Document:

jagx_Ex10_6

		
			Exhibit 10.6
		

		
			 
		

		
			THE EXCHANGE CONTEMPLATED HEREIN IS INTENDED TO COMPORT WITH THE REQUIREMENTS OF SECTION 3(a)(9) OF THE SECURITIES ACT OF 1933, AS AMENDED.
		

		
			 
		

		
			EXCHANGE AGREEMENT
		

		
			This Exchange Agreement (this “Agreement”) is entered into as of ____________, 2019 by and among Chicago Venture Partners, L.P.,  a Utah limited partnership (“Lender”), Jaguar Health, Inc., a Delaware corporation (“Jaguar”), and Napo Pharmaceuticals, Inc. (“Napo,” and together with Jaguar, “Borrower”). Capitalized terms used in this Agreement without definition shall have the meanings given to them in the Original Note  (as defined below).
		

		
			A.        Borrower previously sold and issued to Lender that certain Secured Promissory Note dated May 28, 2019 but with an original issuance date of July 31, 2017 in the original principal amount of $10,535,900.42  (the “Original Note”) pursuant to that certain Exchange Agreement dated May 28, 2019,  by and between Lender and Borrower (the “Prior Exchange Agreement,” and together with the Original Note and all other documents entered into in conjunction therewith, the “Transaction Documents”).
		

		
			B.         Subject to the terms of this Agreement, Borrower and Lender desire to partition a new Secured Promissory Note in the original principal amount of $____________ (the “Partitioned Note”) from the Original Note and then cause the outstanding balance of the Original Note to be reduced by an amount equal to the initial outstanding balance of the Partitioned Note.
		

		
			C.         Borrower and Lender further desire to exchange (such exchange is referred to as the “Note Exchange”) the Partitioned Note for ____________ shares of the Jaguar’s Common Stock, par value $0.0001 (the “Common Stock,” and such ____________ shares of Common Stock, the “Exchange Shares”), at an effective price per Exchange Share equal to $______,  according to the terms and conditions of this Agreement.
		

		
			D.        The Note Exchange will consist of Lender surrendering the Partitioned Note in exchange for the Exchange Shares, which will be issued free of any restrictive securities legend.
		

		
			E.         Other than the surrender of the Partitioned Note, no consideration of any kind whatsoever shall be given by Lender to Borrower in connection with this Agreement.
		

		
			F.         Lender and Borrower now desire to exchange the Partitioned Note for the Exchange Shares on the terms and conditions set forth herein.
		

		
			NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties agree as follows:
		

		
			1.         Recitals and Definitions.  Each of the parties hereto acknowledges and agrees that the recitals set forth above in this Agreement are true and accurate, are contractual in nature, and are hereby incorporated into and made a part of this Agreement.
		

		
			2.         Partition. Effective as of the date hereof, Borrower and Lender agree that the Partitioned Note is hereby partitioned from the Original Note. Following such partition of the 
		

		
			 
		

		
			 
		

		
			 
		

		
			

		 

		

		
			Original Note, Borrower and Lender agree that the Original Note shall remain in full force and effect, provided that the outstanding balance of the Original Note shall be reduced by an amount equal to the initial outstanding balance of the Partitioned Note.
		

		
			 
		

		
			3.         Issuance of Shares. Pursuant to the terms and conditions of this Agreement, the Exchange Shares may not be issued under any circumstances if the issuance of the Exchange Shares would cause Lender to beneficially own a number of shares of Common Stock exceeding 9.99% of the number of shares of Common Stock outstanding on the issuance date (the “Maximum Percentage”). The Note Exchange shall occur with Lender surrendering the Partitioned Note to Borrower on the Free Trading Date (as defined below). On the Free Trading Date, the Partitioned Note shall be cancelled and all obligations of Borrower under the Partitioned Note shall be deemed fulfilled.  Upon receipt of written confirmation from Lender that the issuance of the Exchange Shares (or any portion thereof designated be Lender) will not cause Lender’s ownership of the Common Stock to exceed the Maximum Percentage, Borrower shall be obligated to deliver to Lender the number of Exchange Shares requested by Lender within two (2) business days of receipt of the applicable notice. All Exchange Shares delivered hereunder shall be delivered via DWAC to Lender’s designated brokerage account.  Borrower agrees to provide all necessary cooperation or assistance that may be required to cause all Exchange Shares delivered hereunder to become Free Trading (the first date on which all Exchange Shares become Free Trading, the “Free Trading Date”). For purposes hereof, the term “Free Trading” means that (a) the Exchange Shares have been cleared and approved for public resale by the compliance departments of Lender’s brokerage firm and the clearing firm servicing such brokerage, and (b) such shares are held in the name of the clearing firm servicing Lender’s brokerage firm and have been deposited into such clearing firm’s account for the benefit of Lender. By written notice to Borrower, Lender may increase, decrease or waive the Maximum Percentage as to itself but any such waiver will not be effective until the 61st day after delivery thereof. The foregoing 61-day notice requirement is enforceable, unconditional and non-waivable and shall apply to all affiliates and assigns of Lender.
		

		
			4.         Closing. The closing of the transaction contemplated hereby (the “Closing”) along with the delivery of the Exchange Shares to Lender shall occur on the date that is mutually agreed to by Borrower and Lender by means of the exchange by express courier and email of .pdf documents, but shall be deemed to have occurred at the offices of Hansen Black Anderson Ashcraft PLLC in Lehi, Utah.
		

		
			5.         Holding Period, Tacking and Legal Opinion.  Borrower represents, warrants and agrees that for the purposes of Rule 144 (“Rule 144”) of the Securities Act of 1933, as amended (the “Securities Act”), the holding period of the Partitioned Note and the Exchange Shares will include the prior noteholder’s holding period of the notes that were exchanged for the Original Note and Lender’s holding period of the Original Note from July 31, 2017. Borrower agrees not to take a position contrary to this Section 5 in any document, statement, setting, or situation. Borrower agrees to take all action necessary to issue the Exchange Shares without restriction, and not containing any restrictive legend without the need for any action by Lender; provided that the applicable holding period has been met. In furtherance thereof, prior to the Closing, counsel to Lender may, in its sole discretion, provide an opinion that: (a) the Exchange Shares may be resold pursuant to Rule 144 without volume or manner-of-sale restrictions; and (b) the transactions contemplated hereby and all other documents associated with this transaction comport with the 
		

		
			
		

		
			

		 

		

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			requirements of Section 3(a)(9) of the Securities Act. Borrower represents that it is not subject to Rule 144(i). The Exchange Shares are being issued in substitution of and exchange for and not in satisfaction of the Partitioned Note. The Exchange Shares shall not constitute a novation or satisfaction and accord of the Partitioned Note. Borrower acknowledges and understands that the representations and agreements of Borrower in this Section 5 are a material inducement to Lender’s decision to consummate the transactions contemplated herein.
		

		
			6.         Borrower’s Representations, Warranties and Agreements. In order to induce Lender to enter into this Agreement, Borrower, for itself, and for its affiliates, successors and assigns, hereby acknowledges, represents, warrants and agrees as follows: (a) Borrower has full power and authority to enter into this Agreement and to incur and perform all obligations and covenants contained herein, all of which have been duly authorized by all proper and necessary action, (b) no consent, approval, filing or registration with or notice to any governmental authority is required as a condition to the validity of this Agreement or the performance of any of the obligations of Borrower hereunder, (c) no Event of Default has occurred under the Original Note and any Events of Default that may have occurred thereunder have not been, and are not hereby, waived by Lender, (d) except as specifically set forth herein, nothing herein shall in any manner release, lessen, modify or otherwise affect Borrower’s obligations under the Original Note, (e) the issuance of the Exchange Shares is duly authorized by all necessary corporate action and the Exchange Shares are validly issued, fully paid and non-assessable,  free and clear of all taxes, liens, claims, pledges, mortgages, restrictions, obligations, security interests and encumbrances of any kind, nature and description, (f) Borrower has not received any consideration in any form whatsoever for entering into this Agreement, other than the surrender of the Partitioned Note, and (g) Borrower has taken no action which would give rise to any claim by any person for a brokerage commission, placement agent or finder’s fee or other similar payment by Borrower related to this Agreement.
		

		
			7.         Lender’s Representations, Warranties and Agreements. In order to induce Borrower to enter into this Agreement, Lender, for itself, and for its affiliates, successors and assigns, hereby acknowledges, represents, warrants and agrees as follows: (a) Lender has full power and authority to enter into this Agreement and to incur and perform all obligations and covenants contained herein, all of which have been duly authorized by all proper and necessary action, (b) no consent, approval, filing or registration with or notice to any governmental authority is required as a condition to the validity of this Agreement or the performance of any of the obligations of Lender hereunder, and (c)  Lender has taken no action which would give rise to any claim by any person for a brokerage commission, placement agent or finder’s fee or other similar payment by Borrower related to this Agreement.
		

		
			8.         Governing Law; Venue.  This Agreement shall be construed and enforced in accordance with, and all questions concerning the construction, validity, interpretation and performance of this Agreement shall be governed by, the internal laws of the State of Utah, without giving effect to any choice of law or conflict of law provision or rule (whether of the State of Utah or any other jurisdictions) that would cause the application of the laws of any jurisdictions other than the State of Utah. The provisions set forth in the Prior Exchange Agreement to determine the proper venue for any disputes are incorporated herein by this reference.  BORROWER HEREBY IRREVOCABLY WAIVES ANY RIGHT IT MAY HAVE TO, AND AGREES NOT TO REQUEST, A JURY TRIAL FOR THE ADJUDICATION OF ANY DISPUTE HEREUNDER OR IN 
		

		
			
		

		
			

		 

		

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			CONNECTION WITH OR ARISING OUT OF THIS AGREEMENT OR ANY TRANSACTION CONTEMPLATED HEREBY.
		

		
			9.         Arbitration of Claims. This Agreement shall be subject to the arbitration of claims provisions set forth in Section 9.1 of the Prior Exchange Agreement.
		

		
			10.       Counterparts.  This Agreement may be executed in any number of counterparts with the same effect as if all signing parties had signed the same document. All counterparts shall be construed together and constitute the same instrument. The exchange of copies of this Agreement and of signature pages by facsimile transmission or other electronic transmission (including email) shall constitute effective execution and delivery of this Agreement as to the parties and may be used in lieu of the original Agreement for all purposes. Signatures of the parties transmitted by facsimile transmission or other electronic transmission (including email) shall be deemed to be their original signatures for all purposes.
		

		
			11.       Attorneys’ Fees. In the event of any arbitration or action at law or in equity to enforce or interpret the terms of this Agreement, the parties agree that the party who is awarded the most money shall be deemed the prevailing party for all purposes and shall therefore be entitled to an additional award of the full amount of the attorneys’ fees and expenses  paid by such prevailing party in connection with the arbitration, litigation and/or dispute without reduction or apportionment based upon the individual claims or defenses  giving rise to the fees and expenses.  Nothing herein shall restrict or impair an arbitrator’s or a court’s power to award fees and expenses for frivolous or bad faith pleading.
		

		
			12.       No Reliance.  Borrower acknowledges and agrees that neither Lender nor any of its officers, directors, members, managers, equity holders, representatives or agents has made any representations or warranties to Borrower or any of its agents, representatives, officers, directors, or employees except as expressly set forth in this Agreement and the Transaction Documents and, in making its decision to enter into the transactions contemplated by this Agreement, Borrower is not relying on any representation, warranty, covenant or promise of Lender or its officers, directors, members, managers, equity holders, agents or representatives other than as set forth in this Agreement.
		

		
			13.       Severability. If any part of this Agreement is construed to be in violation of any law, such part shall be modified to achieve the objective of the parties to the fullest extent permitted and the balance of this Agreement shall remain in full force and effect.
		

		
			14.       Entire Agreement. This Agreement, together with the Transaction Documents,  and all other documents referred to herein, supersedes all other prior oral or written agreements between Borrower,  Lender,  its affiliates and persons acting on its behalf with respect to the matters discussed herein, and this Agreement and the instruments referenced herein contain the entire understanding of the parties with respect to the matters covered herein and therein and, except as specifically set forth herein or therein, neither Lender nor Borrower makes any representation, warranty, covenant or undertaking with respect to such matters.
		

		
			15.       Amendments.  This Agreement may be amended, modified, or supplemented only by written agreement of the parties. No provision of this Agreement may be waived except in writing signed by the party against whom such waiver is sought to be enforced.
		

		
			
		

		
			

		 

		

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			16.       Successors and Assigns.  This Agreement shall be binding upon and inure to the benefit of the parties and their respective successors and assigns. This Agreement or any of the severable rights and obligations inuring to the benefit of or to be performed by Lender hereunder may be assigned by Lender to a third party, including its financing sources, in whole or in part. Borrower may not assign this Agreement or any of its obligations herein without the prior written consent of Lender.
		

		
			17.       Continuing Enforceability; Conflict Between Documents. Except as otherwise modified by this Agreement, the Original Note and each of the other Transaction Documents shall remain in full force and effect, enforceable in accordance with all of its original terms and provisions.  This Agreement shall not be effective or binding unless and until it is fully executed and delivered by Lender and Borrower.  If there is any conflict between the terms of this Agreement, on the one hand, and the Original Note or any other Transaction Document, on the other hand, the terms of this Agreement shall prevail.
		

		
			18.       Time of Essence.  Time is of the essence with respect to each and every provision of this Agreement.
		

		
			19.       Notices.  Unless otherwise specifically provided for herein, all notices, demands or requests required or permitted under this Agreement to be given to Borrower or Lender shall be given as set forth in the “Notices” section of the Prior Exchange Agreement.
		

		
			20.       Further Assurances. Each party shall do and perform or cause to be done and performed, all such further acts and things, and shall execute and deliver all such other agreements, certificates, instruments and documents, as the other party may reasonably request in order to carry out the intent and accomplish the purposes of this Agreement and the consummation of the transactions contemplated hereby.
		

		
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			IN WITNESS WHEREOF, the undersigned have executed this Agreement as of the date first set forth above.
		

		
			 
		

			
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						BORROWER:

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						JAGUAR HEALTH, INC.

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						By: 

					
					
						 

				
	
					
						 

					
					
						Name:

					
					
						 

				
	
					
						 

					
					
						Title:

					
					
						 

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						NAPO PHARMACEUTICALS, INC.

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						By: 

					
					
						 

				
	
					
						 

					
					
						Name:

					
					
						 

				
	
					
						 

					
					
						Title:

					
					
						 

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						LENDER:

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						CHICAGO VENTURE PARTNERS, L.P.

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						By: Chicago Venture Management, L.L.C.,

				
	
					
						 

					
					
						its General Partner

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						By: CVM, Inc., its Manager

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						By: 

					
					
						 

				
	
					
						 

					
					
						 

					
					
						John M. Fife, President

				

		
			 
		

		 

		

			[Signature Page to Exchange Agreement]sqbg_Ex_10.1_KKR2

		

			 

		

		
			Exhibit 10.1
		

		
			Execution Version
		

		
			SECOND AMENDMENT TO THIRD AMENDED AND RESTATED CREDIT AGREEMENT
		

		
			THIS SECOND AMENDMENT TO THIRD AMENDED AND RESTATED CREDIT AGREEMENT (this “Amendment”) dated as of June 10, 2019 between SEQUENTIAL BRANDS GROUP, INC., a Delaware corporation (the “Borrower”), the Guarantors party hereto, the Lenders party hereto, and WILMINGTON TRUST, NATIONAL ASSOCIATION, as administrative agent and collateral agent (the “Agent”), in consideration of the mutual covenants herein contained and benefits to be derived herefrom.
		

		
			W I T N E S S E T H:
		

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

		
			WHEREAS, the Borrower has entered into an Equity Purchase Agreement, dated as of April 16, 2019 (the “MSLO Purchase Agreement”) by and among the Borrower, as the Seller and Marquee Brands, LLC, a Delaware limited liability company, as the Buyer, pursuant to which the Borrower intends to sell all of the issued and outstanding Equity Interests (collectively, the “MSLO Shares”) of Martha Stewart Living Omnimedia, Inc. (collectively together with its subsidiaries, the “MSLO Entities”) as more fully described in the MSLO Purchase Agreement (the “MSLO Disposition”); and
		

		
			WHEREAS, in connection with the MSLO Disposition, the Borrower, the Guarantors, the Required Lenders and the Agent (at the direction of the Required Lenders) have agreed to amend the Existing Credit Agreement as set forth herein.
		

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

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

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

		
			3.         Amendments to Existing Credit Agreement.
		

		
			
		

		
			

		 

		

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			a.          Section 1.01 of the Existing Credit Agreement is hereby amended by adding the following new definitions in appropriate alphabetical order:
		

		
			“MSLO Disposition” has the meaning given to such term in the Second Amendment.
		

		
			“MSLO Purchase Agreement” has the meaning given to such term in the Second Amendment.
		

		
			“MSLO Shares” has the meaning given to such term in the Second Amendment.
		

		
			“Second Amendment” means that certain Second Amendment to Third Amended and Restated Credit Agreement dated as of June 10, 2019.
		

		
			“Second Amendment Effective Date” means the date that all conditions precedent as set forth in Section 4 of the Second Amendment have been satisfied.
		

		
			b.         The definition of “Net Proceeds” as set forth in Section 1.01 of the Existing Credit Agreement is hereby amended by deleting each reference to “or MSLO Key Man Policy” and “or policy” therein.
		

		
			c.          The definition of “Permitted Disposition” as set forth in Section 1.01 of the Existing Credit Agreement is hereby amended by deleting “and” at the end of clause (f) thereof, by re-lettering clause (g) as clause (h), and by adding the following new clause (g):
		

		
			 “(g)     subject to the prepayment requirements of Section 2.04(c)(ii), the MSLO Disposition; and”
		

		
			d.         The definition of “Permitted Indebtedness” as set forth in Section 1.01 of the Existing Credit Agreement is hereby amended by adding the following proviso at the end of clause (i)(A):
		

		
			“provided, further, in no event from and after the Second Amendment Effective Date shall Indebtedness be permitted to be borrowed, extended or incurred under the BoA Facility other than Revolving Credit Extensions (as defined in the BoA Credit Agreement as in effect on the Second Amendment Effective Date) in an aggregate amount not to exceed $5,000,000.”
		

		
			e.          Section 1.01 of the Existing Credit Agreement is hereby amended by deleting the definitions of “MSLO” and “MSLO Key Man Policy” in their respective entireties.
		

		
			f.          Section 2.04 of the Existing Credit Agreement is hereby amended as follows:
		

		
			i.          by deleting clause (c) thereof in its entirety and by substituting the following in its stead:
		

		
			
		

		
			

		 

		

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			“(c) In connection with (i) any Disposition of any Collateral (other than Permitted Dispositions of the type referred to in clauses (d), (e) and (f) of the definition thereof, other than with respect to Dispositions of Intellectual Property as set forth in clause (b) above and other than with respect to the MSLO Disposition as set forth in subclause (ii) below) in any Fiscal Year in excess of the Threshold Amount, the Borrower shall apply the aggregate Net Proceeds received in excess of the Threshold Amount to prepay the Loans (including L/C Borrowings) up to an amount which is equal to 100% of the Net Proceeds from the Disposition of such Collateral; provided however, that the Borrower shall have the right to reinvest such Net Proceeds, if such Net Proceeds are reinvested (or committed to be reinvested) or used to consummate an Acquisition of the type described in clause (ii)(a) of the definition of “Permitted Acquisition”, in each case, within 365 days and, if so committed to be reinvested or to consummate such Permitted Acquisition, so long as such reinvestment or Permitted Acquisition is actually completed within 180 days thereafter and (ii) the receipt of the Net Proceeds of the MSLO Disposition, the Borrower shall apply such Net Proceeds (x) received on the Second Amendment Effective Date (in each case in an amount as was separately agreed in writing by the Borrower and the Agent (at the direction of the Required Lenders)) as follows: (1) first, to the BoA Agent, with such Net Proceeds being used to repay Revolving Loans (as defined in the BoA Credit Agreement), (2) second, to BoA Agent, with such Net Proceeds being used to repay Tranche A-1 Term Loans (as defined in the BoA Credit Agreement) and (3) third, to the Borrower and (y) received after the Second Amendment Effective Date, within one Business Day of receipt thereof, to BoA Agent, with such Net Proceeds being used to repay Tranche A-1 Term Loans (as defined in the BoA Credit Agreement).”
		

		
			g.         Section 5.10 of the Existing Credit Agreement is hereby amended by deleting the reference to “and MSLO Key Man Policy are” and substituting with “is”.
		

		
			h.         Section 6.07 of the Existing Credit Agreement is hereby amended as follow:
		

		
			i.          by deleting “(i)” at the beginning of clause (a) thereof,
		

		
			ii.         by deleting the reference to “and (ii) MSLO Key Man Policy” in clause (a) thereof, and
		

		
			iii.        by deleting clause (d) in its entirety.
		

		
			i.          Section 7.03(a) of the Existing Credit Agreement is hereby amended by adding the following proviso immediately after “Permitted Indebtedness”
		

		
			“; provided, however, that from and after the Second Amendment Effective Date the only Permitted Indebtedness that may be incurred by the Borrower shall be
		

		
			
		

		
			

		 

		

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			pursuant to clause (a) thereof but subject to the proviso added to clause (i)(A) in accordance with the Second Amendment.”
		

		
			j.          Section 7.06 of the Existing Credit Agreement is hereby amended by deleting the last paragraph at the end of such Section beginning with the prepositional phrase “Notwithstanding the foregoing”.
		

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

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

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

		
			c.          The Agent and the Required Lenders shall have received a copy of the final MSLO Purchase Agreement and all schedules, exhibits and annexes thereto, and such other documents, instruments, and certificates relating to the MSLO Disposition as may be reasonably requested by the Required Lenders, and the MSLO Purchase Agreement shall not be amended in a manner that would be materially adverse to the Agent and the Required Lenders without the consent of the Agent and the Required Lenders.
		

		
			d.         Prior to or contemporaneously with the effectiveness of this Amendment, the Borrower shall consummate the MSLO Disposition substantially in accordance with the terms and conditions set forth in the MSLO Purchase Agreement, without any amendment, modification or waiver of any of the terms or conditions thereof that would be materially adverse to the Agent and the Required Lenders without the consent of the Agent and the Required Lenders.
		

		
			e.          The Agent shall have received an updated business plan giving pro forma effect to the MSLO Disposition.
		

		
			f.          The Agent shall have received a fully executed copy of the Second Amendment to the BoA  Credit Agreement, dated as of the Second Amendment Effective Date (the “BoA Amendment”), providing consent to the MSLO Disposition and otherwise in form and substance reasonably satisfactory to the Agent (at the direction of the Required Lenders).
		

		
			g.         After giving effect to this Amendment and the MSLO Disposition, no Default or Event of Default shall have occurred and be continuing.
		

		
			
		

		
			

		 

		

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			h.         The Borrower shall have paid in full all fees and expenses of the Agent (including the reasonable and documented fees and expenses of counsel for the Agent) due and payable on or prior to the Second Amendment Effective Date, and in the case of expenses, to the extent invoiced at least one (1) Business Day prior to the Second Amendment Effective Date.
		

		
			5.         Release of the MSLO Entities.  The Agent hereby acknowledges and agrees that, upon the consummation of the MSLO Disposition, without representation, warranty or recourse, (a) the Agent’s security interest in the Collateral pledged by the MSLO Entities shall be released and terminated, (b) the Agent is hereby authorized by the undersigned Lenders to deliver the release letter to the Borrower and the Buyer with respect to the release of the MSLO Entities, dated as of the date hereof, by and among the Loan Parties and the Agent and (c) the Agent or its counsel hereby agrees to file and/or deliver, all at the sole cost and expense of the Loan Parties, (i) the UCC‐3 termination statements with respect to the MSLO Entities and (ii) a release in relation to the Copyright Security Agreement, the Patent Security Agreement and the Trademark Security Agreement, granted by the MSLO Entities in favor of the Agent, in each case all in such form as prepared and agreed to by the Agent at the direction of the Required Lenders.
		

		
			6.         Additional Amendment.  After the Second Amendment Effective Date, the Agent (at the direction of the Required Lenders), the KKR Representative, the Required Lenders and the Borrower shall use commercially reasonable efforts to further amend the Amended Credit Agreement and the BoA Credit Agreement (if necessary) to reflect certain adjustments and/or addbacks to be made to the definition of Consolidated EBITDA as a result of the MSLO Disposition, which such amounts shall be permitted only to the extent agreed, in writing, by the Borrower, the Agent and the Required Lenders on or prior to the date on which the applicable Compliance Certificate in respect of the applicable measurement period is delivered by the Borrower, and such other amendments as may reasonably agreed between the parties thereto.
		

		
			7.         Amendment Fee.  On the Second Amendment Effective Date, the Borrower will pay an amendment fee to the Agent for the benefit of each Lender in the amount set forth in that side letter entered into between the Agent (at the direction of the Required Lenders) and the Borrower on the Second Amendment Effective Date.
		

		
			8.         Consent to BoA Amendment.  The Agent, on behalf of itself and the Secured Parties, hereby consents to the terms and conditions of the BoA Amendment, and acknowledges and agrees that, on and after the Second Amendment Effective Date, all references in the Amended Credit Agreement and the Intercreditor Agreement to the “BoA Credit Agreement” or the “BofA Credit Agreement” shall mean and refer to the BoA Credit Agreement, as amended by the BoA Amendment.
		

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

		
			10.       Reaffirmation of Obligations.  The Borrower hereby ratifies the Loan Documents and acknowledges and reaffirms (a) that it is bound by all terms of the Loan Documents
		

		
			
		

		
			

		 

		

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			applicable to it and (b) that it is responsible for the observance and full performance of its respective Obligations.
		

		
			11.       Loan Document.  This Amendment shall constitute a Loan Document under the terms of the Amended Credit Agreement.
		

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

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

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

		
			15.       Agent Authorization.  Each of the undersigned Lenders hereby authorizes Agent to execute and deliver this Amendment and the side letter referenced in Section 7 on its behalf and, by its execution below, each of the undersigned Lenders agrees to be bound by the terms and conditions of this Amendment.
		

		
			 
		

		
			 
		

		
			

		 

		

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

			
					
						BORROWER:

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						SEQUENTIAL BRANDS GROUP, INC.

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						By:  

					
					
						/s/ Peter Lops

				
	
					
						 

					
					
						Name:  

					
					
						Peter Lops

				
	
					
						 

					
					
						Title:

					
					
						Chief Financial Officer

				

		
			 
		

		
			 
		

			
					
						GUARANTORS:

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						SQBG, INC.

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						By:  

					
					
						/s/ Peter Lops

				
	
					
						 

					
					
						Name:  

					
					
						Peter Lops

				
	
					
						 

					
					
						Title:

					
					
						Chief Financial Officer

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						SEQUENTIAL LICENSING, INC.

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						By:  

					
					
						/s/ Peter Lops

				
	
					
						 

					
					
						Name:  

					
					
						Peter Lops

				
	
					
						 

					
					
						Title:

					
					
						Chief Financial Officer

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						WILLIAM RAST LICENSING, LLC

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						By:  

					
					
						/s/ Peter Lops

				
	
					
						 

					
					
						Name:  

					
					
						Peter Lops

				
	
					
						 

					
					
						Title:

					
					
						Chief Financial Officer

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						HEELING SPORTS LIMITED

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						By:  

					
					
						/s/ Peter Lops

				
	
					
						 

					
					
						Name:  

					
					
						Peter Lops

				
	
					
						 

					
					
						Title:

					
					
						Chief Financial Officer

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						B®AND MATTER, LLC

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						By:  

					
					
						/s/ Peter Lops

				
	
					
						 

					
					
						Name:  

					
					
						Peter Lops

				
	
					
						 

					
					
						Title:

					
					
						Chief Financial Officer

				

		
			 
		

		
			
		

		

		 

		

			[Signature Page to Second Amendment to Third Amended and Restated Credit Agreement]

		

		

			 

		

	
					
						

					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						SBG FM, LLC

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						By:  

					
					
						/s/ Peter Lops

				
	
					
						 

					
					
						Name:  

					
					
						Peter Lops

				
	
					
						 

					
					
						Title:

					
					
						Chief Financial Officer

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						SBG UNIVERSE BRANDS, LLC

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						By:  

					
					
						/s/ Peter Lops

				
	
					
						 

					
					
						Name:  

					
					
						Peter Lops

				
	
					
						 

					
					
						Title:

					
					
						Chief Financial Officer

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						GALAXY BRANDS LLC

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						By:  

					
					
						/s/ Peter Lops

				
	
					
						 

					
					
						Name:  

					
					
						Peter Lops

				
	
					
						 

					
					
						Title:

					
					
						Chief Financial Officer

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						THE BASKETBALL MARKETING COMPANY, INC.

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						By:  

					
					
						/s/ Peter Lops

				
	
					
						 

					
					
						Name:  

					
					
						Peter Lops

				
	
					
						 

					
					
						Title:

					
					
						Chief Financial Officer

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						AMERICAN SPORTING GOODS CORPORATION

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						By:  

					
					
						/s/ Peter Lops

				
	
					
						 

					
					
						Name:  

					
					
						Peter Lops

				
	
					
						 

					
					
						Title:

					
					
						Chief Financial Officer

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						LNT BRANDS LLC

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						By:  

					
					
						/s/ Peter Lops

				
	
					
						 

					
					
						Name:  

					
					
						Peter Lops

				
	
					
						 

					
					
						Title:

					
					
						Chief Financial Officer

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						JOE’S HOLDINGS LLC

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						By:  

					
					
						/s/ Peter Lops

				
	
					
						 

					
					
						Name:  

					
					
						Peter Lops

				
	
					
						 

					
					
						Title:

					
					
						Chief Financial Officer

				

		
			 
		

		
			
		

		

		 

		

			[Signature Page to Second Amendment to Third Amended and Restated Credit Agreement]

		

		

			 

		

	
					
						

					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						GAIAM BRAND HOLDCO, LLC

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						By:  

					
					
						/s/ Peter Lops

				
	
					
						 

					
					
						Name:  

					
					
						Peter Lops

				
	
					
						 

					
					
						Title:

					
					
						Chief Financial Officer

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						GAIAM AMERICAS, INC.

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						By:  

					
					
						/s/ Peter Lops

				
	
					
						 

					
					
						Name:  

					
					
						Peter Lops

				
	
					
						 

					
					
						Title:

					
					
						Chief Financial Officer

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						SBG-GAIAM HOLDINGS, LLC

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						By:  

					
					
						/s/ Peter Lops

				
	
					
						 

					
					
						Name:  

					
					
						Peter Lops

				
	
					
						 

					
					
						Title:

					
					
						Chief Financial Officer

				

		
			 
		

		
			
		

		

		 

		

			[Signature Page to Second Amendment to Third Amended and Restated Credit Agreement]

		

		

			 

		

	
					
						

					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						WILMINGTON TRUST, NATIONAL ASSOCIATION, as Agent

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						By:  

					
					
						/s/ Andrew Lennon

				
	
					
						 

					
					
						Name:  

					
					
						Andrew Lennon

				
	
					
						 

					
					
						Title:

					
					
						Banking Officer

				

		
			 
		

		
			
		

		
			

		 

		

			[Signature Page to Second Amendment to Third Amended and Restated Credit Agreement]

		

		

			 

		

		

		
			LENDERS:
		

			
					
						 

					
					
						FS KKR CAPITAL CORP

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						By:  

					
					
						/s/ Jeffrey M. Smith

				
	
					
						 

					
					
						Name:  

					
					
						Jeffrey M. Smith

				
	
					
						 

					
					
						Title:

					
					
						Authorized Signatory

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						DARBY CREEK LLC

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						By:  

					
					
						/s/ Jeffrey M. Smith

				
	
					
						 

					
					
						Name:  

					
					
						Jeffrey M. Smith

				
	
					
						 

					
					
						Title:

					
					
						Authorized Signatory

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						FS INVESTMENT CORPORATION II

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						By:  

					
					
						/s/ Jeffrey M. Smith

				
	
					
						 

					
					
						Name:  

					
					
						Jeffrey M. Smith

				
	
					
						 

					
					
						Title:

					
					
						Authorized Signatory

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						DUNLAP FUNDING LLC

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						By:  

					
					
						/s/ Jeffrey M. Smith

				
	
					
						 

					
					
						Name:  

					
					
						Jeffrey M. Smith

				
	
					
						 

					
					
						Title:

					
					
						Authorized Signatory

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						FS INVESTMENT CORPORATION III

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						By:  

					
					
						/s/ Jeffrey M. Smith

				
	
					
						 

					
					
						Name:  

					
					
						Jeffrey M. Smith

				
	
					
						 

					
					
						Title:

					
					
						Authorized Signatory

				

		
			 
		

		
			
		

		

		 

		

			[Signature Page to Second Amendment to Third Amended and Restated Credit Agreement]

		

		

			 

		

	
					
						

					
						 

					
					
						APOLLO CENTRE STREET PARTNERSHIP, L.P.

				
	
					
						 

					
					
						By:  

					
					
						Apollo Centre Street Advisors (APO DC), L.P., its general partner

				
	
					
						 

					
					
						By:  

					
					
						Apollo Centre Street Advisors (APO DC‐GP), LLC, its general partner

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						By:  

					
					
						/s/ Joseph D. Glatt

					
					
						 

				
	
					
						 

					
					
						Name:  

					
					
						Joseph D. Glatt

				
	
					
						 

					
					
						Title:

					
					
						Vice President

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						APOLLO UNION STREET PARTNERS, L.P.

				
	
					
						 

					
					
						By:  

					
					
						Apollo Union Street Advisors, L.P., its General Partner

				
	
					
						 

					
					
						By:  

					
					
						Apollo Union Street Capital Management, LLC, its General Partner

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						By:  

					
					
						/s/ Joseph D. Glatt

					
					
						 

				
	
					
						 

					
					
						Name:  

					
					
						Joseph D. Glatt

				
	
					
						 

					
					
						Title:

					
					
						Vice President

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						APOLLO KINGS ALLEY CREDIT FUND, LP

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						By:  

					
					
						Apollo Kings Alley Credit Advisors, L.P., its general partner

				
	
					
						 

					
					
						By:  

					
					
						Apollo Kings Alley Credit Capital Management, LLC, its general partner

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						By:  

					
					
						/s/ Joseph D. Glatt

					
					
						 

				
	
					
						 

					
					
						Name:  

					
					
						Joseph D. Glatt

				
	
					
						 

					
					
						Title:

					
					
						Vice President

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						APOLLO MOULTRIE CREDIT FUND, L.P.

				
	
					
						 

					
					
						By:  

					
					
						Apollo Moultrie Credit Fund Management, LLC, its investment manager

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						By:  

					
					
						/s/ Joseph D. Glatt

					
					
						 

				
	
					
						 

					
					
						Name:  

					
					
						Joseph D. Glatt

				
	
					
						 

					
					
						Title:

					
					
						Vice President

				

		
			 
		

		
			
		

		

		 

		

			[Signature Page to Second Amendment to Third Amended and Restated Credit Agreement]

		

		

			 

		

	
					
						

					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						APOLLO TACTICAL VALUE SPN INVESTMENTS, L.P.

				
	
					
						 

					
					
						By:  

					
					
						Apollo Tactical Value SPN Advisors (APO DC), L.P., its General Partner

				
	
					
						 

					
					
						By:  

					
					
						Apollo Tactical Value SPN Capital Management (APO DC-GP), LLC, its General Partner

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						By:  

					
					
						/s/ Joseph D. Glatt

					
					
						 

				
	
					
						 

					
					
						Name:  

					
					
						Joseph D. Glatt

				
	
					
						 

					
					
						Title:

					
					
						Vice President

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						APOLLO INVESTMENT CORPORATION

				
	
					
						 

					
					
						By:  

					
					
						Apollo Investment Management, L.P., as Advisor

				
	
					
						 

					
					
						By:  

					
					
						ACC Management, LLC, as its General Partner

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						By:  

					
					
						/s/ Joseph D. Glatt

					
					
						 

				
	
					
						 

					
					
						Name:  

					
					
						Joseph D. Glatt

				
	
					
						 

					
					
						Title:

					
					
						Vice President

				

		
			 
		

		 

		

			[Signature Page to Second Amendment to Third Amended and Restated Credit Agreement]

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