	 	 
	 	By:  	/s/ David Bergstrom
	 	Name:	David Bergstrom
	 	Title:  	Vice President

 

 

 

 

    [Signature Page to Limited Waiver and Consent]

     

    

 

	 	LENDERS:
	 	 	 	 
	 	 	 	 
	 	 	FS KKR CAPITAL CORP.
	 	 	 	 
	 	 	By: 	/s/ Jessica Woolf
	 	 	Name: Jessica Woolf
	 	 	Title: Authorized Signatory
	 	 	 	 
	 	 	 	 
	 	 	DARBY CREEK LLC
	 	 	 	 
	 	 	By:	 /s/ Jessica Woolf
	 	 	Name: Jessica Woolf
	 	 	Title: Authorized Signatory
	 	 	 	 
	 	 	 	 
	 	 	FS KKR CAPITAL CORP. II
	 	 	 	 
	 	 	By:	 /s/ Jessica Woolf
	 	 	Name: Jessica Woolf
	 	 	Title: Authorized Signatory
	 	 	 	 
	 	 	 	 
	 	 	DUNLAP FUNDING LLC
	 	 	 	 
	 	 	By: 	/s/ Jessica Woolf
	 	 	Name: Jessica Woolf
	 	 	Title: Authorized Signatory

 

 

 

 

 

 

    [Signature Page to Limited Waiver and Consent]

     

    

 

Annex A

 

LIMITED WAIVER TO THIRD AMENDED AND RESTATED
CREDIT AGREEMENT

 

 

THIS LIMITED WAIVER TO THIRD
AMENDED AND RESTATED CREDIT AGREEMENT (this “Waiver”), dated as of April 9, 2021, is entered into by and among WILMINGTON
TRUST, NATIONAL ASSOCIATION, as administrative agent and collateral agent for Lenders (in such capacity, together with its successors
and assigns in such capacity, “Agent”), the Lenders identified on the signature pages hereof, and SEQUENTIAL BRANDS
GROUP, INC., a Delaware corporation (the “Borrower”), and acknowledged and agreed to by each of the Guarantors
identified on the signature pages hereof.

 

RECITALS

 

A.       The
Borrower, certain subsidiaries of the Borrower party thereto from time to time, the lenders party thereto from time to time (the “Lenders”)
and Agent have previously entered into that certain Third Amended and Restated Credit Agreement dated as of July 1, 2016 (as the same
has been amended, restated, amended and restated, supplemented, or otherwise modified prior to the date hereof, the “Credit Agreement”),
pursuant to which the Lenders have made certain loans and financial accommodations available to the Borrower. Terms used herein without
definition shall have the meanings ascribed to them in the Credit Agreement.

 

B.       The
Borrower has requested that the Lenders (x)(i) waive the Default that has arisen under Section 6.01(a) of the Credit Agreement due to
the failure of the Borrower to deliver the audited financial statements of the Borrower and its Subsidiaries for the Fiscal Year ended
December 31, 2020 (“2020 Financials”) in accordance with the provisions set forth in Section 6.01(a) of the Credit
Agreement (“2020 Financials Default”), (ii) waive the Default that has arisen under Section 6.02(a) of the Credit Agreement
due to the failure of the Borrower to deliver the certificate of its Registered Public Accounting Firm for the Fiscal Year ended December
31, 2020 (“2020 Accountant’s Certificate”) in accordance with the provisions set forth in Section 6.02(a) of
the Credit Agreement (the “2020 Accountant’s Certificate Default”), (iii) waive the Default that has arisen under
Section 6.02(b) of the Credit Agreement due to the failure of the Borrower to deliver the Compliance Certificate for the Fiscal Year ended
December 31, 2020 (“2020 Compliance Certificate”) in accordance with the provisions set forth in Section 6.02(b) of
the Credit Agreement (the “2020 Compliance Certificate Default”), and (iv) waive any Event of Default that has arisen
under Section 8.01(e) of the Credit Agreement due to the failure of the Borrower to (w) deliver the audited financial statements of the
Borrower and its Subsidiaries for the Fiscal Year ended December 31, 2020 (the “BoA Financials”) in accordance with
the provisions set forth in Section 6.01(a) of the BoA Credit Agreement (the “BoA Financials Default”), (x) deliver
the certificate of the Borrower’s Registered Public Accounting Firm (as defined in the BoA Credit Agreement) for the Fiscal Year
ended December 31, 2020 (the “BoA Accountant’s Certificate”) in accordance with the provisions set forth in Section
6.02(a) of the BoA Credit Agreement (the “BoA Accountant’s Certificate Default”) and (y) deliver the Compliance
Certificate for the Fiscal Year ended December 31, 2020 (“BoA Compliance Certificate”) in accordance with the provisions
set forth in Section 6.02(b) of the BoA Credit Agreement (the “BoA Compliance Certificate Default”; and together with
the 2020 Financials Default, the 2020 Accountant’s Certificate Default, the 2020 Compliance Certificate Default, the BoA Financials
Default and the BoA Accountant’s Certificate Default, collectively, the “Acknowledged Defaults”) and (y) extend
the deadline under the Credit Agreement to deliver to 2020 Financials, the 2020 Accountant’s Certificate and the 2020 Compliance
Certificate to April 20, 2021.

 

    

     

    

 

 

C.       The
Agent (at the direction of the Lenders) and Lenders (constituting the Required Lenders) party hereto are willing to grant a limited waiver
with respect to the Acknowledged Defaults (such waiver, the “Requested Waiver”) under the Credit Agreement, subject
to the terms and conditions set forth herein.

 

D.       The
Borrower is entering into this Waiver with the understanding and agreement that, except as specifically provided herein, none of Agent’s
or any Lender’s rights or remedies as set forth in the Credit Agreement or the other Loan Documents are being waived or modified
by the terms of this Waiver.

 

AGREEMENT

 

NOW, THEREFORE, in consideration
of the foregoing and the mutual covenants herein contained, and for other good and valuable consideration, the receipt and sufficiency
of which are hereby acknowledged, the parties hereby agree as follows:

 

1.             
Limited Waiver. Subject to the satisfaction of the conditions precedent set forth in Section 2 of this Waiver, Agent
(at the direction of the Lenders) and the Lenders party hereto (constituting the Required Lenders) hereby grant the Requested Waiver;
provided, that the 2020 Financials, the 2020 Accountant’s Certificate, the 2020 Compliance Certificate, the BoA Financials, the
BoA Accountant’s Certificate and the BoA Compliance Certificate are delivered to the Administrative Agent, for delivery to the Lenders
on or before April 20, 2021 (or such later date to which the Required Lenders may agree in writing, which shall include, for the avoidance
of doubt, written confirmation by e-mail); provided, further, that the foregoing waiver shall be effective only to the extent
specifically set forth herein and shall not (a) be construed as a consent to or waiver of (i) any breach, Default or Event of Default
other than as specifically waived herein, or (ii) any breach, Default or Event of Default of which Agent or any of the Lenders have not
been informed by any Loan Party, (b) affect the right of Agent or any of the Lenders to demand compliance by each Loan Party with all
terms and conditions of the Credit Agreement and the Loan Documents, except as specifically consented to, modified or waived by the terms
hereof, (c) be deemed a consent to or waiver of any future transaction or action on the part of any Loan Party requiring the Lenders’
or the Required Lenders’ consent or approval under the Credit Agreement or the Loan Documents, or (d) except as set forth specifically
herein, diminish, prejudice or waive any of Agent’s or any Lender’s rights and remedies under the Credit Agreement, any of
the other Loan Documents, or applicable law, whether arising as a consequence of any Default or Event of Default which may now exist or
otherwise, and Agent and each of the Lenders hereby reserve all of such rights and remedies. Upon the expiration of the Requested Waiver,
each Acknowledged Default, to the extent not cured prior to the expiration of the Requested Waiver, shall constitute an immediate Event
of Default under the Credit Agreement. For the avoidance of doubt and notwithstanding anything herein to the contrary, during the period
in which the Requested Waiver is in effect, to the extent any provision of the Credit Agreement or any other Loan Document is qualified
by, or requires the absence of, any Default, a Default shall be deemed to have occurred for purposes of such provisions as a result of
the Acknowledged Defaults notwithstanding the Requested Waiver.

 

    

     

    

 

2.             
Conditions Precedent to Effectiveness of this Waiver. This Waiver shall not become effective until all of the following
conditions precedent shall have been satisfied in the sole discretion of the Administrative Agent and the Required Lenders:

 

(a)              
Agent shall have received fully executed counterparts to this Waiver, in form and substance satisfactory to the Required Lenders.

 

(b)              
Agent shall have received fully executed counterparts of a limited waiver letter (the “BoA Waiver”) in respect
of the BoA Credit Agreement, in form and substance satisfactory to the Required Lenders, and the conditions precedent set forth therein
shall have been satisfied.

 

3.             
Release.

 

In consideration of the Lenders’
willingness to enter into this Limited Waiver, each Loan Party hereby releases and forever discharges the Agent and each Lender and the
Agent’s and each Lender’s respective predecessors, successors, assigns, officers, managers, directors, employees, agents,
attorneys, representatives, and affiliates (hereinafter all of the above collectively referred to as the “Bank Group”),
from any and all claims, counterclaims, demands, damages, debts, suits, liabilities, actions and causes of action of any nature whatsoever,
including, without limitation, all claims, demands, and causes of action for contribution and indemnity, whether arising at law or in
equity, whether known or unknown, whether liability be direct or indirect, liquidated or unliquidated, whether absolute or contingent,
foreseen or unforeseen, and whether or not heretofore asserted, which any Loan Party may have or claim to have against any of the Bank
Group in any way related to or connected with the Loan Documents and the transactions contemplated thereby.

 

4.             
Representations and Warranties. The Borrower represents and warrants as follows:

 

(a)              
Authority. The Borrower has the requisite corporate power and authority to execute and deliver this Waiver, and to perform
its obligations hereunder and under the Loan Documents (as amended or modified hereby) to which it is a party. The execution, delivery
and performance by the Borrower of this Waiver have been duly approved by all necessary corporate action, have received all necessary
governmental approval, if any, and do not contravene (i) any material provision of any law or (ii) where such contravention could individually
or in the aggregate reasonably be expected to result in a Material Adverse Effect, any material contractual restriction binding on the
Borrower. No other corporate proceedings are necessary to consummate such transactions.

 

(b)              
Enforceability. This Waiver has been duly executed and delivered by the Borrower. This Waiver and each Loan Document (as
amended or modified hereby) are the legal, valid and binding obligations of the Borrower, enforceable against the Borrower in accordance
with their respective terms, and are in full force and effect.

 

    

     

    

 

(c)              
Representations and Warranties. Immediately after giving effect to the terms of this Waiver, the representations and warranties
contained in each Loan Document (other than any such representations or warranties that, by their terms, are specifically made as of a
date other than the date hereof) are true and correct in all material respects (except that such materiality qualifier shall not be applicable
to any portion of any representation and warranty that is already qualified or modified by materiality in the text thereof) on and as
of the date hereof as though made on and as of the date hereof.

 

5.             
No Default. Immediately after giving effect to the terms of this Waiver, no event has occurred and is continuing that constitutes
a Default or Event of Default.

 

6.             
Binding Effect. The terms and provisions hereof shall be binding upon and inure to the benefit of the parties hereto and
their heirs, representatives, successors and assigns.

 

7.             
Reaffirmation of Obligations. The Borrower and each Guarantor hereby ratifies the Loan Documents and acknowledges and reaffirms
(a) that it is bound by all terms of the Loan Documents applicable to it and (b) that it is responsible for the observance and
full performance of its respective Obligations.

 

8.             
Loan Document. This Waiver shall constitute a Loan Document under the terms of the Amended Credit Agreement.

 

9.             
Multiple Counterparts. This Waiver may be executed in counterparts (and by different parties hereto in different counterparts),
each of which shall constitute an original, but all of which when taken together shall constitute a single contract. Delivery of an executed
counterpart of a signature page of this Waiver by telecopy, pdf or other electronic transmission shall be as effective as delivery of
a manually executed counterpart of this Waiver.

 

10.             
Governing Law. THIS WAIVER AND ANY CLAIMS, CONTROVERSY, DISPUTE OR CAUSE OF ACTION, WHETHER IN LAW OR EQUITY, WHETHER IN
CONTRACT OR IN TORT OR OTHERWISE BASED UPON, ARISING OUT OF OR RELATING TO THIS WAIVER AND THE TRANSACTIONS CONTEMPLATED HEREBY SHALL
BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAW OF THE STATE OF NEW YORK.

 

11.             
Consent to Jurisdiction; Service of Process; Waiver of Jury Trial. The jurisdiction, service of process and waiver of jury
trial provisions set forth in Sections 10.14 and 10.15 of the Amended Credit Agreement are hereby incorporated by reference, mutatis
mutandis.

 

12.             
Agent Authorization. Each of the undersigned Lenders hereby authorizes and directs Agent to execute and deliver this Waiver
on its behalf and, by its execution below, each of the undersigned Lenders agrees to be bound by the terms and conditions of this Waiver.

 

 

 

[Remainder of Page Left Intentionally
Blank]

 

    

     

    

 

IN WITNESS WHEREOF,
the parties hereto have caused this Waiver to be executed and delivered as of the date first above written.

 

	 	
    WILMINGTON TRUST, NATIONAL ASSOCIATION,

    as Agent

	 	 
	 	
    

    By:
	
    /s/ David Bergstrom

	 	Name:	David Bergstrom
	 	Title:	Vice President

 

 

 

 

 

 

 

 

 

 

    	 

    	 

    

 

LENDERS:

 

 

	 	FS KKR CAPITAL CORP.
	 	 	 
	 	By:	 /s/ Jessica Woolf
	 	Name: Jessica Woolf
	 	Title: Authorized Signatory
	 	 	 
	 	 	 
	 	DARBY CREEK LLC
	 	 	 
	 	By:	 /s/ Jessica Woolf
	 	Name: Jessica Woolf
	 	Title: Authorized Signatory
	 	 	 
	 	 	 
	 	FS KKR CAPITAL CORP. II
	 	 	 
	 	By:	 /s/ Jessica Woolf
	 	Name: Jessica Woolf
	 	Title: Authorized Signatory
	 	 	 
	 	 	 
	 	DUNLAP FUNDING LLC
	 	 	 
	 	By:	 /s/ Jessica Woolf
	 	Name: Jessica Woolf
	 	Title: Authorized Signatory

 

 

 

    

     

    

 

ACKNOWLEDGED AND AGREED:

 

 

BORROWER:

 

 

	 	SEQUENTIAL BRANDS GROUP, INC.
	 	a Delaware corporation
	 	 	 
	 	By:	/s/
Lorraine DiSanto
	 	Name:	Lorraine
DiSanto
	 	Title: 	Chief Financial Officer

 

GUARANTORS:

 

	 	SQBG, INC.
	 	 	 
	 	By:	 /s/ Lorraine DiSanto
	 	Name:	 Lorraine DiSanto
	 	Title: 	Chief Financial Officer
	 	 	 
	 	SEQUENTIAL LICENSING, INC.
	 	 	 
	 	By:	 /s/ Lorraine DiSanto
	 	Name:	 Lorraine DiSanto
	 	Title: 	Chief Financial Officer
	 	 	 
	 	WILLIAM RAST LICENSING, LLC
	 	 	 
	 	By: 	/s/ Lorraine DiSanto
	 	Name:	 Lorraine DiSanto
	 	Title: 	Chief Financial Officer 
	 	 	 
	 	HEELING SPORTS LIMITED 
	 	 	 
	 	By: 	/s/ Lorraine DiSanto
	 	Name:	 Lorraine DiSanto
	 	Title: 	Chief Financial Office
	 	 	 
	 	B®AND MATTER, LLC
	 	 	 
	 	By: 	/s/ Lorraine DiSanto
	 	Name:	 Lorraine DiSanto
	 	Title: 	Chief Financial Officer

 

 

    

     

    

 

 

 

	 	SB G FM, LLC
	 	 	 
	 	By:	 /s/ Lorraine DiSanto
	 	Name:	 Lorraine DiSanto
	 	Title: 	Chief Financial Officer
	 	 	 
	 	 	 
	 	SBG UNIVERSE BRANDS, LLC
	 	 	 
	 	By:	 /s/ Lorraine DiSanto
	 	Name:	 Lorraine DiSanto
	 	Title: 	Chief Financial Officer
	 	 	 
	 	GALAXY BRANDS LLC
	 	 	 
	 	By:	 /s/ Lorraine DiSanto
	 	Name:	 Lorraine DiSanto
	 	Title: 	Chief Financial Officer
	 	 	 
	 	The Basketball Marketing Company, Inc. 
	 	 	 
	 	By: 	/s/ Lorraine DiSanto
	 	Name:	 Lorraine DiSanto
	 	Title: 	Chief Financial Officer 
	 	 
	 	AMERICAN SPORTING GOODS CORPORATION
	 	 	 
	 	By: 	/s/ Lorraine DiSanto
	 	Name:	 Lorraine DiSanto
	 	Title: 	Chief Financial Office
	 	 	 
	 	LNT BRANDS LLC 
	 	 	 
	 	By: 	/s/ Lorraine DiSanto
	 	Name:	 Lorraine DiSanto
	 	Title: 	Chief Financial Officer
	 	 	 
	 	 	 
	 	JOE’S HOLDINGS LLC
	 	 	 
	 	By: 	/s/ Lorraine DiSanto
	 	Name:	 Lorraine DiSanto
	 	Title: 	Chief Financial Officer

  

 

    

     

    

 

 

	 	GAIAM BRAND HOLDCO, LLC
	 	 	 
	 	By:	 /s/ Lorraine DiSanto
	 	Name:	 Lorraine DiSanto
	 	Title: 	Chief Financial Officer
	 	 	 
	 	 	 
	 	GAIAM AMERICAS, INC.
	 	 	 
	 	By:	 /s/ Lorraine DiSanto
	 	Name:	 Lorraine DiSanto
	 	Title: 	Chief Financial Officer
	 	 	 
	 	SBG-GAIAM HOLDINGS, LLC
	 	 	 
	 	By:	 /s/ Lorraine DiSanto
	 	Name:	 Lorraine DiSanto
	 	Title: 	Chief Financial Officer

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