Document:

ex_194437.htm

Exhibit 10.1

 

Execution Version 

 

EMPLOYMENT AGREEMENT

 

This Employment Agreement (the “Agreement") is made as of July 20, 2020, by and between Windtree Therapeutics, Inc., a Delaware corporation (the "Company"), and John P. Hamill ("Executive"), subject to the terms and conditions defined in this Agreement.

 

WHEREAS, the Company and Executive desire that Executive be employed by the Company to act as the Company’s Chief Financial Officer, subject to the terms and conditions set forth in this Agreement. Executive’s employment shall also be subject to such policies and procedures as the Company may from time to time implement.

 

NOW, THEREFORE, in consideration of the covenants contained herein, and for other valuable consideration, the Company and Executive hereby agree as follows:

 

1.     Certain Definitions. Certain definitions used herein shall have the meanings set forth on Exhibit A attached hereto.

 

2.     Term of the Agreement. The term (“Term”) of this Agreement shall commence on the date first above written and shall continue until terminated as provided in section 7 hereof. Upon the occurrence of a Change of Control during the term of this Agreement, including any extensions hereof, this Agreement shall automatically be extended until the end of the Effective Period. On the Date of Termination, Executive acknowledges that Executive shall immediately be deemed to have resigned all employment and related job duties and responsibilities with the Company, including, without limitation any and all positions on any committees or boards of the Company or any affiliated company. Executive agrees to sign all reasonable documentation evidencing the foregoing as may be presented to Executive for signature by the Company.

 

3.     Executive's Duties and Obligations.

 

(a)     Duties. Executive shall serve as the Company's Senior Vice President and Chief Financial Officer. Executive shall be responsible for all duties customarily associated with a Chief Financial Officer in a publicly-traded company.

 

(b)     Location of Employment. Executive's principal place of business shall be at the Company's headquarters. In addition, Executive acknowledges and agrees that the performance by Executive of Executive’s duties shall require frequent travel including, without limitation, overseas travel from time to time.

 

(c)     Proprietary Information and Inventions Matters. In consideration of the covenants contained herein, Executive has executed and agrees to be bound by the Company's standard form of Proprietary Information and Inventions, Non-Solicitation and Non-Competition Agreement (the "Confidentiality Agreement"), a form of which is attached to this Agreement as Exhibit B. Executive shall comply at all times with the terms and conditions of the Confidentiality Agreement and all other reasonable policies of the Company governing its confidential and proprietary information.

 

 

 

 

4.     Devotion of Time to Company's Business.

 

(a)     Full-Time Efforts. During Executive’s employment with the Company, Executive shall devote substantially all of Executive’s business time, attention and efforts to the proper performance of Executive’s implicit and explicit duties and obligations hereunder to the reasonable satisfaction of the Company.

 

(b)     No Other Employment or Providing Services. During Executive’s employment with the Company, Executive shall not, except as otherwise provided herein, directly or indirectly, render any services of a commercial or professional nature to any other person or organization, whether for compensation or otherwise, without the prior written consent of the Executive Committee or the Board of Directors of the Company (the “Board”).

 

5.     Compensation and Benefits.

 

(a)     Base Compensation. During the Term, the Company shall pay to Executive base annual compensation ("Base Salary") of $370,000, payable in accordance with the Company's regular payroll practices and less all required withholdings. Executive’s Base Salary shall be reviewed annually and may be increased based on an assessment of Executive's performance, the performance of the Company, inflation, the then prevailing salary scales for comparable positions and other relevant factors; provided, however, that any increase in Base Salary shall be solely within the discretion of the Company. Executive’s Base Salary shall not be subject to reduction from the level in effect hereunder from time to time, other than pursuant to a salary reduction program of general application to contract executives of the Company.

 

(b)     Annual Bonuses. During the Term, Executive shall be eligible for such year-end bonus, which may be paid in either cash or equity, or both, based upon a target Annual Bonus Amount of 40% of Base Salary, as may be awarded solely at the discretion of the Compensation Committee of the Board after consultation with the Company’s Chief Executive Officer, provided, that the Company shall be under no obligation whatsoever to pay such discretionary year-end bonus for any year. Any such equity bonus shall contain such rights and features as are typically afforded to other Company employees of a similar level in connection with comparable equity bonuses awarded by the Company. Except as otherwise provided in Section 7, in order for the Executive to receive payment of any such annual bonus, the Executive must be employed by the Company as of the date the annual bonus is paid.

 

(c)     Signing Bonus. The Company shall pay Executive a cash signing bonus of $10,000, payable in the Company’s July 31, 2020 payroll period and subject to Executive’s remaining employed through such payment date.

 

(d)     Benefits. During the Term, Executive shall be entitled to participate in all employee benefit plans, programs and arrangements made available generally to the Company's senior executives or to its employees on substantially the same basis that such benefits are provided to such executives of a similar level or to other employees (including, without limitation, profit-sharing, savings and other retirement plans (e.g., a 401(k) plan) or programs, medical, dental, hospitalization, vision, short-term and long-term disability and life insurance plans or programs, accidental death and dismemberment protection, travel accident insurance, and any other employee welfare benefit plans or programs that may be sponsored by the Company from time to time, including any plans or programs that supplement the above-listed types of plans or programs, whether funded or unfunded); provided, however, that nothing in this Agreement shall be construed to require the Company to establish or maintain any such plans, programs or arrangements.

 

(e)     Vacations. During the Term, Executive shall be entitled to 20 days paid vacation per year, or such greater amount as may be earned under the Company’s standard vacation policy, to be earned ratably throughout the year. Vacation days may not be carried from one year to the next in accordance with the Company vacation policy.

 

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(f)     Reimbursement of Business Expenses. Executive is authorized to incur reasonable expenses in carrying out Executive’s duties and responsibilities under this Agreement and the Company shall reimburse Executive for all such expenses, in accordance with reasonable policies of the Company.

 

6.     Change of Control Benefits. Notwithstanding any provision to the contrary in any of the Company’s long-term incentive plans or in any stock option or restricted stock agreement between the Company and Executive, all shares of stock and all options to acquire Company stock held by Executive shall accelerate and become fully vested and, with respect to restricted stock, all restrictions shall be lifted upon the Change of Control Date, provided that Executive is actively employed by the Company on such Change of Control Date.

 

7.     Termination of Employment.

 

(a)     Termination by the Company for Cause or Termination by Executive without Good Reason, Death or Disability.

 

(i)      In the event of a termination of Executive’s employment by the Company for Cause, a termination by Executive without Good Reason, or in the event this Agreement terminates by reason of the death or Disability of Executive, Executive shall be entitled to any unpaid compensation accrued through the last day of Executive's employment, a lump sum payment in respect of all accrued but unused vacation days at Executive’s Base Salary in effect on the date such vacation was earned, and payment of any other amounts owing to Executive but not yet paid, less any amounts owed by Executive to the Company. Executive shall not be entitled to receive any other compensation or benefits from the Company whatsoever (except as and to the extent the continuation of certain benefits is required by law).

 

(ii)      In the case of a termination due to death or Disability, notwithstanding any provision to the contrary in any stock option or restricted stock agreement between the Company and Executive, all shares of stock and all options to acquire Company stock held by Executive shall accelerate and become fully vested upon the Date of Termination (and all options shall thereupon become fully exercisable) and the Company will pay any earned but unpaid annual bonus for the fiscal year preceding the Termination Date.

 

(b)     Termination by the Company without Cause or by Executive for Good Reason. If (x) Executive’s employment is terminated by the Company other than for Cause, death or Disability (i.e., without Cause) or (y) Executive terminates employment with Good Reason, then Executive will receive the amounts set forth in Section 7(a)(i), any other additional benefits then due or earned in accordance with generally applicable employee benefit plans and programs of the Company, and, on the condition that the Executive signs a separation agreement containing a plenary release of claims in a form acceptable to the Company within fifty (50) days after the Date of Termination (or such shorter period specified in such plenary release) and such plenary release becomes final, binding and irrevocable, the Executive shall also be entitled to receive the following from the Company:

 

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(i)      Any earned but unpaid annual bonus for the fiscal year preceding the Termination Date and a pro rata bonus equal to the annual bonus Executive would have earned absent his separation multiplied by the fraction obtained by dividing the number of days in the year through the Date of Termination by 365, which amount shall be paid when the Company’s other employment contract executives are paid;

 

(ii)      An amount equal to the Executive’s Base Salary then in effect (determined without regard to any reduction in such Base Salary constituting Good Reason), payable in equal installments in accordance with the Company’s regular payroll schedule, from the Date of Termination to the date that is 12 months after the Date of Termination (the “Severance Period”); provided, however, that each installment payable before the plenary release becomes final, binding and irrevocable shall not be paid to the Executive until such plenary release becomes final, binding and irrevocable;

 

(iii)      During the Severance Period, if Executive elects to continue Company medical benefits through the Consolidated Omnibus Budget Reconciliation Act of 1985 (“COBRA”), the Company shall continue to pay the Company’s costs of such benefits as if Executive continued under the same plans and on the same terms and conditions as an active employee of the Company. Company’s obligation under this Section 7(b)(iii) shall terminate if Executive becomes eligible for group health plan benefits under a subsequent employer’s plan or a spouse’s employer plan; and

 

(iv)       Upon the date that the plenary release becomes final, binding and irrevocable, notwithstanding any provision to the contrary in any stock option or restricted stock agreement between the Company and the Executive, all vested stock options to acquire Company stock and all other similar equity awards held by the Executive as of the Date of Termination shall continue to be exercisable during the Severance Period, subject to earlier exercise in the event of a Change of Control pursuant to the plan governing such awards.

 

Notwithstanding the foregoing, if Executive engages in a material breach of any provision of this Agreement or the Executive’s Confidentiality Agreement during the Severance Period, then the Company’s continuing obligations under this Section 7(b) shall cease as of the date of the breach and the Executive shall be entitled to no further payments hereunder.

 

(c)     Termination in connection with a Change of Control. If Executive’s employment is terminated by the Company without Cause or by Executive for Good Reason during the Effective Period, and on the condition that the Executive signs a separation agreement containing a plenary release of claims in a form acceptable to the Company within fifty (50) days after the Date of Termination (or such shorter period specified in such plenary release) and such plenary release becomes final, binding and irrevocable, then Executive shall be entitled to receive the following from the Company:

 

(i)      All amounts and benefits described in Section 7(a)(i) above and any other additional benefits then due or earned in accordance with generally applicable employee benefit plans and programs of the Company;

 

(ii)      Within 10 days after the Date of Termination, any earned but unpaid annual bonus for the fiscal year preceding the Termination Date;

 

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(iii)      Within 10 days after the Date of Termination, a lump sum cash payment in an amount equal to 1.5 times the sum of (A) Executive’s Base Salary then in effect (determined without regard to any reduction in such Base Salary constituting Good Reason) and (B) the Annual Bonus Amount; provided, however, that if Executive’s employment is terminated prior to the consummation of a Change of Control but under circumstances that would cause the Change of Control Date to precede the date that the Change of Control is consummated, such amount will be paid in equal installments in accordance with the Company’s regular payroll schedule over the Severance Period described in Section 7(b)(ii);

 

(iv)      If Executive elects to continue Company medical benefits under COBRA, for a period of 18 months following the Date of Termination (the “Benefit Period”), the Company shall continue to pay the Company’s costs of such benefits as Executive elects to continue under the same plans and on the same terms and conditions as such benefits are provided to active employees of the Company. Company’s obligation under this Section 7(b)(iii) shall terminate if Executive becomes eligible for group health plan benefits under a subsequent employer’s plan or a spouse’s employer plan;

 

(v)      Notwithstanding any provision to the contrary in any stock option or restricted stock agreement between the Company and Executive, all shares of stock and all options to acquire Company stock held by Executive shall accelerate and become fully vested upon the Date of Termination (and all options shall thereupon become fully exercisable), and all stock options shall continue to be exercisable for the remainder of their stated terms, subject to earlier exercise pursuant to the plan governing such awards.

 

Notwithstanding the foregoing, if Executive engages in a material breach of any provision of this Agreement or Executive’s Confidentiality Agreement during the Severance Period, and such breach is not cured within five business days after receipt from the Company of notice thereof, then the Company’s continuing obligations under this Section 7(c) shall cease as of the date of the breach and the Executive shall be entitled to no further payments or benefits hereunder.

 

8.     Notice of Termination.

 

(a)     Any termination of Executive’s employment by the Company for Cause, or by Executive for Good Reason shall be communicated by a Notice of Termination to the other party hereto given in accordance with Section 12. For purposes of this Agreement, a “Notice of Termination” means a written notice which: (i) is given at least 10 days prior to the Date of Termination (at least 30 days in the case of Notice of Termination given by Executive for Good Reason), (ii) indicates the specific termination provision in this Agreement relied upon, (iii) to the extent applicable, sets forth in reasonable detail the facts and circumstances claimed to provide a basis for termination of Executive’s employment under the provision so indicated, and (iv) specifies the employment termination date. The failure to set forth in the Notice of Termination any fact or circumstance which contributes to a showing of Good Reason or Cause will not waive any right of the party giving the Notice of Termination hereunder or preclude such party from asserting such fact or circumstance in enforcing its rights hereunder.

 

(b)     A Termination of Employment of Executive will not be deemed to be for Good Reason unless Executive gives the Notice of Termination provided for herein within 30 days after Executive has actual knowledge of the act or omission of the Company constituting such Good Reason and Executive gives the Company a 30 day cure period to rectify or correct the condition or event that constitutes Good Reason and Executive terminates his employment within 30 days of the date that Company’s failure to cure deadline has expired.

 

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9.     Mitigation of Damages. Executive will not be required to mitigate damages or the amount of any payment or benefit provided for under this Agreement by seeking other employment or otherwise. Except as otherwise provided in Sections 7(b)(iv) and 7(c)(iv), the amount of any payment or benefit provided for under this Agreement will not be reduced by any compensation or benefits earned by Executive as the result of self-employment or employment by another employer or otherwise.

 

10.   Excess Parachute Excise Tax.

 

(a)     Anything in this Agreement to the contrary notwithstanding, in the event it shall be determined that any payment, award, benefit or distribution (including any acceleration) by the Company or any entity which effectuates a transaction described in Section 280G(b)(2)(A)(i) of the Code to or for the benefit of Executive (whether pursuant to the terms of this Agreement or otherwise, but determined without regard to any additional payments required under this Section 10) (a “Payment”) would be subject to the excise tax imposed by Section 4999 of the Code or any interest or penalties are incurred with respect to such excise tax by Executive (such excise tax, together with any such interest and penalties, are hereinafter collectively referred to as the “Excise Tax”), the Company will automatically reduce such Payments to the extent, but only to the extent, necessary so that no portion of the remaining Payments will be subject to the Excise Tax, unless the amount of such Payments that the Executive would retain after payment of the Excise Tax and all applicable Federal, state and local income taxes without such reduction would exceed the amount of such Payments that the Executive would retain after payment of all applicable Federal, state and local taxes after applying such reduction. Unless otherwise elected by the Executive, to the extent permitted under Code Section 409A, the Company shall reduce or eliminate the payments by first reducing or eliminating any cash severance benefits (with the payments to be made furthest in the future being reduced first), then by reducing or eliminating any accelerated vesting of stock options or similar awards, then by reducing or eliminating any accelerated vesting of restricted stock or similar awards, then by reducing or eliminating any other remaining Payments; provided, that no such reduction or elimination shall apply to any non-qualified deferred compensation amounts (within the meaning of Section 409A of the Code) to the extent such reduction or elimination would accelerate or defer the timing of such payment in a manner that does not comply with Section 409A of the Code.

 

(b)     All determinations required to be made under this Section 10, including the assumptions to be utilized in arriving at such determination, shall be made by the Company’s independent auditors or such other professional firm or certified public accounting firm of national standing reasonably as may be designated by the Company (the “Accounting Firm”) which shall provide detailed supporting calculations both to the Company and Executive within 15 business days of the receipt of notice from Executive that there has been a Payment, or such earlier time as is requested by the Company. All fees and expenses of the Accounting Firm shall be borne solely by the Company. If the Accounting Firm determines that no Excise Tax is payable by Executive, it shall furnish Executive with a written opinion to such effect, and to the effect that failure to report the Excise Tax, if any, on Executive’s applicable federal income tax return will not result in the imposition of a negligence or similar penalty. Any determination by the Accounting Firm shall be binding upon the Company and Executive.

 

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11.     Legal Fees. All reasonable legal fees and related expenses (including costs of experts, evidence and counsel) paid or incurred by Executive pursuant to any claim, dispute or question of interpretation relating to this Agreement shall be paid or reimbursed by the Company if Executive is successful on the merits pursuant to a legal judgment or arbitration. Except as provided in this Section 11, each party shall be responsible for its own legal fees and expenses in connection with any claim or dispute relating to this Agreement.

 

12.     Notices. All notices, requests, demands and other communications hereunder shall be in writing and shall be deemed to have been duly given if delivered by hand or mailed within the continental United States by first class certified mail, return receipt requested, postage prepaid, addressed as follows:

 

if to the Board or the Company:

 

Windtree Therapeutics, Inc.

2600 Kelly Road, Suite 100

Warrington, PA 18976

Attn: General Counsel

 

if to Executive:

 

                                                   

The address on file with the records of the Company

 

Addresses may be changed by written notice sent to the other party at the last recorded address of that party.

 

13.     Withholding. The Company shall be entitled to withhold from payments due hereunder any required federal, state or local withholding or other taxes.

 

14.     Entire Agreement. This Agreement contains the entire agreement between the parties with respect to the subject matter hereof and supersedes the Employment Agreement and all other prior agreements, written or oral, with respect thereto.

 

15.     Arbitration.

 

(a)     If the parties are unable to resolve any dispute or claim relating directly or indirectly to this Agreement or any dispute or claim between Executive and the Company or its officers, directors, agents, or employees (a “Dispute”), then either party may require the matter to be settled by final and binding arbitration by sending written notice of such election to the other party clearly marked “Arbitration Demand.” Such Dispute shall be arbitrated in accordance with the terms and conditions of this Section 15. Notwithstanding the foregoing, either party may apply to a court of competent jurisdiction for a temporary restraining order, a preliminary injunction, or other equitable relief to preserve the status quo or prevent irreparable harm.

 

(b)     The Dispute shall be resolved by a single arbitrator in an arbitration administered by the American Arbitration Association in accordance with its Employment Arbitration Rules and judgment upon the award rendered by the arbitrator may be entered in any court having jurisdiction thereof. The decision of the arbitrator shall be final and binding on the parties, and specific performance giving effect to the decision of the arbitrator may be ordered by any court of competent jurisdiction.

 

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(c)     Nothing contained herein shall operate to prevent either party from asserting counterclaim(s) in any arbitration commenced in accordance with this Agreement, and any such party need not comply with the procedural provisions of this Section 15 in order to assert such counterclaim(s).

 

(d)     The arbitration shall be filed with the office of the American Arbitration Association ("AAA") located in Philadelphia, Pennsylvania or such other AAA office as the parties may agree upon (without any obligation to so agree). The arbitration shall be conducted pursuant to the Employment Arbitration Rules of AAA as in effect at the time of the arbitration hearing, such arbitration to be completed in a 60-day period. In addition, the following rules and procedures shall apply to the arbitration:

 

(i)      The arbitrator shall have the sole authority to decide whether or not any Dispute between the parties is arbitrable and whether the party presenting the issues to be arbitrated has satisfied the conditions precedent to such party's right to commence arbitration as required by this Section 15.

 

(ii)      The decision of the arbitrator, which shall be in writing and state the findings, the facts and conclusions of law upon which the decision is based, shall be final and binding upon the parties, who shall forthwith comply after receipt thereof. Judgment upon the award rendered by the arbitrator may be entered by any competent court. Each party submits itself to the jurisdiction of any such court, but only for the entry and enforcement to judgment with respect to the decision of the arbitrator hereunder.

 

(iii)      The arbitrator shall have the power to grant all legal and equitable remedies (including, without limitation, specific performance) and award compensatory and punitive damages if authorized by applicable law.

 

(iv)      Except as provided in Section 11, the parties shall bear their own costs in preparing for and participating in the resolution of any Dispute pursuant to this Section 15, and the costs of the arbitrator(s) shall be equally divided between the parties.

 

(v)      Except as provided in the last sentence of Section 15(a), the provisions of this Section 15 shall be a complete defense to any suit, action or proceeding instituted in any federal, state or local court or before any administrative tribunal with respect to any Dispute arising in connection with this Agreement. Any party commencing a lawsuit in violation of this Section 15 shall pay the costs of the other party, including, without limitation, reasonable attorney’s fees and defense costs.

 

16.     Miscellaneous.

 

(a)     Governing Law. This Agreement shall be interpreted, construed, governed and enforced according to the laws of the Commonwealth of Pennsylvania without regard to the application of choice of law rules.

 

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(b)     Amendments. No amendment or modification of the terms or conditions of this Agreement shall be valid unless in writing and signed by the parties hereto.

 

(c)     Severability. If one or more provisions of this Agreement are held to be invalid or unenforceable under applicable law, such provisions shall be construed, if possible, so as to be enforceable under applicable law, or such provisions shall be excluded from this Agreement and the balance of the Agreement shall be interpreted as if such provision were so excluded and shall be enforceable in accordance with its terms.

 

(d)     Binding Effect. This Agreement shall be binding upon and inure to the benefit of the beneficiaries, heirs and representatives of Executive (including the Beneficiary) and the successors and assigns of the Company. The Company shall require any successor (whether direct or indirect, by purchase, merger, reorganization, consolidation, acquisition of property or stock, liquidation, or otherwise) to all or substantially all of its assets to assume and agree to perform this Agreement in the same manner and to the same extent that the Company would be required to perform this Agreement if no such succession had taken place. Regardless whether such agreement is executed, this Agreement shall be binding upon any successor of the Company in accordance with the operation of law and such successor shall be deemed the Company for purposes of this Agreement.

 

(e)     Successors and Assigns. Except as provided in Section16(d) in the case of the Company, or to the Beneficiary in the case of the death of Executive, this Agreement is not assignable by any party and no payment to be made hereunder shall be subject to anticipation, alienation, sale, transfer, assignment, pledge, encumbrance or other charge.

 

(f)     Remedies Cumulative; No Waiver. No remedy conferred upon either party by this Agreement is intended to be exclusive of any other remedy, and each and every such remedy shall be cumulative and shall be in addition to any other remedy given hereunder or now or hereafter existing at law or in equity. No delay or omission by either party in exercising any right, remedy or power hereunder or existing at law or in equity shall be construed as a waiver thereof, and any such right, remedy or power may be exercised by such party from time to time and as often as may be deemed expedient or necessary by such party in such party’s sole discretion.

 

(g)     Survivorship. Notwithstanding anything in this Agreement to the contrary, all terms and provisions of this Agreement that by their nature extend beyond the termination of this Agreement shall survive such termination.

 

(h)     Entire Agreement. This Agreement sets forth the entire agreement of the parties hereto with respect to the subject matter contained herein and supersedes all prior agreements, promises, covenants or arrangements, whether oral or written, with respect thereto.

 

(i)     Counterparts. This Agreement may be executed in two or more counterparts, each of which shall constitute an original, but all of which, when taken together, shall constitute one document.

 

17.     No Contract of Employment. Nothing contained in this Agreement will be construed as a right of Executive to be continued in the employment of the Company, or as a limitation of the right of the Company to discharge Executive with or without Cause.

 

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18.     Section 409A of the Code. The intent of the parties is that payments and benefits under this Agreement comply with, or be exempt from, Section 409A of the Code and, accordingly, to the maximum extent permitted, this Agreement shall be construed and interpreted in accordance with such intent. Executive’s termination of employment (or words to similar effect) shall not be deemed to have occurred for purposes of this Agreement unless such termination of employment constitutes a “separation from service” within the meaning of Code Section 409A and the regulations and other guidance promulgated thereunder.

 

(a)     Notwithstanding any provision to the contrary in this Agreement, if Executive is deemed on the date of Executive’s termination to be a “specified employee” within the meaning of that term under Code Section 409A(a)(2)(B) and using the identification methodology selected by the Company from time to time, or if none, the default methodology set forth in Code Section 409A, then with regard to any payment or the providing of any benefit that constitutes “non-qualified deferred compensation” pursuant to Code Section 409A and the regulations issued thereunder that is payable due to Executive’s separation from service, to the extent required to be delayed in compliance with Code Section 409A(a)(2)(B), such payment or benefit shall not be made or provided to Executive prior to the earlier of (i) the expiration of the six (6) month period measured from the date of Executive’s separation from service, and (ii) the date of Executive’s death (the “Delay Period”). On the first day of the seventh month following the date of Executive’s separation from service or, if earlier, on the date of Executive’s death, all payments delayed pursuant to this Section 18(a) shall be paid or reimbursed to Executive in a lump sum, and any remaining payments and benefits due to Executive under this Agreement shall be paid or provided in accordance with the normal payment dates specified for them herein.

 

(b)     To the extent any reimbursement of costs and expenses provided for under this Agreement constitutes taxable income to Executive for Federal income tax purposes, such reimbursements shall be made no later than December 31 of the calendar year next following the calendar year in which the expenses to be reimbursed are incurred. With regard to any provision herein that provides for reimbursement of expenses or in-kind benefits, except as permitted by Code Section 409A, (i) the right to reimbursement or in-kind benefits is not subject to liquidation or exchange for another benefit, and (ii) the amount of expenses eligible for reimbursement, or in-kind benefits, provided during any taxable year shall not affect the expenses eligible for reimbursement, or in-kind benefits to be provided, in any other taxable year.

 

(c)     If any amount under this Agreement is to be paid in two or more installments, for purposes of Code Section 409A each installment shall be treated as a separate payment.

 

19.     Executive Acknowledgement. Executive hereby acknowledges that Executive has read and understands the provisions of this Agreement, that Executive has been given the opportunity for Executive’s legal counsel to review this Agreement, that the provisions of this Agreement are reasonable and that Executive has received a copy of this Agreement.

 

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

 

Windtree Therapeutics, Inc.

 

	
			 By:

				/s/ Kathryn A. Cole	
			 

				/s/John P. Hamill
	
			 Name:

				Kathryn A. Cole	
			 

				
			 John P. Hamill

			
	
			 Title:

				Senior Vice President, Human Resources	
			 

				
			 

			

 

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EXHIBIT A

 

(a)     “Annual Bonus Amount” means the current year’s target annual bonus amount for the Executive.

 

(b)     “Beneficiary” means any individual, trust or other entity named by Executive to receive the payments and benefits payable hereunder in the event of the death of Executive. Executive may designate a Beneficiary to receive such payments and benefits by completing a form provided by the Company and delivering it to the General Counsel of the Company. Executive may change his designated Beneficiary at any time (without the consent of any prior Beneficiary) by completing and delivering to the Company a new beneficiary designation form. If a Beneficiary has not been designated by Executive, or if no designated Beneficiary survives Executive, then the payment and benefits provided under this Agreement, if any, will be paid to Executive’s estate, which shall be deemed to be Executive’s Beneficiary.

 

(c)     “Cause” means: (i) Executive’s willful and continued neglect of Executive’s duties with the Company (other than as a result of Executive’s incapacity due to physical or mental illness), after a written demand for substantial performance is delivered to Executive by the Company which specifically identifies the manner in which the Company believes that Executive has neglected his duties; (ii) the final conviction of Executive of, or an entering of a guilty plea or a plea of no contest by Executive to, a felony; (iii) Executive’s willful engagement in illegal conduct or gross misconduct which is materially and demonstrably injurious to the Company; or (iv) the debarment of Executive by the FDA.

 

For purposes of this definition, no act or failure to act on the part of Executive shall be considered “willful” unless it is done, or omitted to be done, by Executive in bad faith or without a reasonable belief that the action or omission was in the best interests of the Company. Any act, or failure to act, based on authority given pursuant to a resolution duly adopted by the Board, or the advice of counsel to the Company, will be conclusively presumed to be done, or omitted to be done, by Executive in good faith and in the best interests of the Company.

 

(d)     “Change of Control” means the occurrence of any one of the following events:

 

(i)      any “person” (as defined in Sections 13(d) and 14(d) of the Securities Exchange Act of 1934 (the “Exchange Act”)), other than the Company, any trustee or other fiduciary holding securities under an employee benefit plan of the Company, an underwriter temporarily holding securities pursuant to an offering of such securities or any corporation owned, directly or indirectly, by the stockholders of the Company in substantially the same proportions as their ownership of stock of the Company, directly or indirectly (x) acquires “beneficial ownership” (as defined in Rule 13d-3 under the Exchange Act) of securities representing more than 50% of the combined voting power of the Company’s then outstanding securities or; (y) acquires within a 12 consecutive month period “beneficial ownership” (as defined in Rule 13d-3 under the Exchange Act) of securities representing 35% of the combined voting power of the Company’s then outstanding securities;

 

(ii)      persons who comprise a majority of the Board are replaced during any 12 consecutive month period by directors whose appointment or election is not endorsed by a majority of the members of the Board before the date of such appointment or election;

 

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(iii)      the consummation of a reorganization, merger, statutory share exchange, consolidation or similar corporate transaction (each, a “Business Combination”) other than a Business Combination in which all or substantially all of the individuals and entities who were the beneficial owners of the Company’s voting securities immediately prior to such Business Combination beneficially own, directly or indirectly, 50% or more of the combined voting power of the voting securities of the entity resulting from such Business Combination (including, without limitation, an entity which as a result of the Business Combination owns the Company or all or substantially all of the Company’s assets either directly or through one or more subsidiaries) in substantially the same proportions as their ownership of the Company’s voting securities immediately prior to such Business Combination; or

 

(iv)      any “person” (as defined in Sections 13(d) and 14(d) of the Exchange Act) acquires all or substantially all of the assets of the Company within any 12 consecutive month period.

 

Notwithstanding the foregoing, none of the foregoing events shall constitute a Change of Control of the Company unless such event also constitutes a change in ownership of the Company within the meaning of Treasury Regulation Section 1.409A-3(i)(5)(v), a change in the effective control of the Company within the meaning of Treasury Regulation Section 1.409A-3(i)(5)(vi) or a change in ownership of a substantial portion of the assets of the Company within the meaning of Treasury Regulation Section 1.409A-3(i)(5)(vii).

 

(e)     “Change of Control Date” means any date after the date hereof on which a Change of Control occurs; provided, however, that if a Change of Control occurs and if Executive’s employment with the Company is terminated or an event constituting Good Reason (as defined below) occurs prior to the Change of Control, and if it is reasonably demonstrated by Executive that such termination or event (i) was at the request of a third party who has taken steps reasonably calculated to effect the Change of Control, or (ii) otherwise arose in connection with or in anticipation of the Change of Control then, for all purposes of this Agreement, the Change of Control Date shall mean the date immediately prior to the date of such termination or event.

 

(f)     “Code” means the Internal Revenue Code of 1986, as amended, and the regulations promulgated thereunder.

 

(g)     “Date of Termination” means the date specified in a Notice of Termination pursuant to Section 8 hereof, or Executive’s last date as an active employee of the Company before a termination of employment due to death, Disability or other reason, as the case may be.

 

13

 

 

(h)     “Disability” means a condition entitling Executive to benefits under the Company’s long term disability plan, policy or arrangement; provided, however, that if no such plan, policy or arrangement is then maintained by the Company and applicable to the Executive, “Disability” will mean a mental or physical condition that renders Executive substantially incapable of performing his duties and obligations under this Agreement, after taking into account provisions for reasonable accommodation, as determined by a medical doctor (such doctor to be mutually determined in good faith by the parties) for three or more consecutive months or for a total of six months during any 12 consecutive months.

 

(i)     “Effective Period” means the period beginning on the Change of Control Date and ending 24 months after the date of the related Change of Control.

 

(j)     “Good Reason” means, unless Executive has consented in writing thereto, the occurrence of any of the following: (i) the assignment to Executive of any duties materially inconsistent with Executive’s position, including any change in title, authority, duties or responsibilities or any other action which results in a material diminution in such, title, authority, duties or responsibilities; (ii) a material reduction in Executive’s Base Salary by the Company other than in accordance with Section 5(a); (iii) the relocation of Executive’s office to a location more than 30 miles from Warrington, Pennsylvania; (iv) a material breach of this Agreement by the Company; or (v) the failure of the Company to obtain the assumption in writing of the Company’s obligation to perform this Agreement by any successor to all or substantially all of the assets of the Company within 15 days after a Business Combination or a sale or other disposition of all or substantially all of the assets of the Company.

 

14

 

 

EXHIBIT B

 

FORM OF

PROPRIETARY INFORMATION AND INVENTIONS,

NON-SOLICITATION AND

NON-COMPETITION AGREEMENT

 

 

The following is an agreement (“Agreement”) between Windtree Therapeutics, Inc., a Delaware corporation (the "Company"), and any successor in interest, and me, John P. Hamill, and this Agreement is a material part of the consideration for my employment by the Company:

 

1.     Job Title and Responsibility: I understand that my job title with the Company will be Senior Vice President and Chief Financial Officer and my responsibilities shall be all those duties customarily associated with a Chief Financial Officer in a publicly-traded company.

 

2.     Consideration. I understand that the consideration to me for entering into this Agreement is my employment with the Company, my base compensation, eligibility to earn bonuses, be granted incentive equity and eligibility to receive severance benefits, and I agree that this consideration is fully adequate to support this Agreement.

 

3.     Proprietary Information. I recognize that the Company is engaged in a continuous program of research, development and production. I also recognize that the Company possesses or has rights to secret, private, confidential information and processes (including processes and information developed by me during my employment by the Company) which are valuable, special and unique assets of the Company and which have commercial value in the Company's business ("Proprietary Information"). By way of illustration, this Proprietary Information includes, but is not limited to, information and details regarding the Company’s business, trade or business secrets, inventions, intellectual property, systems, policies, records, reports, manuals, documentation, models, data and data bases, products, processes, operating systems, manufacturing techniques, research and development techniques and processes, devices, methods, formulas, compositions, compounds, projects, developments, plans, research, financial data, personnel data, internal business information, strategic and staffing plans and practices, business, marketing, promotional or sales plans, practices or programs, training practices and programs, costs, rates and pricing structures and business methods, computer programs and software, customer and supplier identities, information and lists, confidential information regarding customers and suppliers, and contacts at or knowledge of Company suppliers and customers or of prospective or potential customers of the Company.

 

4.     Obligation of Confidentiality.  I understand and agree that my employment creates a relationship of confidence and trust between the Company and me with respect to (i) all Proprietary Information, and (ii) the confidential information of others with which the Company has a business relationship. At all times, both during my employment by the Company and after the termination of my employment (whether voluntary or involuntary), I will keep in confidence and trust all such information, and I will not use, reveal, communicate, or disclose any such Proprietary Information or confidential information to anyone or any entity, without the written consent of the Company, unless I am ordered to make disclosure by a court of competent jurisdiction.

 

 

 

 

Notwithstanding the foregoing, I understand that nothing in this Agreement prohibits me from initiating communications directly with, responding to any inquiries from, providing testimony before, providing confidential information to, reporting possible violations of law or regulation to, or from filing a claim or assisting with an investigation directly with a self-regulatory authority or a government agency or entity, including the U.S. Equal Employment Opportunity Commission, the Department of Labor, the National Labor Relations Board, the Department of Justice, the Securities and Exchange Commission, the Congress, and any agency Inspector General (collectively, the “Regulators”), or from making other disclosures that are protected under the whistleblower provisions of state or federal law or regulation. In connection with any such activity, I must identify any information that is confidential and ask the Regulator for confidential treatment of such information. Despite the foregoing, I am not permitted to reveal to any third party, including any governmental, law enforcement, or regulatory authority, information employee came to learn during the course of my employment with the Company that is protected from disclosure by any applicable privilege, including but not limited to the attorney-client privilege, attorney work product doctrine and/or other applicable legal privileges. The Company does not waive any applicable privileges or the right to continue to protect its privileged attorney-client information, attorney work product, and other privileged information. Notwithstanding any other provisions of this Agreement, pursuant to 18 USC Section 1833(b), I shall not be held criminally or civilly liable under any federal or state trade secret law for the disclosure of a trade secret of the Company that is made: (a) confidentially to a federal, state, or local government official, either directly or indirectly, or to an attorney, and solely for the purpose of reporting or investigating a suspected violation of law; or (b) in a complaint or other document filed in a lawsuit or other proceeding, if such filing is made under seal. If I file a lawsuit for retaliation by the Company for reporting a suspected violation of law, I may disclose a trade secret of the Company to my attorney and use the trade secret information in related court proceedings, provided that I file any document containing the trade secret information under seal and does not disclose the trade secret, except pursuant to court order.

 

5.     Ownership, Disclosure and Assignment of Proprietary Information and Inventions. In addition, I hereby agree as follows:

 

(a)     Ownership and Assignment. All Proprietary Information is, and shall be, the sole and exclusive property of the Company and its assigns, and the Company and its assigns shall be the sole and exclusive owner of all Proprietary Information, including, but not limited to, trade secrets, inventions, patents, trademarks, copyrights, and all other rights in connection with such Proprietary Information. I agree that I have no rights in such Proprietary Information. I hereby assign, and shall assign, to the Company and its assigns any and all rights, title and interest I may have or acquire in such Proprietary Information. Any copyrightable work prepared in whole or in part by me in the course of my employment shall be deemed "a work made for hire" under applicable copyright laws, and the Company and its assigns shall own all of the rights in any copyright.

 

(b)     Return of Materials and Property. All documents, records, apparatus, equipment, data bases, data and information stored in computers or on electronic disks, and other electronic, computer, intellectual, and physical property (“Materials and Property”), whether or not pertaining to Proprietary Information, furnished to me by the Company or produced by me or others in connection with employment, shall be and remain the sole and exclusive property of the Company. I shall return to the Company all such Materials and Property as and when requested by the Company. Even if the Company does not so request, I shall return all such Materials and Property upon termination of employment by me or by the Company for any reason, and I will not take with me any such Materials or Property, or any reproduction thereof, upon such termination.

 

2

 

 

(c)     Notification. During the term of my employment and for one (1) year thereafter, I will promptly disclose to the Company, or any persons designated by it, all improvements, inventions, intellectual property, works of authorship, formulas, ideas, processes, techniques, discoveries, developments, designs, innovations, know-how and data, and creative works in which copyright and/or unregistered design rights will subsist in various media (all collectively called herein, "Inventions"), whether or not such Inventions are patentable, which I make or conceive, contribute to, reduce to practice, or learn, either alone or jointly with others.

 

(d)     Ownership of Inventions. I agree and acknowledge that all Inventions which I make, conceive, develop, or reduce to practice (in whole or in part, either alone or jointly with others) at any time during my employment by the Company, and (i) which were created using the equipment, supplies, facilities or trade secret information of the Company, or (ii) which were developed during the hours for which I was compensated by the Company, or (iii) which relate, at the time of conception, creation, development or reduction to practice, to the business of the Company or to its actual or demonstrably anticipated research and development, or (iv) which result from any work performed by me for the Company, shall be the sole and exclusive property of the Company and its assigns (and to the fullest extent permitted by law shall be deemed works made for hire), and the Company and its assigns shall be the sole and exclusive owner of all Inventions, patents, copyrights and all other rights in connection therewith. I hereby assign to the Company any and all rights I may have or acquire in such Inventions. I agree that any Invention required to be disclosed under paragraph (c), above, within one (1) year after the termination of my employment shall be presumed to have been conceived or made during my employment with the Company and will be assigned to the Company unless and until I prove and establish to the contrary.

 

(e)     Assistance and Cooperation. With respect to Inventions described in paragraph (d), above, I will assist the Company in every proper way (but at the Company's expense) to obtain, and from time to time enforce, patents, copyrights or other rights on these Inventions in any and all countries, and will execute all documents reasonably necessary or appropriate for this purpose. This obligation shall survive the termination of my employment. In the event that the Company is unable for any reason whatsoever to secure my signature to any document reasonably necessary or appropriate for any of the foregoing purposes (including renewals, extensions, continuations, divisions or continuations in part), I hereby irrevocably designate and appoint the Company, and its duly authorized officers and agents, as my agents and attorneys-in-fact to act for and in my behalf and instead of me, but only for the purpose of executing and filing any such document and doing all other lawfully permitted acts to accomplish the foregoing purposes with the same legal force and effect as if executed by me.

 

(f)     Exempt Inventions. I understand that this Agreement does not require assignment of an Invention for which no equipment, supplies, facilities, resources, or trade secret information of the Company was used and which was developed entirely by me on my own time, unless the invention relates, (i) directly to the business of the Company, or (ii) to the Company's actual or demonstrably anticipated research or development. However, I will disclose to the Company any Inventions I claim are exempt, as required by paragraph (c), above, in order to permit the Company to determine such issues as may arise. Such disclosure shall be received in confidence by the Company.

 

3

 

 

6.     Prior Inventions. As a matter of record I attach hereto as Exhibit A a complete list of all inventions or improvements relevant to the subject matter of my employment by the Company which have been made or conceived or first reduced to practice by me, alone or jointly with others, prior to my employment with the Company, that I desire to remove from the operation of this Agreement, and I covenant that such list is complete. If no such list is attached to this Agreement, I represent that I have no such inventions and improvements at the time of my signing this Agreement.

 

7.     Other Business Activities. So that the Company may be aware of the extent of any other demands upon my time and attention, I will disclose to the Company (such disclosure to be held in confidence by the Company) the nature and scope of any other business activity in which I am or become engaged during the term of my employment. During the term of my employment, I will not engage in any business activity or employment which is in competition with, or is related to, the Company's business or its actual or demonstrably anticipated research and development, or that will affect in any manner my ability to perform fully all of my duties and responsibilities for the Company.

 

8.     Non-Interference and Non-Solicitation of Employees, Customers and Others. I will not now or at any time in the future, anywhere in the world, disrupt, damage, impair or interfere with the business of the Company, whether by way of interfering with or raiding its employees, disrupting its relationships with customers, agents, vendors, distributors or representatives, or otherwise. During my employment with the Company and for eighteen (18) months thereafter, I will not directly or indirectly solicit, encourage, induce or endeavor to entice away from the Company, or otherwise interfere with the relationship of the Company with, any person who is employed or engaged by the Company as an employee, consultant or independent contractor or who was so employed or engaged at any time during the six (6) months preceding the termination of my employment; provided, that nothing herein shall prevent me from engaging in discussions regarding employment, or employing, any such employee, consultant or independent contractor (i) if such person shall voluntarily initiate such discussions without any such solicitation, encouragement, enticement or inducement prior thereto on my part or (ii) if such discussions shall be held as a result of, or any employment shall be the result of, the response by any such person to a written employment advertisement placed in a publication of general circulation, general solicitation conducted by executive search firms, employment agencies or other general employment services, not directed specifically at any such employee, consultant or independent contractor.

 

9.     Non-Competition During and After Employment. During my employment with the Company or at any time within a period of one (1) year after the termination of my employment, I shall not, directly or indirectly, anywhere in the world, without the prior written consent of the Company, either as an employee, employer, consultant, agent, principal, partner, stockholder, corporate officer, director, or in any other individual or representative capacity compete with the Company in the business of developing or commercializing (i) pulmonary surfactants or any other category of compounds which form the basis of the Company's material drug products, or (ii) any material medical device products under development by the Company, including without limitation the Company’s capillary aerosol generator, series of aerosol-conducting airway connectors and related componentry, and similar medical devices, in each case, as determined in good faith by the Company on the termination date of my employment.

 

4

 

 

10.     Obligations to Former Employers. I represent that my execution of this Agreement, my employment with the Company, and my performance of my duties and proposed duties to the Company will not violate any obligations or agreements I have, or may have, with any former employer or any other third party, including any obligations and agreements requiring me not to compete or to keep confidential any proprietary or confidential information. I have not entered into, and I will not enter into, any agreement which conflicts with this Agreement or that would, if performed by me, cause me to breach this Agreement. I further represent that I have no knowledge of any pending or threatened litigation to which the Company may become a party by virtue of my association with the Company. I further agree to immediately inform the Company of any such pending or threatened litigation should it come to my attention during the course of my employment. I also agree that I provided to the Company for its inspection before I signed this Agreement all confidentiality, non-compete, non-solicitation, and all other employment-related agreements that I am party to or which involve me.

 

11.     Confidential Information of, and Agreements with, Former Employers. In the course of performing my duties to the Company, I will not utilize any trade secrets, proprietary or confidential information of or regarding any former employer or business affiliate, nor violate any written or oral, express or implied agreement with any former employer or business affiliate.

 

12.     United States Government Obligations. I acknowledge that the Company from time to time may have agreements with other persons or with the United States Government, or agencies thereof, which impose obligations or restrictions on the Company regarding inventions made during the course of work under such agreements or regarding the confidential nature of such work. I agree to be bound by all such obligations and restrictions which are made known to me and to take all action necessary to discharge the obligations of the Company under such agreements.

 

13.     Remedies. I acknowledge that my failure to comply with, or my breach of, any of the terms and conditions of this Agreement shall irreparably harm the Company, and that money damages would not adequately compensate the Company for this harm. Accordingly, I acknowledge that in the event of a threatened or actual breach by me of any provision of this Agreement, in addition to any other remedies the Company may have at law, the Company shall be entitled to equitable relief in the form of specific performance, temporary restraining order, temporary or permanent injunction or any other equitable remedy then available, without requiring the Company to post any bond. I agree that nothing herein contained shall be construed as prohibiting the Company from pursuing any other remedies available to it for such threatened or actual breach, including money damages, and I agree that the Company shall be entitled to recover from me any attorney’s fees it incurs in enforcing the terms of this Agreement.     

 

14.     Not an Employment Agreement. I acknowledge and agree that this Agreement is not a contract of employment, that it should not be construed as a guarantee of my employment for any period of time, and that I am employed by the Company at will and my employment may be terminated by the Company for any lawful reason or no reason.

 

5

 

 

15.     Miscellaneous.

 

(a)     Reformation and Severability. If any provision of this Agreement is held to be invalid or unenforceable under applicable law, such provision shall be reformed and/or construed, if possible, to be enforceable under applicable law; otherwise, such provision shall be excluded from this Agreement and the balance of the Agreement shall remain fully enforceable and valid in accordance with its terms. To the extent that the restrictions imposed by Sections 8 and 9 are interpreted by any court to be unreasonable in geographic and/or temporal scope, such restrictions shall be deemed automatically reduced to the extent necessary to coincide with the maximum geographic and/or temporal restrictions deemed by such court not to be unreasonable.

 

(b)     No Waiver. No delay or omission by the Company in exercising any right hereunder will operate as a waiver of that or any other right. A waiver or consent given by the Company on any one occasion is effective only in that instance and will not be construed as a bar to or waiver of any right on any other occasion.

 

(c)     Reassignment. I expressly consent to be bound by the provisions of this Agreement for the benefit of the Company or any subsidiary or affiliate thereof to whose employment I may be transferred, without the necessity that this Agreement be reassigned at the time of such transfer.

 

(d)     Applicable Law. This Agreement shall be governed by and construed in accordance with the laws of the Commonwealth of Pennsylvania (but not the law or principles of conflict of laws), and the parties submit to the jurisdiction of the courts of Pennsylvania.

 

(e)     Effective Date. This Agreement shall be effective as of the first day of my employment by the Company, shall be binding upon me, my heirs, executors, assigns and administrators, and shall inure to the benefit of the Company, its successors and assigns.

 

(f)     Entire Agreement. This Agreement contains the entire agreement of the parties relating to the subject matter herein, and may not be waived, changed, extended or discharged except by an agreement in writing signed by both parties.

 

6

 

 

(g)     ACKNOWLEDGEMENT. I acknowledge and agree that I have fully read and that I understand all of the terms and provisions of this Agreement, that I have had the opportunity to consult with an attorney and to discuss this Agreement with an attorney, that I have had any questions regarding the effect of this Agreement or the meaning of its terms answered to my satisfaction, and, intending to be legally bound hereby, I freely and voluntarily sign this Agreement.

                

	Accepted and Agreed to:	 	Windtree Therapeutics, Inc.
	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	Name:	 	 	By:	 
	Date:	 	 	Name:	 
	SS#:	 	 	Title:	 

 

7

 

 

EXHIBIT A

 

 

Windtree Therapeutics, Inc.

2600 Kelly Road, Suite 100

Warrington, PA 18976

 

Attn: Kathryn Cole

 

 

1.     The following is a complete list of all inventions or improvements relevant to the subject matter of my employment by Windtree Therapeutics, Inc. (the "Company") that have been made or conceived or first reduced to practice by me, alone or jointly with others, prior to my employment by the Company that I desire to remove from the operation of the Company's Proprietary Information and Inventions, Non-Solicitation and Non-Competition Agreement.

 

                                  No inventions or improvements.

 

                                  See below: Any and all inventions regarding

 

                                  Additional sheets attached.

 

 

2.     I propose to bring to my employment the following materials and documents of a former employer:

 

                                  No materials or documents.

 

                                  See below:

 

 

_______________________________

John P. Hamill

 

 

                                                              

Date

 

8Exhibit 10.1

 

Execution Version

 

THIS RESTRUCTURING SUPPORT AGREEMENT IS
NOT AN OFFER OR ACCEPTANCE WITH RESPECT TO ANY SECURITIES OR A SOLICITATION OF ACCEPTANCES OF A CHAPTER 11 PLAN WITHIN THE MEANING
OF SECTION 1125 OF THE BANKRUPTCY CODE. ANY SUCH OFFER OR SOLICITATION WILL COMPLY WITH ALL APPLICABLE SECURITIES LAWS AND/OR
PROVISIONS OF THE BANKRUPTCY CODE. Nothing contained in thIS RESTRUCTURING SUPPORT AGREEMENT
shall be an admission of fact or liability OR, UNTIL THE OCCURRENCE OF THE AGREEMENT EFFECTIVE DATE ON THE TERMS DESCRIBED HEREIN,
DEEMED BINDING ON ANY OF THE PARTIES HERETO.

 

RESTRUCTURING SUPPORT AGREEMENT

 

This RESTRUCTURING
SUPPORT AGREEMENT (including all exhibits, annexes, and schedules hereto in accordance with Section 13.03, this “Agreement”)
is made and entered into as of July 23, 2020 (the “Execution Date”), by and among the following parties
(each of the following described in sub-clauses (i) and (ii) of this preamble, collectively, the “Parties”):1

 

		i.	Ascena Retail Group, Inc. a company incorporated under the Laws of the State of Delaware (“Ascena
Topco”), and each of its affiliates listed on Exhibit A to this Agreement that have executed and delivered
counterpart signature pages to this Agreement to counsel to the Consenting Stakeholders (the Entities in this clause (i),
collectively, the “Company Parties”); and

 

		ii.	the undersigned holders of, or investment advisors, sub-advisors, or managers of discretionary
accounts that hold, Term Loan Claims that have executed and delivered counterpart signature pages to this Agreement, a Joinder,
or a Transfer Agreement to counsel to the Company Parties (collectively, the “Consenting Stakeholders”).

 

RECITALS

 

WHEREAS, the
Company Parties and the Consenting Stakeholders have in good faith and at arms’ length negotiated or been apprised of certain
restructuring and recapitalization transactions with respect to the Company Parties’ capital structure on the terms set forth
in this Agreement and as specified in the Restructuring Term Sheet (such transactions as described in this Agreement, the “Restructuring
Transactions”);

 

WHEREAS, the
Company Parties intend to implement the Restructuring Transactions, including through the commencement by the Debtors of voluntary
cases (the “Chapter 11 Cases”) under chapter 11 of title 11 of the United States Code (the “Bankruptcy
Code”) in the United States Bankruptcy Court for the Eastern District of Virginia (the “Bankruptcy
Court”);

 

WHEREAS,
certain of the Consenting Stakeholders or their affiliates that are parties to that certain Superpriority Senior Secured
Debtor-In-Possession Term Loan Credit Facility Backstop Commitment Letter attached as Exhibit C hereto (the
“Backstop Commitment Letter”) have agreed to provide the DIP Term Loans on the terms set forth in
the Backstop Commitment Letter;

 

 

		1	Capitalized terms used but not defined in the preamble and recitals to this Agreement have the
meanings given to them in Section 1 of this Agreement or the Restructuring Term Sheet attached as Exhibit B
hereto (the “Restructuring Term Sheet”).

 

 

     

     

    

 

WHEREAS, the
DIP Term Loans will be converted into loans under the First Out Exit Term Loan Facility on the Plan Effective Date on the terms
set forth in the Restructuring Term Sheet and that certain exit facility term sheet attached as Exhibit D hereto
(the “Exit Facility Term Sheet”); and

 

WHEREAS, the
Parties have agreed to take certain actions in support of the Restructuring Transactions on the terms and conditions set forth
in this Agreement and the Plan;

 

NOW, THEREFORE,
in consideration of the representations, warranties, covenants and agreements contained herein, and for other good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged, each Party, intending to be legally bound hereby,
agrees as follows:

 

AGREEMENT

 

Section
1.              Definitions
and Interpretation.

 

1.01.       
Definitions. The following terms shall have the following definitions:

 

“ABL Claims”
means any Claims arising under, related to, or on account of the ABL Credit Agreement.

 

“ABL Credit
Agreement” means that certain Amended and Restated Credit Agreement dated as of January 3, 2011, as amended and restated
by the Second Restatement Agreement dated as of June 14, 2012, by the Third Restatement Agreement dated as of March 13, 2013,
by the Fourth Restatement Agreement dated as of July 24, 2015, by the Fifth Amendment and Restatement Agreement dated as of February
27, 2018 and as may otherwise be amended, restated, supplemented or otherwise modified, among Ascena TopCo, the borrowing subsidiaries
party thereto, the other loan parties party thereto, the lenders party thereto, the issuing banks party thereto, and JPMorgan Chase
Bank, N.A., as administrative agent and swingline lender.

 

“Agent”
or “Agents” means, individually or collectively, any administrative agent, collateral agent, or similar
Entity under the ABL Credit Agreement and/or the Term Credit Agreement, including any successors thereto.

 

“Agreement”
has the meaning set forth in the preamble to this Agreement and, for the avoidance of doubt, includes all the exhibits, annexes,
and schedules hereto in accordance with Section 13.03 (including the Restructuring Term Sheet, the Exit Facility Term Sheet
and the Backstop Commitment Letter).

 

“Agreement
Effective Date” means the date on which the conditions set forth in Section 2 have been satisfied or waived
by the appropriate Party or Parties in accordance with this Agreement.

 

    2

     

    

 

“Agreement
Effective Period” means, with respect to a Party, the period from the Agreement Effective Date to the Termination
Date applicable to that Party.

 

“Alternative
Restructuring Proposal” means any inquiry, proposal, offer, bid, term sheet, discussion, or agreement with respect
to a sale, disposition, new-money investment, restructuring, reorganization, merger, amalgamation, acquisition, consolidation,
dissolution, debt investment, equity investment, liquidation, tender offer, recapitalization, plan of reorganization, share exchange,
business combination, or similar transaction involving any one or more Company Parties or the debt, equity, or other interests
in any one or more Company Parties that is an alternative to one or more of the Restructuring Transactions.

 

“Ascena
Topco” has the meaning set forth in the preamble to this Agreement.

 

“Backstop
Commitment Letter” has the meaning set forth in the preamble to this Agreement.

 

“Bankruptcy
Code” has the meaning set forth in the recitals to this Agreement.

 

“Bankruptcy
Court” has the meaning set forth in the recitals to this Agreement.

 

“Business
Day” means any day other than a Saturday, Sunday, or other day on which commercial banks are authorized to close
under the Laws of, or are in fact closed in, the state of New York.

 

“Cash Collateral
Order” means any order of the Bankruptcy Court granting the authorization to use cash collateral on an interim basis
on terms acceptable to the Company Parties and the Required Consenting Stakeholders.

 

“Chapter
11 Cases” has the meaning set forth in the recitals to this Agreement.

 

“Claim”
has the meaning given to it in section 101(5) of the Bankruptcy Code with respect to a Debtor.

 

“Company
Claims/Interests” means any Claim or Equity Interest, including the ABL Claims, the Term Loan Claims, the DIP ABL
Facility Claims, the Backstop Commitments, and the DIP Term Facility Claims.

 

“Company
Parties” has the meaning set forth in the recitals to this Agreement.

 

“Confidentiality
Agreement” means an executed confidentiality agreement, including with respect to the issuance of a “cleansing
letter” or other public disclosure of material non-public information agreement, in connection with any proposed Restructuring
Transactions.

 

“Confirmation
Order” means the order of the Bankruptcy Court confirming the Plan under section 1129 of the Bankruptcy Code.

 

“Consenting
Stakeholders” has the meaning set forth in the preamble to this Agreement.

 

    3

     

    

 

“Debtors”
means the Company Parties that commence Chapter 11 Cases.

 

“Definitive
Documents” means the documents listed in Section 3.01.

 

“DIP Financing
Order” means the order entered by the Bankruptcy Court setting forth the terms of and approving the DIP ABL Facility,
the DIP Term Facility, and the Backstop Commitment Letter on terms acceptable to the Company Parties and the Majority Backstop
Commitment Parties (as defined in the Backstop Commitment Letter).

 

“Disclosed
Interests” has the meaning set forth in Section 9(a).

 

“Disclosure
Statement” means the disclosure statement with respect to the Plan.

 

“Disclosure
Statement Order” means the order entered by the Bankruptcy Court approving the Disclosure Statement

 

“Entity”
shall have the meaning set forth in section 101(15) of the Bankruptcy Code.

 

“Equity
Interests” or “Interests” means, collectively, the shares (or any class thereof), common
stock, preferred stock, limited liability company interests, and any other equity, ownership, or profits interests of any Company
Party, and options, warrants, rights, or other securities or agreements to acquire or subscribe for, or which are convertible into
the shares (or any class thereof) of, common stock, preferred stock, limited liability company interests, or other equity, ownership,
or profits interests of any Company Party (in each case whether or not arising under or in connection with any employment agreement).

 

“Execution
Date” has the meaning set forth in the preamble to this Agreement.

 

“First
Day Pleadings” means the first-day pleadings that the Company Parties determine are necessary or desirable to file
upon the commencement of the Chapter 11 Cases.

 

“Greenhill”
means Greenhill & Co., LLC, as financial advisor to the Lender Group.

 

“Initial
Consenting Stakeholders” means Consenting Stakeholders that have that have executed and delivered counterpart signature
pages to this Agreement to counsel to the Company Parties as of the Execution Date.

 

“Insider”
has the meaning set forth in section 101(31) of the Bankruptcy Code.

 

“Joinder”
means a joinder to this Agreement substantially in the form attached hereto as Exhibit E.

 

“Law”
means any federal, state, local, or foreign law (including common law), statute, code, ordinance, rule, regulation, order, ruling,
or judgment, in each case, that is validly adopted, promulgated, issued, or entered by a governmental authority of competent jurisdiction
(including the Bankruptcy Court).

 

    4

     

    

 

“Lender
Group” means the ad hoc group or committee of Consenting Stakeholders represented by Greenhill and Milbank.

 

“Loyens”
means Loyens & Loeff Luxembourg S.à.r.l., as Luxembourg counsel to the Lender Group.

 

“LuxCo
Entities” means, collectively, AnnTaylor Loft GP Lux S.à.r.l. and AnnTaylor Loft Borrower Lux SCS.

 

“Milbank”
means Milbank LLP, as counsel to the Lender Group.

 

“New Corporate
Governance Documents” means the form of certificate or articles of incorporation, bylaws, limited liability company
agreement, partnership agreement, or such other applicable formation documents (if any) of Reorganized Ascena, including any certificates
of designation, each of which shall be included in the Plan Supplement.

 

“Outside
Date” means the date that is six (6) months after the Petition Date.

 

“Parties”
has the meaning set forth in the preamble to this Agreement.

 

“Permitted
Transferee” means each transferee of any Company Claims/Interests who meets the requirements of Section 8.01.

 

“Petition
Date” means the first date any of the Company Parties commences a Chapter 11 Case.

 

“Plan”
means the chapter 11 plan of reorganization to be filed by the Debtors in the Chapter 11 Cases consistent with this Agreement
and the Restructuring Term Sheet and otherwise as reasonably acceptable to the Company Parties and the Required Consenting Stakeholders,
including any and all exhibits annexes and schedules thereto.

 

“Plan Effective
Date” means the date of the occurrence of the “Effective Date” of the Plan according to its terms.

 

“Plan Supplement”
means the compilation of documents and forms of documents, schedules, and exhibits to the Plan that will be filed by the Debtors
with the Bankruptcy Court.

 

“Post-Emergence
Incentive Plan Documents” means all documentation with respect to any post-emergence management incentive plan, including
the Management Incentive Plan, which, for the avoidance of doubt, does not include the Employee Benefits Programs (as defined in
the Restructuring Term Sheet).

 

“Qualified
Marketmaker” means an entity that (a) holds itself out to the public or the applicable private markets as standing
ready in the ordinary course of business to purchase from customers and sell to customers Company Claims/Interests (or enter with
customers into long and short positions in Company Claims/Interests), in its capacity as a dealer or market maker in Company Claims/Interests
and (b) is, in fact, regularly in the business of making a market in claims against issuers or borrowers (including debt securities
or other debt).

 

    5

     

    

 

“Rent Deferral
Motion” means a motion seeking an order from the Bankruptcy Court extending the time for performance of the Debtors’
obligations arising under unexpired non-residential real property leases to the date that is at least sixty (60) days after the
Petition Date.

 

“Reorganized
Ascena” means either (a) Ascena Topco, or any successor thereto, as reorganized pursuant to and under the Plan or
(b) a new corporation or limited liability company that may be formed or caused to be formed by the Debtors to, among other things,
directly or indirectly acquire substantially all of the assets and/or stock of the Debtors and issue the New Common Stock to be
distributed or sold pursuant to the Plan.

 

“Required
Consenting Stakeholders” means, as of the relevant date, Initial Consenting Stakeholders holding at least 50.01%
of the aggregate outstanding principal amount of the Term Loan Claims that are held by the Initial Consenting Stakeholders.

 

“Restructuring
Term Sheet” has the meaning set forth in the recitals to this Agreement.

 

“Restructuring
Transactions” has the meaning set forth in the recitals to this Agreement.

 

“Rules”
means Rule 501(a)(1), (2), (3), and (7) of the Securities Act.

 

“Securities
Act” means the Securities Act of 1933, as amended.

 

“Solicitation
Materials” means any materials related to the solicitation of votes for the Plan pursuant to sections 1123, 1126,
and 1143 of the Bankruptcy Code.

 

“Term Loan
Claims” means any Claims arising under, related to, or on account of the Term Loan Credit Agreement.

 

“Term Loan
Credit Agreement” means the Term Credit Agreement, dated as of August 21, 2015, as it may be amended, restated,
supplemented or otherwise modified, among Ascena TopCo, AnnTaylor Retail, Inc., the lenders party thereto, and Goldman Sachs Bank
USA, as administrative agent.

 

“Termination
Date” means the date on which termination of this Agreement as to a Party is effective in accordance with Sections 11.01,
11.02, 11.03, 11.04 or 11.05.

 

“Transfer”
means to sell, resell, reallocate, use, pledge, assign, transfer, hypothecate, participate, donate or otherwise encumber or dispose
of, directly or indirectly (including through derivatives, options, swaps, pledges, forward sales or other transactions).

 

“Transfer
Agreement” means an executed form of the transfer agreement providing, among other things, that a transferee is bound
by the terms of this Agreement and substantially in the form attached hereto as Exhibit F.

 

“Whiteford
Taylor” means Whiteford, Taylor & Preston LLP, as local counsel to the Lender Group.

 

    6

     

    

 

1.02.       
Interpretation. For purposes of this Agreement:

 

(a)           in the appropriate context, each term, whether stated in the singular or the plural, shall include both the singular and
the plural, and pronouns stated in the masculine, feminine, or neuter gender shall include the masculine, feminine, and the neuter
gender;

 

(b)           capitalized
terms defined only in the plural or singular form shall nonetheless have their defined meanings when used in the opposite form;

 

(c)           unless
otherwise specified, any reference herein to a contract, lease, instrument, release, indenture, or other agreement or document
being in a particular form or on particular terms and conditions means that such document shall be substantially in such form
or substantially on such terms and conditions;

 

(d)           unless
otherwise specified, any reference herein to an existing document, schedule, or exhibit shall mean such document, schedule, or
exhibit, as it may have been or may be amended, restated, supplemented, or otherwise modified from time to time; provided
that any capitalized terms herein which are defined with reference to another agreement, are defined with reference to such other
agreement as of the date of this Agreement, without giving effect to any termination of such other agreement or amendments to
such capitalized terms in any such other agreement following the date hereof;

 

(e)           unless otherwise specified, all references herein to “Sections” are references to Sections of this Agreement;

 

(f)            the
words “herein,” “hereof,” and “hereto” refer to this Agreement in its entirety rather than
to any particular portion of this Agreement;

 

(g)           captions
and headings to Sections are inserted for convenience of reference only and are not intended to be a part of or to affect the
interpretation of this Agreement;

 

(h)           references
to “shareholders,” “directors,” and/or “officers” shall also include “members”
and/or “managers,” as applicable, as such terms are defined under the applicable limited liability company Laws;

 

(i)            the use of “include” or “including” is without limitation, whether stated or not; and

 

(j)            the
phrase “counsel to the Consenting Stakeholders” refers in this Agreement to each counsel specified in Section 13.11
other than counsel to the Company Parties.

 

Section
2.              Effectiveness
of this Agreement. This Agreement shall become effective and binding upon each of the Parties at 12:00 a.m., prevailing
Eastern Standard Time, on the Agreement Effective Date, which is the date on which all of the following conditions have been satisfied
or waived in accordance with this Agreement:

 

(a)           each
of the Company Parties shall have executed and delivered counterpart signature pages of this Agreement to counsel to each of the
other Parties;

 

    7

     

    

 

(b)           holders
of at least two-thirds of the aggregate outstanding principal amount of the Term Loan Claims shall have executed and delivered
counterpart signature pages of this Agreement; and

 

(c)           counsel
to the Company Parties shall have given notice to counsel to the Consenting Stakeholders in the manner set forth in Section 13.11
hereof (by email or otherwise) that the other conditions to the Agreement Effective Date set forth in this Section 2 have occurred,
which notice shall be promptly following the occurrence of such other conditions.

 

Section
3.              Definitive
Documents.

 

3.01.       
The Definitive Documents governing the Restructuring Transactions shall include the following: (A) the Plan; (B)
the Confirmation Order; (C) the Disclosure Statement; (D) the order of the Bankruptcy Court approving the Disclosure Statement
and the other Solicitation Materials; (E) the Plan Supplement; (F) the Cash Collateral Order; (G) the DIP Financing Order; (H)
the Exit Facility Documents; (I) the New Corporate Governance Documents; (J) the Post-Emergence Incentive Plan Documents; (K) any
new employee incentive plan or employee retention plan entered into by the Company Parties after the Agreement Effective Date;
(L) any new material employment, consulting, or similar agreements entered into by the Company Parties after the Agreement Effective
Date; (M) any disclosure documents related to the issuance of the New Common Stock; and (N) all material pleadings filed by the
Company Parties in connection with the Chapter 11 Cases (or related orders), including the First Day Pleadings and all orders sought
pursuant thereto.

 

3.02.       
The Definitive Documents not executed or in a form attached to this Agreement as of the Execution Date remain subject
to negotiation and completion. Upon completion, the Definitive Documents and every other document, deed, agreement, filing, notification,
letter or instrument related to the Restructuring Transactions shall contain terms, conditions, representations, warranties, and
covenants consistent with the terms of this Agreement, as they may be modified, amended, or supplemented in accordance with Section
12. Further, subject to and without limiting any additional consent or approval rights of the Parties specified elsewhere in this
Agreement, the Definitive Documents not executed or in a form attached to this Agreement as of the Execution Date shall otherwise
be in form and substance reasonably acceptable to the Company Parties and the Required Consenting Stakeholders; provided
that the New Corporate Governance Documents and Post-Emergence Incentive Plan Documents shall be acceptable to the Required Consenting
Stakeholders and reasonably acceptable to the Company Parties.

 

Section
4.              Commitments
of the Consenting Stakeholders.

 

4.01.       
General Commitments, Forbearances, and Waivers.

 

(a)           During the Agreement Effective Period, subject to Section 4.03 of this Agreement, each Consenting Stakeholder agrees,
in respect of all of its Company Claims/Interests, to:

 

(i)                
support the Restructuring Transactions as contemplated by this Agreement and use commercially reasonable efforts
to vote and exercise any powers or rights available to it (including in any board, shareholders’, or creditors’ meeting
or in any process requiring voting or approval to which they are legally entitled to participate) in each case in favor of any
matter requiring approval to the extent necessary to implement the Restructuring Transactions;

 

    8

     

    

 

(ii)                support
use of cash collateral by the Debtors during the pendency of the Chapter 11 Cases on the terms set forth in the Cash Collateral
Order or the DIP Financing Order;

 

(iii)              
support entry into the DIP ABL Facility on the terms set forth in the ABL Commitment Letter;

 

(iv)               support entry into the DIP Term Facility on the terms set forth in the Backstop Commitment Letter and take all other
applicable actions required by the Backstop Commitment Letter, including the funding of any backstop commitments on the terms set
forth therein;

 

(v)              
support entry into the Exit Facilities on the terms set forth in the Exit Facility Term Sheet and take all other
applicable actions required by the Exit Facility Term Sheet;

 

(vi)             
use commercially reasonable efforts to cooperate with the Company Parties, subject to applicable Laws and at the
Company Parties’ sole cost and expense, in obtaining additional support for the Restructuring Transactions from the Company
Parties’ other stakeholders;

 

(vii)              give
any notice, order, instruction, or direction to the applicable Agents necessary to give effect to the Restructuring Transactions;
and

 

(viii)            
negotiate in good faith and use commercially reasonable efforts to execute and implement, as applicable, the Definitive
Documents that are consistent with this Agreement to which it is required to be a party or for which its consent is required.

 

(b)           During
the Agreement Effective Period, each Consenting Stakeholder agrees, in respect of all of its Company Claims/Interests, that it
shall not directly or indirectly:

 

(i)                 object
to, delay, impede, or take any other action that is reasonably likely to interfere with acceptance, implementation, or consummation
of the Restructuring Transactions;

 

(ii)                object to, delay, impede, or take any other action that is reasonably likely to interfere with use of cash collateral
by the Debtors during the pendency of the Chapter 11 Cases on the terms set forth in the Cash Collateral Order, entry into or performance
under the DIP ABL Facility on the terms set forth in the ABL Commitment Letter, or entry into, performance under, or syndication
of the DIP Term Facility on the terms set forth in the Backstop Commitment Letter;

 

(iii)               propose,
file, support, solicit, or vote for any Alternative Restructuring Proposal; provided, for the avoidance of doubt, that
nothing in this Section 4.01(b)(iii) shall limit the consultation and approval rights of Consenting Stakeholders set forth in
Section 6.01(k) of this Agreement; provided, further, that a Consenting Stakeholder may propose an Alternative
Restructuring Proposal to the Company Parties in connection with Section 6.01(k) of this Agreement if such Consenting
Stakeholder provides notice of its intent to propose such Alternative Restructuring Proposal (including the terms thereof) to
each Initial Consenting Stakeholder at least five (5) Business Days in advance of such proposal;

 

    9

     

    

 

(iv)             
file or have filed on its behalf any motion, pleading, or other document (including any modifications or amendments
thereof) with the Bankruptcy Court or any other court that, in whole or in part, is not materially consistent with this Agreement
or the Plan;

 

(v)              
initiate, or have initiated on its behalf, any litigation or proceeding of any kind against any Company Party or
the other Parties in violation of this Agreement with respect to the Chapter 11 Cases, this Agreement, or the Restructuring Transactions
other than to enforce this Agreement or any Definitive Document or as otherwise permitted under this Agreement; provided
that any Consenting Stakeholder may file motions, pleadings or other documents with the Bankruptcy Court or any other court (including
any modifications or amendments thereof) with respect to its or their rights under any Definitive Document and relating to or arising
from matters and rights not specifically set forth in this Agreement, including the Restructuring Term Sheet;

 

(vi)             
exercise, or direct any other person to exercise, any right or remedy for the enforcement, collection, or recovery
of any Claim or Interest; or

 

(vii)              object
to, delay, impede, or take any other action to interfere with the Company Parties’ ownership and possession of their assets,
wherever located, or interfere with the automatic stay under section 362 of the Bankruptcy Code.

 

4.02.       
Commitments with Respect to Chapter 11 Cases.

 

(a)           During
the Agreement Effective Period, each Consenting Stakeholder that is entitled to vote to accept or reject the Plan pursuant to
its terms agrees that it shall, subject to receipt by such Consenting Stakeholder of the Solicitation Materials, whether before
or after the commencement of the Chapter 11 Cases:

 

(i)                
vote each of its Company Claims/Interests to accept the Plan by delivering its duly executed and completed ballot
accepting the Plan on a timely basis following the commencement of the solicitation of the Plan and its actual receipt of the Solicitation
Materials and the ballot;

 

(ii)               
to the extent it is permitted to elect whether to opt out of any of the releases set forth in the Plan, elect not
to opt out of such releases by timely delivering its duly executed and completed ballot(s) indicating such election; and

 

(iii)              
not change, withdraw, amend, or revoke (or cause to be changed, withdrawn, amended, or revoked) any vote or election
referred to in clauses (i) and (ii) above; provided that nothing in this Agreement shall prevent any Consenting Stakeholder
from changing, withholding, amending, or revoking (or causing the same) its vote, election, or consent with respect to the Plan
if this Agreement has been terminated in accordance with its terms.

 

(b)           During
the Agreement Effective Period, each Consenting Stakeholder, in respect of each of its Company Claims/Interests, will
support, and will not directly or indirectly object to, delay, impede, or take any other action in violation of this
Agreement reasonably likely to interfere with any motion or other pleading or document filed by a Company Party in the
Bankruptcy Court that is consistent with this Agreement.

 

    10

     

    

 

4.03.       
Notwithstanding the foregoing, nothing in this Agreement shall: (a) require any Consenting Stakeholder to incur any
expenses, liabilities or other obligations that are not expressly subject to reimbursement by the Company Parties pursuant to this
Agreement, or agree to any commitments, undertakings, concessions, indemnities or other arrangements that could result in expenses,
liabilities, or other obligations to any Consenting Stakeholder or its Affiliates that such Consenting Stakeholder reasonably believes
may not be reimbursed by the Company Parties pursuant to this Agreement; (b) require any Consenting Stakeholder to provide
any information that it reasonably determines to be sensitive or confidential; provided that, for the avoidance of doubt,
each Consenting Stakeholder shall include its holdings on its signature page to this Agreement, which signature page will be delivered
to (i) other Consenting Stakeholders in a redacted form that removes such Consenting Stakeholder’s holdings and (ii) the
Company Parties and Milbank in an unredacted form (to be hold by the Company Parties on a confidential basis and by Milbank on
a professionals’ eyes only basis); or (c) limit the right of any Party to exercise any right or remedy provided under this
Agreement, the Confirmation Order, or any other Definitive Document. Notwithstanding the immediately preceding sentence, nothing
in this Section 4.03 shall serve to limit, alter, or modify any Consenting Stakeholder’s express obligations under the terms
of this Agreement.

 

Section
5.             Additional
Provisions Regarding the Consenting Stakeholders’ Commitments. Notwithstanding anything in this Agreement to the
contrary, nothing in this Agreement shall: (a) affect the ability of any Consenting Stakeholder to consult with any other
Consenting Stakeholder, the Company Parties, or any other party in interest in the Chapter 11 Cases (including any official committee
and the United States Trustee); (b) impair or waive the rights of any Consenting Stakeholder to assert or raise any objection
permitted under this Agreement in connection with the Restructuring Transactions; or (c) prevent any Consenting Stakeholder from
enforcing this Agreement or from contesting whether any matter, fact, or thing is a breach of, or is inconsistent with, this Agreement.

 

Section
6.              Commitments
of the Company Parties.

 

6.01.       
Affirmative Commitments. Except as set forth in Section 7, during the Agreement Effective Period, the Company
Parties agree to:

 

(a)           support
and take all steps reasonably necessary or desirable to consummate the Restructuring Transactions in accordance with this Agreement;

 

(b)           support
and take all steps reasonably necessary and desirable to obtain entry of the Cash Collateral Order, the DIP Financing Order, the
Disclosure Statement Order, and the Confirmation Order;

 

(c)           to
the extent any legal or structural impediment arises that would prevent, hinder, or delay the consummation of the Restructuring
Transactions, take all steps reasonably necessary or desirable to address any such impediment;

 

    11

     

    

 

(d)           use
commercially reasonable efforts to obtain any and all required governmental, regulatory and/or third-party approvals for the Restructuring
Transactions;

 

(e)           negotiate in good faith and use commercially reasonable efforts to execute and deliver the Definitive Documents
and any other required agreements to effectuate and consummate the Restructuring Transactions as contemplated by this Agreement;

 

(f)            use commercially reasonable efforts to seek additional support for the Restructuring Transactions from their other
material stakeholders to the extent reasonably prudent;

 

(g)           (i) to the extent reasonably practicable, provide counsel to the Consenting Stakeholders draft copies of (x) all
First Day Pleadings three (3) Business Days in advance of the Petition Date and (y) any other motions, documents and other pleadings
materially affecting any Consenting Stakeholders that the Company Parties intend to file with the Bankruptcy Court, as applicable,
three (3) Business Days in advance of the filing thereof and, (ii) without limiting any approval rights set forth in this Agreement,
consult in good faith with counsel to the Consenting Stakeholders regarding any comments to draft copies provided pursuant to sub-clause
(i);

 

(h)           pay
in full and in cash all of the accrued reasonable and documented fees, costs, and expenses of the professionals and other advisors
retained by the Lender Group, including such fees, costs, and expenses of (i) Greenhill, (ii) Milbank, (iii) Whiteford Taylor,
and (iv) Loyens, and continue to pay such amounts as they come due and seek to pay such ongoing fees, costs, and expenses in connection
with the Cash Collateral Order, DIP Financing Order, or other such appropriate order;

 

(i)            timely
file a formal objection to any motion filed with the Bankruptcy Court by a third party seeking the entry of an order (i) directing
the appointment of a trustee or examiner (with expanded powers beyond those set forth in sections 1106(a)(3) and (4) of the Bankruptcy
Code), (ii) converting the Chapter 11 Cases to cases under chapter 7 of the Bankruptcy Code, (iii) dismissing the Chapter
11 Cases, or (iv) challenging the validity, enforceability, perfection, or priority of, or seeking avoidance or subordination
of, any portion of the Term Loan Claims, or asserting any other cause of action against and/or with respect or relating to such
Term Loan Claims or the prepetition liens securing such Term Loan Claims;

 

(j)            timely
file a formal objection to any motion filed with the Bankruptcy Court by a third party seeking the entry of an order modifying
or terminating the Company Parties’ exclusive right to file and/or solicit acceptances of a plan of reorganization, as applicable;

 

(k)           (i)
solicit, consider, respond to, and facilitate Alternative Restructuring Proposals in consultation with the Required
Consenting Stakeholders and (ii) pursue a Alternative Restructuring Proposal if (A) the Required Consenting Stakeholders
determine that such Alternative Restructuring Proposal is a higher or better transaction than the Restructuring Transactions
and (B) the Alternative Restructuring Proposal is implemented under, or without modification to the Company Parties’
and the Required Consenting Stakeholders’ obligations under this Agreement to pursue and implement, a Plan as modified
to implement or allow for such Alternative Restructuring Proposal; provided that the structure of such Alternative
Restructuring Proposal will not preclude any Initial Consenting Stakeholder from participating in such Alternative
Restructuring Proposal on a pro rata basis on substantially the same terms as any other Initial Consenting Stakeholder;
and

 

    12

     

    

 

(l)            reasonably
consult with the Required Consenting Stakeholders regarding (i) the assumption or rejection of any executory contracts or unexpired
leases, (ii) entry into any agreement, settlement, or other arrangement with any of the landlords under the Debtors’ unexpired
leases waiving, deferring, or modifying the rent payments or rent structure under such leases, and (iii) any payments of prepetition
Claims (including Claims pursuant to section 503(b)(9) of the Bankruptcy Code and lien Claims) of or agreements with the Company
Parties’ vendors and provide notice and reasonably acceptable reporting to Milbank and Greenhill regarding any of the foregoing
actions, which consultation and reporting shall include weekly calls regarding the status of the actions described in this Section
6.01(l) among the relevant employees, advisors and consultants of the Company Parties, Milbank, Greenhill and one or more Initial
Consenting Stakeholders.

 

6.02.       
Negative Commitments. Except as set forth in Section 7 or with the prior written consent of the Required Consenting
Stakeholders, during the Agreement Effective Period, each of the Company Parties shall not directly or indirectly, and shall cause
their respective subsidiaries not to:

 

(a)           object
to, delay, impede, or take any other action to interfere with acceptance, implementation, or consummation of the Restructuring
Transactions;

 

(b)           take
any action that is inconsistent in any material respect with, or is intended to frustrate or impede approval, implementation and
consummation of the Restructuring Transactions or the Plan;

 

(c)           modify the Plan, in whole or in part, in a manner that is not consistent with this Agreement in any material respect;

 

(d)           file any motion, pleading, or Definitive Documents (including any modifications or amendments thereof) with the Bankruptcy
Court or any other court that, in whole or in part, is not materially consistent with this Agreement (including the consent rights
of the Consenting Stakeholders set forth in in this Agreement as to the form and substance of such motion, pleading, or other Definitive
Document) or the Plan;

 

(e)           except
with respect to any transaction contemplated by the First Day Motions (on the terms set forth in such First Day Motion and any
agreement or form of agreement attached thereto) or otherwise consented to in writing by the Initial Consenting Stakeholders prior
to the Agreement Effective Date: (i) sell (including any sale leaseback transaction), lease, mortgage, pledge, grant, or incur
any encumbrance on, or otherwise Transfer, any material properties or material assets of the Company Parties, including any Equity
Interests, other than in the ordinary course of business; (ii) purchase, lease, or otherwise acquire (by merger, exchange, consolidation,
acquisition of stock or assets or otherwise) any material assets or material properties, other than in the ordinary course of
business; or (iii) commence any liquidation or wind down process with respect to any of the Company Parties’ businesses
or enter into any agreement or arrangement, or modification to any agreement or arrangement, in connection therewith;

 

    13

     

    

 

(f)            (i)
enter into or amend, adopt, restate, supplement, or otherwise modify any employee benefit, deferred compensation, incentive, retention,
bonus, or other compensatory arrangements, policies, programs, practices, plans or agreements, including offer letters, employment
agreements, consulting agreements, severance arrangements, or change in control arrangements with or for the benefit of any of
its employees that are a senior vice president or more senior, (ii) increase the base salary, target bonus opportunity, or other
benefits payable by the Company Parties or to any of their executive officers, or (iii) make any payment to any former Insider
(as of the Agreement Effective Date) of any post-employment, retirement or similar plan or program, severance agreement, or similar
arrangement;

 

(g)           assume,
assume and assign, or reject executory contracts or unexpired leases; provided that the consent of the Required Consenting
Stakeholders shall not be unreasonably withheld; provided, further, that the Company Parties shall provide four
(4) Business Days’ prior written notice of any assumption, assumption and assignment, or rejection of any executory contract
or unexpired lease, which notice shall include the analysis underlying the Company Parties’ decision to assume, assume and
assign, or reject such executory contract or unexpired lease, including adequate information supporting such analysis and decision,
and, absent written notification during that period from Milbank or Greenhill to the Company Parties that the Required Consenting
Stakeholders do not consent, the Required Consenting Stakeholders shall be deemed to have consented to any such assumption, assumption
and assignment, or rejection;

 

(h)           enter
in any agreement, settlement, or other arrangement with any of the landlords under the Debtors’ leases waiving, deferring,
or modifying the rent payments or rent structure under such leases; provided that the consent of the Required Consenting
Stakeholders shall not be unreasonably withheld; provided, further, that the Company Parties shall provide four
(4) Business Days’ prior written notice of any such agreement, settlement, or other arrangement, which notice shall include
the analysis underlying the Company Parties’ decision to enter into such agreement, settlement, or other arrangement, including
adequate information supporting such analysis and decision, and, absent written notification during that period from Milbank or
Greenhill to the Company Parties that the Required Consenting Stakeholders do not consent, the Required Consenting Stakeholder
shall be deemed to have consented to any such agreement, settlement, or other arrangement; or

 

(i)            pay
any prepetition Claim (including Claims pursuant to section 503(b)(9) of the Bankruptcy Code and lien Claims) held by any of the
Company Parties’ vendors except in compliance with the First Day Motions and only to the extent that the Company Parties
have (i) made commercially reasonable efforts to require such vendor to execute a trade agreement providing for the continuity
of goods and services to the Debtors or Reorganized Debtors, as applicable, on terms reasonably acceptable to the Required Consenting
Stakeholders (as determined in accordance with the consultation, notice, and consent procedures referenced in the following clause
(ii)), and (ii) provided notice of such payment to one or more Initial Consenting Stakeholders pursuant to consultation, notice,
and consent procedures to be agreed between the Company Parties and the Required Consenting Stakeholders.

 

6.03.        Except
with the prior written consent of the Required Consenting Stakeholders, during the Agreement Effective Period, neither of the
LuxCo Entities shall incur any material obligations to any third party or otherwise lease, mortgage, pledge, grant, or incur
any encumbrance on, or otherwise Transfer, any material asset.

 

    14

     

    

 

Section
7.              
Additional Provisions Regarding Company Parties’ Commitments.

 

7.01.       
Notwithstanding anything to the contrary in this Agreement, nothing in this Agreement shall require a Company Party
or the board of directors, board of managers, or similar governing body of a Company Party, after consulting with counsel, to take
any action or to refrain from taking any action with respect to the Restructuring Transactions to the extent taking or failing
to take such action would be inconsistent with applicable Law or its fiduciary obligations under applicable Law, and any such action
or inaction pursuant to this Section 7.01 shall not be deemed to constitute a breach of this Agreement (other than a failure to
comply with this Section 7); provided that the Company Parties shall notify counsel to the Consenting Stakeholders in writing
promptly in the event of any such determination (and in any event no later than two (2) Business Days following such determination).

 

7.02.       
Notwithstanding anything to the contrary in this Agreement (but subject to Section 7.01), each Company Party
and their respective directors, officers, employees, investment bankers, attorneys, accountants, consultants, and other advisors
or representatives shall have the rights to: (a) consider, respond to, and facilitate Alternative Restructuring Proposals; (b)
provide access to non-public information concerning any Company Party to any Entity or enter into Confidentiality Agreements or
nondisclosure agreements with any Entity; (c) maintain or continue discussions or negotiations with respect to Alternative Restructuring
Proposals; (d) otherwise cooperate with, assist, participate in, or facilitate any inquiries, proposals, discussions, or negotiation
of Alternative Restructuring Proposals; and (e) enter into or continue discussions or negotiations with holders of Claims
or Equity Interests (including any Consenting Stakeholder), any other party in interest in the Chapter 11 Cases (including any
official committee and the United States Trustee), or any other Entity regarding the Restructuring Transactions or Alternative
Restructuring Proposals; provided that the Company Parties shall (x) provide a copy of any written Alternative Restructuring
Proposal (and notice of, and a written summary of, any oral Alternative Restructuring Proposal) within two (2) Business Days of
the Company Parties’ or their advisors’ receipt of such Alternative Restructuring Proposal to Greenhill and Milbank
and (y) provide such information to Milbank as reasonably requested by the Lender Group or as necessary to keep the Lender Group
reasonably informed as to the status and substance of such discussions.

 

7.03.       
Nothing in this Agreement shall: (a) impair or waive the rights of any Company Party to assert or raise any objection
permitted under this Agreement in connection with the Restructuring Transactions; or (b) prevent any Company Party from enforcing
this Agreement or contesting whether any matter, fact, or thing is a breach of, or is inconsistent with, this Agreement.

 

Section
8.              
Transfer of Interests and Securities.

 

8.01.       
During the Agreement Effective Period, no Consenting Stakeholder shall Transfer any ownership (including any beneficial
ownership as defined in the Rule 13d-3 under the Securities Exchange Act of 1934, as amended) of any Company Claims/Interests to
any affiliated or unaffiliated party, including any party in which it may hold a direct or indirect beneficial interest, unless:

 

(a)             
 such Transfer is made on or prior to the date that is at least two (2) Business Days prior to the Plan Effective
Date;

 

    15

     

    

 

(b)              
prior to the funding of the DIP Term Facility, in the case of a Transfer (other than by participation) of Term Loan
Claims by a Consenting Stakeholder with a commitment to fund New Money DIP Loans (as defined in the Backstop Commitment Letter),
such Consenting Stakeholder retains Term Loan Claims in an amount equal to or greater than its allocation of Roll-Up DIP Loans
(as defined in the Backstop Commitment Letter); and

 

(c)              
(i) the transferee executes and delivers to counsel to the Company Parties and Milbank, at or before the time of
the proposed Transfer, a Transfer Agreement; (ii) the transferee is a Consenting Stakeholder; or (iii) the transferee is an entity
that is acting in its capacity as a Qualified Marketmaker, provided that (x) any subsequent Transfer by such Qualified Marketmaker
of the right, title, or interest in such Company Claims/Interests is to a transferee that is or becomes a Consenting Stakeholder
at the time of such Transfer and (y) the Qualified Marketmaker complies with Section 8.05 hereof.

 

8.02.       
Upon compliance with the requirements of Section 8.01, the transferor shall be deemed to relinquish its rights
(and be released from its obligations) under this Agreement to the extent of the rights and obligations in respect of such transferred
Company Claims/Interests. Any Transfer in violation of Section 8.01 shall be void ab initio.

 

8.03.       
This Agreement shall in no way be construed to preclude the Consenting Stakeholders from acquiring additional Company
Claims/Interests; provided that such additional Company Claims/Interests shall automatically and immediately upon acquisition
by a Consenting Stakeholder be deemed subject to the terms of this Agreement (regardless of when or whether notice of such acquisition
is given to counsel to the Company Parties or counsel to the other Consenting Stakeholders).

 

8.04.       
This Section 8 shall not impose any obligation on any Company Party to issue any “cleansing letter” or
otherwise publicly disclose information for the purpose of enabling a Consenting Stakeholder to Transfer any of its Company Claims/Interests.
Notwithstanding anything to the contrary herein, to the extent a Company Party and another Party have entered into a Confidentiality
Agreement, the terms of such Confidentiality Agreement shall continue to apply and remain in full force and effect according to
its terms, and this Agreement does not supersede any rights or obligations otherwise arising under such Confidentiality Agreement.

 

8.05.        Notwithstanding
Section 8.01, a Qualified Marketmaker that acquires any Company Claims/Interests with the purpose and intent of acting
as a Qualified Marketmaker for such Company Claims/Interests shall not be required to execute and deliver a Transfer
Agreement in respect of such Company Claims/Interests if (i) such Qualified Marketmaker subsequently transfers such Company
Claims/Interests (by purchase, sale assignment, participation, or otherwise) within five (5) Business Days of its acquisition
to a transferee that is an entity that is not an affiliate, affiliated fund, or affiliated entity with a common investment
advisor; (ii) the transferee otherwise is a Permitted Transferee under Section 8.01; and (iii) the Transfer otherwise is
a Permitted Transfer under Section 8.01. To the extent that a Consenting Stakeholder is acting in its capacity as a
Qualified Marketmaker, it may Transfer (by purchase, sale, assignment, participation, or otherwise) any right, title or
interests in Company Claims/Interests that the Qualified Marketmaker acquires from a holder of the Company Claims/Interests
who is not a Consenting Stakeholder without the requirement that the transferee be a Permitted Transferee.

 

    16

     

    

 

8.06.       
Notwithstanding anything to the contrary in this Section 8, the restrictions on Transfer set forth in this Section
8 shall not apply to the grant of any liens or encumbrances on any claims and interests in favor of a bank or broker-dealer holding
custody of such claims and interests in the ordinary course of business and which lien or encumbrance is released upon the Transfer
of such claims and interests.

 

8.07.       
The Company Parties will provide notice of any Transfer Agreement received pursuant to Section 8.01(c)(i) (which
notice shall include the amount and type of Company Claims/Interests Transferred pursuant to such Transfer Agreement) to Milbank
by the later of (i) close of business on the second Business Day following the effective date of such Transfer Agreement and (ii)
the close of business on the second Business Day after the Company Parties receive notice of any such Transfer Agreement.

 

8.08.       
Each Consenting Stakeholder shall promptly provide Milbank and/or the Company Parties with information concerning
its then-current holdings upon reasonable request from Milbank or the Company Parties.

 

Section
9.              
Representations and Warranties of Consenting Stakeholders. Each Consenting Stakeholder severally,
and not jointly, represents and warrants that, as of the date such Consenting Stakeholder executes and delivers this Agreement
and as of the Plan Effective Date:

 

(a)              
it is (or upon the settlement of unsettled trades, will be) the beneficial or record owner of the face amount of
the Company Claims/Interests reflected in such Consenting Stakeholder’s signature page to this Agreement, Joinder, or Transfer
Agreement, as applicable (as may be updated pursuant to Section 8) (the “Disclosed Interests”) or
is the nominee, investment manager, or advisor for beneficial holders of the Disclosed Interests;

 

(b)              
it has (or upon the settlement of unsettled trades, will have) the full power and authority to act on behalf of,
vote and consent to matters concerning, such Company Claims/Interests;

 

(c)              
such Company Claims/Interests are free and clear of any pledge, lien, security interest, charge, claim, equity, option,
proxy, voting restriction, right of first refusal, or other limitation on disposition, transfer, or encumbrances of any kind, that
would materially and adversely affect in any way such Consenting Stakeholder’s ability to perform any of its obligations
under this Agreement at the time such obligations are required to be performed;

 

(d)              
it has (or upon the settlement of unsettled trades, will have) the full power to vote, approve changes to, and transfer
all of its Company Claims/Interests as contemplated by this Agreement subject to applicable Law; and

 

(e)               solely
with respect to holders of Company Claims/Interests, (i) it is either (A) a qualified institutional buyer as defined in Rule
144A of the Securities Act, (B) not a U.S. person (as defined in Regulation S of the Securities Act), or (C) an
institutional accredited investor (as defined in the Rules), and (ii) any securities acquired by the Consenting
Stakeholder in connection with the Restructuring Transactions will have been acquired for investment and not with a view to
distribution or resale in violation of the Securities Act.

 

    17

     

    

 

Section
10.          
Mutual Representations, Warranties, and Covenants. Each of the Parties represents, warrants,
and covenants to each other Party, as of the date such Party executed and delivers this Agreement and as of the Plan Effective
Date:

 

(a)               
it is validly existing and in good standing under the Laws of the state of its organization, and this Agreement is
a legal, valid, and binding obligation of such Party, enforceable against it in accordance with its terms, except as enforcement
may be limited by applicable Laws relating to or limiting creditors’ rights generally or by equitable principles relating
to enforceability;

 

(b)              
except as expressly provided in this Agreement, the Plan, and the Bankruptcy Code, no consent or approval is required
by any other person or entity in order for it to effectuate the Restructuring Transactions contemplated by, and perform its respective
obligations under, this Agreement;

 

(c)              
the entry into and performance by it of, and the transactions contemplated by, this Agreement do not, and will not,
conflict in any material respect with any Law or regulation applicable to it or with any of its articles of association, memorandum
of association or other constitutional documents;

 

(d)              
except as expressly provided in this Agreement, it has (or will have, at the relevant time) all requisite corporate
or other power and authority to enter into, execute, and deliver this Agreement and to effectuate the Restructuring Transactions
contemplated by, and perform its respective obligations under, this Agreement; and

 

(e)              
except as expressly provided by this Agreement, it is not party to any restructuring or similar agreements or arrangements
with the other Parties that have not been disclosed to all Parties.

 

Section
11.          
Termination Events.

 

11.01.   
Consenting Stakeholder Termination Events. This Agreement may be terminated by the Required Consenting Stakeholders
by the delivery to the Company Parties of a written notice in accordance with Section 13.11 hereof upon the occurrence of
the following events:

 

(a)               
the Petition Date has not occurred by 11:59 p.m. (Eastern Time) on July 23, 2020;

 

(b)               
the Debtors have not filed the Rent Deferral Motion with the Bankruptcy Court by the date that is three (3) calendar
days after the Petition Date

 

(c)               
the Bankruptcy Court has not entered the Cash Collateral Order on an interim basis by the date that is five (5) Business
Days after the Petition Date;

 

    18

     

    

 

(d)                the Bankruptcy Court has not entered the DIP Financing Order on a final basis by the date that is thirty-five (35)
calendar days after the Petition Date;

 

(e)               
the Bankruptcy Court has not entered the Disclosure Statement Order by the date that is sixty (60) calendar days
after the Petition Date;

 

(f)                
solicitation of the Plan has not commenced by the date that is seventy (70) calendar days after the Petition Date;

 

(g)               
the Bankruptcy Court has not entered the Confirmation Order by the date that is one hundred ten (110) calendar days
after the Petition Date;

 

(h)               
the Plan Effective Date has not occurred by the date that is one hundred thirty (130) calendar days after the
Petition Date;

 

(i)                
the breach in any material respect by a Company Party of any of the representations, warranties, or covenants of
the Company Parties set forth in this Agreement that (i) is adverse to the Consenting Stakeholders seeking termination pursuant
to this provision and (ii) remains uncured for ten (10) Business Days after such terminating Consenting Stakeholders transmit a
written notice in accordance with Section 13.11 hereof detailing any such breach;

 

(j)                
the DIP ABL Facility (as applicable) is terminated and accelerated in accordance with its terms;

 

(k)               
the issuance by any governmental authority, including any regulatory authority or court of competent jurisdiction,
including the Bankruptcy Court, of any final, non-appealable ruling or order that (i) enjoins the consummation of a material portion
of the Restructuring Transactions and (ii) remains in effect for fifteen (15) Business Days after such terminating Consenting Stakeholders
transmit a written notice in accordance with Section 13.11 hereof detailing any such issuance; provided that this termination
right may not be exercised by any Party that sought or requested such ruling or order in contravention of any obligation set out
in this Agreement;

 

(l)                
the Bankruptcy Court enters an order denying confirmation of the Plan or the Confirmation Order is reversed or vacated;

 

(m)              
the entry of an order by the Bankruptcy Court, or the filing of a motion or application by any Company Party seeking
an order (without the prior written consent of the Required Consenting Stakeholders, not to be unreasonably withheld), (i) dismissing
any of the Chapter 11 Cases, (ii) converting one or more of the Chapter 11 Cases to a case under chapter 7 of the Bankruptcy Code,
or (iii) appointing an examiner with expanded powers beyond those set forth in sections 1106(a)(3) and (4) of the Bankruptcy
Code or a trustee in one or more of the Chapter 11 Cases;

 

(n)               any
Company Party (i) files, waives, amends or modifies, or files a pleading seeking approval of any Definitive Document or
authority to waive, amend or modify any Definitive Document (including any waiver of any term or condition therein) in a
manner that is materially inconsistent with, or constitutes a material breach of, this Agreement (including with respect to
the consent rights afforded the Consenting Stakeholders under this Agreement), without the prior written consent of the
Required Consenting Stakeholders, (ii) withdraws the Plan without the prior consent of the Required Consenting Stakeholders,
or (iii) publicly announces its intention to take any such acts listed in the foregoing clause (i) or (ii), in the case of
each of the foregoing clauses (i) through (iii), which remains uncured (to the extent curable) for five (5) Business Days
after such terminating Consenting Stakeholders transmit a written notice in accordance with Section 15.10 of this
Agreement detailing any of the foregoing;

 

    19

     

    

 

(o)                any Company Party files or supports another party in filing (i) a motion or pleading challenging the amount, validity, or priority
of any claims held by any Consenting Stakeholder against the Company Parties (or any liens securing such claims) or (ii) a motion or pleading
asserting (or seeking standing to assert) any purported claims or causes of action against any of the Consenting Stakeholders;

 

(p)                the
Bankruptcy Court grants relief that is materially inconsistent with this Agreement or the Plan (in each case, with such amendments and
modifications as have been effected in accordance with the terms hereof);

 

(q)                any Company Party files, proposes, or otherwise supports
any plan of liquidation, asset sale of all or substantially all of a Company Party’s assets or plan of reorganization other than
the Plan;

 

(r)                
the Bankruptcy Court enters an order terminating the Debtors’ exclusive right to file or solicit acceptances
of a plan of reorganization (including the Plan); or

 

(s)               
any court of competent jurisdiction has entered a final, non-appealable judgment or order declaring this Agreement
to be unenforceable.

 

11.02.   
Company Party Termination Events.  Any Company Party may terminate this Agreement as to all Parties upon
prior written notice to all Parties in accordance with Section 13.11 hereof upon the occurrence of any of the following events:

 

(a)              
the breach in any material respect by one or more of the Consenting Stakeholders of any provision set forth in this
Agreement and (i) such breach remains uncured for a period of fifteen (15) Business Days after the receipt by the Consenting Stakeholders
of notice of such breach and (ii) the non-breaching Consenting Stakeholders no longer collectively beneficially own or control
at least two-thirds of the aggregate principal amount of Term Loan Claims;

 

(b)              
the board of directors, board of managers, or such similar governing body of any Company Party determines, after
consulting with counsel, (i) that proceeding with any of the Restructuring Transactions would be inconsistent with the exercise
of its fiduciary duties or applicable Law or (ii) in the exercise of its fiduciary duties, to pursue an Alternative Restructuring
Proposal;

 

(c)                the
issuance by any governmental authority, including any regulatory authority or court of competent jurisdiction, including the
Bankruptcy Court, of any final, non-appealable ruling or order that (i) enjoins the consummation of a material portion of the
Restructuring Transactions and (ii) remains in effect for fifteen (15) Business Days after the terminating Company Party
transmits a written notice in accordance with Section 13.11 hereof detailing any such issuance; provided that
this termination right shall not apply to or be exercised by any Company Party that sought or requested such ruling or order
in contravention of any obligation or restriction set out in this Agreement; or

 

    20

     

    

 

(d)               
the Bankruptcy Court enters an order denying confirmation of the Plan.

 

11.03.   
Mutual Termination.  This Agreement, and the obligations of all Parties hereunder, may be terminated
by mutual written agreement among all of the following: (a) the Required Consenting Stakeholders; and (b) each Company Party.

 

11.04.   
Individual Termination.  Any individual Consenting Stakeholder may terminate this Agreement, as to itself
only, by the delivery to the Company Parties of a written notice in accordance with Section 13.11 hereof if (a) the Plan Effective
Date has not occurred by the Outside Date or (b) Section 11.01(o) is breached by any Company Party with respect to such Consenting
Stakeholder.

 

11.05.   
Automatic Termination.  This Agreement shall terminate automatically without any further required action
or notice immediately after the Plan Effective Date.

 

11.06.    Effect
of Termination.  Upon the occurrence of a Termination Date as to a Party, this Agreement shall be of no further
force and effect as to such Party and each Party subject to such termination shall be released from its commitments,
undertakings, and agreements under or related to this Agreement and shall have the rights and remedies that it would have
had, had it not entered into this Agreement, and shall be entitled to take all actions, whether with respect to the
Restructuring Transactions or otherwise, that it would have been entitled to take had it not entered into this Agreement,
including with respect to any and all Claims or causes of action.  Upon the occurrence of a Termination Date prior to
the Confirmation Order being entered by a Bankruptcy Court, any and all consents, agreements, undertakings, waivers,
forbearances, votes or ballots tendered by the Parties subject to such termination before a Termination Date shall be deemed,
for all purposes, to be null and void from the first instance and shall not be considered or otherwise used in any manner by
the Parties in connection with the Restructuring Transactions and this Agreement or otherwise; provided any Consenting
Stakeholder withdrawing or changing its vote pursuant to this Section 11.06 shall promptly provide written notice of such
withdrawal or change to each other Party to this Agreement and, if such withdrawal or change occurs on or after the Petition
Date, file notice of such withdrawal or change with the Bankruptcy Court. Nothing in this Agreement shall be construed as
prohibiting a Company Party or any of the Consenting Stakeholders from contesting whether any such termination is in
accordance with its terms or to seek enforcement of any rights under this Agreement that arose or existed before a
Termination Date. Except as expressly provided in this Agreement, nothing herein is intended to, or does, in any manner
waive, limit, impair, or restrict (a) any right of any Company Party or the ability of any Company Party to protect and
reserve its rights (including rights under this Agreement), remedies, and interests, including its claims against any
Consenting Stakeholder, and (b) any right of any Consenting Stakeholder, or the ability of any Consenting Stakeholder,
to protect and preserve its rights (including rights under this Agreement), remedies, and interests, including its claims
against any Company Party or Consenting Stakeholder. No purported termination of this Agreement shall be effective under this
Section 11.06 or otherwise if the Party seeking to terminate this Agreement is in material breach of this Agreement,
except a termination pursuant to Section 11.02(b) or Section 11.02(d). Nothing in this Section 11.06 shall
restrict any Company Party’s right to terminate this Agreement in accordance with Section 11.02(b).

 

    21

     

    

 

Section
12.          
Amendments and Waivers.

 

(a)              
This Agreement may not be modified, amended, or supplemented, and no condition or requirement of this Agreement may
be waived, in any manner except in accordance with this Section 12.

 

(b)              
This Agreement may be modified, amended, or supplemented, or a condition or requirement of this Agreement may be
waived, in a writing signed by: (a) each Company Party and (b) the Required Consenting Stakeholders; provided that if the
proposed modification, amendment, waiver, or supplement has a material, disproportionate, and adverse effect on any of the Company
Claims/Interests held by a Consenting Stakeholder, then the consent of each such affected Consenting Stakeholder shall also be
required to effectuate such modification, amendment, waiver or supplement; provided, further, that (i) any modification,
amendment, or supplement to the definition of “Outside Date” shall not be binding on any Consenting Stakeholder that
has not provided its prior written consent to such amendment, (ii) any modification, amendment, or supplement to the definition
of “Required Consenting Stakeholders” shall require the prior written consent of each Consenting Stakeholder, (iii)
any modification, amendment, or supplement to Section 11.04 hereof shall require the prior written consent of each Consenting Stakeholder,
(iv) any modification, amendment, or supplement to Section 4.03 shall not be binding on any Consenting Stakeholder that has not
provided its prior written consent to such amendment, and (v) any modification, amendment or supplement to this Section 12 shall
require the prior written consent of each Consenting Stakeholder.

 

(c)              
Any proposed modification, amendment, waiver or supplement that does not comply with this Section 12 shall be ineffective
and void ab initio.

 

(d)              
The waiver by any Party of a breach of any provision of this Agreement shall not operate or be construed as a further
or continuing waiver of such breach or as a waiver of any other or subsequent breach. No failure on the part of any Party to exercise,
and no delay in exercising, any right, power or remedy under this Agreement shall operate as a waiver of any such right, power
or remedy or any provision of this Agreement, nor shall any single or partial exercise of such right, power or remedy by such Party
preclude any other or further exercise of such right, power or remedy or the exercise of any other right, power or remedy. All
remedies under this Agreement are cumulative and are not exclusive of any other remedies provided by Law.

 

Section
13.          
Miscellaneous.

 

13.01.   
Acknowledgement. Notwithstanding any other provision herein, this Agreement is not and shall not be deemed
to be an offer with respect to any securities or solicitation of votes for the acceptance of a plan of reorganization for purposes
of sections 1125 and 1126 of the Bankruptcy Code or otherwise.  Any such offer or solicitation will be made only in compliance
with all applicable securities Laws, provisions of the Bankruptcy Code, and/or other applicable Law.

 

    22

     

    

 

13.02.  
 Tax Matters. The Parties will work together in good faith to structure and implement the Restructuring Transactions
in a tax efficient manner; provided that such tax structure shall be reasonably acceptable to the Required Consenting Stakeholders
and the Company Parties.

 

13.03.   
Exhibits Incorporated by Reference; Conflicts. Each of the exhibits, annexes, signatures pages, and schedules
attached hereto is expressly incorporated herein and made a part of this Agreement, and all references to this Agreement shall
include such exhibits, annexes, and schedules. In the event of any inconsistency between this Agreement (without reference to the
exhibits, annexes, and schedules hereto) and the exhibits, annexes, and schedules hereto, this Agreement (without reference to
the exhibits, annexes, and schedules thereto) shall govern.

 

13.04.   
Further Assurances.  Subject to the other terms of this Agreement, the Parties agree to execute and deliver
such other instruments and perform such acts, in addition to the matters herein specified, as may be reasonably appropriate or
necessary, or as may be required by order of the Bankruptcy Court, from time to time, to effectuate the Restructuring Transactions,
as applicable.

 

13.05.   
Complete Agreement.  Except as otherwise explicitly provided herein, this Agreement constitutes the entire
agreement among the Parties with respect to the subject matter hereof and supersedes all prior agreements, oral or written, among
the Parties with respect thereto, other than any Confidentiality Agreement.

 

13.06.   
GOVERNING LAW; SUBMISSION TO JURISDICTION; SELECTION OF FORUM.  EXCEPT TO THE EXTENT SUPERSEDED BY FEDERAL
BANKRUPTCY LAW, THIS AGREEMENT IS TO BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK APPLICABLE
TO CONTRACTS MADE AND TO BE PERFORMED IN SUCH STATE, WITHOUT GIVING EFFECT TO THE CONFLICT OF LAWS PRINCIPLES THEREOF.  Each
Party hereto agrees that it shall bring any action or proceeding in respect of any claim arising out of or related to this Agreement,
to the extent possible, in the Bankruptcy Court, and solely in connection with claims arising under this Agreement: (a) irrevocably
submits to the exclusive jurisdiction of the Bankruptcy Court; (b) waives any objection to laying venue in any such action
or proceeding in the Bankruptcy Court; and (c) waives any objection that the Bankruptcy Court is an inconvenient forum or
does not have jurisdiction over any Party hereto.

 

13.07.   
Trial by Jury Waiver. EACH PARTY HERETO IRREVOCABLY WAIVES
ANY AND ALL RIGHT TO TRIAL BY JURY IN ANY LEGAL PROCEEDING ARISING OUT OF OR RELATING TO THIS AGREEMENT OR THE TRANSACTIONS CONTEMPLATED
HEREBY.

 

13.08.   
Execution of Agreement.  This Agreement may be executed and delivered in any number of counterparts and
by way of electronic signature and delivery, each such counterpart, when executed and delivered, shall be deemed an original, and
all of which together shall constitute the same agreement.  Except as expressly provided in this Agreement, each individual
executing this Agreement on behalf of a Party has been duly authorized and empowered to execute and deliver this Agreement on behalf
of said Party.

 

    23

     

    

 

13.09.   
 Rules of Construction.  This Agreement is the product of negotiations among the Company Parties and
the Consenting Stakeholders, and in the enforcement or interpretation hereof, is to be interpreted in a neutral manner, and any
presumption with regard to interpretation for or against any Party by reason of that Party having drafted or caused to be drafted
this Agreement, or any portion hereof, shall not be effective in regard to the interpretation hereof. The Company Parties and the
Consenting Stakeholders were each represented by counsel during the negotiations and drafting of this Agreement and continue to
be represented by counsel.

 

13.10.   
Successors and Assigns; Third Parties.  This Agreement is intended to bind and inure to the benefit of
the Parties and their respective successors and permitted assigns, as applicable. There are no third party beneficiaries under
this Agreement, and the rights or obligations of any Party under this Agreement may not be assigned, delegated, or transferred
to any other person or entity. 

 

13.11.   
Notices.  All notices hereunder shall be deemed given if in writing and delivered, by electronic mail,
courier, or registered or certified mail (return receipt requested), to the following addresses (or at such other addresses as
shall be specified by like notice):

 

(a)           
if to a Company Party, to:

 

Ascena Retail Group,
Inc.

933 MacArthur Boulevard

Mahwah, New Jersey 07430

Attn:    Michael
Veitenheimer

Email:   michael.veitenheimer@ascenaretail.com

 

with copies to:

 

Kirkland & Ellis LLP 

601 Lexington Avenue 

New York, NY 10022 

Attn:     Steven N. Serajeddini 

Email:    steven.serajeddini@kirkland.com

 

and

 

Kirkland &
Ellis LLP

300 North LaSalle Street

Chicago, IL 60654

	 	Attn:	John R. Luze
	 	 	Jeff Michalik
		Email:	john.luze@kirkland.com
	 	 	jeff.michalik@kirkland.com

 

    24

     

    

 

(b)          
if to a Consenting Stakeholder, to:

 

Milbank LLP

55 Hudson Yards

New York, NY 10001-2163 

	 	Attn:	Evan R. Fleck
	 	 	Abigail L. Debold
		Email:	efleck@milbank.com

adebold@milbank.com

 

Any notice given by delivery, mail, or
courier shall be effective when received.

 

13.12.   
Fees and Expenses. The Company Parties shall pay and reimburse all reasonable and documented fees and expenses
when due (including travel costs and expenses) and all outstanding and unpaid amounts incurred in connection with the Restructuring
Transactions (including, for the avoidance of doubt, all reasonable and documented fees and expenses incurred prior to the date
hereof) of the attorneys, accountants, other professionals, advisors, and consultants of the Lender Group (whether incurred directly
or on their behalf and regardless of whether such fees and expenses are incurred before or after the Petition Date), including
the fees and expenses of Greenhill, Milbank, Whiteford Taylor, and Loyens, including all amounts payable or reimbursable under
applicable fee or engagement letters (including any success or transaction fees when earned) with the Company Parties (which agreements
shall not be terminated by the Company Parties before the termination of this Agreement).

 

13.13.   
Reservation of Rights. After the termination of this Agreement pursuant to Section 11, the Parties each fully
reserve any and all of their respective rights, remedies, claims, and interests, subject to Section 11 in the case of any claim
for breach of this Agreement. Further, nothing in herein shall be construed to prohibit any Party from appearing as a party-in-interest
in any matter to be adjudicated in the Chapter 11 Cases, so long as such appearance and the positions advocated in connection therewith
are consistent with this Agreement and the Plan and are not for the purpose of, and could not reasonably be expected to have the
effect of, hindering, delaying or preventing the consummation of the Restructuring Transactions.

 

13.14.   
Independent Due Diligence and Decision Making. Each Consenting Stakeholder hereby confirms that its decision
to execute this Agreement has been based upon its independent investigation of the operations, businesses, financial and other
conditions, and prospects of the Company Parties, and without reliance on any statement of any other Party or Entity (other than
such express representations or warranties of the Company Parties contained herein).

 

13.15.   
Enforceability of Agreement. Each of the Parties to the extent enforceable waives any right to assert that
the exercise of termination rights under this Agreement is subject to the automatic stay provisions of the Bankruptcy Code, and
expressly stipulates and consents hereunder to the prospective modification of the automatic stay provisions of the Bankruptcy
Code for purposes of exercising termination rights under this Agreement, to the extent the Bankruptcy Court determines that such
relief is required.

 

13.16.    Waiver.
If the Restructuring Transactions are not consummated, or if this Agreement is terminated for any reason, the Parties fully
reserve any and all of their rights. Pursuant to Federal Rule of Evidence 408 and any other applicable rules of evidence,
this Agreement and all negotiations relating hereto shall not be admissible into evidence in any proceeding other than a
proceeding to enforce its terms or the payment of damages to which a Party may be entitled under this Agreement.

 

    25

     

    

 

13.17.   
Specific Performance. It is understood and agreed by the Parties that money damages would be an insufficient
remedy for any breach of this Agreement by any Party, and each non-breaching Party shall be entitled to seek specific performance
and injunctive or other equitable relief (without the posting of any bond and without proof of actual damages) as a remedy of any
such breach, including an order of the Bankruptcy Court or other court of competent jurisdiction requiring any Party to comply
promptly with any of its obligations hereunder.

 

13.18.   
Several, Not Joint, Claims. Except where otherwise specified, the agreements, representations, warranties,
and obligations of the Parties under this Agreement are, in all respects, several and not joint.

 

13.19.   
Severability and Construction. If any provision of this Agreement shall be held by a court of competent jurisdiction
to be illegal, invalid, or unenforceable, the remaining provisions shall remain in full force and effect if essential terms and
conditions of this Agreement for each Party remain valid, binding, and enforceable.

 

13.20.   
Remedies Cumulative. All rights, powers, and remedies provided under this Agreement or otherwise available
in respect hereof at Law or in equity shall be cumulative and not alternative, and the exercise of any right, power, or remedy
thereof by any Party shall not preclude the simultaneous or later exercise of any other such right, power, or remedy by such Party.

 

13.21.   
Capacities of Consenting Stakeholders. Each Consenting Stakeholder has entered into this agreement on account
of all Company Claims/Interests that it holds (directly or through discretionary accounts that it manages or advises) and, except
where otherwise specified in this Agreement, shall take or refrain from taking all actions that it is obligated to take or refrain
from taking under this Agreement with respect to all such Company Claims/Interests.

 

13.22.   
Relationship Among Consenting Stakeholders and the Company Parties. None of the Consenting Stakeholders shall
have any fiduciary duty, any duty of trust or confidence in any form, or other duties or responsibilities to each other, any Consenting
Stakeholder, the Company Parties, or any of the Company Parties’ creditors or other stakeholders, and, other than as expressly
set forth herein, there are no commitments among or between the Consenting Stakeholders. It is understood and agreed that any Consenting
Stakeholder may trade in any debt or equity securities of the Company Parties without the consent of the Company Parties or any
other Consenting Stakeholder, subject to applicable securities laws and this Agreement, including Section 8 hereof. No prior history,
pattern or practice of sharing confidences among or between any of the Consenting Stakeholders and/or the Company Parties shall
in any way affect or negate this understanding and agreement.

 

13.23.    Direction
to the Agent. By their signatures to this Agreement, the Initial Consenting Stakeholders signatory thereto, constituting
Required Lenders under the Term Loan Credit Agreement hereby direct and authorize the Administrative Agent (or any of its
Affiliates) to (i) consent to the entry of the Cash Collateral Order (each of the Initial Consenting Stakeholders hereby
authorizes Milbank, LLP, as counsel for the Initial Consenting Stakeholders, to direct the administrative agent under the
Term Loan Credit Agreement to consent to the entry of the Cash Collateral Order), (ii) to execute an acknowledgement to the
supplement to the existing security agreement in respect of the equity held by the Loan Parties (as defined in the Term Loan
Credit Agreement) in the LuxCo Entities as contemplated by this Agreement and (iii) to execute any documentation deemed
reasonably necessary by the Administrative Agent or its Affiliates to evidence such consent or acknowledgment, as applicable
(the direction by the Required Lenders hereunder to the Administrative Agent to grant such consent and acknowledgment, as
applicable, and to take actions deemed reasonably necessary by it to evidence such consent or acknowledgment, as applicable,
is hereinafter referred to as the “Direction”). For the avoidance of doubt, the Initial Consenting
Stakeholders agree that the consents and acknowledgments granted, and the actions taken, by the Administrative Agent and its
Affiliates pursuant to and arising out of the Direction are indemnified actions covered by the indemnification provisions of
Section 9.03 of the Term Loan Credit Agreement. This Direction shall be governed by, and construed in accordance with, the
laws of the State of New York. Notwithstanding Section 13.10, the Administrative Agent is a third party beneficiary to this
Section 13.23 and is relying thereon in taking action in accordance with the Direction.

 

    26

     

    

 

13.24.   
Email Consents. Where a written consent, acceptance, approval, or waiver is required pursuant to or contemplated
by this Agreement, pursuant to Section 3.02, Section 12, or otherwise, including a written approval by the Company Parties or the
Required Consenting Stakeholders, such written consent, acceptance, approval, or waiver shall be deemed to have occurred if, by
agreement between counsel to the Parties submitting and receiving such consent, acceptance, approval, or waiver, it is conveyed
in writing (including electronic mail) between each such counsel without representations or warranties of any kind on behalf of
such counsel.

 

13.25.   
Publicity. The Company Parties will submit to Milbank all press releases, public filings, or public announcements,
in each case, to be made by any of the Company Parties announcing entry into this Agreement or the transactions contemplated hereby
in advance of release and will reasonably consult with Milbank with respect to such communications. Except as required by law or
regulation or by any governmental or regulatory (including self-regulatory) authority, no Party or its advisors shall (a) use
the name of any Consenting Stakeholder in any public manner (including in any press release) or (b) disclose to any Person (including,
for the avoidance of doubt, any other Consenting Stakeholder), other than legal, accounting, financial and other advisors to the
Company Parties, the principal amount or percentage of Term Loan Claims, in each case, without such Consenting Stakeholder’s
prior written consent; provided that (i) if such disclosure is required by law, subpoena, or other legal process or regulation
or by any governmental or regulatory (including self-regulatory) authority, the disclosing Party shall afford the relevant Consenting
Stakeholder a reasonable opportunity to review and comment in advance of such disclosure if reasonably practicable and permitted
by applicable law and shall take all reasonable measures to limit such disclosure to the extent permitted by applicable law and
(ii) the foregoing shall not prohibit the public disclosure, including in connection with the Chapter 11 Cases, of the aggregate
percentage or aggregate principal amount of Claims held by all the Consenting Stakeholders collectively. Notwithstanding the foregoing,
(x) any Party hereto may disclose the identities of the Parties hereto in any action to enforce this Agreement or in an action
for damages as a result of any breaches hereof and (y) any Party hereto may disclose, to the extent expressly consented to
in writing by a Consenting Stakeholder, such Consenting Stakeholder’s identity and individual holdings.

 

    27

     

    

 

IN WITNESS WHEREOF,
the Parties hereto have executed this Agreement on the day and year first above written. 

 

[Signature pages follow.]

 

    28

     

    

 

Company Parties’ Signature Page
to

the Restructuring Support Agreement 

 

Ascena
retail group, inc. 

and
the other COMPANY PARTIES

 

	By:	/s/ Carrie W. Teffner	 
	Name: Carrie W. Teffner	 
	Authorized Signatory	 

 

     

     

    

 

	 	ANNTAYLOR LOFT GP LUX S.À
    R.L.
	 	 
	 	By:	/s/ Marc Crawford
	 	Name: Marc Crawford
	 	authorised signatory 
	 	 
	 	ANNTAYLOR LOFT BORROWER LUX
    SCS
	 	 
	 	By:	/s/ Marc Crawford
	 	Name: Marc Crawford
	 	authorised signatory

 

     

     

    

 

Consenting Stakeholder Signature Page
to

the Restructuring Support Agreement 

 

[CONSENTING
STAKEHOLDER SIGNATURE PAGES On file with the Company] 

 

     

     

    

 

EXHIBIT A

Company Parties

 

Ascena Retail Group, Inc.

	933 Inspiration LLC

        ANN Card Services, Inc.

        ANN, Inc.

        AnnCo, Inc.

        AnnTaylor Distribution Services, Inc.

        AnnTaylor of Puerto Rico, Inc.

        AnnTaylor Retail, Inc.

        AnnTaylor, Inc.

        AnnTaylor Loft Borrower Lux SCS

        AnnTaylor Loft GP Lux S.À R.L.

        Ascena Retail Holdings, Inc.

        Ascena Trade Services, LLC

        ASNA Plus Fashion, Inc.

        ASNA Value Fashion LLC

        BackingBrands Buying Agent, LLC

        BackingBrands Solutions, LLC

        C.S.F. Corp.

        Catalog Receivables LLC

        Catalog Seller LLC

        Catherines #5124, Inc.

        Catherines #5147, Inc.

        Catherines Stores Corporation

        Catherines, Inc.

        CCTM, Inc.

        Charming Sales Co. Four, Inc.

        Charming Sales Co. One, Inc.

        Charming Sales Co. Three, Inc.

        Charming Sales Co. Two, Inc.

        Charming Shoppes of Delaware, Inc.

        Charming Shoppes Receivables Corp.

        Charming Shoppes Seller, Inc.

        Charming Shoppes Street, Inc.

        Charming Shoppes, Inc.

        Chestnut Acquisition Sub Inc.

        Crosstown Traders, Inc.

        CS Holdco II Inc.

        CSGC, Inc.

        CSI Industries, Inc.

        CSPE, LLC

        DBI Holdings, Inc.

        DBCM Holdings, LLC

        DBX, Inc. 

         

        

     

     

    

 

Duluth Real Estate LLC

Etna Retail DC, LLC

Fashion Apparel Sourcing LLC

Fashion Service Fulfillment Corporation

Fashion Service LLC

GC Fulfillment, LLC

Lane Bryant #6243, Inc.

Lane Bryant of Pennsylvania, Inc.

Lane Bryant Outlet 4106, Inc.

Lane Bryant Purchasing Corp.

Lane Bryant, Inc.

PSTM, Inc.

Sponsi, Inc.

Spirit of America, Inc.

Too GC, LLC

Tween Brands Agency, Inc.

Tween Brands Direct Services Inc.

Tween Brands Investment, LLC

Tween Brands Marketing, Inc.

Tween Brands Service Co.

Tween Brands, Inc.

Winks Lane, Inc.

Worldwide Retail Holdings, Inc.

 

     

     

    

 

EXHIBIT B

 

Restructuring Term Sheet

 

[Attached]

 

     

     

    

 

 

Execution Version

 

 

 

Ascena
Retail Group, Inc., et al.

Restructuring
Term Sheet1

 

 

 

This
term sheet (the “Restructuring Term Sheet”) sets forth the principal terms of the Restructuring Transactions.
The Restructuring Transactions will be consummated through cases (the “Chapter 11 Cases”) under chapter 11
of title 11 of the United States Code (the “Bankruptcy Code”) in the United States Bankruptcy Court for the
Eastern District of Virginia, Richmond Division (the “Bankruptcy Court”) and as otherwise set forth in the
Restructuring Support Agreement. This Restructuring Term Sheet does not include a description of all of the terms, conditions,
and other provisions that are to be contained in the definitive documentation governing the Restructuring Transactions, which
shall be subject to the applicable consent and approval rights of the Parties as set forth in the Restructuring Support Agreement.

 

THIS
RESTRUCTURING TERM SHEET DOES NOT CONSTITUTE (NOR WILL IT BE CONSTRUED AS) AN OFFER WITH RESPECT TO ANY SECURITIES OR A SOLICITATION
OF ACCEPTANCES OR REJECTIONS AS TO ANY CHAPTER 11 PLAN OF REORGANIZATION, IT BEING UNDERSTOOD THAT SUCH A SOLICITATION, IF ANY,
SHALL BE MADE ONLY IN COMPLIANCE WITH APPLICABLE PROVISIONS OF SECURITIES, BANKRUPTCY AND/OR OTHER APPLICABLE STATUTES, RULES,
AND LAWS.

 

UNLESS
OTHERWISE SET FORTH HEREIN, TO THE EXTENT THAT ANY PROVISION OF THIS RESTRUCTURING TERM SHEET IS INCONSISTENT WITH ANOTHER PROVISION
OF THE RESTRUCTURING SUPPORT AGREEMENT, THE TERMS OF THIS RESTRUCTURING TERM SHEET WITH RESPECT TO SUCH PROVISION SHALL CONTROL.

 

	OVERVIEW
	Implementation	The
        Debtors will effectuate the Restructuring Transactions through the filing of the Chapter 11 Cases and confirmation of
        the Plan, which shall be consistent with this Restructuring Term Sheet, subject to the terms and conditions set forth
        in the Restructuring Support Agreement. As further described herein and in the Restructuring Support Agreement, including
        the Backstop Commitment Letter, the Restructuring Transactions shall be funded through: (i) the consensual use of cash
        collateral under the Cash Collateral Order and the DIP Financing Order; (ii) a DIP Term Facility including $150 million
        in New Money DIP Loans and $161.8 million in Roll-Up DIP Loans; (iii) as applicable, a DIP ABL Facility; and (iv) the
        Exit Facilities.

         

        The
        Plan will constitute a separate chapter 11 plan of reorganization for each Debtor. For the avoidance of doubt, any action
        required to be taken by the Debtors on the Plan Effective Date pursuant to this Restructuring
        Term Sheet may be taken on the Plan Effective Date or as soon as is reasonably practicable
        thereafter.

         

	FINANCING
	DIP
    ABL Facility	The
    Debtors may obtain a commitment from certain ABL Lenders to provide an up to $400 million senior secured asset-based revolving
    debtor-in-possession credit facility (the “DIP ABL Facility”), pursuant to which the commitments and loans
    of the ABL Lenders under the ABL Facility will convert into the DIP ABL Facility during the Chapter 11 Cases pursuant to the
    DIP Financing Order, and will obtain a commitment from certain lenders to provide the Exit ABL Facility in an amount not less
    than $400 million subject to the conditions set forth in the ABL Commitment Letter.

 

 

		1	Capitalized
                                         terms used but not defined in this Restructuring Term Sheet have the meanings ascribed
                                         to them in (i) the Restructuring Support Agreement, dated as of July 23, 2020 (the “Restructuring
                                         Support Agreement”), to which this Restructuring Term Sheet is attached as Exhibit
                                         B or (ii) Annex I hereto.

 

     

     

    

 

	DIP
    Term Facility	Certain
        Prepetition Term Lenders (as defined in the Backstop Commitment Letter) and/or their affiliates (in their capacities as
        such, the “Backstop Commitment Parties”) have committed to provide the Debtors with an up to $311.8
        million superpriority senior secured debtor-in-possession term loan credit facility (the “DIP Term Facility”)
        consisting of (a) $150 million in new money term loans (the “New Money DIP Loans”) and (b) $161.8 million
        of term loans (the “Roll-Up DIP Loans” and, together with the New Money DIP Loans, the “DIP
        Term Loans”) rolling Term Loan Claims held by the DIP Term Lenders that provide New Money DIP Loans on the terms
        and conditions set forth in the Backstop Commitment Letter and the DIP Financing Order. Prepetition Term Lenders (including,
        for the avoidance of doubt, the Backstop Commitment Parties) will have the right to commit to their ratable share of 50%
        of the DIP Term Facility up to the date that is expected to be 10 business days after distribution of the Syndication
        Materials, which is estimated to occur within 5 business days after the Petition Date, by executing the Restructuring
        Support Agreement and taking such other actions as specified in the Syndication Materials. For the avoidance of doubt,
        participation in the DIP Term Facility shall include a commitment to convert the DIP Term Loans into First Out Exit Term
        Loans on the Plan Effective Date if certain conditions as set forth in the DIP Term Agreement and Exit Facility Term Sheet
        attached as Exhibit D to the Restructuring Support Agreement are satisfied

         

        The
        Cash Collateral Order and DIP Financing Order will include customary adequate protection for the Term Lenders, including,
        without limitation, and as acceptable to the Majority Backstop Commitment Parties:

         

        i.       
        superpriority adequate protection claims and adequate protection liens to the extent of any diminution in value
        in the collateral securing the Term Loan Claims, which adequate protection liens shall include liens on all unencumbered
        assets of the Debtors (excluding any assets that qualify as ABL Priority Collateral (as defined in the ABL Credit Agreement)
        and including the funding account for the DIP Term Facility and 100% of the equity interests in the LuxCo Entities);

         

        ii.      
        payment of the fees and expenses of the Lender Group’s advisors; and

         

        iii.     
        the reporting and milestones described below.

         

        Material
        terms for the DIP Term Loans include, without limitation and as set forth in the Form DIP Credit Agreement:

         

        a.      
        Maturity: Earlier of (i) 6 months after the Effective Date of the DIP Term Agreement, (ii) conversion into
        the First Out Term Loan Facility, (iii) dismissal of the Chapter 11 Cases, (iv) acceleration, (v) a sale of all or substantially
        all of the Debtors’ assets, and (vi) the Plan Effective Date

         

        b.       
        Coupon: L+1,175 bps

         

        c.       
        LIBOR Floor: 1.00%

         

        d.      
        Commitment Payment: 250 bps payable in cash on the principal amount of New Money DIP Loans to all DIP Term
        Lenders that provide New Money DIP Loans (including the Backstop Commitment Parties)

         

 

     - 2 -

     

    

 

	 	e.       Seasoning/Fronting: Fees to be paid by the Company Parties (in addition to the Backstop Premium and Commitment Payment) 

                                                                                                                                                                                    

                                                                                                                                                                                    f.        Mechanics: Full amount of the New Money DIP Term Loans may be drawn after entry of the DIP Financing Order, subject to the terms and conditions set forth in the DIP Credit Agreement   g.       Ratings Covenant: Commercially reasonable efforts to obtain a rating by each of S&P and Moody’s within 15 days of the entry of the DIP Financing Order 

                                                                                                                                                                                    

                                                                                                                                                                                   h.      
Milestones: Consistent with the milestones contained in sections 11.01(a) through 11.01(g) of the Restructuring
Support Agreement.

                                                                                                                                                                                    

                                                                                                                                                                                   i.        
Events of Default: Customary debtor-in-possession facility “Events of Default”

                                                                                                                                                                                    

                                                                                                                                                                                   j.        
Covenants: Customary covenants for similarly sized debtor-in-possession facilities

                                                                                                                                                                                    

                                                                                                                                                                                   k.       
Reporting: Monthly, quarterly and annual Financial Statements; weekly reports of liquidity and line-item receipts
and disbursements (including professional fees); weekly advisor and lender steering committee calls

                                                                                                                                                                                    

                                                                                                                                                                                   l.       
Variance Reporting: Delivered weekly, with written explanations for variances above 15% of actual receipts or actual
operating disbursements (unless the dollar amount corresponding to such percentage variance is less than $1 million)

                                                                                                                                                                                    

                                                                                                                                                                                   m.      
Budget: Delivered monthly, subject to approval of the Required Lenders

                                                                                                                                                                                    

                                                                                                                                                                                   n.       
Permitted Variance: 20%, tested on a cumulative basis, tested weekly on a 4-week rolling basis, of total net cash
flow to projected net cash flow, applicable only when Liquidity (as defined in the Form DIP Credit Agreement) is less than $150
million

                                                                                                                                                                                    

                                                                                                                                                                                   o.        Liquidity
Covenant: Minimum Liquidity of $100 million

                                                                                                                                                                                    

                                                                                                                                                                                   p.     
Collateral: First priority on all collateral securing the Term Loan Claims and all unencumbered assets (excluding
any assets that qualify as ABL Priority Collateral, which shall be subject to a second priority lien), including, for the avoidance
of doubt, a first priority interest in the funding account for the DIP Term Facility and 100% of the equity interests in the LuxCo
Entities

                                                                                                                                                                                    

                                                                                                                                                                                   q.       Use
of Proceeds: To be used in accordance with the approved budget for (i) transaction expenses, (ii) adequate protection payments,
(iii) fund Carve Out and (iv) general corporate purposes. Up to $50 million of the proceeds of the DIP Term Loans may be used
to repay any DIP ABL Facility Claims in cash

                                                                                                                                                                                    

                                                                                                                                                                                   The DIP Term Loans will be repaid in cash on their stated maturity date; provided
that, if certain conditions as set forth in the DIP Term Agreement and Exit Facility Term Sheet attached as Exhibit D
to the Restructuring Support Agreement are satisfied, on the Conversion Date (as defined in the DIP Term Agreement), the DIP Term
Loans held as of the date that is 2 Business Days prior to the Plan Effective Date will be converted to loans under the First
Out Term Loan Facility (the “First Out Exit Term Loans”) on the terms and conditions set forth in the DIP Term
Agreement and the Exit Facility Term Sheet; provided that upon certain events described in the DIP Term Agreement and if
the Conversion Date has not occurred, each DIP Term Loan shall be repaid with a non-refundable aggregate premium in an amount
equal to 11.23% of the DIP Term Loans so repaid in cash on the date on which such DIP Term Loans are repaid, and shall be subject
to the withholding provisions set forth in Section 2.15 of the DIP Term Agreement.  

 

     - 3 -

     

    

 

	Backstop
    Commitment	Pursuant
        to the Backstop Commitment Letter, the Backstop Commitment Parties will, in the allocations set forth on Schedule 1 thereto,
        (a) provide 50% of the DIP Term Loans and First Out Exit Term Loans and (b) provide any DIP Term Loans and First Out Exit
        Term Loans not provided by other Prepetition Term Lenders in accordance with the syndication process described above.

         

        As
        consideration for the Backstop Commitments and agreements of the Backstop Commitment Parties under the Restructuring Support
        Agreement, Ascena Topco will pay (or cause to be paid) to the Backstop Commitment Parties (or, at any Backstop Commitment
        Party’s option and upon such Related Lender’s designation (which may be provided by electronic communication),
        its Related Lender), a non-refundable backstop premium equal to $7.5 million (the “Backstop Premium”),2
        which shall be allocated to each Backstop Commitment Party, in an amount equal to (1) its percentage set
        forth on Schedule 2 to the Backstop Commitment Letter (the “Backstop Percentage”), multiplied by
        (2) the Backstop Premium, which shall be fully earned, nonrefundable and non-avoidable on the execution of the Backstop
        Commitment Letter and payable, free and clear of any withholding tax, in cash upon the funding of the New Money DIP Loans.

         

        If
        (a) a Termination Date occurs prior to the funding of the DIP Term Facility or (b) the DIP Term Facility has been funded
        and the Conversion Date does not occur, a non-refundable aggregate premium in an amount equal to $7.5 million shall be
        payable, free and clear of any withholding tax, in cash (the “Termination Premium”) on the Termination
        Date, in the case of clause (a), or the date on which the DIP Term Loans are repaid in full in cash, in the case of clause
        (b), which shall be allocated to each Backstop Commitment Party in an amount equal to (1) its Backstop Percentage, multiplied
        by (2) the Termination Premium.

         

	Definitive
    Documents	Any
    documents, including any Definitive Documents, that remain the subject of negotiation as of the Agreement Effective Date shall
    be subject to the rights and obligations set forth in the Restructuring Support Agreement.  Failure to reference
    such rights and obligations as it relates to any document referenced in this Restructuring Term Sheet shall not impair such
    rights and obligations.

 

 

		2	For tax purposes, unless
otherwise required by a change in applicable tax law or contrary determination (as defined in Section 1313(a) of the Internal
Revenue Code of 1986, as amended), the Company Parties and the Backstop Commitment Parties will (i) treat the Backstop Premium
and the Termination Premium as premiums paid by Ascena Topco to the Backstop Commitment Parties in exchange for the issuance of
a put right to Ascena Topco with respect to the DIP Term Facility and (ii) not take any tax position inconsistent with the tax
treatment described in clause (i).

 

     - 4 -

     

    

 

	TREATMENT
    OF CLAIMS AND INTERESTS UNDER THE PLAN
	DIP
    ABL Facility Claims	To
        the extent the Debtors obtain a commitment for a DIP ABL Facility that is funded prior to the Plan Effective Date, the
        Plan shall provide as follows:

         

        i.       
        If those certain conversion conditions set forth in the DIP ABL Agreement remain unsatisfied as of the Plan Effective
        Date, on the Plan Effective Date, each holder of an allowed DIP ABL Facility Claim shall receive, unless such holder agrees
        to less favorable treatment, cash in an amount equal to its allowed DIP ABL Facility Claim in full and final satisfaction,
        release, and discharge of, and in exchange for, such allowed DIP ABL Facility Claim.

         

        ii.      
        If those certain conversion conditions as set forth in the DIP ABL Agreement are fully satisfied as of the Plan
        Effective Date, on the Plan Effective Date, each holder of an allowed DIP ABL Facility Claim shall receive, unless such
        holder agrees to less favorable treatment, its pro rata share of participation in the Exit ABL Facility.

         

	DIP
    Term Facility Claims	On
    the Plan Effective Date, each holder of an allowed DIP Term Facility Claim shall receive, unless such holder agrees to less
    favorable treatment and subject to the terms and conditions of the DIP Term Facility and the Exit Facility Term Sheet, cash
    in an amount equal to its allowed DIP Term Facility Claim; provided that, if certain conditions as set forth in the
    DIP Term Agreement and Exit Facility Term Sheet are satisfied, each holder of an allowed DIP Term Facility Claim shall receive
    (i) loans arising under the First Out Exit Term Loan Facility in an amount equal to such holder’s allowed DIP Term Facility
    Claim and (ii) cash on account of accrued and unpaid interest and other charges payable through the Plan Effective Date, in
    full and final satisfaction, release, and discharge of, and in exchange for, such allowed DIP Term Facility Claim.
	Administrative
    Claims	On
    the Plan Effective Date, each holder of an allowed Administrative Claim shall receive payment in full in cash.
	Priority
    Tax Claims	On
    the Plan Effective Date, each holder of an allowed Priority Tax Claim shall receive treatment in a manner consistent with
    section 1129(a)(9)(C) of the Bankruptcy Code.
	Other
    Secured Claims	Each
        holder of an allowed Other Secured Claim shall receive, at the option of the applicable Debtor:

         

        i.       
        payment in full in cash;

         

        ii.      
        delivery of the collateral securing any such Claim and payment of any interest required under section 506(b) of
        the Bankruptcy Code;

         

        iii.     
        reinstatement of such Claim; or

         

        iv.     
        other treatment rendering such Claim unimpaired.

         

	Other
    Priority Claims	Each
    holder of an Other Priority Claim shall receive payment in full in cash or other treatment rendering such Claim unimpaired.

 

     - 5 -

     

    

 

	ABL
    Claims	To
        the extent any allowed ABL Claims remain outstanding on the Plan Effective Date, each holder of an allowed ABL Claim shall
        receive:

         

        i.        
        payment in full in cash of its allowed ABL Claim;

         

        ii.       
        the collateral securing its allowed ABL Claim;

         

        iii.      
        reinstatement of its allowed ABL Claim under the Exit ABL Facility; or

         

        iv.     
        such other treatment that renders its allowed ABL Claim unimpaired in accordance with section 1124 of the Bankruptcy
        Code.

         

	Term
    Loan Claims	Each
        holder of an allowed Term Loan Claim shall receive its pro rata share of:

         

        i.       
        $88.2 million of Last Out Term Loans, which shall include the terms set forth in the Exit Facility Term Sheet;
        and

         

        ii.      
        55.1% of the common shares of Reorganized Ascena (such shares, the “New Common Stock”) less
        the percentage of New Common Stock distributed as the Equity Premium (as defined below), subject to dilution on account
        of the Management Incentive Plan.

         

	General
    Unsecured Claims	i.       
        If holders of allowed General Unsecured Claims vote as a class to accept the Plan, each holder of
        an allowed General Unsecured Claim shall receive its pro rata share of cash in an aggregate amount equal to $500,000,
        as determined by the Debtors and the Required Consenting Stakeholders.

         

        ii.      
        If holders of allowed General Unsecured Claims vote as a class to reject the Plan, each holder of
        an allowed General Unsecured Claim shall receive treatment consistent with section 1129(a)(7) of the Bankruptcy Code,
        as determined by the Debtors and the Required Consenting Stakeholders.

         

	Intercompany
    Claims	Each
    allowed Intercompany Claim shall be reinstated, distributed, contributed, set off, settled, cancelled and released, or otherwise
    addressed at the option of the Reorganized Debtors.
	Intercompany
    Interests	Intercompany
    Interests shall receive no recovery or distribution and be reinstated solely to the extent necessary to maintain the Debtors’
    corporate structure.
	Interests
    in Ascena	Each
    holder of an allowed Interest in Ascena shall have such Interest cancelled, released, and extinguished without any distribution.
	CHAPTER
    11 PLAN RELEASES, EXCULPATION, AND INJUNCTION PROVISIONS
	Discharge
    of Claims and Termination of Interests	Pursuant
    to section 1141(d) of the Bankruptcy Code, and except as otherwise specifically provided in the Plan or in any contract, instrument,
    or other agreement or document created pursuant to the Plan, the distributions, rights, and treatment that are provided in
    the Plan shall be in complete satisfaction, discharge, and release, effective as of the Plan Effective Date, of Claims (including
    any Intercompany Claims resolved or compromised after the Plan Effective Date by the Reorganized Debtors), Interests, and
    Causes of Action against any Debtor of any nature whatsoever, including any interest accrued on Claims from and after the
    Petition Date, whether known or unknown, against, liabilities of, Liens on, obligations of, rights against, and Interests
    in, the Debtors or any of their assets or properties, regardless of whether any property shall have been distributed or retained
    pursuant to the Plan on account of such Claims and Interests, including demands, liabilities, and Causes of Action that arose
    before the Plan Effective Date, any liability (including withdrawal liability) to the extent such Claims or Causes of Action
    accrued before the Plan Effective Date, and all debts of the kind specified in sections 502(g), 502(h), or 502(i) of the Bankruptcy
    Code, in each case whether or not:  (1) a Proof of Claim based upon such debt or right is filed or deemed filed
    pursuant to section 501 of the Bankruptcy Code; (2) a Claim based upon such debt or right is Allowed pursuant to section
    502 of the Bankruptcy Code; or (3) the holder of such a Claim or Interest has accepted the Plan.  Any default
    or “event of default” by the Debtors or their Affiliates with respect to any Claim that existed immediately before
    or on account of the filing of the Chapter 11 Cases shall be deemed cured (and no longer continuing) as of the Plan Effective
    Date.  Unless expressly provided in the Plan, the Confirmation Order shall be a judicial determination of the discharge
    of all Claims and Interests subject to the Plan Effective Date occurring.

 

     - 6 -

     

    

 

	Releases
    by the Debtors	Effective
    as of the Plan Effective Date, pursuant to section 1123(b) of the Bankruptcy Code, for good and valuable consideration, the
    adequacy of which is hereby confirmed, on and after the Plan Effective Date, each Released Party is conclusively, absolutely,
    unconditionally, irrevocably, and forever released and discharged by each and all of the Debtors, the Reorganized Debtors,
    and their Estates, in each case on behalf of themselves and their respective successors, assigns, and representatives, and
    any and all other entities who may purport to assert any Cause of Action, directly or derivatively, by, through, for, or because
    of the foregoing entities, from any and all Causes of Action, including any derivative claims, asserted or assertable on behalf
    of any of the Debtors, whether known or unknown, foreseen or unforeseen, matured or unmatured, existing or hereafter arising,
    in law, equity, contract, tort, or otherwise, that the Debtors, the Reorganized Debtors, or their Estates would have been
    legally entitled to assert in their own right (whether individually or collectively) or on behalf of the holder of any Claim
    against, or Interest in, a Debtor or other Entity, based on or relating to, or in any manner arising from, in whole or in
    part, the Debtors (including the management, ownership, or operation thereof), the purchase, sale, or rescission of any security
    of the Debtors or the Reorganized Debtors, the subject matter of, or the transactions or events giving rise to, any Claim
    or Interest that is treated in the Plan, the business or contractual arrangements between any Debtor and any Released Party,
    the Debtors’ in- or out-of-court restructuring efforts, intercompany transactions, the ABL Credit Agreement, the Term
    Loan Credit Agreement, the Chapter 11 Cases, the Restructuring Support Agreement, the formulation, preparation, dissemination,
    negotiation, entry into, or filing of, as applicable, the Restructuring Support Agreement and related prepetition transactions,
    the Backstop Commitment Letter, the Disclosure Statement, the New Corporate Governance Documents, the Plan, the Exit Facilities,
    the DIP Financing Order, or any Restructuring Transaction, contract, instrument, release, or other agreement or document created
    or entered into in connection with the Restructuring Support Agreement, Disclosure Statement, the New Corporate Governance
    Documents, the Exit Facilities, or the Plan, the filing of the Chapter 11 Cases, the pursuit of Confirmation, the pursuit
    of Consummation, the administration and implementation of the Restructuring Transactions, including the issuance or distribution
    of Securities pursuant to the Plan, or the distribution of property under the Plan or any other related agreement, or upon
    any other act, omission, transaction, agreement, event, or other occurrence (in each case, related to any of the foregoing)
    taking place on or before the Plan Effective Date.

 

     - 7 -

     

    

 

	Releases
    by Holders of Claims and Interests 	Effective
    as of the Plan Effective Date, each Releasing Party, in each case on behalf of itself and its respective successors, assigns,
    and representatives, and any and all other entities who may purport to assert any Cause of Action, directly or derivatively,
    by, through, for, or because of the foregoing entities, is deemed to have released and discharged each Debtor, Reorganized
    Debtor, and Released Party from any and all Causes of Action, whether known or unknown, including any derivative claims, asserted
    or assertable on behalf of any of the Debtors, that such Entity would have been legally entitled to assert (whether individually
    or collectively), based on or relating to, or in any manner arising from, in whole or in part, the Debtors (including the
    management, ownership or operation thereof), the purchase, sale, or rescission of any security of the Debtors or the Reorganized
    Debtors, the subject matter of, or the transactions or events giving rise to, any Claim or Interest that is treated in the
    Plan, the business or contractual arrangements between any Debtor and any Released Party, the Debtors’ in- or out-of-court
    restructuring efforts, intercompany transactions, the ABL Credit Agreement, the Term Loan Credit Agreement, the Chapter 11
    Cases, the Restructuring Support Agreement, the formulation, preparation, dissemination, negotiation, entry into, or filing
    of, as applicable, the Restructuring Support Agreement and related prepetition transactions, the Backstop Commitment Letter,
    the Disclosure Statement, the New Corporate Governance Documents, the Plan, the Exit Facilities, the DIP Financing Order,
    or any Restructuring Transaction, contract, instrument, release, or other agreement or document created or entered into in
    connection with the Restructuring Support Agreement, the Disclosure Statement, the New Corporate Governance Documents, the
    Exit Facilities, the Plan (including, for the avoidance of doubt, providing any legal opinion requested by any Entity regarding
    any transaction, contract, instrument, document, or other agreement contemplated by the Plan or the reliance by any Released
    Party on the Plan or the Confirmation Order in lieu of such legal opinion), the filing of the Chapter 11 Cases, the pursuit
    of Confirmation, the pursuit of Consummation, the administration and implementation of the Plan, including the issuance or
    distribution of Securities pursuant to the Plan, or the distribution of property under the Plan or any other related agreement,
    or upon any other act, omission, transaction, agreement, event, or other occurrence (in each case, related to any of the foregoing)
    taking place on or before the Plan Effective Date.
	Exculpation
    	Notwithstanding
    anything contained in the Plan to the contrary, no Exculpated Party shall have or incur, and each Exculpated Party is hereby
    released and exculpated from any Cause of Action or any claim related to any act or omission in connection with, relating
    to, or arising out of, the Chapter 11 Cases, the formulation, preparation, dissemination, negotiation, filing, or termination
    of the Restructuring Support Agreement and related prepetition transactions, the Disclosure Statement, the Plan, the Exit
    Facilities, the Backstop Commitment Letter, the DIP Financing Order, or any Restructuring Document, contract, instrument,
    release or other agreement or document (including providing any legal opinion requested by any Entity regarding any transaction,
    contract, instrument, document, or other agreement contemplated by the Plan or the reliance by any Exculpated Party on the
    Plan or the Confirmation Order in lieu of such legal opinion) created or entered into in connection with the Disclosure Statement
    or the Plan, the filing of the Chapter 11 Cases, the pursuit of Confirmation, the pursuit of Consummation, the administration
    and implementation of the Plan, including the issuance of Securities pursuant to the Plan, or the distribution of property
    under the Plan or any other related agreement, except for claims related to any act or omission that is determined in a final
    order to have constituted actual fraud, willful misconduct, or gross negligence, but in all respects such Entities shall be
    entitled to reasonably rely upon the advice of counsel with respect to their duties and responsibilities pursuant to the Plan.  The
    Exculpated Parties have, and upon consummation of the Plan shall be deemed to have, participated in good faith and in compliance
    with the applicable laws with regard to the solicitation of, and distribution of, consideration pursuant to the Plan and,
    therefore, are not, and on account of such distributions shall not be, liable at any time for the violation of any applicable
    law, rule, or regulation governing the solicitation of acceptances or rejections of the Plan or such distributions made pursuant
    to the Plan.  

 

     - 8 -

     

    

 

	Injunction	Except
    with respect to the obligations arising under the Plan, the DIP Financing Order, or the Confirmation Order, and except as
    otherwise expressly provided in the Plan, the DIP Financing Order, or the Confirmation Order, all Entities that held, hold,
    or may hold claims or interests or Causes of Action that have been released, discharged, or exculpated pursuant to the Plan,
    are permanently enjoined, from and after the Plan Effective Date, from taking any of the following actions against, as applicable,
    the Reorganized Debtors or the other Released Parties:  (i) commencing or continuing in any manner any action
    or other proceeding of any kind on account of or in connection with or with respect to any such claims or interests or Causes
    of Action; (ii) enforcing, attaching, collecting, or recovering by any manner or means any judgment, award, decree, or
    order against such Entities on account of or in connection with or with respect to any such claims or interests or Causes
    of Action; (iii) creating, perfecting, or enforcing any Lien or encumbrance of any kind against such Entities or the
    property of such Entities on account of or in connection with or with respect to any such claims or interests or Causes of
    Action; (iv) asserting any right of setoff, subrogation, or recoupment of any kind against any obligation due from such
    Entities or against the property of such Entities on account of or in connection with or with respect to any such claims or
    interests or Causes of Action unless such Entity has timely asserted such setoff right in a document filed with the Bankruptcy
    Court explicitly preserving such setoff, and notwithstanding an indication of a claim or interest or otherwise that such Entity
    asserts, has, or intends to preserve any right of setoff pursuant to applicable law or otherwise; and (v) commencing
    or continuing in any manner any action or other proceeding of any kind on account of or in connection with or with respect
    to any such claims or interests or Causes of Action released or settled or subject to exculpation pursuant to the Plan.
	OTHER
    TERMS OF THE RESTRUCTURING TRANSACTIONS
	Equity
    Allocation	On
    the Plan Effective Date, each Consenting Stakeholder shall receive (a) its pro rata share (the numerator being such party’s
    holdings of First Out Exit Term Loans (including through any of its Related Parties) and the denominator being the aggregate
    outstanding amount of all First Out Exit Term Loans) of 44.9% of the New Common Stock, which will be subject to dilution from
    the Management Incentive Plan, and (b) its pro rata share (based on such party’s Backstop Percentage (including through
    any of its Related Parties)) of an amount of New Common Stock equal to $7.5 million, calculated assuming a total equity value
    of Reorganized Ascena to be agreed by the Company Parties and the Required Consenting Stakeholders (such pro rata share, the
    “Equity Premium”), which will be subject to dilution from the Management Incentive Plan.3

 

 

		3	For tax purposes, unless otherwise required by a change
in applicable tax law or contrary determination (as defined in Section 1313(a) of the Internal Revenue Code of 1986, as amended),
(i) the Company Parties and the Consenting Stakeholders as of the Petition Date will treat the Equity Premium as acquired by such
Consenting Stakeholders at the Plan Effective Date in exchange for participation in the Restructuring Transactions and for tax
purposes more specifically as a put premium and (ii) not take any tax position inconsistent with the tax treatment described in
clause (i).

 

     - 9 -

     

    

 

	Critical
    Vendors	The
    Debtors will seek the Bankruptcy Court’s approval to use up to $50 million in the aggregate to pay the prepetition claims
    of certain foreign and critical vendors, subject to the consent and consultation rights in the Restructuring Support Agreement.
	LuxCo
    Entities	On
    the Execution Date, all of the previously unencumbered equity held by the Loan Parties (as defined in the Term Loan Credit
    Agreement) in the LuxCo Entities will be pledged as Collateral (as defined in the Term Loan Credit Agreement).
	New
    Board	The
        initial board of directors, members, or managers, as applicable (each, a “Director”), of Reorganized
        Ascena (the “New Board”) will consist of 7 Directors, including, subject to the terms of the New Corporate
        Governance Documents:

         

i.
      Carrie W. Teffner;

ii.
      the CEO of Reorganized Ascena;

iii.      1 Director determined by Bain Capital Credit, LP (“Bain”);

iv.
     1 Director determined by Monarch Alternative Capital LP (“Monarch”); 

v.       1 Director determined collectively by Bain, Eaton Vance Management, Lion Point Capital, LP, and Monarch; and

vi.
     2 Directors determined by the Backstop Commitment Parties.

 

	Management
    Incentive Plan	The
    Reorganized Debtors will reserve a pool of up to 10% of the New Common Stock for a post-emergence management incentive plan
    (the “Management Incentive Plan”) for management employees of the Reorganized Debtors, which will contain
    terms and conditions (including, without limitation, with respect to participants, form, allocation, structure, duration and
    timing and extent of issuance and vesting) as determined at the discretion of the New Board after the Plan Effective Date.  
	Tax
    Structure	The
    Parties will work together in good faith to structure and implement the Restructuring Transactions in a tax efficient manner;
    provided that such tax structure shall be reasonably acceptable to the Required Consenting Stakeholders and the Company
    Parties.
	Executory
    Contracts and Unexpired Leases	The
    Plan will provide that the executory contracts and unexpired leases that are not rejected as of the Plan
    Effective Date (either pursuant to the Plan or a separate motion) will be deemed assumed pursuant to section 365 of
    the Bankruptcy Code.

 

     - 10 -

     

    

 

	Employment
    Obligations	Pursuant
    to the Restructuring Support Agreement and this Restructuring Term Sheet, the Consenting Stakeholders consent to the continuation
    and assumption of all of the Debtors’ wages, compensation, and employee benefits programs according to existing terms
    and practices, including executive and Insider compensation and benefits programs, Insider and non-Insider severance programs,
    Insider and non-Insider incentive programs, and Insider and non-Insider retention programs, in each case as are in effect
    as of the Agreement Effective Date and have been disclosed to counsel for the Required Consenting Stakeholders, including
    any modifications agreed between the Debtors and the Required Consenting Stakeholders prior to the effectiveness of the Restructuring
    Support Agreement (collectively, the “Employee Benefits Programs”), and any motions in the Bankruptcy Court
    for approval thereof; provided, however, that Employee Benefits Programs shall not include (x) any compensation, post-employment,
    separation or retirement arrangement with any former Insider (as of the Agreement Effective Date) or (y) any non-qualified
    deferred compensation plan or supplemental retirement plan, solely to the extent and such plan would benefit any former Insider
    (as of the Agreement Effective Date), in each case without the consent of the Required Consenting Stakeholders following the
    Petition Date.  On the Plan Effective Date, pursuant to the Plan, the
    Debtors shall assume all obligations related to all Employee Benefits Programs (as agreed to be modified between the Debtors
    and the Required Consenting Stakeholders prior to the effectiveness of the Restructuring Support Agreement, as applicable)
    and assume all employment agreements or letters, indemnification agreements, or other agreements entered into with current
    and former employees (as agreed to be modified between the Debtors and the Required Consenting Stakeholders prior to the effectiveness
    of the Restructuring Support Agreement, as applicable) unless such employees agree to enter into new agreements on terms and
    conditions acceptable to the Reorganized Debtors, the Required Consenting Stakeholders and such employee.  Notwithstanding
    the foregoing, no (x) compensation, post-employment, separation or retirement arrangement with any former Insider (as of the
    Agreement Effective Date) or (y) non-qualified deferred compensation plan or supplemental retirement plan, solely to the extent
    any such plan would benefit any former Insider (as of the Plan Effective Date), will be assumed on the Plan Effective Date,
    in each case without the prior consent of the Required Consenting Stakeholders.
	Indemnification
    Obligations	Consistent
    with applicable law, all indemnification provisions in place as of the Plan Effective
    Date (whether in the by-laws, certificates of incorporation or formation, limited liability company agreements, other
    organizational documents, board resolutions, indemnification agreements, employment contracts, or otherwise) for current and
    former directors, officers, managers, employees, attorneys, accountants, investment bankers, and other professionals of the
    Debtors, as applicable, shall be reinstated and remain intact, irrevocable, and shall survive the effectiveness of the Restructuring
    Transactions on terms no less favorable to such current and former directors, officers, managers, employees, attorneys, accountants,
    investment bankers, and other professionals of the Debtors than the indemnification provisions in place prior to the Plan
    Effective Date.  
	Subordination	The
    classification and treatment of Claims under the Plan shall conform to the respective contractual, legal, and equitable subordination
    rights of such Claims, and any such rights shall be settled, compromised, and released pursuant to the Plan.
	Restructuring
    Transactions	The
    Confirmation Order shall be deemed to authorize, among other things, all actions as may be necessary or appropriate to effectuate
    any transaction described in, approved by, contemplated by, or necessary to consummate the Plan and the Restructuring Transactions
    therein.  On the Plan Effective Date, the Debtors, as applicable, shall
    issue all securities, notes, instruments, certificates, and other documents required to be issued pursuant to the Restructuring
    Transactions.
	Cancellation
    of Notes, Instruments, Certificates, and Other Documents 	On
    the Plan Effective Date, except to the extent otherwise provided in this Restructuring
    Term Sheet or the Plan, all notes, instruments, certificates, and other documents evidencing Claims or Interests, including
    credit agreements and indentures, shall be canceled, and the Debtors’ obligations thereunder or in any way related thereto
    shall be deemed satisfied in full and discharged.
	Retention
    of Jurisdiction	The
    Plan will provide that the Bankruptcy Court shall retain jurisdiction for usual and customary matters.

 

     - 11 -

     

    

 

	Retained
    Causes of Action	The
    Reorganized Debtors, as applicable, shall retain all rights to commence and pursue any Causes of Action, other than any Causes
    of Action that the Debtors have released pursuant to the release and exculpation provisions of the Plan.
	Exemption
    from SEC Registration	The
    issuance of all securities under the Plan will be exempt from SEC registration under applicable law.  On the Plan
    Effective Date, Reorganized Ascena will cease to be a public reporting company.
	Conditions
    Precedent to the Plan Effective Date	The
        following, among others as agreed by the Debtors and the Required Consenting Stakeholders, shall be conditions to the
        Plan Effective Date:

         

        1.     
        The Bankruptcy Court shall have entered the Confirmation Order, which shall:

         

        a.       
        be in form and substance consistent with the Restructuring Support Agreement;

         

        b.       
        authorize the Debtors to take all actions necessary to enter into, implement, and consummate the contracts, instruments,
        releases, leases, indentures, and other agreements or documents created in connection with the Plan;

         

        c.       
        decree that the provisions in the Confirmation Order and the Plan are nonseverable and mutually dependent;

         

        d.      
        authorize the Debtors, as applicable/necessary, to: (a) implement the Restructuring Transactions; (b) issue
        the New Common Stock pursuant to the exemption from registration under the Securities Act provided by section 1145 of
        the Bankruptcy Code or other exemption from such registration or pursuant to one or more registration statements; (c) make
        all distributions and issuances as required under the Plan, including cash and the New Common Stock; and (d) enter
        into any agreements, transactions, and sales of property as set forth in the Plan Supplement, including the Exit Facilities;

         

        e.        
        authorize the implementation of the Plan in accordance with its terms; and

         

        f.        
        provide that, pursuant to section 1146 of the Bankruptcy Code, the assignment or surrender of any lease or sublease,
        and the delivery of any deed or other instrument or transfer order, in furtherance of, or in connection with the Plan,
        including any deeds, bills of sale, or assignments executed in connection with any disposition or transfer of assets contemplated
        under the Plan, shall not be subject to any stamp, real estate transfer, mortgage recording, or other similar tax;

         

        2.     
        the final version of the Plan Supplement and all of the schedules, documents, and exhibits contained therein shall
        have been filed in a manner consistent in all material respects with the Restructuring Support Agreement and the Plan;

         

        3.     
        the Restructuring Support Agreement shall remain in full force and effect and shall not be terminated;

         

        4.     
        the documentation related to the Exit Facilities shall have been duly executed and delivered by all of the Entities
        that are parties thereto and all conditions precedent (other than any conditions related to the occurrence of the Plan
        Effective Date) to the effectiveness of the Exit Facilities shall have been satisfied or duly waived in writing in accordance
        with the terms of each of the Exit Facilities and the closing of the Exit Facilities shall have occurred;

         

        5.     
        the Debtors shall have obtained all authorizations, consents, regulatory approvals, rulings, or documents that
        are necessary to implement and effectuate the Plan and each of the other transactions contemplated by the Restructuring;

         

        6.     
        all actions, documents, certificates, and agreements necessary to implement the Plan (including any documents contained
        in the Plan Supplement) shall have been effected or executed and delivered to the required parties and, to the extent
        required, filed with the applicable governmental units, in accordance with applicable laws;

         

        7.     
        all professional fees and expenses of retained professionals that require the Bankruptcy Court’s approval
        shall have been paid in full or amounts sufficient to pay such fees and expenses after the Effective Date shall have been
        placed in a professional fee escrow account pending the Bankruptcy Court’s approval of such fees and expenses;

         

        8.     
        all professional fees and expenses and of the advisors to the Consenting Stakeholders shall have been paid in full
        in accordance with the Restructuring Support Agreement; and

         

        9.     
        the Debtors shall have implemented the Restructuring Transactions in a manner consistent with the Restructuring
        Support Agreement and this Plan.

         

	Waiver
    of Conditions Precedent to the Plan Effective Date	The
    Debtors, with the prior consent of the Required Consenting Stakeholders, may waive any one or more of the Conditions Precedent
    to the Plan Effective Date.

 

     - 12 -

     

    

 

Execution Version

 

ANNEX I

 

DEFINITIONS

 

	Term	Definition
	ABL Commitment Letter	The letter committing certain ABL Lenders to provide the DIP ABL Facility and Exit ABL Facility on terms acceptable to the Required Consenting Stakeholders.
	ABL Facility	The credit facility established by the ABL Credit Agreement.
	ABL Lenders	Each of the lenders from time to time party to the ABL Credit Agreement.
	Administrative Claim	A Claim for costs and expenses of administration of the Chapter 11 Cases pursuant to sections 503(b), 507(a)(2), 507(b), or 1114(e)(2) of the Bankruptcy Code, including:  (a) the actual and necessary costs and expenses incurred on or after the Petition Date until and including the Plan Effective Date of preserving the Estates and operating the Debtors’ businesses; and (b) allowed Professional Fee Claims.
	Causes of Action	Any claims, interests, damages, remedies, causes of action, demands, rights, actions, suits, obligations, liabilities, accounts, defenses, offsets, powers, privileges, licenses, Liens, indemnities, guaranties, and franchises of any kind or character whatsoever, whether known or unknown, foreseen or unforeseen, existing or hereinafter arising, contingent or non-contingent, liquidated or unliquidated, secured or unsecured, assertable, directly or derivatively, matured or unmatured, suspected or unsuspected, in contract, tort, law, equity, or otherwise.  Causes of Action also include:  (a) all rights of setoff, counterclaim, or recoupment and claims under contracts or for breaches of duties imposed by law; (b) the right to object to or otherwise contest Claims or Interests; (c) claims pursuant to sections 362, 510, 542, 543, 544 through 550, or 553 of the Bankruptcy Code; (d) such claims and defenses as fraud, mistake, duress, and usury, and any other defenses set forth in section 558 of the Bankruptcy Code; and (e) any state or foreign law fraudulent transfer or similar claim
	DIP ABL Agreement	The debtor-in-possession senior secured asset-based revolving credit agreement establishing the DIP ABL Facility on terms acceptable to the Required Consenting Stakeholders.
	DIP ABL Facility Claim	Any Claim derived from, based upon, or secured pursuant to the DIP ABL Agreement, including claims for all principal amounts outstanding, interest, fees, expenses, costs, and other charges arising thereunder or related thereto, in each case, with respect to the DIP ABL Facility.
	DIP Term Agreement	The Superpriority Senior Secured Debtor-In-Possession Credit Agreement in the form of the Form DIP Credit Agreement and otherwise acceptable to the Majority Backstop Commitment Parties.
	DIP Term Facility Claim	Any Claim derived from, based upon, or secured pursuant to the DIP Term Agreement, including claims for all principal amounts outstanding, interest, fees, expenses, costs, and other charges arising thereunder or related thereto, in each case, with respect to the DIP Term Facility.
	DIP Term Lenders	The lenders under the DIP Term Agreement.

 

     

     

    

 

	Term	Definition
	Estate	As to each Debtor, the estate created for the Debtor in its Chapter 11 Case pursuant to sections 301 and 541 upon the commencement of the applicable Debtor’s Chapter 11 Case.
	Exculpated Parties	Collectively, and in each case in its capacity as such:  (a) each of the Debtors; (b) each of the Reorganized Debtors; (c) each of the Consenting Stakeholders; (d) any statutory committees appointed in the Chapter 11 Cases and each of their respective members; (e) each current and former Affiliate of each Entity in clause (a) through the following clause (f); and (f) each Related Party of each Entity in clause (a) through this clause (e).
	Exit ABL Facility	The senior secured asset-based revolving credit facility in an aggregate amount up to $400 million and otherwise on the terms set forth in the ABL Commitment Letter and pursuant to definitive documentation acceptable to the Required Consenting Stakeholders.
	Exit Facilities	Collectively, the Exit ABL Facility, the First Out Term Loan Facility, and the Last Out Term Loan Facility.
	General Unsecured Claim	Any Claim that is not secured and is not (a) an Administrative Claim, (b) an Other Secured Claim, (c) a Priority Tax Claim, (d) an Other Priority Claim, (e) an ABL Claim, (f) a Term Loan Claim, or (g) an Intercompany Claim.
	Intercompany Claim	Any Claim held by a Debtor or a Debtor’s affiliate against a Debtor or a Debtor’s affiliate.
	Intercompany Interests	Other than an Interest in Ascena Topco, an Interest in one Debtor held by another Debtor or a Debtor’s affiliate.
	Lien	Has the meaning set forth in section 101(37) of the Bankruptcy Code.
	Other Priority Claim	Any Claim entitled to priority in right of payment under section 507(a) of the Bankruptcy Code, other than:  (a) an Administrative Claim; or (b) a Priority Tax Claim, to the extent such Claim has not already been paid during the Chapter 11 Cases.
	Other Secured Claim	Any secured Claim, other than (a) an ABL Claim, (b) a DIP ABL Facility Claim, (c) a Term Loan Claim, or (d) a DIP Term Facility Claim.
	Priority Tax Claim	Any Claim of a Governmental Unit (as set forth in section 101(27) of the Bankruptcy Code) of the kind specified in section 507(a)(8) of the Bankruptcy Code.
	Professional	An Entity retained in the Chapter 11 Cases pursuant to a final order in accordance with sections 327, 363, and 1103 of the Bankruptcy Code and to be compensated for services rendered prior to or on the Plan Effective Date pursuant to sections 327, 328, 329, 330, 331, or 363 of the Bankruptcy Code.
	Professional Fee Claims	All Claims for accrued, contingent, and/or unpaid fees and expenses (including transaction and success fees) incurred by a Professional in the Chapter 11 Cases on or after the Petition Date and through and including the date on which the Confirmation Order is entered that the Bankruptcy Court has not denied by final order.  To the extent that the Bankruptcy Court or any higher court of competent jurisdiction denies or reduces by a final order any amount of a Professional’s fees or expenses, then those reduced or denied amounts shall no longer constitute Professional Fee Claims.

 

    - 2 -

     

    

 

	Term	Definition
	Proof of Claim	A proof of Claim filed in the Chapter 11 Cases.
	Related Party	With respect to any person or Entity, each of, and in each case in its capacity as such, current and former directors, managers, officers, investment committee members, special or other committee members, equity holders (regardless of whether such interests are held directly or indirectly), affiliated investment funds or investment vehicles, managed accounts or funds, predecessors, participants, successors, assigns, subsidiaries, Affiliates, partners, limited partners, general partners, principals, members, management companies, fund advisors or managers, employees, agents, trustees, advisory board members, financial advisors, attorneys (including any other attorneys or professionals retained by any current or former director or manager in his or her capacity as director or manager of an Entity), accountants, investment bankers, consultants, representatives, and other professionals and advisors of such person or Entity, and any such Person’s or Entity’s respective heirs, executors, estates, and nominees.
	Released Party	Collectively, each of the following in their capacity as such:  (a) each of the Debtors; (b) the Reorganized Debtors; (c) each of the Consenting Stakeholders; (d) the ABL Agent; (e) the Term Loan Agent; (f) each of the lenders and administrative agents under the Exit Facilities; (g) the Backstop Parties; (h) the DIP ABL Agent; (i) the DIP ABL Lenders; (j) the DIP Term Agent; (k) the DIP Term Lenders;  (l) each current and former Affiliate of each Entity in the foregoing clause (a) through the following clause (m); and (m) each Related Party of each Entity in the foregoing clause (a) through this clause (m).
	Releasing Party	Collectively, and in each case in its capacity as such: (a) each of the Debtors; (b) the Reorganized Debtors; (c) each of the Consenting Stakeholders; (d) the ABL Agent; (e) the Term Loan Agent; (f) each of the lenders and administrative agents under the Exit Facilities; (g) the Backstop Parties; (h) the DIP ABL Agent; (i) the DIP ABL Lenders; (j) the DIP Term Agent; (k) the DIP Term Lenders; (l) all holders of Claims; (m) all holders of Interests; (n) each current and former Affiliate of each Entity in foregoing clause (a) through the following clause (o); and (o) each Related Party of each Entity in the foregoing clause (a) through this clause (o); provided that, in each case, an Entity shall not be a Releasing Party if it: (x) elects to opt out of the releases contained in the Plan; or (y) timely objects to the releases contained in the Plan and such objection is not resolved before Confirmation; provided further that any such Entity shall be identified by name as a non-Releasing Party in the Confirmation Order.
	Reorganized Debtors	Reorganized Ascena and each of the other Debtors, or any successor thereto, as reorganized pursuant to and under the Plan.
	Term Lenders	Each of the lenders from time to time party to the Term Loan Credit Agreement.

 

    - 3 -

     

    

 

EXHIBIT C

 

Backstop Commitment Letter

 

[Attached]

 

     

     

    

 

EXECUTION VERSION

 

July 23, 2020

 

PERSONAL AND CONFIDENTIAL

Ascena Retail Group, Inc.

933 MacArthur Boulevard

Mahwah, New Jersey 07430

Attention: Dan Lamadrid

 

Superpriority Senior Secured Debtor-In-Possession
Term Loan Credit Facility

Backstop Commitment Letter

 

Ladies and Gentlemen:

 

Ascena Retail Group,
Inc. (“Ascena TopCo”, “you” or “your”) has (i) advised the parties listed
on the signature pages hereto as Backstop Commitment Parties (each, a “Backstop Commitment Party” and, collectively,
the “Backstop Commitment Parties”, “we”, “us” or “our”),
that Ascena Topco and certain of its subsidiaries (the “Subsidiary Debtors” and, collectively with Ascena Topco,
the “Debtors”), are considering filing voluntary petitions for relief under Chapter 11 of Title 11 of the United
States Code, 11 U.S.C. §§ 101 et seq. (as amended, the “Bankruptcy Code”), and,
in connection with the foregoing, (ii) requested that the Backstop Commitment Parties agree to commit to provide a superpriority
senior secured debtor-in-possession term loan credit facility for Ascena Topco under Sections 364(c) and 364(d) of the Bankruptcy
Code (the “DIP Facility”) consisting of (x) new money term loans (the “New Money DIP Loans”)
in an aggregate principal amount of $150 million and (y) term loans (the “Roll-Up DIP Loans” and, together
with the New Money DIP Loans, the “DIP Loans”) resulting from the conversion of the Prepetition Term Loans
(as defined below) of the Prepetition Term Lenders (as defined below) that provide (themselves or through their affiliates) New
Money DIP Loans in an aggregate amount equal to $161.8 million on the Effective Date, or as otherwise set forth in the Form
DIP Credit Agreement. The DIP Facility shall convert on a dollar-for-dollar basis into an exit facility (the “Exit Conversion”,
such converted loans, the “Exit Term Loans”, and the financing provided by the Exit Term Loans, the “Exit
Facility”) substantially on the terms set forth in this letter (including all exhibits, annexes, and schedules hereto,
the “Backstop Commitment Letter”), as well as the form Senior Secured Super-Priority Debtor-In-Possession Term
Credit Agreement attached hereto as Exhibit A (the “Form DIP Credit Agreement”) and the Exit
Facility Term Sheet attached hereto as Exhibit B (the “Exit Facility Term Sheet”), which terms
will be memorialized in a credit agreement that will govern the Exit Facility (the “Exit Facility Credit Agreement”),
subject solely to the conditions set forth in the sections of Article IV of the Form DIP Credit Agreement and the “Conditions
to Borrower” set forth in the Exit Facility Term Sheet, in each case, that are applicable to the relevant borrowing. Unless
otherwise specified herein, all references to “$” shall refer to U.S. dollars. Capitalized terms used herein without
definition shall have the meaning assigned thereto in the Form DIP Credit Agreement or the Exit Facility Term Sheet, as applicable.

 

		1.	Backstop Commitment.

 

To provide
assurance that the DIP Facility and the Exit Facility shall be available on the terms and conditions set forth herein, in the
Form DIP Credit Agreement and the Exit Facility Term Sheet, as applicable, each Backstop Commitment Party is pleased to
advise Ascena Topco of its several and not joint commitment (the “Backstop Commitment”) to provide, itself
or through one or more funds managed by such Backstop Commitment Party, the amount of the DIP Loans and Exit Term Loans, each
as set forth on Schedule 1 hereto (as updated from time to time prior to the date that is two business
days prior to the Effective Date) on the terms set forth in the Backstop Commitment Letter, subject solely to the conditions
set forth in the sections of Article IV of the Form DIP Credit Agreement and the “Conditions to Borrowing” set
forth in the Exit Facility Term Sheet that are applicable to the relevant borrowing. Each Backstop Commitment Party may, at
its option, arrange for the Form DIP Credit Agreement or the Exit Facility Credit Agreement, if applicable, to be executed by
one or more financial institutions selected by the applicable Backstop Commitment Party and reasonably acceptable to Ascena
Topco (the “Fronting Lender(s)”), to act as an initial lender and to fund some or all of the Backstop
Commitment Party’s Backstop Commitment, in which case the applicable Backstop Commitment Party will acquire its shares
of the DIP Facility and/or Exit Facility, as applicable, by assignment from the Fronting Lender(s) in accordance with the
assignment provisions of the Form DIP Credit Agreement and the Exit Facility Credit Agreement, as applicable.

 

    1

     

    

 

It is understood and
agreed that the aggregate commitments under this Backstop Commitment Letter in respect of New Money DIP Loans (and the automatic
conversion thereof to Exit Term Loans on the Conversion Date) are $150 million in total, subject to the Initial Allocation, as
set forth in Section 2 hereof and each Backstop Commitment Party hereby agrees and commits to such automatic conversion of the
New Money DIP Loans to Exit Term Loans on the Conversion Date.

 

		2.	Initial Allocation.

 

Each Lender (as defined
in the Prepetition Term Loan Credit Agreement, a “Prepetition Term Lender”) as of the Syndication End Date (as
defined below) (including the Backstop Commitment Parties) shall have the right to participate (the “Opportunity”)
in 50.0% of the DIP Facility and the Exit Facility, in each case based on its Pro Rata Share (as defined below). The Opportunity
will be conducted on the terms and conditions set forth in syndication procedures and related documentation, which procedures and
documentation shall be reasonably acceptable to the Debtors and the Backstop Commitment Parties (the “Syndication Procedures”);
provided that, the Backstop Commitment Parties shall use commercially reasonable efforts to cause the Syndication Procedures to
be distributed by no later than 10:00 am New York Time on the fifth Business Day following the Petition Date (or such later date
as agreed by you and the Majority Backstop Commitment Parties (as defined below)). Pursuant to the Syndication Procedures, each
Prepetition Term Lender electing to participate in the Opportunity shall, among other things (i) provide written notification of
such election to the Ad Hoc Committee Advisors by no later than the date that is 10 Business Days after the Syndication Procedures
are distributed to the Prepetition Term Lenders (the “Syndication End Date”) (or such later time as reasonably
agreed by the Majority Backstop Commitment Parties and you) and (ii) execute a joinder to the Restructuring Support Agreement,
dated as of the date hereof (the “Restructuring Support Agreement”), by and among Ascena Topco and certain of
its subsidiaries and certain Prepetition Term Lenders prior to the Syndication End Date (or such later time as reasonably agreed
by the Majority Backstop Commitment Parties and you) (the “Initial Allocation”); provided, that, any Backstop
Commitment Party that is a Prepetition Term Lender shall (unless it elects otherwise) be deemed to have provided such notice of
election to participate in the DIP Facility and the Exit Facility in respect of such holdings upon executing this Backstop Commitment
Letter and the Restructuring Support Agreement. Each Prepetition Term Lender that elects to participate in the DIP Facility shall
be obligated to participate in its ratable portion of the Exit Term Loans and the commitments under the Exit Facility will be “stapled
to” the DIP Facility and traded in equal percentage.

 

“Pro Rata
Share” means with respect to each Prepetition Term Lender (x) the aggregate principal amount of Loans (as defined in
the Prepetition Term Loan Credit Agreement, the “Prepetition Term Loans”) held by such Prepetition Term Lender,
as set forth in the register for the Prepetition Term Loan Credit Agreement on the Syndication End Date divided by (y) the
aggregate principal amount of Prepetition Term Loans held by all Prepetition Term Lenders outstanding under the Prepetition Term
Loan Credit Agreement at such time.

 

    2

     

    

 

“Majority
Backstop Commitment Parties” means, at any time, Backstop Commitment Parties having Backstop Commitments outstanding
that, taken together, represent at least 50.01% of the sum of all Backstop Commitments outstanding at such time.

 

Each Backstop Commitment
Party shall have the right to assign its Commitments under the DIP Facility and the Exit Facility to participating Lenders in accordance
with the Initial Allocation; provided that, notwithstanding the Initial Allocation, (i) no Backstop Commitment Party shall be relieved,
released or novated from its obligations hereunder (including its obligation to fund the DIP Facility on the Effective Date, subject
to the satisfaction (or waiver) of the conditions set forth in Article IV of the Form DIP Credit Agreement and its obligation to
convert into the Exit Facility on the Conversion Date, subject to the satisfaction (or waiver) of the conditions set forth in the
Exit Facility Term Sheet) in connection with the Initial Allocation, including its Backstop Commitments, until after the Initial
Allocation Date has occurred, (ii) no allocation shall become effective as between you and such Backstop Commitment Party with
respect to all or any portion of such Backstop Commitment Party’s Backstop Commitments in respect of the DIP Facility and
the Exit Facility until after the occurrence of the Initial Allocation Date, and (iii) unless you otherwise agree in writing, each
Backstop Commitment Party shall retain exclusive control over all rights and obligations with respect to its Backstop Commitments
in respect of the DIP Facility and the Exit Facility, including all rights with respect to consents, modifications, supplements,
waivers and amendments, until the Initial Allocation Date has occurred. Any unsubscribed portion of the Opportunity as of the Syndication
End Date shall be automatically allocated to, and funded by (if applicable), the Backstop Commitment Parties based on their respective
percentages set forth on Schedule 2 hereto.

 

Each of the parties
hereto agrees to use its respective commercially reasonable efforts to assist the Administrative Agent in connection with the Initial
Allocation. The Backstop Commitment Parties agree that, following the Initial Allocation, Ascena Topco and its subsidiaries and
the Administrative Agent may conclusively rely on the schedule of “Post-Initial Allocation Term Loan Commitments” provided
to Ascena Topco by the financial advisor for the Backstop Commitment Parties, Greenhill & Co., LLC, including the Lenders listed
therein and their respective Commitments. None of Ascena Topco nor any of its affiliates nor any of their respective advisors shall
be liable with respect to such schedule.

 

You acknowledge
and agree that nothing in this Backstop Commitment Letter or the nature of our services or in any prior relationship will be
deemed to create an advisory, fiduciary or agency relationship between any Backstop Commitment Party, the Administrative
Agent or its affiliates, on the one hand, and you, your equity holders or your affiliates, on the other hand, and you waive,
to the fullest extent permitted by law, any claims you may have against any Backstop Commitment Party, the Administrative
Agent or its affiliates for breach of fiduciary duty or alleged breach of fiduciary duty in connection with this Backstop
Commitment Letter or the transactions contemplated hereby, and agree that no Backstop Commitment Party, the Administrative
Agent or affiliates of any of the foregoing will have any liability (whether direct or indirect) to you in respect of such a
fiduciary duty claim or to any person asserting a fiduciary duty claim on your behalf, including your equity holders,
employees or creditors. You acknowledge that the transactions contemplated hereby (including the exercise of rights and
remedies hereunder) are arms’-length commercial transactions and that we and the Administrative Agent are acting as
principal and in our own respective best interests. You are relying on your own experts and advisors to determine whether the
transactions contemplated hereby are in your best interests and are capable of evaluating and understanding, and you
understand and accept, the terms, risks and conditions of the transactions contemplated hereby. In addition, you acknowledge
that we and the Administrative Agent may employ the services of our respective affiliates in providing certain services
hereunder and may exchange with such affiliates information concerning Ascena Topco and other companies that may be the
subject of the transactions contemplated hereby and such affiliates will be entitled to the benefits afforded to us and the
Agents hereunder; provided, that any such affiliates receiving information concerning Ascena Topco and other companies in
accordance with this paragraph shall be subject to the same confidentiality obligations provided for in this Backstop
Commitment Letter (with each Backstop Commitment Party responsible for its affiliates’ compliance with this
paragraph).

 

    3

     

    

 

		3.	Information.

 

You hereby represent
and warrant that (a) all written information concerning you and your subsidiaries and your and their respective business (other
than financial projections, estimates, forecasts and budgets and other forward-looking information (collectively, the “Projections”)
and information of a general economic or industry specific nature) (the “Information”) that has been or will
be made available to us or any of our respective affiliates by or on behalf of you is or will be, when furnished and to the best
of your knowledge, complete and correct in all material respects, when taken as a whole, and does not or will not, when furnished,
contain any untrue statement of a material fact or omit to state a material fact necessary in order to make the statements contained
therein not materially misleading in light of the circumstances under which such statements are made (after giving effect to the
updates provided for in the penultimate sentence of this Section 3) and (b) the Projections that have been or will be made available
to us or any of our affiliates by or on behalf of you or any of your representatives have been or will be prepared in good faith
based upon assumptions that are believed by the preparer thereof to be reasonable at the time made and at the time the related
Projections are made available to us or any of our affiliates (it being acknowledged that (i) such Projections are merely a prediction
as to future events and are not to be viewed as facts, (ii) such Projections are subject to significant uncertainties and contingencies,
many of which are beyond your control, (iii) the actual results during the period or periods covered by any such Projections may
differ significantly from the projected results, and (iv) no guarantee or assurance can be given that the projected results will
be realized). In particular, where Projections expressly or implicitly take into account the current market volatility and widespread
impact of the COVID-19 outbreak, the extent of the impact of these developments on the Debtors’ and their subsidiaries’
operational and financial performance will depend on future developments, including the duration and spread of the outbreak and
related governmental advisories and restrictions, and the impact of the COVID-19 outbreak on overall demand for the Debtors’
and their subsidiaries’ products and services, all of which are outside of the control of the Debtors or their subsidiaries,
highly uncertain and cannot be predicted. You agree that if, at any time prior to the entry of the Order approving the DIP Facility,
any of the representations, warranties and covenants in the preceding sentence would be incorrect in any material respect if the
Information and Projections were being furnished, and such representations, warranties and covenants were being made, at such subsequent
time, then you will promptly supplement the Information and the Projections so that such representations, warranties and covenants
would be correct in material respects; provided, for the avoidance of doubt, there will be no requirement to update previously
delivered Projections to reflect new assumptions so long as the assumptions were reasonable at the time made and made available
to us or any of our affiliates. The accuracy of the foregoing representations and warranties, whether or not cured, shall not be
a condition to the obligations of the Backstop Commitment Parties hereunder or the availability of the DIP Facility.

 

		4.	Premium.

 

As consideration
for the Backstop Commitments and agreements of the Backstop Commitment Parties hereunder and under the Restructuring Support
Agreement, Ascena Topco agrees to pay (or cause to be paid) to the Backstop Commitment Parties, (or, at any Backstop
Commitment Party’s option and upon such Related Lender’s designation (which may be provided by electronic
communication), its Related Lender), a non-refundable backstop premium equal to $7.5 million (the “Backstop
Commitment Premium”), which shall be allocated to each Backstop Commitment Party, in an amount equal to (1) its
percentage set forth on Schedule 2 hereto (the “Backstop Percentage”), multiplied by (2) the
Backstop Commitment Premium, which shall be fully earned, nonrefundable and non-avoidable on the execution of this Backstop
Commitment Letter and payable in cash free and clear of any withholding tax upon the funding of the New Money DIP Loans on
the Funding Date. Notwithstanding the foregoing, at the option of the Lenders, any or all of the Backstop Commitment Premium
may instead be effected in the form of original issue discount with respect to the DIP Facility.

 

    4

     

    

 

If a Termination Date
occurs prior to the funding of the DIP Term Facility, a non-refundable aggregate premium in an amount equal to $7.5 million shall
be payable in cash free and clear of any withholding tax (the “Termination Premium”) on the Termination Date,
which shall be allocated to each Backstop Commitment Party in an amount equal to (1) its Backstop Percentage, multiplied by (2)
the Termination Premium.

 

		5.	Payments and Fees

 

Without duplication
of any amounts payable pursuant to Section 2.10 of the Form DIP Credit Agreement, the New Money DIP Loans will be subject to a
commitment payment for each Lender participating in the DIP Facility in an amount of up to 2.50% of the principal amount of such
Lender’s New Money DIP Loans as of the Funding Date, earned upon entry of the Order and due and payable upon the Funding
Date (the payment described in this sentence, the “DIP Commitment Payment”). For the avoidance of doubt, the
entirety of the DIP Commitment Payment shall be treated as original issue discount with respect to the DIP Facility, and shall
be subject to the withholding provisions set forth in Section 2.15 of the Form DIP Credit Agreement.

 

The Debtors agree to
pay the fees, costs and expenses (collectively, the “Fronting Expenses”) incurred in connection with the initial
funding of the New Money DIP Loans by the Fronting Lender(s) and any assignments made by such Fronting Lender(s) to the Backstop
Commitment Parties in connection therewith; provided that such Fronting Expenses shall not exceed 0.50% of such Fronting Lender(s)’
New Money DIP Loans so funded.

 

		6.	Conditions.

 

The Backstop Commitment
Parties’ Backstop Commitments and agreements hereunder in respect of the DIP Facility are subject solely to the satisfaction
(or waiver) of the conditions precedent set forth in the sections of Article IV of the Form DIP Credit Agreement that are applicable
to the relevant borrowing. Subject to the Order, there are no conditions (implied or otherwise) to the Backstop Commitments hereunder
in respect of the DIP Facility, and there will be no conditions (implied or otherwise) to the availability of the DIP Facility
on the Effective Date or the funding of the New DIP Term Loans on the Funding Date, including compliance with the terms of this
Backstop Commitment Letter or the Form DIP Credit Agreement, other than those that are expressly stated in the applicable sections
of Article IV of the Form DIP Credit Agreement relevant to the availability of the DIP Facility on the Effective Date or the Funding
Date, as applicable. The Backstop Commitment Parties’ commitment in respect of the Exit Facility are subject to the satisfaction
or waiver of the conditions precedent set forth in “Conditions to Borrowing” in the Exit Facility Term Sheet. Subject
to the Order, there are no conditions (implied or otherwise) to the Backstop Commitments hereunder in respect of the Exit Facility,
and there will be no conditions (implied or otherwise) to the conversion of the Exit Facility on the Conversion Date, including
compliance with the terms of this Backstop Commitment Letter or the Form DIP Credit Agreement, other than those that are expressly
stated in the “Conditions to Borrowing” in the Exit Facility Term Sheet.

 

    5

     

    

 

		7.	Indemnification and Expenses.

 

You agree to (a)
indemnify and hold harmless each Backstop Commitment Party and the Administrative Agent, their respective affiliates and
their and their affiliates’ officers, directors, employees, agents, attorneys, accountants, advisors (including
investment managers and advisers), consultants, representatives, controlling persons, members and permitted successors and
assigns (each, an “Indemnified Person”) from and against any and all losses, claims, damages, liabilities
and expenses, joint or several (“Losses”) to which any such Indemnified Person may become subject arising
out of or in connection with this Backstop Commitment Letter, the DIP Facility, the Exit Facility the use of proceeds thereof
or any claim, litigation, investigation or proceeding relating to any of the foregoing, and to (b) reimburse each Backstop
Commitment Party from time to time within five (5) Business Days of receipt of their reasonable demand by presentation of a
summary statement for any reasonable and documented out-of-pocket legal or other expenses incurred in connection with the
Cases, the DIP Facility, the Exit Facility, the enforcement of this Backstop Commitment Letter, the definitive documentation
for the DIP Facility, the Exit Facility, and, in each case any ancillary documents and security arrangements in connection
therewith, but no other third-party financial advisors (other than Greenhill & Co., LLC as financial advisor for the
Backstop Commitment Parties) without your prior written consent; provided, that the foregoing indemnity will not, as to any
Indemnified Person, apply to Losses to the extent (a) they are found in a final non-appealable judgment of a court of
competent jurisdiction to have resulted from such Indemnified Person’s (i) gross negligence, bad faith, fraud or
willful misconduct or (ii) material breach of its obligations under this Backstop Commitment Letter, or (b) they relate to a
dispute solely among Indemnified Persons and not arising out of any act or omission of the Debtors or any of their respective
subsidiaries (other than any claim, litigation, investigation or proceeding against the Administrative Agent in its capacity
or in fulfilling its role as such).

 

None of you, the other
Debtors, any of your or their respective subsidiaries, we nor any other Indemnified Person will be responsible or liable to one
another for any indirect, special, punitive or consequential damages which may be alleged as a result of or arising out of, or
in any way related to, the DIP Facility, the Exit Facility, the enforcement of this Backstop Commitment Letter, the definitive
documentation for the DIP Facility or the Exit Facility, or any ancillary documents and security arrangements in connection therewith;
provided that your indemnity and reimbursement obligations under this Section 6 shall not be limited by this sentence.

 

		8.	Assignments, Amendments.

 

This Backstop Commitment
Letter shall not be assignable by you or us without the prior written consent of the other parties hereto (and any attempted assignment
without such consent shall be null and void), is intended to be solely for the benefit of the parties hereto, the Indemnified Persons
and with respect to Section 2, Section 6 and this Section 7, the Administrative Agent, and is not intended to confer any benefits
upon, or create any rights in favor of, any person or entity other than the parties hereto, the Indemnified Persons and with respect
to Section 2 and Section 6 and this Section 7, the Administrative Agent. Notwithstanding anything set forth in this Section 8 to
the contrary, each Backstop Commitment Party (i) shall assign all or a portion of its Backstop Commitment to other banks, financial
institutions, or institutional lenders and investors solely in connection with the Initial Allocation pursuant to Section 2
above (subject to the terms and conditions set forth therein) and (ii) may assign its respective Backstop Commitment, in whole
or in part, to any Related Lender, or to any other Backstop Commitment Party. This Backstop Commitment Letter may not be amended
or any provision hereof waived or modified except by an instrument in writing signed by the Backstop Commitment Parties and you.

 

This Backstop
Commitment Letter may be executed in any number of counterparts, each of which shall be an original and all of which, when
taken together, shall constitute one agreement. Delivery of an executed counterpart of a signature page of this Backstop
Commitment Letter by facsimile or other electronic transmission (including E-Signature) shall be effective as delivery of a
manually executed counterpart hereof. Section headings used herein are for convenience of reference only, are not part of
this Backstop Commitment Letter and are not to affect the construction of, or to be taken into consideration in interpreting,
this Backstop Commitment Letter. You acknowledge that information and documents relating to the DIP Facility and/or Exit
Facility may be transmitted through the internet, e-mail or similar electronic transmission systems and that neither any
Backstop Commitment Party nor any Agent, nor any of their respective affiliates, shall be liable for any damages arising from
the unauthorized use by others of information or documents transmitted in such manner.

 

    6

     

    

 

This Backstop Commitment
Letter supersedes all prior understandings, whether written or oral, between us with respect to the DIP Facility and the Exit Facility.

 

		9.	Governing Law, Etc.; Jurisdiction.

 

THIS BACKSTOP COMMITMENT
LETTER AND ANY CLAIM, CONTROVERSY OR DISPUTE ARISING UNDER OR RELATED TO THIS BACKSTOP COMMITMENT LETTER (INCLUDING, WITHOUT LIMITATION,
ANY CLAIMS SOUNDING IN CONTRACT LAW OR TORT LAW ARISING OUT OF THE SUBJECT MATTER HEREOF) SHALL BE GOVERNED BY, AND CONSTRUED IN
ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK (WITHOUT GIVING EFFECT TO ANY CHOICE OR CONFLICT OF LAW PROVISION OR RULE THAT
WOULD CAUSE THE APPLICATION OF THE DOMESTIC SUBSTANTIVE LAWS OF ANY OTHER STATE).

 

Each of the parties
hereto hereby irrevocably and unconditionally (a) submits, for itself and its property, to the non-exclusive jurisdiction of any
New York State court or Federal court of the United States of America sitting in the Borough of Manhattan in New York City, and
any appellate court from any thereof and the Bankruptcy Court, in any suit, action or proceeding arising out of or relating to
this Backstop Commitment Letter or the DIP Facility, and agrees that all claims in respect of any such suit, action or proceeding
may be heard and determined in such New York State court or, to the extent permitted by law, in such Federal court, or, to the
extent applicable, the Bankruptcy Court; provided that suit for the recognition or enforcement of any judgment obtained
in any such court may be brought in any other court of competent jurisdiction, (b) waives, to the fullest extent it may legally
and effectively do so, any objection which it may now or hereafter have to the laying of venue of any suit, action or proceeding
arising out of or relating to this Backstop Commitment Letter or the DIP Facility in any New York State court, in any such Federal
court or in Bankruptcy Court, (c) waives, to the fullest extent permitted by law, the defense of an inconvenient forum to the maintenance
of such suit, action or proceeding in any such court, and (d) agrees that a final judgment in any such suit, action or proceeding
shall be conclusive and may be enforced in other jurisdictions by suit on the judgment or in any other manner provided by law.

 

You hereby agree that
you shall not bring any suit, action, proceeding, claim or counterclaim under this Backstop Commitment Letter or with respect to
the transactions contemplated hereby in any court other than such New York State court or Federal Court of the United States of
America sitting in the Borough of Manhattan in New York City. Service of any process, summons, notice or document by registered
mail addressed to you at the address above shall be effective service of process against you for any suit, action or proceeding
brought in any such court.

 

10.              
Waiver of Jury Trial.

 

EACH OF THE PARTIES
HERETO IRREVOCABLY WAIVES (TO THE EXTENT PERMITTED BY APPLICABLE LAW) THE RIGHT TO TRIAL BY JURY IN ANY ACTION, PROCEEDING, CLAIM
OR COUNTERCLAIM BROUGHT BY OR ON BEHALF OF ANY PARTY RELATED TO OR ARISING OUT OF THIS BACKSTOP COMMITMENT LETTER OR THE PERFORMANCE
OF SERVICES HEREUNDER OR THE TRANSACTIONS CONTEMPLATED HEREBY OR THEREBY.

 

    7

     

    

 

		11.	Confidentiality.

 

This Backstop Commitment
Letter is delivered to Ascena Topco on the understanding that neither this Backstop Commitment Letter nor any of its terms or substance
shall be disclosed, directly or indirectly, to any other person or entity except (a) you and your officers, directors, employees,
legal counsel, accountants, auditors, financial advisors, existing and prospective holders of indebtedness and their respective
affiliates, representatives, officers, directors and legal counsel, in each case, who are involved in the consideration of the
financing transactions contemplated hereby who have been informed by you of the confidential nature of this Backstop Commitment
Letter and have agreed to treat such information confidentially, (b) in any legal, judicial or administrative proceeding or as
otherwise required by law or regulation or as requested by a governmental authority (in which case you agree, to the extent not
prohibited by law, to inform Backstop Commitment Parties promptly in advance thereof), (c) the office of the U.S. Trustee, any
ad-hoc or statutorily appointed committee of unsecured creditors, and their respective representatives and professional
advisors on a confidential and “need to know” basis, (d) to the Bankruptcy Court, in a redacted manner in form and
substance reasonably satisfactory to the Backstop Commitment Parties, to the extent required to obtain Bankruptcy Court approval
in connection with any acts or obligations to be taken pursuant to this Backstop Commitment Letter or the transactions contemplated
hereby and (e) you may disclose the aggregate fee amounts contained herein, as part of pro forma information or a generic disclosure
of aggregate sources and uses related to fee amounts related to the Transactions to the extent customary or required in offering
or marketing materials or in any public or regulatory filing relating to the Transactions.

 

Each Backstop
Commitment Party agrees to keep confidential, and not to publish, disclose or otherwise divulge, confidential information
with respect to the transactions contemplated hereby or obtained from or on behalf of you or your respective affiliates in
the course of the transactions contemplated hereby, except that the Backstop Commitment Parties shall be permitted to
disclose such confidential information (a) to their affiliates and their and their affiliates’ respective
directors, officers, agents, employees, attorneys, accountants, auditors and advisors involved in the transactions
contemplated hereby on a “need to know” basis and who are made aware of and agree to comply with the provisions
of this paragraph, in each case on a confidential basis (with the Backstop Commitment Party responsible for such
persons’ compliance with this paragraph), (b) on a confidential basis to any bona fide prospective Lender,
prospective participant or swap counterparty (in accordance with the terms of the Form DIP Credit Agreement) that agrees to
keep such information confidential in accordance with (x) the provisions of this paragraph (or language substantially similar
to this paragraph that is reasonably acceptable to you) for your benefit or (y) other customary confidentiality language in a
“click-through” arrangement, (c) as required by the order of any court or administrative agency or in any
pending legal, judicial or administrative proceeding, or otherwise as required by applicable law, regulation or compulsory
legal process (in which case you agree, to the extent not prohibited by law, to inform Backstop Commitment Parties promptly
in advance thereof), (d) to the extent such information: (i) becomes publicly available other than as a result of a
breach of this Backstop Commitment Letter or other confidentiality obligation owed by such Backstop Commitment Party to you
or your affiliates or (ii) becomes available to the Backstop Commitment Parties on a non-confidential basis from a
source other than you or on your behalf that, to such Backstop Commitment Party’s knowledge, is not in violation of any
confidentiality obligation owed to you or your affiliates, (e) to the extent you shall have consented to such disclosure
in writing (which may include through electronic means), (f) as is necessary in protecting and enforcing the Backstop
Commitment Parties’ rights with respect to this Backstop Commitment Letter and/or the DIP Facility, (g) to the extent
independently developed by such Backstop Commitment Party or its affiliates without reliance on confidential information, (h)
with respect to the existence and contents of the Form DIP Credit Agreement, in consultation with you, to the rating agencies
or (i) with respect to the existence and contents of the Backstop Commitment Letter and the DIP Facility, to market data
collectors or similar service providers in connection with the arrangement, administration or management of the DIP Facility
and to industry trade organizations where such information with respect to the DIP Facility is customarily included in league
table measurements. The Backstop Commitment Parties’ and their respective affiliates’, if any, obligations under
this paragraph shall terminate automatically to the extent superseded by the confidentiality provision in the Form DIP Credit
Agreement upon the effectiveness thereof and, in any event, will terminate one year from the date hereof.

 

    8

     

    

 

		12.	Miscellaneous.

 

The Backstop Commitment
Parties hereby notify Ascena Topco that, pursuant to the requirements of the USA PATRIOT Act, Title III of Pub. L. 107-56 (signed
into law on October 26, 2001) (the “PATRIOT Act”), it and its affiliates are required to obtain, verify and
record information that identifies Ascena Topco, each other Debtor, which information includes names, addresses, tax identification
numbers and other information that will allow Backstop Commitment Parties and its affiliates to identify Ascena Topco and each
other Debtor in accordance with the PATRIOT Act. This notice is given in accordance with the requirements of the PATRIOT Act and
is effective for Backstop Commitment Parties and its affiliates.

 

Absent a change in
applicable tax law or a contrary determination (as defined in Section 1313(a) of the Internal Revenue Code of 1986, as amended),
each of the parties hereto agrees (i) the Backstop Commitment Premium and the Termination Premium shall be treated as premiums
paid by the Debtors to the relevant Backstop Commitment Party in exchange for the issuance of a put right to Ascena Topco with
respect to the DIP Facility and (ii) to not take any tax position inconsistent with the tax treatment described in clause (i).

 

Each of the parties
hereto agrees that this Backstop Commitment Letter is a binding and enforceable agreement with respect to the subject matter contained
herein, including an agreement to negotiate in good faith the definitive documentation for the DIP Facility and the Exit Facility
by the parties hereto in a manner consistent with this Backstop Commitment Letter, it being acknowledged and agreed that the availability
of the DIP Facility and Exit Facility is subject to the conditions precedent expressly set forth in Section 5 hereof.

 

If the foregoing
correctly sets forth our agreement, please indicate Ascena Topco’s acceptance of the terms of this Backstop Commitment
Letter by returning to the Backstop Commitment Parties executed counterparts of this Backstop Commitment Letter not later
than 11:59 p.m., New York City time, on July 23, 2020. This offer will automatically expire at such time if the Backstop
Commitment Parties have not received such executed counterparts in accordance with the preceding sentence. This Backstop
Commitment Letter and the Backstop Commitments and agreements hereunder shall automatically terminate on the earlier of (i)
July 26, 2020, unless the Petition Date has occurred by such date, (ii) the date that is 36 calendar days after the Petition
Date, unless prior to such time the DIP Financing Order (as defined in the Restructuring Support Agreement) shall have been
entered by the Bankruptcy Court, (iii) five Business Days after the Termination Date (as defined in the Restructuring Support
Agreement) or the Restructuring Support Agreement otherwise ceases to be in full force and effect or (iv) five Business Days
after the Outside Date (as defined in the Restructuring Support Agreement), unless prior to such time the Exit Conversion
shall have occurred, in each case unless extended by agreement of you and the Majority Backstop Commitment Parties (which
agreement may be evidenced by email of counsel). Notwithstanding the immediately preceding sentence, Section 4 above, as well
as the indemnification and expenses, confidentiality, Initial Allocation, information, jurisdiction, governing law and waiver
of jury trial provisions contained herein shall remain in full force and effect in accordance with their terms
notwithstanding the termination of this Backstop Commitment Letter or the Backstop Commitment Parties’ Backstop
Commitments hereunder; provided that your obligations under this Commitment Letter, other than those pursuant to
Section 4 and with respect to the Initial Allocation and confidentiality, shall automatically terminate and be superseded by
the applicable provisions in the Form DIP Credit Agreement and the Exit Facility Credit Agreement, in each case, to the
extent covered thereby, upon the initial funding on the Effective Date or the occurrence of the Exit Conversion, and you
shall be released from all liability in connection therewith at such time.

 

[Signature Pages follow.]

 

    9

     

    

 

The Backstop Commitment
Parties are pleased to have been given the opportunity to assist Ascena and the other Debtors in connection with the DIP
Facility.

 

	 	Very truly yours,
	 	 
	 	[BACKSTOP COMMITMENT
    PARTY SIGNATURE PAGES On file with the Company]

 

Signature page to Backstop Commitment Letter

 

     

     

    

 

	Accepted
    and agreed to as of July 23, 2020:	 
	 	 
	ASCENA
    RETAIL GROUP, INC.	 
	 	 
	By:  	 /s/ Dan Lamadrid	 
	 	Name: Dan Lamadrid	 
	 	Title: Executive Vice President and Chief Financial
Officer	 

 

Signature page to Backstop Commitment
Letter

 

     

     

    

 

 

 

Schedule 1

 

[On file with the Company]

 

     

     

    

 

Schedule 2

 

[On file with the Company]

 

     

     

    

 

Exhibit A

 

[Attached]

 

     

     

    

 

 

 

$311,800,000

SENIOR SECURED SUPER-PRIORITY DEBTOR-IN-POSSESSION

TERM CREDIT AGREEMENT

 

dated as of

 

[ ], 2020,

 

among

 

ASCENA RETAIL GROUP, INC.,

as Parent Borrower

 

AnnTaylor
Retail, Inc.,

as Subsidiary Borrower

 

The LENDERS Party Hereto

 

and

 

ALTER DOMUS (US) LLC,

as Administrative Agent

 

 

 

 

 

     

     

    

 

TABLE OF CONTENTS

 

		 	Page
	 	 	 
	Article I
	 
	Definitions
	 
	Section 1.01.	Defined Terms	2
	Section 1.02.	Classification of Loans and Borrowings	33
	Section 1.03.	Terms Generally	33
	Section 1.04.	Accounting Terms; GAAP	34
	Section 1.05.	Classification of Actions	34
	Section 1.06.	Divisions	34
	 	 	 
	Article II
	 
	The Credits
	 
	Section 2.01.	Commitments	35
	Section 2.02.	Loans and Borrowings	35
	Section 2.03.	Requests for Borrowings	36
	Section 2.04.	Funding of Borrowings	36
	Section 2.05.	Interest Elections	37
	Section 2.06.	Termination of Commitments	38
	Section 2.07.	Repayment of Loans; Evidence of Debt	38
	Section 2.08.	Amortization of Term Loans	39
	Section 2.09.	Prepayment of Loans	39
	Section 2.10.	Fees	41
	Section 2.11.	Interest	41
	Section 2.12.	Alternate Rate of Interest	42
	Section 2.13.	Increased Costs	43
	Section 2.14.	Break Funding Payments	45
	Section 2.15.	Taxes	45
	Section 2.16.	Payments Generally; Pro Rata Treatment; Sharing
    of Set-offs	49
	Section 2.17.	Mitigation Obligations; Replacement of Lenders	51
	Section 2.18.	[Reserved]	52
	Section 2.19.	[Reserved]	52
	Section 2.20.	Joint and Several Liability of the Borrowers	52
	Section 2.21.	Super-Priority Nature of Obligations and Administrative
    Agent’s Liens; Payment of Obligations	53
	Section 2.22.	Conversion to Exit Facility Agreement	54

 

    i

     

    

 

	Article III
	 
	Representations
    and Warranties
	 
	Section 3.01.	Organization;
    Powers	55
	Section 3.02.	Authorization;
    Enforceability; Benefit to Loan Parties	55
	Section 3.03.	Governmental
    Approvals; No Conflicts	55
	Section 3.04.	Financial
    Condition; No Material Adverse Change	56
	Section 3.05.	Properties	56
	Section 3.06.	Litigation
    and Environmental Matters	56
	Section 3.07.	Compliance
    with Laws and Agreements	57
	Section 3.08.	Investment
    Company Status	57
	Section 3.09.	Taxes	57
	Section 3.10.	ERISA;
    Labor Matters	58
	Section 3.11.	[Reserved]	58
	Section 3.12.	Subsidiaries
    and Joint Ventures	58
	Section 3.13.	Insurance	59
	Section 3.14.	Federal
    Reserve Regulations	59
	Section 3.15.	[Reserved]	59
	Section 3.16.	Collateral
    Matters	59
	Section 3.17.	Use
    of Proceeds	60
	Section 3.18.	Approved
    Budget	60
	Section 3.19.	Chapter
    11 Cases	60
	 	 	 
	Article IV
	 
	Conditions
	 
	Section 4.01.	Conditions
    to Effective Date and Availability of the Term Loans	61
	SECTION
    4.02	Conditions
    to the New Money Loan	63
	 	 	 
	Article V
	 
	Affirmative
    Covenants
	 
	Section 5.01.	Financial
    Statements and Other Information	63
	Section 5.02.	Notices
    of Material Events	66
	Section 5.03.	Collateral
    Obligations; Additional Subsidiaries	67
	Section 5.04.	Information
    Regarding Collateral	68
	Section 5.05.	Existence;
    Conduct of Business	69
	Section 5.06.	Payment
    of Obligations	69
	Section 5.07.	Maintenance
    of Properties	69
	Section 5.08.	Insurance	69
	Section 5.09.	Books
    and Records; Inspection and Rights	70
	Section 5.10.	Compliance
    with Laws	70
	Section 5.11.	Bankruptcy
    Matters	70
	Section 5.12.	Maintenance
    of Ratings	71
	Section 5.13.	Certain
    Post-Closing Collateral Obligations	71
	Section 5.14.	Reserved	71
	Section 5.15.	Conference
    Calls	71

 

    ii

     

    

 

	Article VI
	 
	Negative
    Covenants
	 
	Section 6.01.	Indebtedness; Certain Equity
    Securities	71
	Section 6.02.	Liens	73
	Section 6.03.	Fundamental Changes; Business Activities	74
	Section 6.04.	Investments, Loans, Advances, Guarantees and
    Acquisitions	75
	Section 6.05.	Asset Sales	77
	Section 6.06.	Sale/Leaseback Transactions	78
	Section 6.07.	Swap Agreements	78
	Section 6.08.	Restricted Payments; Certain Payments of Indebtedness	78
	Section 6.09.	Transactions with Affiliates	79
	Section 6.10.	Restrictive Agreements	80
	Section 6.11.	Amendment of Organizational Documents	81
	Section 6.12.	Financial Covenants	81
	Section 6.13.	Accounting Changes	81
	Section 6.14.	Sanctions	81
	Section 6.15.	Anti-Corruption Laws	81
	 	 	 
	Article VII
	 
	Events
    of Default
	 
	Article VIII
	 
	The Administrative
    Agent
	 
	Article IX
	 
	Miscellaneous
	 
	Section 9.01.	Notices	91
	Section 9.02.	Waivers; Amendments	93
	Section 9.03.	Expenses; Indemnity; Damage Waiver	95
	Section 9.04.	Successors and Assigns	97
	Section 9.05.	Survival	101
	Section 9.06.	Counterparts; Integration; Effectiveness; Electronic
    Execution	102
	Section 9.07.	Severability	102
	Section 9.08.	Right of Setoff	102
	Section 9.09.	Governing Law; Jurisdiction; Consent to Service
    of Process	103
	Section 9.10.	WAIVER OF JURY TRIAL	103
	Section 9.11.	Headings	104
	Section 9.12.	Confidentiality	104
	Section 9.13.	Several Obligations; Nonreliance; Violation
    of Law	104
	Section 9.14.	USA Patriot Act Notice	104
	Section 9.15.	Interest Rate Limitation	105
	Section 9.16.	Release of Liens and Guarantees	105
	Section 9.17.	No Fiduciary Relationship	105
	Section 9.18.	Non-Public Information	106
	Section 9.19.	Intercreditor Agreement	106
	Section 9.20.	Acknowledgement and Consent to Bail-In of EEA
    Financial Institutions	107

 

    iii

     

    

 

	SCHEDULE:	 	 
	 	 	 
	Schedule 2.01	—	Commitments
	Schedule
    3.05	—	Real
    Property
	Schedule
    3.06	—	Disclosed
    Matters
	Schedule
    3.12	—	Subsidiaries
    and Joint Ventures
	Schedule
    3.13	—	Insurance
	Schedule
    5.11	—	Required
    Milestones
	Schedule 6.01	—	Pre-Petition
    Indebtedness
	Schedule
    6.02	—	Liens
	Schedule
    6.04	—	Investments
	Schedule
    6.09	—	Transactions
    with Affiliates
	Schedule
    6.10	—	Restrictive
    Agreements
	 	 	 
	EXHIBITS:	 	 
	 	 	 
	Exhibit A	—	Form
    of Assignment and Assumption
	Exhibit B	—	Form
    of Borrowing Request
	Exhibit C	—	Form
    of Guarantee and Collateral Agreement
	Exhibit D	—	Form
    of Compliance Certificate
	Exhibit E	—	Form
    of Interest Election Request
	Exhibit F	—	[Reserved]
	Exhibit G	—	Form
    of Exit Facility Term Sheet
	Exhibit H-1	—	Form
    of U.S. Tax Certificate for Non-U.S. Lenders that are not Partnerships for U.S. Federal Income Tax Purposes
	Exhibit H-2	—	Form
    of U.S. Tax Certificate for Non-U.S. Lenders that are Partnerships for U.S. Federal Income Tax Purposes
	Exhibit H-3	—	Form
    of U.S. Tax Certificate for Non-U.S. Participants that are not Partnerships for U.S. Federal Income Tax Purposes
	Exhibit H-4	—	Form
    of U.S. Tax Certificate for Non-U.S. Participants that are Partnerships for U.S. Federal Income Tax Purposes
	Exhibit I	—	[Reserved]
	Exhibit J	—	Form
    of Variance Report
	Exhibit
    K	—	Form
    of Note
	 	 	 
	Annex
    A	—	Approved
    Budget

 

    iv

     

    

 

 

SENIOR SECURED SUPER-PRIORITY DEBTOR-IN-POSSESSION
TERM CREDIT AGREEMENT, dated as of [ ], 2020, among ASCENA RETAIL GROUP, INC., a Delaware corporation, as debtor and debtor-in-possession
(the “Parent Borrower”), AnnTaylor Retail, Inc., a Florida corporation
as debtor and debtor-in-possession (the “Subsidiary Borrower” and, together with the Parent Borrower, the “Borrowers”
and each, a “Borrower”), the LENDERS party hereto and Alter Domus (US) LLC (“Alter Domus”),
as Administrative Agent.

 

On July 23, 2020 (the “Petition Date”),
the Borrowers and the other Loan Parties (collectively, the “Debtors”, and each individually, a “Debtor”)
commenced voluntary cases (collectively, the “Cases” and each individually, a “Case”) in
the United States Bankruptcy Court for the Eastern District of Virginia Richmond Division (the “Court”). The
Debtors continue to operate their businesses and manage their properties as debtors and debtors-in-possession pursuant to Sections
1107 and 1108 of the Bankruptcy Code.

 

Prior to the Petition Date, the Lenders provided
financing to the Borrowers pursuant to that certain Term Credit Agreement dated as of August 21, 2015, among the Borrowers, the
other Loan Parties, the Pre-Petition Lenders and Goldman Sachs Bank USA, as the Pre-Petition Agent and the other parties thereto
(as amended, amended and restated, supplemented or otherwise modified from time to time through the date hereof, the “Pre-Petition
Credit Agreement”).

 

As of the Petition Date, the Pre-Petition
Lenders under the Pre-Petition Credit Agreement were owed approximately $1,271,597,089 in Loans (as defined in the Pre-Petition
Credit Agreement), plus interest, fees, costs and expenses and all other Pre-Petition Lender Obligations under the Pre-Petition
Credit Agreement.

 

The Loan Document Obligations under and as
defined in the Pre-Petition Credit Agreement are secured by a security interest in substantially all of the existing and after-acquired
assets of the Borrowers and the other Loan Parties as more fully set forth in the Pre-Petition Loan Documents, and such security
interest is perfected and, with certain exceptions, as described in the Pre-Petition Loan Documents, has priority over other security
interests.

 

The Borrowers have requested, and, upon the
terms set forth in this Agreement, the Lenders have agreed to make or be deemed to have made available to the Borrowers, a senior
secured super priority term credit facility of up to $311,800,000 in the aggregate that is automatically convertible into a secured
exit facility upon the satisfaction (or waiver) of certain conditions in the form of a term facility to be made available to the
Borrowers at any time until the Maturity Date subject to the terms and conditions set forth herein (the “Term Credit Facility”).

 

The Borrowers and other Loan Parties have
agreed to secure all of their Loan Document Obligations under the Loan Documents by granting to the Administrative Agent, for the
benefit of the Administrative Agent and the other Secured Parties, a security interest in and lien upon all of their existing and
after-acquired personal and real property, subject to the Intercreditor Agreement and the limitations and priorities contained
in the Loan Documents and the Order.

 

     

     

    

 

Accordingly, in consideration of the mutual
agreements herein contained and other good and valuable consideration, the sufficiency and receipt of which are hereby acknowledged,
the parties hereto agree as follows:

 

Article I

 

Definitions

 

Section 1.01.       
Defined Terms. As used in this Agreement, the following terms have the meanings specified below:

 

“ABL Agent” means the
Person acting as agent under the ABL Credit Agreement, in its individual capacity, and its successors.

 

“ABL Credit Agreement”
means the Senior Secured Super-Priority Debtor-In-Possession Credit Agreement, dated the Funding Date, among the Parent Borrower,
the borrowing subsidiaries party thereto, the other loan parties party thereto, the lenders party thereto and the ABL Agent, as
administrative agent, as amended, restated, supplemented, modified, renewed, refunded, replaced or refinanced from time to time
through the date hereof.

 

“ABL Lenders” means the
lenders under the ABL Credit Agreement.

 

“ABL Priority Collateral”
has the meaning set forth in the Intercreditor Agreement.

 

“ABR,” when used in reference
to any Loan or Borrowing, refers to whether such Loan, or the Loans comprising such Borrowing, bears interest at a rate determined
by reference to the Alternate Base Rate.

 

“Acceptable Plan” means
a Plan of Reorganization that is consistent with the RSA and otherwise satisfactory to the Required Lenders and the Loan Parties
in their reasonable discretion (as the same may be amended, supplemented, or modified from time to time after entry thereof in
accordance with the terms thereof); it being agreed that the Plan (as defined in the RSA) is an “Acceptable Plan” to
the Required Lenders.

 

“Actual Net Cash Flow Amount”
means the actual net cash flows of the Loan Parties during the relevant period of determination which corresponds to each of the
Budgeted Net Cash Flow Amounts described in the line item contained in the Approved Budget across from the heading “Unlevered
Operating Cash Flow, Including Restructuring”.

 

“Ad Hoc Committee” means
the ad hoc committee of Consenting Stakeholders (as defined in the RSA).

 

“Ad Hoc Committee Advisors”
means Greenhill Partners and Milbank LLP, the advisors of the Ad Hoc Committee.

 

“Adjusted LIBO
Rate” means, with respect to any Eurodollar Borrowing for any Interest Period, an interest rate per annum (rounded
to the nearest 1/16 of 1%) equal to (a) the LIBO Rate for such Interest Period multiplied by (b) the Statutory
Reserve Rate; provided that, notwithstanding the foregoing, in the case of the Term Loans, the Adjusted LIBO Rate
shall at no time be less than 1.00% per annum.

 

    2

     

    

 

“Administrative Agent”
means Alter Domus (US) LLC, in its capacity as administrative agent hereunder and under the other Loan Documents, and its successors
in such capacity as provided in Article VIII.

 

“Administrative Agent Fee Letter”
means that certain Fee Letter dated as of even date herewith between the Borrowers and Alter Domus.

 

“Administrative Questionnaire”
means an Administrative Questionnaire in a form supplied by the Administrative Agent.

 

“Affiliate” means, with
respect to a specified Person, another Person that directly or indirectly Controls or is Controlled by or is under common Control
with the Person specified.

 

“Agreement” means this
Senior Secured Super-Priority Debtor-In-Possession Term Credit Agreement, as modified, supplemented, amended or restated from time
to time.

 

“Alter Domus” has the
meaning set forth in the introductory paragraph hereto.

 

“Alternate Base Rate”
means, for any day, a rate per annum equal to the greatest of (a) the Prime Rate in effect on such day, (b) the Federal
Funds Effective Rate in effect on such day plus 1/2 of 1% per annum and (c) the Adjusted LIBO Rate on such day (or if such
day is not a Business Day, the immediately preceding Business Day) for a deposit in dollars with a maturity of one month plus 1%
per annum; provided that, for the avoidance of doubt, the Adjusted LIBO Rate for any day shall be based on the Screen Rate
(or the Interpolated Screen Rate, as applicable) at approximately 11:00 a.m., London time, on such day for a deposit in dollars
with a maturity of one month. Any change in the Alternate Base Rate due to a change in the Prime Rate, the Federal Funds Effective
Rate or the Adjusted LIBO Rate shall be effective from and including the effective date of such change in the Prime Rate, the Federal
Funds Effective Rate or the Adjusted LIBO Rate, respectively. Notwithstanding the foregoing, in the case of the Term Loans, the
Alternate Base Rate shall at no time be less than 2.00% per annum.

 

“Anti-Corruption Laws”
means all laws, rules, and regulations of any jurisdiction applicable to the Parent Borrower and its Subsidiaries from time to
time concerning or relating to bribery or corruption, including the United States Foreign Corrupt Practices Act of 1977 and the
UK Bribery Act 2010.

 

“Applicable Rate” means,
for any day, with respect to any Term Loan, (i) 11.75% in the case Eurodollar Term Loans and (ii) 10.75% in the case of ABR
Term Loans.

 

“Approved Budget”
means the budget prepared by the Parent Borrower in form and substance reasonably satisfactory to the Ad Hoc Committee
Advisors, it being understood and agreed that the budget in the form of Annex A and initially furnished to the
Administrative Agent on or prior to the Effective Date is deemed reasonably satisfactory to the Ad Hoc Committee Advisors, as
the same may be updated, modified or supplemented from time to time as provided in Section 5.01. The initial Approved
Budget shall depict, on a weekly and line item basis, (i) projected cash receipts, (ii) projected cash disbursements
(including ordinary course operating expenses, bankruptcy-related expenses (including professional fees of the Loan
Parties’ professionals and advisors), asset sales and any other fees and expenses relating to the Loan Documents),
(iii) net cash flows, (iv) Liquidity and (v) professional fees and disbursements with respect to the Loan Parties’
professionals, in each case for the first thirteen (13) week period from the Effective Date, and such initial Approved Budget
shall be approved by, and in form and substance reasonably satisfactory to, the Administrative Agent and the Required Lenders
in their sole discretion (it being acknowledged and agreed that the initial Approved Budget attached hereto as Annex A
is approved by and reasonably satisfactory to the Administrative Agent and the Required Lenders)1.

 

    3

     

    

 

“Approved Fund” means
any Person (other than a natural person that is engaged in making, purchasing, holding or investing in commercial loans and similar
extensions of credit in the ordinary course of its activities and that is administered or managed by (a) a Lender, (b) an
Affiliate of a Lender or (c) an entity or an Affiliate of an entity that administers or manages a Lender.

 

“Asset Sale” has the
meaning set forth in Section 6.05.

 

“Asset Sale Escrow Account”
[____]2.

 

“Assignment and Assumption”
means an assignment and assumption entered into by a Lender and an Eligible Assignee, with the consent of any Person whose consent
is required by Section 9.04, and accepted by the Administrative Agent, in the form of Exhibit A or any other form approved
by the Administrative Agent.

 

“Automatic Stay” means
the automatic stay provided under Section 362 of the Bankruptcy Code.

 

“Backstop Lender” means
each Lender who is party to the Commitment Letter.

 

“Bail-In Action” means
the exercise of any Write-Down and Conversion Powers by the applicable EEA Resolution Authority in respect of any liability of
such EEA Financial Institution.

 

“Bail-In Legislation”
means, with respect to any EEA Member Country implementing Article 55 of Directive 2014/59/EU of the European Parliament and of
the Council of the European Union, the implementing law for such EEA Member Country from time to time which is described in the
EU Bail-In Legislation Schedule.

 

“Bankruptcy Code” means
the Bankruptcy Reform Act of 1978, as codified at 11 U.S.C. §§ 101 et seq.

 

 

 

1
Subject to review of initial Approved Budget.

 

2
Escrow mechanics to be confirmed.

 

    4

     

    

 

“Bankruptcy Rules” means
the Federal Rules of Bankruptcy Procedure, as the same may from time to time be in effect and applicable to the Cases.

 

“Board of Governors”
means the Board of Governors of the Federal Reserve System of the United States of America.

 

“Borrowers” has the meaning
set forth in the introductory paragraph hereto.

 

“Borrowing” means Loans
of the same Type made, converted or continued on the same date and, in the case of Eurodollar Loans, as to which a single Interest
Period is in effect.

 

“Borrowing Request” means
a request by the Borrowers for a Borrowing in accordance with Section 2.03, which shall be, in the case of any such written
request, in the form of Exhibit B or any other form approved by the Administrative Agent.

 

“Budgeted Net Cash Flow Amount”
means the amount described in the line item contained in the Approved Budget across from the heading “Unlevered Operating
Cash Flow Including Restructuring”, during the relevant period of determination.

 

“Business Day” means
any day that is not a Saturday, Sunday or other day on which commercial banks in New York City are authorized or required by law
to remain closed; provided that, when used in connection with a Eurodollar Loan, the term “Business Day” shall
also exclude any day on which banks are not open for dealings in dollar deposits in the London interbank market.

 

“Capital Lease Obligations”
of any Person means the obligations of such Person to pay rent or other amounts under any lease of (or other arrangement conveying
the right to use) real or personal property, or a combination thereof, which obligations are required to be classified and accounted
for as capital leases on a balance sheet of such Person under GAAP (as in effect on December 31, 2018, notwithstanding any modification
or interpretative change thereto after such date and excluding the effect to any treatment of lease under Accounting Standards
Codification 842 (or any other Accounting Standards Codification or Financial Accounting Standard have a similar result or effect)),
the amount of such obligations shall be the capitalized amount thereof determined in accordance with GAAP.

 

“Carve Out” has the meaning
set forth in the Order.

 

“Cases” has the meaning
set forth in the Recitals.

 

“Cash Equivalents” means:

 

(a)              
marketable direct obligations issued or unconditionally guaranteed by the United States Government, the Government of Canada,
or the UK government, or issued by an agency thereof and backed by the full faith and credit of the United States Government, the
Government of Canada, or the UK government, as the case may be, in each case maturing within two years after the date of acquisition
thereof;

 

    5

     

    

 

(b)              
 marketable direct obligations issued by any state of the United States of America or any province of Canada, or any member
of the European Union or any political subdivision of any such state or province or any public instrumentality thereof, in each
case maturing within two years after the date of acquisition thereof and, at the time of acquisition, having a rating of at least
A by S&P or Moody’s (or, if at any time neither S&P nor Moody’s shall be rating such obligations, then from
such other nationally recognized rating services acceptable to the Administrative Agent);

 

(c)              
commercial paper maturing no more than one year after the date of creation thereof and, at the time of acquisition, having
a rating of at least A-2 or P-2 from either S&P or Moody’s (or, if at any time neither S&P nor Moody’s
shall be rating such obligations, then the highest rating from such other nationally recognized rating services acceptable to the
Administrative Agent);

 

(d)              certificates
of deposit or bankers acceptances denominated in US Dollars, Canadian Dollars, Sterling or Euro and maturing within one year after
the date of acquisition thereof issued by any Lender or any other commercial bank organized under the laws of the United States
of America or Canada or any state or province thereof or the District of Columbia, or the UK, in each case having combined capital
and surplus of not less than $250,000,000 (or the foreign currency equivalent thereof);

 

(e)               repurchase
agreements of any Lender or any other commercial bank organized under the laws of the United States of America or Canada or any
state or province thereof or the District of Columbia, or the UK, in each case having combined capital and surplus of not less
than $250,000,000 (or the foreign currency equivalent thereof);

 

(f)               overnight investments with any Lender or any other commercial bank organized under the laws of the United States of America
or Canada or any state or province thereof or the District of Columbia, or the UK, in each case having combined capital and surplus
of not less than $250,000,000 (or the foreign currency equivalent thereof);

 

(g)              other
readily marketable instruments issued or sold by any Lender or any other commercial bank organized under the laws of the United
States of America or Canada or any state or province thereof or the District of Columbia, or the UK, in each case having combined
capital and surplus of not less than $250,000,000 (or the foreign currency equivalent thereof);

 

(h)              
shares of mutual funds whose investment guidelines restrict 95% of such funds’ investments to those satisfying the
provisions of clauses (a) through (g) above;

 

(i)               
funds invested in brokerage accounts with nationally recognized brokerage houses or money market accounts; and

 

(j)                in
the case of investments by any Foreign Subsidiary or investments made in a country outside the United States, other
customarily utilized high quality investments in the country where such Foreign Subsidiary is located or in which such
investment is made that would customarily constitute “cash equivalents”.

 

    6

     

    

 

“Cash Management Order”
means the order of the Court entered in the Cases after the “first day” hearing on a final basis, together with all
extensions, modifications and amendments thereto, in form and substance reasonably satisfactory to the Required Lenders, which
among other matters authorizes the Debtors to maintain their existing cash management and treasury arrangements (as set forth in
the Pre-Petition Credit Agreement) or such other arrangements as shall be reasonably acceptable to the Required Lenders in all
material respects

 

“CFC” means (a) any Person
that is a “controlled foreign corporation” within the meaning of Section 957(a) of the Code and (b) each subsidiary
of any Person described in clause (a).

 

“CFC Holdco” means a
Subsidiary with no material assets other than equity interests of one or more Foreign Subsidiaries that are CFCs.

 

“Change in Control” means
during any period of 12 consecutive months, a majority of the members of the board of directors or other equivalent governing body
of the Parent Borrower cease to be composed of individuals (i) who were members of that board or equivalent governing body on the
first day of such period, (ii) whose election or nomination to that board or equivalent governing body was approved by individuals
referred to in clause (i) above constituting at the time of such election or nomination at least a majority of that board or equivalent
governing body or (iii) whose election or nomination to that board or other equivalent governing body was approved by individuals
referred to in clauses (i) and (ii) above constituting at the time of such election or nomination at least a majority of that board
or equivalent governing body.

 

“Change in Law” means
the occurrence, after the date of this Agreement, of any of the following: (a) the adoption or taking effect of any rule,
regulation, treaty or other law, (b) any change in any rule, regulation, treaty or other law or in the administration, interpretation,
implementation or application thereof by any Governmental Authority or (c) the making or issuance of any request, rule, guideline
or directive (whether or not having the force of law) by any Governmental Authority; provided that, notwithstanding anything
herein to the contrary, (i) the Dodd-Frank Wall Street Reform and Consumer Protection Act and all requests, rules, guidelines
or directives thereunder or issued in connection therewith and (ii) all requests, rules, guidelines or directives promulgated
by the Bank for International Settlements, the Basel Committee on Banking Supervision (or any successor or similar authority) or
the United States or foreign regulatory authorities, in each case pursuant to Basel III, shall in each case be deemed to be
a “Change in Law,” regardless of the date enacted, adopted, promulgated or issued.

 

“Charges” has the meaning
set forth in Section 9.15.

 

“Claim” means any
(a) right to payment, whether or not such right is reduced to judgment, liquidated, unliquidated, fixed, contingent, matured,
unmatured, disputed, undisputed, legal, equitable, secured, or unsecured; or (b) right to an equitable remedy for breach of
performance if such breach gives rise to a right to payment, whether or not such right to an equitable remedy is reduced to
judgment, fixed, contingent, matured, unmatured, disputed, undisputed, secured, or unsecured.

 

    7

     

    

 

“Code” means the Internal
Revenue Code of 1986.

 

“Collateral” means (a)
means, collectively, all of the real, personal and mixed property (including Equity Interests) in which Liens are purported to
be granted pursuant to the Collateral Documents as security for the Loan Document Obligations, and (b) the [“DIP Collateral”]3
referred to in the Order, it being understood that “Collateral” shall include all such “DIP Collateral”
irrespective of whether any such property was excluded pursuant to the Pre-Petition Loan Documents.

 

“Collateral Agreement”
means the Guarantee and Collateral Agreement among the Borrowers, the other Loan Parties and the Administrative Agent, substantially
in the form of Exhibit C, together with all supplements thereto.

 

“Collateral and Guarantee Requirement”
means, at any time, the requirement that:

 

(a)              
the Administrative Agent shall have received from the Borrowers and each Designated Subsidiary (a) either (i) a counterpart
of the Collateral Agreement, duly executed and delivered on behalf of such Person, or (ii) in the case of any Person that
becomes a Designated Subsidiary after the Effective Date, a supplement to the Collateral Agreement, in the form specified therein,
duly executed and delivered on behalf of such Person, together with such documents with respect to such Designated Subsidiary as
may reasonably be requested by the Administrative Agent and (b) an Intercreditor Acknowledgement in the form referred to in the
Intercreditor Agreement, duly executed and delivered on behalf of such Person;

 

(b)             
all Equity Interests owned by or on behalf of any Loan Party shall have been pledged pursuant to, and to the extent required
by, the Collateral Agreement, including Equity Interests in any Luxembourg IP Subsidiary and any first-tier CFC or CFC Holdco,
and the Administrative Agent shall, to the extent required by the Collateral Agreement, have received certificates or other instruments
representing all such certificated Equity Interests, together with undated stock powers or other instruments of transfer with respect
thereto endorsed in blank;

 

(c)             
all other assets, to the extent not constituting Excluded Property, shall have been pledged pursuant to, and to the extent
required by, the Collateral Agreement;

 

(d)              all
documents and instruments, including UCC financing statements, required by law or reasonably requested by the Administrative Agent
to be filed, registered or recorded to perfect the Liens intended to be created by the Collateral Documents with the priority
required by the Collateral Documents shall have been filed, registered or recorded or delivered to the Administrative Agent for
filing, registration or recording;

 

 

 

3
Subject to Final Order.

 

    8

     

    

 

(e)              
each Loan Party shall have obtained all material consents and approvals required in connection with the execution and delivery
of all Collateral Documents to which it is a party and the performance of its obligations thereunder; and

 

(f)               
the Loan Document Obligations shall at all times be secured by a valid, binding, continuing, enforceable perfected first
priority Lien on the DIP Accounts and the proceeds thereof and, on the Effective Date (or such later date as the Required Lenders
may agree in its sole discretion), the Borrowers must obtain Control Agreement for the DIP Accounts.

 

Notwithstanding the foregoing, any Designated
Subsidiary formed or acquired after the Effective Date shall not be required to comply with the foregoing requirements prior to
the time specified in Section 5.03. The foregoing definition shall not require the creation or perfection of pledges of or security
interests in, or the obtaining of title insurance or, subject to the requirements of applicable law, flood insurance, legal opinions,
appraisals, surveys or other deliverables with respect to, particular assets of the Loan Parties, or the provision of Guarantees
by any Restricted Subsidiary, if and for so long as the Administrative Agent (acting at the direction of the Required Lenders),
in consultation with the Borrowers, reasonably determines that the cost of creating or perfecting such pledges or security interests
in such assets, or obtaining such title insurance or flood insurance, legal opinions, appraisals, surveys or other deliverables
in respect of such assets, or providing such Guarantees, shall be excessive in view of the benefits to be obtained by the Lenders
therefrom. The Required Lenders may in their sole discretion, grant extensions of time for the creation and perfection of security
interests in (including delivery of promissory notes as required by clause (c) above) or the obtaining of title insurance
or, subject to the requirements of applicable law, flood insurance, legal opinions, appraisals, surveys or other deliverables with
respect to particular assets or the provision of any Guarantee by any Designated Subsidiary where it determines that such action
cannot be accomplished without undue effort or expense by the time or times at which it would otherwise be required to be accomplished
by this Agreement or the Collateral Documents.

 

“Collateral Documents”
means the Order, Collateral Agreement, and each other document granting a Lien upon any assets of any Loan Party as security for
payment of the Loan Document Obligations.

 

“Commitment” means, with
respect to each Lender, such Lender’s New Money Commitment and such Lender’s Roll-Up Loans Commitment.

 

“Commitment Letter” means
the Commitment Letter dated July 23, 2020, among the Ad Hoc Committee and the Parent Borrower.

 

“Committee” means an
official committee of unsecured creditors appointed in any of the Cases by the U.S. Trustee.

 

“Communications” means,
collectively, any written notice, demand, communication, information, document or other material provided by or on behalf of any
Loan Party pursuant to any Loan Document or the transactions contemplated therein that is distributed to the Administrative Agent
or any Lender by means of electronic communications pursuant to Section 9.01, including through the Platform.

 

    9

     

    

 

“Compliance Certificate”
means a Compliance Certificate in the form of Exhibit D or any other form approved by the Administrative Agent.

 

“Confirmation Order”
means an order of the Court entered in the Cases pursuant to section 1129 of the Bankruptcy Code, which order (x) shall confirm
an Acceptable Plan, be a final Order and otherwise be in form and substance reasonably satisfactory to the Required Lenders, together
with all extensions, modifications, and amendments thereto, also in form and substance reasonably satisfactory to the Required
Lenders and (y) (i) if the Term Credit Facility converts to the Exit Facility, shall authorize and approve the extensions of credit
under the Exit Facility Credit Agreement and the performance of the Borrowers’ (or the entities assuming and/or acquiring
directly or indirectly the operations and assets of the Borrowers in the Acceptable Plan) and Guarantors’ obligations thereunder,
authorize a pro forma capital structure that satisfies the conditions precedent to the occurrence of the Conversion Date and otherwise
satisfies all other conditions to the Conversion Date or (ii) if the Term Credit Facility is to be repaid in cash, shall authorize
and approve such repayment, any financing the proceeds of which will be used to fund such repayment, and the termination in full
of all outstanding obligations under the Term Credit Facility.

 

“Control” means the possession,
directly or indirectly, of the power to direct or cause the direction of the management or policies of a Person, whether through
the ability to exercise voting power, by contract or otherwise. “Controlling” and “Controlled”
have meanings correlative thereto.

 

“Control Agreement” means,
with respect to any deposit account or securities account maintained by any Loan Party, a control agreement in form and substance
reasonably satisfactory to the Administrative Agent, duly executed and delivered by such Loan Party and the depositary bank or
the securities intermediary, as the case may be, with which such account is maintained.

 

“Conversion Date” means
the date upon which each of the conditions precedent to effectiveness of the Exit Facility Agreement set forth in the Exit Facility
Term Sheet shall have been satisfied or waived.

 

“Court” has the meaning
set forth in the Recitals.

 

“Cumulative Four-Week Period”
means the four-week period up to and through the Saturday of the week most recently ended prior to the applicable Variance Report
Date, or if a four-week period has not then elapsed from the Petition Date, such shorter period since the Petition Date through
the Saturday of the most recent week then ended.

 

“Debtor” has the meaning
set forth in the Recitals.

 

“Debtors’ Investment Banker”
means Guggenheim Securities, LLC.

 

“Declined Proceeds” has
the meaning set forth in Section 2.09(d).

 

    10

     

    

 

“Default” means any event
or condition that constitutes an Event of Default or that upon notice, lapse of time or both would, unless cured or waived, become
an Event of Default.

 

“Default Rate” means
(i) in the case of overdue principal of any Loan, 2.0% per annum plus the rate otherwise applicable to such Loan as provided
in Section 2.11 or (ii) in the case of any other overdue amount, 2.0% per annum plus the rate applicable to ABR Term Loans
as provided in Section 2.11(a).

 

“Deposit Account” has
the meaning set forth in the Collateral Agreement.

 

“Designated Jurisdiction”
means any country or territory to the extent that such country or territory itself is the subject of any Sanction.

 

“Designated Persons”
means any person or entity listed on a Sanctions list.

 

“Designated Subsidiary”
means each Subsidiary other than an Excluded Subsidiary.

 

“DIP Accounts” means
the DIP Funding Account and the Asset Sale Escrow Account.

 

“DIP Funding Account”
means a Deposit Account in the name of the Parent Borrower subject to a blocked Control Agreement in favor of the Administrative
Agent, on behalf of the Secured Parties, in which the proceeds of the Loans shall be deposited and held on the Funding Date and
used solely for the purposes set forth in Section 3.17.

 

“DIP Superpriority Claim”
means allowed superpriority expense claims pursuant to Bankruptcy Code Sections 364(c)(1), 503 and 507 granted by the Order.

 

“Disclosed Matters” means
the actions, suits and proceedings and the environmental matters disclosed in Schedule 3.06.

 

“Disqualified
Stock” means any Equity Interests which, by its terms (or by the terms of any security into which it is convertible
or for which it is exchangeable), or upon the happening of any event, (a) matures (excluding any maturity as the result
of an optional redemption by the issuer thereof) or is mandatorily redeemable, pursuant to a sinking fund obligation or
otherwise, or is redeemable at the option of the holder thereof, in whole or in part, or requires the payment of any cash
dividend or any other scheduled payment constituting a return of capital, in each case at any time on or prior to the date
that is 91 days after the latest Maturity Date (determined as of the date of issuance thereof or, in the case of any such
Equity Interests outstanding on the date hereof, the date hereof), or (b) is convertible into or exchangeable (unless at
the sole option of the issuer thereof) for (i) cash, (ii) debt or (iii) any Equity Interests referred to in
(a) above, in each case at any time prior to the date that is 91 days after the latest Maturity Date (determined as of the
date of issuance thereof or, in the case of any such Equity Interests outstanding on the date hereof, the date hereof).
Notwithstanding the foregoing, any Equity Interests that would constitute Disqualified Stock solely because holders of the
Equity Interests have the right to require the issuer of such Equity Interests to repurchase such Equity Interests upon the
occurrence of a change in control or an asset sale will not constitute Disqualified Stock if the terms of such Equity
Interests provide that the issuer may not repurchase or redeem any such Equity Interests pursuant to such provisions unless
such repurchase or redemption is permitted under the terms of this Agreement.

 

    11

     

    

 

“dollars” or “$”
refers to lawful money of the United States of America.

 

“Domestic Subsidiary”
means any Subsidiary of the Parent Borrower that is organized under the laws of the United States, any state of the United States
or the District of Columbia, except for a Subsidiary directly or indirectly owned by a CFC.

 

“EEA Financial Institution”
means (a) any financial institution established in any EEA Member Country which is subject to the supervision of an EEA Resolution
Authority, (b) any entity established in an EEA Member Country which is a parent of an institution described in clause (a) of this
definition, or (c) any financial institution established in an EEA Member Country which is a subsidiary of an institution described
in clause (a) or (b) of this definition and is subject to consolidated supervision with its parent.

 

“EEA Member Country”
means any member state of the European Union, Iceland, Liechtenstein and Norway.

 

“EEA Resolution Authority”
means any public administrative authority or any person entrusted with public administrative authority of any EEA Member Country
(including any delegee) having responsibility for the resolution of any EEA Financial Institution.

 

“Effective Date” means
the date on which the conditions specified in Section 4.01 are satisfied (or waived in accordance with Section 9.02), which date
is [ ], 20204.

 

“Electronic Signature”
means an electronic sound, symbol, or process attached to, or associated with, a contract or other record and adopted by a Person
with the intent to sign, authenticate or accept such contract or record.

 

“Eligible Assignee” means
(a) a Lender, (b) an Affiliate of a Lender, (c) an Approved Fund and (d) any other Person, other than, in each
case, a natural person or the Parent Borrower, any Subsidiary or any other Affiliate of the Parent Borrower.

 

“Environment” means ambient
air, indoor air, surface water, groundwater, drinking water, land surface and subsurface strata, and natural resources such as
wetlands, flora and fauna.

 

“Environmental
Laws” means all applicable federal, state, and local laws (including common law), regulations, rules, ordinances,
codes, decrees, judgments, directives, orders (including consent orders), and binding agreements with any Governmental
Authority in each case, relating to pollution or protection of the Environment, human health and safety (to the extent
related to exposure to Hazardous Materials), or the presence, Release of, or exposure to, Hazardous Materials, or the
generation, manufacture, processing, distribution, use, treatment, storage, transport, recycling or handling of, or the
arrangement for such activities with respect to, Hazardous Materials.

 

 

 

4
To be the date the Order is approved.

 

    12

     

    

 

“Environmental Liability”
means any liability, claim, action, suit, agreement, judgment or order arising under or relating to any Environmental Law for any
damages, injunctive relief, losses, fines, penalties, fees, expenses (including reasonable fees and expenses of attorneys and consultants)
or costs, whether contingent or otherwise, including those arising from or relating to: (a) compliance or non-compliance with
any Environmental Law or permit, license or approval issued thereunder, (b) the generation, use, handling, transportation,
storage, treatment or disposal of any Hazardous Materials, (c) exposure to any Hazardous Materials, (d) the Release or
threat of Release of any Hazardous Materials or (e) any contract, agreement or other consensual arrangement pursuant to which
liability is assumed or imposed with respect to any of the foregoing.

 

“Equity Interests” means
shares of capital stock, partnership interests, membership interests in a limited liability company, beneficial interests in a
trust or other equity ownership interests in a Person, and any warrants, options or other rights entitling the holder thereof to
purchase or acquire any such equity interest (other than, prior to the date of such conversion, any Indebtedness that is convertible
into any such Equity Interests).

 

“ERISA” means
the Employee Retirement Income Security Act of 1974.

 

“ERISA Affiliate” means
any trade or business (whether or not incorporated) that, together with any Loan Party, is treated as a single employer under Section 414(b)
or 414(c) of the Code or, solely for purposes of Section 302 of ERISA and Section 412 of the Code, is treated as a single
employer under Section 414(m) or 414(o) of the Code.

 

“ERISA Event” means
(a) any “reportable event,” as defined in Section 4043(c) of ERISA or the regulations issued thereunder
with respect to a Plan (other than an event for which the 30-day notice period is waived), (b) any failure by any
Plan to satisfy the minimum funding requirements of Section 412 or 430 of the Code or Section 302 or 303 of ERISA
with respect to such Plan, in each case whether or not waived, or any failure by any Loan Party or any ERISA Affiliate to
make a required contribution to a Multiemployer Plan, (c) the filing pursuant to Section 412(c) of the Code or
Section 302(c) of ERISA of an application for a waiver of the minimum funding standard with respect to any Plan,
(d) a determination that any Plan is in “at-risk” status (as defined in Section 303(i)(4) of ERISA
or Section 430(i)(4) of the Code), (e) the incurrence by any Loan Party or any ERISA Affiliate of any liability
under Title IV of ERISA (other than PBGC premiums due but not delinquent under Section 4007 of ERISA), (f) the
receipt by any Loan Party or any ERISA Affiliate from the PBGC or a plan administrator of any notice relating to an intention
to terminate any Plan or Plans or to appoint a trustee to administer any Plan under Section 4042 of ERISA, (g) any
event or condition which constitutes grounds under Section 4042 of ERISA for the termination of, or the appointment of a
trustee to administer, any Plan or Multiemployer Plan; (h) a complete withdrawal or partial withdrawal by any Loan Party
or any ERISA Affiliate from any Plan or Multiemployer Plan, (i) the receipt by any Loan Party or any ERISA Affiliate of
any notice concerning the imposition of Withdrawal Liability, or a determination that a Multiemployer Plan is insolvent,
within the meaning of Title IV of ERISA, or in “endangered” or “critical” status, within the
meaning of Section 305 of ERISA or Section 432 of the Code, (j) a failure by any Loan Party or any ERISA
Affiliate to pay when due (after expiration of any applicable grace period) any installment payment with respect to
Withdrawal Liability, (k) the imposition of a Lien upon any Loan Party or any ERISA Affiliate pursuant to Section 430(k) of
the Code or Section 303(k) of ERISA, (l) the occurrence of a non-exempt “prohibited transaction” (as defined
in Section 4975 of the Code or Section 406 of ERISA) with respect to which any Loan Party or any ERISA Affiliate is
a “disqualified person” (within the meaning of Section 4975 of the Code) or a “party in
interest” (within the meaning of Section 406 of ERISA) or could otherwise reasonably be expected to be liable or
(m) any event with respect to any Foreign Plan which could reasonably be expected to result in liability to any Loan Party
similar to the liability that could arise with respect to an event described in clauses (a) through (l) above.

 

    13

     

    

 

“EU Bail-In Legislation Schedule”
means the EU Bail-In Legislation Schedule published by the Loan Market Association (or any successor person), as in effect from
time to time.

 

“Eurodollar,” when used
in reference to any Loan or Borrowing, refers to whether such Loan, or the Loans comprising such Borrowing, are bearing interest
at a rate determined by reference to the Adjusted LIBO Rate.

 

“Events of Default” has
the meaning set forth in Article VII.

 

“Exchange Act” means
the United States Securities Exchange Act of 1934.

 

“Excluded Deposit Account”
means (a) [reserved], (b) any Deposit Account that is a zero balance disbursement account the funds in which are used solely for
the payment of salaries and wages, (c) any Deposit Account that is a zero balance disbursement account the funds in which are used
solely for payment of medical or insurance reimbursement, workers’ compensation and similar expenses, (d) any escrow account
to the extent the creation of a security interest therein would violate any agreement with a Person other than the Parent Borrower
or a Subsidiary, and (e) any fiduciary or trust account.

 

“Excluded Property” the
collective reference to:

 

(A)            
any licenses, franchises, charters and authorizations of a Governmental Authority to the extent a security interest therein
under the Loan Documents is prohibited by or would require the consent, license or approval of any Governmental Authority (except
to the extent such prohibition or restriction is ineffective under the Uniform Commercial Code, the Order or other applicable law
notwithstanding such prohibition);

 

(B)              any
asset if the granting of a security interest under the Loan Documents in such asset would be prohibited by any (x) law,
treaty, rule or regulation (including all applicable regulations and laws regarding assignments of and security interests in,
government receivables) or a court or other Governmental Authority or would require the consent, license or approval of any
Governmental Authority (other than proceeds thereof, to the extent the assignment of such proceeds is effective under the
Uniform Commercial Code, the Order or other applicable law notwithstanding such prohibition and the assignment of such
proceeds is not prohibited by applicable law and does not require the consent, license or approval of any Governmental
Authority) or (y) contractual obligation (only to the extent such restriction is binding on such asset (i) on the Petition
Date or (ii) on the date of the acquisition thereof and not entered into in contemplation thereof) (except to the extent such
prohibition or restriction is ineffective under the Uniform Commercial Code, the Order or other applicable law
notwithstanding such prohibition);

 

    14

     

    

 

(C)            
any lease, license or other agreement to the extent that a grant of a security interest therein under the Loan Documents
would violate or invalidate such lease, license or agreement (except any such lease, license or agreement among Parent Borrower
and its wholly-owned Subsidiaries and except to the extent such prohibition or restriction is ineffective under the Uniform Commercial
Code, the Order or other applicable law notwithstanding such prohibition);

 

(D)            
Equity Interests in any Person that is not a Subsidiary, in partnerships, in joint ventures and in non-wholly owned Subsidiaries
to the extent the pledge or other granting of a security interest under the Loan Documents in such Equity Interests would be prohibited
by, or require a consent or approval of unaffiliated third parties or are not permitted under, organizational or governance documents
or shareholders’ or similar agreements of or with respect to such Person (except to the extent such prohibition or restriction
is ineffective under the Uniform Commercial Code, the Order, or other applicable law notwithstanding such prohibition);

 

(E)           
to the extent applicable law requires that a Subsidiary issue directors’ qualifying shares, nominee shares or similar
shares which are required by applicable law to be held by persons other than a Loan Party, such qualifying shares, nominee shares
or similar shares held by Persons other than a Loan Party;

 

(F)             
any United States intent-to-use application for registration of a trademark or service mark prior to the acceptance by the
United States Patent and Trademark Office of a statement of use or an amendment to allege use, to the extent and for so long as
the grant of a security interest therein would impair the validity or enforceability of, or render void or voidable or result in
the cancellation of, a Loan Party’s right, title or interest therein or any trademark or service mark registration issued
therefrom;

 

(G)            
“margin stock” within the meaning of Regulation U;

 

(H)            
Excluded Deposit Accounts; and

 

(I)               
proceeds in an amount not to exceed the Carve Out, if applicable, under the Order.

 

provided that (a) in the case of
clauses 2(y), (3) and (5), such exclusion shall not apply (i) to the extent the prohibition or restriction is ineffective
under Section 9-406, 9-407, 9-408 or 9-409 of the Uniform Commercial Code, the Bankruptcy Code or other applicable law or
(ii) to proceeds of the assets referred to in such clause, the assignment of which is expressly deemed effective under
Section 9-406, 9-407, 9-408 or 9-409 of the Uniform Commercial Code, the Bankruptcy Code or other applicable law and (b)
assets described above shall no longer be “Excluded Property” upon termination of the applicable prohibition or
restriction described above that caused such assets to be treated as “Excluded Property”.

 

    15

     

    

 

 

“Excluded Subsidiary”
means (a) [reserved], (b) any Foreign Subsidiary of the Parent Borrower, (c) any Subsidiary that is a direct or
indirect Subsidiary of a Foreign Subsidiary of the Parent Borrower that is a CFC, (d) any CFC Holdco, (e) any Subsidiary
that is prohibited or restricted by applicable law, rule or regulation or contractual obligation in existence on the Petition Date
from providing a Guarantee of the Loan Document Obligations (solely for so long as such prohibition or restriction remains in existence)
or if such Guarantee would require governmental (including regulatory) consent, approval, license or authorization unless such
consent, approval, license or authorization has been received (but without obligation to seek the same), (f) [reserved], (g) [reserved],
(h) [reserved], and (i) any other Restricted Subsidiary with respect to which, in the reasonable judgment of the Required
Lenders (confirmed in writing by notice to the Parent Borrower), the cost or other consequences of becoming a Guarantor shall be
excessive in view of the benefits to be obtained by the Lenders therefrom. In no event shall (i) the Subsidiary Borrower be an
Excluded Subsidiary or (ii) any Subsidiary of the Parent Borrower that is a “Subsidiary Loan Party” (under and as defined
in the ABL Credit Agreement to the extent applicable) or that is otherwise a guarantor of, or has otherwise provided security for,
the obligations under the ABL Credit Agreement(to the extent applicable) be an Excluded Subsidiary.

 

“Excluded Taxes” means
any of the following Taxes imposed on or with respect to a Recipient or required to be withheld or deducted from a payment to a
Recipient, (a) Taxes imposed on or measured by such Recipient’s net income (however denominated), franchise Taxes, and
branch profits Taxes, in each case, (i) imposed by a jurisdiction as a result of such Recipient being organized under the laws
of, or having its principal office or, in the case of any Lender, its applicable lending office located in, such jurisdiction (or
any political subdivision thereof) or (ii) that are Other Connection Taxes, (b) in the case of a Lender, U.S. federal withholding
Taxes imposed on amounts payable to or for the account of such Lender with respect to an applicable interest in a Loan or Commitment
pursuant to a law in effect on the date on which (i) such Lender acquires such interest in the applicable Loan or Commitment
(other than an assignee pursuant to an assignment request by the Borrowers under Section 2.17(b)) or (ii) such Lender
changes its lending office, except in each case to the extent that, pursuant to Section 2.15, amounts with respect to such
Taxes were payable either to such Lender’s assignor immediately before such Lender acquired the applicable interest in such
Loan or Commitment or to such Lender immediately before it changed its lending office, (c) any Taxes attributable to a Lender’s
failure to comply with Section 2.15(e) and (d) any U.S. federal withholding Taxes imposed under FATCA.

 

“Exit Conversion” has
the meaning set forth in Section 2.22.

 

“Exit
Facility Agreement” means the credit agreement that is approved by the Confirmation Order and entered into on the
Conversion Date consistent in all material respects with the terms set forth in the Exit Facility Term Sheet and any related
schedules and exhibits attached thereto; provided, that such credit agreement shall have been made available to the
Administrative Agent and all Lenders; provided, further, that upon the satisfaction of waiver of the conditions contemplated
by Section 2.22, each Lender hereunder that is a Lender on the Conversion Date hereby authorizes the Administrative Agent to
use its executed signature page to this Agreement as an executed signature page to the Exit Facility Agreement without any
further action on the part of any such Lender or any other Person.

 

    16

     

    

 

“Exit Facility Term Sheet”
means the term sheet attached as Exhibit G hereto, as amended, supplemented or otherwise modified from time to time in accordance
with the terms of this Agreement

 

“FATCA” means Sections 1471
through 1474 of the Code, as of the date of this Agreement (or any amended or successor version that is substantively comparable
and not materially more onerous to comply with), any current or future Treasury regulations or other official administrative interpretations
thereof, any agreements entered into pursuant to current Section 1471(b) of the Code (or any amended or successor version
described above), and any fiscal or regulatory legislation, rules or practices adopted pursuant to any intergovernmental agreement
between a non-U.S. jurisdiction and the United States of America.

 

“Federal Funds Effective Rate”
means, for any day, the weighted average (rounded upwards, if necessary, to the next 1/100 of 1%) of the rates on overnight Federal
funds transactions with members of the Federal Reserve System, as published on the next succeeding Business Day by the Federal
Reserve Bank of New York, or, if such rate is not so published for any day that is a Business Day, the average (rounded upwards,
if necessary, to the next 1/100 of 1%) of the quotations for such day for such transactions received by the Administrative Agent
from three Federal funds brokers of recognized standing selected by it.

 

“Financial Officer” means,
with respect to any Person, the chief financial officer, principal accounting officer, treasurer, assistant treasurer, chief restructuring
officer or controller of such Person.

 

“Foreign Lender” means
a Lender that is not a U.S. Person.

 

“Foreign Plan” means
any defined benefit pension plan, benefit plan, fund (including any superannuation fund) or other similar program that, under the
requirements of law of any jurisdiction other than the United States, is required to be funded through a trust or other funding
vehicle (other than a trust or funding vehicle or any of the foregoing sponsored or maintained exclusively by a Governmental Authority)
and is directly sponsored and maintained by a Loan Party primarily for the benefit of its employees who are employed and residing
outside the United States.

 

“Foreign Subsidiary”
means any Subsidiary of the Parent Borrower, other than a Domestic Subsidiary.

 

“Funding Date” means
the date on which the conditions specified in Section 4.02 are satisfied (or waived in accordance with Section 9.02).

 

“GAAP” means generally
accepted accounting principles in the United States of America, applied in accordance with the consistency requirements thereof.

 

“Governmental Authority”
means the government of the United States of America, any other nation or any political subdivision thereof, whether state, local,
county, provincial or otherwise, and any agency, authority, instrumentality, regulatory body, court, central bank or other entity
exercising executive, legislative, judicial, taxing, regulatory or administrative powers or functions of or pertaining to government
(including any supra-national body exercising such powers or functions, such as the European Union or the European Central Bank).

 

    17

     

    

 

“GS Bank” means Goldman
Sachs Bank USA, in its individual capacity, and its successors.

 

“Guarantee” of or by
any Person (the “guarantor”) means any obligation, contingent or otherwise, of the guarantor guaranteeing or having
the economic effect of guaranteeing any Indebtedness or other obligation of any other Person (the “primary obligor”)
in any manner, whether directly or indirectly, and including any obligation of the guarantor, direct or indirect, (a) to purchase
or pay (or advance or supply funds for the purchase or payment of) such Indebtedness or other obligation or to purchase (or to
advance or supply funds for the purchase of) any security for the payment thereof, (b) to purchase or lease property, securities
or services for the purpose of assuring the owner of such Indebtedness or other obligation of the payment thereof, (c) to
maintain working capital, equity capital or any other financial statement condition or liquidity of the primary obligor so as to
enable the primary obligor to pay such Indebtedness or other obligation or (d) as an account party in respect of any letter
of credit or letter of guaranty issued to support such Indebtedness or other obligation; provided that the term “Guarantee”
shall not include endorsements for collection or deposit in the ordinary course of business. The amount, as of any date of determination,
of any Guarantee shall be the principal amount outstanding on such date of Indebtedness or other obligation guaranteed thereby
(or, in the case of (i) any Guarantee the terms of which limit the monetary exposure of the guarantor or (ii) any Guarantee
of an obligation that does not have a principal amount, the maximum monetary exposure as of such date of the guarantor under such
Guarantee (as determined, in the case of clause (i), pursuant to such terms or, in the case of clause (ii), reasonably
and in good faith by a Financial Officer of the Parent Borrower)).

 

“Guarantors” means each
Subsidiary of the Parent Borrower (other than any Excluded Subsidiary), in each case, until any such Subsidiary (other than the
Subsidiary Borrower) is released as a Guarantor in accordance with the Loan Documents.

 

“Hazardous Materials”
means any chemical, material, substance or waste that is prohibited, limited or regulated by or pursuant to any applicable Environmental
Law, including, without limitation, any petroleum products or byproducts and all other hydrocarbons, coal ash, radon gas, asbestos-containing
materials, urea formaldehyde foam insulation, polychlorinated biphenyls, chlorofluorocarbons and all other ozone-depleting substances
or mold.

 

    18

     

    

 

“Indebtedness”
of any Person means, without duplication, (a) all obligations of such Person for borrowed money or with respect to
deposits or advances of any kind, (b) all obligations of such Person evidenced by bonds, debentures, notes or similar
instruments, (c) all obligations of such Person under conditional sale or other title retention agreements relating to
property acquired by such Person (excluding trade accounts payable incurred in the ordinary course of business), (d) all
obligations of such Person in respect of the deferred purchase price of property or services (excluding (i) current
accounts payable incurred in the ordinary course of business, (ii) deferred compensation payable to directors, officers
or employees of the Parent Borrower or any Restricted Subsidiary and (iii) any purchase price adjustment or earnout
incurred in connection with an acquisition, except to the extent that the amount payable pursuant to such purchase price
adjustment or earnout is, or becomes, a liability on the balance sheet of the Parent Borrower in accordance with GAAP),
(e) all Capital Lease Obligations and Synthetic Lease Obligations of such Person, (f) all obligations, contingent
or otherwise, of such Person as an account party in respect of letters of credit and letters of guaranty, (g) all
obligations, contingent or otherwise, of such Person in respect of bankers’ acceptances, (h) all Indebtedness of others
secured by (or for which the holder of such Indebtedness has an existing right, contingent or otherwise, to be secured by)
any Lien on property owned or acquired by such Person, whether or not the Indebtedness secured thereby has been assumed by
such Person (but only to the extent of the lesser of (x) the amount of such Indebtedness and (y) the fair market
value of such property, if such Indebtedness has not been assumed by such Person), (i) net payments that would have to be
made in the event of an early termination in respect of any outstanding Swap Agreement, (j) all obligations of such Persons
with respect to the redemption, repayment or repurchase of Disqualified Stock (excluding accrued dividends) and (k) all
Guarantees by such Person of Indebtedness of others. The Indebtedness of any Person shall include the Indebtedness of any
other Person (including any partnership in which such Person is a general partner) to the extent such Person is liable
therefor by contract, as a matter of law or otherwise as a result of such Person’s ownership interest in or other
relationship with such other Person, except to the extent the terms of such Indebtedness provide that such Person is not
liable therefor. It is acknowledged and agreed that private label and corporate letters of credit issued by the Parent
Borrower or any Subsidiary for the making of payment for the purchase of inventory in the ordinary course of business (and in
respect of which no financial institution is an issuer thereof or has any disbursement obligations thereunder) do not
constitute Indebtedness of the Parent Borrower or such Subsidiary.

 

“Indemnified Taxes” means
(a) all Taxes, other than Excluded Taxes, imposed on or with respect to any payment made by or on account of any obligation
of any Loan Party under any Loan Document and (b) to the extent not otherwise described in clause (a), all Other Taxes.

 

“Indemnitee” has the
meaning set forth in Section 9.03(b).

 

“Information” has the
meaning set forth in Section 9.12.

 

“Intercreditor Acknowledgment”
means that certain Acknowledgment and Agreement, dated as of the Funding Date, by and among the Administrative Agent, the Pre-Petition
Agent, the ABL Agent and the Pre-Petition ABL Agent, and acknowledged by the Loan Parties.

 

“Intercreditor Agreement”
means the Intercreditor Agreement, dated as of August 21, 2015, among the Pre-Petition Agent, as term collateral agent, the Pre-Petition
ABL Agent, as ABL collateral agent, and acknowledged by the Loan Parties, as may be supplemented and modified by the Intercreditor
Acknowledgment, and as may be further amended, amended and restated, supplemented or otherwise modified and in effect from time
to time.

 

“Interest Election Request”
means a request by the Borrowers to convert or continue a Borrowing in accordance with Section 2.05, which shall be, in the
case of any such written request, in the form of Exhibit E or any other form approved by the Administrative Agent.

 

    19

     

    

 

“Interest Payment Date”
means (a) with respect to any ABR Loan, the first Business Day of each calendar quarter and the Maturity Date applicable to
such ABR Loan and (b) with respect to any Eurodollar Loan, the last day of the Interest Period applicable to the Borrowing
of which such Loan is a part and, in the case of a Eurodollar Borrowing with an Interest Period of more than three months’
duration, such day or days prior to the last day of such Interest Period as shall occur at intervals of three months’ duration
after the first day of such Interest Period and the Maturity Date applicable to such Eurodollar Loan.

 

“Interest Period” means,
with respect to any Eurodollar Borrowing, the period commencing on the date of such Borrowing and ending on the numerically corresponding
day in the calendar month that is one, two, three or six months (or, with the consent of each Lender participating therein, twelve
months) thereafter, as the Borrowers may elect; provided that (a) if any Interest Period would end on a day other than
a Business Day, such Interest Period shall be extended to the next succeeding Business Day unless such next succeeding Business
Day would fall in the next calendar month, in which case such Interest Period shall end on the next preceding Business Day, and
(b) any Interest Period that commences on the last Business Day of a calendar month (or on a day for which there is no numerically
corresponding day in the last calendar month of such Interest Period) shall end on the last Business Day of the last calendar month
of such Interest Period. For purposes hereof, the date of a Borrowing initially shall be the date on which such Borrowing is made
and thereafter shall be the effective date of the most recent conversion or continuation of such Borrowing. For the avoidance of
doubt, no Interest Period shall extend beyond the Maturity Date.

 

“Interpolated Screen Rate”
means, with respect to any Eurodollar Borrowing for any Interest Period, a rate per annum which results from interpolating
on a linear basis between (a) the Screen Rate for the longest maturity for which a Screen Rate is available that is shorter
than such Interest Period and (b) the Screen Rate for the shortest maturity for which a Screen Rate is available that is longer
than such Interest Period, in each case at 11:00 a.m., London time, two Business Days prior to the commencement of such Interest
Period.

 

“Investment” means, with
respect to a specified Person, any direct or indirect acquisition or investment by such Person in any other Person, in the form
of (a) the purchase or other acquisition (including without limitation by merger or otherwise) of Equity Interests or debt or other
securities of another Person, (b) a loan, advance or capital contribution to, Guarantee or assumption of Indebtedness of, or purchase
or other acquisition of any other debt or equity participation or interest in, another Person, including any partnership or joint
venture interest in such other Person or (c) the purchase or other acquisition (in one transaction or a series of transactions,
including without limitation by merger or otherwise) of all or substantially all of the property and assets or business of another
Person or assets constituting a business unit, division, product or line of business of such Person. For purposes of covenant compliance,
the amount of any Investment at any time shall be the amount actually invested (measured at the time made), without adjustment
for subsequent changes in the value of such Investment, net of any cash return representing a return of capital with respect to
such Investment.

 

“IRS” means the United
States Internal Revenue Service.

 

    20

     

    

 

“Lenders” means the Persons
listed on Schedule 2.01 and any other Person that shall have become a party hereto pursuant to an Assignment and Assumption,
other than any such Person that shall have ceased to be a party hereto pursuant to an Assignment and Assumption.

 

“LIBO Rate” means, with
respect to any Eurodollar Borrowing for any Interest Period, a rate per annum equal to the London interbank offered rate
as administered by the ICE Benchmark Administration (or any other Person that takes over the administration of such rate) for deposits
in dollars (for delivery on the first day of such Interest Period) with a term equivalent to such Interest Period as displayed
on the applicable Bloomberg screen page that displays such rate (or, in the event such rate does not appear the applicable Bloomberg
screen page, on the appropriate page of such other information service that publishes such rate as shall be selected by the Administrative
Agent from time to time in its reasonable discretion) at 11:00 a.m., London time, two Business Days prior to the commencement
of such Interest Period (the “Screen Rate”). If no Screen Rate shall be available for a particular Interest
Period but Screen Rates shall be available for maturities both longer and shorter than such Interest Period, then the LIBO Rate
for such Interest Period shall be the Interpolated Screen Rate. Notwithstanding the foregoing, if the LIBO Rate, determined as
provided above in this definition, would be less than zero, the LIBO Rate shall for all purposes of this Agreement be zero.

 

“Lien” means, with respect
to any asset, (a) any mortgage, deed of trust, lien, pledge, hypothecation, charge, security interest or other encumbrance
in, on or of such asset and (b) the interest of a vendor or a lessor under any conditional sale agreement, capital lease or
title retention agreement (or any financing lease having substantially the same economic effect as any of the foregoing) relating
to such asset.

 

“Liquidity” means, at
any time, the sum of, without duplication, (a) Availability (as defined in the Pre-Petition ABL Credit Agreement as in effect on
the date hereof or, to the extent applicable, the ABL Credit Agreement as in effect on the Funding Date), (b) unrestricted cash
and cash equivalents of the Parent Borrower and its Restricted Subsidiaries that would be reflected on a consolidated balance sheet
of the Parent Borrower in accordance with GAAP on such date (other than the cash proceeds of any Indebtedness being incurred on
such date) and (c) cash and cash equivalents of the Parent Borrower and its Restricted Subsidiaries (excluding, for the avoidance
of doubt, Eligible Pledged Cash (as defined in the Pre-Petition ABL Credit Agreement as in effect on the date hereof or, to the
extent applicable, the ABL Credit Agreement, as in effect on the Funding Date) to the extent duplicative) that are restricted in
favor of the Administrative Agent or any Lender (or, the Pre-Petition ABL Agent or, to the extent applicable, the ABL Agent, for
the benefit of the Administrative Agent pursuant to the Intercreditor Agreement) (which cash and cash equivalents may also secure
other Indebtedness together with the Loan Document Obligations).

 

“Loan
Document Obligations” means all unpaid principal of and accrued and unpaid interest on the Loans, all accrued and
unpaid fees, premiums (including the Redemption Premium, if any) and all expenses, reimbursements, indemnities and other
obligations of the Loan Parties to any Lender, the Administrative Agent, or any Indemnitee arising under the Loan Documents,
whether direct or indirect (including those acquired by assumption), absolute or contingent, due or to become due, now
existing or hereafter arising and including interest, fees, premiums (including the Redemption Premium, if any), costs,
expenses and indemnities that accrue after the commencement by or against any Loan Party or any Affiliate thereof of any
proceeding under any bankruptcy or insolvency laws naming such Person as the debtor in such proceeding, regardless of whether
such interest, fees, premiums (including the Redemption Premium, if any), costs, expenses and indemnities are allowed claims
in such proceeding.

 

    21

     

    

 

“Loan Documents” means
this Agreement, the Commitment Letter, the Collateral Agreement, the Control Agreement with respect to the DIP Accounts, the other
Collateral Documents, the Intercreditor Agreement, the Intercreditor Acknowledgment, the Administrative Agent Fee Letter, the Order
and, except for purposes of Section 9.02, any promissory notes delivered pursuant to Section 2.07(e).

 

“Loan Parties” means
the Borrowers and the Guarantors.

 

“Loans” means the loans
made by the Lenders to the Borrowers pursuant to this Agreement.

 

“Luxembourg IP Subsidiary”
means each of (i) AnnTaylor Loft GP Lux S.à.rl. and (ii) AnnTaylor Loft Borrower Lux SCS.

 

“Material Adverse Effect”
means a material adverse effect on (a) the results of operations, assets, business or financial condition of the Parent Borrower
and the Restricted Subsidiaries, taken as a whole, excluding in any event (i) the effect of filing the Cases, the events and conditions
leading up to and customarily resulting from the commencement and continuation of the Cases, the effects thereof and any action
required to be taken under the Loan Documents or the Order and the Cases themselves, (ii) any matters publicly disclosed prior
to the filing of the Cases and (iii) any matters or transactions disclosed, contemplated or required to be taken in any “first
day” or “second day” orders, motions related thereto or in any supporting declarations thereof, (b) the
ability of the Loan Parties to perform any of their monetary obligations under the Loan Documents to which it is a party or (c) the
rights of or benefits available to the Administrative Agent or the Lenders under the Loan Documents; provided that in determining
whether a “material adverse effect” has occurred or exists under clause (a) hereof, the impacts of COVID-19 on the
results of operations, assets, business or financial condition of the Parent Borrower and the Restricted Subsidiaries will be disregarded
(provided that this exception shall not apply to the extent that it is materially disproportionately adverse to the Parent Borrower
and its Restricted Subsidiaries, taken as a whole, as compared to other companies in the same industry in which the Parent Borrower
and its Restricted Subsidiaries operate).

 

“Material
Indebtedness” means Indebtedness (other than the Loans and Guarantees under the Loan Documents), or obligations in
respect of one or more Swap Agreements, of any one or more of the Parent Borrower and the Subsidiaries in an aggregate
principal amount exceeding $10,000,000. For purposes of determining Material Indebtedness, the “principal amount”
of the obligations of the Parent Borrower or any Restricted Subsidiary in respect of any Swap Agreement at any time shall be
the maximum aggregate amount (giving effect to any netting agreements) that the Parent Borrower or such Restricted Subsidiary
would be required to pay if such Swap Agreement were terminated at such time.

 

    22

     

    

 

“Maturity Date” means
the date that is the earliest of (i) six months after the Effective Date, (ii) the date of the substantial consummation (as defined
in Section 1101(2) of the Bankruptcy Code) of an Acceptable Plan, (iii) the date the Court converts any of the Cases to a Chapter
7 case, (iv) the date the Court dismisses any of the Cases, (v) the date on which the Loan Parties consummate a sale of all
or substantially all of the assets of the Loan Parties pursuant to section 363 of the Bankruptcy Code or otherwise, and (vi) such
earlier date on which the Loans shall become due and payable by acceleration or otherwise in accordance with the terms of this
Agreement and the other Loan Documents.

 

“Maximum Rate” has the
meaning set forth in Section 9.15.

 

“MNPI” means material
information concerning the Parent Borrower, any Subsidiary or any Affiliate of any of the foregoing or their securities that has
not been disseminated in a manner making it available to investors generally, within the meaning of Regulation FD under the Securities
Act and the Exchange Act. For purposes of this definition, “material information” means information concerning the
Parent Borrower or its Subsidiaries, or any of their respective securities, that would reasonably be expected to be material for
purposes of the United States federal and state securities laws.

 

“Moody’s” means
Moody’s Investors Service, Inc., and any successor to its rating agency business.

 

“Multiemployer Plan”
means a “multiemployer plan” as defined in Section 4001(a)(3) of ERISA that is or was, during the past six years, maintained
or sponsored by any Loan Party or ERISA Affiliate or to which any Loan Party or any ERISA Affiliate makes or is obligated to make
contributions, or during the past six years has made or been obligated to make contributions, in each case, if a liability to a
Loan Party remains outstanding.

 

“Net
Proceeds” means, with respect to any event, (a) the cash (which term, for purposes of this definition, shall
include Cash Equivalents) proceeds (including, in the case of any casualty, condemnation or similar proceeding, insurance,
condemnation or similar proceeds) received in respect of such event, including any cash received in respect of any noncash
proceeds, but only as and when received, net of (b) the sum, without duplication, of (i) all actual fees and
out-of-pocket expenses paid in connection with such event by the Parent Borrower and the Restricted Subsidiaries to Persons
that are not Affiliates of the Parent Borrower or any Restricted Subsidiary, (ii) in the case of a sale, transfer or
other disposition (including pursuant to a Sale/Leaseback Transaction or a casualty or a condemnation or similar proceeding)
of an asset, the amount of all payments required to be made by the Parent Borrower and the Restricted Subsidiaries as a
result of such event to repay Indebtedness (other than Loans and Indebtedness under the ABL Credit Agreement) secured by such
asset on a basis prior to the Liens, if any, on such assets securing the Loan Document Obligations and (iii) the amount
of all taxes paid (or reasonably estimated to be payable) by the Parent Borrower and the Restricted Subsidiaries, and the
amount of any reserves established by the Parent Borrower and the Restricted Subsidiaries in accordance with GAAP to fund
purchase price adjustment, indemnification and similar contingent liabilities (other than any earnout obligations) reasonably
estimated to be payable, in each case during the year that such event occurred or the next succeeding year and that are
directly attributable to the occurrence of such event (as determined reasonably and in good faith by the chief financial
officer of the Parent Borrower). For purposes of this definition, in the event any contingent liability reserve established
with respect to any event as described in clause (b)(iii) above shall be reduced, the amount of such reduction shall,
except to the extent such reduction is made as a result of a payment having been made in respect of the contingent
liabilities with respect to which such reserve has been established, be deemed to be receipt, on the date of such reduction,
of cash proceeds in respect of such event.

 

    23

     

    

 

“New Money Commitment”
means as to each Lender, its obligation to make a New Money Loan to Borrowers hereunder, expressed as an amount representing the
maximum principal amount of New Money Loans to be made by such Lender under this Agreement, as such commitment may be reduced or
increased from time to time pursuant to assignments by or to such Lender pursuant to an Assignment and Assumption substantially
in the form of Exhibit A hereto. The amount of each Lender’s New Money Commitment is set forth on Schedule 2.01 under
the caption “New Money Loans” or, otherwise, in the Assignment and Assumption pursuant to which such Lender shall have
assumed its New Money Commitment, as the case may be. The aggregate amount of the New Money Commitments on the date hereof is $150
million.

 

“New Money Loans” means
the loans made pursuant to Section 2.01(a).

 

“OFAC” means the United
States Treasury Department Office of Foreign Assets Control.

 

“Order” means the order
of the Court entered in the Cases after a final hearing under Bankruptcy Rule 4001(c)(2) or such other procedures as approved by
the Court, which order shall be satisfactory in form and substance to the Required Lenders, and from which no appeal or motion
to reconsider has been timely filed, or if timely filed, such appeal or motion to reconsider has been dismissed or denied with
no further appeal and the time for filing such appeal has passed (unless Administrative Agent waives such requirement), together
with all extensions, modifications, and amendments thereto, in form and substance satisfactory to the Required Lenders, which,
among other matters but not by way of limitation, authorizes the Loan Parties to obtain credit, incur (or guaranty) Indebtedness,
and grant Liens under this Agreement and the other Loan Documents, as the case may be, and provides for the super-priority of the
Administrative Agent’s and the Lenders’ claims.

 

“Other Connection Taxes”
means, with respect to any Recipient, Taxes imposed as a result of a present or former connection between such Recipient and the
jurisdiction imposing such Tax (other than connections arising from such Recipient having executed, delivered, become a party to,
performed its obligations under, received payments under, received or perfected a security interest under , engaged in any other
transaction pursuant to or enforced any Loan Document, or sold or assigned an interest in any Loan Document).

 

“Other
Taxes” means all present or future stamp, court or documentary, intangible, recording, filing or similar Taxes that
arise from any payment made under any Loan Document or from the execution, delivery, performance, enforcement or registration
of, from the receipt or perfection of a security interest under, or otherwise with respect to, any Loan Document, excluding
any such Taxes that are Other Connection Taxes imposed with respect to an assignment (other than an assignment made pursuant
to Section 2.17).

 

    24

     

    

 

“Parent Borrower” has
the meaning set forth in the introductory paragraph hereto.

 

“Participant Register”
has the meaning set forth in Section 9.04(c)(ii).

 

“Participants” has the
meaning set forth in Section 9.04(c)(i).

 

“Patriot Act” means the
Uniting and Strengthening America by Providing Appropriate Tools Required to Intercept and Obstruct Terrorism Act of 2001 (Title III
of Pub.L. No. 107-56 (signed into law October 26, 2001)).

 

“PBGC” means the Pension
Benefit Guaranty Corporation referred to and defined in ERISA.

 

“Permitted Encumbrances”
means:

 

(a)              
Liens imposed by law for Taxes that are not yet delinquent or are being contested in compliance with Section 5.06;

 

(b)              
carriers’, warehousemen’s, mechanics’, materialmen’s, repairmen’s and other like Liens imposed
by law (other than any Lien imposed pursuant to Section 430(k) of the Code or Section 303(k) of ERISA or a violation
of Section 436 of the Code), arising in the ordinary course of business and securing obligations that are not overdue by more
than 30 days or are being contested in compliance with Section 5.06;

 

(c)              
pledges and deposits made (i) in the ordinary course of business in compliance with workers’ compensation, unemployment
insurance and other social security laws or regulations and (ii) in respect of letters of credit, bank guarantees or similar
instruments issued for the account of the Parent Borrower or any Restricted Subsidiary in the ordinary course of business supporting
obligations of the type set forth in clause (i) above or reimbursement or indemnification obligations to insurance carriers
providing property, casualty or liability insurance to the Parent Borrower and its Restricted Subsidiaries;

 

(d)              
pledges and deposits made to secure the performance of bids, trade contracts (other than Indebtedness for borrowed money),
leases (other than Capital Lease Obligations), statutory obligations, surety and appeal bonds, performance bonds and other obligations
of a like nature, in each case in the ordinary course of business;

 

(e)              
judgment liens in respect of judgments that do not constitute an Event of Default under clause (k) of Article VII;

 

(f)                easements,
zoning restrictions, rights-of-way, site plan agreements, development agreements, operating agreements, cross-easement
agreements, reciprocal easement agreements and other encumbrances and exceptions to title on real property that do not secure
any monetary obligations and do not materially detract from the value of the affected property or materially interfere with
the ordinary conduct of business of the Parent Borrower or any Restricted Subsidiary or the ordinary operation of such real
property;

 

    25

     

    

 

(g)              
customary rights of setoff upon deposits of cash in favor of banks and other depository institutions and Liens of a collecting
bank arising under the UCC in respect of payment items in the course of collection;

 

(h)              
Liens arising from precautionary UCC financing statement filings (or similar filings under applicable law) regarding operating
leases or consignments, in each case arising in the ordinary course of business;

 

(i)                
Liens representing any interest or title of a licensor, lessor or sublicensor or sublessor, or a licensee, lessee or sublicensee
or sublessee, in the property subject to any lease (other than Capital Lease Obligations), license or sublicense or concession
agreement permitted by this Agreement;

 

(j)                
Liens arising in the ordinary course of business in favor of custom and forwarding agents and similar Persons in respect
of imported goods and merchandise in the custody of such Persons;

 

(k)              
Liens in favor of customs and revenue authorities arising as a matter of law to secure payment of customs duties in connection
with the importation of goods;

 

(l)                
Liens or rights of setoff against credit balances of the Parent Borrower or any Restricted Subsidiary with credit card issuers
or credit card processors to secure obligations of the Parent Borrower or such Restricted Subsidiary, as the case may be, to any
such credit card issuer or credit card processor incurred in the ordinary course of business as a result of fees and chargebacks;

 

(m)            
Liens on Equity Interests of any joint venture (i) securing obligations of such joint venture or (ii) pursuant to the relevant
joint venture agreement, in each case in existence on or prior to the Petition Date; and

 

(n)              
other Liens that are contractual rights of set-off;

 

provided that the term “Permitted Encumbrances”
shall not include any Lien securing Indebtedness, other than Liens referred to in clause (c) above securing letters of credit,
bank guarantees or similar instruments.

 

“Permitted Variance”
means, any variance that does not violate Section 6.12(b).

 

“Person” or “person”
means any natural person, corporation, limited liability company, trust, joint venture, association, company, partnership, Governmental
Authority or other entity.

 

“Petition Date” has the
meaning set forth in the Recitals.

 

    26

     

    

 

“Plan” means any “employee
pension benefit plan,” as defined in Section 3(2) of ERISA (other than a Multiemployer Plan or Foreign Plan), (a) that
is subject to the provisions of Title IV of ERISA or Section 412 of the Code or Section 302 of ERISA, and (b) (i)
in respect of which any Loan Party or any ERISA Affiliate is (or, if such plan were terminated, would under Section 4069 of
ERISA be deemed to be) an “employer” as defined in Section 3(5) of ERISA and/or (ii) that is or was, within the
past six years, maintained or sponsored by any Loan Party or ERISA Affiliate or to which any Loan Party or ERISA Affiliate makes
or is obligated to make contributions, or during the past six years, has made or been obligated to make contributions, in each
case of (ii) if a liability to a Loan Party remains outstanding.

 

“Plan of Reorganization”
means a plan of reorganization with respect to the Loan Parties and their Subsidiaries pursuant to the Cases.

 

“Platform” has the meaning
set forth in Section 9.01(d).

 

“Pre-Petition ABL Agent”
means JPMorgan Chase Bank, N.A., as administrative agent under the Pre-Petition ABL Credit Agreement.

 

“Pre-Petition ABL Credit Agreement”
means the Amended and Restated ABL Credit Agreement, dated as of August 21, 2015, among the Parent Borrower, the borrowing subsidiaries
party thereto, the other loan parties party thereto, the lenders party thereto and the Pre-Petition ABL Agent, as amended, restated,
supplemented, modified, renewed, refunded, replaced (whether at maturity or thereafter) or refinanced from time to time in one
or more agreements (in each case with the same or new agents, lenders or institutional investors), including any agreement adding
or changing the borrower or any guarantor or extending the maturity thereof or otherwise restructuring all or any portion of the
Indebtedness thereunder or increasing the amount loaned or issued thereunder or altering the maturity thereof, in each case, through
the Petition Date.

 

“Pre-Petition Agent”
means GS Bank, in its capacity as administrative agent under any of the Pre-Petition Loan Documents.

 

“Pre-Petition Credit Agreement”
has the meaning assigned to such term in the Recitals.

 

“Pre-Petition Indebtedness”
means the Indebtedness of the Loan Parties existing prior to the Petition Date and set forth on Schedule 6.01.

 

“Pre-Petition Lenders”
means the lenders under the Pre-Petition Credit Agreement.

 

“Pre-Petition Lender Obligations”
means all “Loan Document Obligations” as defined in the Pre-Petition Credit Agreement.

 

“Pre-Petition Loan Documents”
means the “Loan Documents” as defined in the Pre-Petition Credit Agreement.

 

“Pre-Petition Loans”
means Pre-Petition Lender Obligations in respect of principal of “Loans” under, and as defined in, the Pre-Petition
Credit Agreement and interest, expenses, fees, premium and other sums payable in respect thereof under the Pre-Petition Loan Documents.

 

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“Prepayment Event” means:

 

(a)              
any Asset Sale of the type described in clauses (j) and (k) of Section 6.05 unless such disposition results in aggregate
Net Proceeds not exceeding $500,000 for any individual transactions or series of related transactions;

 

(b)              
any casualty or other insured damage to, or any taking under power of eminent domain or by condemnation or similar proceeding
of, any asset of the Parent Borrower or any Restricted Subsidiary resulting in aggregate Net Proceeds exceeding $500,000; or

 

(c)              
the incurrence by the Parent Borrower or any Restricted Subsidiary of any Indebtedness, other than any Indebtedness permitted
to be incurred by Section 6.01.

 

“Prime Rate” means the
rate of interest per annum published by The Wall Street Journal, Money Rates Section as the “Prime Rate”, as in effect
from time to time. Each change in the Prime Rate shall be effective from and including the date such change is published. If the
Wall Street Journal ceases publication of such rate, in such other nationally recognized financial publication of general circulation
as the Administrative Agent may designate based on the Administrative Agent’s reasonable determination that the rate so published
is comparable to the “Prime” rate published in the Wall Street Journal.

 

“Private Side Lender Representatives”
means, with respect to any Lender, representatives of such Lender that are not Public Side Lender Representatives.

 

“Public Side Lender Representatives”
means, with respect to any Lender, representatives of such Lender that do not wish to receive MNPI.

 

“Recipient” means the
Administrative Agent, any Lender or any other recipient of any payment to be made by or on account of any obligation of any Loan
Party hereunder or under any other Loan Document.

 

“Redemption Premium”
has the meaning set forth in Section 2.09(e).

 

“Register” has the meaning
set forth in Section 9.04(b)(v).

 

“Related Lender” means
with respect to any Person, an Affiliate or any fund, account or investment vehicle that is controlled, managed, advised or sub-advised
by such Person, an Affiliate or the same investment manager, advisor or sub-advisor as such Person or an Affiliate of such investment
manager, advisor or sub-advisor.

 

“Related Parties” means,
with respect to any specified Person, such Person’s Affiliates and the directors, officers, partners, members, trustees,
employees, agents, administrators, managers, representatives and advisors of such Person and of such Person’s Affiliates.

 

“Release” means any release,
spill, emission, leaking, dumping, injection, pouring, deposit, disposal, discharge, dispersal, leaching or migration into or through
the Environment or within or upon any building, structure, facility or fixture.

 

    28

     

    

 

“Required Lenders” means,
at any time, Lenders having aggregate Loans (or, prior to the borrowing hereunder on the date hereof, Commitments) representing
more than 50.01% of the aggregate principal amount of the Loans (or, prior to the borrowing hereunder on the date hereof, the aggregate
Commitments) at such time.

 

“Required Milestones”
means the covenants set forth on Schedule 5.11.

 

“Restricted Payment”
means any dividend or other distribution (whether in cash, securities or other property) with respect to any Equity Interests in
the Parent Borrower or any Restricted Subsidiary, or any payment or distribution (whether in cash, securities or other property),
including any sinking fund or similar deposit, on account of the purchase, redemption, retirement, acquisition, exchange, conversion,
cancellation or termination of any Equity Interests in the Parent Borrower or any Restricted Subsidiary.

 

“Restricted Subsidiary”
means any Subsidiary of the Parent Borrower.

 

“Restructuring Support Agreement”
or “RSA” means that certain Restructuring Support Agreement, dated as of July 23, 2020, executed and delivered
by the Loan Parties and the other parties thereto, as such agreement may be amended, supplemented or otherwise modified from time
to time in accordance with the terms thereof.

 

“Roll-up Loans” are the
loans made pursuant to Section 2.01(b).

 

“Roll-up Loans Commitment”
means, as to each Lender, its obligation to make a Loan to the Borrower pursuant to Section 2.01(b) in an aggregate principal amount
not to exceed the amount set forth opposite such Lender’s name on Schedule 2.01 (as updated from time to time within [ ]
days of the Effective Date) under the caption “Roll-up Loans Commitment”, as applicable. The aggregate amount of the
Roll-up Loans Commitment on the date hereof is $161.8 million, which amount shall (i) comprise a roll-up and refinancing of the
Prepetition Loans approved pursuant to the Order and (ii) be deemed funded by the Lenders pursuant to Section 2.01.

 

“S&P” means Standard &
Poor’s Ratings Services, a division of The McGraw-Hill Companies, Inc., and any successor to its rating agency business.

 

“Sale/Leaseback Transaction”
means an arrangement relating to property owned by the Parent Borrower or any Restricted Subsidiary whereby the Parent Borrower
or such Restricted Subsidiary sells or transfers such property to any Person and the Parent Borrower or any Restricted Subsidiary
leases such property, or other property that it intends to use for substantially the same purpose or purposes as the property sold
or transferred, from such Person or its Affiliates.

 

“Sanctioned Country”
means, at any time, a country, region or territory which is itself the subject or target of any Sanctions.

 

“Sanctioned
Person” means, at any time, (a) any Person listed in any Sanctions-related list of Designated Persons maintained by
OFAC, the U.S. Department of State, or by the United Nations Security Council, the European Union or any EU member state, (b)
any Person operating, organized or resident in a Sanctioned Country or (c) any Person owned or controlled by any Person or
Persons described in the preceding clauses (a) and (b).

 

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“Sanctions” means economic
or financial sanctions or trade embargoes imposed, administered or enforced from time to time by (a) the U.S. government, including
those administered by the Office of Foreign Assets Control of the U.S. Department of the Treasury or the U.S. Department of State,
or (b) the United Nations Security Council, the European Union or Her Majesty’s Treasury of the United Kingdom.

 

“Screen Rate” has the
meaning assigned to it in the definition of “LIBO Rate.”

 

“SEC” means the United
States Securities and Exchange Commission.

 

“Secured Parties” means
(a) the Administrative Agent, (b) [reserved], (c) the Lenders, (d) the beneficiaries of each indemnification obligation undertaken
by any Loan Party under any Loan Document and (e) the permitted successors and assigns of the foregoing.

 

“Securities Act” means
the United States Securities Act of 1933.

 

“Specified Dispositions”
means (i) the closure, sale, transfer or disposition of the Loan Parties’ or their Subsidiaries’ stores, leases, warehouses,
distribution centers and other real property (and all fixtures and equipment in each case in connection therewith), (ii) bulk sales
or other dispositions of inventory or equipment of the Loan Parties’ or their Subsidiaries’ and (iii) termination of
leases, licenses, subleases or sublicenses, in each case, in connection therewith; provided that such Specified Dispositions are
identified in writing by the Parent Borrower to the Required Lenders and agreed to by the Required Lenders, in their reasonable
discretion on or prior to the Effective Date and as may be updated, supplemented or modified from time to time, as agreed to by
the Required Lenders in their reasonable discretion.

 

“Specified Indebtedness”
means any Subordinated Indebtedness and any unsecured Indebtedness or any secured Indebtedness that is not secured on a pari passu
basis with the Loan Document Obligations; provided that, Indebtedness under the ABL Credit Agreement, to the extent applicable,
shall constitute Specified Indebtedness solely for purposes of Section 6.08(c).

 

“Statutory Reserve Rate”
means a fraction (expressed as a decimal), the numerator of which is the number one and the denominator of which is the number
one minus the aggregate of the maximum reserve percentages (including any marginal, special, emergency or supplemental reserves),
expressed as a decimal, established by the Board of Governors to which the Administrative Agent is subject for eurocurrency funding
(currently referred to as “Eurocurrency Liabilities” in Regulation D of the Board of Governors). Such reserve
percentages shall include those imposed pursuant to such Regulation D. Eurodollar Loans shall be deemed to constitute eurocurrency
funding and to be subject to such reserve requirements without benefit of or credit for proration, exemptions or offsets that may
be available from time to time to any Lender under such Regulation D or any comparable regulation. The Statutory Reserve Rate
shall be adjusted automatically on and as of the effective date of any change in any reserve percentage.

 

“Subordinated Indebtedness”
of a Person means any Indebtedness of such Person which is subordinated in right of payment to the Loan Document Obligations.

 

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“subsidiary” means, with
respect to any Person (the “parent”) at any date, (a) any Person the accounts of which would be consolidated
with those of the parent in the parent’s consolidated financial statements if such financial statements were prepared in
accordance with GAAP as of such date and (b) any other Person (i) of which Equity Interests representing more than 50%
of the equity value or more than 50% of the ordinary voting power or, in the case of a partnership, more than 50% of the general
partnership interests are, as of such date, owned, controlled or held, or (ii) that is, as of such date, otherwise Controlled,
by the parent or one or more subsidiaries of the parent or by the parent and one or more subsidiaries of the parent.

 

“Subsidiary” means any
direct or indirect subsidiary of the Parent Borrower (including, for the avoidance of doubt, the Subsidiary Borrower).

 

“Subsidiary Borrower”
has the meaning set forth in the introductory paragraph hereto.

 

“Swap Agreement” means
any agreement with respect to any swap, forward, future or derivative transaction or option or similar agreement involving, or
settled by reference to, one or more rates, currencies, commodities, equity or debt instruments or securities, or economic, financial
or pricing indices or measures of economic, financial or pricing risk or value or any similar transaction or any combination of
these transactions; provided that no phantom stock or similar plan providing for payments only on account of services provided
by current or former directors, officers, employees or consultants of the Parent Borrower or any Subsidiary shall be a Swap Agreement.

 

“Synthetic Lease” means,
as to any Person, any lease (including leases that may be terminated by the lessee at any time) of any property (whether real,
personal or mixed) (a) that is accounted for as an operating lease under GAAP and (b) in respect of which the lessee
retains or obtains ownership of the property so leased for US federal income tax purposes, other than any such lease under which
such Person is the lessor.

 

“Synthetic Lease Obligations”
means, as to any Person, an amount equal to the sum, without duplication, of (a) the obligations of such Person to pay rent
or other amounts under any Synthetic Lease which are attributable to principal and (b) the amount of any purchase price payment
under any Synthetic Lease assuming the lessee exercises the option to purchase the leased property at the end of the lease term.
For purposes of Section 6.02, a Synthetic Lease Obligation shall be deemed to be secured by a Lien on the property being leased
and such property shall be deemed to be owned by the lessee.

 

“Taxes” means all present
or future taxes, levies, imposts, duties, deductions, withholdings (including backup withholding), assessments, fees or other charges
imposed by any Governmental Authority, including any interest, additions to tax or penalties applicable thereto.

 

“Term Credit Facility”
has the meaning set forth in the Recitals.

 

“Term Lender” means a
Lender with a Commitment or an outstanding Term Loan.

 

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“Term Loan” means a Loan
made pursuant to Section 2.01.

 

“Term Priority Collateral”
has the meaning set forth in the Intercreditor Agreement.

 

“Transactions” means
(a) the execution, delivery and performance by the Loan Parties of this Agreement, the borrowing of the Term Loans and the
use of the proceeds thereof, (b) to the extent applicable, the execution, delivery and performance by the Loan Parties of
the ABL Credit Agreement, (c)  the creation and perfection of the security interests provided for in the Collateral Documents,
and (d)  the payment of all fees, commissions, costs and expenses in connection with the foregoing.

 

“Type” when used in reference
to any Loan or Borrowing, refers to whether the rate of interest on such Loan, or on the Loans comprising such Borrowing, is determined
by reference to the Adjusted LIBO Rate or the Alternate Base Rate.

 

“UCC” means the Uniform
Commercial Code as in effect from time to time in the State of New York or any other state the laws of which are required to be
applied in connection with the perfection of security interests created by the Collateral Documents.

 

“U.S. Person” means a
“United States person” within the meaning of Section 7701(a)(30) of the Code.

 

“U.S. Tax Compliance Certificate”
has the meaning set forth in Section 2.15(e)(ii)(B)(3).

 

“U.S. Trustee” means
the United States Trustee applicable in the Cases.

 

“Variance Report” shall
have the meaning assigned to such term in Section 5.01(g).

 

“Variance Report Date”
shall have the meaning assigned to such term in Section 5.01(g).

 

“Variance Testing Period”
shall mean the four-week calendar period up to and through the Saturday of the week most recently ended prior to the applicable
Variance Report Date (provided that, the first Variance Testing Period shall include the entire period from the Petition Date through
the Saturday of the week most recently ended prior to the applicable Variance Testing Period).

 

“wholly-owned” when used
in reference to a subsidiary of any Person, means that all the Equity Interests in such subsidiary (other than directors’
qualifying shares and other nominal amounts of Equity Interests that are required to be held by other Persons under applicable
law) are owned, beneficially and of record, by such Person, another wholly-owned subsidiary of such Person or any combination thereof.

 

“Withdrawal Liability”
means liability to a Multiemployer Plan as a result of a complete or partial withdrawal from such Multiemployer Plan, as such terms
are defined in Part I of Subtitle E of Title IV of ERISA.

 

“Write-Down
and Conversion Powers” means, with respect to any EEA Resolution Authority, the write-down and conversion powers of
such EEA Resolution Authority from time to time under the Bail-In Legislation for the applicable EEA Member Country, which
write-down and conversion powers are described in the EU Bail-In Legislation Schedule.

 

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Section 1.02.      Classification
of Loans and Borrowings. For purposes of this Agreement, Loans and Borrowings may be classified and referred to by Type.

 

Section 1.03.      Terms
Generally. The definitions of terms herein shall apply equally to the singular and plural forms of the terms defined. Whenever
the context may require, any pronoun shall include the corresponding masculine, feminine and neuter forms. The words “include,”
“includes” and “including” shall be deemed to be followed by the phrase “without limitation.”
The word “will” shall be construed to have the same meaning and effect as the word “shall.” The words
“asset” and “property” shall be construed to have the same meaning and effect and to refer to any and
all real and personal, tangible and intangible assets and properties, including cash, securities, accounts and contract rights.
The word “law” shall be construed as referring to all statutes, rules, regulations, codes and other laws (including
official rulings and interpretations thereunder having the force of law or with which affected Persons customarily comply), and
all judgments, orders, writs and decrees, of all Governmental Authorities. Except as otherwise provided herein and unless the
context requires otherwise, (a) any definition of or reference to any agreement, instrument or other document (including
this Agreement and the other Loan Documents) shall be construed as referring to such agreement, instrument or other document as
from time to time amended, supplemented or otherwise modified (subject to any restrictions on such amendments, supplements or
modifications set forth herein), (b) any definition of or reference to any statute, rule or regulation shall be construed
as referring thereto as from time to time amended, supplemented or otherwise modified (including by succession of comparable successor
laws), and all references to any statute shall be construed as referring to all rules, regulations, rulings and official interpretations
promulgated or issued thereunder, (c) any reference herein to any Person shall be construed to include such Person’s
successors and permitted assigns (subject to any restrictions on assignment set forth herein) and, in the case of any Governmental
Authority, any other Governmental Authority that shall have succeeded to any or all functions thereof, (d) the words “herein,”
“hereof” and “hereunder,” and words of similar import, shall be construed to refer to this Agreement in
its entirety and not to any particular provision hereof and (e) all references herein to Articles, Sections, Exhibits and
Schedules shall be construed to refer to Articles and Sections of, and Exhibits and Schedules to, this Agreement.

 

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Section 1.04.      Accounting
Terms; GAAP. Except as otherwise expressly provided herein, all terms of an accounting or financial nature used herein
shall be construed in accordance with GAAP as in effect from time to time; provided that (a) if the Parent
Borrower notifies the Administrative Agent in writing (including via e-mail) that the Borrowers request an amendment to any
provision hereof to eliminate the effect of any change occurring after the Effective Date in GAAP or in the application
thereof on the operation of such provision (or if the Administrative Agent notifies the Borrowers that the Required Lenders
request an amendment to any provision hereof for such purpose), regardless of whether any such notice is given before or
after such change in GAAP or in the application thereof, then such provision shall be interpreted on the basis of GAAP as in
effect and applied immediately before such change shall have become effective until such notice shall have been withdrawn or
such provision amended in accordance herewith; provided that the Borrowers, on the one hand, and the Lenders, on the
other hand, agree to negotiate in good faith with respect to any proposed amendment to eliminate or adjust for the effect of
any such change in GAAP; and (b) notwithstanding any other provision contained herein, all terms of an accounting or
financial nature used herein shall be construed, and all computations of amounts and ratios referred to herein shall be made,
without giving effect to (i) any election under Statement of Financial Accounting Standards 159, The Fair Value
Option for Financial Assets and Financial Liabilities, or any successor thereto (including pursuant to the Accounting
Standards Codification), to value any Indebtedness of the Parent Borrower or any Restricted Subsidiary at “fair
value,” as defined therein, and (ii) any change in GAAP occurring after July 24, 2015 as a result of the adoption
of any proposals set forth in the Proposed Accounting Standards Update, Leases (Topic 840), issued by the Financial
Accounting Standards Board on August 17, 2010, or any other proposals issued by the Financial Accounting Standards Board
in connection therewith, in each case if such change would require treating any lease (or similar arrangement conveying the
right to use) as a capital lease where such lease (or similar arrangement) was not required to be so treated under GAAP as in
effect on July 24, 2015.

 

Section 1.05.      Classification
of Actions. For purposes of determining compliance at any time with the covenants set forth in Section 6.01 and Section 6.02
(or, in each case, any defined terms used therein), in the event that the subject transaction meets the criteria of more than
one of the categories of transactions permitted pursuant to the Sections (or related defined terms) in Section 6.01 and Section
6.02, the Borrowers may, in their sole discretion, classify the applicable transaction (or any portion thereof) under such Section
(or defined term); it being understood that (i) the Borrowers may divide and include such transaction under one or more of the
clauses of such Section (or any relevant portion thereof or of the applicable related defined term) that permit such transaction,
but will not be permitted to later reclassify such transaction and (ii) notwithstanding anything in this Section 1.05 to the contrary
for purposes of this Agreement, (x) Indebtedness incurred under the Pre-Petition ABL Credit Agreement and, to the extent applicable,
the ABL Credit Agreement shall only be permitted to be incurred or be outstanding under Section 6.01(j) and (y) Indebtedness uncured
under the Loan Documents or the Pre-Petition Loan Documents shall only be permitted to be incurred or be outstanding under Section
6.01(a).

 

Section 1.06.      Divisions.
For all purposes under the Loan Documents, in connection with any division or plan of division under Delaware law (or any comparable
event under a different jurisdiction’s laws): (a) if any asset, right, obligation or liability of any Person becomes the
asset, right, obligation or liability of a different Person, then it shall be deemed to have been transferred from the original
Person to the subsequent Person, and (b) if any new Person comes into existence, such new Person shall be deemed to have been
organized on the first date of its existence by the holders of its equity interests at such time.

 

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Article II

 

The
Credits

 

Section 2.01.      Commitments.

 

(a)            Subject to the terms and conditions set forth herein and in the Order, each Lender severally and not jointly agrees to
make, on the Funding Date, Loans to the Borrowers in an aggregate amount not to exceed such Lender’s New Money Commitment.
The New Money Commitments in respect of the New Money Loans shall terminate automatically immediately after the making of the
New Money Loans on the Funding Date. Proceeds of the New Money Loans shall be deposited in the DIP Funding Account and used solely
as permitted herein.

 

(b)           Subject
to the terms and conditions set forth herein and in the Order, each Lender severally and not jointly agrees to make or be deemed
to have made on the Effective Date, Loans to the Borrower in the aggregate amount of the Roll-up Loans Commitment. The Administrative
Agent, the Lenders and the Loan Parties each acknowledges and agrees that the Roll-up Loans Commitment shall expire upon the deemed
funding of the Roll-up Loans on the Effective Date. 5

 

Section 2.02.      Loans and Borrowings.

 

(a)            Each
Loan shall be made as part of a Borrowing consisting of Loans of the same Type made by the Lenders ratably in accordance with
their respective Commitments.

 

(b)           Subject
to Section 2.12, each Borrowing shall be comprised entirely of ABR Loans or Eurodollar Loans as the Borrowers may request
in accordance herewith. Each Lender at its option may make any Loan by causing any domestic or foreign branch or Affiliate of
such Lender to make such Loan; provided that any exercise of such option shall not affect the obligation of the Borrowers
to repay such Loan in accordance with the terms of this Agreement.

 

(c)            At
the commencement of each Interest Period for any Eurodollar Borrowing, such Borrowing shall be in an aggregate principal amount
that is an integral multiple of $1,000,000 and not less than $5,000,000; provided that a Eurodollar Borrowing that results
from a continuation of an outstanding Eurodollar Borrowing may be in an aggregate amount that is equal to such outstanding Borrowing.
At the time that each ABR Borrowing is made, such Borrowing shall be in an aggregate principal amount that is an integral multiple
of $500,000 and not less than $1,000,000. Borrowings of more than one Type may be outstanding at the same time; provided
that there shall not at any time be more than a total of six (or such greater number as may be agreed to by the Administrative
Agent) Eurodollar Borrowings outstanding.

 

(d)           Notwithstanding
any other provision of this Agreement, the Borrowers shall not be entitled to request, or to elect to convert to or continue,
any Eurodollar Borrowing if the Interest Period requested with respect thereto would end after the Maturity Date applicable thereto.

 

 

5 Roll-Up Loan funding mechanics
to be confirmed.

 

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Section 2.03.      Requests
for Borrowings. To request a Borrowing, the Borrowers deliver to the Administrative Agent a Borrowing Request (delivered by
e-mail, hand or facsimile) (a) in the case of a Eurodollar Borrowing, not later than 12:00 p.m., New York City time,
three Business Days before the date of the proposed Borrowing (or, such shorter period of time as may be agreed to by the Administrative
Agent) or (b) in the case of an ABR Borrowing, not later than 12:00 p.m., New York City time, one Business Day before
the date of the proposed Borrowing. Each written Borrowing Request shall specify the following information in compliance with
Section 2.02:

 

(i)             the aggregate amount of such Borrowing;

 

(ii)            the
date of such Borrowing, which shall be a Business Day;

 

(iii)           whether such Borrowing is to be an ABR Borrowing or a Eurodollar Borrowing;

 

(iv)          in
the case of a Eurodollar Borrowing, the initial Interest Period to be applicable thereto, which shall be a period contemplated
by the definition of the term “Interest Period”; and

 

(v)           the
location, number of the account and any other wiring information required by the Administrative Agent of the Borrowers to which
funds are to be disbursed.

 

If no election as to the Type of Borrowing
is specified, then the requested Borrowing shall be an ABR Borrowing. If no Interest Period is specified with respect to any requested
Eurodollar Borrowing, then the Borrowers shall be deemed to have selected an Interest Period of one month’s duration. Promptly
following receipt of a Borrowing Request in accordance with this Section, the Administrative Agent shall advise each Lender of
the details thereof and of the amount of such Lender’s Loan to be made as part of the requested Borrowing.

 

Section 2.04.      Funding of Borrowings.

 

(a)            Each Lender shall make each Loan to be made by it hereunder on the proposed date thereof by wire transfer of immediately
available funds by 2:00 p.m., New York City time, to the account of the Administrative Agent most recently designated by it
for such purpose by notice to the Lenders. Upon receipt of all requested funds, the Administrative Agent will make such Loans available
to the Borrowers by promptly remitting the amounts so received, in like funds, by wire transfer to the DIP Funding Account.

 

(b)            Unless
the Administrative Agent shall have received notice from a Lender prior to the proposed date of any Borrowing that such Lender
will not make available to the Administrative Agent such Lender’s share of such Borrowing, the Administrative Agent may
assume that such Lender has made such share available on such date in accordance with paragraph (a) of this Section and may,
but shall have no obligation to, in reliance on such assumption, make available to the Borrowers a corresponding amount. In such
event, if a Lender has not in fact made its share of the applicable Borrowing available to the Administrative Agent, then the
applicable Lender and the Borrowers severally agree to pay to the Administrative Agent forthwith on demand such corresponding
amount with interest thereon, for each day from and including the date such amount is made available to the Borrowers to but excluding
the date of payment to the Administrative Agent, at (i) in the case of a payment to be made by such Lender, the greater of
the Federal Funds Effective Rate and a rate determined by the Administrative Agent in accordance with banking industry rules on
interbank compensation or (ii) in the case of a payment to be made by the Borrowers, the interest rate applicable to ABR
Loans. If the Borrowers and such Lender shall pay such interest to the Administrative Agent for the same or an overlapping period,
the Administrative Agent shall promptly remit to the Borrowers the amount of such interest paid by the Borrowers for such period.
If such Lender pays such amount to the Administrative Agent, then such amount shall constitute such Lender’s Loan included
in such Borrowing. Any payment by the Borrowers shall be without prejudice to any claim any Borrower may have against a Lender
that shall have failed to make such payment to the Administrative Agent.

 

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Section 2.05.      Interest Elections.

 

(a)            Each
Borrowing initially shall be of the Type and, in the case of a Eurodollar Borrowing, shall have an initial Interest Period as
specified in the applicable Borrowing Request or as otherwise provided in Section 2.03. Thereafter, the Borrowers may elect
to convert such Borrowing to a Borrowing of a different Type or to continue such Borrowing and, in the case of a Eurodollar Borrowing,
may elect Interest Periods therefor, all as provided in this Section. The Borrowers may elect different options with respect to
different portions of the affected Borrowing, in which case each such portion shall be allocated ratably among the Lenders holding
the Loans comprising such Borrowing, and the Loans comprising each such portion shall be considered a separate Borrowing.

 

(b)           To
make an election pursuant to this Section, the Borrowers shall notify the Administrative Agent of such election in writing by
delivering (by e-mail, hand delivery or facsimile) an Interest Election Request to the Administrative Agent by the time that a
Borrowing Request would be required under Section 2.03 if the Borrowers were requesting a Borrowing of the Type resulting
from such election to be made on the effective date of such election. Each such Interest Election Request shall be irrevocable.
Each written Interest Election Request shall specify the following information in compliance with Section 2.02:

 

(i)             the
Borrowing to which such Interest Election Request applies and, if different options are being elected with respect to different
portions thereof, the portions thereof to be allocated to each resulting Borrowing (in which case the information to be specified
pursuant to clauses (iii) and (iv) below shall be specified for each resulting Borrowing);

 

(ii)            the
effective date of the election made pursuant to such Interest Election Request, which shall be a Business Day;

 

(iii)           whether the resulting Borrowing is to be an ABR Borrowing or a Eurodollar Borrowing; and

 

(iv)          if the resulting Borrowing is to be a Eurodollar Borrowing, the Interest Period to be applicable thereto after giving effect
to such election, which shall be a period contemplated by the definition of the term “Interest Period.”

 

If any such Interest Election Request requests a Eurodollar
Borrowing but does not specify an Interest Period, then the Borrowers shall be deemed to have selected an Interest Period of one
month’s duration.

 

(c)           Promptly
following receipt of an Interest Election Request in accordance with this Section, the Administrative Agent shall advise each
Lender of the details thereof and of such Lender’s portion of each resulting Borrowing.

 

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(d)           If
the Borrowers fail to deliver a timely Interest Election Request with respect to a Eurodollar Borrowing prior to the end of the
Interest Period applicable thereto, then, unless such Borrowing is repaid as provided herein, at the end of such Interest Period
such Borrowing shall be continued as a Eurodollar Borrowing for an additional Interest Period of one month. Notwithstanding any
contrary provision hereof, if an Event of Default has occurred and is continuing with respect to any Borrower, or if any other
Event of Default has occurred and is continuing and the Administrative Agent, at the request of the Required Lenders, has notified
the Borrowers of the election to give effect to this sentence on account of such Event of Default, then, so long as such Event
of Default is continuing, (i) no outstanding Borrowing may be converted to or continued as a Eurodollar Borrowing and (ii) unless
repaid, each Eurodollar Borrowing shall be converted to an ABR Borrowing at the end of the Interest Period applicable thereto.

 

Section 2.06.      Termination
of Commitments.

 

(a)              
Unless previously terminated, the Commitments of each Lender shall automatically terminate and permanently reduce to $0
upon the making of such Lender’s Loans pursuant to Section 2.01(a) and (b), as applicable.

 

Section 2.07.      Repayment
of Loans; Evidence of Debt.

 

(a)           The
Borrowers hereby unconditionally, jointly and severally, promise to pay to the Administrative Agent for the account of each Lender
the then unpaid principal amount of each Loan of such Lender as provided in Section 2.08.

 

(b)           Each
Lender shall maintain in accordance with its usual practice an account or accounts evidencing the indebtedness of the Borrowers
to such Lender resulting from each Loan made by such Lender, including the amounts of principal and interest payable and paid
to such Lender from time to time hereunder.

 

(c)           The
Administrative Agent shall maintain accounts in which it shall record (i) the amount of each Loan made hereunder, the Type
thereof and the Interest Period applicable thereto, (ii) the amount of any principal or interest due and payable or to become
due and payable from the Borrowers to each Lender hereunder and (iii) the amount of any sum received by the Administrative
Agent hereunder for the account of the Lenders and each Lender’s share thereof.

 

(d)           The
entries made in the accounts maintained pursuant to paragraph (b) or (c) of this Section shall be prima facie evidence
of the existence and amounts of the obligations recorded therein; provided that the failure of any Lender or the Administrative
Agent to maintain such accounts or any error therein shall not in any manner affect the obligation of the Borrowers to pay any
amounts due hereunder in accordance with the terms of this Agreement. In the event of any conflict between the accounts maintained
pursuant to paragraph (b) or (c) of this Section, the accounts maintained by the Administrative Agent shall, absent manifest error,
control.

 

(e)            Any Lender may request that Loans made by it be evidenced by a promissory note. In such event, the Borrowers shall prepare,
execute and deliver to such Lender a promissory note payable to such Lender (or, if requested by such Lender, to such Lender and
its registered assigns) substantially in the form of Exhibit K attached hereto. Thereafter, the Loans evidenced by such promissory
note and interest thereon shall at all times (including after assignment pursuant to Section 9.04) be represented by one or
more promissory notes in such form payable to the payee named therein (or, if such promissory note is a registered note, to such
payee and its registered assigns).

 

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Section 2.08.      Amortization of Term Loans.

 

(a)            [Reserved]

 

(b)           To
the extent not previously paid, all Term Loans shall be due and payable on the Maturity Date.

 

(c)            [Reserved]

 

(d)           Prior
to any repayment of any Borrowings under this Section, the Borrowers shall notify the Administrative Agent in writing of such
selection not later than 12:00 p.m., New York City time, three Business Days before the scheduled date of such repayment.
Administrative Agent shall promptly notify each Lender of such repayment notification. Each repayment of a Borrowing shall be
applied ratably to the Loans included in the repaid Borrowing. Repayments of Borrowings shall be accompanied by accrued interest
(and premium, if any) on the amounts repaid.

 

Section 2.09.      Prepayment
of Loans.

 

(a)            Subject
to the Order and the Intercreditor Agreement, in the event that any Net Proceeds are received by or on behalf of the Parent Borrower
or any Restricted Subsidiary in respect of an Asset Sale of all or substantially all of the assets of the Company and its Restricted
Subsidiaries, the Borrowers shall, within three Business Days after such Net Proceeds are received, prepay Borrowings in an amount
equal to 100% of such Net Proceeds subject to the requirements of Section 2.09(e), with application to the Loan Document Obligations
set forth in Section 2.09(d) below; provided that any Net Proceeds in respect of ABL Priority Collateral received by the Borrowers
or any Restricted Subsidiary as a result of such Asset Sale shall be applied in accordance with the Order and the Intercreditor
Agreement, as applicable.

 

(b)           Subject
to the Order and the Intercreditor Agreement, in the event and on each occasion that any Net Proceeds are received by or on behalf
of the Parent Borrower or any Restricted Subsidiary in respect of any Prepayment Event (other than an Asset Sale of all or substantially
all of the assets of the Company and its Restricted Subsidiaries), the Borrowers shall, on the day such Net Proceeds are received
(or, in the case of a Prepayment Event described in clause (a) or (b) of the definition of “Prepayment Event,”
within three Business Days after such Net Proceeds are received), be deposited into the Asset Sale Escrow Account and held in
the Asset Sale Escrow Account in accordance with clause (c) below; provided that in the case of a Prepayment Event described in
clauses (a) or (b) of the definition thereof, any Net Proceeds in respect of ABL Priority Collateral received by the Borrowers
or any Restricted Subsidiary as a result of such Prepayment Event shall be applied in accordance with the Order and the Intercreditor
Agreement, as applicable.

 

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(c)            Net
Proceeds received in connection with any Prepayment Event described in clause (a) or (b) of the definition of “Prepayment
Event” (other than an Asset Sale of all or substantially all of the assets of the Company and its Restricted Subsidiaries),
and solely to the extent that such Net Proceeds in respect of the applicable Asset Sale constitute Term Priority Collateral, shall
be deposited into the Asset Sale Escrow Account. Notwithstanding anything to the contrary herein, Net Proceeds of any Asset Sale
held in the Asset Sale Escrow Account may be used solely, (i) prior to the occurrence of the Conversion Date, to prepay the Loan
Document Obligations (including, for the avoidance of doubt, the Redemption Premium) in full in cash (including, for the avoidance
of doubt, on the Maturity Date) and (ii) upon the occurrence of the Conversion Date, as directed by the Borrowers.

 

(d)           Any
optional or mandatory prepayment of Borrowings under this Section, shall be applied to reduce the principal amount of the Term
Loans to be repaid on the Maturity Date. Notwithstanding the foregoing, any Lender may elect, by written notice to the Administrative
Agent by not later than 3:00 p.m. New York City time, two Business Days (or such shorter period as may be established by the Administrative
Agent) prior to the required prepayment date, to decline all or any portion of any prepayment of its Loans pursuant to this Section
(other than an optional prepayment pursuant to paragraph (a) of this Section or a prepayment pursuant to clause (c)
of the definition of “Prepayment Event,” which may not be declined), in which case the aggregate amount of the payment
that would have been applied to prepay Loans but was so declined shall first, be offered to Lenders who did not decline
its pro rata share of the prepayment who may elect by written notice to the Administrative Agent by not later than 3:00 p.m. New
York City time, one Business Day prior to the required prepayment date, to decline all or any portion of such offered prepayment
amount and second, if declined by such Lenders, may be retained by the Borrowers and shall constitute “Declined
Proceeds.” For the avoidance of doubt, a Lender shall be deemed to have accepted any prepayment amount offered under
this paragraph (d) is such Lender does not deliver a written notice to the Administrative Agent rejecting such prepayment amount
in accordance with this paragraph (d).

 

(e)            In
the event that all or any portion of the Loans are repaid or prepaid as a result of (i) [reserved], (ii) a mandatory prepayment
pursuant to Section 2.09(a), solely as a result of an Asset Sale of all or substantially all of the assets of the Parent Borrower
and its Restricted Subsidiaries (which, for the avoidance of doubt, includes the “Premium” and “Lane Bryant”
business lines) or (iii) the repayment of the Loans on the Maturity Date, in each case prior to or without the occurrence of the
Conversion Date, such repayments or prepayments will include a premium in an aggregate amount equal to 11.23% of the amount of
the loans so prepaid or repaid (the foregoing premium, the “Redemption Premium”).

 

(f)            The
Borrowers shall notify the Administrative Agent in writing of any optional prepayment and, to the extent practicable, any mandatory
prepayment hereunder by Borrowing, not later than 12:00 p.m., New York City time, three Business Days before the date of such
prepayment. Each such notice shall be irrevocable and shall specify the prepayment date, the principal amount of each Borrowing
or portion thereof to be prepaid and, in the case of a mandatory prepayment, a reasonably detailed calculation of the amount of
such prepayment; provided that a notice of prepayment of Borrowings pursuant to paragraph (a) of this Section may
state that such notice is conditioned upon the occurrence of one or more events specified therein, in which case such notice may
be revoked by the Parent Borrower (by notice to the Administrative Agent on or prior to the specified date of prepayment) if such
condition is not satisfied. Promptly following receipt of any such notice, the Administrative Agent shall advise the Lenders of
the contents thereof. Each partial prepayment of any Borrowing shall be in an amount that would be permitted in the case of an
advance of a Borrowing of the same Type as provided in Section 2.02, except as necessary to apply fully the required amount
of a mandatory prepayment. Each prepayment of a Borrowing shall be applied ratably to the Loans included in the prepaid Borrowing.
Prepayments shall be accompanied by accrued interest as required by Section 2.11.

 

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(g)           Notwithstanding
any provisions of this Section 2.09 to the contrary, if any prepayment would otherwise be required to be made pursuant to clause
(b) of this Section 2.09, solely as it relates to the portion of such Net Proceeds generated outside of the United States, so
long as (x) the applicable local law will not permit repatriation of such Net Proceeds to the United States or (y) material adverse
tax consequences to the Parent Borrower or any of its Subsidiaries would result from such repatriation, such Net Proceeds so
affected shall not be required to be included in the mandatory prepayments referred to in such clause (b).

 

Section 2.10.      Closing
Payments, Premiums and Fees.

 

(a)           The
Borrowers agree, jointly and severally, to pay (or cause to be paid) on the Funding Date to each Lender, a closing payment in
an amount equal to 2.50% of the aggregate principal amount of such Lender’s New Money Loan, which such payment may be treated
as original issue discount. The premium referenced in this clause (a) shall be fully earned on the Effective Date and due and
payable in full on the date set forth above.

 

(b)           The
Borrowers agree, jointly and severally, to pay (i) to the Administrative Agent, for its own account, fees and expenses in the
amounts and payable at the times and in the manner set forth in the Administrative Agent Fee Letter, (ii) to the Backstop Lenders,
for their own account, premiums in amounts and payable at the times separately agreed upon in the Commitment Letter and (iii)
to the Lenders, for their own account, premiums in amounts and payable at the times separately agreed upon in the RSA.

 

(c)           All
amounts payable hereunder shall be paid on the dates due, in immediately available funds, to the Administrative Agent for
distribution, in the case of closing payments, to the Term Lenders entitled thereto. Amounts paid shall not be refundable
under any circumstances (absent manifest error in the amount paid).

 

Section 2.11.      Interest.

 

(a)            The
Loans comprising each ABR Borrowing shall bear interest at the Alternate Base Rate plus the Applicable Rate.

 

(b)           The
Loans comprising each Eurodollar Borrowing shall bear interest at the Adjusted LIBO Rate for the Interest Period in effect for
such Borrowing plus the Applicable Rate.

 

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(c)            During
the continuance of an Event of Default (i) under clauses (a) or (b) of Article VII, the Borrowers shall pay interest on
such past due amounts (after giving effect to any applicable grace period) owing by the Borrowers hereunder at a fluctuating interest
rate per annum at all times equal to the Default Rate to the fullest extent permitted by applicable laws and (ii) under any other
clause of Article VII, the Borrowers shall pay interest on all outstanding Loan Document Obligations owing by the Borrowers hereunder
at a fluctuating interest rate per annum at all times equal to the Default Rate to the fullest extent permitted by applicable
laws. Accrued and unpaid interest on such amounts (including interest on past due interest) shall be due and payable upon written
demand.

 

(d)           Accrued
interest on each Loan (for ABR Loans, accrued through the last day of the prior calendar quarter) shall be payable in arrears
on each Interest Payment Date for such Loan; provided that (i) interest accrued pursuant to paragraph (c) of
this Section shall be payable on demand, (ii) in the event of any repayment or prepayment of any Loan, accrued interest on
the principal amount repaid or prepaid shall be payable on the date of such repayment or prepayment and (iii) in the event
of any conversion of any Eurodollar Loan prior to the end of the current Interest Period therefor, accrued interest on such Loan
shall be payable on the effective date of such conversion.

 

(e)            All
interest hereunder shall be computed on the basis of a year of 360 days, except that interest computed by reference to the
Alternate Base Rate at times when the Alternate Base Rate is based on the Prime Rate shall be computed on the basis of a year
of 365 days (or 366 days in a leap year), and in each case shall be payable for the actual number of days elapsed (including
the first day but excluding the last day). The applicable Alternate Base Rate or Adjusted LIBO Rate shall be determined by the
Administrative Agent, and such determination shall be conclusive absent manifest error.

 

Section 2.12.      Alternate
Rate of Interest. (i) If prior to the commencement of any Interest Period for a Eurodollar Borrowing:

 

(a)            the
Administrative Agent determines in good faith (which determination shall be conclusive absent manifest error) that adequate and
reasonable means do not exist for ascertaining the Adjusted LIBO Rate for such Interest Period; or

 

(b)           the
Administrative Agent is advised in writing by the Required Lenders that the Adjusted LIBO Rate for such Interest Period will not
adequately and fairly reflect the cost to such Lenders of making or maintaining their Loans included in such Eurodollar Borrowing
for such Interest Period;

 

then the Administrative Agent shall give notice thereof to the
Borrowers and the Lenders as promptly as practicable and, until the Administrative Agent notifies the Borrowers and the Lenders
that the circumstances giving rise to such notice no longer exist (which notification shall be made promptly after the Administrative
Agent obtains knowledge of the cessation of such circumstances), (i) any Interest Election Request that requests the conversion
of any Borrowing to, or continuation of any Borrowing as, a Eurodollar Borrowing shall be ineffective, and such Borrowing shall
be continued as an ABR Borrowing, and (ii) any Borrowing Request for a Eurodollar Borrowing shall be treated as a request
for an ABR Borrowing.

 

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(ii) If at any time the Administrative Agent
determines (which determination shall be conclusive absent manifest error) that (i) the circumstances set forth in paragraph (i)(a)
of this Section have arisen (including because the Screen Rate is not available or published on a current basis) and such circumstances
are unlikely to be temporary or (ii) the circumstances set forth in paragraph (i)(a) of this Section have not arisen but the supervisor
for the administrator of the Screen Rate or a Governmental Authority having jurisdiction over the Administrative Agent has made
a public statement identifying a specific date after which the Screen Rate shall no longer be used for determining interest rates
for loans, then the Administrative Agent and the Company shall endeavor to establish an alternate rate of interest to the Adjusted
LIBO Rate that gives due consideration to the then prevailing market convention for determining a rate of interest for syndicated
loans denominated in dollars in the United States at such time, and the Administrative Agent and the Company shall enter into an
amendment to this Agreement to reflect such alternate rate of interest and such other related changes to this Agreement as may
be applicable; provided that if such alternate rate of interest shall be less than 1.00%, such rate shall be deemed to be
1.00% for all purposes of this Agreement. Such amendment shall become effective with the prior consent of the Required Lenders
and without any further action or consent of any other party to this Agreement. Until an alternate rate of interest shall be determined
in accordance with this paragraph (but, in the case of the circumstances described in clause (ii) above, only to the extent the
Screen Rate for such Interest Period is not available or published at such time on a current basis), (x) any Interest Election
Request that requests the conversion of any Borrowing to, or continuation of any Borrowing as, a Eurodollar Term Loan Borrowing
shall be ineffective, and such Borrowing shall be continued as an ABR Term Loan Borrowing, and (y) any Borrowing Request for a
Eurodollar Term Loan Borrowing shall be treated as a request for an ABR Term Loan Borrowing.

 

Section 2.13.      Increased Costs.

 

(a)            If
any Change in Law shall:

 

(i)             impose,
modify or deem applicable any reserve, special deposit, compulsory loan, insurance charge or similar requirement against assets
of, deposits with or for the account of, or credit extended or participated in by, any Lender (except any such reserve requirement
reflected in the Adjusted LIBO Rate);

 

(ii)            impose on any Lender or the London interbank market any other condition, cost or expense (other than Taxes) affecting this
Agreement or Eurodollar Loans made by such Lender; or

 

(iii)           subject
any Recipient to any Taxes (other than any (A) Indemnified Taxes or (B) Excluded Taxes) on or with respect to its loans,
loan principal, letters of credit, commitments or other obligations, or its deposits, reserves, other liabilities or capital attributable
thereto;

 

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and the result of any of the foregoing shall be to increase
the cost to such Lender or other Recipient of making, converting to, continuing or maintaining any Loan or of maintaining its obligation
to make any such Loan, or to reduce the amount of any sum received or receivable by such Lender or other Recipient hereunder (whether
of principal, interest or any other amount) then, from time to time upon request of such Lender or other Recipient, the Borrowers
will pay to such Lender or other Recipient, as the case may be, such additional amount or amounts as will compensate such Lender
or other Recipient, as the case may be, for such additional costs or expenses incurred or reduction suffered. Notwithstanding the
foregoing, if the Parent Borrower reasonably believes that any such Taxes were not correctly or legally asserted, the applicable
Recipient will use commercially reasonable efforts to cooperate with the Parent Borrower to obtain a refund of such Taxes so long
as such efforts would not, in the sole determination of such Recipient exercised in good faith result in any non-reimbursable additional
costs, expenses or risks or be otherwise disadvantageous to it.

 

(b)           If
any Lender determines that any Change in Law regarding capital or liquidity requirements has had or would have the effect of reducing
the rate of return on such Lender’s capital or on the capital of such Lender’s holding company, if any, as a consequence
of this Agreement, the Commitments of such Lender or the Loans made by such Lender to a level below that which such Lender or
such Lender’s holding company could have achieved but for such Change in Law (taking into consideration such Lender’s
policies and the policies of such Lender’s holding company with respect to capital adequacy or liquidity), then, from time
to time upon request of such Lender, the Borrowers will pay to such Lender such additional amount or amounts as will compensate
such Lender or such Lender’s holding company for any such reduction suffered.

 

(c)            A certificate of a Lender setting forth the amount or amounts necessary to compensate such Lender or its holding company
as well as a reasonably detailed description of the occurrence giving rise to such event, as the case may be, as specified in paragraph (a)
or (b) of this Section delivered to the Borrowers shall be conclusive absent manifest error. The Borrowers shall pay such Lender
the amount shown as due on any such certificate within 10 Business Days after receipt thereof.

 

(d)           Failure
or delay on the part of any Lender to demand compensation pursuant to this Section shall not constitute a waiver of such Lender’s
right to demand such compensation; provided that the Borrowers shall not be required to compensate a Lender pursuant to
this Section for any increased costs or expenses incurred or reductions suffered more than 180 days prior to the date that
such Lender notifies the Borrowers of the Change in Law giving rise to such increased costs or expenses or reductions and of such
Lender’s or intention to claim compensation therefor; provided further that, if the Change in Law giving rise to
such increased costs or expenses or reductions is retroactive, then the 180-day period referred to above shall be extended
to include the period of retroactive effect thereof.

 

(e)            Notwithstanding the above, a Lender will not demand compensation for any increased cost or reduction set forth in this Section 2.13
at any time if it is not the general practice and policy of such Lender to demand such compensation from similarly situated borrowers
in similar circumstances under agreements containing provisions permitting such compensation to be claimed at such time.

 

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Section 2.14.      Break
Funding Payments. In the event of (a) the payment of any principal of any Eurodollar Loan other than on the last day
of an Interest Period applicable thereto (including as a result of an Event of Default), (b) the conversion of any Eurodollar
Loan other than on the last day of the Interest Period applicable thereto, (c) the failure to borrow, convert, continue or
prepay any Eurodollar Loan on the date specified in any notice delivered pursuant hereto (regardless of whether such notice may
be revoked under Section 2.09(f) and is revoked in accordance therewith) or (d) the assignment of any Eurodollar Loan
other than on the last day of the Interest Period applicable thereto as a result of a request by the Borrowers pursuant to Section 2.17,
then, in any such event, the Borrowers shall compensate each Lender for the loss, cost and expense (excluding any loss of margin)
attributable to such event. Such loss, cost or expense to any Lender shall be deemed to include an amount determined by such Lender
to be the excess, if any, of (i) the amount of interest that would have accrued on the principal amount of such Loan had
such event not occurred, at the Adjusted LIBO Rate that would have been applicable to such Loan (but not including the Applicable
Rate applicable thereto), for the period from the date of such event to the last day of the then current Interest Period therefor
(or, in the case of a failure to borrow, convert or continue, for the period that would have been the Interest Period for such
Loan), over (ii) the amount of interest that would accrue on such principal amount for such period at the interest rate such
Lender would bid if it were to bid, at the commencement of such period, for dollar deposits of a comparable amount and period
from other banks in the London interbank market. A certificate of any Lender delivered to the Borrowers and setting forth and
explaining in reasonable detail any amount or amounts that such Lender is entitled to receive pursuant to this Section shall be
conclusive absent manifest error. The Borrowers shall pay such Lender the amount shown as due on any such certificate within 30 days
after receipt thereof.

 

Section 2.15.      Taxes.

 

(a)            Payments
Free of Taxes. Any and all payments by or on account of any obligation of any Loan Party under any Loan Document shall be
made without deduction or withholding for any Taxes, except as required by applicable law. If any applicable law (as
determined in the good faith discretion of an applicable withholding agent) requires the deduction or withholding of any Tax
from any such payment by any applicable withholding agent, then the applicable withholding agent shall be entitled to make
such deduction or withholding and shall timely pay the full amount deducted or withheld to the relevant Governmental
Authority in accordance with applicable law and, if such Tax is an Indemnified Tax, then the sum payable by the applicable
Loan Party shall be increased as necessary so that after such deduction or withholding has been made (including such
deductions and withholdings applicable to additional sums payable under this Section 2.15) the applicable Recipient
receives an amount equal to the sum it would have received had no such deduction or withholding been made.

 

(b)           Payment
of Other Taxes by the Loan Parties. The Loan Parties shall timely pay to the relevant Governmental Authority in accordance
with applicable law, or at the, option of the Administrative Agent timely reimburse it for the payment of, any Other Taxes.

 

(c)            Evidence of Payment. As soon as practicable after any payment of Taxes by any Loan Party to a Governmental Authority
pursuant to this Section 2.15, such Loan Party shall deliver to the Administrative Agent the original or a certified copy
of a receipt issued by such Governmental Authority evidencing such payment, a copy of the return reporting such payment or other
evidence of such payment reasonably satisfactory to the Administrative Agent.

 

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(d)           Indemnification
by the Loan Parties. The Loan Parties shall jointly and severally indemnify each Recipient, within 10 days after written
demand therefor, for the full amount of any Indemnified Taxes (including Indemnified Taxes imposed or asserted on or attributable
to amounts payable under this Section 2.15) payable or paid by such Recipient or required to be withheld or deducted from
a payment to such Recipient and any reasonable expenses arising therefrom or with respect thereto, whether or not such Indemnified
Taxes were correctly or legally imposed or asserted by the relevant Governmental Authority. A certificate as to the amount of
such payment or liability delivered to the Borrowers by a Lender (with a copy to the Administrative Agent), or by the Administrative
Agent on its own behalf or on behalf of a Lender, shall be conclusive absent manifest error.

 

(e)            Status
of Lenders. (i) Any Lender that is entitled to an exemption from or reduction of withholding Tax with respect to payments
made under any Loan Document shall deliver to the Borrowers and the Administrative Agent, at the time or times reasonably requested
by the Borrowers or the Administrative Agent, such properly completed and executed documentation reasonably requested by the Borrowers
or the Administrative Agent as will permit such payments to be made without withholding or at a reduced rate of withholding. In
addition, any Lender, if reasonably requested by the Borrowers or the Administrative Agent, shall deliver such other documentation
prescribed by applicable law or reasonably requested by the Borrowers or the Administrative Agent as will enable the Borrowers
or the Administrative Agent to determine whether or not such Lender is subject to backup withholding or information reporting
requirements. Notwithstanding anything to the contrary in the preceding two sentences, the completion, execution and submission
of such documentation (other than such documentation set forth in Section 2.15(e)(ii)(A), (ii)(B) and (ii)(D) below) shall
not be required if in the Lender’s reasonable judgment such completion, execution or submission would subject such Lender
to any material unreimbursed cost or expense or would materially prejudice the legal or commercial position of such Lender.

 

(i)            Without
limiting the generality of the foregoing:

 

(A)                any
Lender that is a U.S. Person shall deliver to the Borrowers and the Administrative Agent on or prior to the date on which
such Lender becomes a Lender under this Agreement (and from time to time thereafter upon the reasonable request of the
Borrowers or the Administrative Agent), executed copies of IRS Form W-9 certifying that such Lender is exempt from
U.S. federal backup withholding tax;

 

(B)                 any
Foreign Lender shall, to the extent it is legally entitled to do so, deliver to the Borrowers and the Administrative Agent on
or prior to the date on which such Foreign Lender becomes a Lender under this Agreement (and from time to time thereafter upon
the reasonable request of the Borrowers or the Administrative Agent), whichever of the following is applicable (in such number
of copies as shall be requested by the recipient):

 

(1)              
in the case of a Foreign Lender claiming the benefits of an income tax treaty to which the United States is a party(x) with
respect to payments of interest under any Loan Document, executed copies of IRS Form W-8BEN or IRS Form W-8BEN-E (or any successor
forms) establishing an exemption from, or reduction of, U.S. federal withholding tax pursuant to the “interest” article
of such tax treaty and (y) with respect to any other applicable payments under any Loan Document, executed copies of IRS Form W-8BEN
or IRS Form W-8BEN-E establishing an exemption from, or reduction of, U.S. federal withholding tax pursuant to the “business
profits” or “other income” article of such tax treaty;

 

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(2)              
executed copies of IRS Form W-8ECI (or any successor forms);

 

(3)              
in the case of a Foreign Lender claiming the benefits of the exemption for portfolio interest under Section 881(c)
of the Code, (x) a certificate substantially in the form of Exhibit H-1 to the effect that such Foreign Lender is
not a “bank” within the meaning of Section 881(c)(3)(A) of the Code, a “10 percent shareholder”
of the Parent Borrower within the meaning of Section 881(c)(3)(B) of the Code, or a “controlled foreign corporation”
described in Section 881(c)(3)(C) of the Code and that no payments in connection with any Loan Document are effectively connected
with the Foreign Lender’s conduct of a U.S. trade or business (a “U.S. Tax Compliance Certificate”) and
(y) executed copies of IRS Form W-8BEN or IRS Form W-8BEN-E (or any successor forms); or

 

(4)               to
the extent a Foreign Lender is not the beneficial owner (for example, where the Foreign Lender is a partnership or a
participating Lender), executed copies of IRS Form W-8IMY (or any successor forms), accompanied by IRS
Form W-8ECI, IRS Form W-8BEN or IRS Form W-8BEN-E, a U.S. Tax Compliance Certificate substantially in
the form of Exhibit H-2 or H-3, IRS Form W-9, and/or other certification documents from each beneficial
owner, as applicable; provided that if the Foreign Lender is a partnership (and not a participating Lender) and one or
more direct or indirect partners of such Foreign Lender are claiming the portfolio interest exemption, such Foreign Lender
may provide a U.S. Tax Compliance Certificate substantially in the form of Exhibit H-4 on behalf of each such direct
and indirect partner;

 

(C)                 any
Foreign Lender shall, to the extent it is legally entitled to do so, deliver to the Borrowers and the Administrative Agent (in
such number of copies as shall be requested by the recipient) on or prior to the date on which such Foreign Lender becomes a Lender
under this Agreement (and from time to time thereafter upon the reasonable request of the Borrowers or the Administrative Agent),
executed originals of any other form prescribed by applicable law as a basis for claiming exemption from or a reduction in U.S.
federal withholding Tax, duly completed, together with such supplementary documentation as may be prescribed by applicable law
to permit the Borrowers or the Administrative Agent to determine the withholding or deduction required to be made; and

 

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(D)               
if a payment made to a Lender under any Loan Document would be subject to U.S. federal withholding Tax imposed by FATCA
if such Lender were to fail to comply with the applicable reporting requirements of FATCA (including those contained in Section 1471(b)
or 1472(b) of the Code, as applicable), such Lender shall deliver to the Borrowers and the Administrative Agent at the time or
times prescribed by law and at such time or times reasonably requested by the Borrowers or the Administrative Agent such documentation
prescribed by applicable law (including as prescribed by Section 1471(b)(3)(C)(i) of the Code) and such additional documentation
reasonably requested by the Borrowers or the Administrative Agent as may be necessary for the Borrowers and the Administrative
Agent to comply with their obligations under FATCA, to determine whether such Lender has complied with such Lender’s obligations
under FATCA and to determine the amount, if any, to deduct and withhold from such payment. Solely for purposes of this clause (D),
“FATCA” shall include any amendments made to FATCA after the date of this Agreement.

 

Each Lender agrees that if any form or certification
it previously delivered (including any specific documentation required in this Section 2.15(e)) expires or becomes obsolete
or inaccurate in any respect, it shall deliver promptly to the Borrowers or Administrative Agent updated or other appropriate documentation
(including any new documentation reasonably requested by the Borrowers or the Administrative Agent) or promptly notify the Borrowers
and the Administrative Agent in writing of its legal ineligibility to do so.

 

(f)            Indemnification
by the Lenders. Each Lender shall severally indemnify the Administrative Agent, within 10 days after demand therefor, for
(i) any Indemnified Taxes attributable to such Lender (but only to the extent that any Loan Party has not already indemnified
the Administrative Agent for such Indemnified Taxes and without limiting the obligation of the Loan Parties to do so), (ii)
any Taxes attributable to such Lender’s failure to comply with the provisions of Section 9.04(c)(ii) relating to the
maintenance of a Participant Register and (iii) any Excluded Taxes attributable to such Lender, in each case, that are
payable or paid by the Administrative Agent in connection with any Loan Document, and any reasonable expenses arising
therefrom or with respect thereto, whether or not such Taxes were correctly or legally imposed or asserted by the relevant
Governmental Authority. A certificate as to the amount of such payment or liability delivered to any Lender by the
Administrative Agent shall be conclusive absent manifest error. Each Lender hereby authorizes the Administrative Agent to set
off and apply any and all amounts at any time owing to such Lender under any Loan Document or otherwise payable by the
Administrative Agent to the Lender from any other source against any amount due to the Administrative Agent under this
paragraph (f).

 

(g)           Treatment
of Certain Refunds. If any Recipient determines, in its sole discretion exercised in good faith, that it has received a refund
of any Indemnified Taxes as to which it has been indemnified pursuant to this Section 2.15 (including by the payment of additional
amounts pursuant to this Section 2.15), it shall pay to the indemnifying party an amount equal to such refund (but only to
the extent of indemnity payments made under this Section 2.15 with respect to the Taxes giving rise to such refund), net
of all out-of-pocket expenses (including Taxes) of such indemnified party and without interest (other than any interest paid by
the relevant Governmental Authority with respect to such refund). Such indemnifying party, upon the request of such indemnified
party, shall repay to such indemnified party the amount paid over pursuant to this Section 2.15(g) (plus any penalties, interest
or other charges imposed by the relevant Governmental Authority) in the event that such indemnified party is required to repay
such refund to such Governmental Authority. Notwithstanding anything to the contrary in this Section 2.15(g), in no event
will the indemnified party be required to pay any amount to an indemnifying party pursuant to this paragraph the payment of which
would place the indemnified party in a less favorable net after-Tax position than the indemnified party would have been in if
the Tax subject to indemnification and giving rise to such refund had not been deducted, withheld or otherwise imposed and the
indemnification payments or additional amounts with respect to such Tax had never been paid. This Section 2.15(g) shall not
be construed to require any indemnified party to make available its Tax returns (or any other information relating to its Taxes
that it deems confidential) to any Loan Party or any other Person.

 

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(h)          
Defined Terms. For the avoidance of doubt, for purposes of this Section 2.15, the term “applicable law”
includes FATCA.

 

(i)            Issue
Price. The Borrowers and Administrative Agent shall cooperate in good faith to determine the “issue
price” (within the meaning of Section 1273 of the Code) of (i) the Loans and (ii) if the Exit Conversion occurs, the loans
under the Exit Facility Agreement and, in either case, shall not take any Tax reporting position inconsistent with such determination,
except as otherwise required by a Change in Law or pursuant to the good faith resolution of a Tax contest

 

(j)             Survival.
Each party’s obligations under this Section 2.15 shall survive the resignation or replacement of the Administrative Agent
or any assignment of rights by, or the replacement of, a Lender, the termination of the Commitments and the repayment, satisfaction
or discharge of all obligations under any Loan Document.

 

Section 2.16.      Payments Generally; Pro Rata Treatment; Sharing of Set-offs.

 

(a)            The
Borrowers shall make each payment required to be made by the Borrowers hereunder or under any other Loan Document on or prior
to the time expressly required hereunder or under such other Loan Document for such payment (or, if no such time is expressly
required, on or prior to 2:00 p.m., New York City time), on the date when due, in immediately available funds, without any
defense, setoff, recoupment or counterclaim. Any amounts received after such time on any date may, in the discretion of the Administrative
Agent, be deemed to have been received on the next succeeding Business Day for purposes of calculating interest thereon. All such
payments shall be made to such account as may be specified by the Administrative Agent; provided that payments pursuant
to Sections 2.13, 2.14, 2.15 and 9.03 shall be made directly to the Persons entitled thereto and payments pursuant to other
Loan Documents shall be made to the Persons specified therein. The Administrative Agent shall distribute any such payment received
by it for the account of any other Person to the appropriate recipient promptly following receipt thereof. If any payment hereunder
or under any other Loan Document shall be due on a day that is not a Business Day, the date for payment shall be extended to the
next succeeding Business Day and, in the case of any payment accruing interest, interest thereon shall be payable for the period
of such extension. All payments under each Loan Document shall be made in dollars.

 

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(b)              
If at any time insufficient funds are received by and available to the Administrative Agent to pay fully all amounts of
principal, interest, premiums and fees then due hereunder, such funds shall be applied towards payment of the amounts then due
hereunder ratably among the parties entitled thereto, in accordance with the amounts then due to such parties.

 

(c)               If
any Lender shall, by exercising any right of set-off or counterclaim or otherwise, obtain payment in respect of any principal
of or interest on any of its Loans resulting in such Lender receiving payment of a greater proportion of the aggregate amount
of its Loans and accrued interest thereon than the proportion received by any other Lender, then the Lender receiving such
greater proportion shall notify the Administrative Agent of such fact and shall purchase (for cash at face value)
participations in the Loans of other Lenders to the extent necessary so that the amount of all such payments shall be shared
by the Lenders ratably in accordance with the aggregate amounts of principal of and accrued interest on their Loans; provided
that (i) if any such participations are purchased and all or any portion of the payment giving rise thereto is
recovered, such participations shall be rescinded and the purchase price restored to the extent of such recovery, without
interest, and (ii) the provisions of this paragraph shall not be construed to apply to any payment made by the Borrowers
pursuant to and in accordance with the express terms of this Agreement (for the avoidance of doubt, as in effect from time to
time) or any payment obtained by a Lender as consideration for the assignment of or sale of a participation in any of its
Loans to any Person in accordance with the terms of Section 9.04. The Borrowers consent to the foregoing and agree, to
the extent the Borrowers may effectively do so under applicable law, that any Lender acquiring a participation pursuant to
the foregoing arrangements may exercise against any Borrower rights of set-off and counterclaim with respect to such
participation as fully as if such Lender were a direct creditor of the Borrowers in the amount of such participation. For
purposes of subclause (b)(i) of the definition of Excluded Taxes, a Lender that acquires a participation pursuant to
this Section 2.16(c) shall be treated as having acquired such participation on the earlier date(s) on which such Lender
acquired the applicable interest(s) in the Commitment(s) and/or Loan(s) to which such participation relates.

 

(d)              
Unless the Administrative Agent shall have received written notice from the Borrowers prior to the date on which any payment
is due to the Administrative Agent for the account of the Lenders hereunder that the Borrowers will not make such payment, the
Administrative Agent may assume that the Borrowers have made such payment on such date in accordance herewith and may, but shall
not be obligated to, in reliance upon such assumption, distribute to the Lenders the amount due. In such event, if the Borrowers
have not in fact made such payment, then each of the Lenders severally agrees to repay to the Administrative Agent forthwith on
demand the amount so distributed to such Lender with interest thereon, for each day from and including the date such amount is
distributed to it to but excluding the date of payment to the Administrative Agent, at the greater of the Federal Funds Effective
Rate and a rate determined by the Administrative Agent in accordance with banking industry rules on interbank compensation.

 

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(e)              
If any Lender shall fail to make any payment required to be made by it hereunder to or for the account of the Administrative
Agent, then the Administrative Agent may, in its discretion (notwithstanding any contrary provision hereof), (i) apply any
amounts thereafter received by the Administrative Agent for the account of such Lender to satisfy such Lender’s obligations
in respect of such payment until all such unsatisfied obligations have been discharged and/or (ii) hold any such amounts in
a segregated account as cash collateral for, and apply any such amounts to, any future payment obligations of such Lender hereunder
to or for the account of the Administrative Agent.

 

Section 2.17.       
Mitigation Obligations; Replacement of Lenders.

 

(a)              
If any Lender requests compensation under Section 2.13, or if the Borrowers are required to pay any Indemnified Taxes
or additional amounts to any Lender or to any Governmental Authority for the account of any Lender pursuant to Section 2.15,
then such Lender shall use reasonable efforts to designate a different lending office for funding or booking its Loans hereunder
or to assign and delegate its rights and obligations hereunder to another of its offices, branches or Affiliates if, in the judgment
of such Lender, such designation or assignment and delegation (i) would eliminate or reduce amounts payable pursuant to Section 2.13
or 2.15, as the case may be, in the future and (ii) would not subject such Lender to any unreimbursed cost or expense and
would not otherwise be disadvantageous to such Lender. The Borrowers hereby, jointly and severally, agree to pay all reasonable
costs and expenses incurred by any Lender in connection with any such designation or assignment and delegation.

 

(b)               If
(i) any Lender requests compensation under Section 2.13, (ii) the Borrowers are required to pay any
Indemnified Taxes or additional amounts to any Lender or any Governmental Authority for the account of any Lender pursuant to
Section 2.15, or (iii) any Lender has failed to consent to a proposed amendment, waiver, discharge or termination
that under Section 9.02 requires the consent of all the Lenders (or all the affected Lenders) and with respect to which
the Required Lenders shall have granted their consent, then the Borrowers may, at the Borrowers’ sole expense and
effort, upon notice to such Lender and the Administrative Agent by the Borrowers, require such Lender to assign and delegate,
without recourse (in accordance with and subject to the restrictions contained in Section 9.04), all its interests,
rights (other than its existing rights to payments pursuant to Section 2.13 or 2.15) and obligations under this
Agreement and the other Loan Documents (or, in the case of any such assignment and delegation resulting from a failure to
provide a consent, all its interests, rights and obligations under this Agreement and the other Loan Documents as a Lender)
to an Eligible Assignee that shall assume such obligations (which may be another Lender, if a Lender accepts such assignment
and delegation); provided that (A) the Borrowers shall have received the prior written consent of the
Administrative Agent to the extent such consent would be required under Section 9.04(b)(i), which consent shall not
unreasonably be withheld, (B) such Lender shall have received payment of an amount equal to the outstanding principal of
its Loans, accrued interest thereon, accrued fees and all other amounts payable to it hereunder from the assignee (in the
case of such principal and accrued interest and fees) or the Borrowers (in the case of all other amounts), (C) in the
case of any such assignment and delegation resulting from a claim for compensation under Section 2.13 or payments
required to be made pursuant to Section 2.15, such assignment will result in a reduction in such compensation or
payments and (D) in the case of any such assignment and delegation resulting from the failure to provide a consent, the
assignee shall have given such consent and, as a result of such assignment and delegation and any contemporaneous assignments
and delegations and consents, the applicable amendment, waiver, discharge or termination can be effected. A Lender shall not
be required to make any such assignment and delegation if, prior thereto, as a result of a waiver or consent by such Lender
or otherwise, the circumstances entitling the Borrowers to require such assignment and delegation have ceased to apply. Each
party hereto agrees that an assignment and delegation required pursuant to this paragraph may be effected pursuant to an
Assignment and Assumption executed by the Borrowers, the Administrative Agent and the assignee and that the Lender required
to make such assignment and delegation need not be a party thereto.

 

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Section 2.18.       
[Reserved].

 

Section 2.19.       
[Reserved].

 

Section 2.20.       
Joint and Several Liability of the Borrowers. The Loan Document Obligations of the Borrowers shall be joint
and several in nature. Each Borrower hereby irrevocably and unconditionally agrees that it is jointly and severally liable for
all Loan Document Obligations of the Borrowers hereunder and the other Loan Documents, whether now or hereafter existing or due
or to become due. The Loan Document Obligations of the Borrowers under the Loan Documents may be enforced by the Administrative
Agent and the Lenders against any Borrower or all Borrowers in any manner or order selected by the Administrative Agent or the
Required Lenders in their sole discretion. Without limiting the foregoing provisions of this Section 2.20, each Borrower acknowledges
and agrees that:

 

(a)              
its obligations under this Agreement shall remain enforceable against it even though such obligations may be unenforceable
or not allowable against any Borrower during the existence of an insolvency proceeding against any Borrower or otherwise;

 

(b)              
 its obligations under this Agreement are independent of the obligations of any other Borrower, and a separate action or
actions may be brought and prosecuted against it in respect of such obligations irrespective of whether any action is brought against
any other Borrower or any other Borrower is joined in any such action or actions;

 

(c)              
it hereby irrevocably waives any defenses it may now have or hereafter acquire in any way relating to, any of all of the
following: (i) any lack of validity or enforceability of this Agreement or any agreement or instrument relating thereto in respect
of any other Borrower; (ii) any change in the time, manner or place of payment of, or in any other term of, all or any of the obligations
of any other Borrower under or in respect of this Agreement, or any other amendment or waiver of or any consent to departure from
this Agreement, in respect of any other Borrower; (iii) any change, restructuring or termination of the structure or existence
of any other Borrower; (iv) the failure of any other person to execute or deliver any other agreement or the release or reduction
of liability of any other person with respect to any obligations of the Borrowers under this Agreement; or (v) any other circumstance
(including any statute of limitations but other than the Loan Document Obligations having been paid in full) or any existence or
reliance on any representation by any other person that might otherwise constitute a defense available to, or a discharge or, any
other Borrower;

 

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(d)              
its obligations under this Agreement shall continue to be effective or be reinstated, as the case may be, if at any time
any payment of any such obligations is rescinded or must otherwise be returned by any person upon the insolvency, bankruptcy or
reorganization of any other Borrower, all as though such payment had not been made;

 

(e)              
it hereby unconditionally and irrevocably waives any right to revoke its joint and several liability under the Loan Documents
and acknowledges that such liability is continuing and applies to all obligations of the Borrowers under the Loan Documents, whether
existing now or in the future;

 

(f)               
in any action or proceeding involving any state corporate limited partnership or limited liability company law, or any applicable
state, federal or foreign bankruptcy, insolvency, reorganization or other law affecting the rights of creditors generally, if the
obligations of the Subsidiary Borrower under this Agreement would otherwise be held or determined to be void, voidable, invalid
or unenforceable, or subordinated to the claims of the any other creditors, on account of the amount of its liability under this
Agreement, then, notwithstanding any other provision to the contrary, the amount of such liability shall, without any further action
by such Borrower, any Loan Document or any other person be automatically limited and reduced to the highest amount (after giving
effect to the right of contribution established in Section 2.20(g) and any rights of subrogation, indemnity or reimbursement) that
is valid and enforceable and not subordinated to the claims of other creditors as determined in such action or proceedings; and

 

(g)               it
hereby agrees that to the extent that any Borrower shall have paid more than its proportionate share of any payment made
hereunder, such Borrower shall be entitled to seek and receive contribution from and against any other Borrower hereunder
which has not paid its proportionate share of such payment; provided that the provisions of this Section 2.20(g) shall
in no respect limit the obligations and liabilities of any Borrower to the Administrative Agent and the Lenders, and each
Borrower shall remain liable to the Administrative Agent and the Lenders for the full amount hereunder; provided,
however each Borrower agrees that the foregoing rights of contribution as well as any right of subrogation, indemnity or
reimbursement that it may acquire or that may arise against any other Borrower due to any payment or performance made under
this Agreement shall in all respects be subordinated and junior in right of payment to, and shall not be exercised by such
Borrower until, all Loan Document Obligations have been paid in full.

 

Section 2.21.       
Super-Priority Nature of Obligations and Administrative Agent’s Liens; Payment of Obligations.

 

(a)              
The priority of Administrative Agent’s Liens on the Collateral, claims and other interests shall be as set forth in
the Order.

 

(b)              
Upon the maturity (whether by acceleration or otherwise) of any of the Loan Document Obligations, the Administrative Agent
and Lenders shall be entitled to immediate payment of such Loan Document Obligations without further application to or order of
the Court.

 

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Section 2.22.        Conversion
to Exit Facility Agreement. The Loans shall be repaid in cash in accordance with the terms hereunder; provided that,
notwithstanding the foregoing, upon the satisfaction or waiver by the Required Lenders of each of the conditions set forth in
the “Conditions to Borrowings” section of the Exit Facility Term Sheet, automatically and without any further
consent or action required by the Administrative Agent, any Lender, or any other Secured Party, the Loans shall be refinanced
with loans under the Exit Facility Agreement in accordance with the Exit Facility Term Sheet (the “Exit
Conversion”). Upon the Exit Conversion, (i) the Borrowers (or the entities assuming and/or acquiring directly or
indirectly the operations and assets of the Borrowers in the Acceptable Plan, and each Guarantor and each entity assuming the
operations and assets of each Guarantor that is a Debtor in the Acceptable Plan, to the extent such Person is required under
the Exit Facility Term Sheet to continue to be a guarantor thereunder), shall assume all obligations in respect of the Loans
hereunder and all other monetary obligations in respect hereof, (ii) each Loan hereunder shall be continued as and converted
to a Loan under the Exit Facility Agreement, (iii) each Lender hereunder shall be a Lender under the Exit Facility Agreement
and (iv) this Agreement shall terminate and be superseded and replaced in its entirety by, and deemed amended and restated in
its entirety in the form of, the Exit Facility Agreement (with such changes and insertions thereto, as are reasonably
satisfactory to the Administrative Agent and the Borrower, incorporated as necessary to make any technical changes necessary
to effectuate the intent of this Section 2.22 and to make any changes as required in the Exit Facility Term Sheet, including
to increase the facility amount and give effect to any “last out” term loans). Notwithstanding the foregoing, all
obligations of the Borrowers and the Guarantors to the Administrative Agent and the Lenders under this Agreement and any
other Loan Document which are expressly stated in this Agreement or such other Loan Document as surviving such
agreement’s termination shall, as so specified, survive without prejudice and remain in full force and effect. Each of
the Loan Parties, the Administrative Agent and the Lenders shall take such actions and execute and deliver such agreements,
instruments or other documents as the Administrative Agent may reasonably request to give effect to the provisions of this
Section 2.22 and as are required to complete the schedules to the Exit Facility Agreement or other agreements contemplated
thereby; provided, however, that any such action by the Administrative Agent or any of the Lenders shall not be
a condition precedent to the effectiveness of the Exit Facility Agreement if and to the extent so provided in the
Confirmation Order. Each Lender hereto hereby agrees that, on the Conversion Date, (i) the Administrative Agent (in its
capacity as Administrative Agent under the Exit Facility Agreement) may execute and deliver the Exit Facility Agreement (and
any guaranty contemplated thereby) on its own behalf and on behalf of each such Lender and (ii) the Administrative Agent may
execute and deliver the security documents contemplated by the Exit Facility Term Sheet. On the Conversion Date, the
Administrative Agent shall transfer any amounts remaining in the DIP Accounts to an account designated by the Borrowers.

 

Article III

 

Representations and Warranties

 

Each Borrower represents and warrants to
the Administrative Agent and the Lenders as follows:

 

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Section 3.01.       
Organization; Powers. The Parent Borrower and each Restricted Subsidiary is duly organized, validly existing
and (to the extent the concept is applicable in such jurisdiction and, in the case of any Restricted Subsidiary, except where the
failure to be so, individually or in the aggregate, would not reasonably be expected to result in a Material Adverse Effect) in
good standing under the laws of the jurisdiction of its organization, has all requisite power and authority to, subject to the
entry of the Order, carry on its business as now conducted and, except where the failure to do so, individually or in the aggregate,
would not reasonably be expected to result in a Material Adverse Effect, is qualified to do business in, and is in good standing
in, every jurisdiction where such qualification is required.

 

Section 3.02.       
Authorization; Enforceability; Benefit to Loan Parties.

 

(a)              
Subject to entry of the Order, the Transactions, insofar as they are to be carried out by each Loan Party, are within such
Loan Party’s corporate or other organizational powers and have been duly authorized by all necessary corporate or other organizational
and, if required, shareholder or other equityholder action. Subject to entry of the Order, this Agreement has been duly executed
and delivered by each Borrower and constitutes, and each other Loan Document to which any Loan Party is to be a party, when executed
and delivered by such Loan Party, will constitute, a legal, valid and binding obligation of such Borrower or such Loan Party, as
the case may be, enforceable against it in accordance with its terms, subject to applicable bankruptcy, insolvency, reorganization,
moratorium or other laws affecting creditors’ rights generally and to general principles of equity, regardless of whether
considered in a proceeding in equity or at law.

 

(b)              
Each Loan Party expects to derive benefit (and its board of directors or other governing body has determined that it may
reasonably be expected to derive benefit), directly and indirectly, from (i) successful operations of each of the other Loan
Parties and (ii) the credit extended by the Lenders to the Borrowers hereunder. Each Loan Party has determined that, subject
to entry of the Order, the execution, delivery, and performance of this Agreement and any other Loan Documents to be executed by
such Loan Party is within its purpose, will be of direct and indirect benefit to such Loan Party, and is in its best interest.

 

Section 3.03.       
Governmental Approvals; No Conflicts. Except for the entry of, and pursuant to the terms of, the Order, the
Transactions (a) do not require any consent or approval of, registration or filing with, or any other action by, any Governmental
Authority, except such as have been obtained or made and are (or will so be) in full force and effect, (b) will not violate
any applicable law, including any order of any Governmental Authority, (c) will not violate the charter, by-laws or other
organizational documents of the Parent Borrower or any Restricted Subsidiary, (d) will not violate or result in a default
under any indenture or agreement (including the Pre-Petition ABL Credit Agreement, the ABL Credit Agreement to the extent applicable,
the Pre-Petition Credit Agreement or other material instrument binding upon the Parent Borrower or any Restricted Subsidiary or
any of their assets) (other than defaults arising solely as a result of the commencement of the Cases), or give rise to a right
thereunder to require any payment to be made by the Parent Borrower or any Restricted Subsidiary, and (e) will not result
in the creation or imposition of any Lien on any asset of the Parent Borrower or any Restricted Subsidiary, except Liens created
pursuant to the Loan Documents or Liens created in connection with the Pre-Petition ABL Credit Agreement, the ABL Credit Agreement
to the extent applicable, or the Pre-Petition Credit Agreement, in the case of clauses (a) (as to the Transactions other
than entry into the Loan Documents), (b) and (d) above, except for a failure to obtain or make, violation or creation, as applicable,
which individually or in the aggregate would not reasonably be expected to result in a Material Adverse Effect.

 

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Section 3.04.       
Financial Condition; No Material Adverse Change.

 

(a)              
The Borrowers have heretofore furnished to the Lenders (i) the audited consolidated balance sheets and related consolidated
statements of operations, comprehensive income, equity and cash flows of the Parent Borrower and its consolidated Subsidiaries
as of and for the fiscal year ended August 3, 2019, and (B) the unaudited consolidated balance sheets and related consolidated
statements of operations, comprehensive income and cash flows of the Parent Borrower and its consolidated Subsidiaries as of and
for each of the fiscal quarters and the portions of the fiscal year ended November 2, 2019 and February 1, 2020 . Such financial
statements present fairly, in all material respects, the financial position and results of operations and cash flows of the Parent
Borrower and its consolidated Subsidiaries as of such dates and for such periods in accordance with GAAP, subject to year-end audit
adjustments and the absence of footnotes in the case of the statements referred to in clause (ii) above.

 

(b)              
Since the Petition Date, other than those customarily resulting from the commencement of the Cases and changes set forth
in the Parent Borrower’s business plan delivered to the Ad Hoc Committee prior to the Petition Date, there has been no event,
development or circumstance that has had, or would reasonably be expected to have, a Material Adverse Effect.

 

Section 3.05.       
Properties.

 

(a)              
The Parent Borrower and each Restricted Subsidiary has good title to, or valid leasehold interests in, all its tangible
property material to its business, except for defects in title that, individually or in the aggregate, would not reasonably be
expected to result in a Material Adverse Effect and Liens expressly permitted by Section 6.02.

 

(b)              
 (i) The Parent Borrower and each Restricted Subsidiary owns, is licensed to use, or otherwise has the right to use all
trademarks, service marks, tradenames, trade dress, copyrights, patents, designs and other intellectual property material to its
business, and (ii) the conduct of their respective businesses, including the use thereof by the Parent Borrower and the Restricted
Subsidiaries in their respective businesses, does not infringe upon the rights of any other Person, except for any such infringements
or any such failure to own, license or have the right to use that, individually or in the aggregate, would not reasonably be expected
to result in a Material Adverse Effect.

 

(c)              
Schedule 3.05 sets forth the address of each real property that is owned in fee by the Loan Parties as of the Effective
Date.

 

Section 3.06.       
Litigation and Environmental Matters.

 

(a)              
Except for the Disclosed Matters and the Cases, there are no actions, suits or proceedings by or before any arbitrator or
Governmental Authority pending against or, to the knowledge of the Borrowers, threatened against the Parent Borrower or any Restricted
Subsidiary (i) as to which there is a reasonable likelihood of an adverse determination and that, if adversely determined,
would reasonably be expected, individually or in the aggregate, to result in a Material Adverse Effect or (ii) that involve
any of the Loan Documents or the Transactions.

 

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(b)              
Except for the Disclosed Matters or matters that, individually or in the aggregate, would not reasonably be expected to
result in a Material Adverse Effect, neither the Parent Borrower nor any Restricted Subsidiary (i) has failed to comply with
any Environmental Law or to obtain, maintain or comply with any permit, license or other approval required under any Environmental
Law, (ii) has become subject to any Environmental Liability, (iii) has received written notice of any claim with respect
to any Environmental Liability or (iv) knows of any basis for any Environmental Liability.

 

Section 3.07.       
Compliance with Laws and Agreements.

 

(a)              
The Parent Borrower and each Restricted Subsidiary is in compliance with all laws, including all orders of Governmental
Authorities, applicable to it or its property and all indentures, agreements and other instruments binding upon it or its property,
except any non-compliance arising solely as a result of the commencement of the Cases or where the failure to do so, individually
or in the aggregate, would not reasonably be expected to result in a Material Adverse Effect (it being agreed that this Section
does not apply to any law which is specifically addressed in Section 3.06(b), 3.07(b), 3.08, 3.09, 3.10 or 3.14). Except for
any defaults or events of defaults arising solely as a result of the commencement of the Cases, any defaults or events of defaults
arising under the Pre-Petition ABL Credit Agreement or the Pre-Petition Credit Agreement, no Event of Default has occurred and
is continuing.

 

(b)               The
Borrowers have implemented and maintain in effect policies and procedures designed to ensure compliance in all material
respects by the Parent Borrower, its Subsidiaries and their respective directors, officers, employees and agents with
Anti-Corruption Laws and applicable Sanctions, and the Parent Borrower, its Subsidiaries and their respective officers and
employees and to the knowledge of the Borrowers, their respective directors and agents, are in compliance with
Anti-Corruption Laws and applicable Sanctions in all material respects. None of (a) the Parent Borrower, any Subsidiary or,
to the knowledge of the Borrowers, any of their respective directors, officers or employees, or (b) to the knowledge of the
Borrowers any agent of the Parent Borrower or any Subsidiary that will act in any capacity in connection with or benefit from
the credit facility established hereby, is a Sanctioned Person. No Borrowing, use of proceeds or other transaction
contemplated by this Agreement will violate Anti-Corruption Laws or applicable Sanctions.

 

Section 3.08.       
Investment Company Status. No Loan Party is an “investment company” as defined in, or subject
to regulation under, the Investment Company Act of 1940.

 

Section 3.09.       
Taxes. The Parent Borrower and each Subsidiary has (a) timely filed or caused to be filed all Tax returns
and reports required to have been filed, except to the extent that the failure to do so would not, individually or in the aggregate,
reasonably be expected to result in a Material Adverse Effect, and (b) paid or caused to be paid all Taxes required to have been
paid by it (including in its capacity as withholding agent), except (i) any Taxes that are being contested in good faith by
appropriate proceedings diligently conducted and for which the Parent Borrower or such Subsidiary has set aside on its books reserves
with respect thereto to the extent required by GAAP or (ii) to the extent that the failure to do so would not, individually
or in the aggregate, reasonably be expected to result in a Material Adverse Effect. There is no current or proposed tax assessment,
deficiency or other claim against the Parent Borrower or any of the Subsidiaries that would, individually or in the aggregate,
reasonably be expected to result in a Material Adverse Effect.

 

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Section 3.10.       
ERISA; Labor Matters.

 

(a)              
Except as could not reasonably be expected, individually or in the aggregate, to result in a Material Adverse Effect, (i) no
ERISA Event has occurred or is reasonably expected to occur, (ii) neither any Loan Party nor any ERISA Affiliate has engaged
in a transaction that could be subject to Section 4069 or 4212(c) of ERISA, and (iii) each Plan is in compliance with
the applicable provisions of ERISA, the Code and other applicable laws. On the Effective Date, the excess of the present value
of all accumulated benefit obligations under each Plan (based on the assumptions used for purposes of preparing the audited financial
statements set forth in the Borrower’s most recent Annual Report on Form 10-K), as of the date of the most recent financial
statements reflecting such amounts, over the fair market value of the assets of such Plan, if any, could not be reasonably expected,
individually or in the aggregate, to result in a Material Adverse Effect.

 

(b)               Except
as would not reasonably be expected, individually or in the aggregate, to result in a Material Adverse Effect, (i) there
are no strikes, lockouts, slowdowns or any other labor disputes against the Parent Borrower or any Restricted Subsidiary
pending or, to the knowledge of the Borrowers, threatened, (ii) the hours worked by and payments made to employees of
the Parent Borrower and the Restricted Subsidiaries have not been in violation of the Fair Labor Standards Act of 1938 or any
other applicable federal, state, local or foreign law dealing with such matters, (iii) all payments due from the Parent
Borrower or any Restricted Subsidiary, or for which any claim may be made against the Parent Borrower or any Restricted
Subsidiary, on account of wages and employee health and welfare insurance and other benefits, have been paid or accrued as a
liability on the books of the Parent Borrower or such Restricted Subsidiary to the extent required by GAAP and (iv) the
consummation of the Transactions will not give rise to any right of termination or right of renegotiation on the part of any
union under any collective bargaining agreement to which the Parent Borrower or any Restricted Subsidiary is bound.

 

Section 3.11.       
[Reserved].

 

Section 3.12.       
Subsidiaries and Joint Ventures. Schedule 3.12 sets forth, as of the Effective Date, the name, type of organization
and jurisdiction of organization of, and the percentage of each class of Equity Interests owned by the Parent Borrower or any Subsidiary
in, (a) each Subsidiary and (b) each joint venture in which the Parent Borrower or any Subsidiary owns any Equity Interests,
and identifies each Designated Subsidiary. All the issued and outstanding Equity Interests in each Subsidiary owned by any Loan
Party have been (to the extent such concepts are relevant with respect to such Equity Interests) duly authorized and validly issued
and are fully paid and non-assessable (except as such rights may arise under mandatory provisions of applicable statutory law that
may not be waived and not as a result of any rights contained in organizational documents). Except as set forth in Schedule 3.12,
as of the Effective Date, there is no existing option, warrant, call, right, commitment or other agreement to which the Parent
Borrower or any Subsidiary is a party requiring, and there are no Equity Interests in any Subsidiary outstanding that upon exercise,
conversion or exchange would require, the issuance by any Subsidiary of any additional Equity Interests or other securities exercisable
for, convertible into, exchangeable for or evidencing the right to subscribe for or purchase any Equity Interests in any Subsidiary.

 

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Section 3.13.       
Insurance. Schedule 3.13 sets forth a description of all insurance maintained by or on behalf of the Parent
Borrower and the Restricted Subsidiaries as of the Effective Date. As of the Effective Date, all premiums due and payable in respect
of such insurance have been paid. The Borrowers believe that the insurance maintained by or on behalf of the Parent Borrower and
the Restricted Subsidiaries is adequate.

 

Section 3.14.       
Federal Reserve Regulations. Neither the Parent Borrower nor any Restricted Subsidiary is principally, or
as one of its important activities, in the business of extending credit for the purpose of purchasing or carrying margin stock
(within the meaning of Regulation U of the Board of Governors), or extending credit for the purpose of purchasing or carrying margin
stock. No part of the proceeds of the Loans will be used, whether directly or indirectly, and whether immediately, incidentally
or ultimately, in any manner or for any purpose that would entail a violation of Regulations T, U or X of the Board of Governors.

 

Section 3.15.       
[Reserved].

 

Section 3.16.       
Collateral Matters.

 

(a)              
Subject to the entry of the Order, the Collateral Agreement and the Order are effective to create in favor of the Administrative
Agent (for the benefit of the Secured Parties) legal, valid, enforceable and perfected Liens on the Collateral described therein
(with such priority as provided for therein).

 

(b)              
 Except for the entry of the Order, no filing or other action will be necessary to perfect such Liens.

 

(c)              
The Order is (or will be, as applicable) effective to create in favor of the Administrative Agent, for the benefit of the
Secured Parties, a legal, valid, binding and enforceable perfected security interest in the Collateral (with such priority as provided
for in the Order (including, without limitation, with respect to the Carve Out)) without the necessity of the execution of mortgages,
security agreements, pledge agreements, financing statements or other agreements or documents except to the extent set forth in
such orders.

 

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Section 3.17.       
Use of Proceeds. Unless otherwise agreed by the Administrative Agent (acting at the direction of the Required
Lenders), the proceeds of the New Money Loans will be deposited into the DIP Funding Account and used in accordance with the terms
of the Approved Budget (subject to Permitted Variances) and the terms of the Order or any other order entered into by the Court
that is consistent with the RSA, the Order and this Agreement, including, without limitation (i) to pay amounts due to Lenders
and the Administrative Agent hereunder and the reasonable and documented professional fees and expenses (including legal, financial
advisor, appraisal and valuation-related fees and expenses) incurred by Lenders and the Administrative Agent, including those incurred
in connection with the preparation, negotiation, documentation and court approval of the transactions contemplated hereby (including
pursuant to such court approval), (ii) to make adequate protection payments, (iii) to fund the Carve Out, and (iv) to
pay administration costs of the Cases and Claims or amounts approved by the Court in the “first day” and “second
day” orders or as required under the Bankruptcy Code. Notwithstanding anything to the contrary herein, the proceeds of the
New Money Loans may be used to prepay or repay the ABL Credit Agreement (to the extent applicable) solely to extent provided for
in the Approved Budget then in effect at the date of such prepayment or repayment, and in any event in an aggregate amount during
the term of this Agreement not to exceed $50,000,000.

 

Section 3.18.       
Approved Budget. The Borrowers have heretofore furnished to the Administrative Agent the initial Approved
Budget. Each Approved Budget was prepared in good faith based upon assumptions the Borrowers believed to be reasonable assumptions
on the date of delivery of such Approved Budget.

 

Section 3.19.       
Chapter 11 Cases.

 

(a)           
The Cases were commenced on the Petition Date in accordance with applicable laws and proper notice thereof was given for
(i) the motion seeking approval of the Loan Documents and the Order and (ii) the hearing for the entry of the Order. Debtors shall
give, on a timely basis as specified in the Order, all notices required to be given to all parties specified in the Order.

 

(b)            After
the entry of the Order, and pursuant to and to the extent permitted in the Order, the Loan Document Obligations will
constitute allowed administrative expense claims in the Cases having priority over all administrative expense claims and
unsecured claims against the Debtors now existing or hereafter arising, of any kind whatsoever, including all administrative
expense claims of the kind specified in Sections 105, 326, 330, 331, 503(b), 506(c), 507(a), 507(b), 546(c), 726, 1114 or any
other provision of the Bankruptcy Code or otherwise, as provided under Section 364(c)(l) of the Bankruptcy Code, subject to
(i) the Carve Out and (ii) the priorities set forth in the Order.

 

(c)           
After the entry of the Order and pursuant to and to the extent provided in the Order, the Loan Document Obligations will
be secured by a valid and perfected first priority Lien on all of the Collateral subject, as to priority, only to (i) the Carve
Out, (ii) the Liens pursuant to Section 6.02(i) with respect to Indebtedness under the ABL Credit Agreement (to the extent applicable),
subject to the terms of such Section 6.02(i) and (iii) to the extent set forth in the Order.

 

(d)           
The Order is in full force and effect and has not been reversed, stayed (whether by statutory stay or otherwise), vacated,
or, without the Required Lenders’ consent, modified or amended. The Loan Parties are in compliance in all material respects
with the Order.

 

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(e)           
Notwithstanding the provisions of Section 362 of the Bankruptcy Code, and subject to the applicable provisions of the Order,
upon the Maturity Date (whether by acceleration or otherwise) of any of the Loan Document Obligations, to the extent the Conversion
Date has not occurred, the Administrative Agent and Lenders shall be entitled to immediate payment of such Loan Document Obligations
and to enforce the remedies provided for hereunder or under applicable laws, without further notice, motion or application to,
hearing before, or order from, the Court.

  

Article IV

 

Conditions

 

Section 4.01.       
Conditions to Effective Date. The effectiveness of this Agreement and the obligations of the Lenders to make
the Roll-up Loans hereunder shall not become effective until the date on which each of the following conditions shall be satisfied
(or waived in accordance with Section 9.02):

 

(a)              
The Administrative Agent shall have received from each party hereto either (i) a counterpart of this Agreement signed
on behalf of such party or (ii) evidence satisfactory to the Administrative Agent (which may include a facsimile transmission)
that such party has signed a counterpart of this Agreement.

 

(b)              
The Administrative Agent shall have received a favorable written opinion (addressed to the Administrative Agent and the
Lenders and dated the Effective Date) of Kirkland & Ellis LLP, counsel for the Loan Parties, addressing corporate authority
matters and other matters as the Administrative Agent shall reasonably request, each such opinion to be in form, scope and substance
reasonably satisfactory to the Administrative Agent and the Lenders.

 

(c)              
The Administrative Agent shall have received as to each Loan Party such customary documents and certificates as it shall
reasonably have requested relating to the organization, existence and good standing of such Loan Party and the authorization of
the Loan Documents or the Transactions, all in form and substance reasonably satisfactory to the Administrative Agent.

 

(d)              
 (a) The representations and warranties of the Loan Parties set forth in the Loan Documents shall be true and correct (i) in
the case of the representations and warranties qualified as to materiality, in all respects and (ii) otherwise, in all material
respects, in each case on and as of the Effective Date, except in the case of any such representation and warranty that expressly
relates to a prior date, in which case such representation and warranty shall be so true and correct on and as of such prior date
and (b) at the time of and immediately after giving effect to the Transactions to occur on the Effective Date, no Event of Default
shall have occurred and be continuing.

 

(e)              
The Administrative Agent shall have received a certificate, dated the Effective Date and signed by the chief financial officer
of the Parent Borrower, confirming compliance with the conditions set forth in paragraph (d) of this Section.

 

(f)               
The Lenders and the Administrative Agent shall have received the Approved Budget.

 

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(g)              
The Administrative Agent, for its benefit and the benefit of each other Secured Party, shall have been granted a perfected
lien on the Collateral by the Order on the terms and conditions set forth herein and in the other Loan Documents.

 

(h)              
The Administrative Agent shall have received the results of a search of the UCC (or equivalent) filings made with respect
to the Loan Parties in the jurisdictions reasonably requested by the Administrative Agent.

 

(i)                
The Lenders shall have received all documentation and other information required by bank regulatory authorities under applicable
“know your customer” rules and regulations, including the USA Patriot Act, to include a duly executed IRS Form W-9
or such other applicable IRS Form for each Borrower, at least three Business Days prior to the Effective Date to the extent such
information was requested at least 10 Business Days prior to the Effective Date.

 

(j)                
The Collateral Agreement each shall have been duly executed and delivered by each party thereto, and shall be in full force
and effect.

 

(k)              
The Administrative Agent shall have received (i) unaudited interim consolidated financial statements of the Parent Borrower
for each fiscal month ended after the fiscal quarter ending February 1, 2020 through the end of [ ], 2020 and (ii) unaudited financial
statements for the fiscal quarter ended May 2, 2020.

 

(l)                
Since the Petition Date, other than those events or circumstances arising from the commencement of the Cases, there has
been no event or circumstance, either individually or in the aggregate, that has or could reasonably be expected to have a Material
Adverse Effect.

 

(m)             (i)
the Administrative Agent shall have received drafts of the “first day” pleadings for the Cases, in each case, in
form and substance reasonably satisfactory to the Administrative Agent; and (ii) all motions, orders (including the
“first day” orders and the Cash Management Order) and other documents to be filed with and submitted to the Court
on the Petition Date shall be in form and substance reasonably satisfactory to the Administrative Agent, and the Court shall
have approved and entered all “first day” orders, including, without limitation, the Cash Management Order.

 

(n)              
No trustee, receiver or examiner with expanded powers shall have been appointed in any of the Chapter 11 Cases.

 

(o)              
The Pre-Petition Agent and the Pre-Petition Lenders shall have each received adequate protection in respect of the Liens
securing their respective Pre-Petition Lender Obligations pursuant to the Order.

 

The Administrative Agent shall notify the
Borrowers and the Lenders of the Effective Date, and such notice shall be conclusive and binding.

 

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Section 4.02.       
Conditions to the New Money Loan. The obligations of the Lenders to make the New Money Loans hereunder shall
not become effective until the date on or after the Effective Date on which each of the following conditions shall be satisfied
(or waived in accordance with Section 9.02):

 

(a)              
The Administrative Agent shall have received a written Borrowing Request to include a flow of funds memorandum in form and
substance satisfactory to the Administrative Agent and the Lenders.

 

(b)              
The ABL Credit Agreement shall have been duly executed and delivered by each of the parties thereto, and shall be in full
force and effect.

 

(c)              
The Intercreditor Acknowledgment shall have been duly executed and delivered by each party thereto, and shall be in full
force and effect.

 

(d)              
The Administrative Agent, the Ad Hoc Committee and the Ad Hoc Committee Advisors shall have received all fees and other
amounts due and payable on or prior to the Funding Date, including, to the extent invoiced at least two Business Days prior to
the Funding Date, payment or reimbursement of all fees and expenses (including fees, charges and disbursements of counsel) required
to be paid or reimbursed by any Loan Party under the Commitment Letter or any Loan Document, in each case, payable from the proceeds
of the initial funding of the Term Loans.

 

The Administrative Agent shall notify the
Borrowers and the Lenders of the Funding Date, and such notice shall be conclusive and binding.

 

Article V

 

Affirmative Covenants

 

Until the Commitments shall have expired
or been terminated, the principal of and interest on each Loan and all premiums and fees payable hereunder shall have been paid
in full, each Borrower covenants and agrees with the Lenders that:

 

Section 5.01.       
Financial Statements and Other Information. The Borrowers will furnish to the Administrative Agent, on behalf
of each Lender and, in the case of clauses (e), (f) and (g), to the Ad Hoc Committee Advisors:

 

(a)              
within 90 days after the end of each fiscal year of the Parent Borrower, its consolidated balance sheet and related
consolidated statements of operations, comprehensive income, equity and cash flows as of the end of and for such fiscal year, setting
forth in each case in comparative form the figures for the previous fiscal year, all certified by a Financial Officer of the Parent
Borrower to the effect that such consolidated financial statements present fairly, in all material respects, the financial position,
results of operations and cash flows of the Parent Borrower and its consolidated Subsidiaries as of the end of and for such fiscal
year on a consolidated basis in accordance with GAAP;

 

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(b)              
within 45 days after the end of each of the first three fiscal quarters of each fiscal year of the Parent Borrower,
its consolidated balance sheet as of the end of such fiscal quarter, the related consolidated statements of operations and comprehensive
income for such fiscal quarter and the then elapsed portion of the fiscal year and the related consolidated statement of cash flows
for the then elapsed portion of the fiscal year, setting forth in each case in comparative form the figures for the corresponding
period or periods of (or, in the case of the balance sheet, as of the end of) the previous fiscal year, all certified by a Financial
Officer of the Parent Borrower as presenting fairly, in all material respects, the financial position, results of operations and
cash flows of the Parent Borrower and its consolidated Subsidiaries as of the end of and for such fiscal quarter and such portion
of the fiscal year on a consolidated basis in accordance with GAAP, subject to normal year-end audit adjustments and the absence
of footnotes;

 

(c)               within
30 days after the end of each of the first two fiscal months of each fiscal quarter of the Company, the consolidated
balance sheet and related statements of operations and comprehensive income of the Company as of the end of and for such
fiscal month and the then elapsed portion of the fiscal year and the related consolidated statement of cash flows of the
Company for the then elapsed portion of the fiscal year, setting forth in each case in comparative form the figures for the
corresponding period or periods of (or, in the case of the balance sheet, as of the end of) the previous fiscal year, all
certified by a Financial Officer of the Company as presenting fairly in all material respects the financial position, results
of operations and cash flows of the Company and its consolidated Subsidiaries as of the end of and for such fiscal month and
such portion of the fiscal year on a consolidated basis in accordance with GAAP, subject to normal year-end audit adjustments
and the absence of footnotes (it being understood and agreed that any adjustments reflected in such monthly financial
statements may differ (in part or entirely) from any adjustments reflected in the financial statements delivered in the
foregoing clauses (a) or (b);

 

(d)              
concurrently with each delivery of financial statements under clause (a), (b) or (c) above, a completed Compliance
Certificate signed by a Financial Officer of the Parent Borrower, (i) certifying, in the case of the financial statements
delivered under clause (a), (b) or (c) above, that such financial statements present fairly in all material respects the financial
position, results of operations and cash flows of the Parent Borrower and its consolidated Subsidiaries on a consolidated basis
in accordance with GAAP, subject to normal year end audit adjustments and the absence of footnotes, (ii) certifying as to
whether a Default has occurred and, if a Default has occurred, specifying the details thereof and any action taken or proposed
to be taken with respect thereto, (iii) to the extent applicable, setting forth reasonably detailed calculations demonstrating
compliance with Section 6.12, (iv) if any change in GAAP or in the application thereof has occurred since the date of the audited
financial statements referred to in Section 3.04, specifying the effect of such change on the financial statements accompanying
such certificate, and (v) certifying that all notices required to be provided under Section 5.03 and 5.04 have been provided;

 

(e)              
no later than 5:00 p.m. New York City time on the four week anniversary of the Effective Date(or such later time as agreed
to in writing (including via e-mail) by the Required Lenders in their sole discretion), and each fourth (4th) calendar
week thereafter, an updated budget consistent with the form and level of detail set forth in the initial Approved Budget, including
the same line-items provided with the initial Approved Budget, and otherwise in form and substance reasonably acceptable to Ad
Hoc Committee Advisors in their reasonable discretion. Upon, and subject to, the approval of any such updated budget by the Ad
Hoc Committee Advisors in their reasonable discretion, such supplemented budget shall constitute the then-approved Approved Budget,
effective as of the beginning of the week immediately following the week in which it was delivered; provided that unless
and until the Ad Hoc Committee Advisors approve such supplemental budget in their reasonable discretion, the then-current Approved
Budget shall remain in effect;

 

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(f)           
no later than 5:00 p.m. New York City time on the Thursday of each calendar week (or such later time as agreed to in writing
(including via e-mail) by the Required Lenders in their sole discretion) commencing on (a) the date that is the third Thursday
following the Effective Date, a line-item by line-item report setting forth for each line item in the Approved Budget, in reasonable
detail, the actual receipts received and operating disbursements (including any professional fees) made during the prior week then-ended
and (b) the date that is the first Thursday following the Effective Date a report setting forth (i) the Liquidity as of the Friday
of the most recently ended calendar week and (ii) the aggregate amount of end of day cash and Cash Equivalents as of the Friday
of the most recently ended calendar week of all non-Loan Party Subsidiaries on deposit in or credited to any account maintained
by such non-Loan Party Subsidiaries;

 

(g)           no
later than 5:00 p.m. New York City time on the Thursday (or such later time as agreed to in writing (including via e-mail) by
the Required Lenders in their sole discretion) of each calendar week commencing on the date that is the second Thursday
following the Effective Date, (each such Thursday or later time, a “Variance Report Date”), a line-item by
line-item variance report (each, a “Variance Report”),substantially in the form attached hereto as Exhibit
J or otherwise as reasonably acceptable to the Required Lenders in their sole discretion, setting forth, in reasonable
detail: (x) any variances between actual amounts for each line item in the Approved Budget for the Variance Testing Period
versus projected amounts set forth in the applicable Approved Budget for each line item included therein on a cumulative
basis for such Variance Testing Period (for the avoidance of doubt, to be prepared by comparing the sum of the four (4)
figures for each relevant week for such corresponding line item in the relevant Approved Budget that was in effect in respect
of each relevant week at the time), and (y) the computations necessary to determine compliance with Section 6.12, together
with a statement from a Financial Officer certifying the information contained in the report. The Variance Report shall also
provide a reasonably detailed explanation for any negative variance in such Variance Report in excess of 15% in actual
receipts and any positive variance in such Variance Report in excess of 15% in actual operating disbursements during the
Variance Testing Period (in each case unless the dollar amount corresponding to such percentage variance is less than
$1,000,000) as compared to projections for such corresponding line items during the Variance Testing Period as set forth in
the Approved Budget;

 

(h)          
(i) to the extent applicable, within 1 Business Day of delivery of a Borrowing Base Certificate (as defined in the Pre-Petition
ABL Credit Agreement or the ABL Credit Agreement, as applicable) to the ABL Agent, copy of such certificate and (ii) a copy of
each report or forecast delivered under the ABL Credit Agreement, within 1 Business Day of delivery thereof;

 

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(i)           
promptly after the same become publicly available, copies of all periodic and other reports, proxy statements and other
materials filed by the Parent Borrower or any Subsidiary with the SEC or with any national securities exchange, or distributed
by the Parent Borrower to its shareholders generally, as the case may be;

 

(j)           
[reserved];

 

(k)          
promptly after any written request therefor, evidence of insurance renewals as required under Section 5.08 hereunder
in form and substance reasonably acceptable to the Administrative Agent; and

 

(l)           
promptly after any written request therefor, such other information regarding the operations, business affairs and financial
condition of the Parent Borrower or any Subsidiary, or compliance with the terms of any Loan Document, as the Administrative Agent
or any Lender may reasonably request.

 

Information required to be delivered pursuant to clause (a),
(b) or (i) of this Section shall be deemed to have been delivered if such information, or one or more annual or quarterly reports
containing such information, shall have been posted by the Administrative Agent on an IntraLinks or similar site to which the Lenders
have been granted access or shall be available on the website of the SEC at http://www.sec.gov. Information required to be delivered
pursuant to this Section may also be delivered by electronic communications pursuant to procedures approved by the Administrative
Agent.

 

Section 5.02.       
Notices of Material Events. The Borrowers will furnish to the to the Ad Hoc Committee Advisors and the Administrative
Agent (for distribution to the Lenders) written notice promptly upon any Financial Officer, or other officer or employee responsible
for compliance with the Loan Documents, of the Borrowers becoming aware of any of the following:

 

(a)           
the occurrence of any Default;

 

(b)          
the filing or commencement of any action, suit or proceeding by or before any arbitrator or Governmental Authority against
(other than in connection with the Cases) or affecting the Parent Borrower or any Restricted Subsidiary, or any adverse development
in any such pending action, suit or proceeding not previously disclosed in writing by the Borrowers to the Administrative Agent
and the Lenders, that in each case would reasonably be expected to result in a Material Adverse Effect or that in any manner questions
the validity of any Loan Document;

 

(c)           
the occurrence of an ERISA Event that has resulted, or would reasonably be expected to result, in a Material Adverse Effect;

 

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(d)          
(i) as soon as practicable in advance of filing (and to the extent practicable not later than three (3) days prior to the
filing thereof) with the Court or delivering (and to the extent practicable not later than three (3) days prior to the delivery
thereof) to the Committee appointed in a Case, if any, or to the U.S. Trustee, as the case may be, the Order, all other material
proposed orders and pleadings related to (x) the Cases (all of which must be in form and substance reasonably satisfactory to the
Required Lenders), (y) the Pre-Petition Credit Agreement and this Agreement and the credit facilities contemplated thereby and/or
any sale contemplated in accordance with the Required Milestones and any Plan of Reorganization and/or any disclosure statement
related thereto (all of which must be in form and substance reasonably satisfactory to the Administrative Agent), and (ii) substantially
simultaneously with the filing with the Court or delivering to the Committee appointed in any Case, if any, or to the U.S. Trustee,
as the case may be, monthly operating reports and all other notices, filings, motions, pleadings or other information concerning
the financial condition of the Loan Parties or their Subsidiaries or the Cases that may be filed with the Court or delivered to
the Committee appointed in any Case, if any, or to the U.S. Trustee; or

 

(e)          
any other development that has resulted, or would reasonably be expected to result, in a Material Adverse Effect.

 

Each notice delivered under this Section shall be accompanied
by a statement of a Financial Officer or other executive officer of the Parent Borrower setting forth the details of the event
or development requiring such notice and any action taken or proposed to be taken with respect thereto.

 

Section 5.03.       
Collateral Obligations; Additional Subsidiaries.

 

(a) Each Borrower
will, and will cause the other applicable Loan Parties to comply with the “Collateral and Guarantee Requirement”.
If any additional Designated Subsidiary is formed or acquired after the Effective Date (or any Excluded Subsidiary becomes a
Designated Subsidiary), the Borrowers will promptly notify the Administrative Agent thereof and will, as promptly as
practicable, and in any event within 15 days (or such longer period as the Administrative Agent may agree) after such
Designated Subsidiary is formed or acquired (or any Excluded Subsidiary becomes a Designated Subsidiary) cause the Collateral
and Guarantee Requirement to be satisfied with respect to such Designated Subsidiary and with respect to any Equity Interests
in or Indebtedness of such Designated Subsidiary owned by or on behalf of any Loan Party.

 

(b) Each of the Loan Parties hereby covenants
and agrees that upon the entry of, and subject to, the Order and subject to the Carve Out in all respects, the Loan Document Obligations,
pursuant to Section 364(c)(1) of the Bankruptcy Code, shall at all times constitute allowed DIP Superpriority Claims in the Cases.

 

(c) The relative priorities of the Liens
described in this Section 5.03 with respect to the Collateral shall be as set forth in the Order. In accordance with the Order,
all of the Liens described in this Section 5.03 shall be effective and perfected upon entry of the Order, without the necessity
of the execution, recordation of filings by the Debtors of security agreements, control agreements, pledge agreements, financing
statements or other similar documents, or the possession or control by the Administrative Agent, of, or over, any Collateral, as
set forth in the Order.

 

(d) Each Loan Party that is a Debtor hereby
confirms and acknowledges that, pursuant to the Order , the Liens in favor of the Administrative Agent on behalf of and for the
benefit of the Secured Parties in all of the Collateral, now existing or hereafter acquired, shall be created and perfected without
the recordation or filing in any land records or filing offices of any mortgage, assignment or similar instrument.

 

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Section 5.04.       
Information Regarding Collateral.

 

(a)           
The Borrowers will furnish to the Administrative Agent promptly (and in any event within 15 days thereof (or such longer
period as the Administrative Agent may agree)) written notice of any change in (i) the legal name of any Loan Party, as set
forth in its organizational documents, (ii) the jurisdiction of organization or the form of organization of any Loan Party
(including as a result of any merger or consolidation), (iii) the location of the chief executive office of any Loan Party
or (iv) the organizational identification number, if any, and the Federal Taxpayer Identification Number of such Loan Party,
in each case, only with respect to any Loan Party organized under the laws of a jurisdiction that requires such information to
be set forth on the face of a UCC financing statement, of such Loan Party. The Borrowers also agree promptly to notify the Administrative
Agent if any material portion of the Collateral is damaged or destroyed.

 

(b)           If
any material assets are acquired by any Loan Party after the Effective Date (other than assets constituting Collateral under
the Collateral Documents that become subject to the Lien of the Collateral Documents upon the acquisition thereof), the
Borrowers will promptly notify the Administrative Agent thereof and will cause such assets to be subjected to a Lien securing
the Loan Document Obligations and will take such actions as shall be necessary or reasonably requested by the Administrative
Agent to satisfy the Collateral and Guarantee Requirement, including to grant and perfect such Lien, all at the expense of
the Borrowers. It is understood and agreed that, notwithstanding anything to the contrary set forth in this Agreement or in
any Collateral Document, the Loan Parties shall not be required to (A) grant leasehold mortgages, (B) obtain
landlord lien waivers, estoppels, collateral access agreements or bailee agreements, except to the extent delivered pursuant
to the ABL Credit Agreement or related loan documents, (C) enter into Control Agreements in respect of any Excluded
Deposit Account, (D) perfect security interests in any assets represented by a certificate of title or (E) enter into any
Collateral Documents governed by the law of a jurisdiction other than the United States.

 

(c)           
If, despite the restrictions set forth in Section 6.02, the Company or any Subsidiary shall grant a Lien on any of
its assets to secure Indebtedness under the ABL Credit Agreement, the Pre-Petition ABL Credit Agreement and the Secured Obligations
are not secured by a Lien on such assets, the Company will (i) promptly notify the Administrative Agent and cause such assets
to be subjected to a Lien securing the Secured Obligations and (ii) take, or cause such Subsidiary to take, as the case may be,
such actions as shall be necessary or reasonably requested by the Administrative Agent to satisfy the Collateral and Guarantee
Requirement, including to grant and perfect such Lien, and to cause such Liens securing Indebtedness under the ABL Credit
Agreement thereof and such Liens securing the Secured Obligations to become subject to the Intercreditor Agreement, all at the
expense of the Loan Parties.

 

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Section 5.05.       
Existence; Conduct of Business. Subject to any required approval by the Court, each Borrower will, and will
cause each Restricted Subsidiary to, do or cause to be done all things reasonably necessary to preserve, renew and keep in full
force and effect (i) its legal existence and (ii) the rights, licenses, permits, privileges, franchises, patents, copyrights,
trademarks and trade names material to the conduct of its business, except in the case of clause (ii) where failure to do
so, individually or in the aggregate, would not reasonably be expected to result in a Material Adverse Effect; provided
that the foregoing shall not prohibit any merger, consolidation, liquidation, dissolution, disposition or other transaction permitted
under Section 6.03 or 6.05.

 

Section 5.06.       
Payment of Obligations. To the extent permitted by the Order and the terms thereof, each Borrower will, and
will cause each Restricted Subsidiary to, pay or discharge all its material obligations, including material Tax liabilities (whether
or not shown on a Tax return), before the same shall become delinquent or in default, subject to the Approved Budget (and the Permitted
Variances provided for therein)except where (a) (i) the validity or amount thereof is being contested in good faith by appropriate
proceedings, (ii) the Parent Borrower or such Restricted Subsidiary has set aside on its books reserves with respect thereto
to the extent required by GAAP and (iii) such contest effectively suspends collection of the contested obligation and the
enforcement of any Lien securing such obligation or (b) the failure to make payment would not, individually or in the aggregate,
reasonably be expected to result in a Material Adverse Effect.

 

Section 5.07.        Maintenance
of Properties. Each Borrower will, and will cause each Restricted Subsidiary to, keep and maintain all property material
to the conduct of its business in good working order and condition, ordinary wear and tear excepted, except where the failure
to do so, individually or in the aggregate, would not reasonably be expected to result in a Material Adverse Effect.

 

Section 5.08.       
Insurance. Each Borrower will, and will cause each Restricted Subsidiary to, maintain, with financially sound
and reputable insurance companies, insurance in such amounts (with no greater risk retention) and against such risks as are customarily
maintained by companies of established repute engaged in the same or similar businesses operating in the same or similar locations.
Each such policy of liability or casualty insurance maintained by or on behalf of Loan Parties shall (a) in the case of each
liability insurance policy (other than workers’ compensation, director and officer liability or other policies in which such
endorsements are not customary), name the Administrative Agent, on behalf of the Secured Parties, as an additional insured thereunder
and (b) in the case of each casualty insurance policy, contain a loss payable clause or endorsement that names the Administrative
Agent, on behalf of the Secured Parties, as a loss payee thereunder, and the Borrowers will use commercially reasonable efforts
to have each such policy provide for at least 30 days’ (or such shorter number of days as may be agreed to by the Administrative
Agent) prior written notice to the Administrative Agent of any cancellation of such policy.

 

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Section 5.09.       
Books and Records; Inspection and Rights. Each Borrower will, and will cause each Restricted Subsidiary to,
(a) keep proper books of record and account in which full, true and correct (in all material respects) entries in accordance
with GAAP and applicable law are made of all dealings and transactions in relation to its business and activities and (b) permit
any representatives designated by the Administrative Agent or any Lender (to the extent accompanying the Administrative Agent or
any designated representative thereof) (including employees of the Administrative Agent, any Lender or any consultants, accountants,
lawyers and appraisers retained by the Administrative Agent), upon reasonable prior notice (but in no event more than once each
fiscal year of the Parent Borrower unless an Event of Default has occurred and is continuing), to visit and inspect its properties,
to examine and make extracts from its books and records and to discuss its affairs, finances and condition with its officers and,
accompanied by one or more such officers or their designees if requested by the Borrowers, independent accountants, all at such
reasonable times during normal business hours and as often as reasonably requested. The Borrowers shall have the right to have
a representative present at any and all inspections.

 

Section 5.10.       
Compliance with Laws. Each Borrower will, and will cause each Restricted Subsidiary to, comply with all laws
(including Environmental Laws and orders of any Governmental Authority) applicable to it or its property, except (i) where the
failure to do so, individually or in the aggregate, would not reasonably be expected to result in a Material Adverse Effect or
(ii) to the extent subject to the Automatic Stay.

 

Section 5.11.       
Bankruptcy Matters.

 

(a)         cause
all proposed (i) “first day” and “second day” (if applicable) orders on a final basis, (ii) orders
(other than the Order) related to or affecting the Loans and other Obligations and the Loan Documents, any other financing or
use of cash collateral, any sale or other disposition of Collateral outside the ordinary course, cash management, adequate
protection, any Plan of Reorganization and/or any disclosure statement related thereto, (iii) orders concerning the financial
condition of the Borrowers or any of their respective Restricted Subsidiaries or other Indebtedness of the Loan Parties or
seeking relief under section 363, 365, 1113 or 1114 of the Bankruptcy Code or section 9019 of the Federal Rules of Bankruptcy
Procedure, and (iv) orders establishing procedures for administration of the Cases or approving significant transactions
submitted to the Court, in each case, proposed by the Loan Parties to be in accordance with and permitted by the terms of
this Agreement and reasonably acceptable to the Required Lenders in their reasonable discretion in all respects, it being
understood and agreed that the forms of orders approved by the Required Lenders (and with respect to any provision that
affects the rights, obligations, liabilities or duties of the Administrative Agent) prior to the Petition Date are in
accordance with and permitted by the terms of this Agreement and are reasonably acceptable in all respects;

 

(b)        
comply in a timely manner with their obligations and responsibilities as debtors in possession under the Order; and

 

(c)        
except as otherwise permitted by an Acceptable Plan or this Agreement, provide prior written notice as soon as reasonably
practicable to the Required Lenders prior to any assumption or rejection of any Loan Party’s or any Subsidiary’s material
contracts or material non-residential real property leases pursuant to Section 365 of the Bankruptcy Code.

 

(d)        
deliver to the Administrative Agent all documents required to be delivered to creditors under the RSA, any applicable restructuring
support agreement or any case stipulation; provided that the Borrower shall not be required to deliver any such documents
provided by any party in interest to the extent that any such document is filed under seal; provided, further, that
such documents that are filed under seal, to the extent permitted by applicable law, shall be provided to the advisors to the Administrative
Agent on a professional eyes’ only basis.

 

(e)        
comply with each of the Required Milestones contained on Schedule 5.11 upon the terms and at the times provided for
therein.

 

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Section 5.12.       
Maintenance of Ratings. The Borrowers will use commercially reasonable efforts to obtain a rating of the credit
facilities created hereunder by each of S&P and Moody’s within 15 days of the Effective Date, it being understood that
there is no obligation to maintain any particular rating at any time.

 

Section 5.13.       
[Reserved].

 

Section 5.14.       
[Reserved].

 

Section 5.15.       
Conference Calls. The Borrowers will hold and participate in:

 

(a) a monthly conference call for
Lenders to discuss financial information delivered pursuant to Section 5.01. The Borrowers will hold such conference
call following the delivery of the required financial information for such month pursuant to Section 5.01(c) and not
later than two Business Days from the time the Borrowers are required to deliver the financial information as set forth in
Section 5.01(c).

 

(b) weekly conference calls for the Ad Hoc
Committee Advisors to discuss financial information delivered pursuant to Section 5.01(f).

 

Such monthly and weekly calls will occur as
a standing appointment at a time to be mutually agreed upon by the Borrowers and the Lenders or the Ad Hoc Committee Advisors,
as applicable.

 

Article VI

 

Negative
Covenants

 

Until the Commitments shall have expired
or been terminated, the principal of and interest on each Loan and all premiums and fees payable hereunder shall have been paid
in full, each Borrower covenants and agrees with the Lenders that:

 

Section 6.01.       
Indebtedness; Certain Equity Securities.

 

Neither Borrower will, nor will it permit
any Restricted Subsidiary to, create, incur, assume or permit to exist any Indebtedness, except:

 

(a)           
Indebtedness created under the Loan Documents (including, for the avoidance of doubt, the Carve Out) and the Pre-Petition
Loan Documents;

 

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(b)          
Indebtedness existing on the date hereof and set forth on Schedule 6.01;

 

(c)          
unsecured Indebtedness of the Parent Borrower to any Restricted Subsidiary and of any Restricted Subsidiary to the Parent
Borrower or any other Restricted Subsidiary; provided that (i) such Indebtedness shall not have been transferred to
any Person other than the Parent Borrower or any Restricted Subsidiary, (ii) any such Indebtedness owing by any Loan Party
to a Restricted Subsidiary that is not a Loan Party shall be unsecured and subordinated in right of payment to the Loan Document
Obligations and the Pre-Petition Lender Obligations and (iii) any such Indebtedness shall be incurred in compliance with Section 6.04;

 

(d)          
Guarantees incurred in compliance with Section 6.04;

 

(e)          
Indebtedness of the Parent Borrower or any Restricted Subsidiary (i) incurred to finance the acquisition, construction
or improvement of any fixed or capital assets, including Capital Lease Obligations and Synthetic Lease Obligations, provided
that such Indebtedness is incurred prior to or within 270 days after such acquisition or the completion of such construction
or improvement and the principal amount of such Indebtedness does not exceed the cost of acquiring, constructing or improving such
fixed or capital assets or (ii) assumed in connection with the acquisition of any fixed or capital assets; provided
that the aggregate principal amount of Indebtedness permitted by this clause (e) at the time of incurrence thereof shall not
exceed $1,000,000;

 

(f)           
 Indebtedness in respect of netting services, overdraft protections and deposit and checking accounts, in each case, in
the ordinary course of business;

 

(g)          
Indebtedness in respect of letters of credit, bank guarantees and similar instruments issued for the account of the Parent
Borrower or any Restricted Subsidiary in the ordinary course of business supporting obligations under workers’ compensation,
health, disability, unemployment insurance and other social security laws;

 

(h)          
Indebtedness expressly permitted by the Approved Budget (including with respect to any Permitted Variances);

 

(i)           
[reserved];

 

(j)           
Indebtedness under (i) the Pre-Petition ABL Credit Agreement and (ii) if applicable, the ABL Credit Agreement in an aggregate
principal amount not to exceed $400,000,000 at any time outstanding;

 

(k)          
Indebtedness of Loan Parties in respect of surety bonds (whether bid, performance, appeal or otherwise) and performance
and completion guarantees and other obligations of a like nature, in each case incurred in the ordinary course of business;

 

(l)           
[reserved];

 

(m)         
[reserved];

 

(n)          
[reserved];

 

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(o)          
[reserved];

 

(p)          
other unsecured Indebtedness in an aggregate principal amount not to exceed at the time of incurrence thereof $4,000,000;

 

(q)          
Indebtedness consisting of (i) the financing of insurance premiums and (ii) take-or-pay obligations contained
in supply arrangements, in each case, in the ordinary course of business;

 

(r)           
obligations under any agreement governing the provision of treasury or cash management services, including deposit accounts,
overnight draft, credit cards, debit cards, p-cards (including purchasing cards and commercial cards), funds transfer, automated
clearinghouse, zero balance accounts, returned check concentration, controlled disbursement, lockbox, account reconciliation and
reporting and trade finance services and other cash management services; and

 

(s)          
Indebtedness in the form of Swap Agreements permitted under Section 6.07.

 

The accrual of
interest, the accretion of accreted value and the payment of interest or dividends in the form of additional Indebtedness or
Disqualified Stock, as applicable, the accretion of original issue discount, the accretion of liquidation preference and
increases in the amount of Indebtedness outstanding solely as a result of fluctuations in the exchange rate of currencies
shall not be deemed to be an incurrence of Indebtedness or Disqualified Stock for purposes of this Section 6.01.

 

Section 6.02.       
Liens. Neither Borrower will, nor will it permit any Restricted Subsidiary to, create, incur, assume or permit
to exist any Lien on any asset now owned or hereafter acquired, except:

 

(a)          
(i) Liens granted by the Order (including the Carve Out), (ii) Liens created under the Loan Documents or the Pre-Petition
Loan Documents;

 

(b)          
Permitted Encumbrances;

 

(c)          
any Lien on any asset of the Parent Borrower or any Restricted Subsidiary existing on the date hereof and set forth on Schedule 6.02;
provided that (i) such Lien shall not apply to any other asset of the Parent Borrower or any Restricted Subsidiary
and (ii) such Lien shall secure only those obligations that it secures on the date hereof and any extensions, renewals and
refinancing thereof that do not increase the outstanding principal amount thereof;

 

(d)          
[reserved];

 

(e)          
Liens on fixed or capital assets acquired, constructed or improved by the Parent Borrower or any Restricted Subsidiary;
provided that (i) such Liens secure only Indebtedness permitted by Section 6.01(e) and obligations relating thereto
not constituting Indebtedness and (ii) such Liens shall not apply to any other asset of the Parent Borrower or any Restricted
Subsidiary (other than the proceeds and products thereof); provided further that in the event purchase money obligations
are owed to any Person with respect to financing of more than one purchase of any fixed or capital assets, such Liens may secure
all such purchase money obligations and may apply to all such fixed or capital assets financed by such Person;

 

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(f)           
in connection with the sale or transfer of any Equity Interests or other assets in a transaction permitted under Section 6.05,
customary rights and restrictions contained in agreements relating to such sale or transfer pending the completion thereof, solely
to the extent such sale or transfer would have been permitted on the date of the creation of such Lien;

 

(g)          
in the case of (i) any Restricted Subsidiary that is not a wholly-owned Restricted Subsidiary or (ii) the Equity Interests
in any Person that is not a Restricted Subsidiary, any encumbrance or restriction, including any put and call arrangements, related
to Equity Interests in such Restricted Subsidiary or such other Person set forth in the organizational documents of such Restricted
Subsidiary or such other Person or any related joint venture, shareholders’ or similar agreement, in each case, so long as
such encumbrance or restriction is in existence on the Petition Date;

 

(h)          
Liens solely on any cash deposits, escrow arrangements or similar arrangements made by the Parent Borrower or any Restricted
Subsidiary in connection with any letter of intent or purchase agreement for a transaction permitted hereunder;

 

(i)           
 Liens on the Collateral securing Indebtedness permitted by Section 6.01(j) and obligations relating thereto not constituting
Indebtedness; provided that any such Liens are subject to (x) the Order and (y), if such Liens are on assets of the Loan
Parties, the Intercreditor Agreement;

 

(j)           
any Lien on assets of any Foreign Subsidiary (other than any Luxembourg IP Subsidiary); provided that such Lien shall
secure only Indebtedness of such Foreign Subsidiary permitted by Section 6.01 and obligations relating thereto not constituting
Indebtedness;

 

(k)          
other Liens securing Indebtedness or other obligations in an aggregate principal amount at the time of incurrence of such
Indebtedness or other obligations not to exceed $1,000,000;

 

(l)           
non-exclusive licenses of intellectual property granted in the ordinary course of business; and

 

(m)         
Liens in favor of the Pre-Petition Lenders as adequate protection granted pursuant to the Orders.

 

Section 6.03.       
Fundamental Changes; Business Activities.

 

(a)          
Neither Borrower will, nor will it permit any Restricted Subsidiary to, merge into or consolidate with any other Person,
or permit any other Person to merge or consolidate with it, or liquidate or dissolve, except that, if at the time thereof and immediately
after giving effect thereto no Default shall have occurred and be continuing, (i) any Restricted Subsidiary may (x) merge
into the Parent Borrower in a transaction in which the Parent Borrower is the surviving entity and (y) merge into the Subsidiary
Borrower in a transaction in which the Subsidiary Borrower is the surviving entity, (ii) any Person (other the Parent Borrower
or the Subsidiary Borrower) may merge into or consolidate with any Restricted Subsidiary in a transaction in which the surviving
entity is a Restricted Subsidiary and, if any party to such merger or consolidation is a Loan Party, a Loan Party, (iii) [reserved]
and (iv) any Restricted Subsidiary (other than the Subsidiary Borrower) may liquidate or dissolve if the Borrowers determine
in good faith that such liquidation or dissolution is in the best interests of the Borrowers and is not materially disadvantageous
to the Lenders; provided that any such merger or consolidation involving a Person that is not a wholly-owned Restricted
Subsidiary immediately prior to such merger or consolidation shall not be permitted unless it is also permitted by Section 6.04.

 

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(b)          
Neither Borrower will, nor will it permit any of its Restricted Subsidiaries to, engage to any material extent in any business
other than businesses of the type conducted by the Parent Borrower and the Restricted Subsidiaries on the date hereof and businesses
reasonably related or complementary thereto.

 

Section 6.04.       
Investments, Loans, Advances, Guarantees and Acquisitions. Neither Borrower will, nor will it permit any Restricted
Subsidiary to, purchase, hold, acquire (including pursuant to any merger or consolidation), make or otherwise permit to exist any
Investment in any other Person, except:

 

(a)          
 Investments in cash and Cash Equivalents;

 

(b)          
Investments existing on the date hereof or contractually committed to as of the date hereof and set forth on Schedule 6.04
and any extensions thereof (but not any additions thereto (including any capital contributions) made after the date hereof) ;

 

(c)          
Investments by the Parent Borrower and the Restricted Subsidiaries in Equity Interests in their respective subsidiaries;
provided that (i) such subsidiaries are Subsidiaries prior to such Investments, and (ii) in the case of any such Investments by
the Loan Parties in, and loans and advances by the Loan Parties to, Restricted Subsidiaries that are not Loan Parties (excluding
all such Investments, loans, advances and Guarantees existing on the date hereof and permitted by clause (b) above), (A) the aggregate
amount of all such Investments (including loans and advances) permitted pursuant to this clause (c) and pursuant to clauses (d)
and (e) below, taken together, shall not exceed $10,000,000 and (B) in each case, all such Investments (including loans and advances)
shall be (x) made in the ordinary course of business, (y), solely in connection with the operational and compliance needs of the
Parent Borrower and its Restricted Subsidiaries and (z) permitted by the Approved Budget (subject to Permitted Variance);

 

(d)          
loans or advances made by the Parent Borrower to any Restricted Subsidiary or made by any Restricted Subsidiary to the Parent
Borrower or any other Restricted Subsidiary; provided that (i) the Indebtedness resulting therefrom is permitted by
Section 6.01(c) and (ii) the amount of such loans and advances made by the Loan Parties to Restricted Subsidiaries that
are not Loan Parties shall be subject to the limitation set forth in clause (c) above and shall be permitted by the Approved
Budget (subject to Permitted Variance);

 

    75 

     

    

 

(e)          
Guarantees by the Parent Borrower or any Restricted Subsidiary of Indebtedness or other obligations of the Parent Borrower
or any Restricted Subsidiary, solely to the extent (i) arising as a result of any such Person being a joint and several co-applicant
with respect to any letter of credit or letter of guaranty or (ii) of any leases of retail store locations and related obligations
arising thereunder, in each case, in the ordinary course of business; provided that the aggregate amount of Indebtedness
and other obligations of Restricted Subsidiaries that are not Loan Parties that is Guaranteed by any Loan Party shall be subject
to the limitation set forth in clause (c) above and shall be permitted by the Approved Budget (subject to Permitted Variances);

 

(f)           
[reserved];

 

(g)          
Investments received in connection with the bankruptcy or reorganization of, or settlement of delinquent accounts and disputes
with, customers and suppliers, in each case in the ordinary course of business;

 

(h)          
[reserved];

 

(i)           
deposits, prepayments and other credits to suppliers, lessors and landlords made in the ordinary course of business;

 

(j)           
 advances by the Parent Borrower or any Restricted Subsidiary to employees in the ordinary course of business consistent
with past practices for travel and entertainment expenses, relocation costs and similar purposes;

 

(k)          
[reserved];

 

(l)           
Investments in the form of Swap Agreements permitted under Section 6.07;

 

(m)         
investments constituting deposits described in clauses (c) and (d) of the definition of “Permitted Encumbrances”
and endorsements of instruments for collection or deposit in the ordinary course of business;

 

(n)          
other Investments to the extent permitted by and expressly set forth in the Order;

 

(o)          
other Investments in an aggregate amount not to exceed $1,000,000; and

 

(p)          
Investments in respect of actions permitted by Section 6.05(g).

 

For the purposes of this Section, any unreimbursed
payment by the Parent Borrower or any Restricted Subsidiary for goods or services delivered to any Subsidiary shall be deemed to
be an Investment in such Subsidiary.

 

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Section 6.05.       
Asset Sales. Neither Borrower will, nor will it permit any Restricted Subsidiary to, sell, transfer or otherwise
dispose of any asset, including any Equity Interest owned by it, nor will the Parent Borrower permit any Restricted Subsidiary
to issue any additional Equity Interests in such Restricted Subsidiary (other than to the Parent Borrower or any other Restricted
Subsidiary in compliance with Section 6.04, and other than directors’ qualifying shares and other nominal amounts of
Equity Interests that are required to be held by other Persons under applicable law) (each of the foregoing, an “Asset
Sale”), except:

 

(a)          
(i) sales of inventory, (ii) sales, transfers and other dispositions of used, surplus, obsolete or outmoded machinery
or equipment and (iii) contributions of merchandise to charitable organizations, to the extent in the ordinary course of business
and consistent with past practices, (iv) dispositions of Cash Equivalents and (v) use of cash in accordance with the Approved
Budget and pursuant to transactions permitted under this agreement, in each case (other than in the case of clause (iii))
in the ordinary course of business;

 

(b)          
sales, transfers, leases and other dispositions to the Parent Borrower or any Restricted Subsidiary in the ordinary course
of business; provided that any such sales, transfers, leases or other dispositions involving a Restricted Subsidiary that
is not a Loan Party shall be made in compliance with Sections 6.04 and 6.09;

 

(c)          
the sale or discount of accounts receivable arising in the ordinary course of business, but only in connection with the
compromise or collection thereof and not in connection with any financing transaction;

 

(d)          
dispositions of assets subject to any casualty or condemnation proceeding (including in lieu thereof);

 

(e)           
 leases or subleases of real property granted by the Parent Borrower or any Restricted Subsidiary to third Persons not interfering
in any material respect with the business of the Parent Borrower or any Restricted Subsidiary, including, without limitation, retail
store lease assignments and surrenders;

 

(f)           
[reserved];

 

(g)          
in connection with the consolidation of foreign operations of the Parent Borrower and its Subsidiaries, the direct or indirect
transfers or other dispositions by any Restricted Subsidiary of any foreign assets or the Equity Interests of a Foreign Subsidiary
that is a Restricted Subsidiary to (i) with respect to any Luxembourg IP Subsidiary or any non-Loan Party Restricted Subsidiary
with the prior consent of the Required Lenders and (ii) any other Restricted Subsidiary;

 

(h)          
to the extent prior consent of the Required Lenders is received, the elimination or forgiving of intercompany balances in
connection with intercompany restructurings (including dissolutions, liquidations and mergers) between or among the Parent Borrower
and its Restricted Subsidiaries;

 

(i)           
other sales, transfers or dispositions pursuant to an order of the Court which sale, transfer or disposition are consistent
with the Restructuring Support Agreement and the Approved Budget; and

 

(j)           
Specified Dispositions or dispositions expressly identified and provided for in the Approved Budget; and

 

(k)          
sales, transfers and other dispositions of assets that are not permitted by any other clause of this Section in an aggregate
amount equal to a fair market value, as determined by a Responsible Officer of the Parent Borrower reasonably and acting in good
faith, of not more than $1,000,000;

 

provided that all sales, transfers, leases and other
dispositions permitted hereby (other than those permitted by clause (a)(ii), (a)(iii), (b), (c), (d), (g) or (h)) shall be
made for fair value.

 

    77 

     

    

 

Section 6.06.       
Sale/Leaseback Transactions. Neither Borrower will, nor will it permit any Restricted Subsidiary to, enter
into any Sale/Leaseback Transaction, except to the extent such Sale/Leaseback Transaction is entered into in connection with a
Specified Disposition.

 

Section 6.07.       
Swap Agreements. Neither Borrower will, nor will it permit any Restricted Subsidiary to, enter into any Swap
Agreement, other than Swap Agreements entered into in the ordinary course of business to hedge or mitigate risks to which the Parent
Borrower or a Restricted Subsidiary is exposed in the conduct of its business or the management of its liabilities and not for
speculative purposes.

 

Section 6.08.       
Restricted Payments; Certain Payments of Indebtedness.

 

(a)          
Neither Borrower will, nor will it permit any Restricted Subsidiary to, declare or make, or agree to pay or make, directly
or indirectly, any Restricted Payment, or incur any obligation (contingent or otherwise) to do so, except that:

 

(i)             
the Parent Borrower may declare and pay dividends with respect to its Equity Interests payable solely in additional Equity
Interests (other than Disqualified Stock) of the Parent Borrower;

 

(ii)            
any Restricted Subsidiary may declare and pay dividends or make other distributions with respect to its Equity Interests,
or make other Restricted Payments in respect of its Equity Interests, in each case ratably to the holders of such Equity Interests
(or, if not ratably, on a basis more favorable to the Parent Borrower and the Restricted Subsidiaries);

 

(iii)           
the Parent Borrower may make Restricted Payments pursuant to and in accordance with customary stock option plans or other
equity or benefit plans for management or employees of the Parent Borrower and the Restricted Subsidiaries in effect from time
to time;

 

(iv)           
Restricted Payments made by any Restricted Subsidiary to another non-Restricted Subsidiary
to consummate transactions that would otherwise be permitted by Section 6.04(c);

 

(v)            
the Parent Borrower may make cash payments in lieu of the issuance of fractional shares representing insignificant interests
in the Parent Borrower in connection with the exercise of warrants, options or other securities convertible into or exchangeable
for shares of common stock in the Parent Borrower;

 

    78 

     

    

 

(vi)           
Restricted Payments to Parent Borrower on or around and upon the execution and effectiveness of the RSA to pay fees and
expenses in accordance therewith;

 

(vii)          
[reserved]; and

 

(viii)         
Restricted Payments made to consummate the transactions permitted by Section 6.05(g).

 

(b)          
Neither Borrower will, nor will it permit any Restricted Subsidiary to, make or agree to pay or make, directly or indirectly,
any payment or other distribution (whether in cash, securities or other property), including any sinking fund or similar deposit,
on account of the purchase, redemption, retirement, acquisition, cancellation or termination of any Specified Indebtedness, except:

 

(i)             
[reserved];

 

(ii)            
[reserved];

 

(iii)           
 [reserved];

 

(iv)           
[reserved];

 

(v)            
[reserved];

 

(vi)           
payments to the extent provided for in the Approved Budget (including Permitted Variances thereto) and permitted by the
Order, as applicable; and

 

(vii)          
[reserved].

 

(c)          
Neither Borrower will, nor will it permit any of the Restricted Subsidiaries to amend, modify or change in any manner adverse
to the interests of the Lenders any term or condition of any documentation governing Specified Indebtedness; provided that immaterial
amendments of an administrative, ministerial or technical nature may be made so long as contemporaneous written notice thereof
is provided to the Administrative Agent.

 

Section 6.09.       
Transactions with Affiliates. Neither Borrower will, nor will it permit any Restricted Subsidiary to, sell,
lease, license or otherwise transfer any assets to, or purchase, lease, license or otherwise acquire any assets from, or otherwise
engage in any other transactions with, any of its Affiliates, except (a) transactions on terms and conditions not less favorable
to the Parent Borrower or such Restricted Subsidiary than those that would prevail in an arm’s-length transaction with unrelated
third parties, (b) transactions between or among the Parent Borrower and the Restricted Subsidiaries, (c) any Restricted
Payment permitted by Section 6.08 or Investments permitted pursuant to Section 6.04(j), (d) the payment of reasonable
fees and compensation to, and the providing of reasonable indemnities on behalf of, directors and officers of the Parent Borrower
or any Restricted Subsidiary, as determined by the board of directors of the Parent Borrower in good faith, (e) employment contracts
or subscription, put/call arrangements with employees, officers or directors, (f) transactions necessary to make adequate protection
payments on account of secured Pre-Petition Indebtedness pursuant to the Order and (g) the transactions described on Schedule
6.09.

 

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Section 6.10.       
Restrictive Agreements.

 

(a) Neither
Borrower will, nor will it permit any Restricted Subsidiary to, directly or indirectly, enter into, incur or permit to exist
any agreement or other arrangement that restricts or imposes any condition upon (1) the ability of the Parent Borrower
or any Restricted Subsidiary to create, incur or permit to exist any Lien upon any of its assets to secure the Loan Document
Obligations or (2) the ability of any Restricted Subsidiary to pay dividends or other distributions with respect to its
Equity Interests or to make or repay loans or advances to the Parent Borrower or to Guarantee the Loan Agreement; provided
that (i) the foregoing shall not apply to (A) restrictions and conditions imposed by law or by any Loan Document,
(B) restrictions and conditions existing on the Effective Date identified on Schedule 6.10 (but shall apply to any
amendment or modification expanding the scope of any such restriction or condition), (C) customary restrictions and
conditions contained in agreements relating to the sale of a Subsidiary pending such sale, provided that such
restrictions and conditions apply only to the Subsidiary that is to be sold and such sale is permitted hereunder, (D) in
the case of any Restricted Subsidiary that is not a wholly-owned Restricted Subsidiary, restrictions and conditions imposed
by its organizational documents or any related joint venture or similar agreement, provided that such restrictions and
conditions apply only to such Restricted Subsidiary and to any Equity Interests in such Restricted Subsidiary,
(E) restrictions and conditions set forth in the Pre-Petition Credit Agreement, Pre-Petition ABL Credit Agreement and,
to the extent applicable, the ABL Credit Agreement, (F) restrictions and conditions imposed by agreements relating to
Indebtedness of Restricted Subsidiaries that are not Loan Parties permitted under Section 6.01 and (G) restrictions
and conditions imposed on cash to secure letters of credit and other segregated deposits that are permitted pursuant to
Section 6.02(h), provided that such restrictions and conditions apply only to such Restricted Subsidiaries that
are not Loan Parties, (ii) clause (a) of the foregoing shall not apply to (A) restrictions or conditions
imposed by any agreement relating to secured Indebtedness permitted by Section 6.01(e) if such restrictions or
conditions apply only to the assets securing such Indebtedness and (B) customary provisions in leases and other
agreements restricting the assignment thereof and (iii) clause (b) of the foregoing shall not apply to restrictions
and conditions imposed by agreements relating to Indebtedness of any Restricted Subsidiary in existence at the time such
Restricted Subsidiary became a Restricted Subsidiary and otherwise permitted under Section 6.01 (but shall apply to any
amendment or modification expanding the scope of, any such restriction or condition), provided that such restrictions
and conditions apply only to such Restricted Subsidiary.

 

(b) Except as permitted pursuant to the
terms of this Agreement and the Order or otherwise consented to by the Required Lenders:

 

(i) Make or permit to be
made any change, amendment or modification, or any application or motion for any change, amendment or modification, to the
Order that is adverse to the Lenders.

 

(ii) Incur, create, assume or
suffer to exist or permit any other superpriority claim which is pari passu with or senior to the DIP Superpriority Claims of the
Administrative Agent, and the Lenders hereunder, except for the Carve Out and, subject to the Intercreditor Agreement, the ABL
Credit Agreement to the extent applicable.

 

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Section 6.11.       
Amendment of Organizational Documents. Neither Borrower will, nor will it permit any Restricted Subsidiary
to, amend, modify or waive any of its rights under its certificate of incorporation, by-laws or other organizational documents,
in either case, to the extent such amendment, modification or waiver would be adverse to the rights or interests of the Lenders
hereunder or under any other Loan Document; provided that immaterial amendments of an administrative, ministerial or technical
nature may be made so long as contemporaneous written notice thereof is provided to the Administrative Agent.

 

Section 6.12.       
Financial Covenants 

 

(a) The Parent Borrower will not permit
Liquidity at any time to be less than $100,000,000.

 

(b) Commencing after the end of the
3rd week following the Effective Date, and solely to the extent that Liquidity is less than $150,000,000, the Parent Borrower
will not permit any negative variance between the Actual Net Cash Flow Amount for any Cumulative Four-Week Period and the
Budgeted Net Cash Flow Amount for such Cumulative Four-Week Period to be greater than 20%.

 

(c) The Parent Borrower will not permit
the amount of cash and Cash Equivalents of non-Loan Party Subsidiaries as of the end of the day on Friday of each calendar week
on deposit in or credited to any account maintained by non-Loan Party Subsidiaries to exceed $45,000,000 in the aggregate for all
non-Loan Party Subsidiaries, excluding from such covenant any payments made (or to be made) from the Maurice business segments
or entities.

 

Section 6.13.       
Accounting Changes. The Parent Borrower will not make any change in the Parent Borrower’s fiscal quarter
or fiscal year other than as required pursuant to GAAP.

 

Section 6.14.       
Sanctions. The Parent Borrower and its Subsidiaries will not, directly or indirectly, use the proceeds of
any Borrowing, or lend, contribute or otherwise make available such proceeds to any Subsidiary, joint venture partner or other
individual or entity, to fund any activities of or business with any individual or entity, or in any Designated Jurisdiction, that,
at the time of such funding, is the subject of Sanctions, or in any other manner that will result in a violation by an individual
or entity (including any individual or entity participating in the transaction, whether as Lender, Administrative Agent, or otherwise)
of Sanctions.

 

Section 6.15.       
Anti-Corruption Laws. The Parent Borrower and its Subsidiaries will not, directly or indirectly, use the proceeds
of any Borrowing for any purpose which would breach any Anti-Corruption Laws.

 

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Article VII

 

Events
of Default

 

If any of the following events (“Events
of Default”) shall occur:

 

(a)          
the Borrowers shall fail to pay any principal of any Loan when and as the same shall become due and payable, whether at
the due date thereof or at a date fixed for prepayment thereof or otherwise;

 

(b)          
the Borrowers shall fail to pay any interest on any Loan or any fee, premium (including the Redemption Premium, if any)
or any other amount (other than an amount referred to in clause (a) of this Article) payable under this Agreement, when and
as the same shall become due and payable, and such failure shall continue unremedied for a period of three Business Days;

 

(c)            any
representation, warranty or certification made or deemed made by the Parent Borrower or any Restricted Subsidiary in this
Agreement or any other Loan Document or any amendment or modification thereof or waiver thereunder, or in any report,
certificate, financial statement or other document furnished pursuant to or in connection with this Agreement or any other
Loan Document or any amendment or modification thereof or waiver thereunder, shall prove to have been materially incorrect
when made or deemed made (or, in the case of any representation or warranty qualified by materiality, incorrect);

 

(d)          
the Borrowers shall fail to observe or perform any covenant, condition or agreement contained in Section 5.01, 5.02(a),
5.03 or 5.05 (with respect to the existence of any Borrower), 5.11 (including the Required Milestones) or in Article VI;

 

(e)          
any Loan Party shall fail to observe or perform any covenant, condition or agreement contained in this Agreement or any
other Loan Document (other than those specified in clause (a), (b) or (d) of this Article), and such failure shall continue
unremedied for a period of 7 Business Days after receipt of written notice thereof from the Administrative Agent;

 

(f)           
except as a result of commencement of the Cases or entry into this Agreement, and, to the extent applicable, the ABL Credit
Agreement, unless the payment, acceleration and/or the exercise of remedies with respect to any such Indebtedness is stayed by
the Court or unless any of the following results from obligations with respect to which the Court prohibits or does not permit
any Loan Party from applicable compliance, the Parent Borrower or any Restricted Subsidiary shall fail to make any payment (whether
of principal, interest, termination payment or other payment obligation and regardless of amount) in respect of any Material Indebtedness
(other than the Loan Document Obligations) when and as the same shall become due and payable (after giving effect to any applicable
grace period);

 

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(g)          
except as a result of commencement of the Cases or entry into this Agreement and, to the extent applicable, the ABL Credit
Agreement, unless the payment, acceleration and/or the exercise of remedies with respect to any such Indebtedness is stayed by
the Court or unless any of the following results from obligations with respect to which the Court prohibits or does not permit
any Loan Party from applicable compliance, (i) any event or condition shall occur that results in any Material Indebtedness becoming
due, or being terminated or required to be prepaid, repurchased, redeemed or defeased, prior to its scheduled maturity, or that
enables or permits (with the giving of notice, if required) the holder or holders of any Material Indebtedness or any trustee or
agent on its or their behalf, or, in the case of any Swap Agreement, the applicable counterparty, to cause any Material Indebtedness
to become due, or to terminate or to require the prepayment, repurchase, redemption or defeasance thereof, prior to its scheduled
maturity; provided that this clause (g) shall not apply to (i) any secured Indebtedness that becomes due as a
result of the voluntary sale or transfer of the assets securing such Indebtedness or (ii) any Indebtedness that becomes due
as a result of a voluntary refinancing thereof permitted under Section 6.01; provided, further, that no such
event under the Pre-Petition ABL Credit Agreement or the ABL Credit Agreement, as applicable, shall constitute an Event of Default
under this clause (g) until the earliest to occur of (x) 5 days after the date of such Event of Default (during
which period such Event of Default is not waived or cured), (y) the acceleration of the Indebtedness under the Pre-Petition
ABL Credit Agreement or the ABL Credit Agreement, as applicable, and (z) the exercise of remedies by the ABL Agent in respect
of a material portion of the ABL Priority Collateral, to the extent applicable;

 

(h)          
[reserved];

 

(i)           
[reserved];

 

(j)           
 [reserved];

 

(k)          
except for any order fixing the amount of any Claim in the Cases, one or more judgments for the payment of money in an aggregate
amount in excess of $10,000,000 (to the extent not covered by independent third-party insurance as to which the insurer has been
notified of such judgment and has not denied coverage) shall be rendered against the Parent Borrower or any Restricted Subsidiary,
or any combination thereof, and the same shall remain undischarged for a period of 15 consecutive days during which execution
shall not be effectively stayed, or any action shall be legally taken by a judgment creditor to attach or levy upon any assets
of the Parent Borrower or any Restricted Subsidiary to enforce any such judgment;

 

(l)           
one or more ERISA Events shall have occurred that would, individually or in the aggregate, reasonably be expected to result
in a Material Adverse Effect;

 

(m)         
a Change in Control shall occur;

 

(n)          
any Loan Document, at any time after its execution and delivery and for any reason other than as expressly permitted hereunder,
satisfaction in full of all the Loan Document Obligations (other than contingent indemnification claims) or any act or omission
by the Administrative Agent or any Lender, ceases to be in full force and effect; or any Loan Party contests in any manner the
validity or enforceability of any Loan Document; or any Loan Party denies that it has any or further liability or obligation under
any Loan Document, or purports to revoke, terminate or rescind any Loan Document; and

 

(o)          
any Lien purported to be created under any Collateral Document and the Order shall cease to be, or shall be asserted by
any Loan Party not to be, a valid and perfected Lien on any material Collateral, with the priority required by the applicable Collateral
Document, except (i) as a result of the sale or other disposition of the applicable Collateral in a transaction permitted
under the Loan Documents to a Person that is not a Loan Party, (ii) the release thereof as provided in the applicable Collateral
Document or Section 9.16 or consented to under Section 9.02, (iii) as a result of the failure of the Administrative Agent
to (A) maintain possession of any stock certificates, promissory notes or other instruments delivered to it under the Collateral
Agreement or (B) continue in accordance with applicable law the effectiveness of any UCC financing statement or (iv) as to
Collateral constituting real property, to the extent such losses are covered by Lender’s title insurance policy and such
insurer has not denied coverage;

 

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(p)          
the RSA is terminated for any reason, or is modified, amended or waived in any manner materially adverse to the Secured
Parties without the prior consent of the Required Lenders (or the Administrative Agent at the direction of the Required Lenders);

 

(q)           any
Loan Party shall file a motion in the Cases without the express written consent of the Required Lenders (or the
Administrative Agent at the direction of the Required Lenders), (i) to obtain additional financing under Section 364(d) of
the Bankruptcy Code not otherwise permitted under this Agreement or (ii) except as provided in the Order, as the case may be,
to use cash collateral of a Lender under Section 363(c) of the Bankruptcy Code that does not either have the prior written
consent of the Required Lenders (or the Administrative Agent acting at the direction of the Required Lenders) or provide for
the payment of the Loan Document Obligations in full and in cash upon the incurrence of such additional financing;

 

(r)           
an order with respect to any of the Cases shall be entered by the Court (i) appointing a trustee under Section 1104, (ii)
appointing an examiner with enlarged powers relating to the operation of the business (powers beyond those set forth in section
1106(a)(3) and (4) of the Bankruptcy Code) under Section 1106(b) of the Bankruptcy Code, or (iii) converting the Cases to
cases under Chapter 7 of the Bankruptcy Code;

 

(s)          
an order shall be entered by the Court dismissing any of the Cases which does not contain a provision for termination of
all Commitments, and payment in full in cash of all Loan Document Obligations upon entry thereof;

 

(t)           
an order with respect to any of the Cases shall be entered by the Court without the express prior written consent of the
Required Lenders (and with respect to any provisions that affect the rights or duties of the Administrative Agent, the Administrative
Agent), with such consent not to be unreasonably withheld, conditioned or delayed, (i) to revoke, reverse, stay, modify, supplement
or amend the Order in a manner adverse to the Lenders and/or the Administrative Agent or (ii) to permit, unless otherwise
contemplated by the Order, any administrative expense or any Claim (now existing or hereafter arising, of any kind or nature whatsoever)
to have administrative priority equal or superior to the administrative priority of the Loan Parties’ Claims in respect of
the Loan Document Obligations (other than the Carve Out);

 

(u)          
(i) an application for any of the orders described in clause (r) above shall be made by a Loan Party or any such application
shall be made by a Person other than the Loan Parties and such application is not contested by the Loan Parties in good faith or
the relief requested is not withdrawn, dismissed or denied within forty-five (45) days after the filing or (ii) any Person obtains
an order under Section 506(c) of the Bankruptcy Code against the Administrative Agent;

 

(v)          
the entry of an order by the Court terminating or modifying the exclusive right of any Loan Party to file a Plan of Reorganization
pursuant to Section 1121 of the Bankruptcy Code, without the prior written consent of the Required Lenders;

 

(w)         
any Loan Party shall fail to comply with the Order;

 

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(x)             
any order by the Court is entered granting any superpriority claim that is pari passu with or senior to those of the Secured
Parties or any Lien that is senior to the Liens securing the Loan Document Obligations, other than in accordance with the Order;

 

(y)             
the Court enters an order that is adverse in any material respect, when taken as a whole, to the interests of the Administrative
Agent and the Lenders or their respective rights and remedies in their capacities as such under this Agreement or in any of the
Cases;

 

(z)               the
Loan Parties or any of their Subsidiaries, or any person claiming by or through the Loan Parties or any of their
Subsidiaries, obtain court authorization to commence, or commence, join in, assist or otherwise participate as an adverse
party in any suit or other proceeding against any of the Administrative Agent or the Lenders in each case relating to this
Agreement, in each case other than as permitted by the Order;

 

(aa)            
the Court denies confirmation of the Plan, provided, that if the Loan Parties subsequently obtain an order of the Court
approving a plan of reorganization that either (i) proposes to repay in full in cash of all Loan Document Obligations under the
Term Credit Facility, immediately upon the effectiveness thereof, (ii) is, taken as a whole, in form and substance substantially
similar to the Plan of Reorganization or (iii) otherwise is approved by the Required Lenders, an Event of Default shall not occur;

 

(bb)           
The Loan Parties attempts to consummate a sale of substantially all of its assets via a plan of reorganization or a 363
sale without consent of the Required Lenders; or

 

(cc)            
the filing by any of the Loan Parties of a Plan of Reorganization other than an Acceptable Plan;

 

then, notwithstanding anything in Section 362 of the Bankruptcy
Code, but subject to the Order, and in every such event, and at any time thereafter during the continuance of such event, the Administrative
Agent may, and at the request of the Required Lenders shall, by notice to the Borrowers, take either or both of the following actions,
at the same or different times: (i) terminate the Commitments, and thereupon the Commitments shall terminate immediately,
(ii) declare the Loans then outstanding to be due and payable in whole, in which case any principal not so declared to be
due and payable may thereafter be declared to be due and payable), and thereupon the principal of the Loans so declared to be due
and payable, together with accrued interest thereon and all fees, premiums and other obligations of the Borrowers accrued hereunder,
shall become due and payable immediately, in each case without presentment, demand, protest or other notice of any kind, all of
which are hereby waived by the Borrowers and (iii) exercise on behalf of itself and the Lenders all rights and remedies available
to it and the Lenders under the Loan Documents or applicable Law.

 

Article VIII

 

The
Administrative Agent

 

Each of the Lenders hereby irrevocably appoints
the entity named as Administrative Agent in the heading of this Agreement and its successors to serve as administrative agent and
collateral agent under the Loan Documents, and authorizes the Administrative Agent to take such actions on its behalf, including
execution of the other Loan Documents, and to exercise such powers as are delegated to the Administrative Agent by the terms of
the Loan Documents, together with such actions and powers as are reasonably incidental thereto. Without limiting the generality
of the foregoing, each Lender hereby authorizes the Administrative Agent to consent, on behalf of each Lender, to the Order, each
to be negotiated between the Loan Parties, the Administrative Agent, certain other parties and the statutory committees appointed
pursuant to Sections 327 and 1103 of the Bankruptcy Code.

 

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The Person serving as the
Administrative Agent hereunder shall have the same rights and powers in its capacity as a Lender as any other Lender and may
exercise the same as though it were not the Administrative Agent, and such Person and its Affiliates may accept deposits
from, lend money to, own securities of, act as the financial advisor or in any other advisory capacity for and generally
engage in any kind of business with the Parent Borrower or any Subsidiary or other Affiliate thereof as if such Person were
not the Administrative Agent hereunder and without any duty to account therefor to the Lenders.

 

The Administrative Agent shall not
have any duties or obligations except those expressly set forth in the Loan Documents, and its duties hereunder shall be
administrative in nature. Without limiting the generality of the foregoing, (a) the Administrative Agent shall not be
subject to any fiduciary or other implied duties, regardless of whether a Default has occurred and is continuing (and it is
understood and agreed that the use of the term “agent” herein or in any other Loan Documents (or any other
similar term) with reference to the Administrative Agent is not intended to connote any fiduciary or other implied (or
express) obligations arising under agency doctrine of any applicable law, and that such term is used as a matter of market
custom and is intended to create or reflect only an administrative relationship between contracting parties), (b) the
Administrative Agent shall not have any duty to take any discretionary action or to exercise any discretionary power, except
discretionary rights and powers expressly contemplated by the Loan Documents that the Administrative Agent is required to
exercise as directed in writing by the Required Lenders (or such other number or percentage of the Lenders as shall be
necessary, or as the Administrative Agent shall believe in good faith to be necessary, under the circumstances as provided in
the Loan Documents), provided that the Administrative Agent shall not be required to take any action that, in its
opinion, could expose the Administrative Agent to liability or be contrary to any Loan Document or applicable law, including
for the avoidance of doubt any action that may be in violation of the automatic stay under any debtor relief law, and
(c) except as expressly set forth in the Loan Documents, the Administrative Agent shall not have any duty to disclose,
and shall not be liable for the failure to disclose, any information relating to the Parent Borrower or any Subsidiary or any
other Affiliate thereof that is communicated to or obtained by the Person serving as Administrative Agent or any of its
Affiliates in any capacity. The Administrative Agent shall not be liable for any action taken or not taken by it with the
consent or at the request of the Required Lenders (or such other number or percentage of the Lenders as shall be necessary,
or as the Administrative Agent shall believe in good faith to be necessary, under the circumstances as provided in the Loan
Documents) or in the absence of its own gross negligence or willful misconduct (such absence to be presumed unless otherwise
determined by a court of competent jurisdiction by a final and nonappealable judgment). The Administrative Agent shall be
deemed not to have knowledge of any Default unless and until written notice thereof (stating that it is a “notice of
default”) is given to the Administrative Agent by the Borrowers or a Lender, and the Administrative Agent shall not be
responsible for or have any duty to ascertain or inquire into (i) any statement, warranty or representation made in or
in connection with any Loan Document, (ii) the contents of any certificate, report or other document delivered hereunder
or in connection with any Loan Document, (iii) the performance or observance of any of the covenants, agreements or
other terms or conditions set forth in any Loan Document or the occurrence of any Default, (iv) the sufficiency,
validity, enforceability, effectiveness or genuineness of any Loan Document or any other agreement, instrument or document,
(v) the creation, perfection or priority of Liens on the Collateral or the existence of the Collateral or (vi) the
satisfaction of any condition set forth in Article IV or elsewhere in any Loan Document, other than to confirm receipt
of items expressly required to be delivered to the Administrative Agent or satisfaction of any condition that expressly
refers to the matters described therein being acceptable or satisfactory to the Administrative Agent.

 

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The Administrative Agent shall be entitled
to rely, and shall not incur any liability for relying, upon any notice, request, certificate, consent, statement, instrument,
document or other writing (including any electronic message, internet or intranet website posting or other distribution) believed
by it to be genuine and to have been signed, sent or otherwise authenticated by the proper Person (whether or not such Person in
fact meets the requirements set forth in the Loan Documents for being the signatory, sender or authenticator thereof). The Administrative
Agent also shall be entitled to rely, and shall not incur any liability for relying, upon any statement made to it orally or by
telephone and believed by it to be made by the proper Person (whether or not such Person in fact meets the requirements set forth
in the Loan Documents for being the signatory, sender or authenticator thereof), and may act upon any such statement prior to receipt
of written confirmation thereof. In determining compliance with any condition hereunder to the making of a Loan that by its terms
must be fulfilled to the satisfaction of a Lender, the Administrative Agent may presume that such condition is satisfactory to
such Lender, unless the Administrative Agent shall have received notice to the contrary from such Lender prior to the making of
such Loan. The Administrative Agent may consult with legal counsel (who may be counsel for the Borrowers), independent accountants
and other experts selected by it, and shall not be liable for any action taken or not taken by it in accordance with the advice
of any such counsel, accountants or experts.

 

The Administrative Agent may perform any
and all of its duties and exercise its rights and powers hereunder or under any other Loan Document by or through any one or more
sub-agents appointed by the Administrative Agent. The Administrative Agent and any such sub-agent may perform any and all their
duties and exercise their rights and powers through their respective Related Parties. The exculpatory provisions of this Article
shall apply to any such sub-agent and to the Related Parties of the Administrative Agent and any such sub-agent, and shall apply
to their respective activities in connection with the syndication of the credit facilities provided for herein as well as activities
as Administrative Agent. The Administrative Agent shall not be responsible for the negligence or misconduct of any sub-agents except
to the extent that a court of competent jurisdiction determines in a final and nonappealable judgment that the Administrative Agent
acted with gross negligence or willful misconduct in the selection of such sub-agents.

 

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Subject to the terms of this
paragraph, the Administrative Agent may resign at any time, upon thirty days prior notice, from its capacity as such. In
connection with such resignation, the Administrative Agent shall give notice of its intent to resign to the Lenders and the
Borrowers. Upon receipt of any such notice of resignation, the Required Lenders shall have the right, with the consent of the
Borrower so long as no Event of Default under clauses (a) or (b) of Article VII is continuing, to appoint a successor. If no
successor shall have been so appointed by the Required Lenders and shall have accepted such appointment within 30 days
after the retiring Administrative Agent gives notice of its intent to resign, then the retiring Administrative Agent may, on
behalf of the Lenders, appoint a successor Administrative Agent, which shall be a bank with an office in New York, New York,
or an Affiliate of any such bank. Upon the acceptance of its appointment as Administrative Agent hereunder by a successor,
such successor shall succeed to and become vested with all the rights, powers, privileges and duties of the retiring
Administrative Agent, and the retiring Administrative Agent shall be discharged from its duties and obligations hereunder and
under the other Loan Documents. The fees payable by the Borrowers to a successor Administrative Agent shall be the same as
those payable to its predecessor unless otherwise agreed by the Borrowers and such successor. Notwithstanding the foregoing,
in the event no successor Administrative Agent shall have been so appointed and shall have accepted such appointment within
30 days after the retiring Administrative Agent gives notice of its intent to resign, the retiring Administrative Agent
may give notice of the effectiveness of its resignation to the Lenders and the Borrowers, whereupon, on the date of
effectiveness of such resignation stated in such notice, (a) the retiring Administrative Agent shall be discharged from
its duties and obligations hereunder and under the other Loan Documents, provided that, solely for purposes of
maintaining any security interest granted to the Administrative Agent under any Collateral Document for the benefit of the
Secured Parties, the retiring Administrative Agent shall continue to be vested with such security interest as collateral
agent for the benefit of the Secured Parties and, in the case of any Collateral in the possession of the Administrative
Agent, shall continue to hold such Collateral, in each case until such time as a successor Administrative Agent is appointed
and accepts such appointment in accordance with this paragraph (it being understood and agreed that the retiring
Administrative Agent shall have no duty or obligation to take any further action under any Collateral Document, including any
action required to maintain the perfection of any such security interest), and (b) the Required Lenders shall succeed to
and become vested with all the rights, powers, privileges and duties of the retiring Administrative Agent, provided
that (i) all payments required to be made hereunder or under any other Loan Document to the Administrative Agent for the
account of any Person other than the Administrative Agent shall be made directly to such Person and (ii) all notices and
other communications required or contemplated to be given or made to the Administrative Agent shall also directly be given or
made to each Lender. Following the effectiveness of the Administrative Agent’s resignation from its capacity as such,
the provisions of this Article and Section 9.03, as well as any exculpatory, reimbursement and indemnification
provisions set forth in any other Loan Document, shall continue in effect for the benefit of such retiring Administrative
Agent, its sub-agents and their respective Related Parties in respect of any actions taken or omitted to be taken by any of
them while it was acting as Administrative Agent and in respect of the matters referred to in the proviso under
clause (a) above.

 

Each Lender acknowledges that it has, independently
and without reliance upon the Administrative Agent, any other Lender or the Debtors’ Investment Banker, or any of the Related
Parties of any of the foregoing, and based on such documents and information as it has deemed appropriate, made its own credit
analysis and decision to enter into this Agreement. Each Lender also acknowledges that it will, independently and without reliance
upon the Administrative Agent, or any other Lender, or any of the Related Parties of any of the foregoing, and based on such documents
and information as it shall from time to time deem appropriate, continue to make its own decisions in taking or not taking action
under or based upon this Agreement, any other Loan Document or any related agreement or any document furnished hereunder or thereunder.

 

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Each Lender, by delivering its signature
page to this Agreement and funding its Loans on the Effective Date, or delivering its signature page to an Assignment and Assumption
or any other Loan Document pursuant to which it shall become a Lender hereunder, shall be deemed to have acknowledged receipt of,
and consented to and approved, each Loan Document and each other document required to be delivered to, or be approved by or satisfactory
to, the Administrative Agent or the Lenders on the Effective Date.

 

Except with respect to the exercise of setoff
rights of any Lender in accordance with the Loan Documents or with respect to a Lender’s right to file a proof of claim in
an insolvency proceeding, no Secured Party shall have any right individually to realize upon any of the Collateral or to enforce
any Guarantee of the Loan Document Obligations, it being understood and agreed that all powers, rights and remedies under the Loan
Documents may be exercised solely by the Administrative Agent on behalf of the Secured Parties in accordance with the terms thereof.
In the event of a foreclosure by the Administrative Agent on any of the Collateral pursuant to a public or private sale or other
disposition, the Administrative Agent or any Lender may be the purchaser or licensor of any or all of such Collateral at any such
sale or other disposition, and the Administrative Agent, as agent for and representative of the Secured Parties (but not any Lender
or Lenders in its or their respective individual capacities unless the Required Lenders shall otherwise agree in writing) shall
be entitled, for the purpose of bidding and making settlement or payment of the purchase price for all or any portion of the Collateral
sold at any such public sale, to use and apply any of the Loan Document Obligations as a credit on account of the purchase price
for any collateral payable by the Administrative Agent on behalf of the Secured Parties at such sale or other disposition.

 

The Secured Parties irrevocably authorize
the Administrative Agent, at its option and in its discretion, to subordinate or release any Lien on any property granted to or
held by the Administrative Agent under any Loan Document to the holder of any Lien on such property that is a Permitted Encumbrance
or that is permitted by Section 6.02(d), (e), (g) and (h). The Administrative Agent shall not be responsible for or have a
duty to ascertain or inquire into any representation or warranty regarding the existence, value or collectability of the Collateral,
the existence, priority or perfection of the Administrative Agent’s Lien thereon, or any certificate prepared by any Loan
Party in connection therewith, nor shall the Administrative Agent be responsible or liable to the Lenders for any failure to monitor
or maintain any portion of the Collateral.

 

In case of the pendency of any proceeding
with respect to any Loan Party under any Federal, state or foreign bankruptcy, insolvency, receivership or similar law now or hereafter
in effect, the Administrative Agent (irrespective of whether the principal of any Loan shall then be due and payable as herein
expressed or by declaration or otherwise and irrespective of whether the Administrative Agent shall have made any demand on the
Borrowers) shall be entitled and empowered (but not obligated) by intervention in such proceeding or otherwise:

 

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(a)              
to file and prove a claim for the whole amount of the principal and interest owing and unpaid in respect of the Loans, and
all other Loan Document Obligations that are owing and unpaid and to file such other documents as may be necessary or advisable
in order to have the claims of the Lenders and the Administrative Agent (including any claim under Sections 2.10, 2.11, 2.13,
2.14, 2.15 and 9.03) allowed in such judicial proceeding;

 

(b)              
 to collect and receive any monies or other property payable or deliverable on any such claims and to distribute the same;
and

 

(c)              
any custodian, receiver, assignee, trustee, liquidator, sequestrator or other similar official in any such proceeding is
hereby authorized by each Lender and each Secured Party to make such payments to the Administrative Agent and, in the event that
the Administrative Agent shall consent to the making of such payments directly to the Lenders or the other Secured Parties, to
pay to the Administrative Agent any amount due to it, in its capacity as the Administrative Agent, under the Loan Documents (including
under Section 9.03).

 

To the extent required by any applicable
laws (as determined in good faith by the Administrative Agent), the Administrative Agent may withhold from any payment to any Lender
under any Loan Document an amount equivalent to any applicable withholding Tax. Without limiting or expanding the provisions of
Section 2.15, each Lender shall indemnify and hold harmless the Administrative Agent against, and shall make payable in respect
thereof within 10 days after demand therefor, any and all Taxes and any and all related losses, claims, liabilities and expenses
(including fees, charges and disbursements of any counsel for the Administrative Agent) incurred by or asserted against the Administrative
Agent by the IRS or any other Governmental Authority as a result of the failure of the Administrative Agent to properly withhold
Tax from amounts paid to or for the account of such Lender for any reason (including because the appropriate form was not delivered
or not properly executed, or because such Lender failed to notify the Administrative Agent of a change in circumstance that rendered
the exemption from, or reduction of withholding Tax ineffective). A certificate as to the amount of such payment or liability delivered
to any Lender by the Administrative Agent shall be conclusive absent manifest error. Each Lender hereby authorizes the Administrative
Agent to set off and apply any and all amounts at any time owing to such Lender under this Agreement or any other Loan Document
against any amount due the Administrative Agent under this paragraph. The agreements in this paragraph shall survive the resignation
and/or replacement of the Administrative Agent, any assignment of rights by, or the replacement of, a Lender, the termination of
the Commitments and the repayment, satisfaction or discharge of all other Loan Document Obligations.

 

Notwithstanding anything herein to the contrary,
neither the Debtors’ Investment Banker nor any Person (if any) named on the cover page of this Agreement for recognition
purposes only shall have any duties or obligations under this Agreement or any other Loan Document (except in any such Person’s
capacity, as and to the extent applicable, as a Lender), but all such Persons shall have the benefit of the indemnities to the
extent referenced and provided for hereunder.

 

Unless otherwise expressly stated or referred
to in this Article, the provisions of this Article are solely for the benefit of the Administrative Agent and the Lenders, and,
except solely to the extent of the Borrowers’ rights to consent pursuant to and subject to the conditions set forth in this
Article, none of the Borrowers or any other Loan Party shall have any rights as a third party beneficiary of any such provisions.
Each Secured Party, whether or not a party hereto, will be deemed, by its acceptance of the benefits of the Collateral and of the
Guarantees of the Loan Document Obligations provided under the Loan Documents, to have agreed to the provisions of this Article.

 

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Article IX

 

Miscellaneous

 

Section 9.01.       
Notices.

 

(a)              
Except in the case of notices and other communications expressly permitted to be given by telephone (and subject to paragraph (b)
of this Section), all notices and other communications provided for herein shall be in writing and shall be delivered by e-mail,
hand or overnight courier service, or mailed by certified or registered mail, as follows:

 

(i)                
if to the Borrowers:

 

Ascena Retail Group, Inc.

933 MacArthur Boulevard

Mahwah, New Jersey 07430

Attention: Dan Lamadrid, Executive
Vice President and Chief Financial Officer

E-mail: dan.lamadrid@ascenaretail.com

 

with a copy to:

 

933 MacArthur Boulevard

Mahwah, New Jersey 07430

Attention: Gary Holland, General Counsel
and VP

E-mail: gary.holland@ascenaretail.com

 

With a copy to:

Kirkland & Ellis LLP

2049 Century Park East, Suite 3700

Los Angeles, CA 90067

Attention: David M. Nemecek, P.C.

Email: david.nemecek@kirkland.com

 

(ii)             
if to the Administrative Agent:

 

Alter Domus (US) LLC

225 W. Washington St., 9th Floor

Chicago, IL 60606

Attention: Legal Department and Hendrik van
der Zandt

Email: legal@alterdomus.com and hendrik.vanderzandt@alterdomus.com

 

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with a copy to:

 

Holland & Knight LLP 

150 N. Riverside Plaza, Suite 2700 

Chicago, IL 60606 

Attention: Joshua Spencer 

Email: joshua.spencer@hklaw.com

 

and

 

Milbank LLP

55 Hudson Yards

New York, New York 10001

Attention: Evan Fleck

Email: EFleck@milbank.com

 

(iii)           
if to any other Lender, to it at its address or e-mail address set forth in its Administrative Questionnaire.

 

All such notices and other communications
(i) sent by hand or overnight courier service, or mailed by certified or registered mail, shall be deemed to have been given
when received and (ii) delivered through electronic communications to the extent provided in paragraph (b) of this Section
shall be effective as provided in such paragraph.

 

(b)              
Notices and other communications to the Lenders hereunder may be delivered or furnished by electronic communications (including
e-mail and internet or intranet websites) pursuant to procedures approved by the Administrative Agent; provided that
the foregoing shall not apply to notices under Article II to any Lender if such Lender has notified the Administrative Agent
that it is incapable of receiving notices under such Article by electronic communication. The Administrative Agent or the Parent
Borrower (on behalf of the Loan Parties) may, in its discretion, agree to accept notices and other communications to it hereunder
by electronic communications pursuant to procedures approved by it, provided that approval of such procedures may be limited
to particular notices or communications. All such notices and other communications (i) sent to an e-mail address shall
be deemed received upon the sender’s receipt of an acknowledgement from the intended recipient (such as by return e-mail
or other written acknowledgement); provided that if not given during the normal business hours of the recipient, such notice
or communication shall be deemed to have been given at the opening of business on the next Business Day for the recipient, and
(ii) posted to an internet or intranet website shall be deemed received upon the deemed receipt by the intended recipient
at its e-mail address as described in the foregoing clause (b)(i) of notification that such notice or communication is
available and identifying the website address therefor.

 

(c)              
Any party hereto may change its address for notices and other communications hereunder by notice to the other parties hereto.

 

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(d)               The
Borrowers agree that the Administrative Agent may, but shall not be obligated to, make any Communication by posting such
Communication on Debt Domain, Intralinks, Syndtrak or a similar electronic transmission system (the
“Platform”). The Platform is provided “as is” and “as available.” Neither the
Administrative Agent nor any of its Related Parties warrants, or shall be deemed to warrant, the adequacy of the Platform and
each expressly disclaims liability for errors or omissions in the Communications. No warranty of any kind, express, implied
or statutory, including any warranty of merchantability, fitness for a particular purpose, non-infringement of third-party
rights or freedom from viruses or other code defects, is made, or shall be deemed to be made, by the Administrative Agent or
any of its Related Parties in connection with the Communications or the Platform.

 

Section 9.02.       
Waivers; Amendments.

 

(a)              
No failure or delay by the Administrative Agent or any Lender in exercising any right or power hereunder or under any other
Loan Document shall operate as a waiver thereof, nor shall any single or partial exercise of any such right or power, or any abandonment
or discontinuance of steps to enforce such a right or power, preclude any other or further exercise thereof or the exercise of
any other right or power. The rights and remedies of the Administrative Agent and the Lenders hereunder and under any other Loan
Document are cumulative and are not exclusive of any rights or remedies that they would otherwise have. No waiver of any provision
of any Loan Document or consent to any departure by any Loan Party therefrom shall in any event be effective unless the same shall
be permitted by paragraph (b) of this Section, and then such waiver or consent shall be effective only in the specific instance
and for the specific purpose for which given. Without limiting the generality of the foregoing, the execution and delivery of this
Agreement or the making of a Loan shall not be construed as a waiver of any Default, regardless of whether the Administrative Agent
or any Lender may have had notice or knowledge of such Default at the time.

 

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(b)               Except
as provided in Sections 9.02(c) and 9.19 and except with respect to the Administrative Agent Fee Letter, none of this
Agreement, any other Loan Document or any provision hereof or thereof may be waived, amended or modified except, in the case
of this Agreement, pursuant to an agreement or agreements in writing entered into by the Borrowers, the Administrative Agent
and the Required Lenders and, in the case of any other Loan Document, pursuant to an agreement or agreements in writing
entered into by the Administrative Agent and the Loan Party or Loan Parties that are parties thereto, in each case with the
consent of the Required Lenders, provided that (i) any provision of this Agreement or any other Loan Document may
be amended by an agreement in writing entered into by the Borrowers and the Administrative Agent to cure any technical error,
ambiguity, omission, defect or inconsistency so long as, in each case, the Lenders shall have received at least five Business
Days’ prior written notice thereof and the Administrative Agent shall not have received, within five Business Days of
the date of such notice to the Lenders, a written notice from the Required Lenders stating that the Required Lenders object
to such amendment and (ii) no such agreement shall (A) increase the Commitment of any Lender without the written
consent of such Lender, (B) reduce or forgive the principal amount of any Loan or reduce the rate of interest thereon or
reduce or forgive any interest or fees or premiums (including any prepayment premiums but excluding for the avoidance of
doubt, any mandatory prepayment) payable hereunder without the written consent of each Lender directly affected thereby,
(C) postpone the scheduled maturity date of any Loan, or the date of any scheduled payment of the principal amount of
any Term Loan under Section 2.08, or any date for the payment of any interest or fees or premium payable hereunder, or
reduce the amount of, waive or excuse any such payment, or postpone the scheduled date of expiration of any Commitment,
without the written consent of each Lender directly affected thereby, (D) change Section 2.16(b) or 2.16(c) in a
manner that would alter the pro rata sharing of payments required thereby without the written consent of each Lender,
(E) change any of the provisions of this Section or the percentage set forth in the definition of the term
“Required Lenders” or any other provision of any Loan Document specifying the number or percentage of Lenders
required to waive, amend or modify any rights thereunder or make any determination or grant any consent thereunder, without
the written consent of each Lender; provided that, with the consent of the Required Lenders, the provisions of this
Section and the definition of the term “Required Lenders” may be amended to include references to any new class
of loans created under this Agreement (or to lenders extending such loans) on substantially the same basis as the
corresponding references relating to the existing Loans or Lenders, (F) release substantially all of the value of the
Guarantees provided by the Guarantors (including, in each case, by limiting liability in respect thereof) created under the
Collateral Agreement without the written consent of each Lender (except as expressly provided in Section 9.16 or the
Collateral Agreement including any such release by the Administrative Agent in connection with any sale or other disposition
of any Subsidiary upon the exercise of remedies under the Collateral Documents), it being understood that an amendment or
other modification of the type of obligations guaranteed under the Collateral Agreement shall not be deemed to be a release
or limitation of any Guarantee, and (G) release all or substantially all the Collateral from the Liens of the Collateral
Documents, without the written consent of each Lender (except as expressly provided in Section 9.16 or the applicable
Collateral Document (including any such release by the Administrative Agent in connection with any sale or other disposition
of the Collateral upon the exercise of remedies under the Collateral Documents), it being understood that an amendment or
other modification of the type of obligations secured by the Collateral Documents shall not be deemed to be a release of the
Collateral from the Liens of the Collateral Documents); provided further that no such agreement shall amend,
modify, extend or otherwise affect the rights or obligations of the Administrative Agent without the prior written consent of
the Administrative Agent. Notwithstanding the foregoing, no consent with respect to any amendment, waiver or other
modification of this Agreement or any other Loan Document shall be required of, in the case of any amendment, waiver or other
modification referred to in clause (ii) of the first proviso of this paragraph, any Lender that receives payment in full
of the principal of and interest accrued on each Loan made by, and all other amounts owing to, such Lender or accrued for the
account of such Lender under this Agreement and the other Loan Documents at the time such amendment, waiver or other
modification becomes effective and whose Commitments terminate by the terms and upon the effectiveness of such amendment,
waiver or other modification.

 

(c)              
Notwithstanding anything herein to the contrary, the Administrative Agent may, without the consent of any Secured Party,
consent to a departure by any Loan Party from any covenant of such Loan Party set forth in this Agreement, the Collateral Agreement
or in any other Collateral Document to the extent such departure is consistent with the authority of the Administrative Agent set
forth in the definition of the term “Collateral and Guarantee Requirement”.

 

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(d)              
The Administrative Agent may, but shall have no obligation to, with the concurrence of any Lender, execute amendments, waivers
or other modifications on behalf of such Lender. Any amendment, waiver or other modification effected in accordance with this Section 9.02
shall be binding upon each Person that is at the time thereof a Lender and each Person that subsequently becomes a Lender.

 

(e)              
 Notwithstanding the foregoing, Exhibit G to this Agreement, the definitions of “Exit Facility Agreement” and
“Exit Facility Term Sheet” and Section 2.22 (or any other provision which would result in an amendment, restatement,
waiver or modification of any of the foregoing) may be amended, restated, waived or otherwise modified with the prior written consent
of the Required Lenders, the Administrative Agent and the Parent Borrower; provided that to the extent such amendment, restatement,
waiver or other modification would require the consent of any affected “Lender”, all “Lenders” or any other
Person (or requisite class of Persons) under the terms of Exhibit G as in effect on the Effective Date, the prior written consent
of the corresponding affected Lender, all Lenders or such corresponding Person (or requisite class of Persons) under this Agreement
shall be required; provided, further, that the Lenders hereby authorize the Administrative Agent to enter into any amendments to
this Agreement and the other Loan Documents as may be necessary, in the reasonable opinion of the Administrative Agent and the
Borrower, to give effect to the transaction contemplated by Section 2.22 and such other technical or immaterial amendments as may
be necessary or appropriate in the reasonable opinion of the Administrative Agent and the Parent Borrower in connection therewith.

 

Section 9.03.       
Expenses; Indemnity; Damage Waiver.

 

(a)              
The Borrowers shall, jointly and severally, pay (i) all reasonable and documented out-of-pocket expenses incurred by
the Administrative Agent, the Ad Hoc Committee, the Lenders and their respective Affiliates, including the reasonable and documented
out-of-pocket fees, charges and disbursements of one primary counsel for the Administrative Agent, and one primary counsel for
the Ad Hoc Committee, and if deemed necessary by the Administrative Agent or the Ad Hoc Committee, one local counsel for the Administrative
Agent and Ad Hoc Committee, as applicable in each applicable jurisdiction, in connection with the structuring, arrangement and
syndication of the credit facilities provided for herein and any credit or similar facility refinancing or replacing, in whole
or in part, any of the credit facilities provided for herein, including the preparation, execution, delivery and administration
of this Agreement, the other Loan Documents or any amendments, modifications or waivers of the provisions hereof or thereof, the
Order and any transaction contemplated thereby (whether or not the transactions contemplated hereby or thereby shall be consummated)
and any refinancing of the obligations hereunder or any “exit financing” requested by the Loan Parties in connection
with the Chapter 11 Cases (whether or not the transactions contemplated hereby or thereby shall be consummated), (ii) all reasonable
and documented out-of-pocket expenses in connection with the administration of actions related to the Collateral, including any
actions taken to perfect or maintain priority of the Administrative Agent’s Liens on the Collateral, to maintain any insurance
required hereunder, to verify the Collateral, or any audit, inspection, or appraisal related to any Loan Party or the Collateral
and (iii) all out-of-pocket expenses incurred by the Administrative Agent, the Ad Hoc Committee or any Lender, including the
fees, charges and disbursements of any counsel for any of the foregoing, in connection with the enforcement or protection of its
rights in connection with the Loan Documents, including its rights under this Section, or in connection with the Loans made hereunder,
including all such out-of-pocket expenses incurred during any workout, restructuring or negotiations in respect of such Loans.

 

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(b)               The
Borrowers shall, jointly and severally, indemnify the Administrative Agent (and any subagent thereof), and each Lender, and
each Related Party of any of the foregoing Persons (each such Person being called an “Indemnitee”),
against, and hold each Indemnitee harmless from, any and all losses, claims, damages, penalties, liabilities and related
expenses, including the reasonable fees, charges and disbursements of any counsel for any Indemnitee, incurred by or asserted
against any Indemnitee arising out of, in connection with, or as a result of (i) the structuring, arrangement and the
syndication of the credit facilities provided for herein, the preparation, execution, enforcement, delivery and
administration of this Agreement, the other Loan Documents or any other agreement or instrument contemplated hereby or
thereby, the performance by the parties to this Agreement or the other Loan Documents of their obligations thereunder or the
consummation of the Transactions or any other transactions contemplated thereby, (ii) any Loan or the use of the
proceeds therefrom, (iii) any actual or alleged presence or Release of Hazardous Materials on, at, under to or from any
property currently or formerly owned or operated by the Parent Borrower or any of its Subsidiaries, or any Environmental
Liability related in any way to the Parent Borrower or any Subsidiary or (iv) any actual or prospective claim, litigation,
investigation or proceeding relating to any of the foregoing, whether based on contract, tort or any other theory and
regardless of whether such proceeding is initiated against or by any party to this Agreement, or any Affiliate thereof, by an
Indemnitee or any third party or whether any Indemnitee is a party thereto; provided that such indemnity shall not, as
to any Indemnitee, be available to the extent that such losses, claims, damages, penalties, liabilities or related expenses
(i) are determined by a court of competent jurisdiction by a final and non-appealable judgment to have resulted from the bad
faith, gross negligence or willful misconduct of such Indemnitee, (ii) are determined by a court of competent jurisdiction by
a final and non-appealable judgment to have resulted from a material breach by such Indemnitee of the Loan Documents or (iii)
involve a dispute solely among Indemnitees (other than an action involving (i) alleged conduct by any Borrower or any of its
Affiliates or (ii) against the Administrative Agent in its capacity as such). This Section shall not apply to any Taxes
(other than Other Taxes or any Taxes that represent losses, claims, damages or related expenses arising from any non-Tax
claim).

 

(c)               Each
Lender severally agrees to indemnify and hold harmless the Administrative Agent (or any sub-agent thereof), to the extent
that the Administrative Agent (or any sub-agent) shall not have been timely reimbursed by the Borrowers, based on and to the
extent of such Lender’s pro rata share, for and against any and all liabilities, obligations, losses, damages,
penalties, actions, judgments, suits, costs, expenses (including counsel fees and disbursements) or disbursements of any kind
or nature whatsoever which may be imposed on, incurred by or asserted against the Administrative Agent (or any sub-agent
thereof) in exercising its powers, rights and remedies or performing its duties hereunder or under the other Loan Documents
or otherwise in its capacity as the Administrative Agent (or any sub-agent thereof) in any way relating to or arising out of
this Agreement or the other Loan Documents; provided, that no Lender shall be liable to the Administrative Agent (or any
sub-agent) for any portion of such liabilities, obligations, losses, damages, penalties, actions, judgments, suits, costs,
expenses or disbursements resulting from the Administrative Agent’s (or any sub-agent’s) gross negligence or
willful misconduct, as determined by a final, non-appealable judgment of a court of competent jurisdiction (it being
understood and agreed that no action taken in accordance with the directions of the Required Lenders (or such other Lenders
as may be required to give such instructions under Article VIII) shall constitute gross negligence or willful misconduct). If
any indemnity furnished to the Administrative Agent (or any sub-agent thereof) for any purpose shall, in the opinion of the
Administrative Agent (or any sub-agent thereof), be insufficient or become impaired, the Administrative Agent (or any
sub-agent ) may call for additional indemnity and cease, or not commence, to do the acts indemnified against until such
additional indemnity is furnished; provided, that in no event shall this sentence require any Lender to indemnify the
Administrative Agent (or any sub-agent thereof) against any liability, obligation, loss, damage, penalty, action, judgment,
suit, cost, expense or disbursement in excess of such Lender’s pro rata share. For purposes hereof, a Lender’s
“pro rata share” shall be determined based upon its share of the sum of the total outstanding Loans and unused
Commitments at such time (or if such indemnity payment is sought after the date on which the Loans have been paid in full in
accordance with such Lender’s pro rata share immediately prior to the date on which the Loans are paid in full).

 

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(d)              
To the extent permitted by applicable law, (i) the Borrowers shall not assert, or permit any of their respective Affiliates
or Related Parties to assert, and hereby waives, any claim against any Indemnitee for any damages arising from the use by others
of information or other materials obtained through telecommunications, electronic or other information transmission systems (including
the internet)and (ii) none of the Borrowers or any Secured Party shall assert, or permit any of their respective Affiliates
or Related Parties to assert any claims on any theory of liability, for special, indirect, consequential or punitive damages (as
opposed to direct or actual damages) arising out of, in connection with, or as a result of this Agreement, any other Loan Document
or any agreement or instrument contemplated hereby or thereby, the Transactions, any Loan or the use of the proceeds thereof.

 

(e)              
All amounts due under this Section shall be payable not later than 10 days after written demand therefor.

 

Section 9.04.       
Successors and Assigns.

 

(a)              
The provisions of this Agreement shall be binding upon and inure to the benefit of the parties hereto and their respective
successors and assigns permitted hereby, except that (i)  neither Borrower may assign or otherwise transfer any of its rights
or obligations hereunder without the prior written consent of the Administrative Agent and each Lender (and any attempted assignment
or transfer by any Borrower without such consent shall be null and void) and (ii) no Lender may assign or otherwise transfer
its rights or obligations hereunder except in accordance with this Section. Nothing in this Agreement, expressed or implied, shall
be construed to confer upon any Person (other than the parties hereto, their respective successors and assigns permitted hereby,
Participants (to the extent provided in paragraph (c) of this Section), the Debtors’ Investment Banker (to the extent
provided in Article VIII)and, to the extent expressly contemplated hereby, the sub-agents of the Administrative Agent and the Related
Parties of any of the Administrative Agent and any Lender) any legal or equitable right, remedy or claim under or by reason of
this Agreement.

 

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(b)              
Subject to the conditions set forth in paragraph (b)(ii) below, any Lender may assign to one or more Eligible Assignees
all or a portion of its rights and obligations under this Agreement (including all or a portion of its Commitment and the Loans
at the time owing to it) with the prior written consent (such consent not to be unreasonably withheld, conditioned or delayed)
of:

 

(i)             
 the Borrowers; provided that no consent of Borrowers shall be required (1) for an assignment to a Lender, a
Related Lender, an Affiliate of a Lender or an Approved Fund (2) if in connection with the Initial Allocation (as defined in the
Commitment Letter) and (3) if an Event of Default has occurred and is continuing, for any other assignment; provided further
that, the Borrowers shall be deemed to have consented to any such assignment unless it shall object thereto by written notice to
the Administrative Agent within 10 Business Days after having received notice thereof.

 

(ii)            
the Administrative Agent; provided that no consent of the Administrative Agent shall be required for an assignment
of any Loan to a Lender, a Related Lender, an Affiliate of a Lender or an Approved Fund.

 

(iii)           
Assignments shall be subject to the following additional conditions:

 

(A)            
except in the case of an assignment to a Lender, a Related Lender, an Affiliate of a Lender or an Approved Fund or an assignment
of the entire remaining amount of the assigning Lender’s Commitment or Loans, the amount of the Commitment or Loans of the
assigning Lender subject to each such assignment (determined as of the date the Assignment and Assumption with respect to such
assignment is delivered to the Administrative Agent and recorded in the Register) shall not be less than $1,000,000 unless each
of the Borrowers and the Administrative Agent otherwise consent; provided that no such consent of the Borrowers shall be
required (i) if an Event of Default has occurred and is continuing or (ii) in connection with the Initial Allocation (as defined
in the Commitment Letter);

 

(B)            
each partial assignment shall be made as an assignment of a proportionate part of all the assigning Lender’s rights
and obligations under this Agreement;

 

(C)             
the parties to each assignment shall execute and deliver to the Administrative Agent an Assignment and Assumption, together
with a processing and recordation fee of $3,500, provided that only one such processing and recordation fee shall be payable
in the event of simultaneous assignments from any Lender or its Approved Funds to one or more other Approved Funds of such Lender;

 

(D)            
the assignee, if it shall not be a Lender, shall deliver to the Administrative Agent all requested “know your customer”
documentation, a duly executed IRS Form W-9 or such other applicable IRS Form, and an Administrative Questionnaire in which the
assignee designates one or more credit contacts to whom all syndicate-level information (which may contain MNPI) will be made available
and who may receive such information in accordance with the assignee’s compliance procedures and applicable law, including
Federal, State and foreign securities laws;

 

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(E)             
 the assignee, if it shall not be a Lender, shall deliver to the Administrative Agent, the Ad Hoc Committee Advisors and
the Company a signed joinder to the Restructuring Support Agreement; and

 

(F)             
each Lender acknowledges and agrees that the Loans, on the one hand, and the unfunded Commitments on the other hand, shall
be held by such Lender in equal percentages and such Loans, on the one hand, and such unfunded Commitments, on the other hand,
are “stapled” to each other, and shall be assigned in equal percentages.

 

(iv)            
Subject to acceptance and recording thereof pursuant to paragraph (b)(v) of this Section, from and after the effective
date specified in each Assignment and Assumption the assignee thereunder shall be a party hereto and, to the extent of the interest
assigned by such Assignment and Assumption, have the rights and obligations of a Lender under this Agreement, and the assigning
Lender thereunder shall, to the extent of the interest assigned by such Assignment and Assumption, be released from its obligations
under this Agreement (and, in the case of an Assignment and Assumption covering all of the assigning Lender’s rights and
obligations under this Agreement, such Lender shall cease to be a party hereto but shall continue to be entitled to the benefits
of Sections 2.13, 2.14, 2.15 and 9.03). Any assignment or transfer by a Lender of rights or obligations under this Agreement
that does not comply with this Section shall be treated for purposes of this Agreement as a sale by such Lender of a participation
in such rights and obligations in accordance with Section 9.04(c).

 

(v)            
The Administrative Agent, acting solely for this purpose as a nonfiduciary agent of the Borrowers, shall maintain at one
of its offices a copy of each Assignment and Assumption delivered to it and records of the names and addresses of the Lenders,
and the Commitment of, and principal amount (and stated interest) of the Loans owing to, each Lender pursuant to the terms hereof
from time to time (the “Register”). The entries in the Register shall be conclusive absent manifest error, and
the Borrowers, the Administrative Agent and the Lenders shall treat each Person whose name is recorded in the Register pursuant
to the terms hereof as a Lender hereunder for all purposes of this Agreement, notwithstanding notice to the contrary. The Register
shall be available for inspection by the Borrowers and, as to entries pertaining to it, any Lender, at any reasonable time and
from time to time upon reasonable prior written notice.

 

(vi)             Upon
receipt by the Administrative Agent of an Assignment and Assumption executed by an assigning Lender and an assignee, the
assignee’s completed Administrative Questionnaire (unless the assignee shall already be a Lender hereunder), all other
information required under (iii)(D) above and the processing and recordation fee referred to in this Section, the
Administrative Agent shall accept such Assignment and Assumption and record the information contained therein in the
Register; provided that the Administrative Agent shall not be required to accept such Assignment and Assumption or so
record the information contained therein if the Administrative Agent reasonably believes that such Assignment and Assumption
lacks any written consent required by this Section or is otherwise not in proper form, it being acknowledged that the
Administrative Agent shall have no duty or obligation (and shall incur no liability) with respect to obtaining (or confirming
the receipt) of any such written consent or with respect to the form of (or any defect in) such Assignment and Assumption,
any such duty and obligation being solely with the assigning Lender and the assignee. No assignment shall be effective for
purposes of this Agreement unless it has been recorded in the Register as provided in this paragraph, and following such
recording, unless otherwise determined by the Administrative Agent (such determination to be made in the sole discretion of
the Administrative Agent, which determination may be conditioned on the consent of the assigning Lender and the assignee),
shall be effective notwithstanding any defect in the Assignment and Assumption relating thereto. Each assigning Lender and
the assignee, by its execution and delivery of an Assignment and Assumption, shall be deemed to have represented to the
Administrative Agent that all written consents required by this Section with respect thereto (other than the consent of the
Administrative Agent) have been obtained and that such Assignment and Assumption is otherwise duly completed and in proper
form, and each assignee, by its execution and delivery of an Assignment and Assumption, shall be deemed to have represented
to the assigning Lender and the Administrative Agent that such assignee is an Eligible Assignee.

 

    99 

     

    

 

(vii)         
No such assignment shall be made to the Parent Borrower or any of its Subsidiaries, except as set forth in Section 9.04(e).

 

(c)               (i) Any
Lender may, without the consent of the Borrowers or the Administrative Agent, sell participations to one or more Eligible
Assignees (“Participants”) in all or a portion of such Lender’s rights and obligations under this
Agreement; provided that (A) such Lender’s obligations under this Agreement shall remain unchanged,
(B) such Lender shall remain solely responsible to the other parties hereto for the performance of such obligations and
(C) the Borrowers, the Administrative Agent and the other Lenders shall continue to deal solely and directly with such
Lender in connection with such Lender’s rights and obligations under the Loan Documents. Any agreement or instrument
pursuant to which a Lender sells such a participation shall provide that such Lender shall retain the sole right to enforce
the Loan Documents and to approve any amendment, modification or waiver of any provision of the Loan Documents; provided
that such agreement or instrument may provide that such Lender will not, without the consent of the Participant, agree to any
amendment, modification or waiver described in the first proviso to Section 9.02(b) that affects such Participant or
requires the approval of all the Lenders. The Borrowers agree that each Participant shall be entitled to the benefits of
Sections 2.13, 2.14 and 2.15 (subject to the requirements and limitations therein, including the requirements under
Section 2.15(e) (it being understood that the documentation required under Section 2.15(e) shall be delivered
solely to the participating Lender)) to the same extent as if it were a Lender and had acquired its interest by assignment
pursuant to paragraph (b) of this Section; provided that such Participant (x) agrees to be subject to the
provisions of Sections 2.16 and 2.17 as if it were an assignee under paragraph (b) of this Section and
(y) shall not be entitled to receive any greater payment under Section 2.13 or 2.15, with respect to any
participation, than its participating Lender would have been entitled to receive, except to the extent such entitlement to
receive a greater payment results from a Change in Law that occurs after the Participant acquired the applicable
participation. Each Lender that sells a participation agrees, at the Borrowers’ request and expense, to use reasonable
efforts to cooperate with the Borrowers to effectuate the provisions of Section 2.17(b) with respect to any Participant.
To the extent permitted by law, each Participant also shall be entitled to the benefits of Section 9.08 as though it
were a Lender; provided that such Participant agrees to be subject to Section 2.16(c) as though it were a
Lender.

 

    100 

     

    

 

(i)                
Each Lender that sells a participation shall, acting solely for this purpose as a non-fiduciary agent of the Borrowers,
maintain records of the name and address of each Participant and the principal amounts (and stated interest) of each Participant’s
interest in the Loans or other obligations under this Agreement or any other Loan Document (the “Participant Register”);
provided that no Lender shall have any obligation to disclose all or any portion of the Participant Register (including
the identity of any Participant or any information relating to a Participant’s interest in any Commitments or Loans or its
other obligations under this Agreement or any other Loan Document) to any Person except to the extent that such disclosure is necessary
to establish that such Commitment or Loan or other obligation is in registered form under Section 5f.103-1(c) of the United
States Treasury Regulations. The entries in the Participant Register shall be conclusive absent manifest error, and such Lender
shall treat each Person whose name is recorded in the Participant Register as the owner of such participation for all purposes
of this Agreement notwithstanding any notice to the contrary. For the avoidance of doubt, the Administrative Agent (in its capacity
as Administrative Agent) shall have no responsibility for maintaining a Participant Register.

 

(d)              
Any Lender may at any time pledge or assign a security interest in all or any portion of its rights under this Agreement
to secure obligations of such Lender, including any pledge or assignment to secure obligations to a Federal Reserve Bank, and this
Section shall not apply to any such pledge or assignment of a security interest; provided that no such pledge or assignment
of a security interest shall release a Lender from any of its obligations hereunder or substitute any such pledgee or assignee
for such Lender as a party hereto.

 

(e)               
Notwithstanding anything to the contrary contained in this Section 9.04 or any other provision of this Agreement, no
Lender shall have the right at any time to sell, assign or transfer all or a portion of the Loans owing to it to the Parent Borrower
or any of its Subsidiaries.

 

Section 9.05.        Survival.
All covenants, agreements, representations and warranties made by the Loan Parties in the Loan Documents and in the
certificates or other instruments delivered in connection with or pursuant to this Agreement or any other Loan Document shall
be considered to have been relied upon by the other parties hereto and shall survive the execution and delivery of the Loan
Documents and the making of any Loans, regardless of any investigation made by any such other party or on its behalf and
notwithstanding that the Administrative Agent, any Lender or any Affiliate of any of the foregoing may have had notice or
knowledge of any Default or incorrect representation or warranty at the time any Loan Document is executed and delivered or
any credit is extended hereunder, 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 this Agreement is outstanding and unpaid and so long as the
Commitments have not expired or terminated. The provisions of Sections 2.13, 2.14, 2.15, 2.16(e) and 9.03 and
Article VIII shall survive and remain in full force and effect regardless of the consummation of the transactions
contemplated hereby, the repayment of the Loans, the expiration or termination of the Commitments or the termination of this
Agreement or any provision hereof.

 

    101 

     

    

 

Section 9.06.       
Counterparts; Integration; Effectiveness; Electronic Execution. This Agreement may be executed in counterparts
(and by different parties hereto on different counterparts), each of which shall constitute an original, but all of which when
taken together shall constitute a single contract. This Agreement and the other Loan Documents constitute the entire contract among
the parties relating to the subject matter hereof and supersede any and all previous agreements and understandings, oral or written,
relating to the subject matter hereof. Except as provided in Section 4.01, this Agreement shall become effective when it shall
have been executed by the Administrative Agent and the Administrative Agent shall have received counterparts hereof that, when
taken together, bear the signatures of each of the other parties hereto, and thereafter shall be binding upon and inure to the
benefit of the parties hereto and their respective permitted successors and assigns. Delivery of an executed counterpart of a signature
page of this Agreement by facsimile or other electronic imaging shall be effective as delivery of a manually executed counterpart
of this Agreement. The words “execution,” “signed,” “signature,” “delivery,” and
words of like import in or relating to any document to be signed in connection with this Agreement and the transactions contemplated
hereby or thereby shall be deemed to include Electronic Signatures, deliveries or the keeping of records in electronic form, each
of which shall be of the same legal effect, validity or enforceability as a manually executed signature, physical delivery thereof
or the use of a paper-based recordkeeping system, as the case may be, to the extent and as provided for in any applicable law,
including the Federal Electronic Signatures in Global and National Commerce Act, the New York State Electronic Signatures and Records
Act, or any other similar state laws based on the Uniform Electronic Transactions Act.

 

Section 9.07.       
Severability. Any provision of any Loan Document held to be invalid, illegal or unenforceable in any jurisdiction
shall, as to such jurisdiction, be ineffective to the extent of such invalidity, illegality or unenforceability without affecting
the validity, legality and enforceability of the remaining provisions thereof; and the invalidity of a particular provision in
a particular jurisdiction shall not invalidate such provision in any other jurisdiction.

 

Section 9.08.       
Right of Setoff. If an Event of Default shall have occurred and be continuing, each Lender is hereby authorized
(notwithstanding the provisions of Section 362 of the Bankruptcy Code, without any application, motion or notice to, hearing before,
or order from, the Court) at any time and from time to time, to the fullest extent permitted by law, to set off and apply any and
all deposits (general or special, time or demand, provisional or final) at any time held and other obligations at any time owing
by such Lender to or for the credit or the account of any Loan Party against any of and all the Loan Document Obligations held
by such Lender, irrespective of whether or not such Lender shall have made any demand under the Loan Documents and although such
obligations may be unmatured. The applicable Lender shall notify the Borrowers and the Administrative Agent of such set-off or
application; provided that any failure to give or any delay in giving such notice shall not affect the validity of any such
set-off or application under this Section. The rights of each Lender under this Section are in addition to other rights and remedies
(including other rights of setoff) which such Lender may have.

 

    102 

     

    

 

Section 9.09.       
Governing
Law; Jurisdiction; Consent to Service of Process.

 

(a)              
Except to the extent superseded by the Bankruptcy Code, this Agreement shall be construed in accordance with and governed
by the law of the State of New York.

 

(b)              
Each party hereto hereby irrevocably and unconditionally submits, for itself and its property, to the non-exclusive jurisdiction
of the Court or the Supreme Court of the State of New York sitting in New York County and of the United States District Court of
the Southern District of New York, and any appellate court from any thereof, in any action or proceeding arising out of or relating
to this Agreement or any other Loan Document, or for recognition or enforcement of any judgment, and the Borrowers hereby irrevocably
and unconditionally agree that all claims arising out of or relating to this Agreement or any other Loan Document brought by the
Borrowers or any of their respective Affiliates shall be brought, and shall be heard and determined in the Court, in such New York
State or, to the extent permitted by law, in such Federal court. Each party hereto agrees that a final judgment in any such action
or proceeding shall be conclusive and may be enforced in other jurisdictions by suit on the judgment or in any other manner provided
by law. Nothing in this Agreement shall affect any right that the Administrative Agent or any Lender may otherwise have to bring
any action or proceeding relating to this Agreement or any other Loan Document against any Loan Party or any of its properties
in the courts of any jurisdiction.

 

(c)              
The Borrowers hereby irrevocably and unconditionally waive, to the fullest extent they may legally and effectively do so,
any objection that it may now or hereafter have to the laying of venue of any suit, action or proceeding arising out of or relating
to this Agreement or any other Loan Document in any court referred to in paragraph (b) of this Section. Each of the parties
hereto hereby irrevocably waives, to the fullest extent permitted by law, the defense of an inconvenient forum to the maintenance
of such action or proceeding in any such court.

 

(d)              
Each party to this Agreement irrevocably consents to service of process in the manner provided for notices in Section 9.01.
Nothing in this Agreement or any other Loan Document will affect the right of any party to this Agreement to serve process in any
other manner permitted by law.

 

Section 9.10.       
WAIVER OF JURY TRIAL. EACH PARTY HERETO HEREBY IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE
LAW, ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN ANY LEGAL PROCEEDING DIRECTLY OR INDIRECTLY ARISING OUT OF OR RELATING TO THIS
AGREEMENT, ANY OTHER LOAN DOCUMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY (WHETHER BASED ON CONTRACT, TORT OR ANY OTHER THEORY).
EACH PARTY HERETO (A) CERTIFIES THAT NO REPRESENTATIVE, AGENT OR ATTORNEY OF ANY OTHER PARTY HAS REPRESENTED, EXPRESSLY OR
OTHERWISE, THAT SUCH OTHER PARTY WOULD NOT, IN THE EVENT OF LITIGATION, SEEK TO ENFORCE THE FOREGOING WAIVER AND (B) ACKNOWLEDGES
THAT IT AND THE OTHER PARTIES HERETO HAVE BEEN INDUCED TO ENTER INTO THIS AGREEMENT BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS
AND CERTIFICATIONS IN THIS SECTION.

 

    103 

     

    

 

Section 9.11.       
Headings. Article and Section headings
and the Table of Contents used herein are for convenience of reference only, are not part of this Agreement and shall not affect
the construction of, or be taken into consideration in interpreting, this Agreement.

 

Section 9.12.       
Confidentiality. Each of the Administrative Agent and the Lenders agrees to maintain the confidentiality of
the Information (as defined below) with the same degree of care that it uses to protect its own confidential information, but in
no event less than a commercially reasonable degree of care, except that Information may be disclosed (a) to its Related Parties,
including accountants, legal counsel and other agents and advisors, it being understood that the Persons to whom such disclosure
is made will be informed of the confidential nature of such Information and instructed to keep such Information confidential, (b) to
the extent required or requested by any regulatory authority purporting to have jurisdiction over such Person or its Related Parties
(including any self-regulatory authority, such as the National Association of Insurance Commissioners), (c) to the extent
required by applicable law or by any subpoena or similar legal process, (d) to any other party to this Agreement, (e) in
connection with the exercise of any remedies under this Agreement or any other Loan Document or any suit, action or proceeding
relating to this Agreement or any other Loan Document or the enforcement of rights hereunder or thereunder, (f) subject to
an agreement containing confidentiality undertakings substantially similar to those of this Section, to (i) any assignee of
or Participant in, or any prospective assignee of or Participant in, any of its rights or obligations under this Agreement or (ii) any
actual or prospective counterparty (or its Related Parties) to any swap or derivative transaction relating to the Parent Borrower
or any Subsidiary or its obligations, (g) on a confidential basis to the CUSIP Service Bureau or any similar agency in connection
with the issuance and monitoring of CUSIP numbers with respect to the credit facilities provided for herein, (h) with the consent
of the Borrowers or (i) to the extent such Information (i) becomes publicly available other than as a result of a breach
of this Section or (ii) becomes available to the Administrative Agent or any Lender or any Affiliate of any of the foregoing
on a non-confidential basis from a source other than the Borrowers; provided that, in the case of clause (c) above,
the party disclosing such information shall provide to the Borrowers prior written notice of such disclosure to the extent permitted
by applicable law (and to the extent commercially feasible under the circumstances) and shall cooperate with the Borrowers in obtaining
a protective order for, or other confidential treatment of, such disclosure. For the purposes of this Section, “Information”
means all information received from the Borrowers relating to the Parent Borrower or any Subsidiary or their businesses or the
Collateral.

 

Section 9.13.       
Several Obligations; Nonreliance; Violation of Law. The respective obligations of the Lenders hereunder are
several and not joint and the failure of any Lender to make any Loan or perform any of its obligations hereunder shall not relieve
any other Lender from any of its obligations hereunder. Anything contained in this Agreement to the contrary notwithstanding, no
Lender shall be obligated to extend credit to the Borrowers in violation of applicable law.

 

Section 9.14.        USA
Patriot Act Notice. Each Lender and the Administrative Agent (for itself and not on behalf of any Lender) hereby notifies
each Loan Party that pursuant to the requirements of the Patriot Act it is required to obtain, verify and record information
that identifies such Loan Party, which information includes the name and address of such Loan Party and other information
that will allow such Lender or the Administrative Agent, as applicable, to identify such Loan Party in accordance with such
Act.

 

    104 

     

    

 

 

Section 9.15.       
Interest Rate Limitation. Notwithstanding anything herein to the contrary, if at any time the interest rate
applicable to any Loan, together with all fees, charges and other amounts that are treated as interest on such Loan under applicable
law (collectively the “Charges”), shall exceed the maximum lawful rate (the “Maximum Rate”)
that may be contracted for, charged, taken, received or reserved by the Lender holding such Loan in accordance with applicable
law, the rate of interest payable in respect of such Loan hereunder, together with all Charges payable in respect thereof, shall
be limited to the Maximum Rate and, to the extent lawful, the interest and Charges that would have been payable in respect of such
Loan but were not payable as a result of the operation of this Section shall be cumulated and the interest and Charges payable
to such Lender in respect of other Loans or periods shall be increased (but not above the Maximum Rate therefor) until such cumulated
amount, together with interest thereon at the Federal Funds Effective Rate to the date of repayment, shall have been received by
such Lender.

 

Section 9.16.       
Release of Liens and Guarantees. A Guarantor (for the avoidance of doubt, other than the Borrowers) shall
be released from its obligations under the Loan Documents, and all security interests created by the Collateral Documents in Collateral
owned by such Guarantor shall be released, upon the consummation of any transaction permitted by this Agreement as a result of
which such Guarantor ceases to be a Restricted Subsidiary (including any voluntary liquidation or dissolution of such Guarantor
in accordance with Section 6.03); provided that, if so required by this Agreement, the Required Lenders shall have
consented to such transaction and the terms of such consent shall not have provided otherwise. Upon any sale or other transfer
by any Loan Party (other than to a Borrower or any other Loan Party or to any other Subsidiary of the Parent Borrower) of any Collateral
in a transaction permitted under this Agreement, or upon the effectiveness of any written consent to the release of the security
interest created under any Collateral Document in any Collateral pursuant to Section 9.02, the security interests in such
Collateral created by the Collateral Documents shall be automatically released. In connection with any termination or release pursuant
to this Section, the Administrative Agent shall execute and deliver to any Loan Party, at such Loan Party’s expense, all
documents that such Loan Party shall reasonably request to evidence such termination or release. Any execution and delivery of
documents pursuant to this Section shall be without recourse to or warranty by the Administrative Agent.

 

Section 9.17.        No
Fiduciary Relationship. Each Borrower, on behalf of itself and the Subsidiaries, agrees that in connection with all
aspects of the transactions contemplated hereby and any communications in connection therewith, the Parent Borrower, the
Subsidiaries and its other Affiliates, on the one hand, and the Administrative Agent, the Lenders and their Affiliates, on
the other hand, will have a business relationship that does not create, by implication or otherwise, any fiduciary duty on
the part of the Administrative Agent, the Lenders or their Affiliates, and no such duty will be deemed to have arisen in
connection with any such transactions or communications. The Administrative Agent, the Lenders and their Affiliates may be
engaged, for their own accounts or the accounts of customers, in a broad range of transactions that involve interests that
differ from those of the Parent Borrower, the Subsidiaries and its other Affiliates, and none of the Administrative Agent, the
Lenders or their Affiliates has any obligation to disclose any of such interests to the Parent Borrower, the Subsidiaries or
its other Affiliates. To the fullest extent permitted by law, each Borrower hereby waives and releases any claims that it or
any of its Affiliates may have against the Administrative Agent, the Lenders and their Affiliates with respect to any breach
or alleged breach of agency or fiduciary duty in connection with any aspect of any transaction contemplated hereby.

 

    105

     

    

 

Section 9.18.       
Non-Public Information.

 

(a)              
Each Lender acknowledges that all information, including requests for waivers and amendments, furnished by a Borrower or
the Administrative Agent pursuant to or in connection with, or in the course of administering, this Agreement will be syndicate-level
information, which may contain MNPI. Each Lender represents to the Borrowers and the Administrative Agent that (i) it has
developed compliance procedures regarding the use of MNPI and that it will handle MNPI in accordance with such procedures and applicable
law, including Federal, state and foreign securities laws, and (ii) it has identified in its Administrative Questionnaire
a credit contact who may receive information that may contain MNPI in accordance with its compliance procedures and applicable
law, including Federal, state and foreign securities laws.

 

(b)              
The Borrowers and each Lender acknowledge that, if information furnished by the Loan Parties pursuant to or in connection
with this Agreement is being distributed by the Administrative Agent through the Platform, (i) the Administrative Agent may
post any information that the Borrowers have indicated as containing MNPI solely on that portion of the Platform designated for
Private Side Lender Representatives and (ii) if the Borrowers have not indicated whether any information furnished by it pursuant
to or in connection with this Agreement contains MNPI, the Administrative Agent reserves the right to post such information solely
on that portion of the Platform designated for Private Side Lender Representatives. The Borrowers agree to clearly designate all
information provided to the Administrative Agent by or on behalf of the Borrowers that is suitable to be made available to Public
Side Lender Representatives, and the Administrative Agent shall be entitled to rely on any such designation by the Borrowers without
liability or responsibility for the independent verification thereof.

 

Section 9.19.       
Intercreditor Agreement. (a) Each of the Lenders and the other Secured Parties acknowledges that obligations
of the Loan Parties under the ABL Credit Agreement are secured by Liens on assets of the Loan Parties that constitute Collateral
and that the relative Lien priorities and other creditor rights of the Secured Parties and the secured parties under the ABL Credit
Agreement will be set forth in the Intercreditor Agreement. Each of the Lenders and the other Secured Parties hereby acknowledges
that it has received a copy of the Intercreditor Agreement. Each of the Lenders and the other Secured Parties hereby irrevocably
authorizes and directs the Administrative Agent to execute and deliver, in each case on behalf of such Secured Party and without
any further consent, authorization or other action by such Secured Party, the Intercreditor Agreement and any documents relating
thereto.

 

(a)               Each
of the Lenders and the other Secured Parties hereby irrevocably (i) consents to the treatment of Liens provided for under the
Intercreditor Agreement, including to the subordination of the Liens on the ABL Priority Collateral securing the Loan
Document Obligations on the terms set forth in the Intercreditor Agreement, (ii) agrees that, upon the execution and delivery
thereof, such Secured Party will be bound by the provisions of the Intercreditor Agreement as if it were a signatory thereto
and will take no actions contrary to the provisions of the Intercreditor Agreement, (iii) agrees that no Secured Party shall
have any right of action whatsoever against the Administrative Agent as a result of any action taken by the Administrative
Agent pursuant to this Section 9.19 or in accordance with the terms of the Intercreditor Agreement, (iv) authorizes and
directs the Administrative Agent to carry out the provisions and intent of each such document and (v) authorizes and directs
the Administrative Agent to take such actions as shall be required to release Liens on the Collateral in accordance with the
terms of the Intercreditor Agreement.

 

    106

     

    

 

(b)              
Each of the Lenders and the other Secured Parties hereby irrevocably further authorizes and directs the Administrative Agent
to execute and deliver, in each case on behalf of such Secured Party and without any further consent, authorization or other action
by such Secured Party, any amendments, supplements or other modifications of the Intercreditor Agreement that the Borrowers may
from time to time request and that are reasonably acceptable to the Administrative Agent (i) to give effect to any establishment,
incurrence, amendment, extension, renewal, refinancing or replacement of any Loan Document Obligations or the Indebtedness under
the ABL Credit Agreement to the extent applicable, (ii) to confirm for any party that the Intercreditor Agreement is effective
and binding upon the Administrative Agent on behalf of the Secured Parties or (iii) to effect any other amendment, supplement or
modification permitted by the terms of the Intercreditor Agreement.

 

(c)              
Each of the Lenders and the other Secured Parties hereby irrevocably further authorizes and directs the Administrative Agent
to execute and deliver, in each case on behalf of such Secured Party and without any further consent, authorization or other action
by such Secured Party, any amendments, supplements or other modifications of any Collateral Document to add or remove any legend
that may be required pursuant to the Intercreditor Agreement.

 

(d)              
The Administrative Agent shall have the benefit of the provisions of Article VIII with respect to all actions taken
by it pursuant to this Section or in accordance with the terms of the Intercreditor Agreement to the full extent thereof.

 

Section 9.20.       
Acknowledgement and Consent to Bail-In of EEA Financial Institutions. Notwithstanding anything to the contrary
in any Loan Document or in any related agreement, arrangement or understanding among the parties hereto, each party hereto acknowledges
that any liability of any EEA Financial Institution arising under any Loan Document, to the extent such liability is unsecured,
may be subject to the Write-Down and Conversion Powers of an EEA Resolution Authority and agrees and consents to, and acknowledges
and agrees to be bound by:

 

(a)           
the application of any Write-Down and Conversion Powers by an EEA Resolution Authority to any such liabilities arising hereunder
that may be payable to it by any party hereto that is an EEA Financial Institution; and

 

(b)           
the effects of any Bail-In Action on any such liability, including, if applicable:

 

    107

     

    

 

(i)   a reduction in full or in part or cancellation of any such liability;

 

(ii)  a
conversion of all, or a portion of, such liability into shares or other instruments of ownership in such EEA Financial Institution,
its parent entity, or a bridge institution that may be issued to it or otherwise conferred on it, and that such shares or other
instruments of ownership will be accepted by it in lieu of any rights with respect to any such liability under this Agreement
or any other Loan Document; or

 

(iii) the
variation of the terms of such liability in connection with the exercise of the Write-Down and Conversion Powers of any EEA Resolution
Authority.

 

[Signature pages follow]

 

    108

     

    

 

IN WITNESS WHEREOF, the parties hereto have
caused this Agreement to be duly executed by their respective authorized officers as of the day and year first above written.

 

	 	PARENT BORROWER:
	 
	 	ASCENA RETAIL GROUP, INC.
	 
	 	By:	 
	 	 	Name:
	 	 	Title:

 

[Signature Page
to the Term Credit Agreement]

 

    

     

    

 

	 	SUBSIDIARY BORROWER:
	 
	 	ANNTAYLOR RETAIL, INC.
	 
	 	By:	 
	 	 	Name:
	 	 	Title:

 

[Signature Page
to the Term Credit Agreement]

 

     

     

    

 

	 	ALTER DOMUS (US) LLC,
	 	as Administrative Agent,
	 
	 	By:	 
	 	 	Name:
	 	 	Title:

 

[Signature Page
to the Term Credit Agreement]

 

    

     

    

 

Schedule 2.01

 

Commitments

 

	Lender	 	Commitment
	[    ]	 	$	 	[   ],000,000
	Total	 	$	 	[   ],000,000

 

    

     

    

 

Schedule 5.11

Required Milestones

 

The Loan Parties shall use their reasonable
best efforts to pursue and implement the Restructuring Transactions as defined in, and in accordance with, the RSA and shall, subject
to the availability of the Court and as such time periods may be extended by the Required Lenders, achieve the following milestones:

 

(a)              
the Petition Date has not occurred by 11:59 p.m. (Eastern Time) on July 23, 2020;

 

(b)              
the Debtors have not filed the Rent Deferral Motion (as defined in the RSA) with the Court within three (3) calendar days
of the Petition Date;

 

(c)              
the Court has not entered the Cash Collateral Order (as defined in the RSA) on an interim basis by the date that is five
(5) Business Days after the Petition Date;

 

(d)              
the Court has not entered the DIP Financing Order (as defined in the RSA) on a final basis by the date that is thirty-five
(35) calendar days after the Petition Date;

 

(e)              
the Court has not entered the Disclosure Statement Order (as defined in the RSA) by the date that is sixty (60) calendar
days after the Petition Date;

 

(f)               
solicitation of the Plan (as defined in the RSA) has not commenced by the date that is seventy (70) calendar days after
the Petition Date;

 

(g)              
the Court has not entered the Confirmation Order (as defined in the RSA) by the date that is one hundred ten (110) calendar
days after the Petition Date; and

 

(h)              
the Plan Effective Date (as defined in the RSA) has not occurred by the date that is one hundred thirty (130) calendar days
after the Petition Date.

 

    

     

    

 

Exhibit B

 

[Attached]

 

    

     

    

 

 

Exit Facility Term Sheet1

 

	Borrowers:	Reorganized Ascena Retail Group, Inc., a Delaware corporation (the “Parent Borrower”) and AnnTaylor Retail, Inc., a Florida corporation (the “Subsidiary Borrower” and, together with the Parent Borrower, the “Borrowers”).
	Administrative Agent and Collateral Agent:	Alter Domus (US) LLC (in its capacity as administrative agent, the “Administrative Agent”, and in its capacity as collateral agent, the “Collateral Agent”).
	Lenders:	Holders of DIP Term Facility Claims will receive First Out Term Loans and, together with other holders of Term Loan Claims, Last Out Term Loans (each as defined below), respectively, as set forth in the Proposed Plan (collectively, the “Lenders”) 

	Term Loan Facility:	
        First lien senior secured term loan facility
        in an aggregate original principal amount of $400 million, denominated in US Dollars, consisting of:

         

        ·     $311.8 million of first-out term loans (the “First Out Term Loan Facility”, the loans thereunder,
the “First Out Term Loans” and the commitments thereunder, the “First-Out Commitments”)
converted in accordance with the Proposed Plan to holders of DIP Term Facility Claims; and

         

        ·     $88.2 million of last-out term loans (the “Last Out Term Loan Facility”, the loans thereunder,
the “Last Out Term Loans” and the commitments thereunder, the “Last-Out Commitments”)
distributed to holders of Term Loan Claims in accordance with the Proposed Plan.

         

        As used herein, “Term
        Loan Facility” means, collectively, the First Out Term Loan Facility and the Last Out Term Loan Facility. “Commitments”
        means, collectively, the First Out Commitments and the Last Out Commitments. “Term Loans” means, collectively,
        the First Out Term Loans and the Last Out Term Loans.

         

        The First Out Term Loans
        will be “first out” in right of payment priority and the Last Out Term Loans will be “last out” in right
        of payment priority (in each case, as between the tranches of Term Loans). The First Out Term Loans and Last Out Term Loans shall
        be secured on a pari passu basis by the same lien on the Collateral (as defined below).

         

 

 

1
Capitalized terms used but not defined in this Exit Facility Term Sheet have the meanings ascribed to them in the Restructuring
Support Agreement, dated as of July 23, 2020 (the “Restructuring Support Agreement”) to which this Exit
Facility Term Sheet is attached or the Proposed Plan attached as Exhibit B to the Restructuring Support Agreement.

 

    1

     

    

 

	Definitive Documentation:	The definitive documentation for the Term Loan Facility (the “Definitive Documentation”) shall, except as otherwise set forth herein, be based on the Term Credit Agreement, dated as of  August 21, 2015 (as amended, supplemented or otherwise modified prior to the date hereof), by and among Ascena Retail Group, Inc., AnnTaylor Retail, Inc., certain subsidiaries of the Parent Borrower party thereto, Goldman Sachs Bank USA, as the administrative agent and the collateral agent, and certain lenders party thereto from time to time (the “Prepetition Term Loan Credit Agreement”), (i) as modified by the terms set forth herein, (ii) subject to modifications to reflect changes in law or accounting standards since the date of such precedent and administrative agency, collateral agency and operational requirements of the Administrative Agent and Collateral Agent and (iii) with such other terms and conditions as may be reasonably agreed between the Borrowers and the Required Consenting Stakeholders; provided that, except as otherwise agreed by the Required Consenting Stakeholders, the Definitive Documentation shall be substantially consistent with the documentation governing the Exit ABL Facility (other than (i) provisions that are specific to asset-based facilities, (ii) the financial covenants applicable thereto, (iii) cross-defaults with respect to the Term Loan Facility and (iv) such other terms mutually agreed between the Borrowers and the Required Consenting Stakeholders).  The Definitive Documentation shall be negotiated in good faith within a reasonable time period to be determined based on the expected date of Bankruptcy Court’s entry into the Confirmation Order, with initial drafts of the Definitive Documentation to be prepared by counsel for the Consenting Stakeholders, which is Milbank LLP. This paragraph, collectively, is referred the here as the “Documentation Principles”.

 

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	Maturity Date:	
        First Out Term Loans: 4 years after the
        Effective Date (the “First Out Maturity Date”).

         

        Last Out Term Loans: 5 years after the
        Effective Date (the “Last Out Maturity Date”).

         

	Amortization:	
        First Out Term Loans: Commencing with the
        last day of the first full calendar quarter following the Effective Date, the outstanding principal amount of the First Out Term
        Loans will be payable on each calendar quarter in equal amounts of (i) for each calendar quarter occurring on or prior to the second
        anniversary of the Effective Date, 1.00% per annum and (ii) for each calendar quarter thereafter, 3.00% per annum,
        in each case of the original principal amount of the First Out Term Loans, with the remaining balance, together with all other
        amounts owed with respect thereto, payable on the First Out Maturity Date, subject to reduction pursuant to the prepayment provisions
        to be mutually agreed in the Definitive Documentation.

         

        Last Out Term Loans: The outstanding principal
        amount of the Last Out Term Loans will be payable on each calendar quarter in equal amounts of 1.00% per annum of the original
        principal amount of the Last Out Term Loans, with the remaining balance, together with all other amounts owed with respect thereto,
        payable on the Last Out Maturity Date .

         

	Voluntary Prepayments:	
        The Borrowers may make voluntary prepayments
        of the Term Loans, in each case, other than in connection with a repricing event, without premium or penalty, subject to reimbursement
        of the Lenders’ redeployment costs in the case of a prepayment of LIBOR borrowings other than on the last day of the relevant
        interest period.

         

	Mandatory Prepayments:	
        Substantially similar to the Prepetition
        Term Loan Credit Agreement, subject to the Documentation Principles; provided that no prepayment shall be required pursuant to
        Section 2.09(c) thereof for any Excess Cash Flow (as defined in the Prepetition Term Loan Credit Agreement).

         

 

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	Interest:	
        With respect to the First Out Term Loans,
        at the Parent Borrower’s election:

         

        ·      ABR (defined in a manner substantially similar to the Prepetition Term Loan Credit Agreement) plus 10.75% per annum
in cash or Adjusted LIBO Rate (defined in a manner substantially similar to the Prepetition Term Loan Credit Agreement) plus
11.75% per annum in cash (subject to a 0.00% per annum floor on ABR and a 1.00% per annum floor on the Adjusted LIBO
Rate) .

         

        With respect to the Last
        Out Term Loans, at the Parent Borrower’s election:

         

        ·             prior to the second anniversary of the Effective Date, ABR plus 2.00% per annum in cash and 8.00% per annum
        in kind (“PIK”) or Adjusted LIBO Rate plus 2.50% per annum in cash and 8.50% PIK, and thereafter,
        ABR plus 10.00% per annum in cash or Adjusted LIBO Rate plus 11.00% per annum in cash (in each case
        subject to a 0.00% per annum floor on ABR and a 1.00% per annum floor on the Adjusted LIBO Rate).

         

	Prepayment Premium	NC1/106.375%/103.1875%/par, with the Make-Whole Amount payable at an amount equal to the present value of the amount of interest that would have been paid on the principal amount of the Loans to and including the 3.5 year anniversary of the Closing Date (in each case, calculated on the basis of the interest rate with respect to the Loans then in effect, on a quarterly basis and on the basis of actual days elapsed over a year of three hundred sixty-five (365) days). The present value calculation shall be calculated using the discount rate equal to the Treasury Rate as of such repayment or prepayment date or date of required repayment plus fifty (50) basis points. The Prepayment Premium and Make-Whole Amount shall be payable upon any repricing event or acceleration. The Definitive Documentation shall contain a “Momentive” provision satisfactory to the Required Consenting Stakeholders.

 

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	Guarantees:	
        All obligations of
        the Borrowers under the definitive credit agreement for the Term Loan Facility (the “Exit Credit Agreement”)
        and the related guarantee and collateral agreement, mortgage agreements and other collateral documents (together with the Exit
        Credit Agreement, the “Loan Documents”) (collectively, the “Borrowers Obligations”)
        will be unconditionally guaranteed jointly and severally on a senior basis (the “Guarantees”) by the
        direct parent of the Borrower and each existing and subsequently acquired or organized direct or indirect Material Domestic Subsidiary,
        Material Foreign Subsidiary and, notwithstanding anything to the contrary herein, (x) each Luxembourg subsidiary, (y) each guarantor
        party to the Prepetition Term Loan Credit Agreement and (z) each subsidiary owning material intellectual property (or owning subsidiaries
        which own material intellectual property) or material real property of the company (the “Subsidiary Guarantors”,
        together with the Borrowers, the “Loan Parties”); provided that, notwithstanding anything to the contrary
        herein, (i) the guarantor exclusions shall be limited to (a) immaterial domestic subsidiaries, (b) immaterial foreign subsidiaries
        (which, for avoidance of doubt, will not include any Luxembourg subsidiaries), (c) bona fide joint ventures with third parties,
        (d) any subsidiary that is prohibited by applicable law, rule or regulation or by any contractual obligation at the time such person
        becomes a subsidiary (and not entered into in contemplation of this clause (d) and for so long as such prohibition or restriction
        remains in effect), as applicable, from granting a guarantee or which would require governmental (including regulatory) consent,
        approval, license or authorization to provide such guarantee unless such consent, approval, license or authorization has been received,
        (e) any subsidiary acquired pursuant to an acquisition or other investment permitted by the Definitive Documentation that has assumed,
        permitted secured indebtedness not incurred in contemplation of such acquisition or other investment and any subsidiary thereof
        that guarantees such secured indebtedness, in each case to the extent and for so long as such secured and (f) circumstances where
        the Borrowers and the Administrative Agent reasonably agree that the cost of providing such a guarantee is excessive in relation
        to the value afforded thereby and (ii) the Definitive Documentation shall not permit any unrestricted subsidiaries.

         

        "CFC" shall mean any direct or indirect Foreign
        Subsidiary of any Borrower that is a "controlled foreign corporation" within the meaning of Section 957 of the Internal
        Revenue Code of 1986, as amended (the “Code”).

         

 

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        “CFC Holdco”
        shall mean any direct or indirect subsidiary of any Borrower, which subsidiary is treated as a disregarded entity for U.S. federal
        income tax purposes and substantially all of the assets of which consist of the equity interests in and/or indebtedness issued
        by one or more Foreign Subsidiaries that are CFCs.”

         

        “Material
        Domestic Subsidiary” shall be defined to include any subsidiary organized in the U.S. with total assets or EBITDA
        in excess of 2.5% of the total assets or EBITDA of the Parent Borrower and its subsidiaries on a consolidated basis; provided,
        that at no time shall the aggregate total assets or EBITDA of all Material Domestic Subsidiaries, taken together, account for more
        than 5.0% of the total assets or EBITDA of the Parent Borrower and its subsidiaries on a consolidated basis.

         

        “Material
        Foreign Subsidiary” shall be defined to include any Luxembourg subsidiary and any other subsidiary organized in a
        non-U.S. jurisdiction where the total assets or EBITDA associated with such jurisdiction (in the aggregate for all subsidiaries
        organized therein) exceeds 2.5% of the total assets or EBITDA of the Parent Borrower and its subsidiaries on a consolidated basis.
        Notwithstanding the foregoing or anything to the contrary in this term sheet, any guarantee granted by any CFC shall be terminated
        (and no more than 65% of the voting stock of any Material Foreign Subsidiary shall be Collateral) for so long as such guarantee
        and/or pledge of the additional Collateral shall cause (or is reasonably expected to cause) any U.S. shareholder of such CFC to
        include in income for any year any Section 956 Income that is in excess of the Income Threshold (as defined below).

         

        Notwithstanding the
        foregoing or anything to the contrary in this term sheet, any guarantee granted by any CFC Holdco shall be terminated (and no more
        than 65% of the voting stock of any CFC Holdco shall be Collateral) for so long as such guarantee and/or pledge of the additional
        Collateral shall cause (or is reasonably expected to cause) any U.S. shareholder of such CFC Holdco to include in income for any
        year an amount (after accounting for any reduction under the rules of Treas. Reg. § 1.956-1 and Section 245A of the Code)
        under Section 956 of the Code (“Section 956 Income”) that is in excess of the Income Threshold. The “Income
        Threshold” shall mean, with respect to any CFC Holdco or CFC, as applicable, an amount to be mutually agreed.

         

        “subsidiary(ies)”
        has the meaning assigned to such term in the Pre-Petition Credit Agreement.

 

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	Security:	
        Subject to the intercreditor agreement
        described below under “Intercreditor Agreement” and other customary limitations and exclusions to be
        mutually agreed, the Borrowers Obligations and the Guarantees (collectively the “Secured Obligations”)
        will be secured on a first priority basis by substantially all assets of the Loan Parties (collectively, the “Collateral”);
        provided that, notwithstanding anything to the contrary set forth herein (i) all cash and cash equivalents held in accounts (other
        than customary excluded accounts) in the name of any Loan Party shall be subject to account control agreements in favor of the
        Collateral Agent (or for so long as the Exit ABL Facility and ABL Intercreditor are in effect, in favor of the ABL Agent), (ii)
        all equity in the Borrowers, all domestic (including immaterial) subsidiaries, all Luxembourg subsidiaries, all foreign subsidiaries
        and all Material Foreign Subsidiaries shall at all times be included in the Collateral and (iii) all material intellectual property
        and material real property shall at all times be included in the Collateral. The pledge of, security interest in, and mortgages
        on, the Collateral granted by each Loan Party shall secure its own respective Secured Obligations.

         

        All of the foregoing described in this
        section and the “Guarantees” section above, the “Collateral and Guarantee Requirement”.

         

 

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	Conditions to Borrowings:	
        The availability
        of the Term Loans under the Exit Credit Agreement will be subject solely to satisfaction (or waiver) of the following conditions
        (the date on which such conditions are satisfied (or waived) being the “Effective Date”):

         

        ·      execution and delivery of the Definitive Documentation to be delivered at closing;

         

        ·      delivery
of promissory notes to the Lenders, if requested at least two (2) Business Days before the Effective Date;

         

        ·      delivery of board resolutions and organizational documents of the Loan Parties;

         

        ·     
        delivery of incumbency/specimen signature certificate of the Loan Parties;

         

        ·             delivery of customary legal opinions by counsel to the Borrowers;

         

        ·      there shall not have occurred since the Petition Date any event or condition that has had or would be reasonably expected,
either individually or in the aggregate, to have a Material Adverse Effect (for purposes of this condition, defined in a manner
based on the Prepetition Term Loan Credit Agreement but including a proviso stating that in determining whether a “Material
Adverse Effect” has occurred or exists under clause (a) thereof, the impacts of the chapter 11 cases and of COVID-19 on
the assets, business, financial condition or results of operations on the Loan Parties or any of their respective Subsidiaries
will be disregarded (provided that this exception shall not apply to the extent that it is materially disproportionately adverse
to the Parent Borrower and its Restricted Subsidiaries, taken as a whole, as compared to other companies in the same industry
in which the Parent Borrower and its Restricted Subsidiaries operate));

         

        ·      the Administrative Agent shall have received a certificate (in substantially the same form as the corresponding certificate
delivered in connection with the Prepetition Term Loan Credit Agreement) of the chief financial officer (or financial officer
in a similar role) of the Parent Borrower, stating that it and its subsidiaries, taken as a whole, as of the Effective Date, are
solvent, in each case, after giving effect to the consummation of the Plan;

         

 

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        ·      all fees due to the Administrative Agent, Collateral Agent and Lenders including advisors to the Consenting Stakeholders, Greenhill
        & Co. and Milbank LLP, shall have been paid (or shall have been caused to be paid), and all expenses to be paid or reimbursed
        to the Administrative Agent, Collateral Agent and Lenders that have been invoiced at least three (3) Business Days prior to the
        Effective Date shall have been paid (or shall have been caused to be paid);

         

        ·      the Loan Parties shall have provided the documentation and other information to the Administrative Agent that are required by regulatory
        authorities under applicable “know-your-customer” rules and regulations, including the Patriot Act, at least three
        (3) Business Days prior to the Effective Date (or such later date agreed to by the Administrative Agent) to the extent requested
        ten (10) days prior to the Effective Date;

         

        ·      the Bankruptcy Court shall have entered (A) the Confirmation Order and (B) one or more orders authorizing and approving the extensions
        of credit in respect of the Exit Credit Agreement, each in the amounts and on the terms set forth herein, and all transactions
        contemplated by the Exit Credit Agreement, and, in each case, such orders shall be in full force and effect and shall not have
        been stayed, reversed, vacated or otherwise modified;

         

        ·      the Collateral and Guarantee Requirement (excluding certain customary post-closing items to be mutually agreed) shall have been
        satisfied or waived and the Intercreditor Agreement and the Agreement Among Lenders shall have been executed and delivered and
        be in full force and effect;

         

        ·      the effective date under the Plan shall have occurred, or contemporaneous with the conversion of the DIP Term Facility to the Term
        Loan Facility shall occur, and all conditions precedent thereto as set forth therein shall have been satisfied or waived (including
        (x) the issuance to (i) the holders of DIP Term Facility Claims of 44.9% of the New Common Stock, subject to dilution from the
        Management Incentive Plan and (ii) the holders of Term Loan Claims of 55.1% of New Common Stock (subject to reduction for New Common
        Stock distrusted in accordance with the following clause (y)) and (y) each holder of a Term Loan Claim that is a Required Consenting
        Stakeholder (including through any of its Related Parties) having received its pro rata share of an amount of New Common Stock
        equal to $7.5 million, in each case shall have occurred substantially contemporaneously with the closing of the Term Loan Facility);

 

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        ·      the Pre-Petition ABL Credit Agreement shall have been replaced with a new credit agreement providing asset-based lending facilities
        for working capital and other general corporate purposes of the Borrowers and its subsidiaries on terms and conditions reasonably
        acceptable to the Required Consenting Stakeholders (any such credit agreement, the “Exit ABL Credit Agreement”,
        and the facility in place as of the Effective Date under either the Pre-Petition ABL Credit Agreement or the ABL Credit Agreement,
        the “Exit ABL Facility”);

         

        ·      (i) with respect to Catherine’s business segment either completion of a liquidation or consummation of a sale transaction
        as a going concern to a third party on terms satisfactory to the Required Consenting Stakeholders, and (ii) with respect to the
        Justice business segment, either completion of a liquidation, consummation of a sale transaction as a going concern to a third
        party or consummation of a reorganization of the business segment, in each case on terms reasonably satisfactory to the Required
        Consenting Stakeholders, in each case on or prior to the Effective Date;

         

        ·      minimum pro forma Liquidity (as defined in the DIP Term Facility), calculated after giving effect to the restructuring transactions
        and effectiveness of the Plan, of at least $150 million (pro forma for the occurrence of the Effective Date and related transactions,
        including after taking into account all restructuring expenses (including professional fees) that are paid post emergence and the
        availability of the Exit ABL Facility and any incurrence of loans thereunder);

 

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        ·      with respect to store leases which are not rejected, aggregate annual cost savings for FY2020 of at least $18 million, calculated
        in a manner consistent with how “Occupancy Cost Savings” are calculated in the Real Estate Services Agreement dated
        as of May 1, 2020 by and between A&G Realty Partners, LLC and the Parent Borrower;

         

        ·      with respect to the Premium segment and Lane Bryant (in aggregate), the number of store closures that shall have occurred prior
        to the Effective Date shall be consistent with the closures anticipated under the Company’s business plan provided to the
        Ad Hoc Committee Advisors (as determined by the Ad Hoc Committee Advisors in their reasonable discretion) or as otherwise consented
        to by the Required Consenting Stakeholders;

         

        ·      all pre-Petition transfers of intellectual property to the LuxCo Entities shall have been unwound and all licensing arrangements
        with respect thereto shall have been cancelled, in each case on terms reasonably satisfactory to the Required Consenting Stakeholders
        and all such intellectual property shall be owned and registered in the name of Annco, Inc., unless the Required Consenting Stakeholders
        and the Company mutually agree that the cost, difficulty, burden or consequences of such transfer and/or cancelation exceeds the
        practical benefits to the Lenders afforded thereby and cannot be completed in a tax efficient manner;

         

        ·      the accuracy of representations and warranties in all material respects (without duplication of any materiality qualifier) on the
        Effective Date (except to the extent any such representation or warranty is stated to relate solely to an earlier date, in which
        case such representation or warranty shall be true and correct in all material respects (without duplication of any materiality
        qualifier) as of such earlier date; and

         

        ·      the absence of the existence of any default or event of default.

 

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	Representations and Warranties:	Substantially similar to the Prepetition Term Loan Credit Agreement, subject to the Documentation Principles.
	Affirmative Covenants:	Usual and customary, subject to the Documentation Principles; provided that (i) financial reporting shall include (a) unaudited monthly internally generated financial statements and “flash reports”, together with certain KPI reports for each banner to be agreed (with such KPI report requirement to fall away upon the Parent Borrower and its subsidiaries achieving a consolidated total leverage ratio for four (4) consecutive fiscal quarters of not more than 1.50:1.00, (b) unaudited quarterly (for all four quarters) and audited annual financial statements, (c) quarterly MD&A and (d) an annual budget, (ii) the annual lender call referenced therein shall be revised to quarterly lender calls and (iii) the Parent Borrower shall use commercially reasonable efforts to obtain credit ratings by each of Standard & Poor’s Rating Services and Moody’s Investors Service, Inc. prior to the Effective Date, it being understood that there shall be no obligation to maintain any particular rating at any time. 
	Negative Covenants:	Usual and customary, subject to the Documentation Principles and subject to customary and usual exceptions, qualifications and “baskets” to be mutually agreed and set forth in the Exit Credit Agreement, which shall include a customary cumulative credit basket. 

	Financial Covenant:	
        First Out Term Loans:

         

        ·      Total
leverage ratio at levels to be agreed amongst the Company and the Initial Consenting Stakeholders, which shall be tested quarterly
commencing at the end of the first full fiscal quarter following the Effective Date.

         

        ·      Minimum liquidity covenant, which shall take into account unrestricted cash and ABL availability (based on
        borrowing base) at levels to be agreed amongst the Company and the Required Consenting Stakeholders, which shall be
        maintained at all times.

         

        ·      All expenses in connection with the Chapter 11 filing shall be added back to the calculation of EBITDA (to be defined in
the Definitive Documentation, subject to the Documentation Principles). Component definitions for determining total leverage ratio
are to be agreed amongst the Company and the Required Consenting Stakeholders.

         

        Last Out Term Loans: total leverage ratio,
        subject to a cushion relative to the First Out Term Loan levels that is acceptable to the Company and the Required Consenting Stakeholders.

 

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	Unrestricted Subsidiaries:	None.
	Events of Default:	Usual and customary for transactions of this type, subject to the Documentation Principles and to include a full cross-default to the Exit ABL Facility. Defaults in respect of a Financial Covenant shall be subject to customary equity cure rights.
	Voting:	Usual and customary for transactions of this type, subject to the Documentation Principles and the Agreement Among Lenders, but with First Out Lenders and Last Out Lenders voting as a single class; provided that (i) there shall be no limitation on voting by lenders that are affiliates of the Borrowers and (ii) any majority lender vote shall require the affirmative vote of at least two un-affiliated institutions.
	Required Lenders	Lenders having Term Loans outstanding that, taken together, represent more than 50% of the sum of all Term Loans outstanding at such time.
	Intercreditor Agreement:	Usual and customary for transactions of this type, subject to the Documentation Principles and based on that certain ABL Intercreditor Agreement, dated as of  August 21, 2015, among the ABL Agent, the Term Loan Agent, and the other parties thereto, except as otherwise agreed by the Required Consenting Term Loan Lenders.

 

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	Agreement Among Lenders:	To be entered into among the lenders under the First Out Term Loan Facility, the lenders under the Last Out Term Loan Facility and the Parent Borrower or, to be set forth in the Exit Credit Agreement and to provide that, with respect to any amendment, waiver, consent or other action, including the exercise of remedies or the provision of future DIP financings, the Last Out Lenders shall vote in the same manner as the First Out Lenders, other than with respect to amendments, waivers, consents or with respect to certain economic terms which are customarily all-lender votes.
	Cost and Yield Protection:	Usual and customary for transactions of this type, subject to the Documentation Principles.
	Defaulting Lenders:	Usual and customary for transactions of this type, subject to the Documentation Principles.
	Assignments and Participations:	Usual and customary for transactions of this type, subject to the Documentation Principles and permitting loan buy-backs and Dutch auctions on customary terms; provided that there shall be no restrictions on holdings by lenders that are affiliates of the Borrowers.   
	Refinancing, Extension and Replacement Facilities	Usual and customary provisions providing for the ability to refinance, extend or replace loans or any class of loans under the Term Loan Facility from time to time, in whole or part, with one or more new debt facilities.
	Expenses and Indemnification:	Usual and customary for transactions of this type, subject to the Documentation Principles (including, but limited to, the reasonable fees and expenses of no more than one counsel to the Required Lenders (other than the Administrative Agent), which counsel shall be Milbank LLP, and one counsel to the Administrative Agent and one local counsel for the Required Lenders in each relevant jurisdiction (other than the Administrative Agent) and one local counsel for the Administrative agent in each relevant jurisdiction.
	Governing Law and Forum:	New York.

 

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EXHIBIT D

 

Exit Facility Term Sheet

 

[Attached as Exhibit B to the Backstop
Commitment Letter]

 

    

     

    

 

 

EXHIBIT E

 

Form of Joinder Agreement

 

The undersigned (“Joinder
Party”) hereby acknowledges that it has read and understands the Restructuring Support Agreement, dated as of __________
(the “Agreement”),1 by and among ascena retail group, inc.
and its affiliates and subsidiaries bound thereto and the Consenting Stakeholders and agrees to be bound by the terms and conditions
thereof and shall be deemed a “Consenting Stakeholder” under the terms of the Agreement.

 

The Joinder Party specifically
agrees to be bound by the terms and conditions of the Agreement and makes all representations and warranties contained therein
as of the date hereof.

 

Date Executed:

 

	 	 
	Name:	 
	Title:	 
	Address:	 
	E-mail address(es):	 

 

	Aggregate Amounts Beneficially Owned or Managed on Account of:
	ABL Claims	 
	Term Loan Claims	 
	Equity Interests	 

 

 

 

		1	Capitalized terms used but not otherwise defined herein shall having the meaning given to such terms in the Agreement.

 

     

     

    

 

EXHIBIT F

 

Provision for Transfer Agreement

 

The undersigned
(“Transferee”) hereby acknowledges that it has read and understands the Restructuring Support Agreement,
dated as of __________ (the “Agreement”),2 by and among
ascena retail group, inc. and its affiliates and subsidiaries bound thereto and the Consenting Stakeholders, including the
transferor to the Transferee of any Company Claims/Interests (each such transferor, a “Transferor”), and
agrees to be bound by the terms and conditions thereof to the extent the Transferor was thereby bound, and shall be deemed a
“Consenting Stakeholder” under the terms of the Agreement.

 

The Transferee specifically
agrees to be bound by the terms and conditions of the Agreement and makes all representations and warranties contained therein
as of the date of the Transfer, including the agreement to be bound by the vote of the Transferor if such vote was cast before
the effectiveness of the Transfer discussed herein.

 

Date Executed:

 

	 	 
	Name:	 
	Title:	 
	Address:	 
	E-mail address(es):	 

 

	Aggregate Amounts Beneficially Owned or Managed on Account of:
	ABL Claims	 
	Term Loan Claims	 
	Equity Interests	 
	DIP ABL Facility Claims	 
	Backstop Commitments	 
	DIP Term Facility Claims	 

 

 

 

		2	Capitalized terms used but not otherwise defined herein shall having the meaning given to such terms in the Agreement.

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