Document:

Exhibit 10.6

 

 

EXECUTION COPY

 

INCOME TAX RECEIVABLE AGREEMENT

 

INCOME TAX RECEIVABLE AGREEMENT (as amended,
restated or otherwise modified from time to time, this “Agreement”), dated as of July 10, 2019, by and among
Liberty Tax, Inc., a Delaware corporation (the “Corporation”), and each of the TRA Holders (as defined below)
from time to time party hereto.

 

RECITALS

 

WHEREAS, the TRA Holders hold common units representing
membership interests (“Holdco Units”) in Franchise Group New Holdco, LLC, a Delaware limited liability company
(“Holdco”);

 

WHEREAS, Holdco Units together with shares of
voting non-economic preferred stock of the Corporation, par value $0.01 per share (“Voting Non-Economic Preferred Stock”)
are redeemable pursuant to an Exchange (as defined below) pursuant to and in accordance with the provisions of the Certificate
of Designation of the Voting Non-Economic Preferred Stock (as amended, restated or otherwise modified from time to time, the “Certificate
of Designation”) and the Holdco Agreement;

 

WHEREAS, Holdco, and each of its direct and
indirect subsidiaries that is treated as a partnership for U.S. federal income tax purposes, will have in effect an election under
Section 754 of the Internal Revenue Code of 1986, as amended (the “Code”) (and under any similar provisions
of applicable state or local law), which election is intended to result in an adjustment to the tax basis of the assets owned (directly
or indirectly) by Holdco at the time of an Exchange (as defined below) (such time, the “Exchange Date”) (such
assets and any asset whose tax basis is determined, in whole or in part, by reference to the adjusted basis of any such asset,
the “Reference Assets”) by reason of such Exchange and the receipt of payments under this Agreement;

 

WHEREAS, the income, gain, loss, expense and
other Tax items of Holdco may be affected by the Basis Adjustment (as defined below) and the Corporation may be affected by the
Imputed Interest (as defined below); and

 

WHEREAS, the parties to this Agreement desire
to make certain arrangements with respect to the effect of the Basis Adjustment and Imputed Interest on the liability for Taxes
of the Corporation.

 

NOW, THEREFORE, in consideration of the foregoing
and the respective covenants and agreements set forth herein, and other good and valuable consideration, the sufficiency and receipt
of which are hereby acknowledged, and intending to be legally bound hereby, the parties hereto agree as follows:

 

     

     

    

 

ARTICLE I

DEFINITIONS and interpretation

 

SECTION 1.01 Definitions. As used in
this Agreement, the terms set forth in this Article I shall have the following meanings (such meanings to be equally applicable
to both the singular and plural forms of the terms defined).

 

“Advisory Firm” means an
accounting or law firm that is nationally recognized as being expert in Tax matters and that is agreed to by the board of directors
of the Corporation.

 

“Advisory Firm Letter” means
a letter from the Advisory Firm stating that the relevant schedule, notice or other information to be provided by the Corporation
to the applicable TRA Holder and all supporting schedules and work papers were prepared in a manner consistent with the terms of
this Agreement and, to the extent not expressly provided in this Agreement, on a reasonable basis in light of the facts and law
in existence on the date such schedule, notice or other information is delivered to the applicable TRA Holder.

 

“Agreement” is defined in
the Preamble.

 

“Base Rate” means, for any
day, a floating rate equal to the higher of (i) the per annum rate publicly quoted from time to time by The Wall Street Journal
as the “Prime Rate” in the United States (or, if The Wall Street Journal ceases quoting a prime rate of the
type described, either (a) the per annum rate quoted as the base rate on corporate loans in a different national publication as
reasonably selected by the Corporation or (b) the highest per annum rate of interest published by the Board of Governors of the
Federal Reserve System in Federal Reserve statistical release H.15 (519) entitled “Selected Interest Rates” as the
bank prime loan rate or its equivalent), and (ii) the Federal Funds Rate plus fifty (50) basis points per annum. Each change in
any interest rate provided for in this Agreement based upon the Base Rate shall take effect at the time of such change in the Base
Rate.

 

“Basis Adjustment” means
the adjustment to the tax basis of a Reference Asset under Sections 1012, 732, 734(b), 743(b) and 754 of the Code and, in each
case, comparable sections of state and local tax laws as a result of an Exchange and the payments made pursuant to this Agreement.

 

A “Beneficial Owner” of a
security is a Person who directly or indirectly, through any contract, arrangement, understanding, relationship or otherwise, has
or shares: (i) voting power, which includes the power to vote, or to direct the voting of, such security or (ii) investment power,
which includes the power to dispose, or to direct the disposition of, such security. The terms “Beneficially Own”
and “Beneficial Ownership” shall have correlative meanings.

 

“Business Day” means any
day other than a Saturday or a Sunday or a day on which banks located in New York City, New York generally are authorized or required
by law to close.

 

“Certificate of Designation”
is defined in the Recitals.

 

“Change of Control” means
the occurrence of any of the following events:

 

(i) any Person or any group of Persons acting
together which would constitute a “group” for purposes of Section 13(d) of the Securities and Exchange Act of 1934,
is or becomes the Beneficial Owner, directly or indirectly, of securities of the Corporation representing more than 50% of the
combined voting power of the Corporation’s then outstanding voting securities; provided, however, that a Change
of Control shall not occur under this subsection if Vintage Capital Management, LLC, or any of its affiliates, by itself or acting
together with other TRA Holders as a “group,” becomes the Beneficial Owner, directly or indirectly, of securities of
the Corporation representing more than 50% of the combined voting power of the Corporation’s then outstanding voting securities;
or

 

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(ii) the stockholders of the Corporation approve
a plan of complete liquidation or dissolution of the Corporation or there is consummated an agreement or series of related agreements
for the sale or other disposition, directly or indirectly, by the Corporation of all or substantially all of the Corporations’
assets, other than such sale or other disposition by the Corporation of all or substantially all of the Corporation’s assets
to any Person, at least 50% of the combined voting power of the voting securities of which are owned by stockholders of the Corporation
in substantially the same proportions as their ownership of the Corporation immediately prior to such sale.

 

Notwithstanding the foregoing, a “Change
of Control” shall not be deemed to have occurred by virtue of the consummation of any transaction or series of integrated
transactions immediately following which the record holders of the stock of the Corporation immediately prior to such transaction
or series of transactions continue to have substantially the same proportionate ownership in an entity which owns all or substantially
all of the assets of the Corporation immediately following such transaction or series of transactions.

 

“Code” is defined in the
Recitals.

 

“Corporation” is defined
in the Preamble.

 

“Corporation Return” means
the U.S. federal and/or state and/or local Tax Return, as applicable, of the Corporation filed with respect to Taxes of any Taxable
Year.

 

“Determination” shall have
the meaning ascribed to such term in Section 1313(a) of the Code or similar provision of state and local tax law, as applicable,
or any other event that finally and conclusively establishes the amount of any liability for Tax.

 

“Early Termination Date”
means the date of an Early Termination Notice for purposes of determining the Early Termination Payment.

 

“Early Termination Notice”
is defined in Section 4.02.

 

“Early Termination Payment”
is defined in Section 4.03(b).

 

“Early Termination Schedule”
is defined in Section 4.02.

 

“Early Termination Rate”
means 10%.

 

“Exchange” means any redemption
by Holdco and the Corporation, respectively, of Holdco Units and shares of Voting Non-Economic Preferred Stock held by a TRA Holder,
or by a permitted transferee of such TRA Holder, in each case in accordance with the Certificate of Designation and the Holdco
Agreement.

 

“Exchange Basis Schedule”
is defined in Section 2.02.

 

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“Exchange Date” is defined
in the Recitals.

 

“Expert” is defined in Section
6.12.

 

“Federal Funds Rate” mean,
for any day, a floating rate equal to the weighted average of the rates on overnight Federal funds transactions among members of
the Federal Reserve System, published by the Federal Reserve Bank of New York on the preceding Business Day or, if no such rate
is so published, the average rate per annum, as reasonably determined by the Corporation, quoted for overnight Federal Funds transactions
last arranged prior to such day.

 

“Holdco” is defined in the
Recitals.

 

“Holdco Agreement” means
the Amended and Restated Limited Liability Company Agreement of Holdco, dated as of the date hereof, as amended, restated or otherwise
modified from time to time.

 

“Holdco Units” is defined
in the Recitals.

 

“Imputed Interest” means
any interest imputed under Section 1272, 1274 or 483 or other provision of the Code and any similar provision of state and local
tax law with respect to the Corporation’s payment obligations under this Agreement.

 

“IRS” means the United States
Internal Revenue Service.

 

“Market Value” means (i)
the low-high average price of the Shares as determined on the applicable Exchange Date on the national securities exchange, interdealer
quotation system or over-the-counter market on which such Shares are then listed, quoted or admitted to trading, as reported by
The Wall Street Journal; provided that if the low-high average price of the Shares is not determinable by The
Wall Street Journal for the applicable Exchange Date, then the Market Value shall mean the low-high average price of the Shares
as determined on the Trading Day immediately preceding such Exchange Date on the national securities exchange, interdealer quotation
system or over-the-counter market on which such Shares are then listed, quoted or admitted to trading, as reported by The Wall
Street Journal, or (ii) if the Shares are not listed, quoted or admitted on a national securities exchange, interdealer quotation
system or over-the-counter market, the fair market value on the applicable Exchange Date as determined in good faith by the Board
of Directors of the Corporation.

 

“Non-Stepped Up Tax Basis”
means, with respect to any asset at any time, the tax basis that such asset would have had at such time if no Basis Adjustment
had been made.

 

“Non-Stepped Up Tax Liability”
means, with respect to any Taxable Year, the liability for Taxes of the Corporation using the same methods, elections, conventions
and similar practices used on the relevant Corporation Return, but using the Non-Stepped Up Tax Basis instead of the tax basis
of the Reference Assets and excluding any deduction attributable to the Imputed Interest.

 

“Payment Date” means any
date on which a payment is made pursuant to this Agreement.

 

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“Person” means and includes
any individual, firm, corporation, partnership (including, without limitation, any limited, general or limited liability partnership),
company, limited liability company, trust, joint venture, association, joint stock company, unincorporated organization or similar
entity or governmental entity.

 

“Proportionate Share” means
an amount equal to a fractional share of the transferring TRA Holder’s Receivable, the numerator of which shall be the number
of Holdco Units that have been transferred to such transferee by the TRA Holder and the denominator of which shall be the total
number of Holdco Units held by the TRA Holder as of the date of this Agreement.

 

“Realized Tax Benefit” means,
for a Taxable Year, the excess, if any, of the Non-Stepped Up Tax Liability over the actual liability for Taxes of the Corporation
for such Taxable Year using the “with or without” methodology for U.S. federal income taxes and using an assumed 5%
tax rate for all state income taxes. If all or a portion of the actual liability for Taxes for the Taxable Year arises as a result
of an audit by a Taxing Authority of any Taxable Year, such liability shall not be included in determining the Realized Tax Benefit
unless and until there has been a Determination.

 

“Realized Tax Detriment”
means, for a Taxable Year, the excess, if any, of the actual liability for Taxes of the Corporation over the Non-Stepped Up Tax
Liability for such Taxable Year using the “with or without” methodology for U.S. federal income taxes and using an
assumed 5% tax rate for all state income taxes. If all or a portion of the actual liability for Taxes for the Taxable Year arises
as a result of an audit by a Taxing Authority of any Taxable Year, such liability shall not be included in determining the Realized
Tax Detriment unless and until there has been a Determination.

 

“Receivable” of a TRA Holder
means such TRA Holder’s rights, interests and entitlements hereunder as of the date of this Agreement.

 

“Reconciliation Procedures”
means those procedures set forth in Section 6.12.

 

“Reference Assets” is defined
in the Recitals.

 

“Schedule” means any of the
Exchange Basis Schedule, Tax Benefit Schedule and the Early Termination Schedule, and in each case, any amendments thereto.

 

“Shares” means shares of
common stock of the Corporation, par value $0.01 per share.

 

“Stock Exchange” means the
NASDAQ Global Select Market, the New York Stock Exchange, or such other stock exchange or other securities market on which the
Shares are at any time listed, quoted or admitted to trading.

 

“Tax Benefit Payment” is
defined in Section 3.01(b).

 

“Tax Benefit Schedule” is
defined in Section 2.03.

 

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“Tax Return” means any return,
declaration, report or similar statement filed or required to be filed with respect to Taxes (including any attached schedules),
including, without limitation, any information return, claim for refund, amended return and declaration of estimated Tax.

 

“Taxable Year” means a taxable
year as defined in Section 441(b) of the Code or comparable section of state or local tax law, as applicable, (and, therefore,
for the avoidance of doubt, may include a period of less than 12 months for which a Tax Return is made) ending on or after the
Exchange Date.

 

“Taxes” means any and all
U.S. federal, state, local and foreign taxes, assessments or similar charges measured with respect to net income and any interest,
additions to Tax or penalties applicable or related to such Tax.

 

“Taxing Authority” means
any domestic, foreign, federal, national, state, county or municipal or other local government, any subdivision, agency, commission
or authority thereof, or any quasi-governmental body exercising any taxing authority or any other authority exercising Tax regulatory
authority.

 

“TRA Holder” means the parties
hereto (other than the Corporation) and each other individual who from time to time executes a Joinder Agreement in the form attached
hereto as Exhibit A.

 

“Trading Day” means a day
on which the Stock Exchange, such other principal United States securities exchange, principal consolidated transaction reporting
system, over-the-counter market, principal other automated quotation system or professional market maker, as applicable, on which
the Shares are listed, quoted or admitted to trading (or that lists, quotes or trades the Shares, as applicable) is open for the
transaction of business (unless such listing, quotation or trading shall have been suspended for the entire day).

 

“Valuation Assumptions” means,
as of an Early Termination Date, the assumptions that (1) in each Taxable Year ending on or after such Early Termination Date,
the Corporation will have taxable income sufficient to fully utilize the deductions and other Tax benefits arising from the Basis
Adjustment and the Imputed Interest during such Taxable Year or future Taxable Years (including, for the avoidance of doubt, Basis
Adjustments and Imputed Interest that would result from future Tax Benefit Payments that would be paid in accordance with the Valuation
Assumptions) in which such deductions or other Tax benefits would become available, (2) the U.S. federal, state and local income
Tax rates that will be in effect for each such Taxable Year and future Taxable Years will be those specified for each such Taxable
Year by the Code and other law as in effect on the Early Termination Date, (3) all taxable income of the Corporation will be subject
to the maximum U.S. federal, state and local income Tax rates throughout the relevant period, (4) any loss carryovers generated
by the Basis Adjustment or the Imputed Interest and available as of the date of the Early Termination Date will be utilized by
the Corporation on a pro rata basis from the date of the Early Termination Date through the scheduled expiration of such loss carryovers
(provided that, in any year that the Corporation is prevented from fully utilizing net operating losses pursuant to Section 382
of the Code (or any successor provision or similar provision under state law), the amount utilized for purposes of this provision
shall not exceed the amount that would otherwise be utilizable under Section 382 of the Code (or any successor provision or similar
provision under state law)), (5) any non-amortizable assets are deemed to be disposed of on the Early Termination Date, (6) if,
on the Early Termination Date, any TRA Holder has Holdco Units that have not been Exchanged, then such Holdco Units shall be deemed
to be Exchanged for the Market Value of the Shares that would be received by such TRA Holder if such Holdco Units had been Exchanged
on the Early Termination Date, and such TRA Holder shall be deemed to receive the amount of cash such TRA Holder would have been
entitled to pursuant to Section 4.03(a) had such Holdco Units actually been Exchanged on the Early Termination Date, and
(7) any payment obligations pursuant to this Agreement will be satisfied on the date that any Tax Return to which such payment
obligation relates is required to be filed (with any applicable automatic extensions).

 

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“Voting Non-Economic Preferred Stock”
is defined in the Recitals.

 

SECTION 1.02 Interpretation. Unless a
clear contrary intention appears: (i) the defined terms herein shall apply equally to both the singular and plural forms of such
terms; (ii) reference to any Person includes such Person’s successors and assigns but, if applicable, only if such successors
and assigns are not prohibited by this Agreement, and reference to a Person in a particular capacity excludes such Person in any
other capacity or individually; (iii) any pronoun shall include the corresponding masculine, feminine and neuter forms; (iv) reference
to any agreement, document or instrument means such agreement, document or instrument as amended or modified and in effect from
time to time in accordance with the terms thereof; (v) reference to any law, rule or regulation means such law, rule or regulation
as amended, modified, codified, replaced or reenacted, in whole or in part, and in effect from time to time, including rules and
regulations promulgated thereunder, and reference to any section or other provision of any law, rule or regulation means that provision
of such law, rule or regulation from time to time in effect and constituting the substantive amendment, modification, codification,
replacement or reenactment of such section or other provision; (vi) “hereunder,” “hereof,” “hereto”
and words of similar import shall be deemed references to this Agreement as a whole and not to any particular article, section
or other provision hereof; (vii) numbered or lettered articles, sections and subsections herein contained refer to articles, sections
and subsections of this Agreement; (viii) “including” (and with correlative meaning “include”) means including
without limiting the generality of any description preceding such term; (ix) “or” is used in the inclusive sense of
“and/or”; (x) references to documents, instruments or agreements shall be deemed to refer as well to all addenda, exhibits,
schedules or amendments thereto; and (xi) reference to dollars or $ shall be deemed to refer to U.S. dollars.

 

ARTICLE II

DETERMINATION OF REALIZED TAX BENEFIT

 

SECTION 2.01 Basis Adjustment. The Corporation
and the TRA Holders acknowledge that, as a result of an Exchange, the Corporation’s tax basis in the applicable Reference
Assets shall be increased or decreased, if at all, as provided in the definition of Basis Adjustment. The parties agree that (i)
all Tax Benefit Payments attributable to the Basis Adjustments (other than amounts treated as interest under the Code) will have
the effect of creating additional Basis Adjustments to the Reference Assets for the Corporation in the year such Tax Benefit Payments
are made, and (ii) as a result, such additional Basis Adjustments will be included in computing the current year’s Tax Benefit
Payment calculation and included in computing future years’ Tax Benefit Payment calculations, as appropriate. For the avoidance
of doubt, payments made under this Agreement shall not be treated as resulting in a Basis Adjustment to the extent such payments
are treated as Imputed Interest.

 

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SECTION 2.02 Exchange Basis Schedule.
Within ninety (90) calendar days after the filing of the U.S. federal income Tax Return of the Corporation for each Taxable Year
in which any Exchange has been effected, the Corporation shall deliver to the applicable TRA Holder a schedule (the “Exchange
Basis Schedule”) showing, in reasonable detail, (i) the actual unadjusted tax basis of the Reference Assets as of each
applicable Exchange Date, (ii) the Basis Adjustment with respect to the Reference Assets as a result of the Exchanges effected
in such Taxable Year, calculated in the aggregate, and separately stated for each applicable TRA Holder, (iii) the period or periods,
if any, over which the Reference Assets are amortizable or depreciable and (iv) the period or periods, if any, over which each
Basis Adjustment is amortizable or depreciable.

 

SECTION 2.03 Tax Benefit Schedule. Within
ninety (90) calendar days after the filing of the U.S. federal income Tax Return of the Corporation for any Taxable Year in which
there is a Realized Tax Benefit or Realized Tax Detriment, the Corporation shall provide to the applicable TRA Holder a schedule
showing, in reasonable detail, the calculation of the Realized Tax Benefit or Realized Tax Detriment for such Taxable Year setting
forth the Realized Tax Benefit or Realized Tax Detriment for each TRA Holder (a “Tax Benefit Schedule”). The
Schedule will become final as provided in Section 2.04(a) and may be amended as provided in Section 2.04(b) (subject
to the procedures set forth in Section 2.04(b)).

 

SECTION 2.04 Procedures, Amendments

 

(a)              
Procedure. Every time the Corporation delivers to a TRA Holder a Schedule under this Agreement, the Corporation shall
also (x) make available to the such TRA Holder, upon request, schedules and work papers providing reasonable detail regarding the
preparation of the Schedule and an Advisory Firm Letter supporting such Schedule and (y) allow such TRA Holder reasonable access
to the appropriate representatives at the Corporation (at no cost) and the Advisory Firm (at such TRA Holder’s sole cost
and expense) in connection with a review of such Schedule. A Schedule shall become final and binding on all parties unless the
applicable TRA Holder, within thirty (30) calendar days after receiving an Exchange Basis Schedule or amendment thereto or ten
(10) calendar days after receiving a Tax Benefit Schedule or amendment thereto, as the case may be, provides the Corporation with
written notice of a material objection to such Schedule made in good faith. If the parties, negotiating in good faith, are unable
to successfully resolve the issues raised in such notice within sixty (60) calendar days, if with respect to an Exchange Basis
Schedule, or thirty (30) calendar days, if with respect to a Tax Benefit Schedule, after such Schedule was delivered to the applicable
TRA Holder, the Corporation and the applicable TRA Holder shall employ the Reconciliation Procedures as described in Section
6.12.

 

(b)              
Amended Schedule. Any Schedule for any Taxable Year shall be amended from time to time by the Corporation in good
faith (i) in connection with a Determination affecting such Schedule, (ii) to correct inaccuracies in the Schedule identified as
a result of the receipt of additional factual information relating to a Taxable Year after the date the Schedule was provided to
the applicable TRA Holder, (iii) to comply with the Expert’s determination under the Reconciliation Procedures, (iv) to reflect
a material change in the Realized Tax Benefit or Realized Tax Detriment for such Taxable Year attributable to a carryback or carryforward
of a loss or other tax item to such Taxable Year, (v) to reflect a change in the Realized Tax Benefit or Realized Tax Detriment
for such Taxable Year attributable to an amended Tax Return filed for such Taxable Year, or (vi) to adjust the Exchange Basis Schedule
to take into account payments made pursuant to this Agreement; provided, however, that such a change under clause
(i) attributable to an audit of a Tax Return by an applicable Taxing Authority shall not be taken into account on an amended Schedule
unless and until there has been a Determination with respect to such change.

 

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ARTICLE III

TAX BENEFIT PAYMENTS

 

SECTION 3.01 Payments

 

(a)              
Payments. Within five (5) Business Days after a Tax Benefit Schedule (or any amendment thereto) becoming final in
accordance with Section 2.04(a), the Corporation shall pay to the applicable TRA Holder for such Taxable Year the Tax Benefit
Payment determined pursuant to Section 3.01(b). Each such Tax Benefit Payment shall be made by wire transfer of immediately
available funds to a bank account previously designated by such TRA Holder. For the avoidance of doubt, no Tax Benefit Payment
shall be made in respect of estimated Tax payments, including without limitation U.S. federal or state estimated income Tax payments.
Notwithstanding anything herein to the contrary, in no event shall payments to an applicable TRA Holder under this Agreement exceed
an amount to be determined on the Exchange Date as agreed to by the Corporation and the applicable TRA Holder.

 

(b)              
A “Tax Benefit Payment” means an amount, not less than zero, equal to 40% of the Corporation’s
Realized Tax Benefit, if any, for a Taxable Year, plus, (1) interest calculated at the 10% from the due date (with any applicable
automatic extensions) for filing the Corporation Return with respect to Taxes for such Taxable Year until the Payment Date (the
“Interest Amount”) and (2) the amount of the excess Realized Tax Benefit reflected on an amended Tax Benefit
Schedule for a previous Taxable Year over the Realized Tax Benefit (or Realized Tax Detriment (expressed as a negative number))
reflected on the unamended Tax Benefit Schedule for such previous Taxable Year, and minus, (3) an amount equal to the Corporation’s
Realized Tax Detriment (expressed as a negative number) (if any) for any previous Taxable Year, and (4) the amount of the excess
Realized Tax Benefit reflected on a Tax Benefit Schedule for a previous Taxable Year over the Realized Tax Benefit (or Realized
Tax Detriment (expressed as a negative number)) reflected on the amended Tax Benefit Schedule for such previous Taxable Year;
provided, that (x) the amounts described in (b)(2), (3) and (4) shall not be taken into account in determining a Tax Benefit
Payment attributable to any Taxable Year to the extent such amounts were taken into account in determining any Tax Benefit Payment
in a preceding Taxable Year and (y) no TRA Holder shall be required to return any portion of any previously made Tax Benefit Payment
(other than by reducing the amount of any future Tax Benefit Payment by an amount equal to an overpayment of any previously made
Tax Benefit Payment).

 

(c)              
The Corporation and the TRA Holders hereby acknowledge and agree that, as of the date of this Agreement and as of the date
of any Exchange, the aggregate value of the Tax Benefit Payments cannot be reasonably ascertained for U.S. federal income or other
applicable tax purposes. 

 

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SECTION 3.02 No Duplicative Payments.
It is intended that the above provisions will not result in duplicative payment of any amount (including interest) required under
this Agreement. It is also intended that the provisions of this Agreement provide that 40% of the Corporation’s Realized
Tax Benefit and Interest Amount is paid to the TRA Holders pursuant to this Agreement. The provisions of this Agreement shall be
construed in the appropriate manner so that such intentions are realized.

 

SECTION 3.03 Pro Rata Payments. For the
avoidance of doubt, to the extent the Corporation’s utilization of Tax benefits with respect to the Basis Adjustments and
Imputed Interest is limited in a particular Taxable Year, or the Corporation lacks sufficient funds to satisfy its obligations
to make all Tax Benefit Payments due in a particular Taxable Year, the limitation on such Tax benefit shall be taken into account,
or the Tax Benefit Payments shall be made, as the case may be, to each applicable TRA Holder on a pro rata basis which reflects
the proportion of the total amount of Tax benefits attributable to such TRA Holder relative to the aggregate Tax benefits for all
of the applicable TRA Holders (as determined by the Corporation in good faith and exercising reasonable discretion).

 

ARTICLE IV

TERMINATION

 

SECTION 4.01 Early Termination of Agreement;
Breach of Agreement.

 

(a)              
Corporation’s Early Termination Right. The Corporation may terminate this Agreement with respect to all of
the Holdco Units held (or previously held and exchanged) by the TRA Holders at any time by paying the TRA Holders the Early Termination
Payment; provided that this Agreement shall only terminate upon the receipt of the Early Termination Payments by all
TRA Holders that are entitled to the Early Termination Payment. Upon payment of the Early Termination Payment by the Corporation
to the TRA Holders, neither the TRA Holders nor the Corporation shall have any further obligations under this Agreement, other
than for any (i) Tax Benefit Payment agreed to by the Corporation and the TRA Holders as due and payable but unpaid as of the Early
Termination Notice and (ii) Tax Benefit Payments due for any Taxable Year ending prior to, with or including the date of the Early
Termination Notice (except to the extent that any amounts described in clause (ii) are included in the Early Termination Payment).
Upon payment of all amounts described in this Section 4.01(a), this Agreement shall terminate.

 

(b)              
Acceleration Upon Change of Control. In the event of a Change of Control, all obligations hereunder shall be accelerated
and such obligations shall be equal to the amount specifically allocated to the payment under this Section 4.01(b) in the definitive
agreements pursuant to which such Change of Control is being implemented. For the avoidance of doubt, if there is no such specific
allocation in connection with the Change of Control, there will not be a Tax Benefit Payment payable in connection with the Change
of Control. Upon a Change of Control and the payment (if any) of all amounts described in this Section 4.01(b), this Agreement
shall terminate.

 

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(c)              
Acceleration Upon Breach of Agreement. In the event that the Corporation materially breaches any of its obligations
under this Agreement, whether as a result of failure to make any payment when due, failure to honor any other material obligation
required hereunder (provided that the TRA Holder has provided written notice of such breach to the Corporation and the Corporation
has not cured said breach within thirty (30) days (or such longer period of performance or cure contemplated herein), or by operation
of law as a result of the rejection of this Agreement in a claim, litigation, action or other proceeding commenced under the Bankruptcy
Code or otherwise, then all obligations hereunder shall be accelerated and become immediately due and payable upon notice of acceleration
from any TRA Holder (provided, that in the case of any proceeding under the Bankruptcy Code or other insolvency statute,
such acceleration shall be automatic without any such notice), and such obligations shall be calculated as if an Early Termination
Notice had been delivered on the date of such notice of acceleration (or, in the case of any proceeding under the Bankruptcy Code
or other insolvency statute, on the date of such breach) and shall include, but not be limited to, (i) the Early Termination Payment
calculated as if an Early Termination Notice had been delivered on the date of such acceleration; (ii) any prior Tax Benefit Payments
that are due and payable under this Agreement but that still remain unpaid as of the date of such acceleration; and (iii) any Tax
Benefit Payments due for any Taxable Year ending prior to, with or including the date of such acceleration (except to the extent
that any amounts described in clause (iii) are included in the Early Termination Payment). Notwithstanding the foregoing, in the
event that the Corporation breaches this Agreement and such breach is not a material breach of its obligations under this Agreement,
a TRA Holder shall still be entitled to enforce all of its rights otherwise available under this Agreement (including through specific
performance of such obligations of the Corporation under this Agreement). For purposes of this Section 4.01(c), and subject
to the following sentence, the parties agree that the failure to make any payment due pursuant to this Agreement within three (3)
months after the date such payment is due shall be deemed to be a material breach by the Corporation of an obligation of the Corporation
under this Agreement for all purposes of this Agreement, and that it will not be considered to be a material breach by the Corporation
of an obligation of the Corporation under this Agreement to make a payment due pursuant to this Agreement within three (3) months
of the date such payment is due. Notwithstanding anything in this Agreement to the contrary, it shall not be a material breach
by the Corporation of an obligation of the Corporation under this Agreement if the Corporation fails to make any Tax Benefit Payment
within three (3) months of the date such payment is due to the extent that the Corporation has insufficient funds or cannot take
commercially reasonable actions to obtain sufficient funds, to make such payment; provided that the interest provisions
of Section 5.02 shall apply to such late payment.

 

SECTION 4.02 Early Termination Notice.
If the Corporation chooses to exercise its right of early termination under Section 4.01(a), the Corporation shall deliver
to the TRA Holders notice of such intention to exercise such right (“Early Termination Notice”) and a schedule
(the “Early Termination Schedule”) specifying the Corporation’s intention to exercise such right and showing
in reasonable detail the calculation of the Early Termination Payment. The applicable Early Termination Schedule shall become final
and binding on all parties unless the applicable TRA Holder, within ten (10) calendar days after receiving the Early Termination
Schedule thereto, provides the Corporation with written notice of a material objection to such Schedule made in good faith. If
the parties, negotiating in good faith, are unable to successfully resolve the issues raised in such notice within thirty (30)
calendar days after such Schedule was delivered to the applicable TRA Holder, the Corporation and the applicable TRA Holder shall
employ the Reconciliation Procedures as described in Section 6.12.

 

    11

     

    

 

SECTION 4.03 Payment upon Early Termination.

 

(a)              
Within five (5) Business Days after agreement between the TRA Holders and the Corporation of the Early Termination Schedule
pursuant to Section 4.02, the Corporation shall pay to the TRA Holders an amount equal to the Early Termination Payment.
Such payment shall be made by wire transfer of immediately available funds to a bank account designated by each TRA Holder.

 

(b)              
The “Early Termination Payment” as of the date of an Early Termination Schedule shall equal the present
value, discounted at the Early Termination Rate as of such date, of all Tax Benefit Payments that would be required to be paid
by the Corporation to the TRA Holders beginning from the Early Termination Date assuming the Valuation Assumptions are applied.

 

ARTICLE V

LATE PAYMENTS; NO DISPUTES; CONSISTENCY; COOPERATION

 

SECTION 5.01 Late Payments by the Corporation.
The amount of all or any portion of any Tax Benefit Payment or Early Termination Payment not made to the applicable TRA Holder
when due under the terms of this Agreement shall be payable together with any interest thereon computed at 10% and commencing from
the date on which such payment was due and payable.

 

SECTION 5.02 TRA Holder Participation in
the Corporation’s Tax Matters. Except as otherwise provided herein, the Corporation shall have full responsibility for,
and sole discretion over, all Tax matters concerning the Corporation, including without limitation the preparation, filing or amending
of any Corporation Return and defending, contesting or settling any issue pertaining to Taxes. Notwithstanding the foregoing, the
Corporation shall notify the applicable TRA Holder of, and keep the applicable TRA Holder reasonably informed with respect to the
portion of, any audit of the Corporation or of Holdco by a Taxing Authority the outcome of which is reasonably expected to materially
and adversely affect the applicable TRA Holder’s rights and obligations under this Agreement, and shall provide to the applicable
TRA Holder reasonable opportunity to provide information and other input to the Corporation, Holdco and their respective advisors
concerning the conduct of any such portion of such audit; provided, however, that the Corporation shall not
be required to take any action that is inconsistent with any provision of the Holdco Agreement or applicable law.

 

SECTION 5.03 Consistency. Unless there
is a Determination or written advice of an Advisory Firm to the contrary, the Corporation and the applicable TRA Holder agree to
report and cause to be reported for all purposes, including U.S. federal, state and local Tax purposes and financial reporting
purposes, all Tax-related items (including without limitation the Basis Adjustment and each Tax Benefit Payment) in a manner consistent
with that specified by the Corporation in any Schedule required to be provided by or on behalf of the Corporation under this Agreement.

 

SECTION 5.04 Cooperation. The applicable
TRA Holder shall (a) furnish to the Corporation in a timely manner such information, documents and other materials as the Corporation
may reasonably request for purposes of making any determination or computation necessary or appropriate under this Agreement, preparing
any Tax Return or contesting or defending any audit, examination or controversy with any Taxing Authority, (b) make itself available
to the Corporation and its representatives to provide explanations of documents and materials and such other information as the
Corporation or its representatives may reasonably request in connection with any of the matters described in clause (a) above,
and (c) reasonably cooperate in connection with any such matter, and the Corporation shall reimburse the TRA Holder for any documented
reasonable third-party costs and expenses incurred at the Corporation’s request pursuant to this Section 5.04.

 

    12

     

    

 

ARTICLE VI

miscellaneous

 

SECTION 6.01 Notices. Except for notices
that are specifically required by the terms of this Agreement to be delivered orally, all notices, requests, claims, demands and
other communications hereunder shall be in writing and shall be deemed given, delivered and/or provided (a) when delivered personally
or when sent by email of a .pdf attachment (provided, that no notice of non-delivery is generated), or (b) on the next Business
Day when dispatched for overnight delivery by Federal Express or a similar courier, in either case, to the parties at the following
addresses (or at such other address for a party as shall be specified by like notice):

 

if to the Corporation, to:

 

Liberty Tax, Inc.

1716 Corporate Landing Parkway

Virginia Beach, VA 23454

Email: tiffany.mcwaters@libtax.com

Attention: Tiffany McMillan McWaters

 

with copies to:

 

Hunton Andrews Kurth LLP

951 E. Byrd Street

Richmond, VA 23219

Email: shaas@hunton.com

Attention: Steven M. Haas

 

Troutman Sanders LLP

600 Peachtree Street NE

Suite 3000

Atlanta, GA 30308

Email: David.Ghegan@troutman.com

Attention: David W. Ghegan

 

if to the applicable TRA Holder, as set forth on Exhibit B or a Joinder
Agreement hereto, and with copies to:

 

Vintage RTO, L.P.

c/o Vintage Capital Management

4705 S. Apopka Vineland Road

Suite 210

Orlando, FL 32819

Email: bkahn@vintcap.com

Attention: Brian R. Kahn

 

Willkie Farr & Gallagher LLP

787 Seventh Avenue

New York, NY 100019

Email: rleaf@willkie.com

Attention: Russell L. Leaf

 

    13

     

    

 

SECTION 6.02 Binding Effect; Intended Beneficiaries.
This Agreement shall be binding upon and inure to the benefit of the parties hereto and, to the extent permitted by this Agreement,
their heirs, executors, administrators, successors, legal representatives and permitted assigns.

 

SECTION 6.03 Counterparts. This Agreement
may be executed in separate counterparts, each of which will be an original and all of which together shall constitute one and
the same agreement binding on all the parties hereto.

 

SECTION 6.04 Applicable Law. This Agreement
shall be governed by, and construed in accordance with, the laws of the State of Delaware, without giving effect to any choice
of law or conflict of law rules or provisions (whether of the State of Delaware or any other jurisdiction) that would cause the
application of the laws of any jurisdiction other than the State of Delaware.

 

SECTION 6.05 Entire Agreement. This Agreement
and those documents expressly referred to herein (including the Holdco Agreement and the Certificate of Designation) embody the
entire agreement and understanding among the parties and supersede and preempt any prior understandings, agreements or representations
by or among the parties, written or oral, which may have related to the subject matter hereof in any way.

 

SECTION 6.06 Severability. Whenever possible,
each provision of this Agreement will be interpreted in such manner as to be effective and valid under applicable law, but if any
provision of this Agreement is held to be invalid, illegal or unenforceable in any respect under any applicable law or rule in
any jurisdiction, such invalidity, illegality or unenforceability will not affect any other provision or the effectiveness or validity
of any provision in any other jurisdiction, and this Agreement will be reformed, construed and enforced in such jurisdiction as
if such invalid, illegal or unenforceable provision had never been contained herein.

 

SECTION 6.07 Further Action. The parties
shall execute and deliver all documents, provide all information and take or refrain from taking such actions as may be reasonably
necessary or appropriate to achieve the purposes of this Agreement.

 

SECTION 6.08 Delivery by Electronic Transmission.
This Agreement and any signed agreement or instrument entered into in connection with this Agreement or contemplated hereby, and
any amendments hereto or thereto, to the extent signed and delivered by means of an electronic transmission, including by a facsimile
machine, .PDF or via email, shall be treated in all manner and respects as an original agreement or instrument and shall be considered
to have the same binding legal effect as if it were the original signed version thereof delivered in person. At the request of
any party hereto or to any such agreement or instrument, each other party hereto or thereto shall re-execute original forms thereof
and deliver them to all other parties. No party hereto or to any such agreement or instrument shall raise the use of electronic
transmission by a facsimile machine or via email to deliver a signature or the fact that any signature or agreement or instrument
was transmitted or communicated through such electronic transmission as a defense to the formation of a contract and each such
party forever waives any such defense.

 

    14

     

    

 

SECTION 6.09 Successors; Assignment;
Amendments. No TRA Holder may assign this Agreement to any Person without the prior written consent of the Corporation, which
consent shall not be unreasonably withheld, conditioned or delayed; provided, however, that, to the extent Holdco
Units and Voting Non-Economic Preferred Stock are transferred in accordance with the terms of the Holdco Agreement and the Certificate
of Designation, the Proportionate Share of the transferring TRA Holder’s Receivable shall automatically be assigned to the
transferee of such Holdco Units and Voting Non-Economic Preferred Stock, and the transferee shall automatically become bound hereby,
and such transferee shall execute this Agreement.

 

No amendment to this Agreement shall be effective
unless it shall be in writing and signed by the Corporation and the TRA Holders.

 

Except as set forth in this Agreement, the Corporation
shall require and cause any direct or indirect successor (whether by purchase, merger, consolidation or otherwise) to all or substantially
all of the business or assets of the Corporation, by written agreement, expressly to assume and agree to perform this Agreement
in the same manner and to the same extent that the Corporation would be required to perform if no such succession had taken place.

 

SECTION 6.10 Titles and Subtitles. The
titles of the sections and subsections of this Agreement are for convenience of reference only and are not to be considered in
construing this Agreement.

 

SECTION 6.11 Resolution of Disputes.

 

(a)             
Any and all disputes which are not governed by Section 6.12, including any ancillary claims of any party, arising out of,
relating to or in connection with the validity, negotiation, execution, interpretation, performance or non-performance of this
Agreement (including the validity, scope and enforceability of this Section 6.11 and Section 6.12) (each a “Dispute”)
shall be governed by this Section 6.11. The parties hereto shall attempt in good faith to resolve all Disputes by negotiation.
If a Dispute between the parties hereto cannot be resolved in such manner, such Dispute shall be finally settled by arbitration
conducted by a single arbitrator in accordance with the then-existing rules of arbitration of the American Arbitration Association.
If the parties to the Dispute fail to agree on the selection of an arbitrator within ten (10) calendar days of the receipt of the
request for arbitration, the American Arbitration Association shall make the appointment. The arbitrator shall be a lawyer admitted
to the practice of law in a U.S. state, or a nationally recognized expert in the relevant subject matter, and shall conduct the
proceedings in the English language. Performance under this Agreement shall continue if reasonably possible during any arbitration
proceedings. In addition to monetary damages, the arbitrator shall be empowered to award equitable relief, including an injunction
and specific performance of any obligation under this Agreement. The arbitrator is not empowered to award damages in excess of
compensatory damages, and each party hereby irrevocably waives any right to recover punitive, exemplary or similar damages with
respect to any Dispute. The award shall be the sole and exclusive remedy between the parties regarding any claims, counterclaims,
issues, or accounting presented to the arbitral tribunal. Judgment upon any award may be entered and enforced in any court having
jurisdiction over a party or any of its assets.

 

    15

     

    

 

(b)             
Notwithstanding the provisions of Section 6.11(a), the Corporation may bring an action or special proceeding in any court
of competent jurisdiction for the purpose of compelling a party to arbitrate, seeking temporary or preliminary relief in aid of
an arbitration hereunder, and/or enforcing an arbitration award and, for the purposes of this Section 6.11(b), each TRA
Holder (i) expressly consents to the application of Section 6.11(c) to any such action or proceeding, (ii) agrees
that proof shall not be required that monetary damages for breach of the provisions of this Agreement would be difficult to calculate
and that remedies at law would be inadequate, and (iii) irrevocably appoints the Corporation as agent of such party for service
of process in connection with any such action or proceeding and agrees that service of process upon such agent, who shall promptly
advise such party in writing of any such service of process, shall be deemed in every respect effective service of process upon
such party in any such action or proceeding.

 

(c)             
EACH PARTY HEREBY IRREVOCABLY SUBMITS TO THE JURISDICTION OF COURTS LOCATED IN Delaware
FOR THE PURPOSE OF ANY JUDICIAL PROCEEDING BROUGHT IN ACCORDANCE WITH THE PROVISIONS OF PARAGRAPH (B) OF THIS SECTION 6.11
OR ANY JUDICIAL PROCEEDING ANCILLARY TO AN ARBITRATION OR CONTEMPLATED ARBITRATION ARISING OUT OF OR RELATING TO OR CONCERNING
THIS AGREEMENT. Such ancillary judicial proceedings include any suit, action or proceeding to compel arbitration, to obtain temporary
or preliminary judicial relief in aid of arbitration, or to confirm an arbitration award. The parties acknowledge that the fora
designated by this Section 6.11(c) have a reasonable relation to this Agreement, and to the parties’ relationship
with one another.

 

(d)             
The parties hereby waive, to the fullest extent permitted by applicable law, any objection which they now or hereafter may have
to personal jurisdiction or to the laying of venue of any such ancillary suit, action or proceeding brought in any court referred
to in Section 6.11(c) and such parties agree not to plead or claim the same.

 

SECTION 6.12 Reconciliation. In the event
that the Corporation and any TRA Holder are unable to resolve a disagreement within the relevant period designated in Section
2.04(a) or Section 4.02, the matter shall be submitted for determination to a nationally recognized expert (the “Expert”)
in the particular area of disagreement mutually acceptable to both parties. The Expert shall be employed by a nationally recognized
accounting firm or a law firm (other than the Advisory Firm), and the Expert shall not, and the firm that employs the Expert shall
not, have any material relationship with either the Corporation or the applicable TRA Holder or other actual or potential conflict
of interest. The Expert shall use its reasonable best efforts to resolve any matter relating to the Exchange Basis Schedule or
an amendment thereto within thirty (30) calendar days and to resolve any matter relating to a Tax Benefit Schedule or an amendment
thereto within fifteen (15) calendar days, in each case after the matter has been submitted to the Expert for resolution. Notwithstanding
the preceding sentence, if the matter is not resolved before any payment that is the subject of a disagreement is due or any Tax
Return reflecting the subject of a disagreement is due, such payment shall be made on the date prescribed by this Agreement and
such Tax Return may be filed as prepared by the Corporation, subject to adjustment or amendment upon resolution. The costs and
expenses relating to the engagement of such Expert or amending any Tax Return shall be borne equally by the applicable TRA Holder
and the Corporation, provided, that if the applicable TRA Holder has a prevailing position that is more than 10% of the
payment at issue, the Corporation shall reimburse such TRA Holder for any reasonable and documented out-of-pocket costs and expenses
incurred in connection with such proceeding. The Expert shall determine which party prevails. The determinations of the Expert
pursuant to this Section 6.12 shall be binding on the Corporation and the applicable TRA Holder absent fraud or manifest
error.

 

    16

     

    

 

SECTION 6.13 Withholding. The Corporation
shall be entitled to deduct and withhold from any payment payable pursuant to this Agreement such amounts as the Corporation is
required to deduct and withhold with respect to the making of such payment under the Code, or any provision of state, local or
foreign tax law. If the Corporation determines that an amount is required to be deducted and withheld, the Corporation shall give
the TRA Holder at least three (3) days’ prior written notification of its intention to make any such deduction or withholding
and shall reasonably cooperate with the TRA Holder to mitigate, reduce or eliminate any such deduction or withholding. To the extent
that amounts are so withheld and paid over to the appropriate Taxing Authority by the Corporation, such withheld amounts shall
be treated for all purposes of this Agreement as having been paid to the applicable TRA Holder.

 

 

[Signature Pages Follow.]

 

 

 

 

 

 

 

 

 

 

 

 

 

    17

     

    

 

IN WITNESS WHEREOF, the Corporation and each
TRA Holder have duly executed this Agreement as of the date first written above.

 

LIBERTY TAX, INC.

 

By/s/ Michael S. Piper

Name: Michael S. Piper

Title: Chief Financial Officer

 

 

VINTAGE RTO, L.P.

 

By: Vintage RTO GP LLC, its General Partner

 

By/s/ Brian Kahn

Name: Brian Kahn

Title: Manager

 

 

SAMJOR FAMILY LP

 

By: SAMJOR INC., its general partner

 

By/s/ Brian Kahn

Name: Brian Kahn

Title: President

 

 

BRIAN DEGUSTINO REVOCABLE TRUST

By/s/ Brian DeGustino

Name: Brian DeGustino

Title: Trustee

 

 

 

    
(Signature Page to Income Tax Receivable Agreement)

     

    

 

AMY DEGUSTINO IRREVOCABLE TRUST

 

By/s/ Brian DeGustino

Name: Brian DeGustino

Title: Trustee

 

 

MARTIN MEYER

 

/s/ Martin Meyer

 

 

FENGFENG REN

 

/s/ Fengfeng Ren

 

 

DAVID O’NEIL

 

/s/ David O’Neil

 

 

JEFFREY D. MILLER

 

/s/ Jeffrey D. Miller

 

 

 

    
(Signature Page to Income Tax Receivable Agreement)

     

    

 

Exhibit A

 

FORM OF

 

JOINDER AGREEMENT

 

This Joinder Agreement (“Joinder Agreement”)
is a joinder letter to the Income Tax Receivable Agreement, dated as of July 10, 2019 (the “Agreement”), among
Liberty Tax, Inc., a Delaware corporation (the “Corporation”), and each of the TRA Holders from time to time
party thereto. Capitalized terms used but not defined in this Joinder Agreement shall have their respective meanings as defined
in the Agreement. This Joinder Agreement shall be governed by, and construed in accordance with, the laws of the State of Delaware.
In the event of any conflict between this Joinder Agreement or the Agreement, the terms of this Joinder Agreement shall control.

 

The undersigned hereby agrees that the undersigned
hereby joins and enters into the Agreement having acquired Holdco Units in Holdco. By signing and returning this Joinder Agreement
to the Corporation at [address], Attention: [●], the undersigned accepts and agrees to be bound by and subject to
all of the terms and conditions of and agreements of a TRA Holder contained in the Agreement, with all attendant rights, duties
and obligations of a TRA Holder thereunder. The parties to the Agreement shall treat the execution and delivery hereof by the undersigned
as the execution and delivery of the Agreement by the undersigned and, upon receipt of this Joinder Agreement by the Corporation,
the signature of the undersigned set forth below shall constitute a counterpart signature to the signature page of the Agreement.

 

Name:

 

	
        Address for Notices:

        
	 	
        With copies to:

        

        

        
	 
	 	 	 	 
	 	 	 	 
	 	 	 	 
	 	 	 	 

 

 

 

     

     

    

 

IN WITNESS WHEREOF, the undersigned has executed this Joinder Agreement
as of the date set forth below.

 

	 	By:	 
	 	Name:	 
	 	Title:	 
	 	Date:	 
	 	 	 

 

 

Accepted:

 

LIBERTY TAX, INC.

 

	By:	 	 
	Name:	 	 
	Title:	 	 
	Date:	 	 
	 	 	 

 

 

 

 

 

    
(Signature Page to Joinder Agreement to Income Tax Receivable Agreement)

     

    

 

Exhibit B

 

NOTICE INFORMATION

 

	TRA Holder	Notice Information
	Brian Degustino Revocable Trust	c/o Brian DeGustino

32 Wedgewood Drive

Hawthorn Woods, IL 60047

Email:  degustinob@gmail.com
	Amy Degustino Irrevocable Trust	c/o Brian DeGustino

32 Wedgewood Drive

Hawthorn Woods, IL 60047

Email:  degustinob@gmail.com
	Martin Meyer	1801 N. Mohawk St. #B

Chicago, IL 60614

Email:  martinmey@yahoo.com
	Fengfeng Ren	1801 N. Mohawk St. #B

Chicago, IL 60614

Email:  fengfengrn@gmail.com
	David O’Neil	350 N. Orleans St., Suite 2N

Chicago, IL 60654-1600
	Jeffrey D. Miller	240 Maplewood Rd.

Riverside, IL 60546

Email:  jdmiller10@protonmail.com
	Vintage RTO, L.P.	c/o Vintage Capital Management, LLC

4705 S. Apopka Vineland Road

Suite 206

Orlando, FL 32819

Attention:  Brian R. Kahn

Email:  bkahn@vintcap.com
	Samjor Family LP	c/o Brian R. Kahn

9935 Lake Louise Drive

Windermere, FL 34786

Email:  bkahn@vintcap.comExhibit 10.7

 

SECOND AMENDMENT
TO CREDIT AGREEMENT

AND ASSUMPTION
AGREEMENT

 

This SECOND AMENDMENT
TO CREDIT AGREEMENT AND ASSUMPTION AGREEMENT (this “Agreement”), is entered into as of July 10, 2019, by and
among LIBERTY TAX, INC., a Delaware corporation (“Liberty TopCo”), FRANCHISE GROUP INTERMEDIATE L 2, LLC, a
Delaware limited liability company (“New Liberty Tax”), FRANCHISE GROUP
INTERMEDIATE L 1, LLC, a Delaware limited liability company (“Holdings”), the other Loan Parties party
hereto, the Lenders party hereto, and CITIZENS BANK, N.A., as Administrative Agent (in such capacity, the “Administrative
Agent”).

 

RECITALS:

 

WHEREAS, Liberty TopCo,
the Lenders and the Administrative Agent are parties to that certain Credit Agreement, dated as of May 16, 2019 (as the same may
be further amended, supplemented or otherwise modified from time to time, the “Credit Agreement”; capitalized
terms used but not defined herein shall have the meanings given to them in the Credit Agreement, as amended hereby);

 

WHEREAS, Liberty TopCo
and the Parent are parties to the Agreement of Merger and Business Combination Agreement, dated as of the date hereof, with the
other parties thereto (the “Business Combination Agreement”), and desire to effect the transactions described
therein and the other 2019 Reorganization Transactions (as defined below); and

 

WHEREAS, upon the consummation
of the 2019 Restructuring Transactions (as defined below), Liberty TopCo will own a majority of the outstanding Equity Interests
of the Parent and will control the Parent; the Parent will be the direct owner, legally and beneficially, of all of the issued
and outstanding Equity Interests of Holdings, and Holdings will be the direct owner, legally and beneficially, of all of the issued
and outstanding Equity Interests in New Liberty Tax; and

 

WHEREAS, in connection
with the 2019 Restructuring Transactions, Liberty TopCo will contribute all of its assets (the “Contributed Assets”)
to the Parent, the Parent will contribute the Contributed Assets to Holdings, and Holdings will contribute the Contributed Assets
to New Liberty Tax, which Contributed Assets will remain subject to the Liens of the Collateral Documents (collectively, the “Asset
Contribution”); and

 

WHEREAS, in connection
with the 2019 Reorganization Transactions, Liberty TopCo will be released as the Borrower under the Credit Agreement and replaced
in that capacity by New Liberty Tax, with New Liberty Tax assuming all obligations of Liberty TopCo under and in respect of the
Secured Obligations, and Holdings will become a Guarantor of the Secured Obligations pursuant to the Holdings Guarantee (collectively,
together with the Asset Contribution, the “2019 Contribution”); and

 

WHEREAS, the Loan Parties
wish to amend the Credit Agreement on the terms set forth herein, and the consent of all of the Lenders hereunder is required for
such amendment; and

 

WHEREAS, the Administrative
Agent and the Lenders are willing to amend the Credit Agreement as provided for herein;

 

NOW THEREFORE, in consideration
of the premises and the agreements herein and for other good and valuable consideration, the receipt and sufficiency of which is
hereby acknowledged, the parties hereto agree as follows:

 

     

     

    

Section 1.             
Interpretation.

 

1.1          
Interpretation. This Amendment shall be construed and interpreted in accordance with the rules of construction set
forth in Sections 1.3, 1.4, 1.5, 1.6 and 1.7 of the Credit Agreement.

 

Section 2.             
Assumption. As of the Second Amendment Effective Date, Liberty TopCo hereby assigns to
New Liberty Tax all rights of Liberty TopCo, and New Liberty Tax hereby assumes from Liberty TopCo all indebtedness, obligations
and liabilities of Liberty TopCo, in, to and under the Credit Agreement and the other Loan Documents, whether arising before, on
or after the effective date hereof. Liberty TopCo is hereby released from any and all indebtedness, obligations and liabilities
under, and is deemed no longer a party to, the Loan Documents.

 

Section 3.             
Amendment to Credit Agreement. 

 

As of the Second
Amendment Effective Date:

 

(a)           
Section 1.1 of the Credit Agreement is hereby amended by restating each of the following definitions in its entirety
as follows:

 

“Borrower”
means Franchise Group Intermediate L 2, LLC, a Delaware limited liability company.

 

“Change
of Control” means an event or series of events by which (a) any Person or group (within the meaning of Rule 13d-5 of
the Securities Exchange Act of 1934 as in effect on the Agreement Date) other than Permitted Investors shall own directly or indirectly,
beneficially or of record, shares representing more than the lesser of (i) 35% of the aggregate ordinary voting power represented
by the issued and outstanding Equity Interests of Liberty TopCo on a fully diluted basis or (ii) the aggregate ordinary voting
power represented by the Equity Interests of Liberty TopCo held by the Permitted Investors, (b) Liberty TopCo shall fail to own
directly, free and clear of all Liens or other encumbrances, more than 50% of the aggregate ordinary voting power and economic
interests represented by the issued and outstanding Equity Interests of the Parent on a fully diluted basis or shall fail to control
the Parent, (c) the Parent shall fail to own directly, free and clear of all Liens or other encumbrances, 100% of the aggregate
ordinary voting power and economic interests represented by the issued and outstanding Equity Interests of Holdings on a fully
diluted basis, (d) Holdings shall fail to own directly, free and clear of all Liens or other encumbrances (other than Liens created
pursuant to any Loan Document), 100% of the aggregate ordinary voting power and economic interests represented by the issued and
outstanding Equity Interests of the Borrower on a fully diluted basis, (e) the Borrower shall fail to own, directly or indirectly,
free and clear of all Liens or other encumbrances (other than Liens created pursuant to any Loan Document), 100% of the aggregate
ordinary voting power and economic interests represented by the issued and outstanding Equity Interests of each of its Subsidiaries
(or such lesser percentage as may be owned, directly or indirectly, as of the Closing Date or the later acquisition thereof) except
where such failure is as a result of a transaction permitted by the Loan Documents or (f) any change in control (or similar event,
however denominated) with respect to any Loan Party or any of its Subsidiaries shall occur under and as defined in any indenture
or agreement in respect of Indebtedness in an outstanding principal amount in excess of the Threshold Amount to which any Loan
Party or any of its Subsidiaries is a party.

 

     2

     

    

“Disposition”
means, with respect to any Person, the sale, transfer, license, lease or other disposition (including any sale leaseback and any
sale or issuance of Equity Interests including by way of a merger) by such Person to any other Person, with or without recourse,
of (a) any notes or accounts receivable or any rights and claims associated therewith, (b) any Equity Interests of any Subsidiary
(other than directors’ qualifying shares), or (c) any other assets, provided, however, that none of the following
shall constitute a Disposition: (i) any sale, transfer, license, lease or other disposition by (A) a Loan Party (other than Holdings)
to another Loan Party (other than Holdings) or (B) a Non-Loan Party Subsidiary to another Non-Loan Party Subsidiary, in each case,
on terms which are no less favorable than are obtainable from any Person which is not one of its Affiliates, (ii) the collection
of accounts receivable and other obligations in the ordinary course of business, (iii) sales of inventory in the ordinary course
of business, and (iv) dispositions of substantially worn out, damaged, uneconomical, surplus or obsolete equipment, equipment that
is no longer useful in the business of the Borrower or its Subsidiaries. Each of the terms “Dispose” and “Disposed”
when used as a verb shall have an analogous meaning.

 

“Guarantors”
means (a) each Subsidiary Guarantor, (b) Holdings and (c) each other Person that becomes a party to the Guarantee Agreement as
a Guarantor.

 

“Permitted
Investors” means Vintage Capital Management, LLC, together with its Affiliates and controlling persons.

 

(b)           
Section 1.1 the Credit Agreement is hereby further amended by adding the following defined terms in appropriate alphabetical
order:

 

“2019 Contribution” has
the meaning assigned to such term in the Second Amendment.

 

“2019 Contribution Documentation”
means (a) the Contribution Agreement between Liberty TopCo and the Parent, (b) the Contribution Agreement between the Parent and
Holdings, and (c) the Contribution Agreement between Holdings and the Borrower, each dated as of the Second Amendment Effective
Date.

 

“2019 Restructuring
Transaction Documents” means the Business Combination Agreement, the 2019 Contribution Documents, the Voting Agreements,
the Tax Receivable Agreement, and the Subscription Agreements.

 

“2019 Restructuring
Transactions” means the transactions contemplated by the 2019 Restructuring Transaction Documents, including the 2019
Contribution Documentation, the conversion of JTH Tax, Inc., LTS Software Inc. and WeFile Inc. from corporations into limited liability
companies, and the direct or indirect acquisition by the Parent of all of the outstanding equity interests of Buddy’s Newco,
LLC, a Delaware limited liability company.

 

“Business
Combination Agreement” has the meaning assigned to such term in the Second Amendment.

 

“Holding Company”
means each of the Parent and Holdings.

 

“Holdings”
has the meaning assigned to such term in the Second Amendment.

 

“Liberty TopCo” has the meaning
assigned to such term in the Second Amendment.

 

“Parent” means Franchise Group
New Holdco, LLC, a Delaware limited liability company.

 

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“Permitted
Tax Distributions” means, for any taxable period in which each of Holdings and the Borrower is a partnership or an entity
disregarded from a partnership for U.S. federal, state and/or local income tax purposes, distributions by the Borrower to Holdings,
which will in turn be distributed by Holdings, to permit its direct or indirect equity owners to pay the U.S. federal, state and/or
local income taxes attributable to their respective distributable shares of the taxable income of the Borrower (treated as a regarded
entity) and its direct or indirect subsidiaries for such taxable period; provided that, for each such taxable period, the amount
of such distributions made in respect of such taxable period in the aggregate shall not exceed the amount that the Borrower would
have been required to pay in federal, state and/or local income taxes as a stand-alone corporation governed by Subchapter C of
Chapter 1 of Subtitle A of the Code (and similar provisions under state and/or local laws), taking into account prior year losses,
reduced by any such income taxes directly paid by the Borrower and any of its Subsidiaries; provided further that the taxable income
of the Borrower and its direct or indirect subsidiaries for any taxable period shall include any increases thereto as a result
of any tax examination, audit or adjustment, and shall be deemed to include for this purpose, any taxable income of Liberty Topco
with respect to any taxable period (or portion thereof) ending on or prior to the date hereof.  For the avoidance of doubt,
subject to the following sentence, the Borrower shall take into account any step-up in the basis of the property of Holdings and
its Subsidiaries resulting from the 2019 Restructuring Transactions.  Notwithstanding the foregoing, for the purpose of calculating
Permitted Tax Distributions, any step-up in the basis of the property of Parent and its direct or indirect subsidiaries resulting
from any exchange of equity of Parent for equity of Liberty Topco shall not be taken into account.  Permitted Tax Distributions
may be made quarterly based on the Borrower’s good faith estimate of the taxable income of the Borrower (treated as a regarded
entity) and its direct or indirect subsidiaries for the entire taxable period; provided, however, that to the extent estimated
Permitted Tax Distributions made exceed the total Permitted Tax Distributions as finally determined for such taxable period, Permitted
Tax Distributions shall be reduced in the subsequent taxable period.

 

“Second Amendment”
means the second amendment to credit agreement and assumption agreement, dated as of July 10, 2019, relating to this Agreement.

 

“Second Amendment
Effective Date” means the date designated as such pursuant to the Second Amendment.

 

“Subscription
Agreements” means, collectively, those certain Subscription Agreements, dated as of the Second Amendment Effective Date,
by and between Liberty TopCo and Tributum LP, a Delaware limited partnership.

 

“Subsidiary
Guarantors” means each Subsidiary that executes and delivers the Guarantee Agreement and each other Domestic
Subsidiary of the Borrower that becomes party thereto in by the execution and delivery of a Subsidiary Joinder Agreement, and the
permitted successors and assigns of each such Person.

 

“Tax Receivable
Agreement” means the Tax Receivable Agreement, dated as of the Second Amendment Effective Date, among Liberty TopCo and
the other parties thereto.

 

“Voting Agreements”
means each of the voting agreements, dated as of the Second Amendment Effective Date, by and between each of each Buddy’s
Member (as defined in the Closing Date Merger Agreement), Vintage Capital Management, LLC, B. Riley Financial Inc. and certain
of their respective affiliates, on the one hand, and Liberty Tax, Inc., on the other hand.

 

3.2          
The definition of “Consolidated EBITDA” set forth in Section 1.1 of the Credit Agreement is hereby amended (a)
by restating clause (a)(i) thereof as follows:

 

     4

     

    

(i)       federal,
state, local and foreign income or franchise taxes of such Person and its Subsidiaries paid or payable in cash during such period,
and Permitted Tax Distributions paid in cash during such period; plus

 

and (b) by restating
clause (a)(vi) thereof as follows:

 

(vi)       losses,
charges and expenses attributed to the 2019 Restructuring Transactions, to the extent paid by the Borrower, payable by the Borrower
pursuant to the 2019 Restructuring Transaction Documentation and permitted to be paid hereunder, or attributed to asset Dispositions
or the sale or other Disposition of any Equity Interests of any Person other than in the ordinary course of business, the Disposition
of any securities or the extinguishment of any Indebtedness; plus

 

3.3          
The definition of “Consolidated Fixed Charges” is hereby amended by restating clause (c) thereof as follows:

 

(c)       Restricted
Payments (including Permitted Tax Distributions) paid during such period, other than, without duplication and without any clause
limiting the effect of any other clause, intercompany dividends and distributions by and among the Borrower and the Subsidiaries.

 

3.4          
Section 5.1 of the Credit Agreement is hereby amended by replacing the words “The” at the beginning of
the last sentence of such section with the words “Each of Holdings and the”.

 

3.5          
Article VI of the Credit Agreement is hereby amended by adding the following after Section 6.16 of the Credit
Agreement:

 

In addition to the
foregoing, the Borrower covenants to cause Holdings to comply with Sections 6.3 through 6.10, and with Section
6.13, as if named in each such Section in addition to the Borrower.

 

3.6          
A new Section 6.17 and a new Section 6.18 are hereby added to the Credit Agreement, reading as follows:

 

6.17       Corporate
Separateness. The Loan Parties shall, and shall cause each of their Subsidiaries to, except as otherwise permitted hereunder
or under the other Loan Documents:

 

(a)       individually
or collectively maintain their own deposit and securities accounts, as applicable, and all other accounts, separate from those
of any of their Affiliates (other than the Loan Parties and their Subsidiaries) with commercial banking or financial institutions,
and prevent such funds from being commingled with the funds of any of their Affiliates (other than the other the Loan Parties and
their Subsidiaries);

 

(b)       to
the extent that the Loan Parties and their Subsidiaries and any of their Affiliates (other than the Loan Parties and their Subsidiaries)
have offices in the same location, ensure that there shall be a fair and appropriate allocation of overhead costs among them, and
the Loan Parties and their Subsidiaries shall bear their fair share of such expenses;

 

(c)       to
the extent that the Loan Parties and their Subsidiaries and any of their Affiliates (other than the Loan Parties and their Subsidiaries)
jointly have the benefit of amounts under any contracts, ensure that they contribute to such amounts on a fair and reasonable basis,
based on each party’s use and expense;

 

     5

     

    

(d)       issue
separate consolidated financial statements from any of their Affiliates (other than the Loan Parties and their Subsidiaries); provided
for the avoidance of doubt that the Loan Parties and their Subsidiaries may also be included in the consolidated financial
statements of the Parent and Liberty TopCo so long as each other operating business owned by the Parent or Liberty TopCo issues
separate consolidated financial statements (which may be consolidated financial statements of Persons engaged in the same operating
business) from any of their Affiliates;

 

(e)       conduct
their affairs in their own names and in accordance with their Organization Documents and observe all necessary, appropriate and
customary corporate or equivalent formalities, including, but not limited to, holding all regular and special meetings necessary
to authorize all their actions, keeping separate and materially accurate minutes of their meetings, passing all resolutions or
consents necessary to authorize actions taken or to be taken, and maintaining, in all material respects, accurate and separate
books, records and accounts, including, but not limited to, payroll and intercompany transaction accounts;

 

(f)       not
assume, guarantee, indemnify or grant any security interest in respect of any of the liabilities or other obligations of any of
their Affiliates (other than the Loan Parties and their Subsidiaries; and

 

(g) ensure
that each of their Affiliates (other than the Loan Parties and their Subsidiaries) does not assume, guarantee, indemnify or grant
any security interest in respect of any of the liabilities or other obligations of any Loan Party or any of their Subsidiaries,
or make any Investment in any Loan Party or any Subsidiary of any Loan Party with the proceeds of any Restricted Payment received
by such Affiliate (other than a Restricted Payment received from a Loan Party or Subsidiary of a Loan Party) if such Restricted
Payment was made with any proceeds of Indebtedness incurred by an Affiliate of a Loan Party (other than the Loan Parties and their
Subsidiaries).

 

6.18. Certain
Tax Refunds. The Borrower shall cause the Parent to contribute to Holdings, and Holdings to contribute promptly to the Borrower,
any U.S. federal, state and/or local tax refunds received by the Parent, or received by Liberty TopCo and delivered to the Parent,
that are attributable to the taxable income of Liberty TopCo.

 

3.7          
Article VII of the Credit Agreement is hereby amended as follows:

 

(a)           
Section 7.1 of the Credit Agreement is amended (i) by replacing the word “Guarantor” with the words “Subsidiary
Guarantor” in each of the two instances where such word appears in clause (a)(v) of such Section, and (ii) by inserting the
words “Holdings or” after the word “permit” and before the words “or any of its Subsidiaries”
where such words appear in subsection (b) of such Section.

 

(b)           
Section 7.3 of the Credit Agreement is amended (i) by replacing the word “Guarantor” with the words “Subsidiary
Guarantor” where such word appears in clauses (a)(i), (a)(iii) and (a)(v) of such Section, (ii) by inserting the words “other
than Holdings” after the words “a Loan Party” where such words appear in clause (a)(v)(A) of such Section and
(iii) by inserting the words “if any Subsidiary Guarantor is a party to such merger or consolidation,” after the reference
to Section 7.4 in clause (y) of the proviso to subsection (a)(ii) of such Section.

 

(c)           
Section 7.5 of the Credit Agreement is hereby amended (a) by inserting the following sentence prior to the last sentence
thereof:

 

     6

     

    

The Borrower shall not permit
Holdings to make any Disposition.

 

and (b) by replacing
the word “To” at the beginning of the last sentence thereof with “Except to the extent conditioned by the relevant
waiver or amendment, and except as may otherwise be agreed by the Borrower, to”.

 

(d)           
Section 7.8 of the Credit Agreement is hereby amended by restating subsection (d) thereof as follows:

 

(d)       The
Borrower may make (i) Permitted Tax Distributions and (ii) to the extent constituting a Restricted Payment, the payment of fees
and expenses (or the distribution of amounts used to pay such fees and expenses) incurred by Liberty TopCo pursuant to the Business
Combination Agreement in connection with the 2019 Restructuring Transactions in an aggregate amount not to exceed $5,000,000.

 

(e)           
Sections 7.9, 7.11, 7.13, 7.14 and 7.15 of the Credit Agreement are each hereby amended
by inserting the words “Holdings or” after the words “will not permit” in each instance in which such words
appear in such Sections.

 

(f)            
A new Section 7.16 is hereby added to the Credit Agreement, reading as follows:

 

7.16       Holding
Companies. The Borrower shall not permit any Holding Company to engage in any business or activity (including making or holding
any Investment, incurring any Indebtedness or Liens, entering into any merger, consolidation or similar transaction or making any
Disposition) other than (a) (i) in the case of Holdings, the ownership of all outstanding Equity Interests in the Borrower held
by it on the Second Amendment Effective Date after the 2019 Reorganization Transactions and (ii) in the case of the Parent, the
ownership of Equity Interests of Holdings and its other Subsidiaries from time to time and, in each case, making capital contributions
with respect to Qualified Equity Interests of its Subsidiaries, (b) maintaining its corporate existence, (c) participating
in tax, accounting and other administrative activities as the parent of any group of its Subsidiaries constituting part of the
consolidated group of companies including such Holding Company, (d) in the case of Holdings, the execution and delivery of the
Loan Documents to which it is a party and the performance of its obligations thereunder, to the extent applicable, (e) the execution
and delivery of the 2019 Restructuring Transaction Documents to which it is a party and the performance of its obligations thereunder,
(f) the maintenance of its capital structure including the issuance, of Equity Interests and entering into those agreements and
arrangement incidental thereto, (g) receiving, declaring and making dividends and distributions to the extent permitted by Section
7.8, (h) holding any cash or property received in connection with dividends or distributions or payments permitted under Section
7.8 pending the prompt application of such proceeds to make such payment, to another permitted Restricted Payment or to the
investment thereof, directly or indirectly, in the Borrower; (i) holding directors’ and members’ meetings, preparing
corporate and similar records and other activities required to maintain its separate existence or other legal structure, (j) preparing
reports to, and preparing and making notices to and filings with, Governmental Authorities and to its holders of Equity Interests,
(k) in the case of Parent, other transactions in the ordinary course of business (including without limitation the making of Investments
and the formation or acquisition of new Subsidiaries) as permitted by its constituent documents, other than the incurrence of Indebtedness
or Liens (other than Liens securing deposits relating to Investments by the Parent prior to the consummation thereof) and (l) activities
incidental to the businesses or activities described in clauses (a) through (k) of this Section. The Borrower shall not permit
Liberty TopCo to incur any Indebtedness of the kind described in clauses (a), (b) or (e) of the definition
of “Indebtedness” or, to the extent related thereto, clause (l) of such definition, or any Liens other than
Liens securing deposits relating to Investments by Liberty Topco prior to the consummation thereof.

 

     7

     

    

(g)           
Section 8.1(d) of the Credit Agreement is hereby amended by replacing the text reading “or 6.16”
with “, 6.16 or 6.17”.

 

(h)           
Each of the Exhibits to the Credit Agreement is hereby amended by changing the references to Liberty TopCo to references
to New Liberty Tax, as successor in interest to New Liberty TopCo.

 

Section 4.             
Consent. Each of the Lenders hereby consents to the 2019 Restructuring Transactions on
the Second Amendment Effective Date and the provisions of this Amendment.

 

Section 5.             
Conditions Precedent; Fees. The effectiveness of this Amendment is subject to the satisfaction
of the following conditions precedent (the date on which such conditions precedent are satisfied, the “Second Amendment
Effective Date”):

 

(a)           
this Amendment shall have been duly executed by New Liberty Tax, Liberty TopCo, Holdings, each other Loan Party, the Administrative
Agent and each Lender, and counterparts hereof as so duly executed shall have been delivered to the Administrative Agent;

 

(b)           
all fees of counsel to the Administrative Agent incurred in connection with this Amendment and for which the Borrower shall
have received an invoice on or prior to the date hereof, and all fees to Citizens Bank and the Lenders required to be paid in connection
herewith, shall have been or will be substantially simultaneously paid;

 

(c)           
the representations and warranties contained in Section 7 of this Amendment shall be true and correct in all material
respects, in each case on and as of the Second Amendment Effective Date as if made on and as of such date, provided that
to the extent that such representations and warranties specifically refer to an earlier date, they shall be true and correct in
all material respects as of such earlier date; provided further that any representation and warranty that is qualified as
to “materiality”, “Material Adverse Effect” or similar language shall be true and correct (after giving
effect to any qualification therein) in all respects on such respective dates;

 

(d)           
the Contributed Assets shall have been contributed by Liberty TopCo to the Parent, by the Parent to Holdings and by Holdings
to New Liberty Tax, all pursuant to the 2019 Contribution Documentation and, substantially contemporaneously with the effectiveness
of this Amendment, the other transactions contemplated by the 2019 Restructuring Transaction Documents to occur at or prior to
the time of the Closing shall have occurred;

 

(e)       the
Security Agreement, the Guarantee Agreement and, to the extent required by the Administrative Agent, the other Collateral Documents,
shall have been amended (including by means of an amendment and restatement) to add each of Holdings and New Liberty Tax as a grantor
and guarantor under each respective such agreement, and the Loan Parties shall have delivered to the Administrative Agent (i) a
Perfection Certificate, (ii) to the extent represented by certificates, the Equity Interests pledged to the Administrative Agent,
for the benefit of the Secured Parties, under the Security Agreement, all endorsed in blank, all of the foregoing to be in form
and substance satisfactory to the Administrative Agent and (iii) copies of proper financing statements, filed or duly prepared
for filing under the Uniform Commercial Code in all United States jurisdictions that the Administrative Agent may deem reasonably
necessary in order to perfect and protect the Liens on assets of Holdings and created under the Security Agreement, covering the
Collateral described in the Security Agreement;

 

     8

     

    

(f)       
[reserved];

 

(g)       the
Organizational Documents of each of Liberty TopCo, the Parent, Holdings and New Liberty Tax, each as modified or established in
connection with the 2019 Restructuring Transactions, shall be in form and substance satisfactory to the Administrative Agent. Each
Loan Party shall have furnished to the Administrative Agent such certificates of resolutions or other action, incumbency certificates
and/or other certificates of Responsible Officers of each Loan Party (after giving effect to the transactions contemplated hereby)
as the Administrative Agent may reasonably require evidencing the identity, authority and capacity of each Responsible Officer
thereof authorized to act as a Responsible Officer in connection with this Amendment and the other Loan Documents to which such
Loan Party, together with such documents and certifications as the Administrative Agent may reasonably require to evidence that
each such Loan Party is duly organized, incorporated or formed, and that each Loan Party is validly existing, in good standing
in such Loan Party’s jurisdiction of incorporation, organization or formation;

 

(h)       the
Administrative Agent shall have received favorable opinions of Troutman Sanders LLP, in each case as to such matters as the Administrative
Agent may reasonably request and in form and substance satisfactory to the Administrative Agent;

 

(i)        the
Administrative Agency shall have received a certificate signed by a Responsible Officer of New Liberty Tax certifying that the
conditions specified in Sections 5(c), (d) and (q) have been satisfied;

 

(j)       the
Administrative Agent shall have received evidence satisfactory to it that the obligations under the Subordinated Note shall have
been assumed by New Liberty Tax and that Liberty TopCo shall have been released from its obligations thereunder, all in a manner
satisfactory to the Administrative Agent;

 

(k)       the
Administrative Agent shall have received a Solvency Certificate attesting to the Solvency of each Loan Party and its Subsidiaries
(taken as a whole) on the Closing Date immediately before and after giving effect to the Transactions, from the chief financial
officer or an authorized person performing similar function of the Borrower;

 

(l)       the
Administrative Agent shall have received evidence that all insurance required to be maintained pursuant to the Loan Documents has
been obtained and is in effect and that the Administrative Agent has been named as lender’s loss payee and/or additional
insured, as applicable, under each insurance policy with respect thereto and all endorsements thereto have been delivered, in each
case, in accordance with the terms of the Loan Documents, and the Administrative Agent shall be otherwise satisfied with all of
the insurance arrangements of the Loan Parties and their Subsidiaries;

 

(m)       the
Administrative Agent shall have received fully executed copies of the 2019 Restructuring Documentation, certified by a Responsible
Officer of New Liberty Tax to be true, correct and complete (together with all material agreements, instruments and other documents
delivered in connection therewith), and all of such documentation shall be satisfactory to the Administrative Agent;

 

(n)       at
least five (5) Business Days prior to the Amendment Effective Date, all documentation and other information required by regulatory
authorities under applicable “know your customer” and anti-money laundering rules and regulations, including, without
limitation, the USA PATRIOT Act, that has been requested at least ten (10) Business Days prior to the Closing Date, and a Beneficial
Ownership Certification executed by each Borrower that is a “legal entity customer” as defined in the Beneficial Ownership
Regulation;

 

     9

     

    

(o)       the
Borrower shall have delivered to the Administrative Agency evidence that all required filings with and approvals and consents of
the shareholders of any Loan Party, any party to the 2019 Restructuring Transactions and any Governmental Authority shall have
been made and obtained;

 

(p)       the
Borrower shall have furnished to the Lenders updated projections, in form and substance satisfactory to the Administrative Agent,
giving effect to the 2019 Restructuring Transactions;

 

(q)       after
giving effect to this Amendment as of the Second Amendment Effective Date, no Default or Event of Default shall exist under any
of the Loan Documents, and none shall occur as a result of observing any provision hereof or to the consummation of the transactions
contemplated hereby;

 

(r)       the
Borrower shall have paid to each Lender, as consideration for its execution and delivery of this Agreement, a consent fee equal
to 0.05% of the Commitment of such Lender on the date hereof, which fees shall be deemed earned in full on the date hereof and
shall not be subject to rebate or refund for any reason whatsoever; and

 

(s)       the
Second Amendment Effective Date shall have occurred on or before July 10, 2019 (the “Outside Date”).

 

If the Second Amendment
Effective Date shall not have occurred by the Outside Date, then the Borrower shall pay to each Lender, on the Business Day following
the Outside Date, the fees that would have been payable to such Lender on the Second Amendment Date under Section 5(b) above
had such date occurred on the Outside Date.

 

Section 6.             
Affirmation. Before and after giving effect to the transactions contemplated hereby, each
of the Loan Parties hereby (a) consents and agrees to and acknowledges and affirms the terms of this Amendment and (b) further
agrees that its respective obligations under the Credit Agreement, the Guarantee Agreement, the Security Agreement and each of
the other Loan Documents shall remain in full force and effect and shall be unaffected hereby (except as expressly set forth herein
with respect to Liberty TopCo). Without limiting the foregoing, each of the Parent, Holdings and New Liberty Tax acknowledges notice
of the Liens of the Collateral Documents on the Contributed Assets and that such Liens will survive the contribution of such assets
in connection with the 2019 Contribution.

 

Section 7.             
Representations and Warranties. Each Loan Party hereby represents and warrants to the
Administrative Agent and the Lenders party hereto on the date hereof and on the Second Amendment Effective Date as follows:

 

7.1          
Power and Authority. It has all requisite power and authority to execute and deliver this Amendment and the other
Loan Documents executed and delivered in connection herewith (together with this Amendment, the “Amendment Documentation”)
to which it is a party and the 2019 Restructuring Transaction Documentation to which it is a party and to perform its obligations
hereunder and thereunder.

 

7.2          
Authorization. It has taken all necessary corporate or limited liability company action, as applicable, to duly authorize
the execution and delivery of, and performance of its obligations under, this Amendment, the other Amendment Documentation to which
it is a party and the 2019 Restructuring Transaction Documentation to which it is a party, and this Amendment, the other Amendment
Documentation to which it is a party and the 2019 Restructuring Transaction Documentation to which it is a party have been duly
authorized and duly executed and delivered by its duly authorized officer or officers.

 

     10

     

    

7.3          
Non-Violation. The execution and delivery of this Amendment and the other Amendment Documentation to which it is
a party and the 2019 Restructuring Transaction Documentation to which it is a party and the performance and observance by it of
the terms and provisions hereof and thereof (a) do not violate or contravene its Organization Documents or any applicable laws
or (b) conflict with or result in a breach or contravention of any provision of, or constitute a default under, any other agreement,
instrument or document binding upon or enforceable against it.

 

7.4          
Validity and Binding Effect. Upon satisfaction of the conditions set forth in Section 5 above, this Amendment
and the other Amendment Documentation to which such Loan Party is a party shall constitute a legal, valid and binding agreement
of such Loan Party, enforceable against it in accordance with its respective terms, except as such enforceability may be limited
by Debtor Relief Laws and by general principles of equity and principles of good faith and fair dealing.

 

7.5          
Representations and Warranties in the Credit Agreement. The representations and warranties of such Loan Party contained
in the Credit Agreement as amended hereby are true and correct in all material respects, in each case on and as of the Second Amendment
Effective Date as if made on and as of such date, provided that to the extent that such representations and warranties specifically
refer to an earlier date, they shall be true and correct in all material respects as of such earlier date; provided further
that any representation and warranty that is qualified as to “materiality”, “Material Adverse Effect” or
similar language shall be true and correct (after giving effect to any qualification therein) in all respects on such respective
dates.

 

7.6          
No Consent. No consent, exemption, authorization or approval of, registration or filing with, or any other action
by, any Governmental Authority is required in connection with this Amendment, the other Amendment Documentation to which it is
a party and the 2019 Restructuring Transaction Documentation to which it is a party or the execution, delivery, performance, validity
or enforceability of this Amendment, the other Amendment Documentation to which it is a party and the 2019 Restructuring Transaction
Documentation to which it is a party, except, in each case, consents, exemptions, authorizations, approvals, filings and actions
which have been obtained or made and are in full force and effect.

 

7.7          
No Event of Default. No Default or Event of Default exists before the effectiveness of, and none will exist immediately
after giving effect to, this Amendment or as a result of observing any provision hereof

 

7.8          
Litigation. There are no actions, suits or proceedings by or before any arbitrator or Governmental Authority pending
against any Loan Party or, to the knowledge of the Borrower, threatened against or affecting the Loan Parties or any of their Subsidiaries
(a) that would, individually or in the aggregate, reasonably be expected to result in a Material Adverse Effect or (b) that involve
or affect, or that purport to or could reasonably be expected to involve or affect, any Loan Document, any Amendment Documentation
or the 2019 Restructuring Transactions.

 

7.9          
Subsidiaries; Equity Interests; Indebtedness. As of the Second Amendment Effective Date, after giving effect to the
2019 Restructuring Transactions and the Amendment Documentation, no Loan Party has any direct or indirect Subsidiaries or investments
(other than Cash Equivalents) in, or joint ventures or partnerships with, any Person, except as disclosed in Schedule 7.9.
Such Schedule also sets forth (a) the name and jurisdiction of organization or incorporation of each Subsidiary of Liberty TopCo
that has a direct or indirect ownership interest in the Borrower and identifies each Subsidiary of the Borrower that is an Excluded
Subsidiary on the Second Amendment Effective Date and (b) the ownership interest of (x) each Loan Party and their respective Subsidiaries
in each of their respective Subsidiaries (y) of Liberty TopCo in Parent and (z) of Parent in Holdings, including in each case the
percentage of such ownership. Neither any Loan Party nor any of its Subsidiaries has issued any Disqualified Equity Interests and
there are no outstanding options or warrants to purchase Equity Interests of any Loan Party (other than the Borrower) or any Subsidiary
of any Loan Party of any class or kind, and there are no agreements, voting trusts or understandings with respect thereto or affecting
in any manner the sale, pledge, assignment or other disposition thereof, including any right of first refusal, option, redemption,
call or other rights with respect thereto, whether similar or dissimilar to any of the foregoing. All of the issued and outstanding
Equity Interests owned any Loan Party in its Subsidiaries have been duly authorized and issued and are fully paid and non-assessable
and are free and clear of all Liens other than, in the case of Equity Interests of Subsidiaries of Holdings, Liens in favor of
the Administrative Agent under the Collateral Documents. As of the Second Amendment Effective Date, since the formation of each
Holding Company and New Liberty Tax, no such Person has incurred any Indebtedness or other obligations whatsoever, other than obligations
under the 2019 Restructuring Documentation and, in the case of Holdings and New Liberty Tax, the Amendment Documentation.

 

     11

     

    

Section 8.             
Miscellaneous.

 

8.1          
Successors and Assigns. This Amendment shall be binding upon and inure to the benefit of the parties hereto and their
respective successors and assigns.

 

8.2          
Survival of Representations and Warranties. All representations and warranties made hereunder shall survive the execution
and delivery of this Amendment.

 

8.3          
Severability. Any provision of this Amendment that is prohibited or unenforceable in any jurisdiction shall, as to
such jurisdiction, be ineffective to the extent of such prohibition or unenforceability without invalidating the remaining provisions
hereof, and any such prohibition or unenforceability in any jurisdiction shall not invalidate or render unenforceable such provision
in any other jurisdiction.

 

8.4          
Headings. The headings, captions and arrangements used in this Amendment are for convenience only and shall not affect
the interpretation of this Amendment.

 

8.5          
Loan Documents Unaffected. Each reference to the Credit Agreement in any Loan Document shall hereafter be construed
as a reference to the Credit Agreement as modified hereby. Except as otherwise specifically provided, this Amendment shall not,
by implication or otherwise, limit, impair, constitute a waiver of, or otherwise affect the rights and remedies of any party under,
the Credit Agreement or any other Loan Document, nor alter, modify, amend or in any way affect any provision of the Credit Agreement
or any other Loan Document, including, without limitation, the guarantees, pledges and grants of security interests, as applicable,
under each of the Collateral Documents, all of which are ratified and affirmed in all respects and shall continue in full force
and effect. This Amendment is a Loan Document. Without limiting the foregoing, the Liens of the Collateral Documents on the Contributed
Assets shall not be released or terminated as a result of the 2019 Contribution but shall continue to attach to the Contributed
Assets after giving effect to the 2019 Restructuring Transactions.

 

8.6          
Entire Agreement. This Amendment, together with the Credit Agreement and the other Loan Documents, integrates all
the terms and conditions mentioned herein or incidental hereto and supersede all oral representations and negotiations and prior
writings with respect to the subject matter hereof.

 

8.7          
Acknowledgments. Each Loan Party hereby acknowledges that:

 

(a)           
it has consulted and been advised by its own legal counsel in the negotiation, execution and delivery of this Amendment
and the other Loan Documents and it has consulted its own accounting, regulatory and tax advisors to the extent it has deemed appropriate;

 

     12

     

    

(b)           
it is capable of evaluating, and understands and accepts, the terms, risks and conditions of the transactions contemplated
by this Amendment and by the other Loan Documents;

 

(c)           
neither the Administrative Agent nor any Lender has any fiduciary relationship with or duty to any Loan Party arising out
of or in connection with this Amendment or any of the other Loan Documents, and the relationship between the Administrative Agent
and the Lenders, on one hand, and the Loan Parties, on the other hand, in connection herewith or therewith is solely that of debtor
and creditor;

 

(d)           
the Lenders have no obligation to the Loan Parties or any of their respective Affiliates with respect to the transactions
contemplated by this Amendment and by the other Loan Documents, except any obligations expressly set forth in this Amendment and
in the other Loan Documents;

 

(e)           
the Lenders and their Affiliates may be engaged in a broad range of transactions that involve interests that differ from
those of the Loan Parties and their respective Affiliates, and the Lenders have no obligation to disclose any of such interests
to the Loan Parties or any of their respective Affiliates; and

 

(f)            
no joint venture is created hereby or by the other Loan Documents or otherwise exists by virtue of the transactions contemplated
hereby among the Lenders or among the Loan Parties and the Lenders.

 

8.8          
Release. Immediately upon the execution and acceptance of this Amendment, each Loan Party and each of their respective
successors, assigns, subsidiaries, affiliates, insurers, employees, attorneys, agents, representatives and other persons and/or
entities connected therewith, hereby fully and forever compromises, settles, releases, acquits and discharges the Administrative
Agent, the Lenders, the Arranger and their respective Affiliates and each of their and their Affiliates’ present, former
and future directors, officers, employees, agents, partners, trustees, attorneys, advisors or other representatives and other persons
and/or entities connected therewith (collectively, the “Released Parties”) from any and all debts, claims, demands,
liabilities, responsibilities, disputes, causes, damages, actions, causes of action (whether at law and/or in equity) and obligations
of every nature whatsoever (whether liquidated or unliquidated, known or unknown, asserted or unasserted, foreseen or unforeseen,
matured or unmatured, fixed or contingent) that each Loan Party has, had and/or may claim to have against any of the Released Parties
which arise from or relate to any actions which any of the Released Parties have and/or may have taken or have and/or may have
omitted to take prior to the date this Agreement was executed and, without limiting the foregoing, with respect to the Credit Agreement
and/or any documents executed and/or delivered in connection with the foregoing.

 

8.9          
Reaffirmation by the Loan Parties. Without limiting its obligations under or the provisions of the Credit Agreement,
as amended by this Agreement and the other Loan Documents, each Loan Party hereby (a) affirms and confirms its guaranty obligations
under the Loan Documents to which it is a party and its pledges, grants, indemnification obligations and other commitments and
obligations under the Credit Agreement and each other Loan Document to which it is a party, in each case as of the Second Amendment
Effective Date after giving effect to this Amendment and the other Amendment Documentation to which it is a party, (b) agrees that
each of the Guarantee Agreement and each Collateral Document to which it is a party and all guarantees, pledges, grants and other
commitments and obligations under each Loan Document to which it is a party shall continue to be in full force and effect following
the effectiveness of this Amendment (and shall apply in all respects to the obligations of New Liberty Tax in respect of the Loan
Document Obligations) and (c) confirms that, except with respect to Liberty Parent, all of the Liens and security interests created
and arising under the Collateral Documents (including all Liens on the Contributed Assets) remain in full force and effect, and
are not released or reduced, as collateral security for the Secured Obligations (including any such Secured Obligations of New
Liberty Tax).

 

     13

     

    

8.10        
[Reserved].

 

8.11        
Counterparts. This Amendment may be executed by the parties hereto separately in one or more counterparts, each of
which when so executed shall be deemed to be an original, but all of which when taken together shall constitute one and the same
agreement. Transmission by a party to another party (or its counsel) via facsimile or electronic mail of a signed copy of this
Amendment (or a signature page of this Amendment) shall be as fully effective as delivery by such transmitting party to the other
parties hereto of a counterpart of this Amendment that had been manually signed by such transmitting party.

 

8.12        
Governing Law. This Amendment and each other Loan Document shall be governed by, and construed in accordance with,
the laws of the State of New York.

 

8.13        
Submission to Jurisdiction. Each of the parties hereto irrevocably and unconditionally submits, for itself and its
property, to the exclusive jurisdiction of the courts of the State of New York sitting in New York County and of the United States
District Court of the for 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 Amendment or any other Loan Document, or for recognition or enforcement of any judgment, and
each of the parties hereto irrevocably and unconditionally agrees that all claims in respect of any such action or proceeding may
be heard and determined in such New York State court or, to the fullest extent permitted by applicable law, in such Federal court.
Each of the parties 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 Amendment or in any other
Loan Document shall affect any right that any Credit Party may otherwise have to bring any action or proceeding relating to this
Amendment or any other Loan Document against the Borrower or any other Loan Party or its properties in the courts of any jurisdiction.

 

8.14        
Waiver of Objection to Venue. Each of the parties hereto irrevocably and unconditionally waives, to the fullest extent
permitted by applicable law, any objection that it may now or hereafter have to the laying of venue of any action or proceeding
arising out of or relating to Agreement or any other Loan Document in any court referred to in Section 8.11. Each of the
parties hereto hereby irrevocably waives, to the fullest extent permitted by applicable law, the defense of an inconvenient forum
to the maintenance of such action or proceeding in any such court.

 

8.15        
Service of Process. Each of the parties hereto irrevocably consents to service of process in the manner provided
for notices in Section 10.1 of the Credit Agreement. Nothing in this Amendment or in the Credit Agreement will affect the
right of any party to this Amendment to serve process in any other manner permitted by law.

 

8.16        
Jury Trial Waiver. 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 AMENDMENT
OR ANY OTHER LOAN DOCUMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY OR THEREBY (WHETHER BASED ON CONTRACT, TORT OR ANY OTHER THEORY).
EACH PARTY HERETO HEREBY (A) CERTIFIES THAT NO REPRESENTATIVE, AGENT OR ATTORNEY OF ANY OTHER PERSON HAS REPRESENTED, EXPRESSLY
OR OTHERWISE, THAT SUCH OTHER PERSON 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 AMENDMENT AND THE OTHER LOAN DOCUMENTS BY, AMONG OTHER
THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS SECTION.

 

     14

     

    

[Signature page follows]

 

 

 

 

 

 

 

 

 

 

     15

     

    

 

IN WITNESS WHEREOF,
the parties hereto have caused this Amendment to be duly executed and delivered by their proper and duly authorized officers as
of the date first above written.

 

LIBERTY TAX, INC.

 

 

 

By:  /s/ Michael Piper                     

Name: Michael Piper

Title: Vice President and Chief
Financial Officer

 

 

JTH TAX LLC (formerly JTH TAX, INC.)

 

 

 

By:  /s/ Michael Piper                     

Name: Michael Piper

Title: Chief Financial Officer

 

 

SIEMPRETAX+ LLC

 

By: Liberty Tax, Inc., its Manager

 

 

 

By:  /s/ Michael Piper                     

Name: Michael Piper

Title: Vice President and Chief
Financial Officer

 

JTH FINANCIAL, LLC

 

 

By:  /s/ Michael Piper                     

Name: Michael Piper

Title: Director

 

 

WEFILE LLC (formerly WEFILE INC.)

 

 

 

By:  /s/ Michael Piper                     

Name: Michael Piper

Title: Chief Financial Officer

 

 

[Signature Page to Second Amendment to Credit
Agreement and Assumption Agreement]

     

     

    

 

JTH PROPERTIES 1632, LLC

 

By: JTH Financial, LLC, its Manager

 

 

By:  /s/ Michael Piper                     

Name: Michael Piper

Title: Director

 

 

LTS PROPERTIES, LLC

 

By: JTH Tax LLC (formerly JTH Tax, Inc.), its Manager

 

 

By:  /s/ Michael Piper                     

Name: Michael Piper

Title: Chief Financial Officer

 

 

LTS SOFTWARE LLC (formerly LTS SOFTWARE INC.)

 

 

By:  /s/ Michael Piper                     

Name: Michael Piper

Title: Chief Financial Officer

 

 

JTH TAX OFFICE PROPERTIES, LLC

 

By: JTH Tax LLC (formerly JTH Tax, Inc.), its Manager

 

 

By:  /s/ Michael Pipe                     

Name: Michael Piper

Title: Chief Financial Officer

 

[Signature Page to Second Amendment to Credit
Agreement and Assumption Agreement]

 

     

     

    

 

360 ACCOUNTING SOLUTIONS LLC

 

By: JTH Tax LLC (formerly JTH Tax, Inc.), its Manager

 

 

 

By:  /s/ Michael Piper                     

Name: Michael Piper

Title: Chief Financial Officer

 

 

JTH COURT PLAZA, LLC

 

By: JTH Tax LLC (formerly JTH Tax, Inc.), its Manager

 

 

 

By:  /s/ Michael Piper                     

Name: Michael Piper

Title: Chief Financial Officer

 

 

[Signature Page to Second Amendment to Credit
Agreement and Assumption Agreement]

     

     

    

FRANCHISE GROUP INTERMEDIATE L 2, LLC

 

 

 

By:  /s/ Michael Piper                     

Name: Michael Piper

Title: Chief Financial Officer

 

 

FRANCHISE GROUP
INTERMEDIATE L 1, LLC

 

 

 

By:  /s/ Michael Piper                     

Name: Michael Piper

Title: Chief Financial Officer

 

 

[Signature Page to Second Amendment to Credit
Agreement and Assumption Agreement]

     

     

    

 

CITIZENS BANK, N.A., as Administrative Agent and as
a Lender

 

 

 

By:  /s/ Tracy Van Riper                     

Name: Tracy Van Riper

Title: Senior Vice President

 

 

 

[Signature Page to Second Amendment to Credit
Agreement and Assumption Agreement]

     

     

    

CIBC BANK USA, as a Lender

 

 

 

By:  /s/ Daniel Costello                     

Name: Daniel Costello

Title: Group Portfolio Manager

 

 

 

[Signature Page to Second Amendment to Credit
Agreement and Assumption Agreement]

     

     

    

First Tennessee Bank, N.A., as a Lender

 

 

 

By:  /s/ Keith A. Sherman                     

Name: Keith A. Sherman

Title: SVP

 

 

 

[Signature Page to Second Amendment to Credit
Agreement and Assumption Agreement]

     

     

    

 

Atlantic Union Bank (formerly “Union Bank &
Trust”), as a Lender

 

 

 

By:  /s/ Peter W. Strauss                     

Name: Peter W. Strauss

Title: Senior Vice President

 

 

 

[Signature Page to Second Amendment to Credit
Agreement and Assumption Agreement]

     

     

    

Republic Bank & Trust Company, as a Lender

 

 

 

By:  /s/ Robert J. Arnold                     

Name: Robert J. Arnold

Title: Senior Vice President

 

 

[Signature Page to Second Amendment to Credit
Agreement and Assumption Agreement]

     

     

    

 

 

Schedule 7.9

Capitalization

	Name	Jurisdiction of Incorporation or Organization	Owner	Percentage of Ownership	Excluded Subsidiary?	Equity Pledged Pursuant to Security Agreement?
	Franchise Group New Holdco, LLC	Delaware	Liberty Tax, Inc.	65%	N/A	N/A
	Franchise Group Intermediate L 1, LLC	Delaware	Franchise Group New Holdco, LLC	100%	N/A	N/A
	Franchise Group Intermediate L 2, LLC	Delaware	Franchise Group Intermediate L 1, LLC	100%	N/A	N/A
	JTH Tax LLC (formerly JTH Tax, Inc.)	Delaware	Franchise Group Intermediate L 2, LLC	100%	No	Yes
	SiempreTax+ LLC	Virginia	Franchise Group Intermediate L 2, LLC	100%	No	Yes
	JTH Financial, LLC	Virginia	JTH Tax LLC 

(formerly JTH Tax, Inc.)	100%	No	Yes
	Wefile LLC 

(formerly Wefile Inc.)	Virginia	JTH Tax LLC 

(formerly JTH Tax, Inc.)	100%	No	Yes
	JTH Properties 1632, LLC	Virginia	JTH Financial, LLC	100%	No	Yes
	LTS Properties, LLC	Virginia	JTH Tax LLC 

(formerly JTH Tax, Inc.)	100%	No	Yes
	LTS Software LLC (formerly LTS Software Inc.)	Virginia	JTH Tax LLC 

(formerly JTH Tax, Inc.)	100%	No	Yes
	JTH Tax Office Properties, LLC	Virginia	JTH Tax LLC 

(formerly JTH Tax, Inc.)	100%	No	Yes
	360 Accounting Solutions LLC	Virginia	JTH Tax LLC 

(formerly JTH Tax, Inc.)	100%	No	Yes
	JTH Court Plaza, LLC	Virginia	JTH Tax LLC 

(formerly JTH Tax, Inc.)	100%	No	Yes

 

     

     

    

	Liberty Tax Holding Corporation	Ontario	JTH Tax LLC 

(formerly JTH Tax, Inc.)	100%	Yes	Yes
	Liberty Tax Service, Inc.	Ontario	JTH Tax LLC 

(formerly JTH Tax, Inc.)	60%	Yes	Yes
	Liberty Tax Service, Inc.	Ontario	Liberty Tax Holding Corporation	40%	Yes	No
	Trilogy Software, Inc.	Ontario	Liberty Tax Service, Inc.	Approx.

20%	Yes	No

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